March, 02 2008
Coal regulator to be appointed soon
Indian government has proposed to appoint a regulator to streamline the coal sector. Mr P Chidambaram union finance minister, in his Budget speech, said that “A new coal distribution policy was notified in October 2007 and a coal regulator would be appointed.”
Mr Chidambaram noted that 53 coal blocks with reserves of 13,842 million tonnes have been allotted during April 2007 to January 2008 period to government and private sector companies.
Meanwhile, Mr JJ Irani director of TATA Sons Limited said that "I only heard the finance minister’s speech. One thing the finance minister has very quietly mentioned in the Budget is the proposal to set up a coal regulator. He just mentioned it in one sentence. I do not know the details. But it has great implications for the coal industry."
Mr Irani said that "I am sure he would have studied the role of the regulator, before announcing it. I was associated with the coal sector for drawing up a road map for this industry in India. There have been complaints and objections from various ministries about allocation of coal. We have plenty of coal in this country. But digging it out of the ground is a Herculean task. We need to get so many clearances from different agencies."
Indian Planning Commission had earlier pitched for having in place a coal sector regulator to approve periodic price revisions of the fuel feedstock, recommend steps for fixing coal prices and regulate trading margins while ensuring e-auctions free of price distortions.
EEPC unhappy with Budget 2008-09
Mr Rakesh Shah chairman of Engineering Export Promotion Council said that the Budget 2008-09 had nothing for exporters except sympathy. He added that "The Budget has completely bypassed the urgent requirements of engineering exporters."
Mr Shah said that the proposals carried no major policy initiative to address the sharp slowing down of exports, from 25.3% growth in 2006-07 to 7.7% in the first 9 months of the current fiscal. Exporters had fervently pleaded for some fundamental policy initiatives to correct the imbalances in the economy that had led to declining fortunes of the exporting community of late.
According to him, while the export duty on chrome ore has been increased, no such duty has been imposed on export iron ore, which has been the root cause for the sharp escalation of steel prices in India. He felt while the finance minister mentioned about the monopolistic situation in the steel and cement industries in the country, no policy pronouncement has been made to usher in competitive conditions, especially in the steel sector, such as imposition of an export duty on steel exports to stabilize domestic steel prices.
He, however, welcomed the abolition of import duty on steel and aluminum scrap as well as lowering of CENVAT rate to 14%.
Vizag Seaports handles 3 million tonnes of cargo in 10 months
Exim India reported that operations at the bulk terminal in the inner harbor run by Vizag Seaports Private Limited has crossed a new milestone when 3.06 million tonnes of cargo were handled during April 2007 to January 2008 period.
Mr Jacob Cherian chief commercial & administration officer of Vizag Seaports said that out of the 3 million tonnes, 37% was accounted for by exports and 63% by import cargo.
He added that "The achievement had boosted Vizag Port Trust’s efforts to be the numero uno port and its objectives of providing quick turnaround of vessels, saving huge amounts in freight advantage to steel plants, thermal plants, fertilizer plants and other port users."
Vizag Seaports had recently started coastal movement of cargo and dispatches had been made to Haldia Dock. The major items handled by Vizag Seaports included coking coal, iron ore, iron ore pellets, lam coke, steam coal, anthracite coal, limestone, manganese ore, urea, rock phosphate, gypsum, BF slag, etc.
Indian economy expands by 8.4% in October to December
Bloomberg reported that India’s economy grew at the slowest pace since 2005 last quarter as interest rates near a 6 year high curbed consumer spending.
Central Statistical Organization said that Indian economy has expanded by 8.4% in the October to December 2007 quarter after gaining 8.9% in July to September 2007 quarter.
Mr P Chidambaram union finance minister in his budget speech has increased spending for farmers and may also unveil tax cuts to spur the economy.
India’s central bank has raised interest rates nine times since October 2004 to choke off inflation, eroding support for the government.
MSMC to enter into JV for 540 MW thermal power plant
PTI reported that Maharashtra State Mining Corporation has drawn up an ambitious plan to enter into a JV for a 540 MW thermal power plant at Nagbhid in adjoining Chandrapur district.
Mr Avinash Warjurkar chairman of Maharashtra State Mining Corporation said that it has been allotted a coal block in Garepelma sector II in Raigarh district of Chattisgarh, which has an estimated coal reserve to the tune of 175 million tonnes, sufficient enough to cater to the needs of MSMC power station for another 20 years. Coal will be transported approximately from 500 kilometers coal blocks in Raigarh to Nagbhid while water will be fetched from Gosikhurd irrigation project.”
Mr DG Philips MD of Maharashtra State Mining Corporation said that tenders have been floated for both mining and power plant, which will open on March 14th 2008. He added that it would be retaining 51% stake in the JV and there may be one or more partners in the JV. Besides many players like Jindal, Ispat, Indo Rama, Emco, Sunflag, Adani, Wardha Power, TATA Power, 24 Century, Kalptaru and 65 others are in the race for setting up power plant at Nagbhid.
Gujarat to set up dredging body via JV route
Exim News Service reported that Gujarat government has decided to set up a dredging company called Dredging Corporation of Gujarat involving companies from the private sector in the JV project with a cost of INR 300 crore.
The proposed company will include private investors and come up as a special purpose vehicle to undertake large scale dredging operations along the state’s 1,600 kilometer long coastline. It will initially take up contracts in ports and inland waterways within the state, but, later on, will take up dredging contracts in the rest of the country as also in international waters.
Mr HK Dash CEO of Gujarat Maritime Board said that "We are visualizing a much bigger role like that of the Dredging Corporation of India. At present, GMB has 14 dredgers, which undertake both capital as well as maintenance dredging operations. With the formation of the Dredging Corporation of Gujarat, all the 14 dredgers will be transferred to this new company. It will be our task to undertake all dredging operations of the various ports and other waterways in the state."
Mr Dash said that "Because of the limitations so far, only GMB controlled and operated ports are dredged by the board. As far as private ports are concerned, we have allowed them to carry out their own dredging operations so far." He added that the investment magnitude is yet to be worked out and that the board was yet to decide on the equity ratio.
GMB is also in the final stage of evaluating the JV proposals. Some of the short listed companies include Hong Kong and Korea based companies. Oceans Sparkle, Sanghi Cement and a subsidiary of Larsen & Toubro will be initiating the project. Other companies will join up later. As a number of ports are coming up on the Gujarat coast, there will be immense opportunities for dredging.
Tamil Nadu to set up 2 shipbuilding facilities
Exim News Service reported that Tamil Nadu government is planning to set up two shipbuilding units at Kaatupalli near Ennore and Silambimangalam near Cuddalore to undertake ship construction and maintenance works.
Mr Muthukumaraswamy vice chairman of Tamil Nadu Maritime Board said that Nagapattinam port, where developmental activities were going on, and Cuddalore port were capable of handling palm oil, fertilizers and coconut imports on a large scale. He added that 3 more small ports would soon come up at Tirukkuvalai, Manapadu and Udamkudi.
Himachal targets 1,500 MW through hydropower projects
It is reported that Himachal Pradesh is expecting to add 1,500 MW of new hydropower projects through private sector participation in the 11th Plan period.
Mr BS Negi chief engineer of Himachal Pradesh State Electricity Board said that "So far the state government had awarded hydropower concessions aggregating around 4,000 MW. Out of these, the state government is hopeful of commissioning 1,500 MW of new capacity by March 2012. All these projects, of at least 5 MW of higher, will be developed under the build own operate transfer method with a concession period of 40 years."
It may be noted that Himachal Pradesh had entered into MoUs for the 180 MW Holi Bajoli project in Chamba district and the 108 MW Chhatru project in Lahaul Sipti district on February 15th 2008.
The Holi Bajoli project has been awarded to GMR Energy, while the Chhatru project was clinched by DCM Shriram Consolidated Ltd. The INR 700 crore Chhatru project also marks the advent of the DCM Shriram Group as a power developer. The project on Chandra River will be developed by a newly formed subsidiary, DCM Shriram Infrastructure Ltd. The project feasibility study would be completed by 2009 while construction is targeted to start in the working season of 2010.
Himachal Pradesh is an important seat for hydropower development. It has a hydel potential of 18,820 MW and comes second only to Arunachal Pradesh with 50,328 MW. In Himachal, around 4,570 MW of hydropower capacity is under development, while 6,086 MW is already operational. The undeveloped potential in the state is today estimated at 43%.
India's total hydropower potential is an estimated 148,701 MW out of which nearly 70% is still untapped. For the 11th Plan period, India has targeted to add 16,553 MW of hydropower capacity out of which 4,610 MW or 28% is likely to come up in Himachal Pradesh alone.
DSP Merrill Lynch launches new energy fund
DSP Merrill Lynch Fund Managers Limited has recently announced the launch of DSP Merrill Lynch Natural Resources and New Energy Fund, an open ended equity growth scheme. The scheme will invest in companies which belong in the natural resources, energy and new energy sectors.
These sectors would include base metals, other minerals and commodities, water and agriculture, and energy including oil, gas and coal. The new energy sectors include renewable energy and alternative fuels.
The fund will invest a minimum of 65% of the scheme’s corpus in Indian companies, which form a part of these sectors and up to 35% of its funds in Merrill Lynch International Investment funds which include New Energy Fund and World Energy Fund.
Mr S Naganath president & chief investment officer of DSP Merrill Lynch said that “The current rate of GDP growth witnessed in India and other emerging economies is likely to spur significant demand for natural resources and energy. In addition the world is beginning to address concerns for the environment due to global warming which has resulted in increased interest in the areas of alternative energy. A combination of these sectors makes the theme for natural resources, energy and new energy a sustainable investment theme for the long term.”
The new fund offer will open on March 3rd 2008 and close on March 27th 2008. The minimum application amount is INR 5,000 and in multiples of INR 1 thereafter, in case of the regular plan and INR 5 crore and in multiples of INR 1 thereafter in case of institutional investment. The scheme has both growth and dividend options including payout dividend and reinvest dividend option.
Centre keen on allowing private players in nuclear power’
According to Economic Survey Indian government has favored permitting private sector investments into nuclear power generation. The survey has said that private investment in nuclear power should be subject to regulation by the Atomic Energy Regulatory Board and Atomic Energy Commission.
TATA Power, Larsen & Toubro, Reliance Energy, GMR, Essar Power and the Vedanta Group are among those in the fray for entering nuclear generation.
Participation of private players in nuclear generation is, however, subject to the government amending the Atomic Energy Act, under which currently participation in the sector is limited to Nuclear Power Corporation India Limited.
The survey also stressed on the need to fully exploiting the nuclear and hydro potential for power generation.
BHEL bags INR 1,893 crore EPC contract from Pipavav Power
Bharat Heavy Electricals Limited recently announced that it has secured INR 1,893 crore engineering, procurement and construction contract from GSPC Pipavav Power Company for setting two units of 350 MW gas turbine based combined cycle power plants.
The first unit would be commissioned by BHEL in 30 months, while the second one is slated for completion in 33 months. The entire power generated by the project would be sold to Gujarat Urja Vikas Nigam Limited.
BHEL's scope of work in the project includes supply of gas turbine generator sets, steam turbine generator sets and one heat recovery steam generators with associated auxiliaries.
BHE has recently won a similar contract from Gujarat State Energy Generation Limited for setting up a 350 MW gas turbine based combined cycle power plant at Hazira in Gujarat.
Tuticorin Port sets new single day cargo handling record
Tuticorin Port has created a new record in handling cargo in a single day on February 16th 2008, when it handled a total quantity of 113,327 tonnes surpassing the previous record of 110,403 tonnes, created on November 17th 2007.
Mr A Subbiah deputy chairman of Tuticorin Port Trust said that it is confident of crossing the target of 20.38 million tonnes set by the ministry.
The anchorage handling of coal and increased volume in container traffic through the port contributed to the achievement.
Gammon India to foray into retail business
PTI reported that infrastructure major Gammon India has set up a logistic company and plans to invest INR 300 crore in the first year, seeking to tap the fast growing organized retail market.
Mr Piyush Chaturvedi VP of Gammon India said that "There is hardly any organized player in the logistic space. So there is a lot of scope. We want to become a third party logistics player. So we would be investing INR 250 to INR 300 crore in the first year at 10 to 12 locations. We want to take care of entire supply chain of our customers. We would like to handle all the logistic from the farm to the end consumer."
Mr Chaturvedi said that as a first step, Gammon would concentrate on setting up cold chains and warehouses keeping in mind the retail sector and the company's presence in ports. He added that "We are present in a few ports in India. So, we are setting up cold chains and warehouses."
Gammon has developed 2 multi purpose berths at the Visakhapatnam Port and has been selected to develop the Offshore Container Terminal at Mumbai Port Trust.
BEML commits INR 450 crore towards expansion plan
BL reported that Bharat Earth Movers Limited has committed approximately INR 450 crore for the modernization of all manufacturing units and expansion of rail unit for manufacture of rail coaches and wagons.
BEML is a premier ISO 9001-2000 Company in India and the second largest manufacturer of earthmoving equipment in Asia. It has vital applications in diverse sectors of economy such as coal, mining, steel, cement, power, irrigation, construction, road building and railway. BEML commands 70% market share in domestic earthmover industry. Nearly 40% of its equity has been divested to financial institutions and public. BEML has its corporate headquarters and central marketing division in Bangalore.
BEML has posted a net profit of INR 592.40 million for October to December 2007 quarter up by 11.84% YoY as compared to INR 529.70 million for October to December 2006 quarter. Total income has increased from INR 5591.10 million to INR 6407.60 million. Currently it has an order book of INR 3,200 crore and expects it to reach INR 4,000 crore by the end of this financial year.
NTPC board approves investment in Barh super thermal project
National Thermal Power Corporation Limited has announced that its board of directors, at its meeting held on February 29th 2008, has accorded the investment approval for 1320 MW Barh Super Thermal Power Project stage II in the state of Bihar at an appraised estimated current cost of INR 73410.38 million.
The stage I consisting of 3 units of 660 MW each am under implementation.
Mr Dwarakanath appointed as new director of BEML
Bharat Earth Movers Limited recently announced that Mr NK Sreenivasan director rail & metro business of the company had relinquished charge on February 29th 2008 upon superannuation and will be replaced by Mr P Dwarakanath with effect from March 1st 2008.
Mahindra Ugine inks power delivery agreement with WPCL
Mahindra Ugine Steel Company Limited has informed BSE that in accordance with the approval accorded by its board of directors at its meeting held on January 28th 2008, it has entered into a power delivery agreement with Wardha Power Company Limited for availing the supply of 35 MW power under the group captive concept to its Khopoli Plant at an investment of INR 22.75 crore.
Wardha Power Company is expected to commission the project and start supplying power from December 2009 onwards. The Agreement will be valid for 25 years.
Decongesting of Mumbai port
Union ministry of environment & forests, while granting environmental clearance to Jawaharlal Nehru Port, has stipulated that the level of traffic at Mumbai Port should gradually be reduced. The other condition stipulated was that Port’s land which is not required for operational purpose should be made available for greening and recreation.
In 2006-07 Mumbai Port handled 52.36 million tonnes. About 62% of the above is liquid cargo transported through pipe lines, 12% is moved through water ways, 6% by rail and 14% by road. 58% of the cargo moving on the road is meant for city consumption and 42% goes out of city. Traffic destined to and from city uses 3 arterial roads connecting NH 4. The usage of Port’s land in the city is governed by the city development plan finalized under Maharashtra Regional and Town Planning Act 1966. This plan is valid up to 2012-13 and has earmarked land for greenery and recreation.
Traffic at Indian Ports have shown upward trend and infrastructure needs to be consistently enhanced for supporting the Economic Growth. Development of ports is an ongoing process. As a part of this process the proposals for development expansion of Mumbai Port are considered and appropriate decisions taken after necessary clearances, keeping in view the demands of Maritime Trade.
Vale Xstrata tie up – Marketing rights issue stall talks
Times Online reported that Glencore’s demand of 10 year marketing contract in return for agreeing to the GBP 43 billion merger of two of the world’s top mining groups, Vale and Xstrata, has triggered the breakdown in talks between the companies last week.
The report cited sources close to the negotiations as saying that Vale offered Glencore a 5 year deal lucrative marketing rights to part of the combined group’s output except not iron ore nut Glencore held out for a 10 year contract.
Vale is understood to have rejected the demand. Mr Roger Agnelli CEO of Vale told reporters in Rio de Janeiro that the company was not in a rush to do a deal.
He said there was a difference over marketing rights, but did not give details. He said “The problem is there are some principles that we do not want to abandon. Marketing is something very important to us. We like to have strong, close relationships with our clients.”
Glencore, set up by legendry commodities trader Mr Marc Rich in 1974, is Xstrata’s largest shareholder with a 34.6% stake and its support is vital if the tie up is to go ahead.
Fitch gives positive outlook for Indonesian coal producers
Fitch Ratings on its "Indonesian Coal Producers Outlook for 2008" report said that it expects the outlook for the Indonesian coal producers to remain stable to positive in 2008 on the back of strong global coal demand, Indonesia's ability to increase its export volume, and the relatively high but stable price.
Ms Jessie Wahab associate director with Fitch's corporate ratings team in Jakarta said that "The continued hike in oil and gas prices has prompted an increasing number of companies throughout the Asia Pacific region to rely more on coal as a source of power supply. In addition to the regional demand, the Indonesian government plans to build additional coal fired power plants with a total capacity of 10 giga watts by 2010 to cope with the current power shortage, as there has not been any major capacity expansion post the financial crisis.” She added that boosted by the low interest environment, cement and steel manufacturers, which are traditionally high coal consumers, are also thriving on the booming property sector.
Fitch said that “Meanwhile, supply is inadequate to keep up with the robust coal demand, as major coal exporters such as Australia and South Africa, have not been able to grow exports due to infrastructure bottlenecks. In addition, China, the largest coal producer in the world, has reduced coal exports to meet own domestic needs; it is notable that China was a net importer during certain periods in H1 07. Following the widening deficit, consumers have turned to Indonesia, the world's largest coal exporter, to reduce the supply gaps given its abundant coal reserves, low costs and geographical proximity to the large North Asian markets.”
Fitch said that “Coupled with the tight coal supply, the rising crude oil price pushed the benchmark Newcastle FOB coal price to a peak of USD93.70 per ton in January 2008 from USD51.75 per ton recorded at the end of 2006.
Ms Wahab added that "Fitch does not foresee coal price rising as sharply in 2008 as it did in 2007, but expects it to remain high as suppliers will continue to struggle to meet the high demand from the Asia Pacific region.”
He also said that “Owing to high coal prices, the major Indonesian coal producers are continuing to capitalize on their strong operating cash flow to invest further in mining and related infrastructure in order to increase capacity. However, these efforts are being hampered by higher operating costs particularly fuel, a shortage in mining equipment and inclement weather.”
Fitch also expects more foreign interest in acquiring stakes in existing operators or investing in new mines to secure their coal supplies in the long run. It added that “Nonetheless, high valuation and uncertainty in the domestic regulatory environment are likely to be the key deterrents of possible transactions.”
Iron ore price negotiations – Pellet prices to be settled soon
BNamericas reported that Brazilian mining and metals group Vale is due to disclose in the coming days the results of pellet price negotiations for 2008.
Mr Roger Agnelli CEO of Vale CEO told reporters that "The pellets market is currently experiencing strong demand because of the scarcity of metallurgical coal. Australia had problems in late 2007 and also earlier in the year with floods and troubles in their logistics system therefore decreasing the availability of the steelmaking input.”
Mr Agnelli said that "We're talking to our clients to ensure we don't receive less than we should and so we don't charge more than we should.”
Vale secured a 5.3% price increase for its blast furnace pellets last year, FOB from the Tubarão and Ponta da Madeira port terminals in Brazil.
ArcelorMittal Galati to get EUR 1 billion investments
BS reported that ArcelorMittal is planning to invest about EUR 1 billion in ArcelorMittal Galati in the coming five years. The investment is three times higher than total funds allocated to the steel giant’s four units in Romania, since Mittal Steel came to Romania in 2001.
Mr Augustine Kochuparampil CEO of ArcelorMittal Galati told Business Standard that the investment is aimed to improve product quality, increase production capacity and focus on added value products.’
ArcelorMittal Galati is changing the strategy for its Galati plant, shifting the concentration to the Western market, instead of traditional export destinations, such as Turkey and the Middle East. Mr Augustine added that “For Western Europe, we need higher quality products and faster deliveries.”
In the coming five years, steel production at ArcelorMittal Galati is to amount to 7 million tonnes annually, from a current 4.7 million tonnes. It also plans to increase plate steel production to 2.4 million tonnes per year, from its current 1.7 million tonnes in the next 2 to 3 years.
Ternium Siderar orders for a coiler
Argentina Ternium Siderar announced that it has awarded to SMS Demag an order to supply a new down coiler for its hot strip mill in San Nicolas close to Buenos Aires. The new coiler will contribute to increasing the coil quality and to enhancing the plant's availability factor.
The new, fully hydraulic coiler is rated for a maximum strip width of 1,525 mm and strip gages of up to 19 mm. Ternium Siderar will also be able to coil pipe grades of strength category X80 up to a thickness of 14 mm on this coiler.
The new unit will go into service in January 2010. All revamping measures will be performed during ongoing production and during regular maintenance shutdowns.
Ternium Siderar belongs to the Ternium group the biggest producer of flat rolled steel in Latin America, having production facilities in Argentina, Venezuela and Mexico.
PT Inco sales in 2007 up by 74% YoY
Indonesia biggest nickel miner PT International Nickel Indonesia said that its net profit doubled last year from a 2006 on higher prices and production. As per report Inco in 2007 booked a net profit of USD 1.17 billion from USD 513.4 million in 2006. Sales rose by 74% YoY to USD 2.33 billion
The average selling price of nickel in matte in 2007 was USD 29,881 per tonne as compared to USD 18,356 in 2006.
Mr Arif Siregar president director of PT Inco said that "Despite an 11 day strike in November 2007, the company recorded a production of nickel in matte in 2007 of 76,748 tonnes as compared to 71,622 tonnes in 2006 adding that 2007 production was the highest in company history.”
Mr Siregar added that the company has allocated USD 212 million in capital spending for 2008 in the hopes of reaching production of 77,000 to 79,000 tonnes of nickel in matte.
Mr Siregar said that Inco also plans to build a new dam and hydroelectric facility at its Karebbe mining site, Larona River in South Sulawesi, to increase its power generating capacity by 90 MW to 365 MW.
World demand pushes US coal miners- report
Daily Press reported that an increased demand for coal worldwide is leading to a spike in demand from US. Analysts said that the spike in demand can be attributed to a combination of a weakening dollar, growing demand from developing countries such as China and India and various supply problems in other coal producing countries.
Mr David Hofe safety supervisor at Dominion Terminal Associates told the Daily Press that "It is unbelievable. It is just something we have not seen for years."
Mr David F Host president of T Parker Host Inc a shipping agent based in Norfolk said that coal shipments though the port of Hampton Roads could rise more than 50% in 2008 to between 42 million and 45 million tons. That's up from about 28 million tons in 2007. He added that "It's crazy. I've seen perfect storms, but this is the ultimate perfect storm. I mean, seriously."
Mr Charles Brinley president of Dominion Terminal Associates said that coal volume through the terminal could surpass 15 million tons in 2008 more than double what it moved in 2007. he added that the group plans to boost its 60 person workforce by eight to 10 new employees. In the meantime, the terminal operations are running about 40 percent on overtime hours.
Banpu double growth forecast for 2008
Thailand’s largest coal miner Banpu Plc has doubled its revenue growth forecast for 2008, projecting sales will expand by 25% YoY from 2007 THB 32.4 billion on a sharp rise in coal prices.
The report quoted Mr Chanin Vongkulsolkit CEO of Bnapu Plc as saying that the company based the latest projection on average coal selling prices of USD 60 per tonne in 2008 up from the previous forecast of USD 50. The average price last year was USD 41.06 up by 17% YoY from 2006. It forecast sales volume would rise by 3.6% YoY to 20 million tonnes in 2008, 19.5 million tonnes of which would come from Indonesian mines and the rest from local production.
Mr Chanin said that ''Earlier, we projected sales to increase by 12% YoY but the sharp rise of coal prices seen over the first two months had prompted us to revise up the forecast. He added that about 70% of the targeted sales volume has been agreed at an average price of USD 53 per tonne. Coal accounts to 80% of Banpu's revenue with the rest coming from power and steam businesses.
Mr Chanin said that prices had been driven up by tight supplies due to reduced exports from coal producers, mainly in Australia and China.
In 2008, Mr Chanin said, Banpu would remain focused on its coal and power investments in Indonesia and China by seeking new opportunities. Under its five year investment plan through the end of 2008, the company plans to invest USD 333 million this year, of which $230 million would be for mergers and acquisitions. Mr Chanin said that Banpu intends to expand its coal and power activities more aggressively in China, where it wants businesses of at least a similar size as its operations in Indonesia by the end of this year. Its two mines in China are expected to produce 5.5 million tonnes of coal this year, up 25% from last year. Banpu also operates three power plants in China, contributing 12% of its total revenue.
BuildingsDirect.net to acquire MetalBuildingsRUs.com
Steel building supplier BuildingsDirect.net has announced the acquisition of steel building supplier website MetalBuildingsRUs.com. Financial terms of the deal were not disclosed.
This acquisition gives BuildingsDirect.net a new line of steel buildings to offer their customers at the same great prices as their former line of buildings. Customers can choose from a line of prefab buildings or obtain a quote for a custom building size. These steel buildings can be used in a variety of ways including churches, schools, offices, workshops and many other uses.
The MetalBuildingsRUs.com site infrastructure should help increase their company's profile and web visibility, as well as increase net yearly profits. It also allows them to build upon their existing framework and clientele in expectation of increased support and client satisfaction.
BuildingsDirect.net was formed in 2006 to offer potential clientele steel building products over the web. With 14 locations across the U.S, each building is shipped in a timely manner. BuildingsDirect.net offers shipments throughout the U.S and Canada. All buildings have a 25 year guarantee and are weather and insect resistant. Their buildings are easy to assemble yourself or they can erect them for you.
Minor fire reported at Corus Llanwern works
It is reported that fire crew from all over South Wales were called to deal with an electrical blaze at Corus Steelworks in Llanwern yesterday morning.
As per report, at 6:39 AM the alarm was raised after a fire broke out in a control room of a three story electrical substation. The fire, thought to be caused by an electrical fault, was out by 8:06 AM and it is understood no-one was injured.
JFE Holdings affirms plans to raise JPY 300 billion
Standard & Poor's Ratings Services has affirmed its 'BBB+' long term corporate credit and senior unsecured debt ratings on JFE Holdings Inc and JFE Steel Corp after the former said it will issue subordinated unsecured convertible callable bonds of JPY 300 billion for buying back shares and upgrading facilities. The outlook on the long term corporate credit ratings of both companies is positive.
Standard & Poor said that it believes that the issuance of convertible bonds will not be enough to offset the negative impact of the share buyback. However, considering JFE group's high level of stable cash flow generation, it believes that any deterioration in the group's financial profile will not be material and will only mark a temporary slowdown in the pace of the improvement of its financial strength.
S&P added the group will be able to support a large part of its capital demands with its high level of stable cash flow, because further improvement in its revenue base is expected. As a result of this strategy, it evaluates the group as having a high degree of financial flexibility.
South Korean CR output reduces
YIEH reported that South Korean buyers are looking for new availability, since the domestic mills including Dongbu Steel, Hyundai Hysco have reduced the production output.
As per report South Korea domestic major companies have cut output by 30% YoY. Consequently the prices in April will up again. Besides, the supply of CR sheet and pickling sheet will be tightened.
(Sourced from YIEH.com)
South Korea aims to be among world's top 5 builder
South Korean government is pushing to make the country one of the world’s top 5 for overseas construction by 2010, under plan to secure 8% of the global market.
Back in the 1970s and 80s, when oil crises dealt a heavy blow to the world economy, South Korean builders earned billions in foreign currency from construction orders in the Middle East and the government and construction industry expect the same good fortune in the wake of the rapid rise in oil prices.
Korean companies last year raked in a record USD 39.8 billion worth of overseas construction orders, more than double the USD 16.5 billion secured in 2006. Their international market share last year was an estimated at 5.2% up from 2.9% in 2006. Construction orders from the Middle East accounted for 57% of all overseas orders last year and skyrocketed by 239% YoY to USD 22.8 billion. Asian countries such as Singapore, Thailand and Vietnam also placed orders worth USD 12.9 billion with Korean companies last year, a hefty 218% increase from 2006 and accounting for 32% of all Korean orders from abroad.
Doosan Heavy Industries & Construction won the most contracts last year with USD 5.6 billion, followed by Hyundai Engineering & Construction with USD 3.9 billion, Samsung Engineering with USD 3.8 billion, GS Engineering & Construction with USD 3.2 billion and Hyundai Heavy Industries with USD 3.1 billion.
According to Engineering News Record, Korea’s share of the global market had remained stagnant at 1.9% in 2003, 1.8% in 2004 and 1.3% in 2005, but rallied to 2.9% in 2006 and 5.2% last year. It said that the world’s top 5 builders last year were the United States, France, Germany, Japan and China. Korea is expected to finish 10th this year, moving up from 12th in 2003 and 2004, 13th in 2005 and 11th in 2006.
Cockatoo Coal acquires more tenements in Surat Basin
It is reported that Cockatoo Coal has completed the acquisition of tenements in the Surat Basin for AUD 3 million.
Cockatoo Coal in a statement said that EPC 796, Horse Creek and 813, Dogwood Creek, cover around 816 square kilometers and are contiguous with Cockatoo's existing tenements in the basin. It is adding drilling and exploration capability to develop targets and undertake requisite drilling programs.
One die in an accident in ArcelorMittal Liege
It is reported that one worker has been killed and another suffered 90% burns as a result of an industrial accident at an ArcelorMittal plant at Liege in Belgium.
As per report, the accident happened around 10:30 in the pump room. It is understood that an oxygen leak which resulted in paint combusting caused the accident.
PHP 162 billion needed in 6 years for Philippines coal sector
It is reported that Manila in the next 6 years, will need around PHP 162.3 billion in new investments for coal exploration and development in Philippines.
According to data from the Manila’s Department of Energy, PHP 77.4 billion in new investments would be needed to explore and develop potential coal mining areas in the Visayas. Another PHP 45.6 billion would go to Luzon, while PHP 39.3 billion would be earmarked for Mindanao from now up to 2014.
To spur investments, the Philippine’s department of energy is encouraging private investors to put up mine mouth power plants, or generation facilities that are situated within coal mines. According to the department of energy, the mine mouth power plants can use low rank coal, which is abundant in the country.
The department is also encouraging investors to look into the expansion of production of higher rank coal, which can be used either as blending coal for imported coal or as primary fuel for coal-fired power plants.
Potential investors can also look into the possibility of employing clean-coal technologies should they decide to put up coal fired generation facilities.
Department of Energy said that “Now that clean coal technologies are available, the demand for coal has remained steady despite the current stringent standards on environmental concerns.”
ZincOx gets environmental permit for US recycling project
Platts reported that UK based ZincOx Resources has received a key environmental permit for its electric arc furnace dust recycling project in the US. As per report ZincOx has received the final permit from the Ohio Environmental Protection Agency, the sixth permit to be granted for the project.
ZincOx in a statement said that "Although there are some further routine formalities to be completed, this permit is the last major hurdle to be overcome before site work can commence, which is expected to be in May 2008.” It added that progress is also continuing on design, with the completion of all basic engineering and the identification of long-lead items, the procurement of which has begun.
The report further added that ZincOx is planning to treat electric arc furnace dust in Ohio using a rotary hearth furnace for the production of impure zinc concentrate and pig iron. The concentrate will be treated at ZincOx's Big River Zinc smelter in the US for the production of zinc metal and the pig iron will be used for steel production in Ohio.
ZincOx said that an economic model has been generated for a furnace treating 200,000 tonne per year of EAFD for the production of over 45,000 tonne per year zinc contained in the impure concentrate.
PT Bumi to buy stake in Newmont unit - Report
The Financial Times reported that Indonesian mining company PT Bumi Resources, Indonesia’s largest coal miner, agreed last year with three local governments in Indonesia to buy 31% of an Indonesian unit of Newmont Mining Corp.
As per report Bumi agreed to fund local governments via a joint company to purchase the Newmont unit and that Bumi would have access to the shares should the local governments breach the terms of the agreement.
Newmont officials said the agreements constitute a hidden effort to manipulate the scheduled divestiture of the unit to local buyers and may have constituted a breach of integrity in the sale process. Newmont has accused Bumi Resources of putting at risk its contract by secretly plotting to undermine the share divestment process.
Newmont has until 2010 to divest an additional 31% in the project under Indonesian law. Newmont and its foreign partners were scheduled to sell the 10% stake last year, but Indonesian officials said the companies were moving to slowly.
French ports on track for privatization
Reuter reported that French ports are on the track of privatization. The report quoted Mr Francois Fillon French Minster as saying that cargo handling operations at seven of the country's nine public ports are on course for privatization. Mr Fillon said that “I have asked junior minister for transport to prepare a plan to re launch the French public ports which should end in legislative measures. First of all, we need to transfer the handling activities done by the ports to private operators.”
Mr Fillon has said that he is aware of worries about job security and said that the authorities would be “very attentive to the situation of port workers.” He added that talks would take place 'port by port' with the aim of almost tripling container handling capacity at French ports by 2015. That would not impair employment but create some 30,000 jobs.
According to a Reuters report, the shipping industry has been pressing the government to reform French ports to push for greater efficiency, but trade union opposition has delayed the process.
According to Reuters, over the last 20 years Marseille, France's largest port, has dropped from first to 11th place in the Mediterranean for container trade, and is still losing market share.
The French’s Confédération Générale du Travail has opposed to the reforms and called several strikes last year.
Hai Phong port construction to begin in Q2 of 2008
According to the Vietnam’s planning and investment department, Hai Phong International Gateway Port is being planned for Cat Hai District in the northern port city of Hai Phong beginning in the Q2 of 2008.
Mr Pham Van Long deputy head of the industry and service sector under the department said that "Viet Nam National Shipping Lines, the investor is rapidly preparing for the project." He added that the final project had been submitted to the government and would be approved by Mr Nguyen Tan Dung PM of Vietnam within the month.
Mr Long said that "If the Prime Minister approves the project, it will begin in May. If not, it will be built one month later. The Prime Minister will approve the project after seeing results on how the project will impact the surrounding environment.”
According to the plan, the project will have two phases. Covering an area of 1,200 hectare, the project will include wharves, service systems and modern transport facilities outside of the port. It is estimated that the two phases will cost VND28 trillion (USD 1.8 billion) which will be mobilized from the domestic and State budgets as well as from international investors.
The first phase will be carried out from 2008 to 2010. When completed in 2020 the Hai Phong International Gateway Port will be the key port in the region. Roughly 100 million tonnes of goods are hoped to be transported through the port by 2020.
Bids for Saudi Egypt causeway to invited in 2008
MEED reported that bids for the causeway which will link Saudi Arabia to Egypt are expected to be invited by the end of 2008. The 21 kilometer long causeway will be implemented as a build operate transfer contract and is estimated to be worth around USD 4 billion. The causeway will link Ras Humaid in the northern Saudi region of Tabuk to the Red Sea resort of Sharm el Sheikh and will pass through Tiran Island at the entrance of the Gulf of Aqaba.
The project that was announced in 2007 was later dismissed by the Egyptian government, but was again flagged up at MEED's Arabian Construction Summit in Abu Dhabi in January 2008.
A source close to the Qatar Bahrain causeway also said that this project is definitely going to go ahead, although a few issues surrounding the contract had to be ironed out before work on the project could begin. The source said that "It could be another two years before bids for the main construction contract are invited for this causeway, which could cost anywhere between USD 8 billion to USD 13 billion. We have only just finished the concept design."
Qatar is on an accelerated drive to build bridges and causeways with neighboring GCC states including Bahrain and maybe even the UAE, in order to become more accessible by road to these countries.
Rising steel prices to effect economic growth of Pakistan – Report
The News reported that the rising international steel prices and its raw material like iron ore and coke have posed a challenge to economic growth of Pakistan.
The construction boom in emerging economies of Asia has put serious pressure on the government to plan for developing long term steel policy for Pakistan.
The local steel dealers are demanding that government should reduce custom duty on raw materials to bring down the cost of production of steel. Pakistan desperately needs new steel mills to cater the rising demand of the country, unfortunately, the required steps are not being taken, which would be a great loss to country in the longer run.
Experts said that Pakistan needs big projects to pursue the self reliant policy in the steel making as our neighboring countries are doing in steel production.
Steel is a significant ingredient in today’s life starting from a small nail to structures of skyscrapers, bridges and much of daily use machinery and steel usage is one of prime barometers of growth. Despite the increasing use of aluminum, steel is still a major component of automobile industry.
Siemens Water Technologies expands presence in MEA
It is reported that Siemens Water Technologies is expanding its presence in the Middle East with the formation of a new competence center in Abu Dhabi and in Riyadh.
Siemens will consolidate its presence in the region and expand its range of water and waste treatment services and solutions through investments of around 10 million US dollars, expanded employment of around 30 new process and application engineers, and chemists by 2010, and use of local Siemens manufacturing facilities.
Mr Roland Fischer, who is responsible for Siemens business development in Europe, Africa and the Middle East said that "The growing need for water in the cities as well as increasing demand in industry, including more stringent environmental requirements for industries such as oil & gas, require new measures for water and wastewater treatment in Middle East."
Mr Fischer said that "Due to the expansion of cities and economic growth, the requirements for the supply of clean drinking water and sufficient wastewater treatment are increasing. Another area which will become increasingly important is the transport and distribution of water."
He further added that "With our solutions, systems and products, we can help communities and industry to better manage the use of our natural water resources, which is becoming increasing important in this arid region. And by treating wastewater for reuse and recycle, technology will continue to be an enabling technology to support the water demands of the region for years to come."
Pakistani exporters urge for improving logistics for cement export to India
Dawn reported that local exporters of cement have urged the Trade Development Authority of Pakistan to resolve logistics problems hurting shipments to India by land. The recent decision by the Pakistan Railways to increase cargo service to three trains daily is believed to be of no consequence as the track between the Lahore Cargo Shed and the mainline is not rail worthy.
Mr Amjad Rafi former president of Karachi Chamber of Commerce & Industry said that “In 2007, when we began cement exports to India numerous problems were faced but the Trade Development Authority of Pakistan took no interest in resolving them.”
Mr Rafi thought that "If Trade Development Authority of Pakistan provided financial assistance for repairing a small portion of rail track in Lahore it would not only of great help to the exporters but would also earn more foreign exchange for Pakistan." He added that there is huge demand of cement from India, which runs close to 5 million tonnes per annum.
Mr Rafi further added that India always enjoyed favorable balance of trade with Pakistan and it is for the first time after so many years that an opportunity is looking at us for correcting the situation to some extent.
Trade Development Authority of Pakistan claims to encourage and support with subsidy exports of goods to non traditional markets but it failed to prove its loud claims with regard to cement export to India.
OPEC sees no need for output boost
Reuters reported that OPEC's Economic Commission Board is holding a 2 day meeting at the group's Vienna headquarters ahead of the group's March 5th 2008 gathering and it does not see a need for the group to raise its oil output. An official of the board said that "So far, it seems things will not change. Let's see what happens tomorrow."
Oil hit a record high above USD 102 a barrel this week, partly on expectations that OPEC will not raise production. News that a fire struck a major European natural gas terminal also pushed oil to reach its all time high. Record weakness in the US dollar encouraged oil's gains, fueling a broad commodities rally.
Mr Sam Bodman US energy secretary reiterated calls for OPEC to open the taps as US consumers struggle with the effects of rising energy costs, the mortgage crisis and the credit crunch. But OPEC ministers said that the prices are rising on speculative buying and insist global supplies are ample to cover demand.
UAE plans to keep dollar peg – Report
Gulf Daily News reported that UAE is committed to keeping its currency tied to the dollar. Dollar pegs restrict Gulf countries' ability to fight inflation by forcing them to shadow US monetary policy at a time when the Federation is cutting rates.
Mr Sultan Nasser Al Suweidi governor of UAE Central Bank said that “The dollar is heading towards a rise therefore it is illogical to talk now about dropping the link of the dirham to the dollar. Greenspan is proposing several scenarios to reduce pressure on Gulf economies which are suffering from a rise in the level of inflation for several domestic and foreign reasons not exclusive to their currencies' peg to the dollar."
Mr Suweidi said that "The link has led to more capital flows to Gulf economies. The countries of the region have witnessed more commerce and more business activity. It also helped prepare for the Gulf monetary union."
Gulf economies, which are aiming for monetary union, have been surging on a near 5 fold rise in oil prices since 2002.
Dubai is the top financial hub in Gulf – Report
It is reported that Dubai has retained its position as the leading financial centre in the region in the latest Global Financial Centers Index. It also came in first out of 5 global cities that were singled out as likely to become significantly more important over the next 2 to 3 years. According to the index, Dubai was identified as a key and growing regional hub
Dubai’s rating increased by 10 points, moving it into 24th position globally. It was a 15 point jump in ratings since the first report was published in March 2007. Meanwhile, Dubai continues to remain in the lead among the list of cities that have been identified as centers most likely to increase in importance over the next two to three years.
Bahrain and Qatar, which initially failed to enter the top 50 GFCI ranking in March 2007, have improved their performance since September 2007. Bahrain and Qatar experienced the biggest jump in the ratings, by 59 and 51 points, respectively. Bahrain, which was ranked 44th with 455 points, improved its performance and its position by 3 spots. Qatar on the other hand gained 51 points and remains in 47th position with 491 points as compared to 440 points in September 2007.
London and New York continue to hold their first and second positions respectively, leading by 90 points ahead of the next 2 centers. Singapore, in fourth place, is quickly catching up Hong Kong. Others in the list are Shanghai, Malta, Beijing and Singapore.
115 oil firms eying for Iraqi oilfield deals
The Peninsula reported that more than 100 firms including foreign majors are vying for deals to tap Iraq’s vast oilfields but a vital oil law is stalled by tension involving the Kurdish region.
Mr Hussain Al Shahristani oil minister of Iraq said that 115 firms had registered to compete for oil extraction and service contracts to help develop Iraq’s oil reserves. Of these, 10 were American, with companies also from Japan, Russia, Britain, Canada and South Korea. Mr Shahristani also said Iraq is close to finishing negotiations with several oil majors for technical support contracts that would hopefully be signed in March 2007.
Mr Shahristani said that “From announcing the qualified companies to the signing of the contracts will take a minimum one and a half or two years, but we will try to make it within a year. We are negotiating with these five companies. We are at the end of the negotiations. They will study the fields with us, we will put together a plan to boost production, they will help us to select the equipment and deliver this equipment to us. There are other firms which showed interest in signing with us, so we might as well sign a few more as we go along.”
Iraq currently exploits only a fraction of its reserves, among the cheapest to produce, and international oil firms have been positioning for years to gain access. Iraq produces about 2.5 million barrels of oil a day, dwarfed by its 115 billion barrels of proven crude oil reserves. Only those of Saudi Arabia and Iran are larger. The service and extraction contracts are seen as a stop-gap until a crucial oil law is passed, and will not provide the long-term involvement big oil companies crave.
DEWA to introduce new power tariff system from March
ArabianBusiness.com reported that Dubai Electricity & Water Authority is to introduce a new tariff system from March 2008, under which big consumers will have to pay more. The move is intended to cut wastage of power and water. DEWA said that 80% of all bill payers would be unaffected by the new sliding scale price structure, since they consume reasonable amounts. It added that UAE nationals were excluded at this stage.
Mr Mohammad Al Tayer Saeed CEO of DEWA said that "The community has to be more reasonable in the way resources are used. For this purpose, DEWA is launching a new series of emirate wide awareness and educational programs to disseminate the culture of conserving electricity and water."
Mr Al Tayer said that "We firmly believe that there is an escalating necessity to implement responsible energy consumption strategies. The new tariff system will encourage people to keep a closer eye on their electricity and water consumption. It will also pave the way towards a more responsible utilization of natural resources."
DEWA said Dubai's average per capita consumption of 20,000 kWh of electricity each year and 130 gallons of water per day puts it among the cities with the highest power and water consumption rates in the world, exceeding many cities in well developed countries such as the USA, Japan, UK, Germany and Singapore.
Emarat and Dana Gas to form 50:50 JV to operate pipeline
MMED reported that Dana Gas and Emirates General Petroleum Corporation have agreed to form a 50:59 JV to own, manage and operate the Middle East's first common user gas pipeline in the UAE. The pipeline will be completed in March 2008.
Phase I of the project was completed in May 2006 and has since been delivering gas to the Sharjah Electricity & Water Authority power station at Hamriyah.
Dana Gas and Emarat, along with the 3 end users Federal Electricity and Water Authority, Sharjah Electricity & Water Authority and Dana Gas affiliate Crescent Natural Gas Company Limited, signed a MoU for the implementation and utilization of the pipeline in January 2006.
China strongly opposes US probe into SS pipe imports
Xinhua reported that Chinese ministry of commerce has strongly opposed the US decision to launch dual trade investigations into its steel tubes.
A ministry of commerce spokesman in a statement said that the use of anti dumping and anti subsidy measures violated US rules and the tradition of not adopting anti subsidy measures against non market economies.
He said that "The move is unwise and wrong as it will not help to develop mutually beneficial, harmonious and healthy Sino US trade relations and will even complicate the normal bilateral trade relations.”
He added that "The ruling has greatly hurt the interests and feelings of Chinese industry and we hope the US will soon correct the mistake to avoid negative influence."
The US Department of Commerce decided on February 20th 2008 to initiate anti subsidy and anti dumping probe into imports of circular welded austenitic stainless pressure pipes from China. This is first dual probe the US launched against Chinese imports this year, lifting the total to nine since November 2006.
Inner Mongolia to shut 600,000 tonne ferroalloy capacity in 2008
It is reported that Inner Mongolia has vowed to eliminate 1 and 2 million tonnes respectively of obsolete ferroalloy capacity and calcium carbide capacity by the end of the 11th Five Year Plan, with 600,000 tonnes and 200,000 tonnes respectively washed out in 2008.
In the year of 2008, the government in Inner Mongolia carried quota policy in calcium carbide and ferroalloy industry and total outputs of calcium carbide and ferroalloy in the whole year were limited in 5m tons and 3m tons respectively. Additionally, Inner Mongolia shut down 57 ferroalloy companies and 5 calcium carbide companies in 2007 and closed down 270,000 tonnes of outdated ferroalloy capacity and 100,000 tons of outdated calcium carbide capacity.
In order to accelerate the closure, Inner Mongolia enlarges the plan of closing missions of ferroalloy and calcium carbide from 600,000 tons and 1.2 million tonnes to 1 million tonnes and 2 million tonnes respectively, among which 600,000 tons of ferroalloy capacity and 200,000 tons of calcium carbide capacity should be closed down in 2008.
It implemented output quotas of 5 and 3 million tonnes respectively last year. Enterprise whose quotas were exhausted would be insulated from electricity supply and those who pollute heavily would not enjoy any quotas. So far Inner Mongolia has shut down 57 ferroalloy producers and 5 calcium carbide producers in 2007, covering total capacity of 270,000 tonnes and 100,000 tonnes respectively.
With abundant resources of coke, silica, iron, etc, Inner Mongolia has been developing high energy cost industries such as ferroalloy and calcium carbide since 2000 and has already become an important production and export base in China.
(Sourced from Mysteel.net)
Policies to slow China steel exports start giving results
Xinhua reported that growth in China's steel exports slowed in 2007, despite the country remaining a net seller of the strategic products.
According to China’s General Administration of Customs, China exported 62.65 million tonnes of rolled steel in 2007 up by 45.8 % YoY. The growth rate was 63.7% points lower than the year earlier level. Meanwhile, the country imported 16.87 million tonnes of rolled steel, down by 8.8%. Net exports stood at 45.76 million tonnes.
The customs source said the slowdown in exports was a result of government policies to contain exports. It said that since April 2007, China has slashed export tax rebates and increased export duties four times, in addition to putting some steel products under an export licensing system.
The aim was to end the disorder in steel exports and rampant expansion of production capacities at home. At the same time, it was to expedite industrial restructuring and upgrading. Though the growth rate slowed, concentration of the steel industry remained unsatisfactory. In the first half of 2007, the leading 10 steel producers accounted for 35 percent of the nation's total output, still far behind the 50-percent requirement set by the government for 2010.
According to the customs source, growth in steel sales to traditional markets ebbed dramatically while demand from emerging markets became stronger. It added that the Republic of Korea, European Union and ASEAN remained the top three target markets of Chinese steel products last year, accounting for 33.34 million tonnes or 52.3% of the country's total steel exports. But the growth rate in combined exports for the three markets went down 60.7% points to 45.7%.
Bagang commissions new BF
It is reported that the 2,500 cubic meter blast furnace of Baosteel group Bagang Company has been completed and put into production.
The total investment of this blast furnace was CNY 1 billion, it is the first large scale blast furnace invested by Baosteel after Bagang company formally jointly Baosteel group in 2007.
Baosteel No 1 blast furnace can produce 1.75 million tonnes molten iron every year it adopts the international advanced and mature technology. The completion of it indicated Baogang group Bagang Company made a step to large scale equipment, automation equipment, and scale of production.
Mr Chen Zhongkuan GM of Bagang said that after the completion of No 2 2,500 cubic meter blast furnace in November this year, Bagang’s integrated steel production capacity will reach more than 8 million tonnes and it will become the most competitive iron and steel enterprise in Northwest of China, even in the middle of Asia.
Nanjing Steel raises EXW prices for rebar and wire rods
China’s Nanjing Steel announced that it has increased EXW prices for some products, on the basis of prices released on February 25th 2008.
As per release, the price is hiked by CNY 200 per tonne for rebar, high speed wire rod and strip steel, CNY 220 per tonne for round bar and carbon high quality structural round bar and CNY 60 per tonne for medium plate and low alloy steel.
It added that latest EXW price is offered at CNY 5250 per tonne for 18mm to 25mm HRB335 rebar and CNY 5300 per tonne for 6.5mm Q235 high speed wire rod.
Prices listed above are inclusive of 17% VAT, effective as of February 28th 2008.
(Sourced from Mysteel.net)
Chinese tin metal and concentrate imports rise
Reuter reported that China has remained a net importer of refined tin in January 2008 and imports of both metal and tin concentrates were well above corresponding year earlier levels.
According to official customs figures reported by Reuters, exports of unwrought tin in January 2008 were only 305 tonnes, down by 61% YoY. Meanwhile imports rose by 55% to 1,371 tonnes.
The main sources of imports were Indonesia and Singapore, but Bolivia figured as a supplier of 200 tonnes for the second month running.
China introduced a 10% export tax on refined tin on January 1st 2008.
Baotou Steel release March 2008 prices
Inner Mongolia's Baotou Steel releases its latest prices for March 2008 productions, on the basis of prices published on January 17th 2008:
1. HR: up by CNY 600 per tonne
Latest EXW price stands at CNY 5420 per tonne for Q235 3.0mm HRC CNY 5250 per tonne for Q235 5.5mm HRC.
2. CR: up by CNY 750 per tonne
Up by CNY 700 per tonne for full hard and HDG
SPCC 1.0mm CRC is offered at CNY 6350 per tonne
SPCC 1.0mm full hard at CNY 5500 per tonne
SGCC 1.0mm HDG, at CNY 6200 per tonne
3. Medium Plate: up by CNY 600 per tonne
Large and Medium Sized Section Steel up CNY 300 per tonne
For below 45# I beam up by CNY 450 per tonne
For 45# I beam or more up by CNY 350 per tonne for channel steel.
Prices listed above are INCLUSIVE of 17% VAT, effective as of February 27th 2008
(Sourced From Mysteel.net)
China should revalue yuan to avoid overheating - Mr Mandelson
According to Mr Peter Mandelson, trade commissioner of European Union, China should gradually revalue its currency to cool its booming export sector and also allow European companies fairer access to its market.
Mr Mandelson in an opinion piece published in China Daily said that revaluation of the yuan would benefit the Chinese economy. He said that "Even on a difficult issue like the currency, China's interest clearly lies in a gradual revaluation that takes some of the excess heat out of the export sector and strengthens consumer purchasing power.”
He added that the revaluation should be combined with an opening up of Chinese markets to reduce the ballooning trade deficit, which was worth about EUR 130 billion in 2006.
Mr Mandelson said European companies could not be blamed for the huge trade deficit. He said that "European companies compete effectively in every global market in which they are given a reasonably fair chance. However, in China, European trade and investment is still unfairly restricted and European intellectual property rights which are fundamental to our competitiveness are poorly protected."
China is widely criticized for allegedly allowing its currency to remain at an artificially low level, giving its exporters an unfair advantage and contributing to massive trade surpluses with the United States and Europe.
Handan Steel latest prices for plates and construction steel
Hebei based Handan Steel has hiked its latest EXW prices for some products, based on prices released on February 18th 2008
1. Wire Rod: up by CNY 320 per tonne
Q235 6.5mm common carbon wire rod is quoted at CNY 4920 per tonne
Q235 6.5mm high speed wire rod, at by CNY 4960 per tonne
2. Rebar and Round Bar: up by CNY 260 per tonne
HRB335 12mm rebar is quoted at CNY 5190 per tonne
HRB335 14mm rebar, at CNY 5140 per tonne
HRB335 16mm to 25mm rebar at CNY 4990 per tonne
Q235 16mm to 25 mm round bars at CNY 5030 per tonne
3. Medium Plate: up by CNY 500 per tonne
Latest EXW price for Q235B 20mm medium plate stands at CNY 5750 per tonne
4. Ship building Plate: up by CNY 600 per tonne
CNY 50 per tonne higher for those with thickness of 50mm or more.
CCSA20mm ship building plate is offered at CNY 6195 per tonne
Prices listed above are inclusive of 17% VAT, effective as of February 28th 2008
(Sourced from Mysteel.net)
Chinese latest survey finds 800 mineral mines
It is reported that China's latest round of national resources survey, which has been going on for nine years, has found over 800 new mineral mines, with over 60 being large and medium scale mines.
This round of survey has submitted newly discovered resources in reservoir including 32 million tonnes of copper resources, 78 million tonnes of lead and zinc resources, 760 million tonnes of iron ore resources, 400 million tonnes of potassium and 850 million tonnes of phosphorus ore resources. These results are regarded as a strong pull to commercial mineral resources exploration.
The Lop Nur of Xinjiang added 70 million tonnes of new potassium resources through this round of survey, bringing its total resources volume to 350 million tonnes, making it China's key potassium production base.
It added that Qulong copper mine in Tibet added over 10 million tonnes of resources, becoming China's largest copper mineral bed. In addition, major iron ore discoveries were made in the middle and lower reaches of the Yangtze River, Shanxi and Hebei area and Liaoning and Jilin region.
China Steel makes strong ASX debut
AAP reported that China Steel Australia Ltd made a strong debut on the Australian stock exchange on Friday, with its shares closing 50% stronger.
China Steel is one of the largest nickel pig iron producers in China, producing about 40,000 tonnes a year. Nickel pig iron is used as a substitute for pure refined nickel in the production of stainless steel.
China Steel's head office is in Singapore, its Australian office is in Brisbane and its steel and alloy plant is in China's Shandong province.
Shougang Group profit in January increases substantially
It is reported that sales income of Shougang Group in January 2008 was up by up by16% to CNY1.46 billion higher than the plan and the profit was CNY 164 million 46.3% higher than the plan.
As per report Shougang Groups No 4 blast furnace was closed down on January 5th 2008 and it has started the mission of cutting down 4 million tonnes of steel output. Total output of four plate lines in January was 72,400 tonnes and outputs of 4300 roller and 2160 HR sheet line reached new high as well.
The proportion of key products output in total output was 66.09% in January, up by 13.73% points, while the proportion of sheet and strip output in total output was 54.91%, up by 30.92% points.
Meanwhile, Shougang Group exploited 8 varieties of new products in January.
Mechel Campia Turzii reports net loss in 2007
Alpha Finance Romania reported that Romania Mechel Campia Turzii net turnover in 2007 increased by 11% YoY to RON 472 million but the increase in turnover was not followed by a positive result in the net profit.
It has recorded a loss of RON 27 million as compared to 2006 result and the company has total debt of RON 148 million.
Transstroi to help Mechel develop rail network for Elginsky deposits
FIS reported that Mechel has signed a contract with Transstroi Engineering Corporation, the member of Project construction Company Transstroi Holding, on designing and construction of a railway branch connecting Ulak station of the Baikal Amur Railway with the Elginsky coal deposit.
As per report the railway branch's total length will be 315 kilometer, this includes 420 artificial installations, including 194 bridges and the branch's throughput will total 25 million tonne per annum.
Railway construction is the first phase of the development of the Elginsky coal deposit, whose production output is estimated at 30 million tonne per annum. The railway branch is to be put into operation not later than September 30th 2010.
Kazak ministry asks ArcelorMittal to improve environmental controls
Kazakhstan Today reported that the ministry of environment protection of Kazakhstan has requested ArcelorMittal Temirtau to increase efficiency of nature protection measures.
According to a release from the ministry, Mr Nurlan Iskakov minister of environment protection of Kazakhstan held a meeting on February 26th 2008 with the management of Arcelor Mittal Temirtau concerning issuing the sanction for emission to the environment for this year.
The release said that "Following the results of the meeting with ArcelorMittal Temirtau, the date for revision of contract financial opportunities and increases of efficiency of nature protection measures has been defined.”
As per report, for a number of years the enterprise has not been solving the issues of effective decrease in emissions of polluting substances and negative influence of the activity ArcelorMittal Temirtau on the environment.
Chepetsk to expand production of titanium
FIS reported that Chepetsk Mechanical Plant, one of the leaders of Russia's atomic industry, in 2008 is set to increase titanium production to 210 tonnes from 44 tonnes in 2007.
The announcement was made at the meeting of Mr A Volkov president of Udmurtia with Mr Yu Olenin president of TVEL Corporation.
The plant's short term projects include production of superconductors for the international thermonuclear reactor project and production of zirconium, hafnium and titanium. Investments into ChMP development are projected at about RUB 15 billion for the next few years.
MMK posts rise in annual net profit
It is reported that Magnitogorsk Iron and Steel Works net profit under RAS grew by 39.36% YoY to RUB 51.723 billion (USD 2.14 billion) in 2007.
MMK net profit in Q4 of 2007 fell by 23% QoQ from Q3 to RUB 11.14 billion (USD 462 million). MMK attributes the decrease to the accrual of deferred profit tax obligations.
Transneft to start construction of Kozmino Port in March
Interfax reported that Transneft will start construction of Kozmino port in March 2008. The announcement was made in Vladivostok by Mr Nikolai Tokarev president of Transneft at a presentation of the declaration of intent to build the second phase of ESPO.
He said that "As of today, feasibility study has been completed for the terminal construction. It has been approved by state expertise. In March we are to start the project implementation
Mr Tokarev said that the terminal of the specialized oil port Kozmino will have two berths for handling of 80,000 DWT in the first phase and 150,000 DWT in the second phase. The first phase is supposed to handle 300 tankers per year. The number is to grow to 500 tankers when the second phase is put into operation.
According to Mr Tokarev, the project is valued at RUB 41 billion. He said that besides, implementation of the second phase of ESPO will also be started in March. He added that the second leg will stretch for 2,100 kilometers from Skovorodino to the Pacific. It will pump 367.5 million barrels of oil annually. The second stage also envisages an increase in the Taishet to Skovorodino pipeline's capacity to 588 million barrels.
South Stream projects to be launched soon – Mr Medvedev
Interfax reported that the implementation of the South Stream pipeline project would hopefully begin very soon.
The report quoted Mr Dmitry Medvedev first deputy prime minister as saying that the participation of Serbia and Hungary in this project "makes it not only absolutely viable, but in fact, gives it a good and handsome start.”
He told journalists of the Volga Federal District in Ufa that "Let us hope that active work on the technical aspects will begin in the near future and the construction as such will be launched.”
Norilsk Nickel to seeks LSE listing
RBC news reported that the world's largest palladium and nickel producer Norilsk Nickel is planning an additional listing of shares on the London Stock Exchange in the Q2 of 2008.
The report said that Norilsk Nickel's board of directors had originally approved the management board's proposal to make a listing on the London Stock Exchange in 2008, as well as to carry out a split of the company's ADRs.
Rail traffic between Russia and Mongolia in 2007 up by 11.3% YoY
According to the press service of Russian Railways, in 2007 the volume of foreign trade rail transportation between Russia and Mongolia increased by 11.3% YoY and totaled 1.314 million tonnes, including 839600 tonnes of export, 236400 tonnes of import and 238200 tonnes of transit.
During the period the volume of foreign trade rail container transportation grew by 51% YoY and totaled 4401 TEU and the volume of transit cargo transported via Ulan Bator Railway totaled 3.429 million tonnes.
Palmali and Krasnoe Sormovo to build 2 tankers
Palmali announced that it has signed a contract Krasnoe Sormovo on building 2 tankers of 13470 tonnes deadweight each.
As per report these are the forth and the fifth in the series of tankers being built in Nizhni Noivgorod. The first 2 ships were delivered to the customer in 2007; the third vessel will be delivered in spring 2008. It added that the forth and the fifth will be launched in October to November 2009.
