Indian sponge iron makers seek government help for coke supply

PTI reported that India’s sponge iron producers have sought the government’s intervention in ensuring assured supply of coke, iron ore and natural gas to fructify their additional capacities and enable India to achieve the steel production target of 300 million tonne by 2019-20.

Mr PR Dhariwal chairman of Sponge Iron Manufacturers’ Association, in a letter to union steel minister Mr Ram Vilas Paswan, said that "Sponge iron industry is fully geared up to meet the challenges ahead but is facing serious problems of continuous increase in prices and short supply of vital raw material inputs."

Mr Dhariwal said pointed out that National Mineral Development Corporation has increased prices by 47.5% from October 2007 and further upward revision of the mineral is expected from next month. Similarly, private miners in Orissa, Jharkhand and Karnataka too have increased prices by over 73% from April 2007. He added that "We believe some formulae to define the prices of iron ore and value addition by mine owners for better use of iron ore fines are becoming a necessity."

He further added that in order to meet the fast growing demands of steel sector, India will have to ensure fresh sponge iron capacities. He said "On account of difficult availability of steel melting scrap, limited reserves of coking coal, sharp and regular increases in the prices of all inputs, the steel industry in India depend on sponge iron for making steel through electric arc furnace route."

Coal mine fire in Burdwan triggers panic

ANI reported that a fire, that has been raging at a coal mine in West Bengal's Burdwan District for the past 2 days, has spread panic among the locals.

As per report, residents of Nimcha village said that officials have done nothing to stop it and are only interested in making money from legal and illegal mines. Mr Naba Kumar Mishra a leader of Centre of Indian Trade Unions claimed that no thought is being given to saving the lives of villagers.

Meanwhile, CIL’s Eastern Coalfields Limited, which runs the mine, said that there is no danger to the village. Mr KP Singh GM of Eastern Coalfields Limited said that "We are not aware of the exact location of the fire or where illegal mining is taking place. When the flames appear, we douse it with water."

Experts blame the fires on unscientific mining and on the illegal extraction of coal. They warn that it is an environmental disaster waiting to happen.

Indian Railways to modernize workshops

BL reported that Indian Railways is planning to invest USD 163.5 million on modernizing its workshops over the next 1 year, which includes USD 23.5 million on procuring machines to be used in the workshops.

Indian Railways has over 50 independent mechanical engineering workshops and production units. It is looking to modernize in areas concerning wheel machining automation, metal forming, metal cutting, metal finishing, rescue devices, measurement tools and IT.

Mr RK Rao member mechanical of railway board said that "Indian Railways is expected to invest approximately USD 23.5 million for procurement of machines and approximately USD 140 million for modernization of workshops over the next 1 year."

Centre approves INR 1000 crore equity investment by NTPC

India’s Cabinet Committee on Economic Affairs has given its approval for waiving the ceiling of INR 1000 crore for equity investment by NTPC Ltd. to establish financial joint ventures and wholly owned subsidiaries in India or abroad for participating in the bidding called by state utilities or distribution licensees under case 2 of the bidding guidelines for setting up power projects, subject to the implementation of maximum 10 projects.

The approved delegation will facilitate participation of NTPC in the bidding for the development of power projects initiated by utilities and result in greater competition and establishment of more public sector power projects.

TATA Motors launches Xenon 1 ton pickup truck in Thailand

It is reported that TATA Motors has launched its Xenon 1 ton pickup truck at the Bangkok International Motor Show in Thailand. Mr Ratan Tata chairman of the TATA Group was originally scheduled to attend the Xenon launch in Bangkok but had to cancel at the last minute because of other engagements.

The Xenon model was designed in England and features a German developed 2.2 liter direct injection, common rail engine. The body, using 0.8 to 1.55 mm thick steel sheets, is sturdier than other pickups on the Thai market, where 1 ton trucks have traditionally accounted for more than 60% of domestic vehicle sales. TATA's Xenon models are to be sold for THB 539,000 to THB 629,000.

Mr Ravi Kant MD of TATA Motors said that "The Xenon pickup has been developed and built in Thailand, specifically keeping the Thai customers in mind."

TATA Motors Limited had set up its Thai subsidiary in 2007 to manufacture 1 ton trucks for the domestic and export markets. Production of the Xenon began in 2008.

Thailand is the world's second largest market for pickups after the United States and has become a leading exporter of the vehicle over the past decade. It is also among the top 15 automobile assemblers worldwide. During the first two months of 2008, Thailand produced 231,680 vehicles up by 27.28% YoY. About 57% of the total production or 132,674 vehicles were exported from January to February 2008. In 2007, Thailand's total vehicle production reached 1.25 million units.

Mumbai to have SS coaches for local trains – Report

It is reported that Mumbai's rail authorities have now demanded for stainless steel coaches for suburban trains, similar to those being manufactured for the long distance ones and have written to the World Bank urging them to finance all steel trains under the Mumbai Urban Transport Project II.

Mumbai Rail Vikas Corporation, the nodal agency for procuring new suburban trains, has latched on to Mr Yadav's promise of changing over to steel trains.

Mr PC Sehgal MD of Mumbai Rail Vikas Corporation said that "If rail coach factories are going to have new assembly line to manufacture steel trains for outstation journeys, the facility should be extended to make suburban trains also."

Mr Sehgal said that they have written to the railway board asking for similar treatment to outstation and suburban trains. He added that "It is late to ask for steel trains under Mumbai Urban Transport Project I as the supply has already begun. But the trains coming under the second phase of Mumbai Urban Transport Project, scheduled for 2010, can be of stainless steel."

He said the Mumbai Rail Vikas Corporation is ready to shell out the extra money needed to manufacture pure steel trains as compared to the cotton steel rakes being supplied under Mumbai Urban Transport Project I. He added that "We are ready to pay INR 40 to INR 50 crore extra to upgrade rakes under Mumbai Urban Transport Project I to pure steel."

However, sources in Indian Railways said it's not easy to manufacture suburban coaches with steel using the assembly line of long distance trains. An official from railway board said that "The alignments are different, coach size and seating pattern is completely different between outstation and suburban trains."

JSPL announces change in board

Jindal Steel & Power Ltd has informed BSE that its board of directors, vide its resolution by circulation passed on March 27th 2008, has appointed Mr Arun Kumar Mukherji as an Additional Director and Wholetime Director of the Company with effect from April 1st 2008.

JSPL added that Mr PS Rana Wholetime Director of the Company has resigned from Directorship and Wholetime Directorship effective from close of business hours of March 31st 2008.

Karnataka keen on setting up an international shipyard

BS reported that, aiming to make its coastal economy more buoyant, the Karnataka government has pitched for the setting up of a shipyard of international size in its waters. In a proposal forwarded recently to the centre, the state government has suggested Tadri and Belekeri ports on its 320 kilometer long coastline as ideal locations for establishing the shipyard that can build and repair ships up to the size of very large crude carrier with a carrying capacity of 300,000 tonnes.

The state government officials zeroed in on the Kundle beach near Tadri port and Honne beach near Belekeri port out of the 10 ports along the state’s coastline. Tadri, which is located in Uttara Kannada district, is one of the ports that have a great potential for growth as the Konkan railway line and National Highway 17 are quite close to it. Belekeri port is located 26 kilometer south of Karwar and has vast stacking area and a good network of roads.

The report cited a public works department official as saying that "We are quite confident that the centre will act positively on our request for the shipyard of global standards. We already have several mega projects in power and petrochemical sector lined up for our coastline, another addition in the form of shipyard will take the coastal economy to the next higher level."

Union ministry of shipping, road transport and highways sent directive last year to all maritime states to identify locations for setting up international size shipyards, one each on the West coast and East coast respectively. For each shipyard, the centre had envisaged a minimum land requirement of 1,000 to 1,500 acres and a waterfront of about 2.5 kilometer in length, a water draft of 10 to 12 meters and goods rail road connectivity. The shipyard would be located in a place where the water depth at the jetty is 10 to 12 meters and there are at least two big dry docks for building and repair along with a quayside length of 2.5 kilometers and other infrastructure support facilities for building and assembly of ships.

The centre has appointed Ennore Port Limited and Mumbai Port Trust as nodal agencies for the project and has authorized the two appointed consultants to suggest optimal locations with detailed justification.

Bharat Forge to set advanced manufacturing unit near Pune

BS reported that Bharat Forge has signed a MoU with Maharashtra government for setting up a centre for advanced manufacturing at Baramati near Pune.

The INR 350 crore project will manufacture critical and safety components for aerospace, marine, rail, energy, mining, and construction equipment. The centre would have a forging capacity of 30,000 metric tonnes per annum. The manufacturing facility is expected to employ over 1,200 highly skilled engineers and professionals. It plans to scale up the investment by another INR 150 crore by end of 2008.

Mr Baba Kalyani CMD of Bharat Forge said that the project was a big step forward for Bharat Forge from the automotive sector to aerospace, marine and rail sectors. Mr Kalyani said that "We aim to be the global leader in non automotive components business in the next 5 to 7 years." He added that it has already committed INR 350 crore to the project and will invest INR 150 crore more by the year end.

Pune based Bharat Forge already has manufacturing operations across 12 locations in 6 countries, 4 in India, 3 in Germany and 1 each in Sweden, Scotland, US and 2 in China.

Launch of Indian Energy Exchange may be delayed – Report

It is reported that the roll out of Indian Energy Exchange is likely to be pushed back beyond the tentative April 1st 2008 launch target as fine tuning of final rules and bylaws, besides the establishment of data transfer interface with system operators are yet to be completed.

The bourse was initially slated to go live in February 2008, with the launch date being pushed back subsequently.

Indian Energy Exchange has roped in leading global electricity exchange Nord Pool ASA for operational expertise to ensure that the kick starting the bourse goes without a hitch. Its promoters namely Financial Technologies India Limited and PTC India Limited had earlier signed up Nord Pool’s technology provider, Swedish firm OMX Technology, to offer tech support to Indian Energy Exchange.

Indian Energy Exchange has already got expression of interest from some 100 prospective members, including a host of central generating stations, distribution licensees across states and state generating stations.

As per the design of the exchange, all transactions on the Indian Energy Exchange platform will be carried out by or through registered members, each of whom will be designated as trading cum clearing member. Once the exchange goes live, all the participants will submit the bids for buying and selling of power to the exchange though a closed double side auction process. The power bourse would accept bids and offers from prospective buyers and sellers during the bid call period from 1,000 hours to 1,200 hours for each hour of the next day.

The bids would be displayed on the screens of trading cum clearing member online work stations. The bids matched by the bourse mechanism would be settled at a uniform market clearing price and the energy flow would be arranged through inter state transmission system.

Trading cum clearing member, which had bagged approval from the Central Electricity Regulatory Commission on August 31st 2007 for establishing the power exchange, has on board IDFC, Adani Enterprises, Reliance Energy, Lanco Infratech, Rural Electrification Corporation and TATA Power Company as investors, besides FTIL and PTC.

Chowgule Steamships inks pact with Maharashtra for Jaigad Port

Chowgule Steamships Ltd announced that its Chowgule Ports & Infrastructure Pvt Ltd has signed a Concession Agreement with Maharashtra Maritime Board for development of a minor port at Jaigad.

Chowgule Ports & Infrastructure Pvt Ltd is a SPV floated to undertake the port infrastructure development and Ship Repair projects at Jaigad.

The port development projects would be undertaken under BOOST basis. In terms of the Concession Agreement, MMB has also an option to contribute up to 11% in the eventual capital of CPIPL.

Mr Muthuraman appointed as chairman of IIT Kharagpur board

It is reported that Mr B Muthuraman MD of TATA Steel has been nominated as the chairman of the board of governors of Indian Institute of Technology Kharagpur by Indian President Mrs Pratibha Patil for a period of three years. Mr B Muthuraman has been a member of board of governors of the IIT Kharagpur.

Mr Muthuraman said “I accept the nomination with a great deal of pride and would try my best towards contributing to the affairs of the prestigious institution.”

Mr Muthuraman has been serving as the director on the board of CEDEP of France. as chairman of board of governors of the XLRI and also the chairman of the National Institute of Technology in Jamshedpur.

He is a Member of Business Advisory Council of Economic and Social Commission for ASIA and the Pacific. Serving as the Director of International Iron and Steel Institute Brussels, he has also been conferred the honorary fellowship of All India Management Association on 6 September 2007. Winner of the distinguished Alumnus Award from IIT Madras in 1997, Mr Muthuraman has also won the Tata Gold Medal from Indian Institute of Metals in 2002.

Japanese banks to lend USD 803 million to TATA Motors

It is reported that Mitsubishi UFJ Financial Group Inc and Mizuho Financial Group Inc will lend up to USD 803 million to TATA Motors Limited to help fund its purchase of Ford Motor’s Jaguar and Land Rover brands.

Ms Masako Shiono spokeswoman of Mitsubishi UFJ said that the Japanese banks will provide about JPY 40 billion each to TATA Motor, which is borrowing USD 3 billion from a group of banks.

Ford agreed to sell Jaguar and Land Rover to TATA for USD 2.3 billion. Citigroup Inc, JP Morgan Chase & Co, BNP Paribas SA, ING Groep NV, Standard Chartered Plc and State Bank of India Ltd will provide the rest of the financing.

J&K to have a 300 MW hydel project soon

BS reported that a 300 MW hydel power project is coming up at Panjtirthi on the river Ujh in Kathua district of Jammu region shortly.

Mr Babu Singh power minister of J&K said that the power starved state had taken many steps for bringing reforms in this sector. He added that "Out of the INR 24,000 crore special package announced for J&K, INR 17,000 crore is being spent on the power sector."

Hyundai Motor signs deal to sell buses in India

Yonhap reported that South Korea Hyundai Motor Co has signed a contract with UK based Caparo Group's Indian unit to produce and sell 5,000 of its buses in India by 2013.

Hyundai Motor Co in a statement said that under the contract, Caparo will set up a plant with Hyundai to produce the Hyundai Motor buses.

It said that the factory in the southern Indian city Chennai will begin production of the buses in early 2009.

NCDEX to launch carbon credit futures in mid April

Reuters reported that National Commodity & Derivatives Exchange Limited will launch carbon credit futures in mid April 2008 and is planning to introduce coal futures in 4 months.

Mr PH Ravikumar CEO of NCDEX said that it has also sought approval from the Central Electricity Regulatory Commission to start a power bourse in a JV with National Stock Exchange.

NCDEX is India’s second biggest commodity bourse by trade turnover and is part owned by Intercontinental Exchange Inc and Goldman Sachs Investments Mauritius Limited.

IOC in talks with ONGC, RIL and GAIL for city gas venture

It is reported that Indian Oil Corporation is in talks with Oil & Natural Gas Corporation, Reliance Industries Limited and GAIL India Limited to form a JV for city gas distribution.

Mr BM Bansal director business development at IOC said that "We are in discussion with these companies to form a JV for city gas distribution. But we will be able to finalize it only after the Petroleum & Natural Gas Regulatory Board comes out with its guidelines."

It may be noted that in November 2007, PNGRB had proposed a competitive bidding process to select public and private entities for developing city gas distribution networks in India.

Volvo bags order for extra 240 buses from BMTC

Volvo Bus Body Technology recently announced that it has received an order for an additional 240 city buses from the Bangalore Metropolitan Transport Corporation. Some of these buses will be deployed between Bangalore and the new international airport in Devanahalli.

Mr Upendra Tripathy MD of BMTC said that the new order is in addition to the 70 Volvo buses which were ordered earlier by the BMTC. He added that "Passengers are very satisfied with the comfort provided by the Volvo buses."

Mineral policy to focus on infrastructure growth

It is reported that National Mineral Policy, which is expected to bring in fresh investments in the mining sector, is likely to be placed before Parliament for its approval soon.

Mr T Subbarami Reddy union minister of state for mines said that "The National Mineral Policy, which was recently cleared by the cabinet, will be placed in Parliament for its approval during the current session. The government expects an annual investment of a minimum of USD 2 billion and creates an additional 500,000 jobs in the next 5 years." He added that the National Mineral Policy envisages local area development and special attention will be given to development of infrastructure in mine areas.

According to Mr Reddy, cost effectiveness is a very important parameter which directs the construction industry. He said "Despite the spiraling prices of steel, cement and other inputs, the industry is looking up because of sustained economic growth. Also the construction industry must not be driven by profit motive alone. While it is important to be financially viable, companies must also feel it as a social obligation to deliver cost effective solutions."

Earlier, Mr Rajeev Ratna Shah, former secretary of Planning Commission said that the government is looking at an investment of around USD 494 billion for developing the infrastructure in the 11th Five Year Plan. Mr Shah added that since the government was looking for an active participation from the private sector, it is also important to have a good regulatory mechanism and have a mechanism for long term debt financing. He said "While we have a mechanism through the India Infrastructure Finance Company for providing long term financing, the regulatory mechanisms are still evolving for various sectors."

Jindal India signs MoU with MP for coal based power project

FE reported that Madhya Pradesh government has entered into a MoU with Jindal India Thermal Power Limited for setting up of 2000 MW coal based Merchant Power Plant.

As per report, MP government would provide all possible assistance and fullest co operation to the company for successful implementation of the proposed project.

Jindal India Thermal Power Limited has intimated to state government that it has already applied to the coal ministry for long term coal linkage for the phase I of 1200 MW and requested to recommend for early allocation of coal linkage for phase I of the project, based on the progress made by it so far.

According to sources, the MP government has already allocated 0.051 million acre feet water to the company for the project and actions for land acquisition have also been initiated.

Jindal India Thermal has appointed SBI capital Markets as adviser for debt arrangement & structured financing and consultants for preparation of project feasibility report. It has firmed up plan to achieve capacity of 5400 MW in next 5 years, including at Orissa, Chhattisgarh, MP and other states.

Maruti to export 'A Star' from Mundra Port

BS reported that Maruti Suzuki’s next offering premium hatchback car to be called 'A Star' will be the first vehicle to be exported from its car terminal at Mundra Port, which is expected to be operational by December 2008.

The new car terminal the terminal is being set up with an investment of INR 100 crore. It is JV between Maruti Suzuki and Mundra Port & Special Economic Zone.

Mr Rajesh Uppal chief GM at Maruti Suzuki said that "A Star will be launched around October 2008. Initially, we plan to export 100,000 units to Europe from the Mundra Port."

A star, a small car from the Maruti stable, would feature a 1 liter petrol engine capable of lower emissions. The 5 door model, showcased at the Auto Expo in Delhi, has attracted attention for its unusual front and rear looks, interiors and mood lighting. Maruti Suzuki’s cumulative exports have crossed 500,000 units. It exports to the Netherlands, Italy, UK, Germany, the Hungary and across Europe.

The soon to be functional car terminal at Mundra Port will have a pre delivery inspection centre, a car stockyard spread over 35 acres and a dedicated buffer area for cars to be parked just before they are loading on the pure car carrier ships. The port would also develop a cost effective roll on roll off berth for speeding up the loading process and minimizing the chance of damage to cars.

Japan steelmakers named top polluters in survey

Reuters reported that Japan has unveiled a nationwide survey of top greenhouse gas emitting factories and offices in fiscal 2006/07, part of a campaign to encourage individual companies to fight climate change.

The survey showed JFE Steel Corp was the No 1 polluter of 60.3 million tonnes of carbon dioxide equivalent in the year ended in March 2007, followed by three of its peers Nippon Steel Corp, Sumitomo Metal Industries Ltd and Kobe Steel Ltd. Taiheiyo Cement Corp came fifth and Nippon Oil Corp, sixth.

Analysts said the first corporate level survey on emissions would help corporate managers and employees to realize their own duty for the industry they belong to meet the agreed target.

Unlike Europe, which imposes a mandatory cap and trade scheme of emissions on individual firms, Japan has encouraged voluntary pledges from industries to meet the national commitment under the Kyoto Protocol, the current UN led global climate pact. The pledges, aiming to meet Japan's commitments to cut emissions by 6% from 1990 levels over the 2008/2012 period, are not legally binding. But missing the target would require a company to pay a penalty to the government in the form of UN approved emission credits.

Carpenter acquires UltraFine Powder Technology Inc

Carpenter Technology Corporation announced that its subsidiary Carpenter Powdered Products Inc has acquired the assets and business of UltraFine Powder Technology Inc, a private company at Woonsocket in Rhode Island.

UltraFine is a leader in the manufacture and sale of fine gas atomized powders for the metal injection molding industry and other specialty markets.
Carpenter Technology produces and distributes specialty alloys, including stainless steels, titanium alloys and superalloys, and various engineered products. Its Carpenter Powder Products subsidiary features the industry's most extensive capacity for spherical gas atomized metal powders, and supplies a wide range of products for advanced aircraft and medical alloys to stainless and tool steels.

LKAB terminâtes force majeur on Malmberget

LKAB’s Market Division has terminated the Force Majeur Event that was declared on February 26, 2008 after the fire in the Malmberget concentrating plant.

It said that “The main part of the concentrating plant is now in operation and both palletizing plants have started production again. Although the production facilities have not yet reached normal capacity, LKAB considers the Force Majeur Event to have come to an end.”

It added that “The long standstill Malmberget has had a severe impact on LKAB's total production of pellets and fines products. LKAB now continues to work together with the customers to minimize their losses.”

Usiminas Q4 net income up by 29% YoY

Bloomberg reported that Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA Q4 profit surged by 29% YoY because of rising domestic demand. Consolidated net income rose to BRR 969.9 million (USD 561 million) from BRR 752.2 million in 2006.

Its consolidated net income includes profit from companies in which Usiminas has a minority interest, including Ternium SA and MRS Logistica. Its net sales rose by 6.2% YoY to BRR 3.48 billion.

Usiminas in a statement said that it has increased domestic sales as record low interest rates fueled demand for goods such as cars and home appliances. Vehicle output in Brazil jumped by 17% YoY and industrial production climbed 6%.

Zinifex extends offer for Allegiance Mining

Zinifex Australia Limited announced that it was extending the offer period of its takeover bid for all the ordinary shares of Allegiance Mining NL. The offer is now scheduled to close at on April 18th 2008. At close of business on March 27th 2008, Zinifex had increased its controlling interest in Allegiance Mining NL to 73% of ordinary shares.

Mr Andrew Michelmore CEO of Zinifex Limited said that the company was pleased with progress being achieved in moving towards full ownership of Allegiance. He also noted that Zinifex staff and Allegiance's directors were working effectively through transfer of management and control activities. He said that "We are all working towards the same goals of a smooth transition and putting our collective energy into successfully commissioning the Avebury mine and delivering nickel concentrates to Jinchuan.”

Mr Michelmore then summarized key features of Zinifex's offer for Allegiance. He said that “Zinifex's offer of AUD 1.10 for each Allegiance share is final. The majority of Allegiance directors have recommended acceptance of the offer and have either accepted, or intend to accept, in respect of all shares held by them or on their behalf.”

He said that "The revised price represents a premium of 55% over the closing price before our offer was announced in December and accepting shareholders will be paid within 5 business days of receipt of a valid acceptance.”

Mr Michelmore said that as Zinifex has an interest greater than 70%, no other bidder would now be able to acquire a controlling interest in Allegiance.

ThyssenKrupp denies plans to sell Transrapid

Reuters reported that German diversified conglomerate ThyssenKrupp denied a media report on Friday that it was considering the sale of its Transrapid maglev train technology.

Germany's Die Welt had reported that the company was looking to sell a licensing deal to China, home of the only existing commercial Transrapid route in Shanghai, after the German government and the state of Bavaria pulled the plug on plans to build a stretch connecting downtown Munich to its airport.

Salzgitter expects further steel price increases this year - CFO

Thomson Financial reported that Salzgitter AG expects further steel price increases during 2008.

The report quoted Mr Joerg Fuhrmann CFO of Salzgitter AG during the company's annual press conference as saying that it will raise steel prices, effective from April 1, in response to higher raw material and transport costs. Iron ore producers this spring hiked prices steel makers need to pay by up to 65%.

Mr Fuhrmann also said that he expects 2009 to be a good year for steel and pipes demand, but said he expects margins to shrink.

Idemitsu to resume full operation at Australian Mine

Idemitsu Kosan Co, the only Japanese oil refiner that owns coal mines in Australia, expects to resume full operations at its Ensham deposit in Australia in early 2009, after heavy rain and floods disrupted production. Idemitsu said it does not know when deliveries will resume from Ensham.

Mr Akihiko Tembo president of Idemitsu in an interview broadcast on Bloomberg Television said that “Three of the seven mining areas have been operating normally. Three of the seven mining areas have flooded completely and it's hard to predict schedules. We will start production from the areas that have recovered.''

Idemitsu declared force majeure on January 18th 2008 after the heavy rains, telling buyers it can't deliver coal from the mine in Queensland. Xstrata Plc, Rio Tinto Group and BHP Billiton Ltd. also cut coal production at mines in the state.

The mines produced about 8 million tonnes of power station coal in 2007.

Hyundai Steel hikes steel prices

South Korean Hyundai Steel had added KRW 100,000 to KRW 150,000 per tonne (USD 100 to USD 150) to its steel prices on April 1. Hyundai said the reason is to offset higher import prices.

Consequently, both prices of pickled plated and cold rolled coils rised by KRW 100,000 per tonne. EGI price went up by KRW 120,000 per tonne, while HGI price increased by KRW 130,000 per tonne.

In the second quarter, the import price of hot rolled coils from China to South Korea was at USD 830 to USD 870 per tonne CFR increasing by USD 200 per tonne from last quarter and the quote price from Japan was at USD 750 per tonne CFR up by USD 200 per tonne as well.

(Sourced from YIEH.com)

Monthly steel fact sheet for US import in February 2008

The preliminary data released show that overall steel imports in February 2008 decreased by 8% MoM from January 2008. The change in February’s total amount of steel imports was due to decrease in some goods, including galvanized sheets and strip by 24% MoM and oil country goods by 31% MoM. There was an increase in most stainless products except stainless pipe and tube by 20.5% MoM. February 2008 imports of steel mill products were down 8% YoY compared to February 2007.

February preliminary figure

In tons
(Sourced from SIMA)

Interseroh AG announces its 2007 results

Interseroh AG announced that year 2007 finished with a turnover and profit record. Interseroh AG in 2007 posted a turnover of approximately EUR 1.75 billion and a profit of EUR 55.4 million before taxes.

The consolidated turnover of the Interseroh Group amounted to approx EUR 1.75 billion in 2007 and has thus reached the highest level in the history of Interseroh up by 41% YoY as compared to 2006. It registered an EBT of approximately EUR 55.4 million as compared to EUR 41.1 million in 2006 up by 35% YoY. The EBIT grew from EUR 45.32 million in the previous year to EUR 64.29 million.

Mr Johannes Jürgen Albus CEO of Interseroh said that "A series of successful acquisitions in Germany and the Netherlands in the steel and metal recycling segment, a service segment that has experienced strong organic growth and the rapidly increasing global marketing of secondary raw materials have defined the business year 2007 for our enterprises."

He added that Interseroh is now the leading European provider of organizational solutions for material flow management and one of the leading suppliers of industries in Western Europe with approx. 5.8 million tonnes of processed and traded secondary raw materials. By acquiring a majority of shares of a secondary metal dealer based in the Netherlands and in Hong Kong and by acquiring a minority holding of a steel and metal recycling firm in the USA, the Interseroh Group has also taken an important step towards increasing its physical presence outside Europe.

Rebar price hit JPY 100,000 per tonne mark in Tokyo

JMB reported that concrete reinforcing steel bar market price should reach JPY 100,000 per tonne around Tokyo for the first time since 1974.

The price exceeded JPY 90,000 in all areas in Japan in the month when the makers increase the selling price to cover higher raw materials cost. They continue to improve the selling price to regain profitability from current loss making operation when ferrous scrap price increases. Rebar market price is likely to increase more.

Paranapanema reports loss of USD 62.8 million in 2007

BNAmericas reported that Brazilian mining and metals holding company Paranapanema registered a BRR 109 million (USD 62.8 million) loss in 2007 as compared to a BRR 314 million net profit in 2006. The bottom line was heavily influenced by rising costs and the strength of the Brazilian currency versus the US dollar.

However Paranapanema reported increased annual sales volumes by its copper, tin and fertilizer divisions. Its tin subsidiary Mineração Taboca's tin sales rose by 49.7% YoY to 7,383 tonnes in 2006.

Kores to invest USD 6 billion in mining projects

South Korean State owned minerals exploration and mining company Korea Resources Corporation and its partners announced that they have plan to invest USD 6 billion in mining and energy projects across the world.

Of this total, USD 1.8 billion will come from Korea Resources Corporation itself and the remainder from other South Korean companies and from the National Pension Service. The timeframe for this program is eight years and one of the target regions is Southern Africa.

Mr Lee Han ho CEO of Korea Resources Corporation told Bloomberg Television recently that “I’m confident we can meet the goal since the way we pursue those projects are competitive in that we offer the technology and the capital that some resource-rich countries need. What we plan to do is not to simply ship metal concentrates out of the foreign countries, but to explore, develop, produce and then process the concentrates there. Also, we will build roads or power plants for these countries.” The South Koreans are thus offering to invest not only in mining but also in beneficiation as well as in mining-related infrastructure with regard to his country’s surging hunt for essential raw materials, admitted that South Korea was quite late presumably in comparison to China and India.”

South Korea is the world’s thirteenth largest economy and has to import 97% of its minerals and energy. Raw materials account for 50% to 60% of total imports and the country has been struggling to obtain additional crude oil and other basic commodities, in the face of rising international demand and the concomitant price increases.

Korea Resources Corporation which was established in mid 1967 and other South Korean companies have been investing in overseas mining projects for some time, with Kores itself involved in 20 projects in eight countries, although most of these projects are concentrated in just three countries Australia, Canada and China.

Vinto and Comibol joins hands to creates strategic companies

The Bolivian government has declared the Empresa Metalurgica Vinto tin smelter and state mining company Comibol national strategic public companies.

A Comibol spokesperson said that “The decision makes it easier to manage both companies given the role they play in the country's economic growth.”

The spokesman added that as a result of the supreme decree awarding the new status, both companies will be able to contract directly material, input supplies and the equipment necessary for operations.

The Vinto smelter which produced 9,448 tonnes of refined tin in 2007 is embarking on a major modernization program involving the installation of a 19,000 tonne per year capacity Ausmelt furnace. Meanwhile Comibol’s Huanuni tin mine is developing trackless mining of the deeper levels of the operation and planning a major mill expansion.

Vale steel plant JV in Pará hinges on infrastructure

Jornal do Commercio reported that Brazilian diversified mining and metals group Vale's plans to build a steel plant in Pará state in partnership with a foreign company hinge on the state's investments in infrastructure.

Vale has said the project would follow a similar model to its other steel partnerships with foreign companies.

Mr Roger Agnelli CEO of Vale said that "The question of energy and infrastructure in Brazil's northern region is critical.”

The Brazilian is also involved in a 20:80 JV with China's largest steelmaker Baosteel on the CSV steel mill project in Espírito Santo state.

Highveld chairman Mr Boyd passes away

It is reported that Mr Leslie Boyd chairperson of South African steelmaker Highveld Steel & Vanadium had passed away suddenly.

Mr Boyd was appointed to the company's board in July 1997 and as chairperson in May 2007. He also served as chairperson from June 1983 to May 2001.

Highveld in a statement said that “His contributions to the board will be sorely missed by his fellow colleagues.”

Mr Colagrossi to be president of Metso Minerals Construction

Metso Minerals has announced that Mr João Ney Prado Colagrossi Filho will take up the positions of President, Construction business line and member of the Metso Minerals Executive Team on May 1st 2008. He will report to Mr Matti Kähkönen president of Metso Minerals.

Mr Colagrossi, a Brazilian citizen, has held senior management positions in Metso Minerals’ sales and supply operations in the South American market since 1979. In recent years, Mr Colagrossi has been responsible for the company’s Mining, Construction and Recycling businesses in the South American market. He has also played a strong role in strategy development for Metso Minerals Services.

Mr Matti Kähkönen said "João Ney's impressive track record in leading our South American business, his strong customer orientation and service mindset make him the ideal person to lead our Construction business line. His leadership skills and vision will enable Metso Minerals to continue expanding our services and equipment portfolio to serve the global construction sector even better.”

Metso Minerals is a global supplier of solutions, equipment and services for rock and minerals processing. Its expertise covers the production of aggregates, the processing of ores and industrial minerals, as well as construction and metal recycling. Metso Minerals employs some 10,500 people its net sales are EUR 2.6 billion in 2007.

USW stepping back from ArcelorMittal Canada union

Bloomberg reported that United Steelworkers union is stepping back from forming a labor group at ArcelorMittal's Dofasco unit in Canada because of a lack of employee interest.

Mr Wayne Fraser USW Ontario Atlantic Director said that “There wasn't sufficient support to move forward at Hamilton.”

The USW had sought to create a bargaining committee among Dofasco's 4,000 workers that would have started talks with the company on a collective labor agreement. The Steelworkers said in the release that Dofasco, which makes sheet steel for automakers has a long non union history in a heavily unionized Canadian steel sector.”

It added that “The USW plans to continue working with supportive''

ArcelorMittal, the largest steelmaker in the US has about 20,000 unionized employees in North America and acquired Dofasco as part of Mittal Steel's USD 38.1 billion takeover of Arcelor in 2006.

Sims appoints Mr Dienst as CEO and Mr Larry as CFO

Sims Group Limited recently announced that Mr Daniel W. Dienst has been appointed Group CEO as Mr Jeremy Sutcliffe retires.

Mr Robert C. Larry has been appointed Group CFO as Mr Ross Cunningham retires.

Anglo Platinum responds to resettlement allegations

Anglo Platinum vide a release said that it is aware of the serious allegations contained in the BBC Radio Report, “Mining forces out thousands in SA” and the ActionAid Report “Precious Metal the Impact of Anglo Platinum on poor communities at Limpopo in South Africa”.

Anglo Platinum said that “The reports contain numerous errors in addition to inflammatory statements. Anglo Platinum’s relocation of communities in the Mogalakwena district have resulted from consultations and negotiations that span the period 1998 to 2008. During that period 2 separate relocations were embarked upon, the first of which commenced during the transition of democracy in SA when relocations were extremely politically charged. In the first relocation which was extremely complex 706 families from the Ga Pila community were resettled by 2003. Some 140 members of the 7000 strong community still remain on the original site despite having previously agreed to move and new houses built for them in the new Ga Pila village. The second relocation of the Motlhotlo community which commenced in mid 2007 and is still currently in progress has already seen some 8000 members of the 10 000 strong communities of Ga Puka and Ga-Sekhaolelo resettled on the basis of freely given agreement in the new Motlhotlo village. The BBC and ActionAid reports have grouped both relocations and interviewed only those with a negative stance. Both the communities of the new Ga Pila and Motlhotlo villages are being provided with treated underground water by the Municipality of Mogalakwena. Neither the BBC nor ActionAid visited the new Motlhotlo village constructed by Anglo Platinum and are therefore unable to present a balanced case for the negotiated resettlements.”

Anglo Platinum takes these allegations extremely seriously and will attempt to correct all factual inaccuracies with its stakeholders and will present such facts to the BBC and ActionAid. Anglo Platinum welcomes the Human Rights Commission’s undertaking to fully investigate the validity of the ActionAid allegations which were formally submitted to the Commission today. Anglo Platinum provides some facts associated with the allegations below.

CFE seeks detailed coal buying consultation from suppliers

Reuters reported that Mexico's Federal Electricity Commission has sent out a letter to coal suppliers asking for detailed, month long consultations aimed at improving the efficiency of its coal buying process.

Suppliers said that Federal Electricity Commission tendered for just under 5 million tonnes of coal for March to December supply to its Petacalco plant on Mexico's Pacific Coast. The tender was awarded to local supplier Ailia, at prices of USD 50 a tonne lower than other offers.

It added that Ailia has not begun deliveries to Federal Electricity Commission yet. This has forced Petacalco to burn fuel oil at more than double the cost of coal.

Venezuela aluminum workers starts operation Turtle

BNamercias reported that employees from Venezuela's aluminum sector have begun an operation turtle a tactic of slowing production to pressure the companies Alcasa, Venalum, Carbonorca and Bauxilu in which over 10,000 workers are involved.

Mr Juan Salas head of the Sutralumina union told BNamericas that "We started the operation at companies in the sector to demand investments in technological upgrades and so the government will define the issue of a salary raise.” He added that unions at the four companies have been threatening to reject the offer of a 10% salary increase suggested by the country's basic industries and mining ministry by calling a strike.

Mr Salas said that employees are requesting pay raises of 13%, 14% and 15% for employees with good, very good and excellent performance, respectively. He said that union leaders issued a petition of reconciliation to the labor ministry's inspection department as part of a process to carry out a legal strike. This move means we are running out of options for reaching an accord. He added that "After presenting the petition, we plan to take more action but I won't say what kind because then they will be waiting for us with the national guard.”

The four companies are part of Venezuela's aluminum production chain and are all subsidiaries of state heavy industry holding company CVG.

Taiwanese tube mills increase prices for April

It is reported that Taiwan’s Chung Hung Steel has increased the prices on all products for domestic market by TWD 2,500 per tonne. Therefore, the domestic black pipe mills all raised the price in order to offset the high raw material cost.

The price of black pipe in April has achieved TWD 3,000 to TWD 3,500 per tonne and the price of galvanized pipe in April will be increased by 12%to about TWD 3,600 per tonne. The price of EMT pipe and electric pipe in April has soared to TWD 3,500 per tonne.

(Sourced from YIEH.com)

Coal production in Virginia slips by 10% YoY

It is reported that Virginia coal production is down about 10% in 2008 through March 15th 2008. According to the US Energy Information Administration, 5.4 million tons of coal was mined in Virginia, compared with 6 million tons during the same period last year.

It said that coal production nationwide is up by 2.4% through March 15. Increased global demand for coal has contributed to high prices and high production rates in recent months.

For the 52 week period that ended March 15, Virginia coal production was down 16%. A total of 24.6 million tons were mined, compared with 29.4 million tons a year earlier. For those 12 months, Virginia coal production was about half what it was during a similar period less than two decades ago.

It added that the recent restarting of a large Consolidation Coal Co underground mine in Buchanan County could give a small boost to coal production this year.

Sherritt offers to buy 100% of Royal Utilities

Sherritt International Corp announced on March 18th 2008 an offer to purchase all of the issued and outstanding Royal Utilities trust units that it does not already own. Sherritt and the Ontario Teachers' Pension Plan each own and control approximately 41.2% of the Royal Utilities Income Fund. The rest of the units are widely held.

Under the proposed transaction, Royal Utilities unit holders would receive USD 12.25 per unit, consisting of cash, 0.8033 of a Sherritt common share or a combination of cash and Sherritt common shares, subject to a maximum of USD 225 million to be paid in cash. This values the units at a 15.5% premium to the 20 day volume weighted average unit price. Assuming the full amount of cash is paid, the aggregate number of common shares issued by Sherritt would be approximately 31.4 million.

Teachers' and Sherritt have entered into a lock up agreement pursuant to which Teachers' has agreed to tender all of its units to the proposed transaction.

Sherritt management believes that this proposed transaction is an important step in Sherritt's growth strategy as a premier, growth-oriented natural resource company. Acquiring 100% of Royal Utilities will internalize significant cash flow which will allow Sherritt to invest in growth projects in its coal and other segments.

Sherritt is a proven operating company involved in nickel, cobalt, oil and coal, with combined revenues of USD 1,845 million and combined EBITDA of USD 893 million in 2007.

SDI announces offering of notes

Steel Dynamics, Inc announced that it plans to sell approximately USD 300 million in aggregate principal amount of debt securities in a transaction exempt from the registration requirements of the Securities Act of 1933, subject to market and other conditions.

As per release Steel Dynamics intends to use the net proceeds from the sale of these debt securities to repay amounts outstanding under its senior secured revolving credit facility and for general corporate purposes.

Steel Dynamics also announced that it is currently negotiating an amendment to its senior secured credit facility pursuant to which it expects to increase existing commitments under the credit facility by approximately USD 150 to USD 250 million in the aggregate. Steel Dynamics currently expects to amend the senior secured credit facility in March 2008.

Japanese coal import in February up by 4.7% YoY

According to Japan’s ministry of finance, Japan coal imports in February 2008 increased by 4.7% YoY at 14.7 million tonnes.

PT Koba and police avert new closure threat

ITRI reported that PT Koba’s smelter which was shut down from January 29th to March 17th 2008 will continue to operate, despite a threat from the provincial police chief to close it down again. The threat came when Mr Kamarddin MD of Koba failed to meet a 10 day deadline to return to the island to help the police in their enquiries into alleged illegal mining.

Mr Imam Sudjarwo Bangka Belitung provincial police chief told Bloomberg that “We have received a letter from Koba Tin's lawyer saying that Mr Kamarddin is ill and still in Malaysia. They promise that Mr Kamarddin will soon meet with us. We give Koba Tin the opportunity to resume operations for now. We haven't decided for how long we'll allow them to operate.”

Koba made its first export shipment since January, of 250 tonnes on this week. But it is still not allowed to continue with sub contracted mining activities, following allegations that one sub contractor was involved in mining in a protected forest area. Its own mining operations produce some 500 tonne per month of tin inconcentrate.

(Sourced from www.itri.co.uk)

Southern Company seeks 4.5 million tonnes of coal

Reuters reported that Southern Company Services Inc has called for bids to supply 1.5 million tonnes of coal per year for three years to power plants in Alabama.

A spokesman said that the request for proposals issued Tuesday seeks a three year proposal to deliver coal by barge to three plants and by rail to one plant, totaling 4.5 million tonnes, from January 2009 through December 2011. The plants have distinct requirements, but heat content sought is 11,300 to 11,600 BTUs per ton. Sulfur content requested ranges from 0.9 pounds to 2.0 pounds per million BTUs.

Responses from bidders are due April 7, the request for proposals said.

Southern Company Services a unit of Southern Company, runs power plants serving Southern owned regional utilities in Georgia, Florida, Alabama and Mississippi, plus a number of municipalities and cooperatives in the region.

Tuwairqi Steel to invest in alternative energy

The News reported that Tuwairqi Steel Mills has planned to invest in alternative energy and utilize Thar coal for power generation.

Mr Zaigham Adil Rizvi director projects of Tuwairqi Steel said that "In view of rising international steel prices, we as a local steel producer have been trying to limit the local steel prices so that they remain within customers’ reach and not go beyond its control, but steel prices are shooting to all time high with increasing demand. Steel input is rising with the steel prices in the world."

He said that "Karachi’s atmosphere is business friendly and overall we are satisfied with the present political situation of Pakistan." He added that the new government would work to bring more invertors in Pakistan. But the new government would have to work a lot in energy sector because without power industry cannot be run.

When asked would Pakistan be able to use its huge local coal reserves to produce power for steel industry Mr Rizvi replied that "Steel industry is not much dependent on coal for power generation rather our industry runs on gas, but we are interested to make use of local coal especially Thar coal and surely devised a plan to generate power through local coal in future."

Many countries including China and Korea are erecting total steel structures because of which steel consumption is increasing but steel has an edge over concrete that it can be recycled completely to be used more than once.

Mr Rizvi further added that "We wish that new steel companies come to the steel sector of Pakistan so that more competition benefits our country. The technology that we use in Tuwairqi Steels is very good and efficient; we would use Japanese technology in first phase and German technology in second phase of the steel mill."

Turkey removes AD duty on billet import

It is reported that Turkey has cancelled anti dumping duties on imports of billets from Russia, Moldova and Ukraine effective from March 20th 2008.

Turkish foreign trade officials said that the import taxes are already high and there is no need for additional regulation against dumping.

The AD duty of USD 4 per tonne to USD 7 per tonne has been in effect since 1995.

The market players termed this move as insignificant as
1. The amount is nominal considering the current price levels
2. Billet is already being imported from these countries under the inwards processing scheme which permits the tax free import of products for processing and re export within six months.

UAE cement demand to hit 26 million tonnes by 2011

ArabFinance.com reported that the demand for cement in the UAE is expected to hit 26.2 million tonnes by 2011.

Mr Hassan Awan, investment research associate at The National Investor, said that "The most important driver for cement consumption anywhere in the world is infrastructure and real estate development. Real estate development is at its historical peak in the UAE and with extravagant projects in the pipeline, the demand is expected to be very strong in the future.”

He said that “Large developments in Abu Dhabi like Yas Island, Reem Island and Sadiyaat Island together with projects in other emirates all mean the demand for construction materials in the region will continue to grow.”

The report said that as construction increases on a massive scale in China, India, the Middle East and Africa, these emerging markets are expected to account for 85% of the global demand for cement by 2020 as against 75% in 2005. Consumption of cement across the world is expected to be about 3,130 million tonnes by 2015 and 3,560 million tonnes by 2020. In 2006, cement accounted for 27.3% of the construction materials market globally.

Scania sets a unit in Dubai for equipping vehicles

It is reported that Scania is establishing an industrial facility in Dubai for body working and equipping complete vehicles.

The facility will have the capacity for customization of about 1,400 vehicles per year and is located in a 20,000 square meter industrial site in the expansive Jebel Ali economic free zone in the port area of Dubai. Operations will begin during the second half of 2008 and will initially encompass vehicles for construction haulage, such as tipper and concrete trucks, but the facility will also be adapted for future bus body working.

Mr Per Hallberg head of production & procurement at Scania said that "From here we will deliver high quality fully built vehicles that are adapted to the requirements and operating conditions that apply in the region."

Mr Hallberg said that establishing the plant in Dubai is part of Scania’s growth strategy, which includes a greater focus on vehicles in segments where Scania has a weaker position today than in the traditionally strong long haul segment. He added that "Our collaboration with selected suppliers that are well established in Arab markets, together with the shorter lead and delivery times provided by the Dubai facility, will greatly benefit our expansion in the region."

Pipeline blast cuts Iraqi oil exports

Reuters reported that saboteurs blew up a major oil pipeline in Iraq on Thursday, sharply reducing exports from the south of the country for the first time in years. The resulting blaze was quickly extinguished and officials said that efforts were under way to get shipments back to normal from Iraq's second city of Basra where fighting broke out on Tuesday.

A SOC official said “This morning saboteurs blew up the pipeline transporting crude from Zubair 1 by placing bombs beneath it. The pipeline was severely damaged. Crude exports will be greatly affected because this is one of two main pipelines transporting crude to the southern terminals. We will lose about a third of crude exported through Basra.”

It is the first time since 2004 that the vital southern supply route has been disrupted. Officials had different views about how long it would take to restore supplies and the seriousness of the incident.

Dubai World eyeing Russian maritime, logistics and rail sectors

Investment group Dubai World said that it is exploring opportunities in Russia's maritime, logistics and rail sectors.

As per report, Dubai World and its units have been upping their presence in Russia over the last few months as it seeks to tap into Russia.

Officials of Dubai World said that "Dubai World has recently been exploring major investment possibilities in marine terminals, logistics and rail transport with Russian partners."

Dubai World's port and free zone subsidiary has signed an agreement with Russian Railways to study the development of supply chain infrastructure in Russia.

UAE to set up a nuclear body to assess nuclear energy

UAE news agency WAM reported that United Arab Emirates has decided to set up a nuclear body to assess and develop its peaceful nuclear energy program.

The decision to establish Nuclear Energy Implementation Organization makes UAE the first GCC country to develop nuclear energy as proposed earlier by neighboring states.

Nuclear Energy Implementation Organization, as recommended by International Atomic Energy Agency, will evaluate and potentially realize the transparent nuclear energy program within the UAE. It also marks the beginning of nuclear realization in the region. It will be set up with an initial capital of AED 375 million which goes after the UAE signed in agreement with France to help develop the program in January 2008.

Mr Sheikh Abdullah bin Zayed Al Nahyan foreign minister of UAE said that "Peaceful nuclear power generation represents an environmentally promising and commercially competitive option which could make a significant contribution to the UAE's economy and future energy security."

Under the agreement, UAE will not enrich uranium but will import the key substance from a trusted foreign source. Governments have recently proposed nuclear energy as a possible replacement for hydrocarbon resources, allowing for more oil and gas to be exported.

According to experts, developing nuclear legally is a very long-term process, which involves getting the license, supervision, and all the environmental requirements.

UAE, which holds the world’s fifth largest oil reserves and the world’s 6th largest oil exporter, is joining other countries in the Gulf and other countries in Middle East and North Africa region to address energy security and diversification.

Dubai set to sustain 11% GDP growth in next 8 years – Report

Khaleej Times reported that Dubai’s real gross domestic product, which surged to a record AED 198 billion in 2007, is predicted to sustain an average growth rate of 11% for the next 8 years. As per report, the main driver of this remarkable growth, outpacing the average growth rate forecast for the GCC, will be the non oil sector, growing at a spectacular pace.

Mr Hisham Abdullah Al Shirawi second VC of Dubai Chamber of Commerce & Industry said that the key sectors fuelling the growth include tourism, retail, infrastructure, knowledge industry, transportation, logistics, manufacturing, professional and government services.

He said that "Dubai’s GDP growth was higher than other Gulf countries and major global economies even in 2005. After growing at an average of around 8.5% in 2003, 5.9% in 2004, 6.8% in 2005, and 6% in 2006, GCC’s GDP growth averaged at 5% in 2007."

In contrast, the overall real GDP of the UAE is poised to record a slower growth rate of 6.4% in 2008 and 6.1% in 2009 compared to an 8% surge in 2007. However, nominal GDP measured on the basis of current prices will record almost the same growth trend as in 2007 at 15.7%. Economists forecast that UAE’s nominal GDP will hit AED 805 billion and AED 960 billion in 2008, respectively up by 6.4% and 6.1% in real terms and 15.7% and 19.1% in nominal terms.

Mr Al Shirawi said that Dubai’s non oil foreign trade that surged 33% to USD 185 billion in 2007 from USD 139 billion in 2006, also was poised for a sustained growth. In 2007, Dubai’s non oil exports surged a record 43%t in 2007 to AED 167.9 billion from AED 117.4 billion on the back of a remarkable increase in trade with Iran, Saudi Arabia and Qatar.

The jump in total exports, including re exports, underscored the buoyant economic growth of the emirate. Dubai’s exports have been growing by an average of more than 28% annually during the past five years. In 2006, Dubai’s non oil foreign trade grew 9.15% to AED 523.5 billion compared with AED 479.6 billion in 2005. Dubai’s non oil foreign trade represents about 80% of the UAE’s total trade. Dubai’s imports have also increased by 15.5% from AED 190.4 billion in 2005 to AED 219.8 billion in 2006.

Saudi Arab to train Sri Lankans in the field of exploration

Arab News reported that Saudi Arabia has agreed to train Sri Lankans in the field of exploration and refining oil in the island as an outcome of talks between Mr Ali Al Naimi Saudi minister of petroleum & mineral resources and Mr Abdul Hameed Mohamed Fowzie Sri Lankan minister of petroleum & petroleum resources development.

Mr Fowzie said that "We had fruitful discussions with my Saudi counterpart and we are happy that Saudi has agreed to cooperate with Sri Lanka in areas of mutual interests in the field of oil supply, exploration and investments."

Mr Fowzie said that "We have plans to improve our refining capacity from 50,000 to 100,000 barrels a day and getting Saudi expertise for the proposed expansion will facilitate the successful implementation of the project." He added that Sri Lanka needs a cracker to convert crude into diesel and petrol which would cost the government some USD 400 million. He requested his counterpart to recommend that the OPEC fund assist the island in the purchase of this plant.

Mr Al Naimi requested the Sri Lankan delegates to contact local businessmen and leading Saudi banks for investments in oil exploration projects. He said Saudi experts could visit Sri Lanka and offer them the required training in the field of exploration.

Sri Lanka buys 10% of its oil requirements from Saudi and its main supplier is Iran which delivers 70% of its demand. Sri Lanka also buys a substantial quantity of crude from Malaysia.

Dubai approaches contractors for sixth creek crossing

MEED reported that Dubai's Roads & Transport Authority has invited selected contractors to express interest in the contract to build the 6th creek crossing bridge.

The AED 2.5 billion arch shaped bridge will link Jadaf and Business Bay with the planned Lagoons development and Dubai Festival City. It will also provide access to an island in the creek, which the local developer Sama Dubai plans to build an opera house on.

The bridge will be 1.6 kilometers long, 64 meters wide and 15 meters above the water level. It will have 12 lanes for road traffic and a track for the Green Line of Dubai Metro. It will be able to handle around 20,000 vehicles an hour. The project also includes 12 kilometer of new roads and 22 intersections.

The work is due to be completed in 2012. US based FXFowle designed the bridge.

Abu Dhabi announces projects worth AED 768 billion in 2008

According to the latest report by Abu Dhabi Chamber of Commerce & Industry, the value of projects announced in the emirate since January 2008 amounts to some AED 768 billion.

The report said that "The projects reflect the unprecedented revival witnessed by Abu Dhabi in fields of infrastructure, real estate, residential, tourist, hotel, industrial and health or service projects." It added that the value of infrastructure and real estate projects to be executed over the next 5 years is expected to reach AED 200 billion.

Mr Falah Al Ahbabi director general of Abu Dhabi Urban Planning Council said that Abu Dhabi government will shoulder 40% of the value of projects while the remaining 60% will come from the private sector.

Some of the prominent projects under way are

1. Shahama Saadiyat road. The 10 kilometer stretch, built at a cost of AED 1.4 billion, has 10 lanes and will be completed in August 2008. Aldar Properties and the Abu Dhabi Tourism Development & Investment Company are supervising the project.

2. Develop and improve Al Salam Street of Abu Dhabi at a total cost of AED 3 billion to AED 5 billion. Work is under way on flyover junctions in addition to an underpass and a tunnel with a length of about 3 kilometers. Al Salam street will have four lanes in each direction and the ADTDIC is holding talks with Gulf Leighton of Australia to build a tunnel linking Abu Dhabi Island with Al Hudeiriyat Island.

3. The Abu Dhabi government has also earmarked AED 4 billion to develop Al Ain where several projects will be undertaken. They include highways, government buildings, service facilities as well as the expansion of the building of the Higher Colleges of Technology.

4. Work has started on a new aluminum and glass factory worth AED 80 million at Abu Dhabi Industrial City. The Belgian Aluminum and Glass Company, which owns the plant has announced an agreement with Alcoa to benefit from its experience to meet the needs of the local real estate market. The plant will have a production capacity of 360,000 square meters a year.

5. Two labor cities to be built by Aldar Properties in Abu Dhabi and Al Ain. The cities, to be completed in 2010, will accommodate 150,000 workers.

6. Work has started on Damac Properties’ tower, the 24 floor Marina Bay, at Abu Dhabi Star project on Al Reem Island. The tower overlooks the sea. The $500m tower will have retail shops, offices and luxury flats.

7. New oil and gas sector projects have also been initiated. German and Indian firms have won USD 2 billion contracts to build the Abu Dhabi Crude Oil Pipeline.

The report also revealed that the National Investment & Property Management Establishment will launch AED 5 billion worth of projects focusing on the tourism and commercial sector in Abu Dhabi. These include the pact signed by the NIPME with the Rotana Hotel Group to manage a new hotel worth AED 400 million in Abu Dhabi Marina. The hotel will have 600 rooms and will be completed within 3 years. The projects also aim to create more industry in the emirate including the building of steel, glass and aluminum factories.

Iranian and Swiss firms signs gas deal

According to Iranian oil ministry news agency, Iran and Switzerland has signed a major energy deal that will allow Switzerland to tap Iranian gas, a move that could lessen Europe’s dependence on Russian gas.

The contract signed between National Iranian Gas Export Company and Elektrizitaetsgesellschaft Laufenburg will allow Switzerland to import 5.5 billion cubic meters of natural gas per year from 2011. Ms Micheline Calmy Rey Swiss foreign minister has signed the agreement with her Iranian counterpart Mr Manouchehr Mottaki in Tehran last week sparking criticism from the US.

The deal was described by Ms Calmy Rey as a strategic interest as part of the country to diversify its energy sources, defending it from the US rebuke. Ms Calmy Rey said that "It is planned that natural gas from Iran together with natural gas from Azerbaijan will one day feed into a gas pipeline running from Greece via Albania to Italy."

Mr Gholamhossein Nozari Iranian minister of oil added that the gas will be pumped to Turkish border and delivered to EGL. Financial details of the deal were not disclosed.

DMC and DED sign agreement to enhance support service

UAE News Agency WAM reported that Dubai Department of Economic Development and Dubai Maritime City have signed a partnership agreement to enhance the quality of support services offered to investors and customers.

Mr Amer Ali CEO of Dubai Maritime City and Mr Ali Ibrahim deputy director general for executive affairs at Dubai Department of Economic Development has signed the agreement.

As per the agreement, Dubai Maritime City will use the license and business registration system used by the Dubai Department of Economic Development to issue licenses for individuals, companies, corporations, maritime consultation offices and all related maritime activities that work within the city. This initiative also highlights the effectiveness of Dubai Department of Economic Development’s business registration and its keenness to share its experience and expertise with other government departments and authorities in Dubai.

Mr Ali Ibrahim said that "Through this agreement with Dubai Maritime City, we are reiterating our commitment to work together on initiatives that will support the development and progress of Dubai. We will share best practices and experiences, and explore mutually beneficial opportunities, which will enhance the quality of support services offered to investors and customers."

Chinese SS output in 2008 to cross 9 million tonnes

Interfax China reported that China's stainless steel output is expected to grow by nearly 25% YoY to 9 million tonnes in 2008.

According to statistics from the China Stainless Steel Enterprise Association China produced 7.206 million tonnes of stainless steel in 2007 up by 36% from the previous year, while the country's apparent consumption grew by 10.59% YoY to 6.58 million tonnes last year down by 3.61 percentage points from the previous year.

China to close 70 million tonnes coke capacity in 2008

Mr Hou Shiguo inspector of the industry strategy department under the National Development & Reform Commission while speaking at the sidelines of recent coke meeting said that China's primary mission on the coking industry is to weed out some 70 million tonnes backward capacities contributed by below 4.3 million small ovens.

As per report, about 12 million tonnes was washed out in 2007 in accordance with the government's 10 million tonnes elimination target and some 70 million tonnes to 80 million tonnes should be closed in 2008.

He said in order to carry out the scientific concept of development and energy saving polices the coking industry must be consolidated. With elimination of below 4.3 million small coke ovens, it also hopes to build some large and modernized new machinery ovens.

Mr Hou said there are around 1000 coking mills now, but he wishes to see down to 300. In general, the small coke ovens are a lot, scattered, energy consuming and polluting.

Mr Hou noted that these years, coke output will be checked while launch of new items will be controlled in terms of number and quality, especially in Shanxi and Hebei provinces, where resources are short and environmental protection is pressing. In Some suitable places, large machinery ovens can be installed. He said still, the international market has huge demand for coke from China and it is possible small ovens may revive somewhere the elimination campaign remains tough.

Chinese tin exports slump and imports soar

ITRI reported that Chinese official customs figures released show that China’s refined tin exports fell by 99.8% YoY to only 3 tonnes in February 2008. Meanwhile imports were up by 173% YoY to 1,176 tonnes.

The release said that China’s net trade position has been greatly changed since the middle of last year by booming demand and supply constraints, with exports further discouraged by the imposition of a 10% export tax from the start of 2008.

Imports in January to February 2008 have amounted to 2,547 tonnes up by 93.4% YoY with most of the tin coming from Bolivia by 698 tonnes and Indonesia by 797 tonnes.

(Sourced from www.itri.co.uk)

Baosteel commissions new high strength HR line

It is reported that China’s first hot rolled high strength steel line put into production officially on March 25th 2008, five days ahead of the scheduled time.

HR high strength steel is one of the important products of Baosteel Branch and is mainly used in the machinery manufacture industry.

As per report the annual production for the hot rolled high strength steel line will be 500,000 tonnes in order to meet high quality steel demands from the market.

Taiyuan plans to setup service center in Shenyang

It is reported that in order to explore stainless steel market in the northeast of China and to raise economic profit and integrated competitiveness in Shanxi Taiyuan Iron & Steel Co, Tisco plans to set up Shenyang Tisco Stainless Steel Distribution Company Ltd in Dongtai Stainless Steel Industrial Garden in the city of Shenyang, province Liaoning.

As per report, the registered capital of the company is CNY 2 million.

Jigang raises prices of medium and heavy plate

It is reported that Jinan Iron and Steel has increased ex work price of medium and heavy plate for CNY 300 per tonne on March 27th 2008, but not released the formal documents.

The ex work price of 16mm to 20mm Q235 medium and heavy plate is CNY 6040 per tonne after the price adjustment. Medium and heavy plate market in Jinan also uplifted slightly its price for CNY 50 per ton since affected by the price uplifting of steel mills.

As per report most suppliers began to raise its market price. Price of 14mm to 25mm plate of Jigang was CNY 6200 per tonne and CNY 6200 per ton for 14mm to 25mm low ally plate.

Liaoning Province to give special compensation for capacity elimination

According to obligation papers signed by Liaoning provincial government with China’s National Development & Reform Commission, Liaoning province should close down 750,000 tonnes of outdated iron making capacity and 1.4 million tonnes of steelmaking capacity by the end of 2007, including small BFs and converters in many steelworks.

In order to complete the mission and advance the elimination in order, Liaoning province has decided to arrange CNY 18 million as special compensation for steel capacity elimination in 2008. This measure taken by Liaoning Province will play an active role in promoting the elimination of backward steel production.

WISCO gets ROHS attestation for silicon steel

It is reported that Wuhan Iron & Steel Group Corporation that the listed company's NGO silicon steel has passed ROHS attestation taken by SGS.

As per report this is the first time Chinese steel industry has got this attestation, suggesting that China's export of electrical and electronic products using Wuhan Steel made NGO silicon steel would not be held back for environmental problems.

ROHS attestation prevents the electrical and electronic products from carrying injurants which is not allowed to be shipped into the European market.

In order to handle this, Wuhan Steel started working on quality control of silicon steel. As China's largest and most complete CR silicon steel production base, Wuhan Steel now has a 1.2million tonnes per year capacity of CR silicon steel that is applied in transformer, motor and home appliance sectors.

(Sourced from MySteel.net)

Chinese contractor insists on payment from ZISCO

It is reported that the Reserve Bank of Zimbabwe is yet to release the first tranche of payment to a Chinese company contracted to refurbish the Zimbabwe Iron and Steel Company’s Number Four blast furnace a situation that is likely to delay the project which was initially set for completion in July 2008.

Acting Mr Alois Gowo MD of ZISCO told Mining Weekly that the Chinese contractor has insisted that this payment be made before work on the project resumes.

He said “We have been negotiating with our bankers and we would like the first payment be made soon. As of now, nothing has been done and the Chinese company is just waiting for the money to be released.”

ZISCO has said that its monthly output will increase to 25,000 tonnes after the refurbishment of the blast furnace. It has also projected that production will reach a modest 63,000 tonnes per month the closest tally to its full capacity.

Xigang daily output of bar in No 2 mill exceeds 2,000 TPD

It is reported that the Bar line in No.2 Rolling Mill in Xigang Group recently produced 2,045 tonnes of 14mm rebar and created a new daily output record in bar line.

No.2 Rolling Mill is the key plant in Xigang Group and there are one bar line and ore high speed wire line. In order to maximize the production capacity of the second wire rod rolling mill’s bar, Xigang Group carried out greatly transformation on the bar production line, and the production capacity effectively be improved

Investec Ireland invests USD 3.8 million in Chinese firm

It is reported that Investec Ireland's Wealth Management unit has completed a USD 3.8 million investment in China's Petrocom Energy on behalf of a group of Irish investors.

Petrocom's core business involves the construction, ownership and operation of coal blending facilities in China. These facilities enable the blending of varying ranks of coal to offer customers mainly coal fired generators a product with a guaranteed consistency of quality.

Petrocom is the second Chinese private equity deal Investec Ireland has closed on behalf of clients since last December.

Baogang forms Bagang Xinjiang Jinkunlun mining company

It is reported that recently, Bagang Xinjiang Jinkunlun mining company comes into existence. It is established by Baogang Group Bagang Company, Xinjiang Baodi mining company which is under Xinjiang Geology and Mineral Resources Bureau, Bazhou Tianshan geological mining company.

The registered capital of the new company is CNY 30 million, Bagang company invested CNY 18 million, accounting for 60% stock of the company. The company will rely on the technology and management advantages of Bagang Company and Xinjiang Geology and Mineral Resources Bureau to exploit iron ore resources in Bazhou County. It is understood that the initial exploration iron ore reserves is over 100 million tons at present.

Bagang Company and Xinjiang Geology and Mineral Resources Bureau expressed that they will make effort to support the operation of this new company.

Baosteel starts first COREX gas based power plant

It is reported that TRT power generation machine, which was designed and manufactured by self technology in China, was recently constructed in Pugang under Baosteel Group.

It is the first power generation machine utilizing COREX gas in iron and steel industry in China and it has paved a new way for energy saving, emission reduction and clean production in metallurgical industry.

A great deal of COREX gas will be produced in the production process of COREX furnace, TRT power generation machine can produce 6,000 degrees electricity per hour.

Gansu Province to monitor plans for energy saving and emissions

According to Economy Commission of Gansu Province, to secure the targets having been put into practice and further boost the plan of 2008 for energy saving and emission decreasing, Gansu has decided to check the results of the 2007 plans for energy saving and emission decreasing by 14 companies, who are under close monitoring and also the involved offices, and these who didn’t complete the plan will be punished.

In 2007, Gansu Province set 40 targets of ten aspects in order to cool the growth of high energy consuming and high pollution industries, demolish the outdated capacities, and implement the key projects for energy saving and emission decreasing, and the government break the targets down to concerned local offices that are directly under the authority of provincial government and key companies in industries like oil chemical, nonferrous metal, metallurgy and construction materials and so on.

Coal reserves in province Henan would finish in 25 years

According to capacity at present, current coal resources in Henan province of China, would be used out in 25 years. The key and crucial mission for coal industry in province Henan is to raise resources exploiting ability.

Province Henan has cumulatively produced 935 million tonnes of crude coal in the past five years, taking 8% in total output in China.

According to development program in “11th five year plan in coal industry in Henan province, coal output would remain around 200 million tonne per year for a long term. Now coal reserves in the province is 8.8 billion tonnes, but there are only more than 5 billion tonnes could be exploited. So it is very important for Henen Province to enhance the resources exploiting ability.

Iron ore price negotiations – Metinvest and IUD agree

Metinvest Group announced that since April 1st 2008, the price of iron ore concentrate and pellets for Alchevsk Iron & Steel Works and Dneprovsky Iron & Steel Integrated Works named after F Dzerzhinsky will be increased by 65%.

Within the framework of the long term contract Industrial Union of Donbass and Metinvest Holding LLC signed the additional agreement to the aforesaid contract stipulating the new price. The price has been adjusted accordingly with the raising global market iron ore price index by 65%.

The release added that “The management of both parties is content with the further developing long term cooperation between two companies. This will have a beneficial effect on Ukrainian mining and steel industry as a whole and strengthen the positions of the Ukrainian steelmakers on global markets.”

DNEN starts importing Russian coal

Millennium Capital reported that Ukrainian power utility Dniproenergo has announced that they have started importing Russian semi anthracite coal in volumes of around 60,000 tonnes to 70,000 tonnes per month.

Mr Bogdan Kochubey an analyst with Millennium Capital said that “The previous government starved GenCos of imported thermal coal last year so as not to lose its political image of a domestic coal industry champion. This year imports of coal are planned in advance and the statistics confirm their rise so the purchases of Russian coal by DNEN fit in this trend.”

Mechel secures USD 1.5 billion loan for Oriel buy

Reuters, citing a banking source, reported that Mechel's USD 1.5 billion, 12 month bridge loan that backs its acquisition of ferrochrome producer Oriel Resources OLR.L pays a margin of 260 to 290 basis points over LIBOR.

The banking source said on Friday the margin is 260 bps for the first six months, rising to 290 bps thereafter. The intention is for the bridge to be taken out via the IPO of Mechel's mining division.

ABN AMRO and Merrill Lynch are coordinating mandated lead arrangers and book runners and they are currently inviting lenders to join as mandated lead arrangers with commitments of USD 150 million.
Mechel had announced the USD 1.5 billion deal on Wednesday. The all cash deal will allow Mechel to more than double capacity of ferroalloys used to make steel and also gives it control of chromite and nickel mines in Kazakhstan which Oriel was preparing to bring on stream.

RusAl bauxite miners strike spreads

Moscow Times reported that more than 100 miners who spent the night 700 meters underground in UC Rusal's Red Riding Hood bauxite mine in Sverdlovsk region have refused to return to the surface until their demands for better pay and working conditions are met.

The strike is set to spread to another bauxite mine controlled by Rusal, the Kalyinskaya, with 700 Kalyinskaya miners announcing their support for the strike.

RusAl, which owns the mine through a subsidiary, said that it refused to recognize the strike, which began Wednesday, because the miners at the Little Red Riding Hood mine in the Urals town of Severouralsk have not officially submitted a list of demands. Ms Yelena Shuliveistrova a spokeswoman of RusAl said "There can be no talk of any strike. Considering the fact that no demands have been put forward by the employees, this is about an illegal refusal to work, which is a violation of the law."

A representative of the Sverdlovsk Regional Prosecutors Office said in a statement that prosecutors, members of the Independent Miners Union and the director of SUBR the RusAl subsidiary that runs the mine had been in talks with the 107 miners and come out with a list of demands. It said that "The reason the miners have not surfaced is their dissatisfaction with their salaries, which they want raised by 40%.”

Zlatoust’s EAF shop No 3 celebrates 40th anniversary

It is reported that ESTAR Group’s JSC Zlatoust Metallurgical Plant’s electric furnace melting shop No 3 has celebrated its 40 anniversary.

The shop was commissioned in 1968 when its assets consisted of 4 electric slag remelting furnaces, 4 induction furnaces and vacuum arc furnaces. In late 1968 vacuum arc furnace with 2 casting molds was commissioned.

Production of 26 steel grades was developed in the shop with electric slag remelting furnaces in just the first year of operation. Currently the shop produces over 100 steel grades.

Now the shop is equipped with induction furnaces, electric slag remelting furnaces, vacuum arc furnaces and a 2 strand half continuous billets casting machine for the production of round section electrodes and it produces up to 2,500 tonnes of products per month including stainless, construction, tool steel grades, high speed steel tools and alloys.

In 2005 an electric slag remelting furnace 5VG was launched in the shop for production of hollow ingots billets for pipe industry allowing a complete exclusion of the first refining. Currently ZMP has developed production of hollow ingots with the length of up to 3.5 mm and wall thickness of 90mm to 115 mm.

Interpipe NPP gets M-1003 certificate extension

FIS cited Mr Dan James the auditor of Canada's International Quality Consultants Inc as saying that certificate of conformity with the requirements of the standard of the Association of American Railways 1003 for Interpipe Nizhnednepropetrovsk Pipe Plant was recommended to be extended for three years.

Interpipe NPP is Ukraine's only enterprise making more than 240 dimension types of wheels and bands for railway transport in more than 60 countries. The plant also specializes in production of welded and seamless pipes for production and transportation of oil and gas, submerged pumps and electric engines. It makes 34% of Ukraine's pipe products.

Raspadskaya Q4 net profit up by 95.5% YoY

Interfax reported that Russian coal producer Raspadskaya increased net profit in the fourth quarter of 2007 95.5% YoY to RUB 1.169 billion under Russian accounting standards.

Russian GDP growth in February 2008 reported at 8.2%

RIA Novosti reported that GDP growth in Russia reached 8.2% in February 2008 and 7.8% in January to February.

Russia economics ministry said in a report that "The economic growth rate in February was backed by high consumer and investment demand against the background of a rising manufacturing industry."

Russian GDP grew by 7.9% in February 2007.

Russia to double mineral exploration spending to 2020

It is reported that Mr Yuri Trutnev Natrual Resources Minister or Russia said Russia will double state spending on resource exploration to 2020 to USD 23 billion in a move to boost the country's stagnating oil production.

He said that "We believe that if we wait for one more year it will not improve the situation with mineral resources in Russia."

Mr Yuri Trutnev said in 2007 Russian state spent USD 850 million or 0.5% of budget spending, on exploration compared with 2% to 5% in other countries. He expects to add 4,000 tonnes of gold reserves, 863 million carats of diamonds, 420,000 tonnes of lead and zinc, 1.3 million tonnes of copper and 3 billion tonnes of coal.

Mr Valery Nesterov an analyst at Troika Dialog, a Moscow-based investment bank said "This is good news not only for Russia, but for international markets as well. He said "Despite the current problems building up in the oil sector, the increased spending means that production will develop naturally, allowing Russia's to fulfill its obligations to global markets."

Gazprom board approves chemical and gas processing plans

It is reported Gazprom’s board of directors have approved the development strategy for Gazprom’s gas chemical and gas processing facilities and has directed the management committee for arranging its implementation.

With the approved strategy, the main aim of Gazprom’s core business activity in the gas processing and gas chemical sectors is an increase in extraction level and efficient utilization of valuable components of natural gas and associated petroleum gas with the view of their further processing into a highly liquid product with a high added value.

The strategy envisages the minimization of the production prime cost in particular through optimizing logistics costs & utilization of advanced technologies and improvement of the finance and managerial control system while executing investment projects in gas chemical business to reach higher level of efficiency.

At present, Gazprom is carrying out investment projects for the construction of gas chemical facility in Novy-Urengoy, reconstruction of Gazprom dobycha Astrakhan and Gazprom dobycha Orenburg gas processing capacities. Sibur Holding has also committed executing a program aimed at developing APG processing capacities.

Average price of Russia's Urals oil up by 75% YoY

RIA Novosti reported that the average price of Russia's Urals blend oil was USD 90.6 a barrel in January to February 2008 up by 74.6% YoY.

The report added that the average price for Urals oil, a benchmark for the national budget was USD 91.7 per barrel in February.