Indian crude steel and DRI production in 2 months surges

As per the latest release from International Iron and Steel Institute, India’s crude steel production is 4.636 million tonnes in February 2008 up by 25.1% YoY as compared to February 2007. China has recorded only 7% YoY growth in crude steel production during January to February 2008

In million tonnes
Source – IISI
2007 Figures are as per earlier release

Thus taking an average production of 4.8 million tonnes per months Indian crude steel production is likely to reach 57 million tonnes. But with new capacity additions in the balance 10 months it may cross 60 million tonnes

The production of DRI has also surged by 12.5% YoY in January to February 2008 period. India accounted for 33.4% of the share out of total global production of 9.427 million tonnes

In million tonnes
Source – IISI
2007 Figures are as per earlier release

India may remove import duty, withdraw DEPB and levy export

ET reported that Indian government is examining a proposal to reduce import duty, remove DEPB scheme and impose 10% export duties on steel in a bid to discourage exports and improve domestic supplies.

The report cited a steel ministry source as saying that "The steel ministry has proposed levy of 10% export duty on finished steel including TMT bars, semis and hot rolled coils and removal of 5% import duty on steel to the prime minister’s office. It has also suggested that DEPB benefit should be withdrawn for exporters.”

The source added that “The fiscal measures are aimed easing the steel supply in the market and bringing down input cost that could result in softening of steel prices."

Indian steel industry against regulator in the sector

PTI reported that Indian domestic steel industry has termed the move by steel ministry for a regulator in the steel sector as a retrograde step that will put the manufacturers between two prongs of a pincer".

Mr Moosa Raza chairman of Indian Steel Alliance in a letter to Dr Manmohan Singh prime minister of India said that "While steel manufacturers shared the government's concern about current price situation any attempt to regulate market forces operating on steel prices disregarding root causes is a retrograde step and will adversely affect growth of the industry.”

Mr Raza said that the input costs have shot up unimaginably high and have gone beyond the capacity of steel utilities to absorb the same. He cited that spot prices of iron ore have increased to USD 150 per tonne, scrap prices have shot up to USD 500 and coke from China has hit the ceiling with a price of USD 523 per tonne.

Mr Raza added that “The Indian prices of hot rolled coils are ruling at USD 800 per tonne, perhaps the lowest in the world, whereas international prices of steel are over USD 1,000 per tonne.”

Mr Raza said that "In the light of this, any talk of regulating prices will tantamount to putting the steel manufacturers between two prongs of a pincer.”

Mr Raza said that “On one hand the un absorbable cost push would compromise the margins for the steel producers, while on the other hand a controlled or regulated regime would compromise its very survival.’

SAIL to modernize iron ore mining system

Mr G Ojha director personnel & in charge of SAIL's Raw Materials Division said that it will modernize its total mining system for quick and proper use of iron ore in India. He added that raw materials are not being utilized properly due to lack of modernization causing material loss.

Mr Ojha said that "All the natural resources are not unlimited so we have to use it considering the future. The government should reconsider its policy of import of iron ore as it may not be that beneficial to the nation. For the last 50 years, the steel manufacturer has been working for the interest of the nation despite many adverse situations. Many steel plants have come up. Many big and small plants are coming up but no one can be compared with the SAIL."

He said that SAIL is committed to fulfill the people's expectations. He added that "We are committed to improve the life of the workers and people."

SAIL RSP installs new dust catcher at dolomite plant

BL reported that a new dust extraction system has been installed at the limekiln of the lime and dolomite brick plant of the Steel Authority of India’s Rourkela Steel Plant in order to have a cleaner environment.

As the kiln did not have the facility earlier to improve the situation, installation of a dust extraction system was envisaged. With the installation of this new system, the emission level at the chimney has come down to less than 50 milligram per normal meter cube against the norm of 150 milligram per normal meter cube.

Initially the project was expected to cost INR 8.5 million, but with the combined effort of the environment engineering department and IDBP, the cost would get reduced to about INR 4.3 million.

Indian foundry sector calls for national policy on iron ore exports

BS reported that Indian Foundry Association will submit a memorandum to union steel minister for a policy on pig iron, along with iron ore.

As per report, IFA would urge the government to form a national policy on iron ore and pig iron exports to safeguard the interests of the domestic industries and impose export duty on pig iron of no less than 25%. It also wants pig iron producers to keep prices firm for at least 3 months and bring some stability in the market and prices brought down to actual increase in input cost only.

Mr Pawan Sureka chairman of IFA said that prices have increased by more than 30% in last weeks. He added that on January 31st 2008, the price of pig iron was between INR 18,600 and INR 20,300 per ton, whereas it is now at INR 24,900 and INR 27,500 per tonne. The basic price of pig iron in March 2006 was INR 12,500 per tonne.

Mr Sureka said that the government should also negotiate with the Chinese government pressurizing them to withdraw export duty on coke in lieu of the low or insignificant tariff on export of iron ore from India.

SAIL develops model village in Orissa

It is reported that, in bid to further its CSR activities, Steel Authority of India Limited has developed a model steel village at Kalta Basti in Orissa, close to SAIL’s Kalta iron ore mines.

Now the village can boast of steady supply of drinking water, solar lamp lit streets, a community hall cum vocational training centre and self employed youths. SAIL has also started a centre to teach fishery, sewing and stitching and leaf plate making to the residents. With that an orchard with 1,000 and odd fruit bearing trees is also in place to promote employment.

Mr G Ojha director personnel & in charge of SAIL's Raw Materials Division inaugurated the steel village in a function held recently at Kalta Basti.

Mr Ojha said that in the current financial year SAIL is spending INR 100 crore on CSR and the amount would increase in future. He added that, for Kalta peripheral development, SAIL has already spent INR 1.30 crore and by the end of this fiscal it would put in another INR 2.5 million.

The total budget for CSR under SAIL's Raw Materials Division in this fiscal is INR 6 crore for infrastructure development, drinking water, health care, education and sports.

SAIL's Raw Materials Division, which operates the mines in the eastern sector, has already identified the villages neighboring its mines located in the State of Orissa, Jharkhand, and Madhya Pradesh. Focusing on the remote villages surrounding its mines and plants, SAIL has drawn out plans to develop 16 villages into model steel village, out of which 9 villages will be in the mines area. Likely expenditure for developing total 9 villages under RMD will be INR 5.56 crore in the current year.

MRTPC to probe cartelization by Indian steel companies

TOI reported that steel companies, already facing the heat from the centre over raising prices, may be headed for further trouble with the Monopolies & Restrictive Trade Practices Commission ordering a probe into possible cartelization.

As per report, MRTPC has asked its investigative arm Director General Investigation & Registration to look whether the companies have formed a cartel while they raised prices in the market. It said that "The matter will be looked into by the DGIR and apart from probing aspects of a cartel and would also study whether companies have engaged in unfair trade practices."

The DGIR inquiry comes just when Mr Ram Vilas Paswan union steel minister has cautioned private steel makers that the centre would take stringent steps if steel prices continued to rise. Mr Paswan even said that the centre would be left with no option other than to constitute a steel regulatory body if steel companies continued to defy the government.

Update on Indian mineral production during December 2007

India’s mineral production from mining and quarrying sector in December 2007 has increased by 4.48% MoM as compared to November 2007. Similarly the mineral sector has shown a positive growth of 4.84% YoY during April to December 2007 period as compared to April to December 2006 period. The mineral production in December 2007 is also higher by 3.01% YoY as compared to December 2006.

Details of minerals production and earnings in December 2007

Volume in million tonnes
Earnings in INR crore

These 6 minerals together contributed about 95% of the total value of mineral production in December 2007.

India may impose cess on high ash content coal

It is reported that centre has proposed a cess on coal with high ash content. The cess would be 2% to 6% of the coal price, depending on the level of ash content in it. The government, through the cess, would fund growth of coal washeries across the country.

The revenue generated from the cess would be used to set up a national level coal fund for setting up infrastructure for coal washing, selective mining research and clean coal technologies. The move has the potential to raise INR 2,400 crore for the fund.

According to sources in the government, union environment ministry has sent the proposal for levying the cess to the finance ministry. The proposal is aimed at discouraging use of high ash content coal in industrial activities like power generation, cement manufacturing, brick and paper. The high ash content not only pollutes the atmosphere but also lowers the productivity of these industries and consumes more energy.

Ash content in coal in India is among the highest in the world. The levels are as high as 35% to 40% against a global average of less than 20%.

New mining policy to be debate in parliament

It is reported that India’s new mining policy, which was approved by the federal cabinet last week, is likely to be debated in parliament, followed by a legislative amendment to existing mining laws.

Indian government hopes to lure foreign and domestic investment in domestic mining sector. It also aims to shorten the time it takes for mining leases to be granted to about six months to a year, a process that can currently drag on for years.

Under the new guidelines, foreign and domestic firms should find it easier to invest in the exploration and mining of gold, diamonds and metals like copper and zinc, and prospecting companies will automatically obtain a mining license. Only 10% of India's land mass has been explored for its mineral wealth and industry officials feel that this is largely due to the mass of paper work involved.

The policy document said that "Prospecting and mining shall be recognized as independent activities with transferability of concessions playing a key role in mineral sector development." It added that while state firms would continue to work on exploration and survey of minerals, the government would in future give more encouragement to private sector investment. The policy also said that it would encourage exports of value added minerals.

But the policy is reported to be silent on demands from mineral rich states on royalty payments. The policy document outlines that "The revenues from minerals will be rationalized to ensure that the mineral bearing states get a fair share of the value of minerals extracted from their grounds."

Security beefed up at POSCO site in Orissa

IANS reported that Orissa government has beefed up security and clamped prohibitory order at the POSCO steel plant site. The order, which prohibits the assembly of four or more people, was issued on March 19th 2008 at Balitutha, where POSCO Pratirodh Sangram Samiti, plans to organize a massive rally of over 15,000 people on April 1st 2008 against the project.

Mr RK Sharma Superintendent of Police at Paradip district said that "It is a routine administrative measure we have taken to prevent any breach of peace."

Meanwhile, Mr Prasant Paikray spokesperson of POSCO Pratirodh Sangram Samiti said that "It is a deliberate attempt by the administration to foil the rally. We will hold the rally in a peaceful manner despite the prohibitory order. If the administration or police attack us they will be responsible for the consequences."

April 1st 2008 is observed as Orissa formation day and POSCO, with the help of the state government, is planning to hold a ground breaking ceremony at the port town of Paradip for its Greenfield steel plant.

Mr Ratan Tata to launch pickup trucks in Thai auto show

Thai media reported that Mr Ratan Tata chairman of TATA Group will fly to Bangkok on March 27th 2008 to launch the Indian pickup trucks at the Bangkok International Motor Show running from March 28th 2008 to April 6th 2008 at Bangkok International Trade and Exhibition Centre.

The launch of TATA Xenon pickup trucks, which are being made at a factory that opened earlier in 2008 in Samut Prakan province, will be Mr Tata's second launch event in 2008, after TATA Nano, the world's cheapest car, at the Delhi Auto Show.

Mr Tata has no plans to meet any local economic or political figures while in Bangkok. However, his presence at the vehicle launch in Bangkok could underscore TATA Motors Company's long term commitment to Thailand's automotive industry.

Mr Ajit Venkataraman CEO of TATA Motor Thai unit said that it is ready to enter the Thai market after conducting years of market research to study the requirements of Thai customers. He added that one of the more important factors for customers was a good balance between fuel economy and engine performance. In this regard, TATA Motors has used the latest common rail technology.

At the motor show in Bangkok, Tata Motors Thailand Co will unveil the Dicor engine with common rail diesel technology featuring variable turbine technology and an inter cooler system in the Xenon pickup truck. The Dicor engine comes with high power and torque, high durability, low fuel consumption and maintenance costs. The Dicor engine is an innovation developed under the concept of increasing the power and torque with lower fuel consumption and lower emissions. The latest common rail technology features a fuel system with 1,600 bar pressure along with actuator valves for constant pressure.

CIL to set up 28 coal washeries

It is reported that Coal India Limited is planning to invest INR 1,500 crore to set up 28 washeries in its subsidiaries during the 11th Plan period.

Mr PS. Bhattacharyya chairman of CIL told that "CIL has decided to set up 28 washeries in the first phase, which together will have a capacity of 97 million tonnes. It would require an investment of INR 1,500 crore.”

The washeries will be built and maintained by the companies for a charge.

CIL has already sent bid documents to subsidiaries which were in the process of identifying locations for setting up the washeries. Tenders inviting bids for setting up these washieries will be floated within 6 to 8 months and contracts will be awarded within 2008-09.

Three bidders short listed for Mumbai monorail project

It is reported that three bidders have been short listed by Mumbai Metropolitan Region Development Authority for its USD 1.6 billion monorail project in Mumbai.

The short listed consrtiums include

1) Scomi Engineering and Larsen & Tourbo
2) Hitachi Japan and Reliance Energy
3) Bombardier Transportation, Kalpataru Power Transmission, JMC and Intimin Transportation

The final bidder will be finalized by May 2008 and construction work on the project is likely to commence by June 2008. The project will be developed on build own and transfer basis for at least 30 years and will comprise 4 corridors stretching a total of 70 kilometer spanning across the city and suburbs.

Tuticorin port crosses handling target ahead of schedule

Exim News Service reported that Tuticorin Port has crossed the cargo handling target of 20.38 million tonnes set by union shipping ministry on March 14th 2008, sixteen days ahead of the end of the financial year 2007-08.

Allocation of more fertilizer to the port by government of India and the proactive policy on anchorage operation and trade facilitation measures have helped in routing more volume of cargo through the port.

Mr A Subbiah deputy chairman of Tuticorin Port said that thermal coal and containerized cargo registered steep increase during the financial year. He added that it is confident of achieving 21 million tonnes of cargo by the end of the financial year.

AP builders threaten to stop buying steel

BL reported that due to recent increase in price and introduction of e auction by Rashtriya Ispat Nigam Limited and other manufacturers, the Builders Association of India has threatened to bring construction activity to a standstill by stopping buying of steel.

The report cited Mr Vishnu Kumar Raju chairman of local chapter of BA described the increase as abnormal and unwarranted and regretted short supply of stocks to the long term contract dealers of Andhra region and showing interest to sell steel at higher price to outsiders. He announced that the all India council would chalk out its strategy soon to bring pressure for price regulation.

Another member of national council said that development would suffer due to irrational increase in the price and sought some sort of mechanism to control prices. He said the construction cost would also go up steeply due to the decision of the RINL and other steel manufacturers.

Dr YS Rajasekhara Reddy chief minister informed representatives of builders that he would write a letter to the centre explaining the need to control the rising prices of steel. Dr Reddy assured that the state government would make all efforts to arrest the rise in price of cement.

New mining policy to support steel investments in non iron ore rich states

The new mineral policy has removed the pre requisite of value addition within the state for companies applying for an iron ore mining lease and the move will benefit those steel companies that purchase raw material from the open market.

As per reports, the cabinet note on the national mineral policy stated that India is a single economic region and therefore any company cannot be denied a mining lease by a state government only because it proposes to set up a plant outside that particular state. The cabinet note also spelt a preference for value addition while allotting an iron ore mine and allows standalone mining only in a case where there is no application for value addition.

But the implementation of the policy is quite uncertain at the moment as recommendation for grant of a mining lease has to come from the state government.

Tayo Rolls to start operation of Jharkhand unit by 2008 end

It is reported that Tayo Rolls' forged rolls manufacturing facility at Adityapur Complex in Jharkhand is expected to go on stream by end of 2008.

For the proposed INR 142.5 crore project, Tayo Rolls has forged a technology tie up with Sheffield Forgemasters International of UK for technology transfer for manufacture of forging quality ingots, including round ingots, forged bars, engineering forgings and forged rolls.

TATA Steel and TATA Group companies hold 39% of the equity stake in Tayo Rolls while Yodogawa holds 10%. Sojitz Corporation has 2% of the equity stake in Tayo Rolls while the balance is held by the public.

CALS inks MoU with WBIDC for refinery project at Haldia

BS reported that CALS Refineries Limited has signed a MoU with the West Bengal Industrial Development Corporation and the Haldia Development Authority for an INR 20,000 crore refinery project in Haldia.

Mr Manabendra Guha Roy CEO of CALS Refineries said that the project will be completed in 3 phases. The first phase, involving an investment of INR 4,000 crore for a 5 million tonnes capacity project, will generate direct and indirect employment for 1,500 people. About 400 acres was readily available and the first phase would be commissioned by the first quarter of 2010. The second phase will create employment for another 1,500 people and will be commissioned by the end of 2010. While, the third phase will be a Greenfield project at Nayachar once the infrastructure is ready. There will be an investment of INR 12,000 crore and employment for 6,000 to 8,000 people will be generated. The final phase will be commissioned in 2013.

CALS has already spent around INR 360 crore towards payment of equipment, supply, basic engineering and initial project enabling work. Site activities will begin by April 2008 and shipments of equipment are expected to arrive in Haldia from July 2008. The current phase of the refinery will be implemented by transplanting the main process units and equipment from Bayernoil Refinery in Ingalstadtt of Germany and supplementary units from Petro Canada Refinery in Edmonton of Canada. The balance utilities and offsite facilities will be supplied and erected indigenously. The refinery process units are designed by process licensing companies such as UOP, Snamprogetti, Lurgi, Amoco and Foster Wheeler. All the licenses will be transferred to CALS to operate the Haldia plant.

Mr Buddhadeb Bhattacharjee chief minister of West Bengal said that the CALS Refineries investment is an important step for the state in the background of the proposed petroleum, chemical & petrochemical investment region project.

KRIBHCO to set up INR 4,000 crore power project in Bihar

It is reported that Gujarat based fertilizer cooperative major Krishak Bharati Co operative is planning to set up a 1,000 MW 51:49 JV project in Bihar in association with the Bihar State Electricity Board at an investment of INR 4,000 crore.

Discussions held between KRIBHCO and Bihar government on March 17th 2008 in Patna were mostly focused on sourcing raw materials for the power project. The state government plans to use some of its coal mines, which are now within the jurisdiction of the Jharkhand government to source coal. While a part of the output would go to Bihar, to be wheeled out through grid to be sold to other states, as in the case of the Chhattisgarh project.

Mr Chanderpal Singh Yadav chairman of KRIBHCO said that "It all depends on how the Bihar government helps us in setting up the plant, now that we have decided to go in for a second power venture. The Bihar cabinet will decide on our proposal."

Mr BD Sinha MD of KRIBHCO said that "All that I can say is that we are making efforts to move into power trading as part of our diversification plans. While the Chhattisgarh plans are on track, the Bihar effort is still at a nebulous stage. We have shown interest and the Bihar government is ready to support us." He added that around 1,000 acres will be required for setting up the power plant.

KRIBHCO’s first power 51:49 JV, a 1,000 MW project in association with the Chhattisgarh State Electricity Board, is also on track.

Gujarat to buy 3200 MW from private firms to meet demand

It is reported that Gujarat government has proposed to purchase 3,200 MW through the competitive bidding rate from private producers to meet the growing demand for power. Besides, the state government is setting up new power stations, ramping up capacity of the existing plants and improving the plant load factor.

The state’s present installed capacity is 9,000 MW while the unrestricted demand is 11,500 MW resulting in a deficit of 2500 MW. With the Jyotigram project consuming 16% of the state’s total electricity generation, the deficit is likely to increase in coming days. Also, with power consumption going up in summers, there is a concern regarding power supply.

A senior state government official said that "Between January and the first week of March 2008, there were 16 occasions when supply tripped. This has resulted in damages to electric appliances of farmers. The move will help us curb the problem."

The state government plans to add 11,164 MW by the end of 2012, taking the total installed capacity of the state to nearly 20,000 MW. During 2009, projects such as Dhuvaran CCPP having a capacity of 472 MW and Kutch Lignite Thermal Power Station unit IV with 75 MW will be set up by Gujarat State Electricity Company Limited.

Centre clears 20 SEZs in West Bengal

Mr Nirupam Sen commerce & industry minister of West Bengal told the state assembly that centre had cleared 20 special economic zones in the state and also agreed in principle to give the go ahead to 17 other SEZs.

Mr Sen added that during the current fiscal, union government had given the green signal to 86 other industrial projects with an investment of INR 2,28,039 crore.

He said 50% of the total land area in a particular SEZ would be used for processing units and 25% for creating related infrastructure facilities. The balance 25% would be used for other purposes. He informed that the state government would not follow any model rehabilitation package while acquiring land for various industrial projects.

He further added that "We will try our best to compensate and rehabilitate those whose lands would be acquired for any project. Attempts will also be made to ensure jobs for at least one person from each family, whose land would be taken over by our government."

Foundation stone soon for Bawana power project in New Delhi

Dr Manmohan Singh Prime Minister of India is scheduled to lay the foundation stone for the 3rd phase of 1,500 MW gas based project at Bawana in northwest Delhi on March 24th 2008. The project is estimated to cost INR 4,500 crore

Pragati Power Phase I consists of a 330 MW capacity station, which is commissioned in 2002-03. Phase II consists of a 750 MW gas based power station at Bamnauli. The construction activities for phase II are likely to begin by 2008-09 and are scheduled for commissioning by 2010.

The proposed project received clearance from union ministry of environment & forests.

Pragati Power Corporation has signed agreements with Bharat Petroleum Corporation, GAIL and Indian Oil Corporation for supply of 2 million standard cubic meters per day of gas each to fire the power station. The gas supply will be arranged by Petronet LNG.

Bhoruka Power signs PPA with UHBVN

BL reported that Bhoruka Power Corporation Limited has signed a power purchase agreement with Uttar Haryana Bijli Vitran Nigam to sell hydel power for 35 years.

By signing this agreement, Haryana government is moving towards fulfilling its mandate of purchasing 3% of the power generated from the environment friendly renewable energy sector.

The project at Western Yamuna Canal will be set up with an investment of INR 42 crore and an installed capacity of 6 MW. It is likely to be completed in the next 15 months.

Shyam Energy to contractor for WB hydro project in April

Projects Today reported that Shyam Energy Limited is likely to finalize the contractor for the electromechanical works at its 6 MW Chel II hydroelectric power project in West Bengal sometime in April 2008. At present, the tendering process for the project is under way.

Bids from contractors for the design, manufacturing, supply, erection, testing and commissioning were invited in August 2007 and around 6 entities responded to the tenders in January 2008. The proposed three 2 MW power projects will entail an investment of around INR 50 crore.

Shyam Energy has already signed a power purchase agreement with West Bengal State Electricity Board. Work on the project is likely to commence by June 2008 and full completion of the project is expected by 2009.

Shyam Energy is also planning to set up a 6 MW hydroelectric power plant at Garubathan in Darjeeling for which New Delhi based Dr Hutarew & Partner India is the consultant.

Committee set up to sort out issues of Mumbai Port Trust

Mr TR Baalu union minister of shipping, road transport & highways said that a standing committee comprising both chairman of Mumbai Port Trust and chief secretary of Maharashtra with their respective officers as members is being constituted to look into the various issues of Mumbai Port Trust vis a vis development of Mumbai city issue.

He added that the ministry proposes to issue the necessary notification after finalizing the terms of reference of the committee.

Global crude steel production in February 2008 up by 5.3% YoY

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute was 107 million tonnes in February 2008 up by 5.3% YoY as compared to February 2007.
As IISI’s recent release did not give J-F’07 revised figures all the YoY comparisons are made as per earlier figures of IISI, which undergo constant revisions

The growth in crude steel production during February 2007 among regions was again led by Asia as usual.

In ‘000 tonnes
Source – IISI

However, the moving annual total growth rate in February 2008 slowed from a peak in March 2007 of 10.8% to 6.2%. World MAT growth rate excluding China slowed from a peak of 6.1% in April 2007 to 2.9% in February 2008, down from 3% last month.

Top 20 nations

In ‘000 tonnes
Source – IISI

Iron ore price negotiations – Rio sees pellet hike as favorable

Rio Tinto Ltd, which is locked in tense iron ore price negotiations with Asian steel mills, said that recent sharp rise in iron pellet prices achieved by Vale would not go unnoticed.

Mr Gervase Greene spokesman of Rio iron ore division said "This result indicates just how strong the market is at the moment and not just for pellet prices but for iron ore products in general. It is a good indicator which will not go unnoticed."

Morgan Stanley in a client note said that "We believe most investors expected pellet price increases to be equal to or less than the 65% to 71% increase on iron ore fines announced in February, and this news could come as a surprise to the market.’

Vale announced on Wednesday that it secured an 86.67% increase in pellet prices for 2008 from Italian steelmaker Ilva as compared with a 65% to 71% hike negotiated recently for its non palletized iron ore. Vale said Ilva had agreed to pay USD 2.202 per unit for pellets shipped from Vale's port in Tubarao.

Stemcor acquires UK steel stockholder Barclay & Mathieson

World’s largest independent steel trader Stemcor announced that it has acquired 100% of the share capital of UK steel stockholder Barclay & Mathieson Limited.

Barclay & Mathieson is a general steel stockholder with 12 depots concentrated in the Midlands, North of England and Scotland. Through an associate company also acquired by Stemcor, Barclay & Mathieson offers processing services, general fabrication work and structural steelwork.

Mr Jim Walker managing director of Barclay & Mathieson will remain in place and oversee the change of ownership. Barclay & Mathieson’s existing management team will be retained.

Mr Ralph Oppenheimer chairman of Stemcor said that “Barclay & Mathieson is an established stockholder with a 130 year history and a solid reputation in the UK market. I believe that the business has strong prospects as part of Stemcor’s growing distribution and stockholding business.”

The acquisition strengthens Stemcor’s stockholding footprint in the UK and builds on last year’s purchase of Steel Plate & Sections Ltd.

Corus to raise engineering steel prices from May 2008

Corus announced that due to the continued strong growth in global steel demand, Corus Engineering Steels is currently experiencing significant increases in input costs as raw material and energy costs are rapidly escalating to unprecedented levels and as a result CES will be raising prices for Bright Bar sales in the UK.

It said that “With effect from May 1st 2008 base prices will be increased by a minimum of GBP 40 per tonne across the entire product range for all deliveries.”

The release added that as the global demand for steel continues to grow it is envisaged that availability will remain an issue over the coming months and therefore we anticipate further base price increases will be applied in Quarter 3.

US and Canadian steel inventories decline in February 2008

According to the latest Metals Activity Report from US based Metals Service Center Institute, steel inventories at metals service centers in the United States and Canada declined in February, the Metals Activity Report from the Metals Service Center Institute shows. US steel shipments were flat with year ago volume, while Canadian steel shipments rose 7.1% compared with those of February 2007.

Steel shipments from US metals service centers were flat, at 4.26 million tons, compared with year earlier volume and month end inventories declined to 12.09 million tons from nearly 12.20 million tons in January. Shipments of nearly 8.8 million tons for the year to date were down 1.4% YoY. US steel inventories at the end of February were 23.3% below year earlier totals and represented, at current shipping rates, a 2.8 month supply.

Canadian steel shipments rose by 7.1% YoY from February 2007 to 328,400 tons. Canadian steel inventories fell by 7.6% YoY to 1.14 million tons, equal to a 3.5 month supply at current shipping rates.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers

CSC production affected by BF accident

It is reported that Taiwan’s China Steel Corp has a spillage of molten steel because of an accident at its blast furnace 4.

According to understanding, China Steel Corp might need to spend at least one month to fix this problem and restart the processing later; therefore, this damage will cause the shortage of hot rolled steel products in the market.

However, the company claims that the accident did affect production, but it is not as serious as the news said. It will only cause some of thousand tons decrease on its steel output.

According to the news that China Steel Corp may ask Chung Hung Steel to help them doing the rolling process or to supply them some slab allocation, but so far both companies have no final decision yet.

(Sourced from YIEH.com)

EU average flat product prices up by 15% to 18% - MEPS

UK based MEPS said that flat product prices have been substantially affected by the tremendous raw material cost escalations announced in recent times and that the price demands from domestic producers shot up in the last few weeks.

MEPS said that “ArcelorMittal tabled a further EUR 40 per tonne hike for the second quarter, on top of the 12% to 15% we reported in our February issue and all the major producers are talking of even higher prices in the near future. With third country import offers comparatively scarce, buyers have nowhere else to go. The upward price trend is certainly not demand led. Customers, although initially sympathetic to the mills' needs to cover rising input costs, are becoming increasingly concerned at the imminent prospect of more expensive steel.”

MEPS said that “Many new construction proposals will be re evaluated in view of these significant steel price hikes. EU demand was expected to decline in this important consuming sector because of the credit crunch. The current steel pricing picture can only exacerbate the situation. The first of many building project cancellations was recently announced by Werder Bremen, the German football club. A plan to extend seating capacity at their ground has been scrapped because of high steel costs.” MEPS added that business levels are reasonable in Germany. Service centers are not overstocked at present, having reduced their inventories late last year. Buyers are trying to book as much material as possible because the mills intend to lift prices even more but producers are only accepting orders for reduced quantities. End-users are finding it difficult to come to terms with such huge rises.

MEPS said that “In France inventories at distributors and end users have been successfully adjusted and buyers need to re order. The second quarter increases are being passed on quite easily but there is a feeling the higher values will not last. Demand is still at a normal level.”

MEPS added that “Italian consumption is far from robust as the general economy is slow. There is a distinct lack of import offers at attractive prices. Local values are being driven by the cost of raw materials, energy and freight, enabling producers to push through a further round of significant increases during settlements for April shipments. These are reflected in our tables. Since then, Riva has opened its books for May at even more inflated figures. This has encouraged a sudden renewed interest in third country offers. Many customers are trying to survive on stocks, which are shrinking very quickly, as they suspect a price collapse may be just around the corner.”

MEPS said that “End user demand is reported to be steady by UK service centers but availability is fast becoming a problem, particularly for those who are not regular European mill customers. Stocks are probably on the low side. There is some concern that there might be an influx of third country steel in the third quarter as domestic prices soar but orders would need to be agreed quite soon for material to arrive by then. We have unconfirmed reports that Corus is considering a further EUR 50 per tonne hike.”

MEPS said that “Belgian companies, who have very little stock, are being told they will have to accept less tonnage than they require during period two. There are no import offers and none seem likely at present. End users are resisting service centre efforts to pass on the higher mill values.”

MEPS added that “Spanish demand is extremely weak. Poor construction activity is beginning to adversely affect distributors' sales. Inventories at the service centers are comfortable but below normal levels. Buyers have been forced to agree to substantial hikes in order to obtain second trimester material. Third country suppliers are out of the market completely.”

Formosa Plastics to invest USD 8 billion in Vietnam steel mill - Report

The Economic Daily News reported Formosa Plastics group is planning to invest USD 8 billion to build a steel mill in Vietnam with annual capacity of 15 million tonnes.

The News paper citing Mr Wang Wen yuan group chairman of Formosa Plastics as saying that five group members will participate in the Vietnam project
1. Formosa Plastics Corp
2. Nan Ya Plastics Corp
3. Formosa Petrochemical Corp
4. Formosa Chemicals & Fibre Corp
5. Formosa Heavy Industries Corp

The group ruled out the possibility of teaming up with China Steel Corp on the Vietnam project. It added that the group is still awaiting government approval to set up a steel mill in Yunlin County in central Taiwan.

Mr Wang said the Yunlin steel mill may require investment of over TWD 200 billion higher than the original estimate of TWD 137.3 billion due to a rise in raw material prices.

Hyundai Steel purchases H1 scrap from US

South Korea’s Hyundai Steel has purchased H1 scrap from American’s Schnitzer Steel Industries Inc, Pacific Coast Regional Corporation and Sims group.

As per report the price is around USD 579 per tonne C&F and delivery on May, the price is about USD 84 per tonne higher compare to their previous purchase.

Hyundai Steel purchased 30,000 tonnes scrap from Schnitzer Steel Industries, which include 20,000 to 25,000 tonnes of shredded scrap and the rest is heavy melting scrap. On the other side, they purchased 35,000 to 40,000 tonnes scrap from Pacific Coast Regional Corporation, which included 10,000 to 12,000 tonnes of bushelings, 4,500 of No.2 bundle scraps, 10,000 tonne shredded scraps and 10,000 heavy melting scraps.

(Sourced from YIEH.com)

SDI orders for 3 zinc coating mass control systems

It is reported that Steel Dynamics Inc has placed an order with Industrial Automation Services to design, supply and commission three zinc coating mass control systems. Two systems will be delivered to the Butler Indiana plant in the USA and the third to the Jeffersonville plant.

Engineering for the three systems will be executed in parallel with commissioning of the Butler systems occurring first. For control of the zinc coating, Industrial Automation Services will install the system, which utilizes a proven physics-based coating mass model to generate accurate references and control the knife to strip distances and stripping gas pressure.

During order transitions, advanced signal processing algorithms enable the controls to estimate coating thickness during order transitions within one coating gauge scan. Resulting control actions minimize the generation of out of spec material and the minimized coating standard deviation allows for zinc savings and a typical return on investment within a few months.

The open architecture control system incorporates Industrial Automation Services's graphical programming interface, and takes advantage of Industrial Automation Services's considerable process know how and local support. The new control system will operate in concert with existing Sentek coating gauges to provide improved strip coating performance. Industrial Automation Services will execute engineering design, project management, installation assistance, commissioning and operator/maintenance training from IAS's offices in Pittsburgh, USA and Newcastle, NSW, Australia.

Saarland to examine RAG's plans to resume mining

Frankfurter Allgemeine reported that the German state of Saarland will examine RAG Deutsche Steinkohle AG's plans to continue mining in the German state of Saarland until 2012 at reduced capacity.

Frankfurter Allgemeine cited Mr Peter Mueller state's premier as saying that at the end of February, Saarland issued a complete halt to coal mining after an earthquake induced by mining activities led to severe damage to buildings in the region. Mr Mueller said the state will only grant approval of RAG's plans if threats to workers as well as residents in the area can be ruled out.

A February earthquake in Saarland saw a halt to coal mining in the German state, with some speculating that the operations would be abandoned altogether.

RAG last weekend said that it will continue mining in the German state of Saarland for another four years, but will shut two of its mines in the region. According to a statement from RAG, the German miner will shut its Primsmulde mine as well as operations on the Schwalbache seam near Ensdorf, as threats to life and limb could not be ruled out at these sites. Operations at RAG's other projects in the region, on the Grangeleisen and Wahlscheid seams, will resume as soon as possible. According to the statement the supervisory board will meet again in early April to discuss plans to exit coal mining in Saarland in 2012.

RAG operates Germany's eight remaining hard coal mines. The sudden halt to hard coal mining has affected German utilities RWE AG and EON AG that operate several hard coal fired power plants in Germany.

The closure of Germany's underground coal mines is expected to increase the country's reliance on imported coal for its power stations. Germany imports around 40 million tonnes per year of steam coal, a figure which is expected to grow to between 48 million and 56 million tonnes per year by 2020.

Argentinan Aceros Zapla to invest USD 50 million

BNamericas reported that Argentine steel company Aceros Zapla, located in Jujuy province is wrapping up a USD 50 million investment plan that will allow it to optimize operations.

Mr Alfredo Hoyos union leader of Zapla told BNamericas that "A new electric furnace and a continuous caster have already been installed and a new rolling train is on the way. With the investments, we can stop worrying about the company's situation and we are encouraged by these concrete investments.”

Mr Sergio Taselli president of Zapla said that installation of the equipment is part of an investment plan that Zapla announced in September 2005, which will double specialty steel production.

Its current output is nearly 5,000 tonne per month.

Maritza Iztok reports record production of lignite coal

It is reported that Bulgaria's Maritza Iztok record a high yield of 5.453 million tonnes of lignite coal for the first quarter of 2008.

As per report the mine complex in southeastern Bulgaria produced a total of 5.453 million tonnes of coal until March 16, which is about 7% above the plans.

Maritza Iztok also reports record high yield for 2007 as 23.928 million tonnes of coal were produced, exceeding the plan by 2.578 million tonnes.

In 2008, the mine, which provides the coal for Bulgaria's major thermal power plant complex Maritza Iztok, plans to produce 23.1 million tonnes of lignite coal.

Hyundai chief renews bid for Hyundai Engineering

Yonhap reported that the chairwoman of South Korea's Hyundai Group renewed her strong determination to take over its former affiliate Hyundai Engineering and Construction Co saying the group would buy a controlling stake in the builder whatever it costs.

Ms Hyun Jeong eun told reporters that "Let me clarify again that Hyundai Group will acquire Hyunda Engineering whatever it costs.”

As per report nine creditors, including Korea Exchange Bank are planning to sell a 49.7% stake in Hyundai Engineering, which has a market value of some USD 10 billion by the end of 2008.

CSC ratings unaffected by Dragon transaction

Taiwan Ratings Corp, a unit of Standard & Poor's, said that China Steel Corp's 'twAAA' long term corporate credit rating and 'twA-1+' short term credit rating will not be affected by the steel maker’s purchase of the outstanding shares in its Dragon Steel Corp unit.

The rating agency said as China Steel will issue new equity to complete the acquisition it does not expect the action to have a negative impact on the company's financial risk profile.

China Steel and its subsidiaries own a 69% stake in Dragon Steel.

Rio Tinto not to proceed with purchase of Broughton Coal

Australian coal seam gas producer Eastern Corp Ltd said that the sale of one of its coal mining subsidiaries to Rio Tinto owned Rio Tinto Coal Australia will not proceed.

Eastern Corp in a statement said that Rio Tinto Coal Australia, which had signed a memorandum of understanding to buy Broughton Coal Mining Ltd. for AUD 10 million in January, has advised it will not proceed with the purchase.

The company said “It is commencing preliminary discussions with another potential buyer of Broughton and is also considering a short term fund raising through the issue of a convertible note.”

Lundin announces a net loss of USD 436.3 million in Q4

Lundin Mining Corporation reported an unaudited net loss of USD 436.6 million in Q4 of 2007. The unaudited net loss is after non cash impairment charges of USD 491.9 million relating to its merger with EuroZinc and the acquisition of Rio Narcea.

Lundin Mining in a statement said that it unaudited earnings, before impairment charges and income taxes, remain unchanged from the recent preliminary release. Excluding one time non cash impairment charges, unaudited earnings after income taxes were USD 55.3 million for the Q4 of 2007.

As previously reported, sales revenue in the Q4 of 2007 was USD 253.1 million up by 7.2% YoY as increased copper and nickel sales from the Neves-Corvo and the Aguablanca mines were partially offset by lower zinc volumes and prices. Included in the current quarter was USD 56.9 million of pricing adjustments relating to final pricing of third quarter sales as well as year end price adjustments based on the forward metal price curve. Sales of copper now represent over fifty percent of the Company's revenue.

Net earnings after income taxes but before impairment charges for the Q4 2007 were USD 6.9 million below the corresponding period in 2006 as a result of higher income tax expense in 2007. Increased sales were offset by the effect of lower zinc prices and higher costs resulting from the strength of the Euro. Approximately 75% of operating costs are based in Euro.

Mr Phil Wright president & CEO of Lundin Mining said that "These are large one off adjustments and relate primarily to changes in metal prices and exchange rates that have occurred since the EuroZinc and Rio Narcea transactions were undertaken. These items are non cash and will have the effect of marginally increasing future earnings as a result of reducing future amortization.”

Lundin Mining Corporation is a rapidly growing, diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland. The Company currently has six mines in operation producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes the world class Tenke Fungurume copper-cobalt project in the Democratic Republic of Congo and the Ozernoe zinc project in Russia.

ArcelorMittal USA hikes steel plate by USD 100 per ton

Purchasing.com reported that Mr H Shelby Pixley CEO of ArcelorMittal USA Plate alerted customers this week of plans to boost the price of all carbon steel plate by USD 100 per ton and alloy steel plate by USD 140 per ton in May 2008.

Mr Pixley said that “The strong domestic and global demand for plate products accompanied by increasing raw material costs.”

As per report, this month’s sales price average for cut steel plate is USD 915 per ton.

Linde to unveil CARBOJET® at the TUBE 2008 fair in Germany

The Gases Division of The Linde Group today announced that it will launch a new version of its CARBOJET® solution at TUBE 2008 at Dusseldorf in Germany. With high speed gas injection, CARBOJET® makes it possible to alter the furnace atmosphere and create gas circulation, which improves convection and increases both the heat and carbon transfer rates. The patented CARBOJET® high speed nozzles utilize only 1 cubic meter of gas to alter 30 cubic meter of furnace atmosphere. Companies like Sennestahl GmbH in Bielefeld, Germany have achieved remarkable cost savings with CARBOJET®.

CARBOJET® can eliminate a major disadvantage of regular furnaces, because the solution enables a stable atmosphere in furnaces that have no ventilators. It consists of one or several CARBOJET® high speed nozzles with piping and flow train. The number of nozzles corresponds to the furnace size and existing gas consumption. Gas flows can be controlled manually or through a CARBOFLEX® atmosphere control system. As a result, tailor made solutions provide better quality of products and increase productivity through faster carburisation processes.

CARBOJET® technology can be used in various heat treatment processes (annealing, carburising, carbonitriding etc.) and has proven to be a success in roller hearth, belt, rotary retort, and pit furnaces. Since the first CARBOJET® solution was developed three years ago, Linde Gas has implemented over 20 installations at 15 European heat treatment companies. These include some leading tube manufacturers who have been able to anneal steel tubes with higher and more homogeneous quality after the installation of CARBOJET®.

Mr Sami Ahonen product manager of the Heat Treatment Department of Linde Gas said that “With CARBOJET® we are able to offer a unique solution to the market that differentiates us from competing gas companies or furnace manufacturers. We are proud of the high satisfaction expressed by our clients with Linde’s new heat treatment solution.”

ArcelorMittal Dofasco and steelworkers forge new relationship

A new chapter in steel sector labor relations is unfolding this week between the United Steelworkers and ArcelorMittal Dofasco.

Mr Wayne Fraser director of United Steelworkers Ontario/Atlantic said that a new understanding with the company in Hamilton is enabling employees to discuss opportunities offered by USW collective bargaining. Mr Fraser said that "Dofasco employees will have the space to interact with the union, to talk openly with USW representatives without opposition from ArcelorMittal. If there is support for moving forward, they will then be able to democratically elect a bargaining committee and negotiate with the company.”

He added that "We are confident that can result in a tentative contract. If it does, employees will then vote on being represented by the Steelworkers under the terms of the contract. This initiative is rooted in our union's firmly established collective bargaining relations with ArcelorMittal across Canada and the US."

Mr Fraser said the USW and ArcelorMittal have developed a successful global relationship built on extensive collective bargaining and mutual respect. He said that "The USW represents workers at almost every ArcelorMittal facility in North America. That relationship is an important way to deal with the challenges of the changing global steel industry. ArcelorMittal Dofasco employees now have an open opportunity to choose to be part of that relationship. This process is open, inclusive and democratic. Over the next few weeks we will hear from as many employees as possible about what they want to see protected and what they want to see enhanced at work."

Mr Fraser said the USW will ensure traditional democratic labor rights exist in any eventual collective agreement with ArcelorMittal Dofasco. At this point, the process has no firm completion date but that the next few weeks will be important. He said that "Our union is soon starting important collective bargaining with ArcelorMittal in other locations. We believe we can chart a path for a made in Hamilton collective agreement with our overall relationship with the company as a strong foundation. But it will be up to Dofasco employees, at every step of the way."

Grupo Mexico and miner union closer to ending strike

Reuters reported that Mexican miner Grupo Mexico and the national miners union moved closer to resolving a long running strike at the giant Cananea copper pit after the two sides sat down for new talks on Wednesday.

The labor ministry called the union and the company to the negotiating table for the second time in two weeks to end the dispute, which began last July when workers laid down tools at Cananea over health and safety concerns.

Both sides said that discussions were moving forward.

Mr Carlos Pavon union official after a two hour meeting with company lawyers and government mediators said that "We are seriously trying to resolve this conflict and the most important thing now is that we are both sitting at the table.”

The miners say thick piles of dust and disconnected ventilators at the mine are a major health hazard, but the company says the problems have been fixed.

Grupo Mexico said that it will not pay miners the back wages they want for the seven month long strike, but are willing to give workers cash to come back to their jobs.

Mr Salvador Rocha a lawyer for Grupo Mexico said that "We still have some important economic differences but we will continue to work towards an amicable solution.”

Oil demand to reach 94.3 million barrels a day by 2012 - IEA

The International Energy Agency, an adviser to 27 industrialized nations, expects worldwide demand for oil products to increase an average 1.9% annually until 2012, driven mainly by expansion in Asia and the Middle East.

Mr Eduardo Lopez an analyst with the agency in a presentation to the Oil Africa 2008 conference in Cape Town said that ''Demand is projected to grow to almost 94.3 million barrels a day by 2012. By 2012, demand will be a third higher than in 1996.''

Demand for oil increased by 2% between 2002 and 2007 as global growth accelerated and China's economy became increasingly industrialized. It added that crude oil for April delivery touched USD 111.80 a barrel in London today, the highest since trading began in 1983.

Mr Simon Radcliffe chairman of the Association for the Study of Peak Oil in South Africa told the conference that oil prices are likely to continue rising, as easily accessible resources becomes depleted. He added that ''An oil crisis is highly likely within the next few years. There are currently no scalable alternatives in the short to medium term.''

Japan automobile body sees steady vehicle demand in 2008-9

Japan Automobile Manufacturers Association projected the country's demand for passenger cars and commercial vehicles to hold steady in fiscal year 2008-2009.

The association in a statement said that Japan's total car demand in fiscal 2008 will be 5,306,100 units, down by 0.6% YoY from fiscal 2007, JAMA and crude oil prices are expected to stay high this year and will likely impact sales of commercial vehicles. The breakdown of 5,306,100 units is: passenger cars 4,425,000 units, up by 0.4% YoY, trucks 866,000 units, down by 5.3% YoY and buses 15,100 units, down by 1.9% YoY.

For January to December 2008, the association projected domestic automobile demand to be 5,319,400 units, down by 1.2% YoY.

Regarding the recent currency fluctuations, Mr Fujio Cho chairman of Japan Automobile Manufacturers Association said that automakers see little impact for the current financial year, as each automaker had set currency conversion rates in advance. He added that “But if this continues into the next financial year, it will have an impact on automakers.”

He said that "There are two sides. The positive aspect of the stronger yen is it makes crude oil and [imported] raw materials cheaper. But negative impacts are far bigger.”

Mincor increases nickel resource estimate for Durkin

Platts reported that Australian nickel producer Mincor Resources has upgraded the resource estimate for its wholly owned Durkin Deeps nickel project in the Kambalda region of Western Australia by 42%.

The project is now estimated to have 18,800 tonnes of contained nickel, versus the original 13,200 tonnes estimate.

Mincor said that Durkin Deeps is one of three key nickel assets in Kambalda acquired by Mincor as part of Mincor's AUD 68.5 million acquisition of Goldfields Mine Management last year. The nearby Otter Juan is already in production, while the McMahon project is being developed as a new AUD 23 million mining operation.

Antam expects shareholder approval for Herald acquisition

Thomson Financial reported that Indonesia's state gold and nickel miner PT Antam will hold a shareholder meeting on April 18 to seek approval for its proposed acquisition of Australian base metals miner Herald Resources.

If shareholders reject the plan, Antam is not allowed to hold another meeting for the same purpose for the following 12 months.

On January 30th 2008, a consortium of Antam and Shenzhen Zhongjin Lingnan Nonfemet Co Ltd of China submitted a cash offer of AUD 2.5 per share for the entire issued capital of Herald Resources. Herald's board of directors have unanimously recommended that in the absence of a superior bid, shareholders accept the offer from the Antam Shenzhen consortium through their joint venture Tango Mining Pte Ltd.

The offer trumped a previous bid by coal giant PT Bumi Resources of AUD 2.25 a share. Bumi has extended the offer period to submit a counter bid to April 4 from March 14th 2008.

Vietnam to further reduce coal exports

Vietnam has raised its export price of coal to China by 40%, which has made China under pressure. The main reason is because global coal supply becomes very tight and especially the strong demand from Vietnam

Moreover, Vietnam decided to supply domestic market for first priority and reduce its exports gradually. The total quantity of coal in Vietnam reached some 30 billion tonnes and it ranked the first biggest producer in South East Asia.

Vietnam’s main coal export markets were China, South Korea and Japan, accounting around 90% in total.

(Sourced from YIEH.com)

Eramet Marietta fined by OSHA

Platts reported that French owned ferroalloys maker Eramet Marietta is undecided if it will contest a USD 28,800 fine levied by the US Occupational Safety and Health Administration following an investigation into the fatal fall of an employee at Eramet's manganese ferroalloys plant in Ohio.

A spokeswoman of Eramet said that the US agency's Ohio office issued a safety citation against Eramet in the wake of the January 4 accident in which a 52 year old electrician died after falling from a 30 foot ladder while doing a routine plant inspection.

She said that “Though the citation was not directly related to the death, we obviously appreciate any recommendations that Occupational Safety and Health Administration might make to help us have a safer workplace. We always practice a zero tolerance policy for safety violations.”

She added that "Even before the citation was issued we abated and addressed most of the concerns outlined by Occupational Safety and Health Administration. Obviously, we knew the citation was coming.”

Eramet Marietta has 15 working days to contest the fine.

Erdemir to build second pellet plant

Turkish largest steel maker Erdemir has announced to build up the second pellet plant at Hasancelebi in Malatya province.

The total investment value will be USD 350 million and Erdemir will initially invest USD 72 million in 2008. The new plant is capable of producing 2 million tonnes of pellets per year.

This construction project will start in the second quarter of 2008 and they expect the plant will able to run for processing in the second quarter of 2010.

Currently Erdemir Group has 14 iron ore mining areas and one manganese mining area, which is the largest pellet producer in Turkey. The total iron ore reserve in Hasancelebi is about 885 million tonnes and it contained over than 23% of iron, the total minable time will be 75 years.

Turkey’s scrap prices in upward trends

It is reported that Turkish domestic and import prices of scrap are continuously increasing as the demand for scrap remains very strong and the recent purchase prices of scrap have been staying at record levels.

Currently, the price of mixed scrap number 1 and number 2 from the US is at CFR USD 523 per tonne and the price is around USD 533 per tonne for P&S scrap.

Besides, the price for A3 scrap of Black Sea to Turkey has hit CFR USD 550 per tonne, but Turkey’s mills said that they can only accept price between CFR USD 523 to USD 530 per tonne.

Stroytransgaz to build 2nd gas refinery in Syria by 2010

RIA Novosti reported that Russian engineering & construction company Stroytransgaz is planning to build a second gas refinery in north central Syria by 2010.

Stroytransgaz, which is partly owned by Russian energy giant Gazprom and builds oil and gas facilities in 15 countries, launched preparation work for the processing plant with designed annual capacity of 1.3 billion cubic meters last fall.

Stroytransgaz is already building a gas processing plant in Syria with capacity of 2.5 billion cubic meters at an estimated cost of USD 210 million, expected to come on stream in January 2009.

Revised tenders submitted to RTA for tram project in Dubai

Emirates Business 24/7 reported that companies bidding for the first phase of the Al Sufouh tram system in Dubai have submitted revised price structures to the Roads & Transport Authority in Dubai. As per report, the changes follow a decision to move the scheme's depot underground, allowing the developer to create real estate properties on the street level following the completion of the project.

It may be noted that commercial prices for the estimated AED 2 billion Al Sufouh tram system were opened in January 2008 and the lowest bidder was France's Alstom along with Belgian Bel Hasa Six Construct, followed by Germany's Siemens with Australia's Gulf Leighton and the local Al Habtoor Engineering Enterprises.

The 15 kilometer long tram lines will be connected to the Dubai Metro Red Line at three points and will run along Al Sufouh Road. The network will cover a route from Dubai Marina and Jumeirah Beach Residences via Dubai Media City and Knowledge Village to Madinat Jumeirah, Mall of the Emirates and Burj Al Arab. Capacity of the tram line will be 5,200 passengers per hour in each direction.

Some 19 stations, including three interchange stations with the Red Line of the Dubai Metro at Mall of the Emirates, Dubai Marina and Jumeirah Lake Towers, are being planned. The tram network will also eventually connect to the Jumeirah Palm Mono Rail. The first phase of the system will start operating with the Dubai Metro system in September 2009. Construction work on the project was originally scheduled to start in January 2008.

UK based MVA Consultancy, also involved with the Dubai Metro project, recommended the tram service as part of a transport study for the Al Sufouh area. More than half a million people are expected to benefit once it is up and running. The RTA had in June 2007 said it would spend at least AED 75 billion over the next 5 years building Dubai's infrastructure.

UAE plans to achieve 5 MBPD oil capacity by 2014

UAE National Media Council, in its 2008 Yearbook, said that UAE is pushing ahead with mega projects to lift its oil capacity above 5 million barrels per day within 6 years and maintain its position as one of the world’s top crude suppliers.

Citing official oil statistics, the Yearbook estimated that UAE’s present crude production capacity at around 2.9 million barrels per day. It said "The UAE has plans to raise its oil production capacity to 3.5 million barrels per day by 2009 and to more than 5 million barrels per day by 2014. A large part of the increase would come from Umm Shaif and Upper and Lower Zakum fields."

The Yearbook gave no figures on investments but independent industry sources put spending on the hydrocarbon sector at more than AED 36.7 billion in the next 5 years. Investments have exceeded USD 15 billion over the past decade.

UAE’s proven oil reserves stood at 97.8 billion barrels at the end of 2007, including 92 billion in Abu Dhabi. Its gas resources were estimated at 6.5 trillion cubic meters, the fifth largest after Russia, Iran, Qatar and Saudi Arabia.

CNMC subsidiary to construct aluminum facility in Iran

China Nonferrous Metal Industry's Foreign Engineering and Construction Company Ltd announced that it has entered a construction contract worth EUR 327 million with Sabzevar Pars Sarbedaran Aluminum Ind Complex in Iran.

According to the agreement, NFC will take charge of design, major equipment supply, construction, equipment installation and training for an aluminum smelter for Sabzevar which will have an annual production capacity of 110,000 tonnes. Construction will take around 36 months.

About 30% of the required investment for the project will come from Sabzevar, while the rest will come from bank loans and raised funds. However, NFC said there is uncertainty surrounding the project due to current international tension surrounding Iran's nuclear ambitions.

NFC, the Shenzhen listed subsidiary of leading state-owned overseas mining enterprise China Nonferrous Metal Mining Group has various domestic and overseas projects, including the Baiyinnao'er Lead and Zinc Mine project in Inner Mongolia Autonomous Region and an aluminum complex at Jizan Province in Saudi Arabia.

Qatar’s per capita income more than the US – Report

Experts from UAE, while addressing at The 8th International Arab Iron & Steel Conference, said that, at USD 67,000, Qatar’s per capita income is much more than that of the US, which is only USD 47,000.

According to Mr Hassan Sh’ash’a from the Emirates Steel Industry, the combined GDP of the GCC countries, which stood at USD 340 billion in 2002, reached USD 800 billion by 2007 and is set to reach USD 912 billion by 2008 end.

Mr Sh’ash’a said that as oil prices keep soaring in the global markets, oil producing countries are expected to earn an astronomical USD 2.1 trillion in 2008. And close to one third of this massive wealth will come to the GCC states.

But he lamented that despite higher revenues, the GCC states were not spending much on infrastructure development. China, whose gross domestic product is USD 4 trillion, is spending around 25% of its GDP on infrastructure development. The ratio is much less in the GCC countries. He also said that some 70% of the surplus generated in the region every year was invested overseas.

GCC accounted for barely 0.6% of the annual world steel production. The booming construction sector is the main consumer of steel. As countries get richer steel consumption goes up. But when they are developed, the consumption comes down.

Saudi Arabia’s GDP is currently at USD 376 billion, followed by the UAE with USD 189 billion, Kuwait with USD 114 billion and Qatar with USD 63 billion. The UAE is witnessing the fastest growth in the non oil sector in the region and its GDP is expected to soar to USD 208 billion by 2008 end.

Ducab net sales in 2007 up by more than 50% YoY

Leading power cable manufacturer Ducab has announced its sale turnover results for the year ending 2007.

With the first half of 2007 breaking all time record total sales at AED 1.1 billion, the year ended with a strong result of AED 2.4 billion, an increase in excess of 50% YoY as compared to 2006.

Turkey now closer to its first nuclear power plant – Report

Today's Zaman reported that the process has started for the establishment of nuclear power plants in Turkey, with bylaws establishing the rules and conditions governing competitors in plant construction, facility operation and the sale of energy generated published in the Official Gazette recently.

The regulations were drafted by officials from the ministry of energy & natural resources in accordance with the opinions of the council of state. The regulations noted that a tender will be held in 3 months' time to select a company for the construction of a nuclear power plant with a capacity of 4,000 MW with a standard deviation of +/-25% being acceptable by December 31st 2020.

According to the regulations, any company that seeks to participate in the tender to construct a nuclear power plant in Turkey will have to be experienced in the field or establish partnerships with domestic or foreign companies that already have experience in nuclear energy.

The ministry is expected to begin the tender process next week, with a June deadline set for applications. However, the ministry still retains the option to extend the time period if it deems it necessary. Every company will be asked to submit a bid bond of at least TRL 30 million to be eligible to compete in the tender, with the successful bidder required to present a minimum TRL 200 million performance bond.

The Turkish Electricity Trading & Contracting Co Inc will accept the bids, after which the Turkish Atomic Energy Agency will conduct an inspection to ascertain if the applicants meet the necessary technical and financial requirements. Turkish Electricity will select one company among the bidders and will submit the name of this company to the cabinet for approval. The ministry will assign the winning company suitable land free of charge. In addition to this, the company will also be given a guarantee that the state will purchase electricity from it until 2031 at a specified minimum price to prevent operating losses.

IPIC inks MoU with Borealis for chemicals city in Abu Dhabi

UAE news agency WAM reported that International Petroleum Investment Company has signed a MoU with Austrian subsidiary Borealis to develop a chemicals complex in the United Arab Emirates.

As per report, the multi billion dollar project to build a chemicals industrial city will be located in the emirate of Abu Dhabi. The complex will include cracking and reforming units to process petrochemical feedstock naphtha. Upon completion of the first phase of the project in 2013, the complex will be the largest of its kind in the world.

IPIC owns 65% of Borealis, while Austria's OMV owns the remaining 35%. Borealis is a JV partner with Abu Dhabi National Oil Company in UAE based petrochemical producer Borouge.

CISA forecasts 23% YoY drop in Chinese steel exports in 2008

Mr Luo Bingsheng executive vice chairman of the China Iron and Steel Association said that China's steel exports are expected to fall to 48 million tonnes in 2008.

Mr Luo said at a conference said that the government's measures to curb steel shipments overseas will have an impact this year and may lead to further rise in steel prices. He said higher iron ore costs and the yuan's appreciation will also contribute to lower steel exports in 2008.

Mr Luo added that Chinese domestic consumption growth of crude steel is seen at 11% in 2008 down by 0.8 as compared to 2007 level.

China's steel exports in 2007 stood at 62.65 million tonnes up by 45.67% YoY.

Baosteel raises steel product prices for May 2008

Baosteel has announced its price change details for May productions, with prices of HRC and CRC raised by CNY 300 per tonne and CNY 400 per tonne respectively a hike of 6% and 7% from April prices unveiled on February 25th 2008.

All price changes listed below are EXCLUSIVE of 17% VAT except specified otherwise and will come into force as of the date of issuance.

1. Slab
(a) Slab for die steel making: May prices up by CNY 500 per tonne from April level. Besides, P20, 718, B20, B20H, BPD25, B30M, B30H, B30PH and B40 are subject to extra surcharge of CNY 500 per tonne.
(b) Other slabs: prices remain unchanged.

2. Wired Rod:
(a) Common Carbon Cold Heading Steel, Low carbon Wire Rod: May prices up by CNY 600 per tonne from April level
(b) Steel Cord Wire Rod: May prices up by CNY 400 per tonne from April level
(c) Ultra low carbon Wire Rod: May prices up by CNY 400 per tonne from April level
(d) Alloy Cold Heading Steel Wire Rod: May prices up by CNY 500 per tonne from April level

3. HRC SPHC : May prices up by CNY 300 per tonne from April level.

4. HRPO SPHC DD11: May prices up by CNY 300 per tonne from April level.

5. CRC SPCC, BLC, DC01(ST12): May prices up by CNY 400 per tonne from April level.

6. CR Full Hard: May prices up by CNY 300 per tonne from April level.

7. HDG DC51D+Z/ZF(St01Z/ZF, St02Z/ZF, St03Z/ZF), DD51+Z/ZF, HR340LAD+Z(HSA340ZR), HR420LAD+Z(HSA410ZR): May prices up by CNY 300 per tonne from April level.

8. EG and Fingerprint-proof EG
(a) SECC, BLCE+Z: May prices up by CNY 200 per tonne from April level.
(b) Besides, fingerprint-proof EG is subject to extra surcharge of CNY 100 per tonne

9. Color Coated Steel, May prices up by CNY 200 per tonne from April level.

(Sourced from MySteel.net)

Chinese plate export price cross USD 1000 per tonne FOB mark

It is reported that Chinese steel makers have increased steel plate export price again on better overseas demand and the latest transaction price has exceeded USD 1000 per tonne on FOB basis.

As per report, export offer for commodity grade 15mm to 40mm plate has jumped to USD 1020 per tonne to USD 1030 per tonne FOB up by of USD 50 per tonne to USD 60 per tonne from early last week.

Tianjin Steel told Mysteel that it has been fully booked for April production and base price averages at USD 970 per tonne to USD 980 per tonne FOB. It normally sets unified export price every month while some steel mills just negotiate business case by case. In order to keep up with market pace, it has decided to wait for 2 to 3 weeks before setting quotations for May production.

(Sourced from MySteel.net)

Chinese crude steel production in February up by 7.7% YoY

According to recent statistics, China’s production of crude steel in February amounted to some 38.88 million tonnes up by 7% YoY and the figure was down by 4.1% MoM.

As per statistics the production of pig iron in February was at 37.54 million tonnes down by 10.1% YoY and down by 2.8% MoM.

Besides, the production of hot rolled coils and hot rolled strip are at 5.832 million tonnes and 3.108 million up by 36.9% YoY 1.9% YoY respectively. China produced 2.8 million tonnes of medium plate up by 1.4% YoY.

Shanxi coke price breaks CNY 2000 per tonne mark

It is reported that Shanxi coke producers have succeeded in increasing the EXW price in the range of CNY 100 per tonne to CNY 200 per tonne in March 2008 on back of escalating raw materials prices and tight supply, with the first grade metallurgical coke price already break over CNY 2000 per tonne.

Baosteel said its purchase price for Shanxi quasi first grade metallurgical coke has already reached CNY 1900 per tonne in February up by CNY 200 per tonne from the year start. Shougang also sees CNY 130 per tonne increase on its purchase price for Shanxi coke.

The spiking coking coal price has squeezed out the profit of coke producers significantly. Moreover, leading producers have stepped up thermal coal production in response to Beijing's encouragement. The reduced coking coal supply has further boosted the market price.

Market analysts predict that the coking coal production would stabilize in the months ahead, and the coke price would also settle down by then.

(Sourced from MySteel.net)

Chinese HDG export price remain stable

It is reported that HDG coil price keep stable in Chinese domestic market and this is also the case with export quotations.

Export offer for 1.0mm HDG is still at USD 950 per tonne to USD 960 per tonne FOB up, flat with last week. The export tonnages have seen evident increase than last two months. Wuhan Steel has been fully booked for June and July shipments and average base price is at USD 955 per tonne FOB.

The upward trend is going to continue in the next two months. Today Baosteel has announced to advance its ex works price for HDG by CNY 300 per tonne, CRC by CNY 400 per tonne and re rolling grade HRC by CNY 300 per tonne for May shipments.

Mysteel said Chinese domestic HDG prices would be stimulated to go up again and the export offers would follow step soon.

(Sourced from MySteel.net)

Benxi Iron and Steel increases flat product prices for April 2008

China’s Benxi Iron and Steel has announced following price increases for April 2008

1. HRC price up by CNY 500 per tonne,
Now Q235 HRC is priced at CNY 4,900 per tonne

2. CRC price up by CNY 600 per tonne.
Now Q195 CRC is at CNY 5,670 per tonne

3. HDG price up by CNY 700 per tonne
Now ST001Z HDG is at CNY 5,850 per tonne

4. PPGI price rose by CNY 800 per tonne.
Now TDC51D PPGI is at CNY 7,100 per tonne.

Chinese coal output in 2007 grows by 8.2% YoY

According to the news from China Administration of Work Safety China's coal output reached 2.523 billion tonnes in 2007 up by 8.2% YoY as compared to 2006.

However, of the total coal output, the output of small sized coal mines went down by 7% YoY as compared to 2006.

According to the analysis of the Economic Situation of China's Coal Industry in 2007 recently completed by the China Coal Industry Association China's coal industry has been riding on a trend of rapid development, ameliorative structure, preferable benefits and stable operation in 2007. Meanwhile, some problems remain, including low productivity, pressure on natural resources and the environment and historical issues.

US DOC levies AD on steel wire garment hangers from China

The Department of Commerce on March 19th 2008 announced its affirmative preliminary determination in the antidumping duty investigation on imports of steel wire garment hangers from the People’s Republic of China.

Commerce preliminarily determined that producers and exporters of steel wire garment hangers from China have sold steel wire garment hangers in the United States at 33.85% to 221.05% less than fair value. As a result of this preliminary determination, DOC will instruct US Customs and Border Protection to collect a cash deposit or bond based on the preliminary rates.

The scope of this investigation covers certain steel wire garment hangers, fabricated from carbon steel wire, whether or not galvanized or painted, whether or not coated with latex or epoxy or similar gripping materials, and or whether or not fashioned with paper covers or capes and or nonslip features such as saddles or tubes. Steel wire garment hangers are produced primarily for use by the dry cleaning, industrial laundry, textile and uniform rental industries. Steel wire garment hangers are classifiable under the Harmonized Tariff System of the United States under the subheading 7326.20.00, and reported under statistical reporting number, 7326.20.0020. While the HTSUS subheading is provided for convenience and customs purposes, our written description of the scope of this investigation is dispositive.

Commerce is currently scheduled to make its final determination in June 2008. If Commerce makes a final affirmative determination and the US International Trade Commission makes a final determination that imports of steel wire garment hangers from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue an antidumping order.

The petitioner for this investigation is M&B Metal Products Company, Inc.

Chinese CR export offer surge again on high overseas price

It is reported that export quotation for Chinese cold rolled steel coil price has advanced substantially early this week due to surge in overseas market prices and Chinese steel producers are upbeat on future despite softening in home market.

While Chinese domestic price is believed to resumed increase following a period of adjustment. On Shanghai market, 1.0mm CR sheet by Anshan Steel goes at CNY 6500 per tonne, 1.0mm CR coil by Maanshan Steel at CNY 6330 per tonne.

According to traders offers for 1.0mm CR steel coils are prevailing at USD 950 per tonne to USD 960 per tonne FOB raise by USD 30 per tonne to USD 40 per tonne from last week.

Trading sources say CRC exports to USA and the EU are going up with the comeback of demand and remarkable price increase. At the same time, traders are weighing whether to take position again.

Supply are said to be quite tight and it is very difficult to get allocation even at the updated levels. Export prices seem to be on an upward trend and there is strong likelihood that there would be another increase of USD 100 per tonne in next three months, driven by the strength of international market prices and higher domestic level.

(Sourced from MySteel.net)

China unveils renewable energy development plan for 2006-10

Xinhua reported that China's annual consumption of renewable energy will reach the equivalent of 300 million tonnes of standard coal by 2010, which would be 10% of its total annual energy consumption, under the renewable energy development plan for 2006 to 2010.

According to a plan released by National Development and Reform Commission that 2010 renewable energy consumption will nearly double the 2005 level, which was equivalent to 166 million tonnes of standard coal. That led to a reduction of 3 million tonnes of sulfur dioxide emissions and more than 400 million tonnes of carbon dioxide emissions.

The plan says China boasts abundant renewable resources that could be exploited by 2010 include

1. The nation will have hydropower projects with a combined installed capacity of 190 million kilowatts and wind power projects with installed capacity of 10 million KW.

2. The installed capacity of bio-energy projects will reach 5.5million KW and that of solar energy projects will be 300,000 KW.

3. Domestically produced hydropower equipment and solar water heaters should become competitive on global markets.

4. Wind power equipment manufacturers should put generating units with installed capacities of at least 1.5 million watts into mass production.

Inner Mongolia to restrict ferroalloy output

It is reported that Inner Mongolia will maintain output quotas on calcium carbide and ferroalloy products as well as electricity restriction this year, in a bid to curb immethodical output increases of energy intensive products and strengthen industrial structure adjustment.

Calcium carbide and ferroalloy outputs in Hohhot, Baotou and Erdos will decrease year by year whilst outputs in Wuhai, Ulanqab and Xilingol League will rise modestly. Output quotas stand at 5 million and 3 million tonnes respectively for the products.

Zijin Mining plans to increase output in 2008

Platts reported that Hong Kong listed Zijin Mining Group Co Ltd plans to raise its iron concentrate, refined copper and gold output in 2008.

Zijin Mining Group Co Ltd plans to produce 1.26 million tonnes iron concentrate in 2008 up by 45% YoY as compared to 2007. Its copper output target is set at 59,000 tonnes for 2008 up by 25% YoY as compared to 2007, while gold output is estimated at 57.3 million tonnes in 2008 up by 11% YoY as compared to 2007.

Zijin Mining Group Co Ltd said that despite the fact that the US economic slowdown could limit global demand for nonferrous metals, it planned to raise its iron concentrate, copper and gold output in 2008 due to an anticipated increase in metal prices.

Zijin Mining reported total sales of CNY 14.871 billion in 2007 up by 39% YoY as compare to 2006. Net profit reached CNY 2.552 billion in 2007 up by 49.72% YoY as compared to 2006.

China may become net primary aluminum importer

According to China Securities Journal, China is expected to become a net primary aluminum importer in the fourth quarter of 2008.

According to the report, global primary aluminum production will reduce by around 7 million tonnes to 8 million tonnes due to snowstorms in China.

Chinese primary aluminum consumption is projected to rise by 20% to 12.44 million tonnes this year.

Evraz joins the race for ArcelorMittal Sparrows Point - Report

Interfax reported that Evraz Group could be the third Russian company contending to buy the Sparrows Point steel mill in the US which anti monopoly regulators has ordered ArcelorMittal to sell.

Evraz officials declined to comment on the information. However, a market source familiar with Evraz's plans said that with the Ipsco acquisition Evraz has completed its portfolio of assets in North America.

As per earlier media reports, Severstal, NLMK and Essar may consider bidding for this plant.

TMK ships first batch of pipes to Nord Stream

TMK has announced that it began shipments of 1420 mm large diameter electric welded pipes with 21.6 mm wall thickness for use in the Nord Stream onshore section and designed for high pressure applications of up to 9.8 MPa.

In 2008, TMK expects to supply Gazprom with up to 70,000 tonnes of large diameter pipes for the onshore section of Nord Stream. These pipes are intended for the Nord Stream gas pipeline and other high pressure applications under various climatic conditions, including arctic environments.

The release added that this new range of large diameter pipes are produced at TMK's Volzhsky Pipe Plant and a test batch was sent to a Gazprom test site in 2007. Full scaled tests, including flow and explosive testing, evidenced the high mechanical properties of this new pipe range.

Following these tests, the pipes were certified by the Scientific Research Institute of Natural Gases and Gas Technologies and approved by Gazprom's R&D department. TMK is able to supply large-diameter pipes with internal smooth coating and external anticorrosive coating options. Earlier this year, internal smooth coating equipment for welded pipes was commissioned at Volzhsky Pipe Plant.

Mr Konstantin Semerikov CEO of TMK said "TMK now offers high tech tubular products that meet the requirements of today's large-scale pipeline construction projects. We are constantly improving and developing our range of large diameter pipes and implementing new production technologies, making our products suitable for the most severe operating conditions and aggressive environments. This makes it possible for us to participate in large-scale pipeline projects such as Nord Stream."

ThyssenKrupp opens a sales division in Smolensk

FIS reported that ThyssenKrupp Materials, in line with the implementation of strategic regional development goals of 2008, in March 2008 opens a sales division at Smolensk in Russia.

Thyssenkrupp said that the availability of a sales division and warehouse is to help win long standing consumers and new clients for the broadest range of ferrous and stainless products and reduce the time of delivery.

ThyssenKrupp has opened four branches and 2 sales divisions in six Russian regions up to date.

Russia iron ore export in 2007 up by 11.6% YoY

According to the related statistics, Russia exported 25.502 million tonnes of iron ore in 2007 up by 11.6% YoY as compared to 2006.

The main destinations were as under

In million tonnes
Change is YoY

Gazmetall confirms talks with Norilsk Nickel

Thomson Financial cited Mr Maxim Basov general director of CJSC Gazmetall a saying that his company is still in merger talks with JSC MMC Norilsk Nickel. He said 'We're looking at a merger between two companies.”

He added that “Neither of us are representing UC Rusal. In fact UC Rusal is not yet an interested party.”

UC Rusal has already agreed to acquire a 25% plus one share stake in the mining conglomerate in a deal scheduled to be completed by the end of this month.

Ferrexpo to accumulate shares of PGOK

Mike Oppenheimer CEO of Ferrexpo plc said that Ferrexpo AG will increase its stake in Ferrexpo Poltava OMEP to 96% to 97% in 2008. This will be done through an agreed earlier purchase of 10.6% stake in PGOK from an independent Austrian company, Decometal.

Mr Gavin Mackay PR manager of FXPO said that FXPO is a developing company which is to attract capital and therefore "external investors" should not wait for dividends.

He said we consider Decometal as one of “external investors” which decided to sell its stake at a good price. The news is neutral for PGOK since the expected ownership change will not cause any changes in FXPO’s policy in respect of PGOK.

Currently FXPO owns 100% in Ferrexpo AG which in turn is an 85.6% shareholder of PGOK.

Russian industrial production in 2 months up by 6% YoY

According to the Federal State Statistics Service, industrial production in Russia in January to February 2008 grew by 6% YoY as compared with the same period of 2007. In February, industrial production in Russia grew by 7.5% YoY on February 2007 and by 3% MoM on January 2008.

In January to February 2008 mineral resources production grew by 1.4% YoY, production in processing industries grew by 7.7% and production and distribution of electric power, gas and water grew by 7.4% YoY.

In million tonnes
Gas is in billion cubic meters

Mechel commissions of new mining machinery at Yakutugol

Mechel has announced the commissioning of a new excavator at its Yakutugol OAO subsidiary in line with its mining equipment modernization program.

The cost of the machine is about RUB 404 million. The machinery is intended to yield a rapid return on investment and is expected to load about 8 million cubic meters of capping in 2008.

The release added that the electrohydraulic PC-8000 excavator with a 36 cubic meter bucket capacity, manufactured by KMG is the third excavator of this brand purchased by Yakutugol OAO. This machine has high performance c