SAIL RSP geared up for record performance in 2007-08

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant is all set to establish new records in its performance during 2007-08 after completing a sterling performance during February 2008 and also set up all time best performance for the period April 2007 to February 2008 as compared to any corresponding period since inception.

In February 2008, RSP recorded production of 284,085 tonnes of sinter up by 27% YoY, 186,720 tonnes of hot metal up by 13% YoY, 179,217 tonnes of crude steel up by 13.5% YoY and 171,584 tonnes of total saleable steel up by 15.8% YoY. It has dispatched 175,537 tonnes of steel during February 2008 up by 18% YoY.

It has achieved record production by surpassing its annual rated capacity production in hot metal, crude steel and saleable steel during April 2007 to February 2008 period for the first time since its inception. During the period, it has dispatched 1.84 million tonnes of steel up by 3.9% YoY.

RSP had commenced the financial year 2007-08 with the strategy of maximizing its volume of production by operating at over 100% of annual rated capacity to bring down production costs for maximizing its profitability.

TATA Steel to start construction on Orissa plant by June 2008

FE reported that TATA Steel is planning to start construction of its 6 million tonne steel green plant at Kalinga Nagar in Orissa by June 2008 and is awaiting delivery of advanced equipment worth INR 4,500 crore anytime now.

Mr Partha Sengupta VP corporate services at TATA Steel said that “We are in the process of vacating the land and are hopeful that construction should begin by June 2008.”

TATA Steel is hopeful that the issues relating to mining leases of iron ore required for backward linkages would be resolved by the time production process starts. It intends to produce 3 million tonnes of hot rolled steel by 2011 and would increase the capacity to 6 million tonne subsequently.

It may be noted that Orissa has already allotted about 2,000 acres of land to TATA Steel. Meanwhile the project office at site has initiated the construction of the boundary wall and other preparatory works at Kalinga Nagar industrial complex.

Foundry industry seek ban of iron ore export to China

It is reported that India’s foundry industry has urged the centre to impose a ban on iron ore export to China so as to arrest a massive unemployment problem.

Mr Jagadeesan chairman of Institute of Indian Foundrymen said that "Though China is the major benefactor of iron ore exports from India, they do not export coke to India as the Chinese government is encouraging export of components and finished goods only. The finished products of iron ore coming out of China cost 25% less than those from India. This affects Indian exports."

He added that "International customers do not appreciate the changes in price very often. This puts the foundry industry at a heavy loss.''

Mr Ilango VP of Coimbatore District Small Industries Association said that China is trying to destroy the Indian market and stressed that the government should either ban or control exports.

Coimbatore, being one of the largest foundry centers with 600 foundries and over 100,000 people employed, bears the brunt as the cast iron export has come down last year. It produces about 500,000 tonnes and exports cast iron worth INR 1,000 crore per annum.

KEC to acquire a TLT construction firm in US - Report

BS reported that RPG Group’s KEC International will soon acquire a mid sized power sector EPC player in the US for at strengthening its presence in the US market

Mr Ramesh Chandak MD & CEO of KEC International said “We have identified a few targets and hope to complete the transaction in a few months.” He added that the targeted company would be a transmission line construction company.

KEC already has a 50:50 JV in the US with Power Engineers, a major power sector consulting company in the US. The JV was formed in 2006 to bid for projects in the US market. The US market contributes 2% of the turnover for KEC with the current order book of over INR 5,000 crore for KEC although overseas projects contribute nearly 68%.

TCIL to open cold rolling facility in May

BL reported that Tinplate Company of India Limited is working on plans to set up 200,000 tones per annum capacity cold rolling facility to feed its tinning line.

As per report, the proposal to set up the cold rolling facility or tin mill black plate line has been approved by the board of directors of TATA Steel and is estimated to entail an investment of INR 450 crore.

Mr Bushen Raina MD of TCIL said that the capacity of its Jamshedpur unit is being augmented from 180,000 tonnes per annum to 380,000 tonnes per annum at an investment of INR 210 crore.

The backward integration project will be implemented within the next 2 years.

TATA Steel holds 35% of the equity stake in TCIL.

Adhunik to invest INR 422 crore to enhance production

Adhunik Metaliks Limited has unveiled details of the third phase of investment at its integrated steel plant located at Kuarmunda near Rourkela in Orissa. As per report, Adhunik will spend INR 422 crore over 17 months to increase production of key inputs for steel making and grow profits.

Phase III of the project envisages backward and forward integration projects. These include

1. Increasing sponge iron production from 0.15 million tonnes to 0.315 million tonnes

2. To set up a 17 MW capacity captive power plant

3. Ferroalloy plant of 19,300 tonnes capacity would be set up to augment the existing 40,000 tonnes capacity

4. A lime calcination plant of 56,000 tonne capacity would also be set up.

5. It will also set up railway connectivity to transport key inputs to the plant site.

Mr Manoj Kumar Agarwal director of Adhunik Metaliks said that Phase II of the project has already been implemented at an investment of INR 437 crore and it’s alloy steel and stainless steel manufacturing capacity has gone up from 0.25 million tonnes per annum to 4.5 million tonnes per annum. The first phase of the project was earlier implemented at a capital cost of INR 250 crore.

Mr Agarwal said that "The project will halve raw material costs and increase operating margins to 26% from 18% now, helping profits to grow."

As per report, Adhunik has tied up with banks and financial institutions for raising INR 274 crore as term loan for the project. INR 148 crore will be financed through internal accruals and equity.

In 2006-07, Adhunik Metaliks reported a net profit of INR 77.4 crore on sales of INR 811 crore. It is aiming at INR 1100 crore in sales in 2007-08.

SRMB to set up a new manufacturing plant at Durgapur

BS recently reported that rebar manufacturer SRMB Udyog Limited is planning to set up a new manufacturing line at Durgapur with an investment of INR 50 crore.

The new plant would be a rolling unit for TMT bars with an installed capacity of 200,000 tonne per annum. Post the installation of its second unit in Durgapur, the installed capacity for TMT bars would go up to 350,000 tonne per annum.

Mr Ashish Beriwala director of SRMB said that “Our first plant in Durgapur was set up in 2006. The second plant will be set up in the same premises and will be operational in a few months.”

SRMB spent around INR 30 crore in setting up its first unit in Durgapur. It has a 150,000 tonne per annum TMT bars plant in Kolkata.

New mining policy likely in 2 months

Mr T Subbarami Reddy union minister of state for mines, while speaking at the summit on mining to steel making organized by the Indian Chamber of Commerce, said that India’s new mining policy is expected to come into effect in another 2 months.

He said that "Under the new policy, allocation of new iron ore mines would be made only to those applicants who plan to do value addition of the ore. This would be a big relief to the steel producers as iron ore is a critical input for them."

Steelcast to set up shipyard in Gujarat

BS reported that Steelcast Limited is planning to set up shipyard dock near Bhavnagar coastline in Gujarat and has already acquired land from the government.

Mr Chetan Tamboli MD of Steelcast said that "We have earmarked INR 100 crore for the Greenfield project and acquired about 130,000 square meter of land in the creeks of Bhavnagar."

Mr Tamboli said, under a new company that is yet to be formed, Steelcast aims to raise the funds needed for the project by a mix of equity, debt and private placements. It has a turnover of INR 18 crore and aims to touch INR 34 crore in 2008.

TATA still hopeful about its investment in Bangladesh

UNI reported that TATA Group is still hopeful of its proposed USD 3 billion investment plan in Bangladesh.

Mr S Manzer Hussain resident director of TATA said that ''We are still hopeful and we want to continue our relations with Bangladesh whatever the business we do.'' He added that it is expected to wait until a stable political situation returns to Bangladesh.

It may be noted that TATA Group had signed an expression of interest with the board of investment in 2004 to implement its proposed investment, which includes setting up a steel mill, a fertilizer factory and installing a power plant. But at one stage of negotiations, the previous BNP government had decided that the next elected government should take the final decision, prompting TATA to suspend its project in Bangladesh in 2006.

Despite the suspension, the TATA Group’s top executives expressed their intention on several occasions to move forward with the project.

Traffic at Major ports in 11 months up by 12.16% YoY

BL reported that The total volume of traffic handled by major ports in April 2007 to February 2008 period is 469.36 million tonnes up by 12.16% YoY as compared to 418.48 million tonnes in April 2006 to February 2007 period.

Kandla Port, with a total traffic throughput of 59.04 million tonnes, has topped the list of major ports in cargo handling during April 2007 to February 2008 period. Visakhapatnam Port ranked 2nd with 58.08 million tonnes and Mumbai Port with 52.01 million tonnes comes third, followed by Chennai with 51.71 million tonnes.

In million tonnes
April 2007 to February 2008

2 railway freight terminals to come up in West Bengal

BL reported that two railway freight terminals in West Bengal, one each at Dankuni and Sankrail, will be set up by Eastern Railway and South Eastern Railway respectively.

The increased traffic will result from the extension of the eastern arm of the proposed dedicated freight corridor to Dankuni. There will also be a logistics park at Dankuni to meet the projected increase in traffic at Dankuni.

Mr KC Jena chairman of the railway board said that a consultant would be appointed shortly to work out an integrated scheme in regard to creation of railway facilities in the state. He added that "The locations of the new passenger terminals would be finalized on the basis of the recommendations of the consultant’s report."

Press break down at Mahindra Forgings

Mahindra Forgings Limited said that one of its presses having a production capacity of around 1,100 tonne to 1200 tonnes per month has broken down and is expected to be put in operation within 8 to 10 weeks.

Mahindra Forgings presently has 7 forging presses having an aggregate production capacity of around 3000 tonnes per month.

Sri Lanka allots site for NTPC project

BS reported that Sri Lankan government has allotted a site in Veloor to National Thermal Power Corporation for setting up a 500 MW imported coal based power project in Sri Lanka.

NTPC was not able to finalize the project site earlier, located near Trincomalee and Sampoor, due to opposition from locals and pro LTTE forces.

The proposed project will be implemented by a JV between NTPC and the Ceylon Electricity Board with an investment of INR 2,500 crore. The annual requirement of coal for the project will be around 2.5 million tonnes per annum, which will cost around INR 600 crore per annum approximately as per current prices.

The project is expected to be commissioned in 2012 and the power generated from the plant will be sold to Sri Lanka.

SAIL and HEC observe National Safety Day at Ranchi

Ranchi Express reported that Steel Authority of India Limited and the Heavy Engineering Corporation have observed 37th National Safety Day on March 4th 2008.

The safety day program, organized by under banner of SAIL Safety Organization, began with a safety walk flagged off by Mr VK Dhawan executive director of SAIL.

Mr Dhawan stressed the importance of maintaining safety standards in all spheres of life to avoid injuries and accidents.

Chief Guest on the occasion, Mr GK Pillai CMD of HEC highlighted the measures to be adopted by the industrial houses to ensure safety on their premises. He also gave away prizes among the winners of the various competitions held on this occasion.

PSA to invest INR 240 crore in ABG Kandla Container Terminal

It is reported that PSA, formerly known as Port of Singapore Authority, is planning to invest up to INR 240 crore in ABG Kandla Container Terminal Limited by way of preferential allotment of compulsorily convertible preference shares. These would not exceed 49% of the paid up equity share capital of ABG Kandla Container Terminal.

In Kandla port, PSA's unit ABG Kandla Container Terminal handles berths 11 and 12 as a container terminal on a build, operate and transfer basis. PSA has sought government approval under Press Note 1 as the activities proposed to be carried out by ABG may be construed to be in the same field as its existing joint venture company in India.

The move comes just a month after ABG Infralogistics announced a pact under which, PSA India would buy a 49% stake in its unit ABG Kolkata Container Terminal Private Limited. ABG Infralogistics is engaged in the business of development, operations management and maintenance of container terminals in Kandla and Kolkata.

PSA holds an interest of 57.5% in PSA Sical which is operating the Tuticorin container terminal on a build own and transfer basis for 30 years. It also has a 60% interest in Chennai International Terminals Private Limited to manage the second container terminal in Chennai on a build own and transfer basis for 30 years.

PSA International is one of the leading global port groups. With its flagship operations in PSA Singapore Terminals and PSA HNN, PSA participates in 28 port projects in 16 countries across Asia, Europe and the Americas, with a global capacity of 111 million TEUs over 66 kilometer of quay length.

Simplex Projects JV to build multi level car park at Kolkata

It is reported that Simplex Projects Limited, in JV with Kolkata Metropolitan Development Authority, has been awarded the contract for development and management of multi level car parking project at Kolkata under built operate & transfer basis under.

The project consists of multi level car parking for about 600 cars and a commercial complex and is to be completed within a time span of 18 months.

Simplex has signed the concession agreement on March 6th 2008 in respect of the above project with the Kolkata Metropolitan Development Authority. It is also entering into a MoU with the Future Group in respect of the leasing of the commercial complex.

NHPC may float IPO in July or August 2008

PTI reported that National Hydroelectric Power Corporation is likely to approach market regulator SEBI by May 2008 for its initial public offer.

Mr SK Garg CMD of NHPC said that "We are waiting for the appointment of independent directors and hope to have them on the board soon as the names have already been forwarded and are under process. The government has extended all support. We should be hitting the market around July or August 2008 and submit revised draft prospectus with SEBI, based on current fiscal's financial performance on March 31st 2008."

NHPC, which has a paid up capital of INR 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10% as fresh equity besides 5% disinvestment. The shares would be face value of INR 10 each.

The proceeds from IPO would be used to part finance the INR 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.

Acerinox and Nisshin to build SS plant in Malaysia

Acerinox SA and Nisshin Steel, after a feasibility study and after considering several alternatives, have decided on construction of a manufacturing plant in Malaysia stainless steel. The plant will be built with high efficiency criteria similar to the plant of North American Stainless in Ghent owned by Acerinox. It will be located in Johor Bahru in Malaysia in 350 acres are with direct access to the sea.

For this project, Malaysia will constitute a new company, which Acerinox will have a majority shareholding.

The new plant will be built in phases and in its final stage will be a comprehensive manufacturing plant stainless steel with 1 million tonnes per year of steelmaking capacity to 600,000 tonnes per year of cold rolling capacity. Estimated total investment amounts to 1,500 million USD. Its construction will begin with immediate effect once the legal formalities. The launch is scheduled for 2011.

The first phase, whose investment of USD 320 million has already been approved, will consist of a workshop cold rolling with a rolling mill Sendzimir of 1,500 mm wide, an annealing and pickling line combination, a train and a workshop skin pass finishes. Its production capacity will reach 240,000 tones per year out of which 182,000 tonnes per year will be cold rolled.

For Acerinox Group this factory in Malaysia, once completed, will join the other three factories in Spain, the United States and South Africa and expand the installed capacity of the group to 4.5 million tonnes.

CSC hikes Q2 domestic base prices by 19%

It is reported that Taiwan’s China Steel Corp has decided to raise domestic basic prices of its steel products by an average of 19% for the Q2 to June 2008.

China Steel said the prices of steel plates and electrical coils will be both raised by TWD 4,500 per tonne, while bar and wire rod products will see a TWD 4,550 per tonne increase. Prices of hot rolled and cold rolled steel will be raised by TWD 4,000 per tonne, steel plates by TWD 4,500 per tonne, hot dip galvanized coil prices will be raised by TWD 3,800 per tonne and electro galvanized coil prices by TWD 3,700 per tonne.

CSC said that despite a nearly 40% rise in production costs due to higher raw materials prices, it opted for a moderate price increase so as not to hurt downstream players.

Mr LM Chung an executive vice president China Steel said "The price of iron ore and coal have been jumping at a scary pace. We could have raised the product prices more this time, but we have to take our downstream clients' competitiveness into account. He said we will be cautiously watching the directions of raw material prices to help determine if we'll raise product prices further."

China Steel has an annual capacity of 11 million tonnes.

Iron ore price negotiations – Vale settles with ArcelorMittal

Vale announced that it has concluded the iron ore price negotiations for 2008 with ArcelorMittal Sourcing SA.

As an outcome of these negotiations, the iron ore prices for Southern System fines SSF FOB Tubarão, increased by 65% relatively to 2007 At the same time, due to its recognized superior quality, it was agreed that the price for Carajás iron ore fines SFCJ will have a premium of US$ 0.0619 per dry metric ton Fe unit over the 2008 price for SSF.

Therefore, the new reference prices per dry metric ton Fe unit for 2008 are USD 1.3441 for SSF and USD 1.4060 for SFCJ.

Noble International secures finance from ArcelorMittal

Noble International Ltd announced that ArcelorMittal intends to invest USD 50 million in the Company in the form of a convertible subordinated note. The proceeds from this financing will be used to reduce the Company's North American senior debt and support its operations.

In a separate transaction, Mr Robert Skandalaris, Noble's Chairman and Founder, has agreed to sell to ArcelorMittal substantially all of his shares in the Company.

The transactions are expected to be completed within the next couple of weeks.

Noble International, Ltd. is a leading supplier of automotive parts, component assemblies and value- added services to the automotive industry. As an automotive supplier, Noble provides design, engineering, manufacturing, program management and other services to the automotive market. Noble delivers integrated component solutions, technological leadership and product innovation to original equipment manufacturers and Tier I automotive parts suppliers thereby helping its customers increase their productivity while controlling costs.

Mr Thomas L Saeli CEO of Noble stated, "ArcelorMittal is the world's largest steel manufacturer as well as Noble's largest supplier, customer and shareholder. Its commitment to invest USD 50 million in Noble will ensure a strong capital structure for the company as we continue to expand in the global marketplace. In addition, ArcelorMittal's proposal represented the most favorable terms and conditions when compared to the other proposals we received through our extended financing efforts. ArcelorMittal currently has a significant investment in the Company through the shares it acquired in connection with the Company's acquisition of its laser welding business. As part of that transaction, ArcelorMittal obtained the right to acquire additional shares in the Company from our Chairman, which it is now electing to exercise. We believe that the financing provided by ArcelorMittal and the acquisition by it of additional shares is advantageous to the Company and should not be considered a 'bailout' as has been reported by certain media outlets."

Mr. Skandalaris, Noble's Chairman, commenting on the transactions stated, "I am very excited by ArcelorMittal's increased involvement with the Company. This represents a tremendous opportunity for Noble. Over the last ten years this Company has grown from one plant with USD 30 million in revenues to a truly global, strategically aligned company with revenues over USD 1 billion and 24 facilities in twelve countries around the world. Over the next ten years, the Company must focus on increasing and enhancing its global presence and strengthening its relationship with its strategic partners and OEMs. Noble's relationship with ArcelorMittal provides a significant advantage over its competitors as it strives to achieve these goals. I believe ArcelorMittal's desire to increase its investment and share ownership demonstrates its enthusiasm for the future of the Company and its commitment to Noble's success. If these transactions close, I will step-down as Chairman, but I leave this Company in capable hands with a future that I could not have imagined ten years ago."

Blast at Nippon Steel plant injures three persons

The world's second biggest steel maker Nippon Steel Corp said an explosion within its Nagoya works at Aichi Prefecture in central Japan injured three people, one seriously.

Mr Hiroshi Nakashima a spokesman for the company said that the blast took place at an acid recycling facility owned by Tetsugen Corp which works with Nippon Steel at the mill. But the accident will not affect steel production.

The Yomiuri newspaper citing unnamed persons at the fire department reported that the incident occurred at the mill in Nagoya. The explosion occurred at 3:50 PM at a calcinating furnace in the hydrochloric acid processing factory that affiliate Tetsugen Co. operates in Nippon Steel's Nagoya Works. The blast blew off the upper part of the 12.8-meter-high furnace with a diameter of 8.3 meters. The piece landed on the workers when it fell to the ground, seriously injuring one and slightly injuring the other two.

Nippon Steel operates two blast furnaces and four hot dip galvanizing lines among other facilities at the works, which serves customers including Aichi based Toyota Motor Corp.

Salzgitter Group key figures for the FY 2007

In the financial year 2007, the Salzgitter Group set a new record high for consolidated sales, thereby considerably exceeding the already excellent operating result of the previous year. Along with the ongoing exceptionally good market for rolled steel products and tubes, the consistent implementation of further growth strategy measures contributed to these gratifying developments.

Salzgitter Group sales rose by 21 % to EUR 10.19 billion. The first time consolidation of Klöckner Werke AG, acquired at the start of the second half-year, in the new Technology Division and other companies in the Tubes Division contributed EUR 665 million to this result. Earnings before tax of EUR 1,314 million impressively outperformed the operating profit of 2006 which is the relevant basis for comparison. The re launch of the profitability improvement program across the Group also made a remarkable contribution to this result.

Good capacity utilization in steel processing sectors raised the demand for steel further in 2007. The total sales of the Steel Division climbed EUR 617 million to EUR 3,967 million. Primarily due to higher selling prices the sales of the large steel companies grew significantly. The Steel Division generated an excellent pre tax profit of EUR 749.4 million, thereby outperforming the previous year’s figure of EUR 433.8 million by 73 %. Against the backdrop of excellent market conditions, the consistent leverage of profitability improvement potential was also a contributing factor.

Mr Zaleski resigns from ArcelorMittal board

ArcelorMittal announced that Mr Romain Zaleski has resigned from the board of directors. Mr Zaleski joined the board in October 2006.

Mr Zaleski has indicated his sole reason for resigning is to pursue other commercial interests in the steel sector.

In line with ArcelorMittal’s principles of corporate governance, Mr Kinsch, Chairman of the board of directors, has accepted his resignation.

Mr Kinsch said “I would like to thank Mr Zaleski for his valuable contribution to the board. We continue to have a very strong and experienced board in place.”

Australian iron roe export reaches record 27.8 million tonnes

It is reported that Australia has exported a record 27.8 million tonnes of iron ore on basis wet in January 2008.

16.1 million tonne was shipped to China, 7.4 million tonne for Japan, and a combined 3.5 million tonne to South Korea and Taiwan.

With so much attention focused on recent temporary infrastructure constraints in Brazil, the data serves as a reminder of the new iron ore export capacity beginning operation in Australia.

JFE to take over Hitachi Zosen stake in Universal Shipbuilding Corp

World’s third largest steelmaker Japanese JFE Holding Inc plans to take control of a shipbuilding joint venture by spending USD 289 to USD 385 million.

JFE announced that that it will take 85% control of Universal Shipbuilding Corp., now owned equally by the JFE group and Hitachi Zosen Corp. It will buy a 34.9% Universal Shipbuilding stake from shipbuilder and heavy machinery maker Hitachi Zosen for JPY 34,933 million by March 31st 2008 and Universal Shipbuilding will therefore become another core operating subsidiary of JFE Holdings.

Universal Shipbuilding, based in Kawasaki, Kanagawa Prefecture, eastern Japan, was formed in 2002 through the integration of the shipbuilding operations of Hitachi Zosen and former NKK Corp, one of the two companies that established the JFE group in the same year. Universal Shipbuilding generated sales of JPY 160,002 million in fiscal 2006 that ended in March 2007 up by 14.5% YoY. It ranks second among Japanese shipbuilders after Imabari Shipbuilding Co. based in Imabari, Ehime Prefecture,
This move may help JFE to merge its shipbuilding business with heavy machinery producer IHI Corp. The joint company, Universal Shipbuilding, will become the world’s sixth largest shipbuilder after merger with IHI’s operations. The annual output will yield about 3 million tonnes with annual sales amount of more than USD 3 billion.

Formosa to invest USD 6.1 billion in steel plant in Vietnam

The china Post reported that Taiwan's Formosa Heavy Industries Corp is planning to invest USD 6.1 billion to build a steel mill in Vietnam.

The Commercial Times citing an unnamed source reported that Formosa was expected to secure Vietnamese approval in the first half of 2008, after Mr Wang Wen yuan chairman Formosa Group met with Mr Nguyen Tan Dung prime minister last week.

The paper said the mill's annual capacity will be 7.5 million tonnes while production is expected to begin in 2011.

The project comes after Formosa invested USD 100 million on a stainless steel plant in a joint venture with a Chinese steel maker in the southeastern Chinese province of Fujian last year.

Formosa Plastics Corp is flagship of the conglomerate which has interests in plastics, petrochemical, semiconductors and biochemical.

South Africa steel bar shortage threatens construction

The South Africa Reinforced Concrete Engineers’ Association said that a shortage of steel reinforcing bars used for concrete reinforcement could seriously affect the progress of South Africa’s infrastructural development.

Mr Rod Mountford director of the association said that members of the association are reporting serious shortages of certain rebar sizes as well as their monthly orders not being supplied in full.

He said that “The construction industry is experiencing an unprecedented demand for rebar because of the large volume of major civil engineering projects currently under way, such as the 2010 Soccer World Cup stadiums and the Gautrain project, to name just two.”

Mr Mountford said that local steel mills are unable to supply the required volumes and said this was worsened by the fact that there was a global shortage of rebar. He added that “There is, in any event, a three to four month lead time for the importation of rebar, with the imported product also more expensive than locally sourced reinforcement.”

Global slab prices expected to reach USD 750 in Q2

Market sources are showing that the export price of steel slab in the Q2 is likely to be USD 750 per tonne up by about USD 70 per tonne from the previous quarter.

Price negotiations for steel slab supply for the Q2 haven’t been launched yet since Brazil Steelworks hasn’t started to make offers to Asian and other countries and what’s more, the furnace of ArcelorMittal Cleveland plant in the USA was damaged and in Mexico’s Lazaro Cardenas plant, conflict broke out between the owners and employees.

Therefore, ArcelorMittal will have to face supply limits on steel slab it means that this group will reduce its slab export allocation. The tight supply situation in the second quarter will surely push the slab export price to higher levels.

(Sourced from YIEH.com)

Vietnam allows iron ore exports to China

VNA reported that Mr Hoang Trung Hai deputy prime minister of Vietnam has allowed the Viet Nam Steel Corporation to export iron ores to Chinese partner for the exchange of fat and coke coal, serving the domestic demand for steel production.

The report added that “In the second quarter of this year, the Ministry of Industry and Trade must report to the Prime Minister on coke coal demands and propose the import of fat and coke coal to feed local steel production plants.”

US steel import permits in February decrease by 8% MoM

Based on the US Commerce Departments most recent steel import monitoring and analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of February 2008 totaled 2.329 million net tons. This was an 8% decrease from the 2.534 million net tonne permit tons recorded in January 2008 and a 12% decrease from the January preliminary imports total of 2.658 million net ton.

Import permit tonnage for finished steel in February was 1.849 million net ton a decrease of 16% from the preliminary imports of 2.197 million net ton in January. For the first two months of 2008 total steel imports annualize at 29.9 million net ton 10% below the 2007, 12 month total.

For February 2008, the largest finished steel import permit applications for offshore countries were
1. China 222,000 net tons
2. Korea 156,000 net ton
3. Japan 97,000 net ton
4. Germany 87,000 net ton
5. India 83,000 net ton

Finished steel import permit applications for Chinese steel declined by 18% in February compared to January preliminary imports. Product categories that have increased in the first two months of 2008 vs. the same period in 2007 include: line pipe up by 59%, heavy structural shapes up by 18% and hot rolled sheets up by 7%.

Mr Andrew G Sharkey III president & CEO of AISI said that “While imports in the first two months of 2008 are below the same period last year, finished steel imports on a monthly basis this year are 10 percent higher than the monthly average in the last quarter of 2007. Our industry will stay vigilant about imports that violate trade rules, and we will continue to monitor closely imports of certain products from certain countries.”

Corus reorganizes Building Products Activities under one roof

Corus' Distribution and Building Systems Division will bring together its existing European building products activities, which had been previously organized regionally, under one Business Unit to be known as Corus Building Systems to achieve its ambitious value creation goals by exploiting synergies, expanding its range of differentiated value added products and offering improved services to customers.

Mr Andrew Black currently MD Corus Building Systems Nordic is appointed MD the new Business unit reporting to Mr Scott MacDonald, division director of Corus' Distribution and Building Systems.

Corus Building Systems will be established with effect from 1 April 1st 2008 and will comprise of
1. SAB Profiel, The Netherlands and Germany
2. Fisher Profil, Germany
3. Montana, Switzerland
4. Catnic and Profiles, UK
5. CBS France
6. CBS Nordic
7. Corus Kalpinis Simos, JV with Kalpinis Simos of Greece
8. Corus Building Systems Bulgaria, JV with Horizont-Ivanov of Pleven, Bulgaria

In addition, CD&BS's distribution activities in France and Spain will be now be included in the Division's existing 'Distribution & Building Systems, Central Europe', and renamed, 'Corus Distribution Europe'. The Division will thus have two major Distribution Units - Corus Distribution UK & Ireland and Corus Distribution Europe - in addition to the new Corus Building Systems, as well as the existing business units of Corus International, Corus Consulting and Kalzip, with Managing Directors as follows:
Mr Andrew Black - Corus Building Systems
Mr Alastair Aitken - Corus Distribution UK & Ireland
Mr Adriaan Vollebergh - Corus Distribution Europe
Mr Uwe Martens - Kalzip
Mr Kieron Wilkinson - Corus International
Mr Rod Jones - Corus Consulting

Mr Scott MacDonald said "This restructuring will enable us to fully capitalize on the growth and significant performance improvements of the divison, which have been made in these businesses over the last 3 to 4 years. The formation of Corus Building Systems will allow us to further develop synergies in our continued focus on value creation and growth to meet our ambitions, while offering more value added products and services to our customers."

Construction starts on Nghi Son steel complex in Vietnam

VNA reported that ground was broken to mark the beginning of construction of the Nghi Son steel complex in northern Thanh Hoa province in Vietnam on March 6th 2008.

With an annual capacity of 2.25 million tonnes, the steel project is the largest of its kind in Viet Nam so far. Its 8 trillion VND investment comes from domestic sources.

The project’s first VND 1.5 trillion phase is set to end in the fourth quarter of 2009. It is expected to produce up to 750,000 tonnes of steel ingot a year.

The second phase is scheduled to start in 2010 with a VND 6.5 trillion investments to increase the factory’s annual capacity to 2.25 million tonnes of products.

The completed factory is expected to supply hot rolling steel for the construction industry and steel panels for shipbuilding.

BBI completes expansion of DBCT

The Sydney Morning Herald reported that Dalrymple Bay Coal Terminal in Queensland has completed an AUD 530 million expansion of the facility, increasing capacity to 68 million tonnes per annum.

As per report Port operator Babcock & Brown Infrastructure announced the completion of first phase expansion works at the port, increasing capacity from 59 million tonnes per annum. The facility services about 20 different customers in the Bowen Basin, including Rio Tinto Ltd, Xstrata Plc and Macarthur Coal Ltd all of which transport by rail on the Goonyella coal chain link.

Mr Eric Kolatchew BBI project director and acting CEO of DBCT in a statement said that "This major achievement will benefit both BBI and our coal mining customers. The challenge now is for the rest of the Goonyella coal supply chain to boost export performance to match DBCT's new capacity."

Infrastructure constraints have restricted the supply of coal to customers, helping to drive up the price of the bulk commodity and contributing to higher costs for mining companies. Further expansions to the facility are planned to increase the terminal's capacity to 85 million tonnes per annum.

Dalrymple Bay is the world's third largest coal export facility. =

German February crude steel output down 1.3% YoY

According to Germany’s Federal Statistical Office, German crude steel production in February 2008 was 3.77 million tonnes down by 1.3% YoY, while pig iron output slipped 4.4% YoY to 2.32 million tonnes. On a MoM basis, crude steel production was down 4.7%, while pig iron production eased 2.2%.

It added that adjusted for seasonal and calendar effects, crude steel production fell 8.3% in February from January 2008.

US wire rod market strengthens

YIEH reported that due to factors like tight supply quantity, rising scrap price and high imported wire rod price, people expect wire rod price to soar in the US market and buyers will have no choice but to accept for the new price level.

Last week, the wire rod price had already risen by USD 33 per ton and the price keeps climbing strongly. The low carbon wire rod price is about USD 827 to USD 849 per ton, high carbon wire rod price is about USD 882 to USD 904 per ton and the wire mesh usage wire rod price is about USD 805 to USD 827 per ton now in the US domestic market.

So far, the demand in the US market is not strong; however, wire mills will still announce the new higher wire price for April and May shipments.

(Sourced from YIEH.com)

STX Shipbuilding eyes sales of KRW 3 trillion in 2008

Korea.net reported that STX Shipbuilding Co, the world's fifth largest shipbuilder, is targeting KRW 3 trillion (USD 3.17 billion) in sales in 2008 as compared with KRW 2.13 trillion in 2007.

STX Shipbuilding in a regulatory filing said that it expects its operating income to reach KRW 200 billion in 2008 as compared with KRW 94.8 billion in 2007.

STX Shipbuilding in 2007 saw its net profit more than quadruple as it built more high priced ships to carry chemical products and others. Shipyards in Korea, the world’s largest shipbuilding nation, have received record orders in recent years as demand has surged for vessels to transport raw materials to China and goods to the rest of the world.

RBCT exports 5 million tonnes in February 2008

Richards Bay Coal Terminal exported 5.07 million tonnes of coal in 51 vessels in February, an improvement on the 3.5 million tonne it exported in 44 vessels in January 2008.

Although exports picked up in February 2008 they are still down on February 2007 when RBCT managed to export 6.2 million tonne of coal in 61 vessels.

The terminal had stocks of 2.87 million tonnes at the end of February compared with stocks of 2.6 million tonnes at the end of January, according to statistics released by RBCT.

Coal market participants have expressed concern at the terminal's recent patchy export performance.

Australian trade deficit widens as coal exports drop

Bloomberg reported that Australia's trade deficit widened more than economists forecast in January as imports rose and floods disrupted exports of coal.

The Bureau of Statistics in Sydney said that the shortfall grew to AUD 2.72 billion from a revised AUD 1.94 billion in December 2007. The median estimate of 24 economists surveyed by Bloomberg News was for AUD 2.55 billion gap.

It said that a worsening trade deficit may further curb the economy, which grew at the slowest pace in more than a year in the fourth quarter as resource shipments dropped. Deliveries of coal from BHP Billiton Ltd. and other producers have been hampered by floods, while cyclones led to the temporary closure of oil fields and iron ore export ports this year.

Italian H beam price to keep soaring

It is reported that the Italian market price of H beam is soaring due to robust demand and high cost of scrap and it is expected that the price will further rise during March.

The demand for H beam in Europe is very strong at present, especially in Middle Europe, France and Germany. Thus, Italian traders are positively doing bulk purchase in order to replenish their stocks. However, it is difficult time for most traders because the soaring price may not be accepted by customers at this moment.

According to estimate, mills are going to raise their prices in step for March. The base price will be soared, followed by surcharge.

(Sourced from YIEH.com)

Taiwanese construction sector calls for subsidy in rebar prices

It is reported that Taiwan’s local construction companies are forming a united front a move rarely seen in recent years in a fight for government financial subsidy as recompense for their great losses resulted from skyrocketing prices of raw materials.

Taipei based Chinese National Association of General Contractors executive members decided last week that they will go on strike for three days from March 11th 2008 if the government fails to come up with measures to help tide their members over the challenge of rising prices of steel rebar.

Mr Ou Lai Chen a Chinese National Association of General Contractors executive member said that the surging material costs are eating away at the profits of public construction contractors.

Japan Seamless Pipe Supply to Get Tighter

JMB reported that Japanese seamless steel pipe supply is expected to get tighter for April to September 2008 with strong export demand for oil well tube and domestic market.

As per report the supply is likely to decrease due to regular maintenance by Sumitomo Metal Industries and JFE Steel.

Japanese scrap prices at record levels as demand soars

Bloomberg reported that Japanese scrap iron and steel prices rose to a record for a fifth consecutive week as demand from Japanese, South Korean and Chinese steelmakers rose and a drop in building demolitions reduced the supply of reclaimed girders.

Japan Ferrous Raw Materials Association said that the average cost of H2 grade ferrous scrap jumped by 3.6% to an all time high of JPY 46,297 per tonne this week. It added that rising steel demand from shipyards and carmakers in China and South Korea has pushed up prices of scrap, which steelmakers use to replace some or all of the iron ore and coking coal used to make the alloy.

Mills are using more scrap amid soaring prices for raw materials while a stricter building code started last year in Japan has choked the supply of used steel from buildings knocked down to make way for new ones.

Alcoa to invest USD 1.2 billion in Quebec smelter

The Canadian Press reported that Alcoa is planning to invest USD 1.2 billion in its aluminum smelter at Baie Comeau in Que a move the company says will guarantee 3,900 direct and indirect jobs. The project is slated to begin in 2008 and to end in 2015.

As per report Mr Alain Belda CEO and Premier Jean Charest said that the money will go to modernizing the 51 year-old facility. The modernization will boost the smelter's production capacity to 548,000 tonnes a year, which represents an increase of 110,000 tonnes.

The report added that Investissement Quebec, a provincial investment agency, is offering a USD 228 million interest free loan guarantee as part of the project.

Mr Belda said that "I am very proud and very happy to be among our employees today. Their work and their commitment to the success of their smelter constitute a guarantee of Alcoa's future in Quebec. Recently, each of our Quebec smelters celebrated the anniversary of their start up 50 years in Baie Comeau, 20 years in Becancour and 15 years in Deschambault. We can now face the future with confidence.”

Siemens consortium to build Mainz coal fired power plant

A consortium led by Siemens, comprising Austrian Energy & Environment and the Japanese company IHI, will build a coal fired combined heat and power plant in Mainz. The supervisory board of the purchaser, Mainz Wiesbaden AG confirmed the contract on February 28th 2008.

Mainz Wiesbaden AG had already signed a contract with Siemens covering planning, supply, erection and commissioning of the main components for this power plant. Despite increases in the number of bottlenecks prevalent worldwide in the power plant construction sector it is thus possible to set the completion date for 2013 and ensure planning security. The value of the order for the consortium totals approximately EUR 1 billion, with the Siemens share amounting to around half.

The hard coal fired CHP plant with a gross rated capacity of over 800 MW will be built at the existing Mainz Wiesbaden AG power plant site in Mainz. The power plant licensing phase is already underway and construction is scheduled to commence late 2008 / early 2009.

The Siemens scope of supply encompasses key components such as the steam turbine and generator, and the electrical and I&C systems, including the associated planning, installation and commissioning. The consortium partners, the working group comprising AE&E and IHI will supply the tower boiler, the flue gas desulfurization plant and other supply and disposal systems. Within the working group AE&E is also responsible for overall erection. Further key supplies such as the plant’s coal handling and ash removal systems, and principal civil structures will be provided by the customer and integrated into the plant.

Mr Michael Süss CEO of the Siemens Energy Division Fossil Power Generation said that “Thanks to the advanced technology the power plant will attain a very high efficiency of 46% and will be one of Europe’s most modern plants. Beside electricity the cogeneration plant will also produce 200 MW of district heat for as many as 40,000 households and approximately 30 MW process steam for industrial plants in Mainz. We will thus achieve an optimum fuel efficiency of 60 percent.”

Dr Olaf Thun project manager at Mainz Wiesbaden AG said that “At the same time this helps the industrial plants in the vicinity to avoid some of their own emissions. The site is this particularly suitable for the erection of a CHP plant. It will make a key contribution toward reliable and cost-effective power supply in the Mainz Wiesbaden region.”

Cerrejon shareholders welcome review of social performance

Carbones del Cerrejón Limited and its shareholders, Anglo American, BHP Billiton and Xstrata Coal welcome the publication of an independent review of Cerrejón's social engagement.

The review was jointly commissioned by the shareholders and management in August 2007. The final report from the review published in its entirety comprises an independent assessment of Cerrejón's past and present social engagement practices together with a number of recommendations. Cerrejón's management team is currently developing a comprehensive response to the report, including a detailed action plan to address the report's recommendations.

The independent review panel was chaired by Dr John Harker, president of Cape Breton University in Canada. The Panel consulted a wide range of stakeholders and produced a balanced set of recommendations. Cerrejón's management will now produce a comprehensive response to the report as well as an action plan to address these findings by the end of March 2008. Management intends that the response and action plan will be made available to stakeholders shortly after completion.

The report highlights a number of areas of good practice by Cerrejón including:
1. The operation's contribution to the local and national economy
2. Its commitment to contributing to the sustainable development of local communities
3. Its extensive human rights training program for employees, contractors, police and army representatives
4. Its objective of raising performance standards in the mining sector.

The report also identifies areas in which the mine could enhance its social practices, including recommendations to:
1. Strengthen the presence and capacities of civil society groups in the region
2. Improve revenue transparency
3. Facilitate reconciliation between the disparate groups formed by the former inhabitants of the village of Tabaco and address the current situation of all former residents through a consultative, participatory process
4. Consider more broadly the impact of resettlement on neighboring communities such as Tamaquito and Media Luna
5. Increase the access of Wayuu indigenous peoples to economic opportunities created by the mine
6. Change aspects of the way in which it administers social investment.

Anglo American, BHP Billiton and Xstrata Coal made the following joint statement in response to the report: “As shareholders in Cerrejón, each of our companies welcomes the generally favorable observations made by the Panel. Its recommendations for areas of improvement provide a robust and credible platform from which Cerrejón can address legacy issues and continue to improve its social engagement practices, in line with its vision to be a ‘company of exemplary ethical behavior, respectful of human rights and that contributes to the welfare and development of the communities where it operates.”

It added that “Cerrejón's management team and its shareholders are committed to carrying forward the Panel's recommendations with vigor and we look forward to the publication of Cerrejón's detailed response and action plan at the end of this month. It is particularly pleasing that the Independent Review Panel and Social Capital Group have consulted a very broad range of stakeholders through this process. We fully support the Panel's recommendation that all interested parties should now work constructively together to address the outstanding issues identified by the report.”

Vale sees alumina output at 5.3 million tonnes in 2008

BNamericas reported that Brazilian mining and metals group Vale expects alumina production of 5.3 million tonnes in 2008 as compared to 4.3 million tonnes in 2007.

Mr Fábio Barbosa CFO of Vale told analysts and investors that the increase would be a result of an expansion project at Brazilian alumina company Alunorte, in which Vale owns a 57% stake. Norway's Hydro holds 34% of the Pará state refinery and private Japanese and Brazilian companies hold the balance.

Mr Barbosa said that the new capacity at Alunorte is due to come on stream in July or August 2008. Meanwhile, pellets production is expected to increase some 17% in 2008 to 41.8 million tonnes.

RAK Steel set to commence production

Gulfconstructionworldwide.com reported that RAK Steel, spearheaded by Ras Al Khaimah Investment Authority, is to commence commercial production of a range of rebars for the construction industry at the end of last month, following completion of trial production.

The new energy efficient and environment friendly, 500,000 tonnes per year deformed steel reinforcement bar manufacturing mill has been set up with an investment of USD 50 million and will be the second largest producer of rebar in the UAE.

Dr Khater Massaad, chairman RAK Steel and CEO of Rakia said “RAK Steel will produce rebar from 8 mm to 40 mm diameter in variable lengths of 6 meters to 18 meters to both British and American standards.”

MMK and Atakas Turkish JV to start construction in March

Turkish daily Yeni Safak reported that Magnitogorsk Iron & Steel Works and Turkey's Atakas Group will begin building a USD 1.4 billion steel plant in Turkey in March 2008.

The plant, in the southern province of Iskenderun, will produce 2.5 million tonnes of hot and cold rolled steel.

Scrap prices continue to soar in Turkey

It is reported that due to the strong demand for rebar and flat bars in Turkey’s domestic market, prices have soared from the middle of February 2008.

Affected by the soaring prices, most of Turkey’s steel mills have been rapidly purchasing materials. Last week, the mixed scrap price climbed to USD 460 per tonne and the predicted price will reach USD 480 per tonne due to the influence of exchange rates in the European market.

Besides, the price of A3 Black Sea scrap is soaring to USD 470 per tonne, with the price set to hit USD 500 per tonne in the near future.

DEWA delays USD 19 billion debt issue

Khaleej Times reported that Dubai Water & Electricity Authority will wait until the second half of 2008 to return to the debt market after delaying a 2007 bond sale.

DEWA will need to invest USD 19.1 billion during the next 4 years, raising most of that through loans and bonds. In 2007, it shelved a plan to sell bonds after the US mortgage crisis made investors more reluctant to lend.

Mr Saeed Mohamed Ahmed Al Tayer CEO of DEWA said that "For Islamic bonds we are waiting for the market to recover and would only go into the market after June 2008."

Mr Al Tayer said that "Long term loans would have a maturity of 10 to 15 years. Sukuk forbid the receipt of interest and now, we are only looking for short or medium term loans."

DEWA is seeking to increase capacity by 150% by 2012 from 5,000 MW of electricity and 255 million gallons per day of water as demand surges in the Gulf Arab emirate. It forecasts demand for power and water will grow as much as 20% per year in Dubai.

EPA to act tough with steel mills in Lahore over pollution issues

The Post reported that the industries located in the urban areas of Lahore are posing severe environmental hazards by polluting the air and water.

Mr Asif Shuja chief of Pakistan Environment Protection Agency said that “Steel factories are a contributing factor in air pollution. Around 8 furnace mills, including Hussain Steel, Zia Steel, Modern Steel, Potohar Steel, Mumtaz Steel, Pak Steel and Al Hadeed Steel are located in I 9 and I 10. Smoke emissions from these factories have elevated carbon concentrations in the air.”

He added that "Though all the 8 furnace factories have installed scrubbers in the mills, they do not operate them to avoid heavy electricity bills. Nor do they run treatment plants at night."

Mr Shuja said that the agency could slap more than a PKR 1 million fine and also order immediate closure of the mills polluting the environment. He added that the agency had issued notice to 3 steel mills namely Ittehad Steel, Modern Steel and Pothohar Steel and that it had taken action against four factories in the past and kept them closed until they installed treatment plants.

He said that Pakistan Environment Protection Agency took action on the complaints of residents and stakeholders to minimize environmental hazards. He added that "Pakistan Environment Protection Agency in collaboration with the civic authority and Islamabad Chamber of Commerce & Industry was cracking down on polluters.

As per report, steel and marble factories and flour mills in sectors I 9 and I 10 pose a threat to nearby residential areas as well as the whole environment. As many as 400 industrial plots are located in both the sectors, where residential populace live.

Burj Dubai delayed due to interior design

Emaar said that the 4 month delay to construction of Emaar Properties' Burj Dubai is related to the interior design of the tower. As per report, Burj Dubai, which was slated to open sometime before Christmas this year, may not now be finished until spring 2009.

Emaar said that it would rather see a nominal delay to the project than compromise the quality of building's interior. It said “The company would rather opt for a nominal delay in total quality execution of the Burj Dubai interiors than compromise on any aspect of quality. Several design considerations for the interiors were rejected at various stages of the project development."

The statement follows remarks by Emaar Chairman Mohamed Alabbar earlier on Tuesday that the Burj Dubai was four months behind schedule and might now not be finished by the end of this year as originally planned.

Burj Dubai currently stands at just over 600 meters, over 90 meters higher than the world's tallest building, Taiwan's Taipei 101 and over 40 meters higher than the world's tallest free standing structure, Toronto's CN Tower. The only structure now left for the Burj to overtake is the KVLY/KTHI television mast at Blanchard is US, which measures 628.8 meters. Emaar has remained tight lipped over the final height, but it is rumored to be between 700 and 1,000 meters.

The Burj Dubai is to be the centerpiece of a city within a city, Downtown Burj Dubai. The USD 20 billion development as a whole will include 30,000 homes, nine hotels, 6.2 acres of parkland, 19 residential towers, the Dubai Mall, and a 30 acre manmade lake.

UAE construction sector facing RMC crisis

Emirates Business reported that the real estate boom in the UAE is set to hit a major roadblock that could seriously affect the completion of projects across the Emirates. As per report, the problem lies with companies that supply ready mix concrete.

Representatives of these suppliers told Emirates Business that they are struggling with a huge backlog of orders due to a massive shortage in the supply of cement and that they have issued their clients notices that they are not in a position to supply more than 45% of the ready mix orders.

As per report, some RMC companies have even ceased production.

In order to cope with the huge demand for concrete, some ready-mix companies are looking to cement imports as a viable option, regardless of the high cost. A RMC company said “We are ready to import cement at whatever cost because it is a necessity. If the situation persists, I think this will be the only available option to us.”

The shortage has been triggered by the high cost and lack of cement, according to ready mix producers. In the past week itself, cement prices in the country have gone up by 25% with factories arguing that it is a direct result of increasing oil prices in the region having a knock on effect.

Contractors are worried that the shortage might cause another hike in cement prices in the country. The shortage of cement and the subsequent lack of concrete also risks causing a delay in the delivery of some projects if the situation persists.

Rail Agency to award two tenders for Dubai Metro works

Emirates Business 24/7 reported that Dubai based Roads & Transport Authority’s subsidiary Rail Agency is set to award two separate tenders for projects worth billions of dirhams to increase the number of lines and length of Dubai Metro. As per report, two contracts, one for the construction of the Blue line and another for the extension of the Red line, will be awarded by the second quarter of 2008.

Mr Abdulredha Abu Al Hassan director of planning at Rail Agency said that "We will be awarding the contract for the construction of the Blue line in the second quarter of 2008 and international companies will be invited to take part in an open tender, Contractors would be chosen on the basis of the latest technologies and innovative designs they brought to the table. Every day, new designs and new technologies are emerging and we will seek to use the latest designs and technologies, which might be different from those used on existing lines."

The Blue line will run along Emirates Road and will link Dubai International Airport to Dubai World Central in Jebel Ali.

The Red line will also be extended by another 12 kilometer from Jebel Ali Free Zone to the Dubai Abu Dhabi border at a cost yet to be revealed. However, Mr Al Hassan said that it would be a separate project whose cost is not currently reflected in the AED 15.5 billion set aside for Dubai Metro. He added that the project was ready for tender and is awaiting for the go ahead from government authorities, as are new development programs along the route.

He said the station on the Dubai Abu Dhabi border will be a multimodal design to accommodate any future integration of the Abu Dhabi rail line. A feasibility study is currently being conducted for an extension of the Green line from Jaddaf, where it stops currently to International City, with a possibility of being extended to Academic City. He added that "Wherever there are new developments, we assess the need for either a metro line or an additional station. More lines and more stations will be added based on the number of passengers."

It may be noted that in 2007, a contract estimated at AED 10 billion was awarded to Parsons Brinckerhoff for the initial design work on the Purple line, an express Metro line linking Dubai International Airport with Al Maktoum International Airport and running along Al Khail Road. Currently, 76% of the work on the Red line has been completed, with all the tunnels and underground station structures finalized and most of the concrete viaducts lay. 26% of the work on the Green line has been finished. All metro tracks under construction are expected to be ready by the end of 2008 and will then undergo testing before the opening of the first phase by September 2009.

Turkey may shut all shipyards on worker safety issues

Turkish Daily News quoted Mr Faruk Celik Turkish labor minister as saying that all the shipyards in Istanbul's Tuzla district will be closed down if they do not implement regulations to prevent further worker deaths.

Mr Celik said that "The success of shipyards should be with respect to human lives, otherwise, regardless of the success it means that one earns money from deaths. 25 deaths had resulted from work related accidents recently, but did not specify a time frame.”

He said that a campaign that will harm the shipyard sector will not be correct. There were 37 shipyards in Turkey until 2002 and now there are 76, with this number expected to increase gradually due to the numerous new orders. The sector is involved in a serious amount of exports and this leads to exchange inflows to the country.

Mr Celik said that Tuzla's shipyards were among the first issues that he looked into on the first day he took up his ministerial duties. He added that "I knew that it is a risky sector. I went to Tuzla the week I became minister and inspected two shipyards. We are not working impulsively on shipyards because of public reaction. We are trying to enhance peace at work."

Meanwhile, the Confederation of Revolutionary Workers' Union and Limter İş met with the Turkish Shipbuilders Association last week to discuss possible safety measures to prevent work related deaths. The three organizations are expected to meet once more this week.

According to data from the Port, Shipyard, Ship Construction & Repair Workers Trade Union 18 workers have died in the last eight months. There are some cases where the cause of death has not been established, but those were included on the list of work related deaths.

Greece welcomes economic cooperation with Iran

IRNA reported that director of bilateral economic cooperation department of Greece foreign ministry has welcomed expansion of economic and commercial ties between Iran and Greece.

According to Iran embassy's report in Athens, the two sides discussed economic cooperation and other fields for bilateral cooperation between the two countries.

2nd phase of Tondgouyan petrochemical project inaugurated

IRNA reported that Iranian President Mr Mahmoud Ahmadinejad has inaugurated the 2nd phase of Martyr Tondgouyan petrochemical project in Mahshahr Special Petrochemical Zone on March 6th 2008.

Mr Gholam Hossein Nozari Iranian oil minister, Mr Gholam Hossein Elham a government spokesman and several local officials attended the inaugural ceremony of the project.

The project has cost some IRR 1,400 billion.

Chinese plate export offers reach a new high

Mysteel has reported that export offers for steel plate have witnessed another jump and it has set record high price again. Current price level is believed to have reflected the domestic market price increase.

Quotations for commercial HR plate have risen to USD 930 per tonne FOB and the highest is USD 955 per tonne FOB for April shipment. The increase is almost across the board and some traders are surprised at such a swift rise.

A Shanghai based trader told Mysteel the steel makers have raised price again to achieve better profit than that from domestic market. There would be little sentiment for exports if prices are under USD 900 per tonne FOB.

Plate producers indicated that current export quotations are for May and June shipments and most of them are upbeat on the outlook. However, export volume has been on the decrease for months, taking into account higher and higher purchasing cost for overseas buyers. It is noticeable whether tonnage will drop further following this price lift.

(Sourced from MySteel.net)

Anshan and Benxi steel to merge in 2008

China Knowledge cited Mr Yu Tianchen president of Benxi as saying that the long awaited merger of Anshan Iron & Steel Group Co and Benxi Steel Group is expected to start this year.

He said that the merger proposal is now subject to regulatory approval that is expected to be granted within the year. In fact, the two steel makers were merged in 2005, but still keep independent operations due to some historical and structural reasons.

Anshan Iron & Steel Group is China's second largest steel producer. After the incorporation completed, the combined production capacity of the new entity will press on towards Baosteel Group, the largest steel company in China.

NDRC and CISA meet to prepare steel demand forecast

China Securities Journal reported that the National Development & Reform Commission and China Iron & Steel Association have jointly hosted a symposium to do spade work for steel demand forecast.

As a fundamental industry of the national economy, steel sector has met demand from various other industries over the years and its rapid development, presented by largest steel production for 12 straight years in the world also boosts anticipation of all regions that project to invest in steel expansion. Thus, making a good demand forecast to give guidance to its growth is of great significance to sustainable and healthy development of the steel industry.

On the symposium, industries division of NDRC analyzed current economic situation and gave stress to the importance of making steel demand forecast well. The CISA introduced steel industry status while the major industry associations made detailed account of their development, demand for and consumption of steels as well as the trends.

The symposium attendees said with rapid growth of the national economy, steel consuming sectors such as construction, machinery, light industry and automobile all kept fast headway these years. Processing with specific condition of each sector, the associations offered data about steel demand and the calculation methods of each of the downstream industries.

In the meantime, they put up requests in terms of variety and quality of the steel products. In specific, the railway department hoped to raise output of 100 million cut length steel rail with improved quality; the real estate industry wanted to make more 500 million per annum high strengthen corrosion resistant rebar; and the machinery sector called for localization of they needed special steel varieties.

The industries department and CISA shall proceed with steel demand forecast based on data offered by each sector.

Baosteel to supply 22mm thick X80 plates

It is reported that Baosteel's X80 pipe line steel plate with thickness of 22mm has been proven qualified and will be supplied to the second line of west east gas pipeline project. The steelmaker thus becomes the only qualified one in the product.

The second line of west east gas pipeline project, constructed by China National Petroleum Corporation is the country's first natural gas introducing pipe line project. The completion is slated for 2012.

As per report the project mainly requires X80 pipe line steel and the key part of the main stem demands 22mm X80 pipe line steel plate. So far even overseas steelmakers are lack of experience and ability of mass productions of the product.

As China's largest steelmaker, Baosteel has developed the product under support from CNPC and can supply the product to the pipeline project. The steelmaker is also trying to develop some other high quality assemblies for the project.

Former German Chancellor visits Baosteel

Mr Gerhard Schröder former chancellor of Germany paid a visit to Baosteel in the afternoon of 4th March. Baosteel Group deputy general manager Mr He Wenbo welcomed Mr Schröder and his company in Pudong Steel.

After introducing Baosteel's production operations, market development and strategic planning, Mr Wenbo remarked that the support from the large enterprises of Germany is indispensable to the development of Baosteel, and he hoped to further strengthen the cooperation for the future.

Mr. Schröder praised that Baosteel was permeated with the sense of modernization. He thought that the road of development of "fine product plus scale" Baosteel had taken conformed to the developing direction of large modern steel complex. He wished sincerely that Baosteel would fulfill its strategic target of development at an early date.

Mr. Schröder visited the new plant of Pudong Steel in Luojing with great interest and wrote an inscription readily.

China country wise steel export in January 2008

China has exported 4.130 million tonnes of various steel products in January 2008 to 92 countries across the globe.

The details of country wise

In million tonnes

WISCO invests CNY 260 million in Xinwen Mining

It is reported that WISCO and Shandong Xinwen Mining Company signed share transfer agreement on March 5th 2008 under which WISCO would invest CNY 260 million to purchase 5% stock of Shandong new dragon Energy Company.

Xinwen Mining group is the only supply enterprise for WISCO coking coal, the two sides have cooperated for more than 30 years, Xinwen Mining company provides more than 1 million tonnes coal to WISCO every year. The production capacity of the key project invested by Shandong new dragon Energy Company is estimated to reach 6 million tonnes every year.

Mr Shun Wendong of WISCO expressed that this move can satisfy WISCO 100% supply to produce rich coal, if the coal prices rise or the coal resources is shortage, WISCO will not be afraid.

Tangshan Steel 2008 output to rise by 10% YoY

It is reported that China's Tangshan Iron and Steel Group plans to raise its 2008 output by 10%.

Mr Wang Yifang president of the group while speaking on the sidelines of an annual parliamentary gathering as saying that China's third largest steel maker expects to produce 25 million tonnes in 2008.

China biggest recipient of FDI in 2007

It is reported that China retained its ranking as the top target for foreign direct investment last year attracting USD 90.4 billion, while India came second and the United States third in flows.

Consultants OCO Global said in an annual report that overall, global cross border FDI grew by 5.1% in 2007 to USD 946.8 billion. The group said China also remained top of the list for number of FDI projects with 1,171. The amount of money it attracted, however, was a decrease from USD 116 billion a year earlier.

China was also number one for jobs attracting 366,111 of the estimated 1.2 million new posts created in the Asia-Pacific region. India came second in investment flows attracting USD 52.5 billion. It was third in number of projects with 676 which created 246,361 jobs.

The United States was third in the OCO Global list in terms of FDI inward flows bringing in USD 46.8 billion to create 107,141 jobs. It was second in projects with 783. Within Western Europe, Germany attracted the most money with USD 22.8 billion followed by Britain with USD 18.7 billion. Britain also had the most projects for Europe with 622.

Illegal operation blamed for coal mine fire in Liaoning

The provincial safety watchdog in Changchun said a mine where 17 people were killed by a fire in northeast China's Liaoning Province early recently was operating illegally

The Liaoning Provincial Safety Supervision Administration Bureau said the Jinan Coal Mine a private operation at Dongliao County of Liaoyuan City with an annual production capacity of 60,000 tonne had no license for coal production.

The mine, which also had inadequate safety conditions and poor management continued to operate after the Dongliao County safety authority ordered it to cease production on February 28th 2008.

The Liaoyuan Municipal Safety Supervision and Administration Bureau and the provincial coal mine safety bureau, respectively also issued notices ordering it to stop production.

The people responsible for the fire have been arrested, according to the conference. The detailed cause of the accident was still under investigation.

Minmetals plans expanded logistics arm

Reuters cited Mr Zhou Zhongshu president of Minmetals Corp as saying that China's state owned Minmetals Corp plans to consolidate its logistics business into an independent subsidiary and boost the unit's annual capacity.

Mr Zhou also proposed that China set up a national mining development fund for domestic and overseas projects, under the initiative of the country's sovereign wealth fund which manages USD 200 billion.

Mr Zhou said "We suggest that the China Investment Corp take the lead, in cooperation with major domestic metals and minerals enterprises to develop domestic and overseas mineral resources. He said Minmetals, parent of Hong Kong listed Minmetals Resources Ltd and Shanghai listed Minmetals Development is studying plans for a listing of the whole group, although he gave no details about a timeframe or potential size of the offering.”

Mr Zhou said the company aims to acquire domestic city commercial banks and trust companies, although he mentioned no specific targets. He also expected that the company's Indian iron ore pellet project would start production next year.

Minmetals Corp and pipe manufacturer Xinxing Ductile Iron Pipes Group formed an iron and steel making venture in India late last month with a total investment of USD 72 million for the initial phrase, the first major Chinese investment in that country's steel industry.

Panzhihua Steel to invest in technical reforms

It is reported that Panzhihua Steel has confirmed a plan to invest CNY 6 billion to complete technical reforms on vanadium and titanium steel projects in 2008.

The mill completed fixed assets investment of CNY 4.07 billion in 2007, involving 100 meter rail surplus heat quenching production line at New Steel Vanadium’s rail plant, new RH vacuum treatment unit at steel making plant, new 150,000 tonnes per year OCTG production line at Panchenggang, relocation and upgrade of heat extending pipe machines and 159 continuous rolling pipe machines, new cleaning line for pipe billet and tailings treatment system at titanium concentrate plant.

In 2008, the mill will focus on technical reform on expanding vanadium products and building new lines, carry out expansion and reform on titanium concentrate and establish key projects like rutile titanium dioxide, sponge titanium and titanium products production lines. As far as steel is concerned, the mill will strengthen structural adjustment, implement reform on sintering system at New Steel Vanadium and relocations of No 3 and 4 coking ovens as well as build premium steel bases.

Scrap prices surge in Jiangsu

It is reported that scrap price in Jiangsu Province keeps rising recently with notable upswings of CNY 280 per tonne within recent two weeks. Given prices hikes in steel, billet and pig iron markets, scrap price advances are reasonable.

Shagang Group raises price by CNY 150 per tonne with latest price standing at CNY 3620 per tonne for charging quality scrap 1 and CNY 3530 per tonne for heavy scrap

Nantong Baori by CNY 150 per tonne, for heavy scrap price stand at CNY 3650 per tonne and for small scrap at CNY 3600 per tonne;

Suzhou Steel by CNY 80 per tonne, for heavy scrap price stand at CNY 3580 per tonne

Huaigang by CNY 100 per tonne, for heavy scrap price stand at CNY 3580 per tonne.

Besides, Yonggang will hike purchase price by CNY 50 per tonne tomorrow to CNY 3600 per tonne for heavy scrap.

As per report price gap between scrap and pig iron stands at CNY 500 per tonne in East China after a decrease of some CNY 150 per tonne. However, pig iron sellers are optimistic of future market and hold off orders, leading to only a few transactions. Pig iron price will go up further in the coming days. On the other hand, billet price presents continuous upswings due to insufficient supply, driving up scrap price.

(Sourced from MySteel.net)

Shenhua CTL project to start operation in September 2008

China Knowledge reported that China's largest coal enterprise, Shenhua Group construction of its production line of coal liquefaction is well on track and is expected to produce the country's first barrel of oil converted from coal in September 2008

Shenhua started the Inner Mongolia based project last year which is also the world's first production line of its kind. The project will involve more than CNY 10 billion and will be able to produce around 10 million tons of oil annually after completion in 2010.

Mr Xue Ji deputy president of Shenhua's energy company said the project will be profitable. Nearly 4 tonnes of coal can produce one tonnes of oil at the cost of around USD 23, much lower than the international oil price of about USD 100 a barrel.

However, a coal to oil project with a one million tonne annual capacity will need 10 million tonnes of waters; therefore, many courtiers were hesitant to put it into mass production.

Australian and China in clean coal research agreement

It is reported that Australia and China have signed a formal international agreement for clean coal research which could result in a massive reduction in greenhouse gas emissions from the coal fired power stations that proliferate throughout both countries.

The agreement, between Australia's Commonwealth Scientific and Industrial Research Organization and China's Thermal Power Research Institute will see TPRI install commission and operate a post combustion capture pilot plant at the Huaneng Beijing Co-Generation Power Plant as part of CSIRO's research program.

Dr John Wright director of CSIRO's Energy Transformed National Research Flagship said low emission energy generation was a key research area for the Flagship and he welcomes the support of the Australian Government. He said "This project is part of a major research program to identify ways to significantly reduce greenhouse gas emissions from the energy sector."

Dr Wright said "Climate change is a critical issue for Australia and internationally and we are delighted to be working with TPRI to help find solutions to this global challenge. He said the project will focus on assessing the performance of an amine based PCC pilot plant under Chinese conditions. It will allow PCC technology to be progressed in the Chinese energy sector which will have a much greater impact than operating in Australia alone.”

He added that "Our Chinese partners are aiming for the Beijing pilot plant to be up and running before August this year." The installation of the PCC pilot plant in Beijing is a CSIRO Energy Transformed Flagship research project and forms part of the Asia Pacific Partnership on Clean Development and Climate initiative. The APP program for PCC also includes a pilot plant installation at Delta Electricity's Munmorah power station on the NSW Central Coast, with an additional Australian site currently under negotiation.

The Energy Transformed National Research Flagship is also undertaking PCC research outside the scope of the APP program with a USD 5.6 million project in the Latrobe Valley which focuses on brown coal.

Chinese companies focus on WA gas fields

It is reported that Chinese steel companies who have already bought into Western Australia's iron ore projects are now looking to negotiate gas supply contracts, to ensure they have sufficient energy reserves to power those developments.

The Chinese companies are looking at the state's untapped gas fields as a source of energy.

Mr Ian Christie oil and gas analyst says the Chinese interest makes sense. He said "It is no surprise at all that the Chinese are looking to put their foot on WA's gas reserves, after all, they're scouring the globe for practically anything."

Guangdong faces severe power shortage

Reuters reported that China's manufacturing hub, Guangdong province will give heavy subsidies to small power producers and speed up the addition of new capacity to tackle a severe power crisis this year.

Ms Li Miaojuan head of the Guangdong's Development & Reform Commission said generating stations fuelled by oil and gas previously meant for closure due to their size and high costs would be allowed to operate to help plug an estimated 10 GW shortfall at the peak. She said "We face a grave power supply situation this year brought by the recent snow disaster since January 24th 2008 that cut supplies from the western region."

Ms Li said that power cuts would first hit sectors that were highly polluting and highly energy consuming. Sectors like small steel plants will have to shut altogether when it's necessary.

Ms Li said to battle the crisis, Guangdong will also accelerate building new power plants and distribution lines. She said "We seek strong support from Beijing as we foresee a supply shortage of over 6 GW shortages to last for the next two to three years."

In a separate statement, the governor of western Guizhou province, Mr Lin Shushen, said that Guangdong would get an extra 3 giga watts of power a year from western provinces by 2010. Mr Lin said a west-to-east power link would have 10 GW capacity by the end of the decade, compared with 7 giga watts at present.

Ukrainian steelmakers to spend 28% more on upgrades in 2008

Interfax cited Mr Vasily Kharakhulakh the head of industry association Metallurgprom as saying that Ukrainian steel companies plan to increase investment in overhauls, modernization and construction by 28% in 2008 to nearly UAH 13 billion.

Mr Kharakhulakh such investment jumped 57.3% to UAH 10.168 billion in 2007. He said Alchevsk Iron & Steel Works led with investments of UAH 3.7 billion. ArcelorMittal Kryvy Rih, Ilyich Iron & Steel Works of Mariupol and Azovstal each invested UAH 1.3 billion to UAH 1.35 billion. He added that industry wide capital expenditures per tonne of steel produced came to about UAH 237.50 while the generally accepted figure in world practice is USD 25 to USD 30 per tonne. At AMK, the figure was UAH 916.70 or USD 181.50 per tonne.

Mr Kharakhulakh said investment focused on construction of new and overhauls of existing facilities for preparation of raw materials, blast furnace and steelmaking facilities and energy infrastructure; introduction of new technologies aimed at energy conservation and replacing traditional energy sources, as well as technology that dramatically reduces pollution.

Mr Kharakhulakh said Metallurgprom members increased production in current prices by 32.4% in 2007 to UAH 112.188 billion while net sales totaled UAH 114.123 billion. However, operating margins slipped to 14.77% from 14.88% in 2006 which he attributed to the higher cost of inputs. He said Ukrainian steelmakers aim to produce 38.3 million tonnes of pig iron, 46 million tonnes of crude steel and 40.6 million tonnes of finished roll in 2008.

Mr Kharakhulakh said "But the operations of companies in the second half of last year especially in October to December showed that the program needs substantial corrections, especially in issues of securing the necessary amount of coking coal. He said 19.6 million tonnes of coke would be needed to produce the targeted amount of pig iron. He added that Ukraine's preliminary resources of coking coal in the concentrate equivalent amount to 17.4 million tonnes while 31.1 million tonnes are required. The remaining 13.7 million tonnes must be imported which is quite problematic."

Mr Kharakhulakh also said that production costs are expected to increase dramatically this year, with prices for metal expected to rise 29%. He said the average profit margin will be about 7% in the first quarter, 5.3% in the second, 2.9% in the third and 6% in the fourth, with an average of 5% for the year. Tax payments are projected to drop by UAH 1.2 billion.

Mr Kharakhulakh said seven or eight plants will be operating at a loss, while seven or eight might maintain a positive margin. He said "There is also a pessimistic forecast: the annual profit margin is expected to be about 2%, and tax payments will drop by CNY 2.3 billion."

MMK posts rise in annual revenue

FIS reported that Magnitogorsk Iron and Steel Works revenue in 2007 under RAS grew by 17.87% YoY to RUB 190.287 billion (USD 7.91 billion).

MMK's gross profit increased by 4.42% YoY to RUB 61.282 billon (USD 2.55 billion) and sales profit rose by 2.67% YoY to RUB 51.447 billion (USD 2.14 billion). As reported earlier, MMK's net profit grew by 39.36% YoY to RUB 51.723 billion (USD 2.15 billion).

SeverCorr barge facility completed

Dispatch Staff reported that the Columbus Lowndes Port Authority and a company known as Kinder Morgan Energy Partners have worked together to provide SeverCorr with a crucial link in the steel production process and has announced the completion of its new barge unloading terminal on the west bank of the Tennessee-Tombigbee Waterway directly across the waterway from the Columbus Port.

Mr John Hardy director of the Columbus-Lowndes Port Authority said “The terminal has been unloading barges since the beginning of February. But they have just recently begun functioning at full capacity, which is around 1 million tons per year.”

Mr Hardy added that “Right now, the terminal is completely dedicated to SeverCorr.”

Basically, barges bring materials such as scrap metal, pig iron from South America and HBI from South America. These are all raw products used in the steel making process. Once the materials arrive on barges, a state of the art equilibrium crane will unload them onto trucks which will ship them to the SeverCorr plant.

Kinder Morgan invested about USD 8.5 million on the 30-acre facility.

DMKD announces USD 3.2 billion CAPEX

Millennium Capital reported that Industrial Union of Donbas’s Ukrainian Dniprovskiy Steelworks has recently presented its USD 3.2 billion modernization program. In 2008 DMKD will spend USD 0.75 billion on modernization.

The program calls for a complete switch to continuous casting and concentration on finished products only. In particular, DMKD plans for repairs to its two current continuous casters and the installation of two ladle furnace units. At the same time the construction of a new blast furnace is also on the way.

ArcelorMittal Temirtau develops 5 year program for mine upgrading

Interfax-Kazakhstan reported that ArcelorMittal Temirtau has developed an investment program for upgrading its mines as a response to the findings of the governmental commission after the explosion at the Abai mine.

Mr Yost appointed as CFO of Severstal NA and SeverCorr

Severstal North America Inc and SeverCorr have announced the appointment of Mr Mark J Yost as Chief Financial Officer. Mr Yost will be responsible for the financial management of both divisions of Severstal and will report to Mr Ron Nock president & CEO of Severstal NA and Mr Jim Hrusovsky CEO of SeverCorr.

Mr Yost recently served as manager of profit analysis and business planning at Severstal NA and will replace Mr Sergei Kuznetsov. Mr. Kuznetsov was appointed CFO of OAO Severstal in Moscow; he will commence that role mid May 2008 and will assist Mr Yost during the transition.

Mr Yost graduated from University of Michigan in 1995. From 1995 to present, he has held a number of financial positions with the company: auditor, accountant, financial analyst, manager of profit analysis, budgeting and treasury and manager of profit analysis and business planning. Mr Yost had also been recently been moved to a developmental assignment in the Purchasing office of SNA prior to this announcement.

Mr Nock said “Mark brings to the CFO role twelve years of financial experience in the steel industry and at our company, having served in key accountancy and financial analysis roles with us both before and after the 2004 purchase of Rouge Steel Company by Severstal.