SAIL posts best ever February results

It is reported that, maintaining thrust on production to meet the growing demand for steel in the domestic market, Steel Authority of India Limited has achieved best ever February performance by producing 1.1 million tonnes of saleable steel up by 7% YoY over February 2007. SAIL also recorded best ever February production of hot metal at 1.24 million tonnes and 1.14 million tonnes of crude steel, both showing 6% YoY growth over February 2007.

Consequently, during the April 2007 to February 2008 period, SAIL produced 11.8 million tonnes of saleable steel up by over 400,000 tonnes over April 2006 to February 2007 period, with an average capacity utilization of 117%. Key techno economic parameters also improved in February 2008. Coke rate at 524 kilogram per tonne of hot metal was 3% lower and energy consumption at 7.05 giga calories per tonne of crude steel reduced by 1%.

Production through the energy efficient continuous casting route crossed 7.5 million tonnes up by 9% YoY as against February 2007. With thrust maintained on production of value added and special steels, SAIL plants produced nearly 3.6 million tonnes of such items in February 2008 up by 49% YoY. The captive mines of SAIL produced 2.2 million tonnes of iron ore in February 2008 and met 100% requirement of the plants.

Coal production from captive collieries was increased by 50% YoY during April 2007 to February 2008 period. During February 2008, SAIL's central marketing organization achieved sales of 1.03 million tonnes up by 3.7% YoY. With SAIL entering its 50th year of production, February 2008 was a memorable month for the company.

The month's other highlights include

1. Payment of INR 6.73 billion to the government by SAIL as interim dividend for the financial year 2007-08

2. Inauguration of Bhilai Steel Plant's INR 112.62 billion expansion and modernization program

3. Presentation of the FICCI Annual Award 2006-07 to SAIL for outstanding achievement in the category of Rural & Community Development Initiatives

4. Signing of a shareholder's agreement with Jaypee Associates Limited to form a JV company for setting up a 2.1 million tonne capacity cement plant at Bokaro

Mr Paswan to meet PM with concerns of Indian steel makers

Mr Ram Vilas Paswan union minister of steel, chemicals and fertilizers reviewed the progress of the new mega steel projects and brown field expansion plans of existing manufacturers with all major steel producers of the country in a meeting where representatives of state governments were also present on the occasion.

Mr Paswan said that “The consumption of steel in the country is increasing at a faster rate than the addition in capacity and there could be a short fall in production by 2020. Therefore, there is a need to remove the bottlenecks in the implementation of the projects.” He, however, added that the country will produce 124 million tonnes of steel by 20011-12, exceeding its demand.

Mr Paswan said that “Land acquisition, extension of railway line, expansion of port facility, allocation of mines and speedy environmental clearance are among the major problems. Some of the promoters are even prepared to fund the extension of railway track for timely completion of the projects and the amount could be debited from the freight later.”

Mr Paswan added that “Land acquisition and allocation of mines are two critical areas and depends upon the concerned state governments. He would seek a meeting with the Prime Minister and request him to intervene on some of the issues.”

TATA Steel outlines Vision 2012

TATA Steel hopes to be the global steel industry benchmark for value creation and corporate citizenship and has outlined its vision for 2012 which entails doubling of returns on investment from around 16% at present to 32% by 2012.

Mr B Muthuraman MD of TATA Steel while addressing newspersons on the sidelines of the TATA Steel Founder’s Day celebrations said the “Vision 2012” has been co created by the group’s manpower resources in Jamshedpur, South East Asia, the UK and the Netherlands. Besides doubling of the ROI and value creation, the vision also envisages safety and environmental aspects and the TATA Steel Group’s aspiration to become an employer of choice.”

Mr Muthuraman said that “The basic contours of the plan will be to focus on improving current operations by reducing costs, executing projects faster and achieving synergy with Corus. We will also reengineer and restructure the Corus plants.”

Mr Philippe Varin CEO of Corus while answering to a question that if the target of doubling the TATA Steel Group’s ROI by 2012 is achievable said that “It is a stiff target. But if we can do it, it will be a new benchmark in value creation.”

Mr Varin informed that USD 300 million is being invested on a new CR mill and galvanizing plant at Corus’ Ijmuiden facility in the Netherlands. He said that “The idea was to emerge as a leading player in the automotive steel business.”

He added that an investment of USD 260 million is being made at Corus’ manufacturing facility in the UK, where rails up to 105 meters in length would now be manufactured and initiatives have also been taken to upgrade production of tyre cords.

Reunion Industries to sell pressure vessel business to Everest Kanto

US based Reunion Industries Inc announced that on February 29th 2008 it has entered into an Asset Purchase Agreement to sell the business and substantially all of the assets and liabilities of its pressure vessels division to an affiliate of Everest Kanto Cylinder Limited for cash consideration, subject to adjustment, of USD 64.25 million to be paid at closing.

Reunion Industries is currently operating as "debtor in possession" under the jurisdiction of the United States Bankruptcy Court for the District of Connecticut, Bridgeport division and such sale will require Bankruptcy Court approval. The transaction is also subject to higher and better offers being made for the division in the bankruptcy proceeding. It anticipates that such Bankruptcy Court approval process will take approximately 4 to 6 weeks.

Reunion’s pressure vessels division, located at McKeesport in Pennsylvania, manufactures and sells large seamless pressure vessels for the containment and transportation of pressurized gasses. The buyer is committed to employing all of the existing employees and intends to operate and grow the business at its present facility.

Mr Kimball Bradley president of Reunion President said “This divestiture is in the best interests of everyone connected with the Company, including its employees, customers, creditors and shareholders.”

Reunion Industries manufactures and markets a broad range of metal products and parts, including seamless steel pressure vessels, fluid power cylinders and metal bar grating. Reunion intends to emerge from Chapter 11 after the completion of the sale.

Indian iron ore spot prices in upward trends

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has announced that the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on March 3rd 2008.

The change is with respect to prices posted on February 25th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Sumitomo Metals and Sumitomo Corp bag major wheel order from Indian Railway

Sumitomo Metal Industries Ltd and Sumitomo Corporation have won a major contract for 11,000 forged railway wheels from Indian Railways. These wheels will be used mainly on suburban trains running in the Mumbai district of India. The order would be delivery from May 2008 to February 2009.

Order details
1. Product: Railway wheels for trains
2. Quantity: 11,000 units (4,600 tonnes)
3. Delivery: From May 2008 to February 2009

Sumitomo Metals is now increasing its capacity to produce railway wheels at the Railway, Automotive & Machinery Parts Company's Osaka Steel Works with the investment of JPY 2 billion. Sumitomo Metals will complete this upgrade by the end of March 2008, which will boost annual output from 200,000 units to 240,000 units from April.

Sumitomo Metals' forged railway wheels have earned high acclaim abroad for their quality and demand for this product is increasing in India.

Sumitomo Metals and Sumitomo Corporation last received a large order of railway wheels of more than 10,000 from Indian Railways 15 years ago in 1992.

TATA shifts focus from USD 3 billion investment in Bangladesh

The Daily Star reported that with no progress on the massive power, steel and fertilizer project since negotiations ended in 2006, TATA is shifting its focus away from its USD 3 billion investment plan for Bangladesh and Mr S Manzer Hussain resident director of TATA Group is leaving Bangladesh this week without replacement.

The report cited Mr Manzer as saying that "Bangladesh has always been at the top as per our priority list, but the fact is of late we had to divert our attention to some other locations and at later stage we may come back when decisions are taken.”

Mr Manzer further added that all the products TATA proposed to produce are in strong demand in Bangladesh. He said "Bangladesh has a shortage of power, fertilizer and steel. The proposals are placed for basic industries, which are needed for the development of any developing nation. These are going to be one of the foundations for accelerated economic growth."

He added that “In terms of investment proposals if something is getting delayed in one place obviously the focus must shift to other places. And when the focus shifts to other places the resources get locked up and when the resources get locked up in other places then they may not be available immediately for some other places.”

On April 20th 2006, TATA formally submitted a USD 2.5 billion investment proposal for setting up a 1,000 MW power plant, a steel mill with an annual production capacity of 420,000 tonnes and a 1 million tonne capacity fertilizer unit in Bangladesh. Later, TATA revised its proposal saying it would invest around USD 3 billion. However, Bangladeshi government was unwilling to make a decision before the scheduled general election.

JSPL setting up OP Jindal Institute of Technology in Chhattisgarh

Jindal Steel & Power Limited has announced that it would start an engineering institute called OP Jindal Institute of Technology at Punjipathara near Raigarh in Chhattisgarh in the current year. The construction work was commenced in July 2007 and is scheduled to be completed by April 2008. The engineering institute is being developed on 30 acre land, which is situated in the OP Jindal Industrial Park at Punjipathara.

JSPL said that the institute would be first and latest technical institution being started in the eastern Chhattisgarh by any private company. It added that "Courses on various engineering branches will be conducted here. About 1000 students will take part in these 4 years engineering courses of civil, mechanical, electrical and metallurgy engineering here. Campus will also have other facilities such as modern workshop, library and sports ground. Quality residential blocks for the teaching staff along with separate hostel facility for male and female students will also be provided."

Mr Naveen Jindal executive vice CMD of JSPL said that "OP Jindal Institute of Technology will help in improving the level of quality education in the field of engineering in fast growing Chhattisgarh. The well groomed engineering graduates from the institute will be able to get employment opportunities in Chhattisgarh and other parts of India and help the nation develop."

JSPL is the largest private sector company in Chhattisgarh with an investment commitment of over INR 20,000 crore. Jindal Power Limited, Nalwa Steel and Power Limited are other proposed projects of OP Jindal group in Chhattisgarh. This engineering institute will be able to fulfill the growing needs of qualified manpower in the field of engineering.

CIL welcomes coal regulator

BS reported that Coal India Limite has welcomed the government's decision of setting up a regulator for the coal industry as part of the budgetary exercise.

Mr PS Bhattacharya chairman of CIL termed the move as a step in the right direction. He claimed a coal regulator was needed as private players were entering the coal space.

Mr Bhattacharya expects that the coal regulator would ensure scientific mining and conservation of coal and aspects relating to environmental preservation and sustainable social development. He claimed that the coal regulator would ensure safety of coal miners along with formulation of an equitable and fair wage policy.

Five trapped inside abandoned mine in Asansol

PTI reported that 5 persons were reportedly trapped and two of them died inside an abandoned coal mine at Niamatpur 10 kilometer from Asansol, after a portion of it gave way.


Mr Chandi Chatterjee local Congress leader told PTI that 500 square feet area behind an Eastern Coalfields Ltd workshop in the area, where coal mafia was active, had subsided on Saturday night. Slippers and baskets of five persons, who had been sent to the abandoned mine for illegal mining, were seen at the spot.

Mr Shekhar Sharan GM of ECL’s Niamatpur range said that complaints were received on Sunday night and the company's security wing is looking into the issue. He said “We will increase surveillance in areas around abandoned mines to check incidents of illegal mining.”

Gandhidham Chamber calls off the proposed strike at Kandla Port

It is reported that Gandhidham Chamber of Commerce & Industry has called off its proposed indefinite strike at Kandla Port after receiving assurance from chairman of the port and all port operations are going ahead in normal way.

However next round of meeting is expected soon between the two parties to discuss further action in regards to same.

Cycle makers to oppose steel price hike

It is reported that cycle makers have decided to address the recent price hike in steel prices despite reduction in custom duty on steel scrap from 5% to 0% and central value added tax from 16% to 14%.

Mr Charanjit Singh Vishvakarma president of United Cycles Parts & Manufacturers Association said that "This could have brought down the prices by INR 1,500 per tonne approximately, but the reverse has happened. We are not able to understand the reason for it."

Mr Arvind Rai senior VP of Northern India Chamber of Commerce & Industry said that “The reduction in excise duty by 2% has meant little. Steel producers have rather increased the prices, because the finance minister did not even touch the topic of price regulatory mechanism to control steel prices. On the other hand, export of iron ore has increased by 9% within the last 6 months."

Meanwhile, United Cycles Parts & Manufacturers Association has called for an urgent meeting on March 4th 2008 to discuss the union budget and the steel prices. Members said that further course of action regarding the prices will be decided after the meeting. They highlight that prices of steel have increased from INR 40,000 per tonne to INR 41,500 to INR 41,800 per tonne.

HEC to become INR 40 billion company in 4 years

IANS reported that Heavy Engineering Corporation is all set to post profit for the second successive year and will be worth INR 40 billion in the next 4 years.

Mr GK Pillai CMD of HEC said that "HEC should not be seen as an ordinary engineering company. It will emerge as a strategic engineering company worth INR 40 billion in the next 4 years. We focus on 2 things, first is the pro active marketing and second is customer care. We try to complete the work on time and also make sure that our customers are happy in all the fronts."


Mr Pillai said that "We have adopted a pro active marketing strategy which was missing in the past. Our aim is to make it one of the best PSUs in India. At present we have cyclic production. If there is a boom in the steel sector, we get orders. We are also making efforts to produce static products, which will be needed every year. We are trying to set up a railway wheel making factory and if it becomes a reality, our turnover would be at least INR 5 billion per annum."

Recently, HEC bagged an INR 5 billion order from the Bhilai Steel Plant and is now undertaking projects for the Steel Authority of India Limited, Indian Space Research Organization and Indian Railways. HEC is also planning to set up thermal power plants.

Essar Group to invest INR 50,000 crore in Gujarat

BS reported that Essar group has chalked out plans to invest INR 50,000 crore over the next 3 years in Gujarat.

Mr Shashi Ruia chairman of Essar group said that “So far, we have invested INR 25,000 crore in the state and we aim to invest INR 50,000 crore more for various projects, including steel, SEZ, oil and gas and power in the next 3 years.”

Earlier, Essar Oil had announced that it aims to increase the capacity of the Vadinar refinery from 10.5 million tonnes to 34 million tonnes per annum with an investment of about INR 24,000 crore.

Essar is aiming to enhance its steel capacity from 4.6 million tonnes to 9 million tonnes in Gujarat. Besides, it is planning to set up two 1200 MW power project with INR 8,000 to INR 10,000 crore investment.

Navyug Engineering to set up Astharanga Port in Orissa

BS reported that Hyderabad based Navyug Engineering Company Limited is planning to invest INR 1,900 crore in the first phase for setting up of an all weather port at Astharanga in the mouth of Devi river in Puri district of Orissa and will sign a MoU soon for the purpose.

Navyug Engineering has proposed to invest INR 1,500 crore for the port and INR 400 crore for railway connectivity. The proposed port at Astharanga will have a cargo handling capacity of 20 million tonnes per annum in the first phase.

Mr Priyabrata Patnaik principal secretary at state commerce & transport department said that “The proposal is awaiting the nod of the state finance department and will be sent to the chief minister after the required approval from it. The MoU with Navyug will be signed after that.”

Mr Patnaik said that the port will be utilized for exporting the finished products from Orissa, supply of coal from Talcher to the south India based steel and power plants, aluminum, alumina, ferroalloys, auto spares. Similarly, it would be utilized for import of items like limestone, caustic soda and sulphuric acid. The first phase of the port was expected to be commissioned by 2011."

JSW Bengal to build 3 million tonnes cement plant

It is reported that JSW Steel Group’s subsidiary JSW Bengal will be setting up a 3 million tonne cement plant at Salboni in West Bengal, where it has already decided to develop a 10 million tonne integrated steel plant with an investment of INR 35,000 crore.
Mr Biswadip Gupta MD of JSW Bengal said that "We have planned a 3 million tonne cement plant, which will be constructing prior to the steel plant as part of the project. As per the environment clearance for the project we cannot throw any solid waste out of project area. To utilize the slag of the proposed steel plant we have decided to set up the cement plant."

Mr Gupta could not give the exact project cost, saying that it would not be less than INR 500 crore and depend on technology used.

JSW is also planning to increase the phase I steel capacity from the earlier proposal of 3 million to 6 million tonne. It is projected to achieve 6 million tonne capacity by mid 2011. Accordingly, the total investment plan had been revised to INR 16,000 to INR 18,000 crore. Initially, the investment in the first phase was proposed at INR 10,000 crore with a 3 million tonne steel capacity.

Steel Strips Wheels February 2008 sales up by 30% YoY

Steel Strips Wheels Limited recently announced that it has achieved sales of 501,906 wheel rims during February 2008 up by 30% YoY as against 386,138 wheel rims during February 2007.

Steel Strips has also achieved a production of 486,237 wheel rims in February 2008 up by 25.5% YoY as against 387,602 wheel rims in February 2007.

PGCIL CMD quits

BL reported that Mr RP Singh CMD of Power Grid Corporation of India Limited has resigned after a 10 year stint at the helm of the power transmission utility.

Mr Singh, who took over as CMD of the company in August 1997, was set to superannuate on July 31st 2008.

Mr Singh has 37 years of work experience and piloted the fledgling transmission company into becoming the operator of the biggest grid in the country. He also set up the regional load dispatch centers and helped implement grid discipline. Mr Singh had also worked with NTPC and TATA Steel before joining PGCIL.

Left unions win RINL elections

BL reported that the front formed by the Centre of Indian Trade Unions and All India Trade Union Congress has emerged victorious in the polls for the recognized union status in the Visakhapatnam Steel Plant, displacing the union affiliated to the Indian National Trade Union Congress.

The election was held on March 1st 2008. The victorious front polled 6,597 votes and the INTUC 4,361. The remaining votes were bagged by the smaller unions.

The new office bearers are
Mr N Rama Rao of CITU – general secretary
Mr D Adinarayana of AITUC – president
Mr V Dharmaraju of CITU – deputy general secretary

The elections were fought mainly over 3 issues
1) The decision of the steel management to offload 25% stake
2) The delay in the allotment of the captive mines to RINL VSP
3) The long pending wage revision

CIL to gain from distribution tax move

BS reported that Coal India Limited is expecting to save INR 200 crore annually as dividend distribution tax will be charged on holding companies for once under the 2008-09 Budget. Till date, double taxation ate into dividends paid by CIL and its subsidiaries on dividends.

Mr PS Bhattacharya chairman of CIL said that "CIL will pay dividend distribution tax to the government only once. This would help save INR 200 crore annually. The one time payment of dividend distribution tax is a specific advantage for Coal India and we are welcoming the budget whole heartedly."

Indian steel makers on young talent hunt – Report

It is reported that India’s steel industry has started a big headhunt for skilled workers and professionals to increase production and meet the mounting demand for steel to fuel its growth.

Mr HM Nerurkar COO of TATA Steel, while addressing at the just concluded Steelrise 2008, said that "We have taken a big challenge to attract young professionals to join the steel industry. About 2,000 to 2,500 people are required per million tonnes of steel."

Mr Nerurkar said that the metallurgy and mechanical engineering courses were not properly managed in many technical institutes. He added that “We are now trying to make all these courses more attractive so that it would help us retain talents for the steel sector in the days to come.”

Expansion of steel production to 180 million tonnes by 2020 would require a large number of skilled workers. During the discussion, the panelists coming from Indian Institutes of Technology, various management institutes and other engineering colleges has agreed that steel and other manufacturing industries had not made conscious efforts to attract young professionals. The possibilities of the steel industry itself setting up training institutes and facilities to develop its own human resources were also discussed at length in the seminar.

Subhash Projects bags pipe line contract from Chennai

ET reported that Subhash Projects & Marketing has bagged orders worth INR 80.54 crore for execution of water supply projects from Chennai Metropolitan Water Supply & Sewerage Board.

The order includes supplying, laying, testing and commissioning DI and MS pipes of various sizes in Kilpauk Water Zone, Triplicane Water Zone and Kalaignar Karunanidhi Water Zone for INR 55 crore, INR 8.87 crore and INR 16.67 crore respectively.

Suzlon to provide INR 100 crore for retrofit program

Suzlon Energy has reported retrofit program to resolve blade cracking issues discovered during the operations of S88 turbines in the US. The retrofit program involves the structural strengthening of 1,251 blades on S88 turbines, of which 930 blades are already installed while the remaining blades are in transit.

Mr Andre Horbach CEO of Suzlon Group said that "Suzlon Energy with its integrated global value chain and in house blade design and manufacturing capabilities is well equipped to resolve the issue within a short timeframe and in cost efficient manner. It expects no impact on the order and execution pipeline."

The retrofit program will be carried out by maintaining a rolling stock of temporary replacement blades, to minimize the downtime for operational turbines and will completed in 6 months. The total estimated cost of the retrofit program is INR 100 crore, for which a provision will be made in fourth quarter of 2008.

Petrobras to take 40% stake in ONGC Mahanadi block

Project Today reported that Brazil's Petrobras International Braspetro BV is likely to take a 40% stake in Oil & Natural Gas Corporation's Mahanadi deep water block MN DWN 98/3.

ONGC, which has 100% interest in the proposed block, discovered gas for a third time there on December 23rd 2007. Petrobras is also likely to join hands with ONGC to participate in the seventh round of New Exploration Licensing Policy VII.

Cement prices move up in western India on excise hike

PTI reported that bulk cement prices have gone up by INR 4 to INR 7 rupees per 50 kilogram bag in western India with effect from March 1st 2008 due impact of excise duty changes made in the budget last week.

Last week, Mr P Chidambaram union finance minister had proposed an excise duty of INR 400 per tonne or 14% ad valorem duty, whichever is higher, on bulk cement in order to bring it at par with packaged cement.

JFE to supply X80 pipes to TransCanada

JFE Steel Corporation announced that it has placed an order for approximately 52,000 tonnes of grade X80 UOE steel pipe in partnership with Metal One Corporation from TransCanada Corporation a leader in the responsible development and reliable operation of North American energy infrastructure.

Production has already begun for the pipe, which will be used for the line pipe in the customer’s North Central Corridor Pipeline Project. Demand for natural gas is growing as a source of clean energy and so is the demand for X80 line pipe, which is stronger than conventional grade X70 steel and represents the highest grade available under widely used commercial standards. The use of X80 will improve gas transportation efficiency while also reducing total construction and operating costs.

JFE Steel was the first in the world to commercially produce X80 line pipe, which it began in 1989. It has produced a total of 120,000 tonnes of the material to date, including those for TransCanada. During this period it has developed and improved a number of technologies in response to customer requirements and has also delivered grade X100 line pipe to three TransCanada projects, making it the only company in the world to produce and deliver X100 on a commercial basis. The latest order is the result of JFE Steel’s strong track record with the customer.

Production of these high strength steel pipes requires refining technology capable of manufacturing high grade steel with extremely low levels of impurities and inclusions as well as soft reduction technology sufficient to improve the properties of the steel’s core during continuous casting. In addition, the product is supported by advanced heat treatment technologies developed by JFE for steel plates, particularly super online accelerated cooling and heat treatment online processing that enables high-performance, stable manufacturing of high-strength steel.

POSCO sets up JV with Nippon Steel

Korea.net reported POSCO Co has jointly set up a steel recycling unit with Japanese steel maker Nippon Steel Corp. The unit, known as P&R, is capitalized at KRW 39 billion (USD 41 million), with POSCO holding a 70% stake in the company.

P&R’s plants will be built in Pohang, 374 kilometers southeast of Seoul, and Gwangyang, 423 kilometers southwest of Seoul. However, POSCO did not disclose when it will break ground for the plants.

POSCO in a regulatory filing said that the steel recycling unit that produces iron from byproducts of steel plants plans to supply POSCO and Nippon Steel with iron.

Iron ore price negotiations – Citigroup sees 30% rise in 2009

Bloomberg reported that as per Citigroup Inc, iron ore prices will rise by 30% next year because of continued robust demand growth.”

Mr Alan Heap Citigroup analysts said that “Persisting tight market conditions through 2008 and 2009 will provide the driver for further price increases next year and sustained high prices for the following two years.”

He wrote that “Spot prices are expected to weaken from 2012 as a result of significant supply surplus. Production cuts and postponing projects are expected to lessen the impact on contract prices.”

Mr Heap said that “The outlook for iron ore demand is more dependent on China than other commodities. The nation accounts for almost 90% of the growth in demand for the material.

US initiated AD review on Japanese seamless tubes

US Department of Commerce has published a notice of initiation of an administrative review of the antidumping duty order on carbon and alloy seamless standard, line and pressure pipe over 4 1/2 inches from Japan.

The review covers four manufacturers and exporters JFE Steel Corporation, Nippon Steel Corporation, NKK Tubes and Sumitomo Metal Industries, Ltd. The period of review is June 1st 2006 through May 31st 2007.

On June 1st 2007, US DOC published a notice of opportunity to request an administrative review of the antidumping duty order. On June 29th 2007, United States Steel Corporation made a request that the US DOC conduct an administrative review of JFE Steel Corporation, Nippon Steel Corporation, NKK Tubes and Sumitomo Metal Industries Ltd. On July 26th 2007DOC published notice of initiation of this antidumping duty administrative review.

Large diameter seamless pipe is used primarily for line applications such as oil, gas, or water pipeline, or utility distribution systems. Seamless pressure pipes are intended for the conveyance of water, steam, petrochemicals, chemicals, oil products, natural gas and other liquids and gasses in industrial piping systems. They may carry these substances at elevated pressures and temperatures and may be subject to the application of external heat.

MEPS forecast ferritic SS prices at record levels

UK based MEPS said that the rising cost of ferrochrome is pushing transaction prices for ferritic grades ever upwards and the MEPS North American and Asian average transaction values for type 430 cold rolled coil are at all time highs this month. It added that further substantial increases are expected in all regions of the world in March.

MEPS said that “EU prices have not reached the lofty figures recorded in other regions because selling figures turned down in mid 2007 as the whole market collapsed after the massive fall in the price of nickel on the LME. A slight recovery is now in place for all grades. The most spectacular improvement is in the ferritic types.”

MEPS added that “Significant alloy surcharge rises will occur next month. Our research shows that substitution of austenitic steels by ferritics is continuing, despite the price of nickel on the LME currently standing at half its value in May last year. This is because customers are not confident that the metal will remain at its existing low level after speculation in previous years. Moreover, a rise in the cost of ferrochrome also affects the austenitic types in equal measure to the ferritics.”

MEPS further added that “It is now clear that the day of the non nickel stainless steel has come. These grades will take a greater share of the market in years ahead. The LME nickel price hiatus through 2006 created a permanent change in the potential for ferritic grades. Nickel producers have lost a substantial volume of future business as a result. The mills are now investing in plant and equipment to meet the growing demand. Customers continue to test for suitability.”

Xstrata 2007 profit up by 13% YoY

Xstrata plc announces preliminary results for the year ended December 31st 2007.

Key Financial Results

Highlights

1. Record annual production of ferrochrome, mined zinc, thermal and coking coal, nickel and platinum and strong second-half copper output boosted volumes to capture the benefit of continued robust commodity prices

2. USD 6 billion of bolt-on acquisitions in thermal and coking coal, platinum and nickel in 2007 and early 2008

3. EBITDA increased by 7% to USD 11.3 billion; attributable profit up 13% to USD 5.5 billion

4. Real cost savings of USD 253 million achieved despite ongoing cost inflation in mining sector

5. Free cash flow of USD 4.6 billion after total capital expenditure of USD 2.9 billion

6. Strong operational cash flows reduced net debt to USD 12 billion, with gearing of 32% at year end

7. Pipeline of USD 30 billion of organic growth projects, of which USD 12 billion is approved, to deliver compound annual volume growth of over 12% to 2013

Mr Mick Davis CEO of Xstrata said that “Growth and value creation continued to characterize Xstrata's performance in 2007. A strong operational performance, boosted by record production across much of the portfolio, enabled the Group to capture the benefits of continued robust demand for metals and energy in its key markets. Acquisitions continue to form an important element of our growth strategy and core capability. This was emphatically demonstrated through the completion of over $6 billion of acquisitions in six separate transactions in 2007 and in early 2008, following the recent successful conclusion of the acquisition of Jubilee Mines, a Western Australian nickel group, and the acquisition of a majority stake in Resource Pacific, an Australian thermal coal producer, in February.”

Mr Davis added that “Xstrata's extensive growth pipeline, unveiled at our interim results presentation in August and outlined in further detail for the copper, coal and nickel businesses in early December, has increased to over $30 billion of green and Brownfield growth projects due to the addition of new growth projects from the acquisitions completed during the year. Xstrata's achievements in operational progress, volume growth, improving safety performance, continued reduction in real costs, determined delivery against our project pipeline and ability to capture opportunistic value creating transactions are a testament to the skill and dedication of our employees and management teams. Xstrata is perfectly positioned to benefit from the positive demand outlook as we progress the transformation of our portfolio through industry leading operating performance and the myriad internal and external growth options at our disposal, while continuing to play a central role in the industry's ongoing evolution.”

First LiquiRob system starts at POSCO

It is reported that the first LiquiRob robot system was successfully started up on the caster platform of the new 2-strand Slab Caster CCM 2-3 at the Gwangyang Steel Works of POSCO

Capable of executing all manual tasks required during casting operations, LiquiRob is designed to automatically carry out sampling and temperature measurements of the steel in the tundish as well as powder dosing. The unit can be upgraded to perform additional functions such as ladle shroud handling and oxygen lancing of the ladle. With these solution operator personnel no longer has to work in hazardous casting areas, thus substantially contributing to improved safety conditions.

In June, 2006 Siemens Metals Technologies received a contract from POSCO for the supply of a 2 strand slab caster capable of casting 3.5 million tons of steel per year. In order to improve production processes and operator safety, this project also included the supply of a LiquiRob system. The caster was started up in November 2007. Through the application of the LiquiRob solution, a high level of operator safety and process reliability could be achieved. Thanks to the systematic robotic procedures, new benchmarks in quality control and process optimization are offered.

Nucor complete acquisition of David J Joseph

Nucor Corporation announced that it has completed the acquisition of the stock of SHV North America Corporation, which owns 100% of The David J Joseph Company and related affiliates, for a purchase price of approximately USD 1.44 billion.

The David J Joseph Company is now a wholly owned subsidiary of Nucor Corporation and will maintain its headquarters in Cincinnati, Ohio. Nucor expects the acquisition to be accretive in 2008.

The David J. Joseph Company was founded in 1885 and has been the broker of ferrous scrap to Nucor since 1969. Currently the company has five main businesses Brokerage Services, Scrap Processing, Mill and Industrial Services, Rail Services, and Self Service Auto Parts. In 2007, the company brokered over 20 million tons of ferrous scrap and over 500 million pounds of non-ferrous materials. They will process over 3.5 million tons of ferrous scrap in 2008. DJJ also owns over 2,000 scrap related railcars and provides complete fleet management and logistics services to third parties.

Mr Dan DiMicco chairman, CEO & president of Nucor said that "We are pleased to announce the successful acquisition of one of the leading scrap companies in the United States. DJJ has been our partner for the last 38 years, and we are excited to welcome them to the Nucor family."

Zinc surplus seen lasting for 3 years

It is reported that supplies of zinc, the metal used to galvanize steel, will exceed demand for at least the next three years accelerating a price decline from record highs in 2006.

Mr Graham Deller the principal consultant for zinc at commodity researcher CRU International Ltd said “Some sort of surplus will be generated in the market this year, the next year and the following year. It's hard to see medium term metal demand keep up with either mine output or smelter capacity.''

Mr Deller said the price of zinc which jumped to a record USD 4,580 per tonne on the London Metal Exchange in 2006 has dropped more than 30% in the past year as mine supplies increased. More than 50% of the output growth in the past two years has been in China.

Mr Deller said global mine production in 2009 will be 1.6 million tonnes higher than in 2006. That is a record increase in output and the biggest percentage gain since the 1960s. In 2006, total mine production was 10.3 million tonnes. He said mine production is booming, even after the next two to three years, mine production will continue to increase.

Ferrochrome prices to rise beyond Q1 record

miningmx.com reported that ferrochrome prices will increase during 2008, driven by a 9% increase in demand and an expected shortfall in supply from South Africa. Ferrochrome prices reached a record USD 1.21 per short tonne in the Q1 of 2008.

Merafe Resources, the joint venture partner in Xstrata’s South African ferrochrome business said that prices rose by 27% YoY in 2007 with the average base price for the year at USD 0.89 per short tonne.

Merafe Resources said that “Ferrochrome demand is forecast to increase by approximately 9% in 2008, due to strong stainless melt production and stainless producers continuing to produce a higher ratio of ferritic grades than the historical average.” It added that “Supply side constraints on South African producers as a result of rolling power outages and the power reduction program are expected to result in a supply deficit during 2008. Merafe expects this to increase further during 2008.The Board believes that 2008 will be an excellent year for its ferrochrome business.”

Mr Mick Davis CEO of Xstrata said that "I believe that the medium term outlook for commodities is further strengthened by the return to growth of the Western economies over the next two to three years. As a result, I remain very confident in the outlook for all of Xstrata’s commodities through the medium and long term.”

Merafe has a 20.5% stake in the Xstrata joint venture, which has capacity of 1.96 million tonnes of ferrochrome a year. The venture has all 20 of its furnaces in operation. Its attributable ferrochrome output for 2007 was 284,000 tonnes.

Acerinox 2007 profit down by 38% YoY

Spain’s Acerinox reported that the company’s profit fell by 38% YoY in 2007.

According to Acerinox, it has had a really tough year in 2007 due to volatility nickel prices and sluggish market demand in the second half year 2007. It posted its net profit at EUR 312.3 million in 2007.

However, the CEO of Acerinox said that the company had a handsome performance in order book at the end of January.

(Sourced from YIEH.com)

Xstrata Coal announces restructure of Douglas Tavistock JV

Xstrata Coal announced the restructuring of its Douglas Tavistock Joint Venture with BHP Billiton Energy Coal South Africa. The restructure of the Douglas Tavistock Joint Venture is subject to the normal regulatory approvals.

Under the terms of the restructuring, Xstrata will acquire and manage the mining of reserves approximately equivalent to its 16% share of the Douglas Tavistock Joint Venture in an area contiguous to its 100% owned Arthur Taylor Colliery Open Cast Mine operations. Xstrata Coal purchased Total's 50% share of Arthur Taylor Colliery Open Cast Mine operations in December 2006.

Under the terms of the restructure, Xstrata will also recoup its original Richards Bay Coal Terminal entitlement and realize cash of USD 43 million on July 1st 2009. Xstrata Coal has also entered into an interim coal off take arrangement for 18 months with BECSA, effective from January 1st 2008 and has entered into a long term supply arrangement for its share of the former Douglas Tavistock Joint Venture's Duhva LT Eskom Coal Supply Agreement.

Xstrata will also acquire approximately 16% of the major mobile equipment, including one BE1570 dragline, and will commence separate mining operations from July 1st 2009.

Mr Peter Freyberg CEO of Xstrata Coal said that “This restructuring allows us to integrate the acquired discrete reserves from the former Douglas Tavistock Joint Venture into Xstrata Coal's 100% owned ATCOM complex, to leverage existing infrastructure and take direct management control of the operation, which will be renamed ATCOM East. The new operation will have 157 million tonnes of coal reserves. The decision to operate separately allows Xstrata Coal the freedom to increase production of export and Eskom tonnage at a greater rate than previously envisaged under the former joint venture and to identify additional synergies with its existing operations in the region.”

Prior to the restructure, the Douglas and Middelburg collieries which comprise the Douglas Tavistock Joint Venture were 84% owned and operated by BHP Billiton Energy Coal South Africa and 16% owned by Xstrata South Africa.

Centennial looks to Mandalong coal production boost

It is reported that Australia’s Centennial Coal is looking to significantly boost production at its Mandalong mine in Lake Macquarie, despite residents' concerns about increased ground vibrations.

As per report Centennial has started discussions with residents in the Mandalong Valley about its plans to export an extra 2 million tonnes of coal per annum from the mine to take advantage of the strong global demand for coal and high prices.

The New South Wales Department of Mineral Resources is currently assessing subsidence management plans for the extension of mining into three new longwall panels at Mandalong. But some local residents have reported short ground vibrations that they believe are linked to the current mining operations.

Centennial has confirmed its monitoring stations have recorded about 100 vibrations since September 2005, but the company said only a small percentage of these were related to mining and would not be strong enough to damage homes.

Anglo American appoints sir Chow as non executive director

Anglo American announced that the election of Sir CK Chow as an independent non executive director will be proposed at the AGM on April 15th 2008.

Sir Mark Moody Stuart chairman of Anglo American said that "I am delighted that Sir CK has agreed to join the board where his broad international business experience will be of great value to us.”

Sir Chow said that “I am honored to be asked to join the board of Anglo American and look forward to contributing to the continued success of a great company."

PSC acquires Slippery Rock Salvage

PSC Metals Inc has acquired Slippery Rock Salvage, a metals recycling company with locations in Slippery Rock and New Castle in Pennsylvania. The acquisition is the first acquisition for the company this year.

Slippery Rock’s New Castle facility has car crushing and shearing capabilities and is located within 25 miles of three steel mills.

PSC Metals has more than 30 sites across the Eastern portion of the country and in Canada.

Alcoa completes sale of packaging units

Aluminum maker Alcoa Inc said that it has completed the sale of its packaging and consumer businesses to Rank Group Ltd a private New Zealand company for USD 7 billion in cash.

Alcoa which said it was considering selling the businesses in April, announced the deal in December. The company said it received about USD 2.5 billion in cash from Rank in the sale and expects the additional USD 200 million by April, when regulatory and other approvals are received for a small number of facilities.

The sale includes Alcoa's Closure Systems business, which makes plastic and aluminum packaging closures for food, drink and personal care products, and its Flexible Packaging unit, which makes pouch and blister packaging, shrink labels and foil lids for drug, food and other uses. The sale also includes consumer products, including Reynolds Wrap food and foil wraps, and Reynolds Food Packaging, which serves the food service, supermarket, agricultural and other markets.

Lehman Brothers acted as Alcoa's financial adviser on the deal.

PT Bayan Resources eyes IDR 5 trillion IPO -sources

Reuters reported that Indonesian coal producer PT Bayan Resources plans to raise IDR 5 trillion (USD 550 million) in an initial public offering as early as the first half of 2008.

Sources close to the deal said that Bayan Resources was planning to offer between 10% to 20% of its share capital valuing the entire company at as much as USD 5.5 billion. That would make it the second largest listed coal miner in Indonesia after Bumi Resources Tbk.

Merrill Lynch and Indonesian brokerage firm, PT Trimegah Securities have been approached to handle the deal.

Bayan Resources is the holding company of coal miner Gunung Bayan, which is expected to produce only 9 million tonnes of coal in 2008.

Tennessee coal miners unhappy over high mining ban

AP reported that a proposal to ban most mountaintop removal mining and to toughen other environmental standards for the coal industry in Tennessee is running into stiff opposition from state coal producers.

Mr Dan Roling president of National Coal Corp told the state senate environment and conservation committee last week that passing the measure would have dire effects on the industry in the state. He added that "Prohibiting mining above 2,000 feet elevation in the case of National Coal alone would basically force us or almost force us to close our doors.”

Mr Roling said that about 28 million tonnes of the company's coal reserves worth about USD 700 million would be affected by the measure.

German coke plant provides model for environmental issues

Pittsburg Tribune reported that a group of Allegheny County officials leave for Germany next week to tour the world's largest coke ovens, to see what they can expect from USD 1.2 billion in proposed upgrades to US Steel's Clairton Coke Works.

The Schwelgern coke plant near Dusseldorf uses a novel technology similar to what US Steel plans to employ in two coke oven batteries it wants to build in Clairton. Staff from the county Health Department and Department of Economic Development will examine the environmental and employment opportunities of the technology.

Mr Dennis Davin economic development director said that "We hope to learn what controls the German company has put in place to reduce the environmental issues for a new, state of the art facility.”

VSC adjusts domestic steel prices

Nhan Dan reported that members of the Vietnam Steel Corporation in the southern region have had to adjust their selling steel prices five times so far in 2008 with increases of 11% to 14.6% due to increasing world import price of steel billet.

Currently, import price of steel billet has hit USD 750 a tonne. Thus, on the domestic market, rolled steel is sold at VND 13,500 a kilogram while that for steel bars is VND 13,650 a kilogram excluding value added tax and transport fees.

The corporation has requested their members to sell directly to big investors and contractors to reduce costs and retail sale agents to sell at the listed prices. It added that customers that offer to buy a large quantity for construction of security and defense works will be prioritized.

Copper Mineral Resources increase in Southern Peru

Xstrata Copper announced a total Mineral Resource of over 1.6 billion tonnes of copper mineralization in southern Peru, underpinning this region as an emerging major copper producing district for the Xstrata Group. This represents a 31% tonnage increase, the equivalent of 390 million tonnes, to previously announced resources for the region.

Xstrata in a release said that “The Ore Reserve and Mineral Resource Statement includes a substantial increase in Mineral Resources at Xstrata Copper’s Las Bambas and Antapaccay development projects, and the first Mineral Resource published for the Coroccohuayco project, all in southern Peru. Both Antapaccay and Coroccohuayco are located approximately 10 kilometers from Xstrata Copper's Tintaya mine.”

Mr Charlie Sartain CEO of Xstrata Copper said that "The significant and expanding Mineral Resources at attractive grades that we now have across a number of projects in this exciting mineralized district support our business strategy to progressively increase annual production from our Southern Peru division fourfold to half a million tonnes of copper over the next five years. The proximity of these projects to our established operations at Tintaya and to other district infrastructure provides us with a strong platform from which to rapidly grow our business in southern Peru."

Taiwan container traffic in 2007 up by 4.78% YoY

According to statistics released by the Taiwan’s ministry of transportation and communications, the total volume of containers handled at Taiwan's three international harbors in 2007 amounted to 13.73 million TEUs up by 4.78% YoY.

A ministry of transportation and communications official said that Kaohsiung harbor in southern Taiwan handled 10.26 million TEUs in 2007 exceeding its operating target of 10 million TEUS for the first time, adding that the figure represents an increase of 4.93% YoY.

Import-export and transshipment containers each accounted for 50% of the total, with import-export containers posting an annual growth of 516,000 TEUs or 11.18% primarily due to strong demand for raw materials from several emerging countries, including China and India, the official pointed out.

The official further said the northern harbor of Keelung and the central harbor of Taichung handled 2.22 million TEUs and 1.25 million TEUs, up by 4.07% YoY and 4.11% YoY respectively. According to the statistics, the total volume of cargo loaded and unloaded at local harbors reached 710.27 million tonnes in 2007, up slightly by 0.53% YoY.

Transgaz and NGT interested in merging regional gas networks

It is reported that Natural Gas Transmission a subsidiary of the MOL Group and Romanian gas transport company Transgaz Medias are going to discuss in March 2008 the strategy for the development of a Central and SE Europe regional gas transport network.

The project was initiated by the Hungarian company and the first meeting of the regional gas transport companies is scheduled to take place in Bucharest on March 13th to 14th 2008.

At the end of 2007, MOL invited several companies from Romania, Austria, Bulgaria, Bosnia, Croatia, Slovenia and Serbia for negotiations on setting up a regional gas transmission operator, remaining open to the participation of other regional market players. The project should have a length of 27,000 kilometer.

Mr Janos Zsuga CEO of Natural Gas Transmission said that “The purpose of the Natural Gas Transmission project is to improve gas supply in Central and South Eastern Europe for the benefit of all shareholders, based on a partnership where members should enjoy equal rights.”

Hitachi wins order for 6 boilers from Eskom

It is reported that Hitachi Ltd has clinched a JPY 250 billion (USD 2.41 billion) order for six boilers for coal fired power plants from South Africa's state owned utility ESKOM.

As per report Eskom will use the boilers at a power plant it is building in the province of Mpumalanga in the northern part of the country.

By producing high temperature, high pressure steam for turning turbines, the boilers can reduce coal consumption and carbon dioxide emissions by 20% to 30%. The boilers each have an output of 800,000 KW and are to be built starting in fall 2009.

3 miners suffer burns in methane fire in OKD coal mine

CTK reported that three miners suffered serious burns in a fire caused by a methane leak in an underground coal mine belonging to the Czech mining company OKD in Karvina on Thursday afternoon.

Mr Ladislav Sobol a spokesman of OKD told CTK that the flame hit three of four miners working on the spot at the time. He added that "It was not an explosion. Methane leaked while the miners were making preparations for mining.”

All three men were in a life-threatening health condition and are now being treated in the Ostrava Teaching Hospital's Burns Centre. Mr Tomas Oborny a spokesman hospital said that "They are in a very serious condition and are being kept in induced sleep adding he did not know the extent of the men's burns yet.”

The circumstances of the accident are being investigated by a special commission.

Japan steel makers to hike steel export prices

JMB reported that Japanese steel export price surges for April to June 2008. As per report the price increases by USD 150 to USD 250 per tonne for sheet steel and by USD 230 to USD 300 for plate compared with January to March 2008.

Japanese makers offer more than USD 200 hike for special steel wire rod, electrical steel and steel pipe for offshore transplant of Japanese manufacturers and some buyers accepted the higher price.

Asian spot plate market exceeded USD 1,000 and the market could increase more toward July to September 2008

Erdemir 2007 net profit dips by 0.8% YoY

Turkey’s largest steel maker Erdemir has recorded a net profit of TRL 679.4 million in 2007 down by 0.8% YoY as against TRL 674.01 million in 2006.

However, it has increased its sales to TRL 5.45 billion for 2007 up by 11.2% YoY as against TRL 4.90 billion in 2006.

E ships secure USD 76 million orders for two LPG tankers

Khaleej Times reported that Emirates Ship Investment Company has ordered construction of 2 semi refrigerated LPG tankers worth USD 76 million to STX Corporation.

Mr Ahmed Saeed Al Calily chairman of Emirates Ship Investment Company and Mr DK Bae deputy president of STX Corporation of Korea has signed a shipbuilding contract for the construction of two 6,500 cubic meter semi refrigerated LPG tankers. The price for each vessel is about USD 38 million and the vessels will be delivered in Korea in May and July 2010.

Emirates Ship is an Abu Dhabi based shipping company controlling 11 modern tankers and bulk carriers. It is owned by Oman and Emirates Investment Holding Company, Mubadala Development Company and Abu Dhabi Investment Company. It currently has 4 vessels on Time Charter to Total and the new LPG tankers will also be committed on long term period charters to Total.

WAPDA raised power supply to steel units at 20 hours a day

Daily Times reported that Pakistan’s Water & Power Development Authority has increased the power supply to steel melting and re rolling units from the current 17 hours to 20 hours a day.

Source said that the federal government has ended the load shedding for the textile industry and is providing electricity to textile units for 24 hours. It had also increased the supply of electricity to steel melting and re rolling units from 17 hours to 20 hours to facilitate the sectors.

It may be noted that, due to reduced supply of power to steel melting and re rolling mills, the prices of steel have jumped up from PKR 44,000 per tonne to PKR 65,000 per tonne indicating an unjustified hike of PKR 21,000 per tonne. This has posed a negative impact on housing and construction industry that is the most labor intensive.

Saudi Arab ink deal for water infrastructure modernization

Arab News reported that, as part of an ambitious plan to modernize Saudi’s increasingly overstretched water infrastructure and to ensure supply, Mr Abdullah Al Hussayen Saudi minister of water & electricity has signed a SAR 1.4 billion contract with a leading Saudi Turkish JV company to lay a pipeline system, which will be used to transport potable water produced at a desalination plant to growing urban areas in the Eastern Province such as Dammam, Alkhobar, Jubail, Ras Tanura and Safwa. Mr Suleyman Servet Sazak chairman of Yuksel Holding, Mr Faisal Al Sadoun chairman of Yuksel Saudia and Mr Emin Sazak CEO of Yuksel Insaat AS have signed the contact on behalf of Yuksel partners.

Mr Al Hussayen said that the contract was awarded to a Saudi Turkish venture, representing the Turkey based Yuksel Holding and Yuksel Insaat AS, as well as Riyadh based Yuksel Saudia Company Limited.

Referring to the water transmission project awarded to Yuksel, Mr Al Hussayen said that "This new water transmission system will transport potable water produced at the New Marafiq Desalination Plant, located within the industrial city of Jubail. The award of this project symbolizes our efforts to solve the problems of water supply in Saudi Arabia, especially in the Eastern Province."

Mr Sazak said that "The project also includes the upgrade of the existing Hofuf Water Transmission System, which supplies water to Abqaiq and Hofuf from the Alkhobar desalination plant. This project reflects our business ties with the Kingdom, where we have been working for the last 25 years." He added that the design capacity of the pipeline is 500,000 cubic meters per day and the total length of the pipeline will be 133.77 kilometer.

He added that "The commissioning of this project will benefit a large population in the Eastern Province by improving the supply of potable water, which in turn will give a boost to the local and national economy and elevate the living standard of the people, reflecting the efforts and the vision of the government of Saudi Arabia."

Established in 1963, Yuksel is one of the largest Turkish construction companies with a substantial presence in the Middle East and central Asian regions besides other parts of the world. Yuksel started its operations in Saudi Arabia way back in 1983. After signing the first contract, a Saudi Turkish owned local company was established with the name of Yuksel Insaat Saudia Co, which is now growing from strength to strength.

India to send officer to witness MV Rezzak probe

PTI reported that India is sending an officer to Turkey to witness the investigation to look into the missing vessel MV Rezzak with 25 Indian crew.

Mr Deepak Kapoor an official in the directorate general shipping said that "Panama and India are expediting the conduct of investigation. The investigating members of both the involved maritime states are processing their visa or travel formalities and soon shall be proceeding to Turkey."

Mr Kapoor said that MV Rezzak carrying 25 Indian crew and steel billets as cargo left Russia on February 17th 2008 on a 24 hour trip to Turkey. However on February 18th 2008, the vessel with the crew went missing and there was no distress call.

MV Rezzak is owned by a Turkish national. The crew for MV Rezzak was recruited by Mumbai based Pelican Marine. The search and rescue operation are being carried out by Turkish authorities. The search and rescue team has found a punctured life raft, life jackets, synthetic tarpaulins, gas cylinders, sea survival kit, life buoys and life boats of Rezzak.

It is noted that MV Rezzak ship was equipped with an automatic identification system, but this was switched off when it left Russia.

Daewoo readying 26 LNG carriers for Qatar services

Doha Times reported that South Korea’s Daewoo Shipbuilding & Marine Engineering Company is now building some 26 LNG ships for Qatar. These include ships in both the Q Max and Q Flex categories, the largest LNG vessels currently in operation.

Mr ST Nam president & CEO of Daewoo Shipbuilding said that “We will construct these ships in time and within budget. The state of Qatar, Nakilat, RasGas and Qatargas have reposed faith in us. We are committed to fully living up to their expectations. Qatar is very important for South Korea in general and Daewoo Shipbuilding in particular. Qatar meets our energy needs significantly through crude oil and LNG. Nakilat and RasGas have placed big orders with us for state of the art LNG vessels.”

Mr Nam said that sophisticated technology had gone into the construction of the three Q Flex vessels which were named at the Okpo Shipyard recently. The 3 state of the art LNG vessels namely Al Aamriya, Murwab and Fraiha have a cargo carrying capacity of 210,110 cubic meters each. They are jointly owned by a consortium of Nakilat and J5, made up of Japanese Mitsui OSK Lines, Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha, Mitsui & Company and Iino Kaiun Kaisha.

Mr Nam said that the shipbuilding industry was hit by inflation, particularly by the rising prices of steel and other construction materials. He added that “But with meticulous planning and execution we are facing these challenges somehow.”

Daewoo Shipbuilding’s yearly production capacity is about 45 vessels. As of January 2007, it has landed contracts for some 74 LNG carriers. It also constructed the world’s first LNG regasification vessel besides carriers, tankers, containerships and passenger car ferries,

Bahrain to ad 700 New Oil Wells

It is reported that Bahrain has unveiled an ambitious expansion plan to meet its growing energy related needs in next 15 years.

Mr Abdul Hussein ibn Ali Mirza Bahraini minister of oil & gas affairs and also chairman of the National Oil & Gas Authority said that Bahrain would add another 700 oil wells to maintain and increase its oil production. He added that many of the proposed wells would be of special architecture wells to maximize reservoir contact in order to improve the well productivities and the field oil production rate.

Egyptian exports to Arab countries on the rise

According to the foreign trade annual report, Egyptian exports to Arab countries has increased by 25%. Non petrol exports to Arab countries have reached USD 5.43 billion in 2007 as compared to USD 4.43 billion in 2006.

Mr Rachid Mohamed minister of trade & industry of Egypt said that the top export Arab countries are Saudi Arabia with USD 973 million, Libya with USD 760 million and Syria with USD 611 million.

The report was issued by the Exports & Imports Control Authority and showed that Egyptian total exports increased by 22% YoY in 2006-07 to reach EGP 84.35 billion as compared to EGP 69.09 billion in 2005-06.

According to the report, the Italian market is the largest importer from Egypt with EGP 8.86 billion topping the US market, which came ranked second with EGP 8.54 billion in 2006-07.

Egypt mainly exports mineral fuels and oils, cotton and iron & steel, while as it mainly imports consumer electronic and capital goods, nuclear reactors and boilers, cereals, food products and chemicals.

First gas technology exhibition opens in Mashhad

IRNA reported that the first gas technology and related industry exhibition dubbed as "GasTex 2008" has opened at Mashhad in Iran.

Mr Mohammad Seyyedi MD of Mashhad International Fair said that "Considering Iran's second position after Russia as the biggest gas producer in the world, Iran has a special stance in the energy market. In recent months demand for buying Iran's gas has increased by different countries." He added that the aim of holding such an exhibition is to present the abilities and potentials in this field.

45 domestic and foreign firms have participated in the fair and delegations from Cameroon and Turkey by visiting the exhibition got acquainted with Iranian experts’ abilities.

Mr Seyyedi further added that "Main fields of activities in the fair are discovery, production, refinery, technical and engineering services, automation, security, gas transfer and distribution, public contracting, equipment and machinery, pipes, joints and other activities related to the gas projects."

The exhibition continues till March 4th 2008.

Import of goods from Iraq begins through Mehran border point

IRNA quoted Mr Abbas Alidadi manager of Ilam Customs Office as saying that Iraq has started exporting commodities to Iran through Mehran international border point in Ilam province.

Mr Alidadi added that the major commodities being imported from Iraq to Iran are cloth, plastic dishes, construction materials and machinery. He said "The income of Ilam Customs Office has been IRR 10.560 billion since the beginning of the current Iranian calendar year."

Referring to a 45% increase in non oil exports from Mehran border point, he said that 721,750 tonnes of goods worth USD 215 million have been exported from Mehran this year.

Mehran international boarder point is one of the most important centers of trading and a major route for pilgrims to travel to Iraq.

Iranian investment in Syria may touch USD 3.5 billion – Report

IRNA quoted Mr Moussa Barzegar Iranian deputy minister of housing & urban development as saying that volume of investment by Iranian companies in Syria will reach USD 3.5 billion from USD 1 billion.

Mr Barzegar, while speaking to a group of Iranian and Syrian officials after end of the preliminary meeting of Iran Syria Commission, said that "If the agreements, signed by Iran and Syria, are finalized, volume of Iranian companies' investment in Syria will reach USD 3.5 billion."

Representatives of Iranian and Syrian industries, energy, interior, information, foreign affairs, agriculture, labor and education ministries were present at the preliminary meeting.

Mr al Zabi Syrian head of the meeting also hoped that the two sides will soon sign a free trade agreement and they will hold more meetings for mutual investment and sharing experience in the economic and commercial domains.

Al Qudra delays USD 1 billion IPO plan

Abu Dhabi based Al Qudra Holding has announced that it is delaying a USD 1 billion sale to finance expansion.

As per report, Al Qudra, which has 30 units in industries including real estate and infrastructure, is delaying the sale from this week until later this year to take advantage of a possible change in the law allowing firms to sell less than 55%.

Mr Salah Al Shamsi chairman of Al Qudra said that it is planning to offer 55% and initially seeking to raise AED 3.7 billion. He added that "The sum was equivalent to 25% of the company’s share capita and investors could pay for the remainder of the sale later."

Given the recent discussions around the revised companies’ law, allowing for UAE institutions to offer less than 55 per cent through an initial public offering, Al Qudra’s board of directors has elected to capitalize on this opportunity and postpone the offering to a later date during 2008.

Al Qudra’s IPO would have been the second biggest in the UAE after Dubai’s DP World, which raised almost USD 5 billion in November 2007.

Farsi field development contract to be finalized in April

According to Mr Mahmud Zirakchianzadeh MD of Iran Offshore Oil Company, the contract for the development of the Farsi field will be finalized within April 2008.

Mr Zirakchianzadeh said that "The feasibility and financial studies for said field were approved and finalized by India through the ONGC and the development of the field will be carried out in 2 phases."

He also announced finalization of technical and financial aspects of the Lavan field by a Polish company and the start of work on this development within the next 2 months. The contract is to be signed in April 2008.

Mr Zirakchianzadeh further added that "There are now special logistic support requirements including the workforce factor. The number of productive fields in the area is now 500 and there is water injection into 100 of the wells. 17 are in the production stage and 8 have production capacity of 1,240,000 barrels per day. Next year will see greater growth of this."

Chinese HDG export prices rise substantially

It is reported that Chinese HDG coil export price level has improved remarkably last week after steel makers raised ex works prices. Transactions have been heard at the updated levels and export tonnages are expected to increase in the next months.

Export offers for 1.0mm HDG are prevailing at USD 860 per tonne FOB and contract prices are said to be at the similar level. The strong rebound of market price in the EU and USA are bolstering more imports of Chinese steel products.

Traders told Mysteel that HDG price and volume to the EU have picked up again following the sharp decrease in stock level which is due partly to the anti dumping investigation on Chinese origin HDG.

A Shanghai based trader said "Importers seem to be replenishing inventory after the substantial drop in imports. In face of such a swift rise in price, they start to increase the purchasing from China. The result of anti dumping result is expected to come out in the latter half of 2008."

As per report in the domestic market, HDG prices are quite close to key price level, which could decide whether there is another round of rise or not.

(Sourced from MySteel.net)

Tanggang to move facilities to coast for cutting air pollution

It is reported that China’s third largest steel maker Tangshan Iron & Steel Group, is planning to shut its facilities in the city and to be moved completely to a new costal facilities during the next decade in a view to cut air pollution.

It plans to establish a new 20 million tonnes per year plant on the Heibei coast either in Caofeidian of Jintang port.

Mr Zhaoyong the city’s party secretary said that Tangshan city has shut over 100 small polluters from mid September to December during a 100 day trial late last year and witnessed an improvement in air quality. He said that the sulphur dioxide levels declined by 25% and water pollution felt by 20% during the 100 day shutdown of small steel, sinter, concrete and coke plants.

He added that the rising iron ore and coking coal prices would further strengthen the efforts to close down polluting plants.

Chinese mines halt loading coal for export

Reuters reported that Chinese mines have stopped loading coal for export as Beijing has not issued 2008 export quotas in time. Industry officials at China's top coal exporters confirmed that they had not yet received 2008 export quotas but declined to comment on the fate of the remaining export contracts, sealed last year.

Traders in Beijing said Chinese exporters were not allowed to load for export as the 2007 quotas expired at end 2007. Without the 2008 quotas the miners could not ship even cargoes that had been contracted earlier.

A trader said "Beijing hasn't issued the license. No coal can be loaded for export any more. The trader added that if they do not issue them tomorrow, they are unlikely to do so until after March 15th 2008. Most assume China won't resume exports until after March 14th 2008."

China's retreat from coal exports since late January helped to push the benchmark thermal coal price to a record USD 150 a tonne early in February. It subsequently eased to USD 132.05 as the peak winter consumption season neared its end.

Italian police seize radioactive steel of Chinese origin

Italian police announced that they have seized 30 tonnes of Chinese made steel that had been contaminated by a radioactive substance. Officers seized it last week after radiation turned up in tests on metal scraps at companies across Italy that had used part of the shipment.

Police said in a statement that the shipment had come from China's TISCO company and had arrived in the northern port town of La Spezia in May last year.

Police said that the steel had been accidentally mixed during production with cobalt-60.

The environmental protection police squad said that the steel was destined for the industrial production of chimneys and pulleys, and long term exposure could have been dangerous for workers handling it.

Chinese shipbuilding tonnage in 2007 up by 30% - NDRC

According to National Development and Reform Commission China's shipbuilding tonnage jumped 30% to 18.93 million tonnes in 2007.

China, the world's third largest shipbuilder after the Republic of Korea and Japan, grabbed 23% of the world's market share four percentage points higher than in 2006.

National Development and Reform Commission said among the total, 14.9 million tonnes of ships in tonnage were exported to 151 countries and regions. The number of exported tonnage rose 25.6% and the export value rose 51.1% to USD 12.24 billion.

China new shipbuilding orders in tonnage soared 132% to 98.45 million tonnes last year. The figure accounted for 42% of the world's total up by 12% points from a year earlier. The new amount raised the total orders in tonnage the country held to 158.89 million tonnes 33% of the world's figure. The market share was nine percentage points higher than in 2006.

During the year, China State Shipbuilding Corp and China Shipbuilding Industry Corp built 6.55 million tonnes and 4.24 million tonnes of ships in tonnage respectively.

China produces 2.52 billion tonnes of raw coal in 2007

According to the China National Coal Association China produced 2.52 billion tonnes of raw coal last year up by 8.2% from 2006. The output of raw coal saw consecutive growth in the past five years. The output volume increased by 78.3% compared to that of 2002 when the volume stood at 1.42 billion tonnes.

The coal output of Shanxi, the country's largest coal producing province in China reached 630.21 million tonnes growing steadily by 8.39% over the year.

Over the past three years, the central government had arranged CNY 9 billion in treasury bonds to upgrade safety technologies and equipment at major state owned coalmines in order to increase output while reducing the number of accidents.

Baosteel and Shanghai Automotive reshuffle auto mould project

Shanghai Automotive Industry Corporation (Group), Baosteel Group and Donghua Corporation have signed cooperation agreement on a die project in Nanjing on February 28th 2008 dedicated to reshuffle Nanjing Tooling Co Ltd by setting up a new joint venture, in which Shanghai Automotive and Baosteel will take up 35% shares each while Donghua, a JV between Shanghai Automotive and Yuejin Group, holds remaining 30%.

Tonghua Steel advances flat product manufacturing plans

It is reported that Tonghua Iron & Steel Co is turning itself into a manufacturer of flat products as well. The company is currently installing a galvanizing line and plans to add a 1,600mm hot strip mill with a 1.5 million tonnes per year capacity and a reversing two stand cold mill with 800,000 tonnes per year capacity.

As per report Tonghua has now ordered a range of automation equipment which supplier Siemens of Germany will be installed by the end of 2009.

Tonghua, currently producing around 4 million tonnes per year of crude steel has mainly turned out structural and special steels at its mill in Jilin province to date. The company’s long term plan is to expand to a capacity of 10million tonnes per year.

Hainan's Yangpu port boosts container throughput in 2007

Xinhua reported that Hainan's provincial Port of Yangpu lifted 110,000 TEU last year up by 30% compared to the year before. The port's overall cargo tonnage increased to 23 million tonnes, more than double 2006's volume.

Yangpu port's new shipping line, connecting Hong Kong was launched in October last year and was said to have been responsible for the port's container growth last year.

Yangpu currently has 16 berths with a 5,000 tonne to 300,000 tonne capacity with nine moorings that can accommodate more than 10,000 tonne ships. The port has been approved by the state to set up a bonded port area, which has attracted a number of large terminal investors from home and abroad including Chinese shipping giant Cosco.

Chinese supply situation to stabilize on reducing steel exports

According to China commerce ministry China's demand supply situation for iron ore is expected to stabilize as the country's exports of steel products are declining, bringing down demand for ore.

The ministry said in a statement that China's steel products shipments point to a further slowdown in exports as government measures such as a reduction in export rebates and scrapping of outdated capacity begin producing results.

The ministry added that rising iron ore costs, as well as higher coal prices and transport costs, will also put pressure on Chinese steel producers.

According to customs figures released earlier exports of steel products in January down by 5.4%YoY to 4.14 million tonnes.

Mechel announces its interest in Oriel Resources

Mechel has announces its interest in acquiring Oriel Resources Plc. It said that “Mechel is currently contemplating the acquisition of Oriel. This process is at an early stage and there can be no certainty that any offer will ultimately be forthcoming.”

Oriel Resources Plc, owned by several businessmen and institutions, is a London based chrome and nickel mining and processing company which listed on the Alternative Investment Market of the London Stock Exchange in March 2004 and the Toronto Stock Exchange in February 2005. Key assets of Oriel include the Tikhvin smelter, the Voskhod chrome and the Shevchenko nickel projects. Last year it started producing ferrochrome at a new smelter in Tikhvin, 200 kilometers east of St. Petersburg. Oriel imports chromite ore for the smelter but plans to launch its own mine at Voskhod in Kazakhstan in the third quarter of this year. It also owns a nickel project, Shevchenko in Kazakhstan.

Ukrainian finished steel output in 2 months by 4% YoY

Interfax reported that Ukraine's steel industry increased finished roll output by 4% YoY during January to February 2008 to 6.105 million tonnes.

Ukraine produced 7.132 million tonnes of crude steel in this period up by 3% YoY and 5.923 million tonnes of pig iron up by 4% YoY.

Iron ore concentrate production grew by 8% YoY to 10.331 million tonnes, prepared iron ore was unchanged at 11.691 million tonnes and sinter was unchanged at 8.093 million tonnes. Pellet production grew 1% YoY to 3.598 million tonnes and crude iron ore production rose 6% YoY to 12.98 million tonnes.

Ukrainian coke production rose by 11% YoY to 3.529 million tonnes but metalware output fell 13% to 63,000 tonnes.

Steel pipe production fell by 16% YoY to 371,000 tonnes.

Scrap deliveries to Ukrainian steel mills grew 8% YoY to 936,000 tonnes.

Belon eying foreign listing in 2009

Reuters reported that Russian coal miner and steel trader Belon Group, which plans to invest about USD 500 million to triple coal production over the next five years, plans to list up to 20% of its shares on a European bourse in November 2009.

Mr Andrei Dobrov who has the largest financial interest in Belon said that “We have an ambition to list in November 2009, but everything will depend on the situation on the market.

He said Belon may first issue new shares. He added that the company favored a European listing, possibly in London or Frankfurt.”

Mr Dobrov however clarified that he has no plans to relinquish control of the company but was continuing talks with Magnitogorsk Iron and Steel Works about selling a bigger stake to the steel maker. Mr Dobrov said that 17.5% of the company's stock was in free float on Russia's RTS and MICEX bourses. Magnitogorsk acquired a 10.75% stake in Belon last year.

Belon Group involves Listvyazhnaya, Chertinskaya Koksovaya, Novaya-2, Kostromovskaya mines; Belovskaya, Belovpogruztrans, Sibgormontazh. The major holder is a private person 87% and private investors 13%. The share capital is worth RUB 11.5 million split in 11500000 common stocks of RUB 1 par. In October 2007 MMK acquired 10.75% stake from Sapwood Investments.

Belon produced 4.66 million tonnes of coal in 2007 with 2.65 million tonnes of thermal coal and around 2 million tonnes of coking coal. Belon plans to raise coal output by 50% in 2008 to more than 7 million tonnes. Coking coal will rise by about 80% and thermal coal 34%.

Gazprom cuts gas supplies to Ukraine by 25%

RIA Novosti reported that Gazprom cut natural gas supplies to Ukraine by 25% over a debt dispute, but pledged shipments to Europe would not be affected.

Mr Sergei Kupriyanov spokesman of Gazprom said "Gazprom reduced supplies by 25% at 10 AM Moscow time.

He said that “Gazprom is a reliable supplier, but it cannot deliver gas without payment. The debt for gas supplied to Ukraine has not been paid off as of today. Ukraine is continuing the unauthorized consumption of gas. New contracts have not been signed."

Mr Kupriyanov said around 1.9 billion cubic meter of gas worth some USD 600 million has been illegally consumed by Ukraine.

He said that Gazprom is prepared to continue talks with Ukraine to resolve the dispute.

Under an agreement reached between Mr Vladimir Putin presidents of Russia and Mr Viktor Yushchenko on February 12th 2008 Gazprom and Naftogaz are to switch to direct cooperation without intermediaries and to set up two joint ventures to this end.

ArcelorMittal to extend Bosnian iron ore mine output by 20 year

Thomson Financial reported that ArcelorMittal is diverting the Gomjenica River in northwest Bosnia Herzegovina along a 4.2 kilometer route to prolong the life of an open pit iron ore mine by 20 years.

The report added that the river is in the way of a new pit that has 45 million tonnes of iron ore and moving it will allow its exploitation.

Mr Akhmetov wins case against Kiev Post

AFP reported that Mr Rinat Akhmetov has accepted a public apology and undisclosed damages over false allegations that he stole billions of dollars by rigging share auction processes.

Mr Rinat Akhmetov had sued the Kyiv Post for libel over the claims on the English language newspaper's website in October last year. His lawyer Laura Tyler, from London law firm Schillings, told the court her client had been wrongly accused of acting unlawfully in business transactions relating to a thermoelectric generator and a steel mill. The article alleged that the deals allowed him and the steel and mining firm owners Systems Capital Management, in which he had a controlling stake, to steal billions of dollars.

But Tyler said the claims were erroneous. Both transactions complied fully with Ukrainian law and there was no unlawful activity on her client's part.

The Kyiv Post and its owner accepted the allegations were false and unequivocally apologized for the embarrassment caused. It also paid undisclosed damages.

Azerbaijan lays foundations of steel complex

It is reported that the ceremony of laying the foundations of a steel complex and an additional building of the aluminum plant took place in Ganja involving Mr Ilham Aliyev president of Azerbaijani.

Some USD 800 million will be put into the construction of the new steel complex. The investing period covers 2008 to 2011. Over 1,800 jobs will be opened at the complex after it is put into operation. Its productive capacity will make up 1 million tonnes of steel a year.

Construction of the aluminum plant of the Det.Al Limited Company involves the Chinese CNEC. The investment period covers 2008 to 2009 during which a total of the investments to be put into the construction are expected to amount to USD 230 million.

The new capacities will increase the power of the plant by 60,000 tonnes a year in result of which its total productive capacity will constitute 160,000 tonnes of aluminum a year. Introduction of the up to day equipment will dramatically decrease the environmental impact and will increase the power intensity of the plant production of each 1,000 tonnes of the aluminum will require 13,600 kilowatt hour of electric power which is by 6,000 kilowatt hour less than at the most power intense aluminum plant in the CIS.

Japan to reduce export of heavy plate to Russia

YIEH reported that Japanese mills are likely to reduce the export of heavy plate to Russia for the second quarter, because they will give domestic demand a priority.

Russian pipe manufacturer, Vyksa Steel Works intended to secure some 100,000 tonnes of heavy plate from Japan in the second quarter. The negotiation between both sides will be started soon. It is said that there will be increasing demand of heavy plates in Russia to meet the expanded consumption in UO pipe production.

On the other hand, Japan’s domestic demand for heavy plate has seen increased demand, due to booming shipbuilding and machinery sectors.

(Sourced from YIEH.com)

Severstal appoints Mr Kuznetsov as CFO

Severstal has announced the appointment of Mr Sergei Kuznetsov as CFO with effect from mid May 2008. Mr. Kuznetsov was previously CFO of Severstal North America Inc. Mr Mikhail Noskov Severstal's outgoing CFO will stay on as a member of the company's Board of Directors.

Mr Kuznetsov, 37, graduated from Bauman Moscow State Technical University in 1994, where he majored in Engineering. In 1998 he received his Finance MBA from California State University. Mr. Kuznetsov started his career in 1994 as an expert in trade operations for steel and steel products at the State Owner Foreign Trade Association Promsyrioimport. In 1995-2001 he worked as a commercial representative at Steel Trading Section of Moscow Representative Office of Cargill Enterprises Inc. He joined Severstal in 2002 to head Business Planning Group created to acquire foreign assets and develop international projects.

Mr Alexey Mordashov CEO of Severstal's said "On behalf of Severstal, I would like to thank Mr Mikhail Noskov for his major contribution to our company. As CFO he introduced modern financial systems, gaining recognition from the global investment community. He was also instrumental in helping the company achieve its London Stock Exchange listing. I am delighted that he will continue to make an important contribution as a member of our Board.”

Mr Mordashov added that “Mr Kuznetsov has been a member of our senior management team for six years. The knowledge and experience he has gained working in both Russian and international markets will be invaluable to the continued growth of our company."

Russia and Hungary to create a gas pipeline JV

FIS reported that Mr Victor Khristenko head of RF Minpromenergo's and Mr Yanosh Veresh PM of Hungary's an agreement on cooperation in the construction of a gas pipeline for transit of natural gas through the Hungarian territory.

Under the agreement Russia and Hungary will create on a parity basis a joint venture to be involved in the construction of the Hungarian part of the gas pipeline. The JV will be registered in Hungary. Gazprom's partner will be a fully owned state company. Under the Southern Steam project an underground storage of the capacity of not less than 1 billion cubic meters will be built in Hungary.

Severstal holds seminar on accounting policy for fixed assets

Severstal has announces that it held an analysts’ seminar in Moscow on March 3rd 2008 to brief analysts on changing its accounting policy for fixed assets from the Revaluation model to the Cost model.

As a result of this change the group’s net assets will be decreased by the accumulated amount of fixed assets revaluations net of tax effect and net profit will be increased by the respective decrease of depreciation, earnings per share will be increased accordingly. This will also decrease minority shares in net assets of certain subsidiaries and foreign exchange differences on translation of financials into the reporting currency. There will be no effect on revenue or EBITDA of the Group.

The release added that “This change will be first time reflected in Severstal’s IFRS financial statements for the year ended December 31st 2007 due to be published on March 17th 2008.”

Mr Mikhail Noskov CFO of Severstal group said that “This change brings us in line with all our peers, thus making it easier to compare steel companies like for like. We believe investors will appreciate the ability to see our financials on the same cost basis as those of our competitors.”

South Korea's to build cement plant in Uzbekistan

Interfax reported that South Korea's Natural Cement Corp Ltd and Uzbekistan's Asia Cement International have set up a joint venture to build a roughly USD 300 million cement plant in Uzbekistan.

Mr Akbar Mukhitdinov head of analysis and development at construction company Uzstroimaterialy said the plant will have capacity to produce 1.7 million tonnes of cement per year.

He said "At present, a land plot has been allocated for the construction of the cement plant and an examination is being made of the investment agreement that is to be signed between the investor and the Uzbek government. He added that Uzbekistan is preparing to build five cement plants with combined production capacity of 8.5 million tonnes per year.”

Uzbekistan is one of the leading cement producers among former Soviet countries.

Rosneft announces tender for oil base construction

Rosneft has announced a tender on the completion of an oil base intended for acceptance, storage and dispatch of light oil products for RN-Trade Ltd. The oil base capacity is 8000 cubic meter and it is to be commissioned in December 2008.

A pump station for oil products of 4 grades was installed in the territory of the oil base. Equipment was installed for the filling front with a cover capable of servicing 8 car tanks at the same time and a railway platform with upper and lower filling for 4 car tanks.

Kazakhstan temir zholy to raise tariffs by 8.9%

Kazakhstan Today reported that National Company Kazakhstan temir zholy will increase tariffs by 8.9 % for services of the main railway network since April 1st 2008

The report added that the tariffs for services of main railway will increase according to the decree of the Agency of Kazakhstan on regulation of natural monopolies of February 21st 2008 on the services of the main railway network of transportations of cargoes and also container, container transportations in international railway transportation by 8.9 % since April 1st 2008.

Mr Karim Masimov PM of Kazakhstan stated that the government is ready to support increase of tariffs for rail transportation. He said "We are ready to reconsider the tariff policy. The government is ready to support development of railway infrastructure. But you should take the guarantee obligation regarding the results, so that we precisely could tell how many carriages will be bought and that grain and mineral oil will be exported on time."