JSW crude steel production in May 2008 up by 19% YoY

JSW Steel Limited announced that it has registered 19% YoY Growth in crude steel production in May 2008.

The break up of production during May 2008 is as under

Volume in million tonnes
Change is YoY

MCX launches futures trading in carbon credit

It is reported that Multi Commodity Exchange on Monday launched futures trading in carbon credit contracts for November 2008 and February 2009.

MCX said that
1. Under the contracts launched, trading would be for 250 tonnes of CER units with a maximum order size of 10,000 tonnes
2. The daily price limit for CER would be 5% and the initial margin would be for 6%
3. The delivery centre for the CER would be in Mumbai

Carbon credits are generated by entities for shifting to clean technologies, resulting in carbon emission reduction. They are bought by firms in rich nations for meeting targets on cutting down the quantity of carbon released into the atmosphere.

JSW to shut down HSM for 17 days from June 12th

JSW Steel Limited announced that the shutdown of its hot strip mill for around 17 days starting from June 12th 2008.

The shutdown is being undertaken for modernizing HSM to enhance capacity from 2.5 million tonnes per annum to 3.2 million tonnes per annum

The mill is expected to be re commissioned after modernization on June 30th 2008

Ankit Metal starts 4MW captive power plant

Ankit Metal & Power Ltd has informed BSE that it has started the generation from its 4 MW AFBC captive power plant.

Dr Pramod Deo takes over as chairman of CERC

Mr Sushilkumar Shinde union minister of power administered the Oath of Office and Secrecy to Dr Pramod Deo Chairman Central Electricity Regulatory Commission.

Dr Pramod Deo has recently served as the Chairman of Maharashtra Electricity Regulatory Commission. Before joining MERC in 2002, he had acquired 30 years of experience in the Indian Administrative Service of which more than 20 years of experience has been at both policy and project management levels in the energy sector.

An alumnus of IIT Delhi, Dr. Pramod Deo has worked in the Ministry of Power, Government of India, Department of Energy, Government of Maharashtra and international institutions like United Nations Environment Program and Asian Institute of Technology. He is the recipient of the World Wind Energy Award 2005 and was conferred with the CII National Award for Distinguished Personality-Energy Management for the year 2006. He is also co author of three books on energy planning, energy management and regulatory practice.

BD Castings raising funds for steel plant

BS reported that Kolkata based Goyal Group’s BD Castings and Bishan Dayal Goyal & Sons are in discussions with financial institutions for private placement.

Mr Kailash Chand Goyal one of the promoters said that the company is looking to raise around INR 150 crore to INR 200 crore through private placement. He said that in the first phase the plant would have a finished steel capacity of 0.3 million tonnes which would ramp up to 0.65 million tonnes in the second phase.

According to the report the total investment in the two phases would be around INRR 500 crore.

BD Castings is in the process of purchasing land directly from the farmers. The land requirement for the project is 150 bighas in the first phase.

Car sales in May 2008 up by 14.26% YoY

PTI reported that domestic passenger car sales in India rose by 14.26% YoY in May 2008 to 110,743 units from 96,923 units in May 2007.

According to the figures released by the Society of Indian Automobile Manufacturers, motorcycle sales in the country during the month was up by 7.39% YoY at 513,209 units as against 477,901 units in May 2007.

Total two wheeler sales in May went up by 6.99% YoY at 647,358 units as compared to 605,014 units in May 2007.

Commercial vehicle sales during May 2008 increased by 6.11% YoY to 35,294 units from 33,262 units in May 2007.

Vedanta upgraded to positive from negative - S&P

Bloomberg reported that Vedanta Resources Plc, India's largest zinc producer advanced in London trading after Standard & Poor's boosted the company's credit rating to positive from negative.

Mr Anshukant Taneja S&P analyst based in Singapore said that “The outlook revision reflects greater clarity on some company developments, especially the uncertainty on operating the alumina refinery in Orissa, India.''

Vedanta rose 25 pence or 1.1% to 2,283 pence on the London Stock Exchange. The stock has advanced 12% this year boosting the company's market value to 6.6 billion pounds.

Vedanta, controlled by billionaire Mr Anil Agarwal has acquired assets and boosted sales from plants in India, Australia and Zambia since 2005 to meet growing demand from India and China, the biggest consumer of copper and zinc. The company bought a 71% stake in Sesa Goa, India's biggest non state iron ore exporter for USD 1.37 billion last year.

Adani Logistics to develop 14 inland container depots

Project Today reported that Gurgaon based Adani Logistics is set to develop 14 inland container depots across the country by 2010. The total investment for the project is estimated to be around INR.1,000 crore.

According to the report the container depots are likely to come up in Delhi, Mumbai, Chennai, Bangalore, Coimbatore, Ludhiana, Kolkata and Nagpur. Delhi alone is likely to have 5 ICDs and work on ICDs in Patli and Kishangarh are already being implemented.

It is also reported that that besides this project Adani Logistics plans to develop a special transportation line to service consumer durable and FMCG freight movement from north to west and west to south.

Adani Logistics is already transporting cars through the rail rakes to Mundra Port from where they are further moved to Kochi. In Patli, it has acquired 180 acres of land for setting up an ICD out of which 80 acres have been developed. The ICD has been developed with a land cost of INR 90 crore and construction cost of INR.78 crore.

China and Canada ink deal for Etah power plant

BS reported that power troubles in Uttar Pradesh could witness an early end as Canada based Canasia Power Corp is signing a turn key construction deal with China National Electric Equipment Corporation for its Jawaharpur supercritical thermal power plant. The plant is to be built in Etah about 85 kilometers from Agra and about 235 kilometer from Delhi.

According to the company sources an agreement to design, engineer and build the USD 1.1 billion power plant on an aggressive timeline was reached between the senior management of Canasia and CNEEC in Beijing last week.

According to the report the project was initially designed as a sub critical 800 Megawatt thermal power plant. In view of increasing environmental concerns and the deepening power needs in the state and the country, Canasia increased the capacity of the plant from 800 megawatt to 1,320 Megawatt up by 65%. It also converted from conventional to supercritical, clean coal technology for further mitigating environmental impact and increasing efficiencies.

The sources said the power supply from Jawaharpur plant will also help reduce air pollution in the important cities of Delhi and Agra by potentially shutting down tens of thousands of small to medium-sized diesel generators operating as back-up power systems.

Uttar Pradesh government has guaranteed to buy all the power produced by the station for 30 years through the UP Power Corporation Ltd. The power plant will be designed and built by a consortium of foreign and Indian companies through an international tender bid process with an emphasis on Canadian participation, which could be around USD 300 million to USD 400 million. The majority ownership will also be Canadian, through Canasia.

J&K to spend INR 500 crore on infrastructure projects

India leading News Paper Economic times reported that Jammu & Kashmir government is spending INR.500 crore to raise 40 important infrastructure projects including construction of roads and bridges in Kashmir division.

The news paper added that work has already started on 32 projects of which four are water supply schemes to provide augmented water supply in Srinagar, while work is apace on three sewerage projects. These projects are estimated to cost INR 189.58 crore.

Around INR.278 crore are being spend on 16 road projects while the economic reconstruction agency is incurring INR.42 crore on construction of 17 bridges.

REC to launch PE fund

BS reported that Rural Electrification Corporation is planning to enter into private equity arena by floating a PE fund for lending to power sector projects in the country.

As per report, REC is planning to set up the PE fund in tie up with US based Wachovia and may launch one offshore and another onshore fund.

The report added that REC may also join hands with financial institutions like LIC to be a part of fund.

Welspun buys Vikram Ispat

Aditya Birla Group’s Grasim Industries announced that it would sell its sponge iron business to Welspun Power and Steel Ltd for INR 1,030 crore (USD 239 million). Grasim Industries that said it will hive off Vikram Ispat, the sponge iron business division, by way of slump sale and that the transaction is expected to be completed within the next six months.

Under a court approved scheme of arrangement, Grasim would transfer Vikram Ispat to an yet to be formed special purpose vehicle, a subsidiary of Grasim. The transaction was approved by the company’s board of directors during its meeting.

Commissioned in 1993, Vikram Ispat has a total capacity of 0.9 million tonnes and recorded a turnover of INR 950 crore in the financial year 2007-08.

Mr Ravi Kastia Business Head of Vikram Ispat said that sponge iron is not the company’s core business but despite high raw material cost, the business has been profitable due to better price realization. He said that “The income from the sale would not be treated as business income and hence will not attract tax. The company would invest the proceeds in its core business of cement and fiber.”

ONGC reject Gazprom offer

Project Today reported that Oil & Natural Gas Corporation is not likely to accept Gazprom, Russia's offer to pick 50% participatory stake in its shallow water exploration asset in the North Eastern coast off the Orissa coastline.

According to the report a consortium of Gazprom and GAIL has acquired the block in NELP I. However, GAIL surrendered its 50% participatory stake in the block following the consortium had hit two dry holes in 2007. Following the GAIL's exit Gazprom had approached ONGC with a farm in offer approximately six months ago. Both the companies previously entered agreements to jointly explore oil and gas fields in India, Russia and third countries.

The other major factor that has come in the way of ONGC in joining the block is the lack of time for completion of the work program. Having signed the production sharing contract in October 2000, Gazprom is reportedly pushing the end of the scheduled period for completion of the promised exploration activities in the block.

SAIL BSL to keep steel city clean through NGOs

Ranchi Express reported that the Steel Authority of India Limited’s Bokaro Steel Plant’s management has taken a bold step and handed over the cleanliness and garbage disposal responsibility to two NGOs namely ‘Sahyogini’ and ‘Anmol Drishti’.

The contract has been given for one year and it is reported that INR 70 lakhs will be paid to the NGOs for this work.

According to the report the management has launched this project with a new slogan ‘Clean Bokaro, Green Bokaro’. The local administration and the public health services have been given the task to monitor the working of the two NGOs. The work will be reviewed after a year and the management will take a decision if the work is to be continued in this fashion or alternate arrangements to be made.

BSL management has informed the residents that no money is to be paid to the workers clearing the garbage. Residents have been given phone numbers of concerned officials who can be contacted in case of complaints.

Longest bridge in Kashmir completed after 18 years

News Post India reported that the Bemina Bridge, which is Kashmir's longest, was inaugurated recently by Mr Ghulam Nabi Azad chief minister of Jammu and Kashmir 18 years after the project was launched. The bridge was completed in 18 years at a cost of PKR.100 million.

According to the report work on the 284 meters long bridge which started in early 1990s had once been abandoned midway causing great inconvenience to thousands of people living on the either side of the Bemina flood spill channel, especially during rains and floods.

Mr Azad told mediapersons that the completion of the Bemina bridges was pending for long. He said that “When it was brought to my notice I visited the spot for stocktaking and found that a vast population was subjected to inconvenience and hardship due to the prolonged delay in the completion of the bridge. I then asked the project executing agency to complete the project within 11 months."

BHEL to manufacture ultra deep water rigs

Project Today reported that BHEL is planning to diversify into manufacturing of deep and ultra deep water oil rigs at an investment of INR.3,000 crore.

According to the report BHEL has already initiated talks with overseas rigs manufacturers for a technology tie up and has proposed a joint venture arrangement to undertake this diversification.

It is also reported that BHEL is willing to offer a majority stake to its JV partner in the proposed tie up. The company is in talks with two leading firms for the tie up and the proposal is in the very nascent stage.

BHEL is in the process of signing a contract with ONGC for refurbishment of onshore rig, which entails an investment of INR.900 crore. It is also expected to get a contract for onshore rig in the gulf region.

Apeejay Shipping to set up ship building yard at Dhamra

Statesman News Service reported that Apeejay Shipping Limited proposes to set up a ship building yard and ship repairing facility at Dhamra with an investment of over INR 2200 crore.

According to the report the project proposal was cleared by the high level committee and new company is named Oceanic Shipyard Ltd and will be floated for the purpose. The high level committee chaired by Mr Naveen Patnaik chief minister of Orissa okayed the project and will require 1050 acres of land and the project shall be established within five years from the date of possession of land.

It is estimated that the ship building and repair facilities will provide direct employment to over 11,000 people and indirect employment to over 40,000 persons. Besides, the ship building project, the committee also cleared the petro chemical and petroleum investment region proposal as suggested by the central government. The region spread over 250 square kilometers will be anchored by IOCL and will not cause any displacement.

The proposal had been sent to the Centre earlier but some queries were raised relating to state government’s share in terms of infrastructure development. The committee decided on this issue and agreed to provide INR 2700 crore towards infrastructure development over a period of 23 years. The Central government and IOCL on their part will provide INR 5800 crore for the same purpose.

Gammon India acquires stakes in 2 Italian firms

Reuters reported that Construction firm Gammon India Ltd overseas units have acquired stakes in two Italian firms.

According to the report the deals include acquiring 50% stake in power sector services firm Sadelmi Spa and 75% stake in steam turbine maker Franco Tosi Meccanica Spa.

Gammon did not disclose financial details of the transactions.

JSW profit down by 5% to 10% in 3-4 months

Reuters cited Mr Sajjan Jindal MD of JSW Steel Ltd as saying that JSW Steel Ltd has faced 5% to 10% erosion in profit margins over the last 3 to 4 months on rising raw material prices.

He said that "There is a huge cost effect at JSW Steel the profit margin is definitely going to be impacted."

According to the report JSW Steel, like other domestic steel firms has committed to hold steel prices till July despite rising iron ore and coal prices in a bid to tame soaring inflation in India.

Indian Railway revenue in April to May up by 19.85% YoY

The total approximate earnings of Indian Railways on originating basis during April to May 2008 were INR 13334.72 crore compared to INR 11125.95 crore during the same period last year, registering an increase of 19.85% YoY.

The total goods earnings have gone up from INR 7383.35 crore during April to May 2007 to INR 9121.74 crore during April to May 2008, an increase of 23.54% YoY.

Ispat Energy inks MoU for power plant in Jharkhand

It is reported that Ispat Energy has signed a MoU with Jharkhand government to set up a 1980 MW power plant near Khunti. According to the MoU, Ispat will carry out pre-feasibility tests for 12 months for setting up the plant expected to cost around INR 8,000 crore.

Ispat Energy will set up its plant in three phases with production units of 660MW being commissioned in each phase. The first phase would be completed within 36 months while the remaining two phases will take 42 months and 48 months, respectively. The cost of setting up the plant and the township would be INR 8,040 crores.

A team of expert from Ispat visited the state and selected around 2,000 acres at Govindpur in Karra near Khunti for the project.

Jharkhand government has assured the company that it will provide single window clearance for all permits and licenses and also promised Ispat captive coal blocks to feed the plant.

Mr JP Agarwal director finance of Ispat Industries said that the state will have a claim on 25% and the balance power will be sold outside the state.

US continues AD on steel nails from China and exempts UAE

The US Department of Commerce announced its affirmative final determination in the antidumping duty investigation of imports of certain steel nails from China. Commerce also announced its negative final determination in the AD investigation of imports of certain steel nails from the United Arab Emirates.

Commerce determined that exporters from China have sold steel nails in the United States at 0 to 118.04% less than normal value. China’s two mandatory respondents, Paslode Fasteners Co Ltd and Xingya Group, received final rates of 0% and 21.24%respectively. In addition, 64 respondents qualified for a separate rate of 21.24%. All other Chinese exporters received the China wide rate of 118.04%.

As a result of the affirmative final determination in the China investigation, Commerce will instruct US Customs and Border Protection to continue to collect a cash deposit or bond on entries of steel nails from China based on the final rates for all companies, except Paslode Fasteners Co Ltd.

Commerce has also determined that exporters from the UAE have not sold steel nails in the United States at less than normal value. The UAE’s mandatory respondent, Dubai Wire FZE/Global Fasteners Ltd received a final rate of 0%. All other UAE exporters also received a final rate of 0%.

Therefore, the UAE investigation will terminate and Commerce will instruct CBP not to suspend liquidation of entries from the UAE and to refund any cash deposit or release any bond.

The investigations covered certain steel nails, having a shaft length of up to 12 inches and produced from various grades of steel and have a variety of finishes, heads, shanks, points and sizes.

The petitioners for these investigations are: Mid Continent Nail Corporation; Davis Wire Corporation; Gerdau Ameristeel Corporation; Maze Nails; Treasure Coast Fasteners Inc and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

EAF capacity addition to increase scrap demand in South Korea

JMB reported that South Korean electric furnace steel makers expand the furnace capacity.

1. Dongbu Steel which starts hot rolled coil production in summer 2009, decided to add 100 tonnes electric furnace
2. Dongkuk Steel adds 100 tonnes furnace to improve the operation.
3. Hyundai Steel will restart 50 tonnes furnace at Incheon plant in September after the restart of 70 tonnes furnace in May.

The expansion could increase South Korean ferrous scrap demand by annual 6 million tonnes by end of 2008. The higher scrap demand in South Korea could support Japanese scrap market.

World DRI production in 2007 up by 12%

Midrex Technologies Inc announced that the total world production increased by more than 12% in 2007 to 67.22 million tonnes.

It said that a number of new plants began operation, particularly in the Gulf Region and in India. Also, the largest HBI module yet constructed the LebGOK II MIDREX® Plant, started up at Gubkin in Russia.

The release added that “Cumulative MIDREX® DRI production passed the half billion tonne mark in 2007. The MIDREX® Direct Reduction Process led the way for the 29th consecutive year with 39.7 million tonnes. Current growth rates are so high that the next half billion tonnes of MIDREX® Iron is expected within only eight additional years, by 2015.”

Following the MIDREX Process, the next largest was the combined production of the rotary kiln, coal based processes. All together, they made nearly 15 million tonnes. HYL/Energiron plants generated 11.3 million tons. All others accounted for 1.3 million tonnes.”

POSCO has to raise prices on cost pressures - President

Bloomberg reported that POSCO is planning to raise product prices as raw material costs have advanced faster than expected.

The report quoted Mr Yoon Seok Man president of POSCO as saying that “We cannot help but to go for price increases under these circumstances. Raw materials are rising more than expected.”

Mr Park Hyun Wook an analyst with Hyundai Securities Co said that “We expect POSCO to raise prices again. The only thing left is when the increase will be made.''

So far this year, POSCO has boosted the price of hot rolled coils by a combined 35% to KRW 700,000 (USD 678) per tonne with gains in February and April. Still, the contract price of iron ore, used to make steel has risen at least 65% in 2008 and mills are paying three times more for coking coal.

PT Kerakatau prepares for house decision on privatization

The Jakarta Post reported that PT Krakatau Steel is set for the House of Representatives to choose either a strategic sale or an Initial Public Offering to conduct its privatization. Indonesia’s government's plan to privatize the company, which has a production capacity of 2.5 million tonnes has been embroiled in controversy.

Mr Taufiequrachman Ruki chief commissioner of Krakatau Steel said that "We are working very hard right now to be ready for anything. We are currently re evaluating our assets, being diligent and sending reports to the capital market supervisory agency and financial institution.”

Mr Sofyan Djalil state minister for state enterprises has said that a strategic sale would be most beneficial to meet rising domestic demand for the commodity which is expected to rise to between 8 million and 10 million tonnes per year by 2012. Mr Sofyan recently said that an IPO would be more politically viable, though not economically advantageous. He added that "The debate is no longer about substance but about politics so I urge the House to make a decision as soon as possible. And if it's an IPO, I challenge the company to have one by September.”

So far, five global steel giants have stated their interest in gaining a stake in Krakatau Steel, including the world's largest steel producer, ArcelorMittal. However, the proposal of a strategic sale, where the company would be sold in chunks to selected investors, has met opposition from Krakatau Steel's management and labor unions, which prefer an IPO.

Vietnamese steel demand growth will slow in 2007

Vietnam industry analyst forecasted that, Vietnam's steel demand growth may more than halve this year as the government tries to curb inflation.

Mr Jati Santiono senior technical manager at the Southeast Asia Iron & Steel Institute said that “Vietnam has a big problem with inflation and apparent steel consumption growth may slow to 15% and demand surged 43% in 2007 to 10.2 million tonnes.

Mr Santiono said that “The Malaysian government announced they may cut mega projects, so demand will fall. In Thailand, things are not settled politically, which may affect demand.''

Mr Nguyen Tan Dung PM of Vietnam is trying to restrain consumer prices that rose 25.2% in May 2oo8 by putting the fight against inflation ahead of promoting economic growth. The central bank has raised borrowing costs to the highest since 1998.

Mr Vo Hong Phuc minister of planning and investment on June 6 said that Vietnam will cut state spending 10% this year to cool price gains. According to an announcement state owned enterprises must get prime ministerial approval to invest in property or financial markets.

Mr Irene Cheung a strategist at ABN Amro Bank NV told Bloomberg Television that “They have to tighten policy much more sharply. Their inflation rate is much higher. In the case of Vietnam, it's 25%.''

Brazilian pig iron exports in April up by 32% YoY

It is reported that Brazilian pig iron exports totaled 399,000 tonnes in April 2008 up by 32% YoY.

The report said that America was the leading destination for much of the pig iron, taking 225,000 tonnes down by 12% YoY.

Taiwan reduced its intake by 12.6% to 69,000 tonnes from the same month of last year and China imported 65,000 tons.

Moreover, Brazil exported some 1.97 million tonnes of pig iron in the January to April 2008 period up by 6.3% YoY.

(Sourced from YIEH.com)

Rautaruukki to supply steel structures for Russia

Rautaruukki has signed a contract with Oris LLC to supply steel frame and cladding structures for the company's first oriented strand board production plant in Russia. The plant will be located in Vostochny about 200 kilometers to the northeast of Moscow. The contract is valued at almost EUR 12 million.

Rautaruukki said that the deliveries of frame and cladding structures will begin in August and continue until November 2008. Production at the new premises will start in February 2010. The steel structures will be made at Ruukki's plant in Obninsk.

Mr Frank G Baylow MD of Oris LLC said that "We chose Ruukki as our partner because they have extensive experience in designing steel frame and cladding structures. Also their delivery reliability and product quality influenced our choice.”

Usiminas most capable to handle Petrobras projects - Analysts

BNamericas reported that Brazilian integrated steelmaker Usiminas is likely to be the biggest supplier and beneficiary of state oil company Petrobras, USD 5 billion, six year program to build 146 support boats.

In May 2008, the oil company announced plans to lease support boats for its oil and gas exploration undertakings along the Brazilian continental shelf. The first of a total seven bidding processes consists of the manufacture of 24 boats by shipyards, which could buy the steel they need from Usiminas.

Mr Pedro Galdi an analyst at local brokerage SLW said that "Usiminas is the only heavy plates manufacturer in Brazil. The ArcelorMittal Tubarão is about to start offering heavy plate products, but it will only supply smaller specific parts and not ship hull construction."

Meanwhile Spanish investment bank Banif's Gilberto Cardoso Jr said that most steelmakers in Brazil are currently not able to handle projects of this magnitude. He added that "But if there is one, Usiminas is definitely the most capable right now.”

According to a Petrobras spokesperson, in addition to the 146 boat project, Petrobras' logistics unit Transpetro also aims to purchase 49 ships to modernize its fleet. He added that the first phase of the bidding process has already been completed and 23 tankers are in the pipeline, being manufactured mostly by Atlantico Sul Shipyards in the northeastern state of Pernambuco. Transpetro is now launching a second bidding process to construct an additional 26 tankers.

A secondary bidding process by the shipyard itself is underway to acquire the steel. Usiminas officials declined to disclose details about its participation in the auctions.

Esmark announces USD 15.8 million losses in the Q1 of 2008

Esmark Incorporated reported its financial results for the first quarter ended March 31st 2008, which consist of the results of both Esmark Steel Service Group Inc and the results of Wheeling Pittsburgh Corporation as a result of the merger on November 27th 2007. Comparative 2007 results referenced in this release include only Esmark Steel Service Group Inc.

Esmark said that consolidated EBITDA for the first quarter of 2008 was USD 11.4 million as compared to USD 3.5 million for the first quarter of 2007. For the first quarter of 2008, the Company reported a net loss of USD 15.8 million as compared to a net loss of USD 0.2 million for first quarter of 2007. Its net sales for the first quarter of 2008 totaled USD 600.1 million on shipments of 789,164 tonnes. The average selling price in the first quarter of 2008 was USD 760 per tonne.

Cost of sales for the first quarter of 2008 amounted to USD 553.4 million. The average cost per ton sold in the first quarter of 2008 was USD 701. Comparisons to prior quarter results are not meaningful due to the acquisition of Wheeling Pittsburgh.

Mr James P Bouchard chairman & CEO of Esmark said that "As projected in our earnings call comments on April 30, I am pleased to report positive EBITDA for the first quarter, our first full quarter as a merged entity, evidencing the progress made by our management team and our entire workforce. As expected, both ESSG and Wheeling-Pittsburgh contributed positively to this result. Finally, we take great satisfaction from the denial by the West Virginia Supreme Court of Massey's appeal of the July 2007 Brooke County Circuit Court verdict, validating the position which Wheeling Pittsburgh has taken from the outset."

Japanese flat rolled steel exports totals 17,926 tonnes in April

According to the related statistics, Japan’s flat rolled steel exports totaled 17,926 tonnes in April 2008 and the export price was USD 884 per tonne on average. Japan exports of flat rolled steel to different countries in April were:

Japanese flat rolled exports were 88,997 tonnes in the January to April 2008 and the average price was USD 884 per tonne.

(Sourced fro YIEH.com)

US weekly crude steel production decrease by 0.7%YoY

American Iron & Steel Industries reported that in the week ending June 7th 2008, US’s raw steel production was 2.134 million net tons while the capability utilization rate was 89.4%. Production was 2.119 million net tons in the week ending June 7th 2007, while the capability utilization then was 88.4%. The current week production represents 0.7% decrease from the same period in 2007.

Production for the week ending June 7th 2008 is up 0.9% from the previous week ending May 31st 2008 when production was 2.114 million net tons and the rate of capability utilization was 88.6 percent.

Adjusted YTD production through June 7th 2008 was 48.124 million net tons at a capability utilization rate of 88.8%. That is a 2.9% increase from the 46.760 million net tons during the same period last year, when the capability utilization rate was 85.7%

District wise production for the week ending May 31st 2008
1. Northeast Coast: 182
2. Pittsburgh/Youngstown: 213
3. Lake Erie: 86
4. Detroit: 105
5. Indiana/Chicago: 518
6. Midwest: 262
7. Southern: 671
8. Western: 96
(In thousands of net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months

Timminco to shut down magnesium billet plant

It is reported that Timminco Ltd is closing an Ontario magnesium billet operation citing rising raw materials costs. It indicates plans to source its billets from outside suppliers.

Timminco in a statement said that primary magnesium is increasingly difficult to source for producers of cast and extruded products. The slow shutdown of North American capacity and the reliance on Chinese and Russian suppliers has forced buyers to overcome rising global demand, tariffs and transportation costs for the light metal.

The Haley plant produces extrusion grade magnesium billets that are supplied to a Timminco plant in Aurora. It also produces magnesium granules and turnings and those products now will be produced at a Timminco plant at Nuevo Laredo in Mexico.

Timminco estimates that it will save CAD 5 million annually with the closing of the Haley plant. The initial charges are estimated at CAD 15 million to CAD 17 million.

Mr John Fenger president (Light Metals) of Timminco said that “Our magnesium business has significant long term potential, but current economic conditions require that we further reduce our operating costs significantly. The closure, although difficult, provides us with a path to profitability and potential divestiture or other strategic alternative for the rest of our magnesium business.”

(Sourced from Foundrymag.com)

Malaysia to scrap import permits for construction equipments

Bloomberg reported that Malaysia's government will scrap import permits for some construction equipment as it seeks to spur an economy set to slow for the first time in three years.

Mr Muhyiddin Yassin international trade and industry minister in a speech in Kuala Lumpur said that “Import licenses will be removed from January 2009 for six types of goods including levelers, road rollers and track-laying bulldozers.”

He added that the government will also review some protective policies in the country's manufacturing and services industries.

Malaysia, easing rules on the construction industry, this month scrapped price controls on cement and in May lifted restrictions on steel products. The central bank in March said that Malaysia's economy may expand 5% to 6% in 2008 after growing 6.3% in 2007.

Japanese steel maker increases scrap purchase prices

JMB reported that electric furnace steel makers increased the ferrous scrap purchase price by around JPY 1,000 per tonne in the week under tight supply.

The price level is JPY 65,500 to JPY 66,500 per tonne for H2 grade and some makers pay as high as JPY 67,500. it said that the price is likely to keep firm with strong demand at home and abroad.

Genesis wins steel frames order from Rockpoint Homes

Thomson Financial reported that Genesis Worldwide Inc structural products unit KML Engineered Homes Ltd has won an order to supply light steel framing for Canada based Rockpoint Homes' 42,200 square feet commercial plaza Cranberry Mews in Ontario.
Genesis said that the plaza will consist of four independent one-storey buildings constructed using Genesis' light gauge steel trusses and panels. It added that the site work has started and it expects the project to be completed by the end of September.

Financial terms of the order were not disclosed.

ArcelorMittal Vanderbijlpark goes with Broner for 2nd stage PPC

Broner Metals Solutions, the world’s leading provider of supply chain planning, scheduling and manufacturing execution systems, specifically for the metals industry announced that it has been awarded a further participation in the Global Scheduling Project by ArcelorMittal Vanderbijlpark Works in South Africa.

Broner Metals said that the Phase 2 of the project has started after the implementation and launch of the Phase 1, which spanned steel making facilities, slab casters, hot strip and plate mill and included four Broner modules: Caster Scheduler, Hot Mill Scheduler, Online Slab Allocator and Melt Shop Control Centre.

The new Phase covers planning and finishing facilities and comprises the following Broner applications
1. Production Planner performs fixed capacity, end-to-end material flow planning for all stages, from steel-making to packing
2. Material Planner is responsible for automatic allocation and re-allocation of physical inventory to sales orders, to replace currently manual process
3. Plate Combination is responsible for automatic allocation and reallocation of physical inventory to plate sales orders
4. Production Scheduler is an automated scheduling tool that uses physical and virtual coils to improve visibility of impact of a schedule on downstream equipment.

Mr Graham Hocknell project manager for phase 1 and 2 at ArcelorMittal South Africa Vanderbijlpark said that “We were pleased with the results delivered by Broner in the first phase and are now implementing Phase 2 together.”

American demand for flat rolled showing signs of weakness

As raw material costs are hike up and with strong demand, American flat rolled price has kept rising since the beginning of this year.

Mills have raised prices for July, but not as high as expected. Some market players are expecting prices will be stable and that there will be a correction in next few months, when a peak will have been reached.

America Middle West HR coil spot price is at USD 1,168 to USD 1,240 per tonne and CR price at USD 1,279 to USD 1,350 per tonne.

(Sourced from YIEH.com)

Outotec awards 22 employees for technological innovations

Outotec announced that it granted 22 employees a Technology Award at the Outotec Technology Seminar on June 10th 2008 at Helsinki in Finland in conjunction with the Millennium Technology Week. The awards totaled approximately EUR 100,000. Outotec's Technology Award is aimed at encouraging the employees to make new technological inventions and innovations.

A. Senior Awards granted
Senior Awards for numerous significant contributions to Outotec over a long career were granted to:
1. Mr Christian von Alfthan
2. Dr Ali Naghi Beyzavi
3. Mr Väinö Kylä Heikkilä
4. Dr. Antti Roine

B. Junior Awards granted
Junior Awards for demonstrating exceptional innovativeness and commitment to Outotec as a junior employee were granted to:
1. Mr David Cachero Ventosa
2. Mr Tuukka Kotiranta
3. Mr Antti Rinne
4. Mr Rami Saario
5. Dr. Jari Tiihonen

Mr Tapani Järvinen CEO of Outotec said that "Outotec is a corporate partner of the Millennium Technology Prize. Sustainable technology is at the heart of everything we do. Our business is to develop new technologies, which benefit our customers, while taking into account economical, social and environmental issues. To encourage this, we do everything possible to support innovation, by rewarding people for ideas and investing in research.”

PT Krakatau to modernize HSM

Siemens Metals Technologies has received an order from PT Krakatau Steel of Indonesia, to equip parts of the hot strip mill in Cilegon with new electrical and automation equipment. The conversion work will be carried out in 2010 during a scheduled shutdown of the plant.

The hot strip mill, which started operating in 1983 and, since then, has been continually expanded, is the heart of the flat steel production facility. With this latest modernization project, PTKS wants to bring the plant up to the latest standards both mechanically and in respect of the automation system to be used. By initiating this modernization measure, PTKS wants to enhance product quality, extend the range of products and increase the plant's availability.

Siemens will supply and install the basic and process automation for the reversing roughing stand, the six stand finishing mill and the cooling section of the hot strip mill. The automation equipment to be used is part of the “Siroll HM” solution developed specifically for hot rolling mills. Simatic TDC and the WinCC visualization system will be used as the basis of the system for basic automation. Fujitsu-Siemens computers will be provided for process automation. Online process models generate the pre settings for the roughing mill, the finishing mill and the cooling section and also supply the parameters for the control and adjustment algorithms during ongoing production. The new automation system will mean that the plant will be able to precisely roll and cool modern high strength steel grades.

In addition, Siemens is supplying model predicative controllers for the finishing mill and the cooling section. With the help of these controllers, the newly installed interstand cooling as well as the new laminar cooling section can be optimally utilized. This will enable rolling in the ferritic range as well.

In addition, the equipment will be fitted with a microstructure monitor, which calculates properties of materials such as the yield point and tensile strength online. Time-consuming tests of materials in the laboratory will therefore be rendered superfluous.

The project will be carried out in a consortium with SMS Demag AG. Siemens Metals Technologies is responsible for project management and engineering of the systems and components. Installation and commissioning will be carried out in conjunction with PT Siemens Indonesia.

Japanese H beam exports in April 2008

Japanese H beam exports totaled 30,469 tonnes in April 2008 and the export price was USD 824 per tonne.

The export totaled 191,825 tonnes from January to April 2008 with USD 768 per tonne on average.

South Korea imported 21,891 tonne for Japan’s H beam with USD 844 per tonne and the import hit 102,133 tonne from January to April. It added that shipment to China was 92 tonne while the figure was 3,979 tonne to Taiwan.

(Sourced from YIEH.com)

Dragon Steel pledges carbon reduction for its expansion project

CENS reported that the environmental assessment meeting of the Environmental Protection Administration approved the expansion project of China Steel Corp’s subsidiary Dragon Steel with a condition to cut CO2 emission by 15% or pay for carbon credit. The requirement is based on the draft Law for Greenhouse Gas Reduction and may be applicable to all of the island’s major heavy industry projects still waiting for environment assessment approval.

Under the condition, Dragon Steel will have cut its CO2 emission by 15%, from the projected emission of 10 million tonnes annually, after the enactment of the law or pay for carbon credit, estimated at TWD 1.5 billion annually, based on TWD 1,000 per tonne.

Mr Stephen Shu hung Shen EPA minister remarked that the case will set a precedent for all investment projects needing environment assessment approval, with the steel industry and power plants being on the priority list for the required reduction of greenhouse gas emission.

Mr Ou Chao lung chairman of Dragon Steel pledged to comply with the requirement, despite the reservation of some environmental assessment committee members about the propriety of the requirement, which is based on a law yet to be enacted.

The project is the second phase of the expansion project of Dragon Steel, which calls for the buildup of two blast furnaces, each with 2.5 million tonnes of annual capacity, in addition of hot rolled steel production lines, at total cost of some TWD 200 billion. Groundbreaking for the first blast furnace has taken place and is scheduled for completion by 2009, while the second blast furnace will be completed by 2011.

Acindar wraps up USD 230 million investment plan - El Cronista

El Cronista newspaper reported that Argentine long steelmaker Acindar has wrapped up a USD 230 million investment plan it began in 2005 which boosted the company's production capacity 25%.

The paper quoted Mr Carlos Vaccaro external affairs director Acindar as saying that "It will help us increase sales abroad where our product goes for 30% to 50% more than on the domestic market.”

Talks on price for Sidor continuing

Bloomberg reported that Mr Hugo Chavez president of Venezuelan is still talking with Ternium SA representatives to reach a price on the steel factory Siderurgica del Orinoco.

Mr Chavez said that did not mention any monetary amount or date for the agreement to be reached.

Mr Chavez signed a decree nationalizing the company April 30th 2008.

Esmark to recommend suitor by Friday - Chairman

According to Mr Jim Bouchard chairman & CEO of Esmark, Esmark Inc's board is considering the takeover offer from Russian metals company OAO Severstal and will decide whether to accept it by June 13th 2008.

Mr Bouchard said the company's board, which had agreed in April to the terms of an Essar takeover, would examine the Severstal bid and report back on or before June 13th 2008."

Esmark which owns steelmaker Wheeling Pittsburgh is an acquisition target of India's Essar Steel Holdings and of Severstal. Both companies have offered USD 17 per share for Esmark.

Severstal's bid, worth about USD 1.24 billion is backed by the United Steelworkers union, which had threatened to block the offer from Essar.

Franklin Mutual Advisers, which owns about 60% of Esmark's shares in a regulatory filling, said that it tendered all its shares into the Severstal offer because the United Steelworkers is opposed to the Essar bid.

But last Friday, Essar said that it was considering raising its bid after Esmark's largest shareholder backed the Severstal offer.

Saudi to curb steel exports due to surge in demand

The Kingdom's newspapers reported that Saudi Arabia has decided to curb steel exports to its Gulf neighbours and other countries after a surge in demand created shortages and gave rise to market manipulations.

Saudi newspapers said the decision to curb steel exports enforced was prompted by what they called an upsurge in local demand for the metal and growth in black market activities which have sharply boosted prices.

Mr Saleh Khalil supplies director at the Saudi Ministry of Trade and Industry said "We have introduced new regulations to curb steel exports to neighboring countries and other areas and we have actually started enforcing these regulations, which stipulate that exporters must obtain an export certificate from the Ministry before exporting products."

He said that "These curbs are within measures implemented by Saudi Arabia to ensure sufficient supplies of building materials for the local market, which is recording a sharp increase in demand. This has led to a steep jump in prices."

The move came less than a week after the world's dominant oil exporter decided to tighten its grip on cement exports following growing complaints by contractors that traders are stacking supplies for exports and more profits. Last week, Saudi Arabia began enforcing a decision to curb cement exports to the UAE and other Gulf countries following reports that many construction projects have been suspended because of shortages in building materials.

Qatar may subsidize steel and cement for construction

Gulf Times cited Mr Sheikh Hamad bin Jassim bin Jabor Al Thani Prime Minister and Foreign Minister of Qatar as saying that Qatar will soon impose a three year freeze on prices of main construction materials, including steel and cement to help contain rising inflation.

While speaking at the annual meeting with Qatari businessmen, he said that "Contractors can now work without having any fears about any price rise in construction materials, namely steel, cement, sand and gabbro stones. Any future price rise of such materials in the global market will be borne by the state during the three year freeze."

Rebar prices in UAE up by 15% to 25%

Arab News reported that despite the decree issued by Sheikh Mohammed ibn Rashid Al-Maktoum vice president & prime minister of the UAE and ruler of Dubai exempting cement and reinforced steel from custom duties until further notice, the price of structural steel has recently risen by between 15% and 25%.

According to various real estate reports, the hike in the price of reinforced steel is not limited to Dubai or the UAE. It is rather a trend that can be seen throughout the GCC countries and which is driven by the real estate boom and the recycling of surplus petrodollars, much of which is taking place in the real estate sector, the safest and fastest growing investment channel in the regional markets.

Mr Fakhruddin from Fakhruddin Properties said of the situation that “The GCC countries have started addressing this issue, with more than USD 18 billion being invested in 46 steel manufacturing plants throughout the Gulf in an attempt to close the widening gap between supply and demand for steel. These projects indicate aggressive growth in the industrial sector in line with the five year real estate boom.”

He added that “The current flow of real estate projects, coupled with the expectations that this trend will continue in the region over the coming two decades, led us to seriously consider possible investment in steel projects, bearing in mind that we would need to bridge the current gap between supply and demand, while avoiding a situation of oversupply of these materials in the future once a balance has been established in the real estate market.”

According to recent industry research, in the face of rapid growth in domestic demand, the UAE and other Gulf countries are planning to develop 46 steel manufacturing plants throughout the GCC countries in order to expand output. Leading the way in these steel plant projects are Saudi Arabia, with 17 plants and the UAE with 16. Six of the remaining 13 plants are to be located in Oman, four in Bahrain and three in Qatar. The estimated cost required to establish a steel factory with full production capacity varies between USD 15 million and USD 2 billion, while the estimated cost to establish ten manufacturing plants, studies for one of which are currently underway is USD 10 billion.

Plans for integrated steel mill at Kalabagh in Pakistan

The News International, one of the leading English newspaper from Pakistan, reported that a consortium of four steel mills will establish an integrated steel mill at Kalabagh. The planned steel mill would have annual capacity of producing 1 million tonnes of steel using indigenous iron ore excavated from Kalabagh and Chiniot.

Sources in the ministry of Industry & Production said the consortium is comprised of four companies which include Mughal Steel, Star Cotton Corporation, Pak Steel and Ittehad Steel Mills.

As per report, they have already incorporated a company under the name of ‘Indus Consortium Mining & Steel Industry Ltd’ with Securities and Exchange Commission of Pakistan. The companies have also submitted an application to the DG, Punjab for the grant of lease for 2000 acres at Kalabagh and 1000 acres at Chinot.

Pakistan Steel Mills is the only integrated mill in the county with a capacity of 1.1 million tonnes per annum. It was making steel products from 100% imported ore and coke India, Iran and Australia. However, in last few years it has started using ore from Chaghi and imports ore only to meet the shortfall in local supply.

Probe points to deficiencies in MV Rezzak

PTI reported that there were several deficiencies relating to seafaring safety on M V Rezzak, the cargo ship that disappeared off the Turkish coast in the Black Sea with 25 Indian sailors on board four months ago while carrying steel billets from Russia to Turkey.

The probe report of global shipping registry Panama Maritime Authority said the ship's GM was very high and does not rule out rolling and pitching of the vessel due to wind direction.

The report sent to the Indian government said "The master of Rezzak decided to change her route to Bartin, which is a route opposite the anchoring area. This means that heavy rolling and pitching is very possible on the route.”

It said that “Local authorities at Novorossiysk port in Russia inspected the ship and reported a number of deficiencies regarding seafaring safety including it hull and maintenance. Some deficiencies found on board were rectified and the existing Emergency Position Indicating Radio Beacon was replaced due to damage to the outer shell. The ship's tonnage was below the maximum level with the harbour master reporting no overload condition deficiency, but the steel billets loaded on the vessel were of different sizes and their position is very important.”

It added that various records of the ship were examined but the most recent records, which must be filled out on board were not available.

Oil may hit USD 150 this summer - Goldman Sachs

Gulf News cited Mr Jeffrey global head of commodities research at Goldman Sachs while speaking at an oil and gas conference in Malaysia as saying that oil prices are likely to hit USD 150 a barrel this summer.

Mr Jeffrey Currie said "I would suggest that the likelihood of that happening sooner has increased tremendously sometime in summer. He said that demand for oil is weak but supplies are even weaker."

Rotem wins USD 230 million order from Oman

Yonhap reported that Rotem Co, an affiliate of South Korea's leading automaker Hyundai Motor Co, has won a USD 230 million contract to build a wastewater disposal plant in Oman.

The report added that the deal with Oman Wastewater Service Co calls on Rotem to complete the plant by June 2011.

Global economic slowdown may halve oil price in 2009

Zawya reported that a sharp global economic slowdown could depress oil prices by more than half their present level in 2009 and this could prompt OPEC to trim output to prop up prices.

Mr Leo Drollas Deputy Director of the London based Centre for Global Energy Studies said several factors had led to the recent sharp rise in crude prices including strong demand, speculation, Opec's low spare capacity, the weak US dollar and the Cartel's drive for higher prices.

In a study presented to an oil conference in Tokyo this week, Mr Drollas said strong demand had sharply pushed up the call on Opec crude but he warned that slowing global economy next year would push down the demand. In 2008 the call on OPEC remains well above its expected output until the third quarter of 2008.

The study said "In 2009 the picture is quite different, the weak global economy causing oil demand growth to slacken considerably and the call on OPEC to drop well below recent levels. Two scenarios bracket our reference case. On the upside we have the IEA's more buoyant view of oil demand growth for this year and next year. On the downside, a small amount of additional non-Opec supplies in 2008 are enough to bring the oil price down to USD 65 per barrel by the end of 2009."

Mr Drollas said referring to forecasts by CGES about an impending sharp economic slowdown in 2009. H e said the need for OPEC oil will be down by almost 1 million barrels per day requiring production cuts from the organization to keep up the price of oil. Mr Drollas whose centre is owned by Mr Sheikh Ahmed Zaki Al Yamani former Saudi Oil Minister cited arguments by the 13 nation OPEC that the oil market is well supplied and high prices are a result of growing speculation. Another argument is that oil producers need high oil prices because of cost escalation, dollar depreciation and their financial needs. In contrast, the CGES believes supplies have been tight, causing a decline in the stocks of the Organization of Economic Cooperation and Development. Led by Saudi Arabia, OPEC squeezed the oil market in 2006 to 2007, leaving stock cover at low levels and spare output capacities bellow 5% of world oil consumption."

He said that "The Kingdom tightened the market in the last quarter of 2006 because it feared the price repercussions of the large OECD company oil inventory build in that quarter low spare capacity is generally associated with high prices and vice versa. However, the relationship is distorted by OPEC’s occasional drives to push up oil prices by constraining production and thus raising spare capacity. Between the second quarter of 2003 and the first quarter of 2006 spare capacity became much tighter. Spare capacity has been falling since the first quarter of 2007."

Qatar firm interested in setting up power plant in South Africa

Engineering News reported that South Africa's Department of Minerals and Energy has received interest from its counterpart in Qatar, regarding a possible power project that a company from that country might build.

Ms Buyelwa Sonjica Minister of Minerals and Energy Republic of South Africa said "I am already getting indications from Qatar that a company could invest in a local power project. She said that she was heartened to have Suez's investment commitment and that if its projects were successful, it would give other companies the confidence to undertake similar projects.”

Ms Sonjica while speaking in an interview did not name the Qatari firm that is interested in becoming an independent power producer in South Africa.

She said that Eskom's impending power tariff increase, due to be announced on June 18, would entice potential investors, as companies had previously complained that projects would not be profitable at the lower rates they would receive. She added that that government wanted to take a 30% equity stake in IPP projects, but would increase this if it could.

South Africa is trying to attract electricity companies to build power stations in the country, to then sell their power to State owned Eskom, as part of its strategy to boost the country's inadequate power supplies.

Iran to export 56 wagons to Cuba

Tehran Times Economic Desk cited Mr Gholamreza Razzazi managing director of the Pars Wagon Company as saying that the company has prepared 56 cargo wagons to be dispatched to Cuba. He said that 28 of the wagons are cement carriers and the remaining half of the wagons are for carrying fuel.

Mr Gholamreza said “The wagons will be sent to Bandar Abbas through railway and will be dispatched to Cuba from there by ship, adding that the company has heretofore sent one hundred and fifty 14 meter and 19 meter container wagons, 72 cement carrier wagons and 15 fuel wagons to Cuba.”

He said that consignment of the wagons is worth EUR 5 million and 85% of their parts are domestic.

Mr Razzazi added that the Pars Wagon Company and Cuba’s railroad company had inked a EUR 170 million deal due to which the Iranian side vowed to provide the Cuban railway with 550 cargo and 200 passenger wagons.

Ms Nasrin Haq appointed as chairperson of KPT

The News International reported that Ms Nasrin Haq took charge of the Karachi Port Trust as its chairperson becoming the first female head of the port authority.

Ms Haq took official charge from the DG Ports and Shipping after Mr Ahmed Hayat former chairman Vice Admiral who held the portfolio for eight years retired on May 31st 2008.

Prior to her appointment as KPT chairperson, Ms Haq had held some important positions like Managing Director Mass Transit, Director Export Promotion Bureau and Secretary Port Qasim.

Dubai Cables inaugurates its first copper rod plant

Khaleej Times reported that Dubai Cables Co ltd has inaugurated its first copper rod plant and the new cable factory at the Mussafah Industrial Area. The USD 45 million copper rod plant which is the first copper rod factory in the UAE, has a capacity of 110, 000 tonne per annum.

The reported that the two facilities were unveiled by Mr Shaikh Hamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court and Chairman of the Higher Corporation for Specialized Economic Zones. A large number of dignitaries, including ministers and senior officials.

Mr Ahmad bin Hassan Al shaikh chairman of Ducab said Ducab customers and suppliers attended the inauguration ceremony of the state of the art factories. He said that "We meet here to inaugurate our company's two new plants, the copper rod, which is the first of its kind in the UAE and the new cable factory which increases our capacity by 40 per cent. The USD 45 million copper rod plants which occupy an area of about 3000 square meters have a production capacity of 110,000 tonnes of high quality copper rod per year, which can be increased to 160,000 tonnes in the future."

He added that "The state of art copper rod factory will apply the highest international quality standards and will provide all of the Ducab's rod requirements. In addition, there will be product available to serve the regional market."

Mr Andrew Shaw MD of Ducab said the new copper rod plant will take the raw copper cathode and convert it to high quality 8mm diameter copper rod the key raw material for cable manufacture. He said that "With the new factory having been officially inaugurated, we will be able to replace imported copper rod with material manufactured in the UAE it s a further strengthening of the UAE industrial base."

He also said that Ducab bought the Abu Dhabi facility to ensure the company has enough capacity to satisfy demand. He added that the acquisition has increased the company's production capacity by about 40 per cent allowing it to grow its regional market share.

Mr Andrew Shaw said "The new factory in Abu Dhabi is a welcome addition to Ducab's capacity in the UAE. As a market leader we are committed to continual improvement in all aspects of our business and with this new facility we will be able to further improve product offer, service and delivery to our customers."

By launching the two new plants, Ducab which is jointly owned by the Dubai and Abu Dhabi governments is on course to achieving its strategic plan of meeting the growing demand of the local and regional markets for copper rod and power cables of various voltages.

TKC Steel subsidiary to export billets to Saudi Arabia

Manila Bulletin reported that TKC Steel Corporation’s subsidiary Treasure Steelworks Corporation has recently concluded its first ever contract for export of 10,000 tonnes of 5SP/PS grade steel billets to Saudi Arabia. the Middle East.

The steel billets would be manufactured at the plant site of Treasure Steelworks in Iligan City and the company expects to ship them by the end of June 2008

Mr Anthony Dizon president of TKC said this initial shipment will be followed by a monthly shipment of about 10,000 tonnes to 20,000 tonnes to other prospective foreign buyers whose contracts are now in the final stages of negotiation.

Burj Dubai to get completed in August September 2009

Arabianbusiness.com reported that the Burj Dubai is facing up to a nine month delay and is unlikely to be finished until August or September next year. The mega-project was originally scheduled to be completed by the end of this year.

Mr Mohammed Alabbar chairman of Emmar told reporters in Dubai that “The world's tallest building may not be completed until August or September 2009. With a project like this you have to get it absolutely right.”

The Burj Dubai currently stands at over 630 meters and its final height is rumored to be between 700 and 1,000 meters. In April the tower, already the world’s tallest building and tallest free standing structure, became the world’s tallest manmade structure, surpassed the 628.8-metre high KVLY-TV mast in North Dakota in US.

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.

Chinese steel exports rebound in May

Chinese industry website Umetal said that Chinese export of steel in May 2008 amounted to 5.56 million tonnes up by 16% MoM from 4.78 million tonnes in April.

The May exports were the largest since July 2007.

Umetal said that steel product exports in the first five months of the 2008 are 14.72 million tonnes,

WISCO orders equipments for new CR complex No 3

It is reported that Wuhan Iron & Steel Company has placed an order for supply of Continuous Annealing Line and other Special Equipment for Cold Rolling Complex No 3 to Siemens Metals Technologies. The continuous annealing line is scheduled to start operating at the end of 2009 while the special equipment for the tandem pickling line is to be delivered by the middle of 2009.

For the continuous annealing line, which has an annual capacity of 800.000 metric tons, Siemens is supplying all the mechanical equipment, the electrical equipment and the automation system. The furnace will be provided by another supplier.

For the new hot galvanizing line which is to be built for cold rolling mill No 3, Siemens is supplying the flash butt welding machine, the in line skin pass stand and the tension leveler. Both lines will be equipped with electrical and automation systems based on the Siroll PL concept.

Wisco's PLTCM no.3 will receive additional special equipment from Siemens, including a carrousel reel, a tension leveler at the entry to the pickling section, as well as trimming shears and scrap shears.
Siemens is also responsible for engineering, supervision of the installation work, commissioning and customer training. A large part of the engineering, installation and commissioning work is being done by Siemens China.

CISA host 5th China International Steel Congress

It is reported that during the 5th China International Steel Congress, hosted by CISA and organized by Metallurgical Council of CCPIT recently Mr Xu Lejiang board chairman of Baosteel made a theme speech at the Congress, titled Advancing Merging & Recombination to Achieve Green Development of China Steel Industry.

At the conference Mr Pu Haiqing member of National Congress Standing Committee, Deputy Director of Environment & Resources Council and Advisor of CISA; Mr Zhang Xiaogang chairman of CISA, Advisor Mr Wu Xichun, Mr Weng Yuqing Director general of the Chinese Society for Metals, Mr Luo Bingsheng managing Deputy Chairman of CISA, Madame Xie Qihua former Chairwoman of Baosteel and Chairwoman of Metallurgical Council of CCPIT, and Mr Ian Christmas, Secretary General of IISI etc were present.

Mr Xu Lejiang elaborated the green development of steel industry in an all round manner in his theme speech. He pointed out that the conversion of the functions and developing scales of steel enterprises must be achieved to fulfill the green development of steel industry. Merging and recombination is an important way to green development strategy of China steel industry.

Mr Xu made a brief introduction to Baosteel experiences in practicing green development through merging and recombination, Baosteel achieved the synchronization between replacement of the lagged behind and green development, scale expansion and green development and optimization of the overall arrangement and regional economic development. The report was highly appraised by the experts at the Congress.

China International Steel Congress is a high level international conference mainly for study and exchange of the deep level, overall and strategic issues in the development of steel industry. It is an important platform for CISA to promote foreign exchange & cooperation and healthy development of the industry, which enjoys good reputation and wide influence at home and abroad. The Congress is a biennial event. The theme of this session is "Green Steel" with 4 topics namely, structure regulation, policy & macro economic environment, technical innovation and green application.

Tianjin Tiantie CR project to start construction in October

It is reported that Tianjin Iron and Steel Group plan to start construction on its CR project on October 28th 2008.

The investment of the first phase of the project is CNY 3.5 billion to build a pickling line, CR mill with a continuous hot dip galvanizing unit. The project would have an annual output of 1.5 million tonnes of cold rolled and 600,000 tonnes of galvanized.

Baosteel creates record in environmental parameters

According to the latest statistics, since this year, the key indexes for environmental protection of Baosteel's main business of steel, which are the emission of fume and dust, wastewater and COD down by 9.2% YoY, 22.3% YoY and 38% YoY respectively creating the best records in 10 years.

In recent years, with a view to reduce the emission of pollutant, Baosteel actively promotes the application of modernized management and technologies, strengthens the operation of environmental management system, gradually establishes and improves the environmental performance evaluation system and incentive method, and the emission of key wastes such as sulfur dioxide, fume and dust, wastewater and COD shows a trend of declining year by year.

Sinosteel to support Midwest and Murchison Merger -WSJ

The Wall Street Journal citing a person without identifying reported that that China's second biggest iron ore trader Sinosteel Corp may support a proposed merger between Midwest Corp and Murchison Metals Ltd.

The Journal said that some concerns surrounding Murchison are weighing on Sinosteel's decision. Sinosteel, battling Murchison for control of Midwest raised its stake in the iron ore producer to 40.1%.

The Journal added that the merger requires 50.1% approval from Midwest shareholders.

Murchison said its deal valued Midwest shares at AUD 7.17 apiece.

Maanshan to install Meros sinter off gas cleaning plants

Siemens Metals Technologies announced that it has received a contract from the Chinese steel producer Maanshan Iron & Steel Company Ltd to install the first Meros plant outside Europe. The completion of this project is expected by mid 2009.

The released added that the new facility will be built at the No 1 Sinter Plant of the company's integrated iron and steel works located at Maanshan in Anhui Province and will be capable of treating approximately 1,000,000 square meters of sinter offgas per hour.

The Meros dry cleaning process reduces emissions of dust, heavy metals, sulfur dioxide and organic compounds to levels previously unattained applying conventional technologies.

For the Maanshan project Siemens will supply basic data, basic engineering and key process equipment. This includes the additive injection system, the water injection system for the conditioning reactor, filter bags, special components of the ID fan as well as electrics and automation for the entire Meros installation. Training and also advisory services for erection start up and plant commissioning round off the Siemens scope of supply. The entire project will carried out with no interference to ongoing sintering operations.

In the Meros process, adsorbents and desulphurization agents are injected into the sinter offgas stream to bind heavy metals, organic compounds, sulfur dioxide and other acidic gases. The gas stream passes to a conditioning reactor where the gas is moisturized and cooled, accelerating chemical reactions. Dust particles are trapped in a bag filter. In order to enhance the gas-cleaning efficiency and reduce costs, a portion of this dust is recycled to the offgas stream, allowing unreacted additives to once again come into contact with the offgas.

Masteel dismantle five 300 cubic meter blast furnace

It is reported that in 2007, Masteel dismantled five 300 cubic meter blast furnaces and one 90 square meter sintering machine

Masteel also achieved following milestones in 2007
1. Started operating No1-4 coke dry quenching projects
2. Introduced CDQ process in all six coke ovens at old area
3. Carried out bag dust-removal update on two boilers at energy plant 4. Dust-removal update on No 1 LF furnace at No 1 rolling plant
5. Update on three water recycling systems at wheel company.

As per report Masteel’s thermal power plant and No 2 Machinery Manufacturing plant were among the four Greenfield enterprises identified at an environmental appraisal meeting in Maanshan city and 16 units were awarded as blue enterprises.

Baosteel and Gezhouba ink pact for supply of B610CF plates

It is reported that Baosteel and Gezhouba Group recently inked the agreement for the supply of B610CF high strength heavy plate used in the spiral case of the last two water turbine generator sets in Three Gorges Right Bank Underground Power Station.

So far, the heavy plate totaling 8700 tonnes used in the key components of all the generator sets in Three Gorges Right Bank Underground Power Station penstock and spiral case will all be supplied by Baosteel which contributes to the localized production of the steel for China's Three Gorges Hydro Project.

As per report in the previous constructions of Three Gorges project, most of this kind of plate used to depend on import. Paying close attention to national key water conservancy projects, Baosteel actively develops high strength heavy plate.

The successful application of Baosteel's high strength heavy plate for hydropower projects in Three Gorges Right Bank Underground Power Station will not only expand the market share of this product, but also greatly accelerates the process of localized production of the steel for China's Three Gorges Hydro Project.

Anshan to supply plates for bridge in Norway

It is reported that Anshan Iron and Steel’s high quality bridge steel plates are ready to be exported to Europe and will be used on the Glomma which is located in Norway. It is the first time for Angang steel plate export to Europe for this application.

As per reports, Anshan Iron and Steel has successfully bid for two plate supply contracts from Norway and Germany.

Bridge steel plate is one of the Anshan Steel’s leading products, has a long history has been used in three projects which were about the development of China’s railway bridge landmark projects, Wuhan Yangtze River Bridge, Nanjing Yangtze River Bridge and the Jiujiang Yangtze River Bridge.

Tianjin Longgang to launch new wire rod mill in June 2008

It is reported that recently, Tianjin Longgang high speed wire rod project has been nearly completed and it will be put into production by the end of June 2008.

The designed rolling speed of the wire rod mill is 120 meter per second for producing wire rods in diameter range of 5.5mm to 25mm in various grades. The mill would have and annual output of 1 million tonnes and the total investment is about CNY 600 million.

Laigang rebars achieve CARES certification

It is reported that recently, Laigang’s rebars as per BS have successfully passed the British CARES product certification and the logo recognition.

CARES experts tested the examination earnestly and all the results of the products meet the requirements.

The release said that “Now, Laigang rebars have got the green card to enter into European market, further enhancing the brand.”

Chalco eying 2nd spot as global copper enterprise

It is reported that Chalco is facing with a notable strategic transition. According to the expansion plan, the company will become a leader in domestic copper industry as well as the world’s second largest copper enterprise in the next two of three years.

Mr Xiao Yaqingm the board chairman and CEO of Chalco said that the group will spend CNY 20 to CNY 30 billion in oversea purchase in the future.

On May 28th 2008, CNY 10 billion medium term note issuance of Chalco was approved. Funds will be used mainly for the purchasing of relative assets of its parent company, Chalco.

Chinese trade volume in 2007 up by 31%YoY

According to the Ministry of Commerce China saw its export and import volume in service trade stood at USD 250.91 billion up by 30.9%YoY in 2007.

The Ministry of Commerce China said export volume of service trade in 2007 hit USD 121.65 billion up by 33.1% YoY over the previous year, while the import volume of service trade was USD 129.26 billion up by 28.8%.

According to the Ministry of Commerce China China's Hong Kong, the United States, Japan and the Republic of Korea are the four biggest service trade partners of China's mainland.

Mr Yi Xiaozhun vice minister of Ministry of Commerce China said China was making efforts to beef up service trade in some pillar industries, and to expand cultural-related service trade in overseas markets. He said that China was also trying to boost its tourism industry, marine transport industry, and promote service trade in traditional Chinese medicine, insurance and finance and technological service.

China accounted for 3.6% of the world's service trade volume in 2006.

Shagang starts construction of two 7.63 meter coke ovens

According to China Metallurgical Group Corp, Jiangsu Province based Shagang has started full scale construction of two 7.63 meter size coking furnaces this month June. The new equipments are expected to generate higher quality coke and less pollution.

It is reported that the First Metallurgical Construction Corporation won the bidding of construction in December 2007 as its largest single project worth CNY 243 million.

In light of green development scheme, Shagang has eliminated coke ovens No 1 and 2 and the building of 7.63 meter coke ovens is included in the company's fourth phase energy saving and emission reduction project.

(Sourced from MySteel.net)

Baosteel to complete second COREX-C3000 in 2010

It is reported that Baoshan Iron & Steel Co recently outlined the schedule of the second step of relocating Luojing project and said that the second COREX-C3000 item will be completed by 2010.

As per report, detailed timetable is chalked out for negotiation, contract signing, preliminary designing and check, equipments ordering and manufacturing etc.

As per plans, 2009 will be the peak year for construction of the COREX iron smelting project.

Handan Steel maintains EXW prices

It is reported that Handan Steel releases its latest EXW price. Prices are maintained firm as that published on May 28th 2008.

Wire Rod, Rebar and Round Bar unchanged.
Q235 6.5mm common carbon wire rod is quoted at CNY 5940 per tonne
Q235 6.5mm high speed wire rod is quoted at CNY 5980 per tonne
HRB335 12mm rebar is quoted at CNY 6080 per tonne
HRB335 14mm rebar is quoted at CNY 6030 per tonne
HRB335 16mm to 25mm rebar is quoted at CNY 5880 per tonne
Q235 16mm to 25 mm round bars is quoted at CNY 5860 per tonne.

Medium Plate unchanged.
Latest EXW price for Q235B 20mm medium plate is offered at CNY 6700 per tonne.

Prices listed above are inclusive of 17% VAT effective as of June 8th 2008.

(Sourced from MySteel.net)

Update on HDG and PPGI domestic prices in China

Boxing
0.4mm galvanized sheet made by Hengtong is quoted at CNY 7700 per tonne
0.5mm galvanized sheet at CNY 7350 per tonne
1.0mm galvanized sheet is quoted at CNY 7000 per tonne.

Shanghai
1.0mm galvanized sheet made by Anben Group prevails at CNY 7600 per tonne to CNY 7650 per tonne
0.5mm galvanized sheet made by private makers is quoted at CNY 7950 per tonne
0.5mm color coated sheet made by Baosteel is quoted at CNY 9400 per tonne.

Beijing
1.0mm galvanized sheet made by Anben Group is priced at CNY 7500 per tonne to CNY 7550 per tonne up by CNY 50 per tonne
0.5mm galvanized sheet made by private makers is quoted at CNY 7750 per tonne
0.476 color coated sheet made by private makers is quoted at CNY 8300 per tonne.

(Sourced from MySteel.net)

Update on medium plate price

Shanghai
6mm medium plate provided by Yingkou is offered at CNY 6750 per tonne
6mm medium plate that provided by second grade steelmakers at CNY 6280 per tonne to CNY 6300 per tonne
40mm low alloy plate is quoted at CNY 7100 per tonne.

Beijing
16mm to 20mm medium plate is mainly quoted at CNY 6420 per tonne to CNY 6450 per tonne
Low alloy plate is quoted at CNY 6850 per tonne, some at CNY 6800 per tonne.

Tianjin
16mm to 20mm medium plate provided by Tianjin Steel is offered at CNY 6370 per tonne to CNY 6380 per tonne
Low alloy plate is quoted at CNY 6650 per tonne.

Guangzhou
14mm to 28mm plate is posted at CNY 6780 per tonne
30mm heavy plate is quoted at CNY 6880 per tonne
Low alloy plate is quoted at CNY 6970 per tonne.

(Sourced from MySteel.net)

China to launch Hebei Steel as new industry leader

It is reported that Hebei Steel Group will be officially launched to create a new industry leader and would improve the sector's efficiency and productivity.

China Securities Journal reported that Hebei's provincial government has agreed to merge Tangshan Steel Group and Handan Steel Group to create the new Hebei Steel Group which will become China's No 1 steel maker overtaking Shanghai based Baosteel Group.

The newspaper, citing unidentified sources familiar with the situation said that the new Hebei Steel Group will have annual productivity of nearly 32 million tonnes of iron and steel, more than that of Baosteel Group.

The newspaper without giving a timeframe said that "According to the long term strategic plan by the Hebei province government, the new group will have annual productivity of 50 million tonnes of iron and steel, making it a world class iron and steel enterprise. It added that without the merger, Hebei cannot compete against domestic rivals and expand out of China."

The newspaper said the merger and the creation of Hebei Steel Group is a first step towards helping Henan province solidifies its position as China's top province by steel productivity.

It said Mr Wang Yifang general manager of Tangshan Steel Group is the chief of the government led team in charge of the creation of Hebei Steel Group and Mr Liu Rujun chairman of smaller Handan Steel Group. It added that the top management of the new Hebei Steel Group will be announced soon.

Zhongtian alloy steel project put into production

It is reported Zhongtian Steel 600,000 tonnes of alloy strip steel project with an investment of CNY 150 million has been successfully put into production.

It will produce carbon structural steel, low alloy steel and high-quality carbon structural steel, the product specification is 1.8mm to 6mm x 160mm to 400 mm wide hot rolled narrow strip steel.

The alloy strip steel plant designed the strip steel project with an annual output of 600,000 tonnes adopting large scale high pressure water squama machine, φ700 reversible crude rolling mill unit etc equipments.

Shougang scrap steel base put into operation

It is reported that recently, Shougang Supply Company Fengtai scrap steel base and Fangshan scrap steel base held the opening ceremony. It marked that Shougang scrap steel bases formally put into production.

Fengtai scrap steel base covers an area of 26,000 square meters with storage capacity of 20,000 tonnes and an annual processing capacity of 150,000 tonnes. Fangshan scrap steel base’s storage capacity is 50,000 tonnes, an annual processing capacity of more than 300,000 tonnes.

With the production of Shouqin and Qiangang, the number and the quality of the scrap steel have new requirements. Shougang Supply increased the construction of scrap steel base, it selected two cooperative companies-Beijing Century Dirun Waste Recycling Company and Beijing Shuangdong Changsheng Trading Companies.

Baosteel Branch Five CR line successfully rolls B800NQ steel

It is reported that five CR line in Baosteel Branch has recently successfully rolled 80 kilogram of B800NQ steel and by now the line is able to produce all kinds of high strength steel products.

CR strip project is one of key projects during “11th five year” plan in Baosteel Branch. The picking rolling line was put into production in this March and main products are thin, high surface quality and high precision CR and HDG steel products and high strength auto steel.

Yunnan Desheng Steel Company develops well

It is reported that Yunnan Desheng Steel Company’s iron-making, steel making, and steel rolling technology indicators continue to keep a record high through the technological innovation.

As per reports, the company realized sales revenue of CNY 243.9 billion from January to May this year increased by CNY 109.8 billion up by 819% YoY, and paid value added tax of CNY 129.8 billion up by 285% YoY.

China Shipping Container to buy 8 ships for USD 560 million

Reuters reported that China Shipping Container Lines Co plans to order eight container vessels with a total price of USD 559.84 million.

China Shipping Container Lines Co said the ships with capacity of 4,250 twenty foot equivalent units each will be built by a subsidiary of China's biggest shipbuilder, China State Shipbuiding Corp. It said China Shipping will make payment in five instilments with the initial payment of USD 14 million due next week.

China Shipping Container Lines Co added that the new container ships, to be delivered between October 2011 and June 2012, will service long-haul routes to Europe, North America and the Mediterranean.

CSSC is the parent of China State Shipbuilding Co.

ArcelorMittal to double output of Temirtau plant

ArcelorMittal announced its plan to expand the steelmaking capacity of its Temirtau in Kazakhstan plant from 5 million tonnes to 10 million tonnes. It said that it is collaborating closely with the Kazakh government for the planning and execution of the project that will take 5 years to 9 years to complete.

The expansion project encompasses steel making, iron ore and coal extraction. For the steel plant, the plan is to modernize existing facilities with latest technologies and safety and environmental standards. The expansion project will add 4 million tonnes of crude steel capacity.
Latest technologies will help upgrade the existing Atasu iron ore mine to underground mining to reach 10 million tonnes, increasing production to 16 million tonnes and making Temirtau entirely self sufficient in iron ore.

Finally these investments are complemented by a 1.2 billion dollar investment for continuous improvements in health and safety and modernization of existing coal mines. Combined with the development of new mines, production is therefore expected to reach approximately 17 million tonnes of mined coal by 2018. This will further increase self sufficiency in coal supply for ArcelorMittal Termirtau.

These investments will also considerably reduce emissions and help achieve highest environmental standards.

Mr Frank Pannier CEO of ArcelorMittal Temirtau said: “With this significant investment, we are maintaining and developing our position as a key player in the regional and global steel market. We have formed a strong project team to look at the various aspects of the projects, from the technological choices to the product mix. We will use state of the art technologies that will minimize the impact on the environment and optimize production, making Temirtau a sustainable and quality focused operation.”

Severstal secures USD 900 million loan for buying Esmark Inc

Reuters reported that Russian steel giant Severstal has agreed for USD 900 million bridge loan to back it’s previously announced USD 17 per share tender offer for outstanding common stock of Esmark Inc.

Severstal has obtained a commitment letter from ABN AMRO, BNP Paribas and Citibank to underwrite a non amortising, unsecured bridge loan facility. Interest on the loan will be 100 bps over LIBOR until July 14, stepping up to 250 bps over LIBOR until August 1 and then to 275 bps over LIBOR until September 30 when the deal is repayable.

Severstal expects to refinance the bridge loan through a proposed offering of USD 1.8 billion of loan participation notes by, but with limited recourse to, a newly formed special purpose vehicle. Alternatively, the deal may be refinanced with a syndicated term loan to be arranged by ABN AMRO, BNP Paribas and Citibank if the bridge is not repaid by August 15.

Severstal's bid, worth about $1.24 billion, is backed by the United Steelworkers union, which had threatened to block an earlier offer from Esmark from India's Essar Steel Holdings. The tender offer will expire at midnight on June 26th 2008 unless extended.

EU against formation of gas cartel

According to European Commission spokesman, gas exporting countries should not create an OPEC style cartel that could control the market.

Mr Ferran Tarradellas a spokesman for the European Union Energy Commissioner said "The Commission is against any cartel, it believes that an open and competitive market is the best option for consumers and producers.”

Mr Tarradellas said "The Commission is monitoring this development very closely. It's of importance to the gas supply of Europe. We will wait to see if this group will be just an association or a cartel.”

In January, the International Energy Agency an advisor to 27 major energy consuming countries came out against the formation of a gas cartel. International Energy Agency said “The International Energy Agency believes that a cartel is always bad news for consumers and consumer countries. But cartels are also counterproductive for producing countries. Pushing up prices by forming a cartel will encourage consumers to reduce demand or switch to other fuels. This is particularly true for gas, which can be replaced with coal and nuclear energy."

Metinvest's GOKs receives international certificate

It is reported that Northern Ore Mining and Processing Integrated Plant and Central Ore Mining and Processing Integrated Plant operating under Metinvest Group umbrella received international certificates from Bureau Veritas confirming that their management systems of occupational health and safety comply with OHSAS 18001.

Mr Aleksandr Vilkul Honorary President of SevGOK and CGOK said "Health and safety management is an important part of our work. We strive to find new approaches to this issue that will help our enterprises meet the top global health and safety standards.”

Mr Vitaliy Tsopa commercial director of Bureau Veritas Certification said “Prompt response to new demands in the area of occupational health and safety demonstrate, first and foremost, an excellent organization of the process of maintaining health and safety standards at plants.”

Chevron agrees to oil pipeline deal with Kazakhstan

It is reported that US Oil Company Chevron has agreed with Kazakhstan to go ahead with a new domestic oil pipeline part of a broader USD 3 billion projects to link Caspian oil deposits with international markets.

As per report the pipeline to be built along Kazakhstan's western coast on the Caspian Sea was discussed at a meeting between senior Chevron officials and Mr Nursultan Nazarbayev president of Kazakhstan.

Mr Nazarbayev said "It is very important that we reached agreement with Chevron."

The 750 kilometer, USD 1.5 billion pipeline is due to feed oil from Kazakhstan's biggest oil fields Tengiz developed by a Chevron led group and Kashagan which has yet to start production into the BP-led Baku-Tbilisi-Ceyhan pipeline.

Metinvest to invest USD 1.5 billion in Promet in Bulgaria

According to money.bg, Ukraine steel major Metinvest Group intends to invest EUR 1.5 billion in the Bourgas Promet Steel mill.

Investments of over 15 billion USD planned in 2018 for the realization of this aim as in is way the amount of produced steel will double.

The Metinvest Group is controlled by Mr Rinat Akhmetov and increased its production in 2007 by 7% YoY.

RusAl to build terminals at northwest Russian port

RIA Novosti reported that United Company RusAl will spend over USD 300 million on building two terminals at a port in northwestern Russia to supply aluminum products and alumina to world markets.

RusAl said "The project will be RusAl's first step toward implementing a program to create its own specialized port capacity to enable the efficient transshipment of raw materials and finished products in view of the company's plans to boost output."

Under the document, the parties intend to bring the terminals into operation by 2011 with initial handling volumes of 2.5 million tonnes of alumina and 2 million tonnes of aluminum per year. The capacity of both terminals is expected to rise to 4.5 million tonnes of alumina and 3.5 million tonnes of aluminum annually.

Rosneft market capitalization hits USD 129 billion

RIA Novosti cited Mr Sergei Bogdanchikov CEO of Rosneft as saying that the market capitalization of Russian state controlled oil producer Rosneft hit USD 129 billion.

Mr Bogdanchikov said Rosneft considered further increases in its market value and also dividend growth a priority. He said that Rosneft planned to boost natural gas output from 15.3 billion cubic meters in 2007 to 20 billion cubic meters in 2010.

Under the company's strategy being developed until 2020, Rosneft plans to modernize its oil refineries and develop gas chemical operations.

In 2007, Rosneft oil output up by 25% YoY to 100.9 million tonnes.

Eurasian gas producers could meet in October - RGO

Interfax reported that the Russian Gas Organization hopes to hold a constituent meeting in October to set up an international alliance of nongovernmental organizations of countries producing and/or transporting natural gas within the Eurasian Economic Community.

RGO said in a statement that preparations for the meeting will kick off in the next few months.

EurAsEC brings together Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Armenia, Moldova and Ukraine are observers.

Brazilian Petrobras to open office in Ukraine

Ukrinform reported that the Brazilian State run Oil Company Petroleo Brasileiro SA is planning to open its office in Ukraine.

The report added that presently, the Petrobras leaders carry out an expert studying of seismological information. Following that, the parties will determine the form and terms of cooperation on supplementary exploration and production of the hyrdrocarbon raw material.

Rosneft net income in Q1 up by 600% YoY

RIA Novosti reported that Russia's state controlled crude producer Rosneft US GAAP net income up by 600% YoY in the first quarter of 2008 to USD 2.56 billion.

The reported that added that revenue in the reporting period grew 99.1% to USD 16.4 billion while earnings before interest, taxes, depreciation and amortization up by 225.3% to USD 4.7 billion.

Rosneft said in a statement "The strong increase in key financial indicators resulted from continued industry-leading oil production growth, improved vertical integration following the acquisition of refineries in 2007, excellent cost control, and higher prices of oil, petroleum products and gas."

Rosneft said average daily crude output up by 23.9% YoY in January to March 2008 to 2.125 million barrels per day compared with 1.715 million barrels in the first quarter of 2007.

OGK-3 IFRS 2007 net profit up by 53% YoY

RIA Novosti OGK-3's net profit in 2007 calculated to International Financial Reporting Standards up by 53% YoY to RUB 6.7 billion. OGK-3's earnings in 2007 grew 44.7% to RUB 33.386 billion.

In April OGK-3 said its net profit in 2007 calculated to Russian Accounting Standards up by 170% YoY to RUB 2.3 billion.

OGK-3 operates six electric power plants with a total capacity of 8,500 MW whose share in national generation exceeds 5%.

Russia to invest 4% GDP in transport infrastructure

According to Mr Sergey Ivanov vice premier of Russia announced during the round table in the framework of World economic forum in Saint-Petersburg that Russia has to invest 4% GDP in transport infrastructure.

He said that currently Russia spends 2.5% GDP for transport infrastructure. This can be compared with the expenses for military defense. It is not bad.

Mr Ivanov pointed out that about 75% businessmen who were asked during the World economic forum said that the state has to invest in transport infrastructure development first of all.

RusAl to spend USD 300 million on northwest Russian port

RIA Novosti reported that United Company RusAl will spend over USD 300 million on building two terminals at a port in northwestern Russia to supply aluminum products and alumina to world markets.

RusAl said "The project will be RusAl's first step toward implementing a program to create its own specialized port capacity to enable the efficient transshipment of raw materials and finished products, in view of the company's plans to boost output."

The statement said under the document, the parties intend to bring the terminals into operation by 2011, with initial handling volumes of 2.5 million tonnes of alumina and 2 million tonnes of aluminum per year. The capacity of both terminals is expected to rise to 4.5 million tonnes of alumina and 3.5 million tonnes of aluminum annually.

Vyksa invested RUB 1.3 billion in upgrading technology

It is reported that Vyksa Metallurgical Plant in the 2006 to 2008 years invested more than RUB 1.3 billion to the organization hydromechanical ekspandirovaniya in the full length of pipe on the line TESA 1020 one of two production lines set of large diameter pipes.

As per report the project both hydraulic expander, provides graded trailing stations pipes length of not more than 0.75 meters has been replaced by more sophisticated odnogolovochnye hydromechanical Expanders German company SMS Meer harvesting caliber pipe the entire length with increased accuracy on geometrical parameters. One Expander is designed to calibrate produced at the 1020 TESA 508 to 1067 mm diameter pipes with wall thickness up to 42 mm, the second to calibrate produced on the line 1420 TESA 508 to 1422 mm diameter pipes with wall thickness up to 45 mm. Thus, the work permits given to new Expander stable geometry pipes greater length and with greater than before, thick walls.

The project on the line TESA 1020 has also been upgraded with the participation of PO "Kolomna Heavy Machinery Plant" both hydraulic presses designed for calibration and hydro pipes. Improved gidropressy allow pipes to handle up to 12.4 meter in diameter 508 to 1067 mm with increased from 32 mm to 42 mm thick walls. Translation work with gidropressov cycle calibration hydro in the loop hydro will increase the productivity of each of them from 13 to 25 pipes 1067 mm per hour.

In addition, the project JSC Energokaskad found on the line TESA 1020 membrane filtration equipment and a set of thermal-clearance lubricating coolant, which allows recycle waste water and sludge generated when Expander.

Gazprom gas price to Europe hits USD 410 - CEO

RIA Novosti cited Mr Alexei Miller CEO of Gazprom as saying that Gazprom's gas delivery prices for Europe have reached USD 410 per 1,000 cubic meters. He said that "Today, the average price of our deliveries to Europe has reached USD 410."

Mr Miller said there had been a number of comments from Europe proposing a diversification of energy supplies. He said that "Europe's desire to diversify energy sources is understandable. But it seems that such statements are based on the somewhat strange idea that any alternative is preferable to Russian energy supplies. This flawed viewpoint cannot be justified."

Mr Miller also said Slovenia could take part in the South Stream project to build a European gas pipeline. He said that "At meetings during the St. Petersburg International Economic Forum, we agreed that Slovenia and Austria could participate in the project. He added that Gazprom was successfully implementing this project together with Italy's Eni.”

Mr Miller said "We have already concluded agreements with Bulgaria, Hungary, Serbia and Greece and held successful talks with other potential transit countries. He also said that Gazprom was considering further extending the capacity of the Nord Stream pipeline above the previously announced annual 55 billion cubic meters.

The Nord Stream pipeline, which Gazprom is building together with Germany's E.ON under the Baltic Sea at an estimated cost of USD 12 billion, will pump Russian natural gas directly to Germany.

Gazprom signs deal to prospect four deposits in Tajikistan

RIA Novosti reported that Russian energy giant Gazprom had signed a deal with the government of Tajikistan on prospecting four oil and gas fields in the Central Asian country. Under the agreement, Gazprom will carry out a range of geological prospecting projects at the four deposits that the company considers to be the most promising.

Mr Valery Golubev deputy chairman of the Gazprom management committee said after his meeting with Mr Emomali Rakhmon president of Tajik that Russia was willing to help the country develop its energy independence.

Mr Golubev said Tajikistan's total oil and gas deposits are estimated at 3 trillion cubic meters of natural gas. He said that "Each of these deposits has its own specifics, including low depth, and a natural gas structure with sulfur admixture. Therefore, Gazprom specialists estimate all geological prospecting at the four deposits at USD 500 million, to be contributed to the charter capital of future joint ventures with Tajikistan. He added that that the Russian energy giant would also engage in the development of Tajikistan's gas transportation and distribution system.”

Tajikistan currently consumes 800 million cubic meters of natural gas per year. The four deposits are expected to reach their target production capacity in three to five years, to bring Tajikistan's annual natural gas output up to 2 billion cubic meters and ensure the republic's energy independence.

Norilsk net income in 2007 down by 11.6% YoY

RIA Novosti reported that Russia's metals giant Norilsk Nickel net income calculated to International Financial Reporting Standards down by 11.6% YoY in 2007 to USD 5.28 billion.

Norilsk Nickel said its IFRS net income in 2006 stood at USD 5.97 billion. Revenues in the reporting period grew almost 44% to USD 17.1 billion, gross profit was up by 33.5% to USD 11.24 billion and profit from operations climbed 5% to USD 7.43 billion.

Norilsk Nickel accounts for over 20% of global nickel output, more than 10% of cobalt production and 3% of copper.

Peugeot Citroen and Mitsubishi open JV in Russia

RIA Novosti reported that French carmaker Peugeot Citroen and Mitsubishi Motors one of Japan's largest car producers broke ground on a joint venture estimated at EUR 470 million in Kaluga a city southwest of Moscow.

According to the report the capacity of the venture is planned at 160,000 cars a year 70% of which will be Peugeot Citroen mid sized models and 30% Mitsubishi mid sized sport utility vehicles. Production is due to start in 2011.

Mr Roland Vardanega a member of the Peugeot Citroen management while speaking at the ceremony said the French carmaker was looking to consolidate its position on the booming Russian market. He said that the joint venture's output would eventually be increased to 300,000 cars annually, with all the vehicles to be sold in Russia.

Mitsubishi sold 107,000 vehicles in Russia in 2007 and hopes to sell 140,000 this year, whereas Peugeot plans to sell 100,000 cars and Citroen some 50,000 in Russia in 2010. In 2007, Peugeot Citroen sold over 36,000 cars in Russia.

Gazprom to buy major assets in France - Mr Alexei

RIA Novosti reported that Energy giant Gazprom is set to become a key player on the French energy market and could buy major assets in France.

Mr Alexei Miller CEO of Gazprom in an interview with French Le Figaro said Gazprom's subsidiary in France was currently only supplying about 1% of natural gas consumed in the country.

Mr Miller said "We are seeking to become a key energy operator in France. He said that the energy giant would focus on medium and small businesses.”

He said that "We believe that the establishment of direct commercial relations with enterprises and local partners offers the best guarantees of secure deliveries. He added that after that Gazprom could gain a foothold on the French retail market.”

Miners violated safety work ban before fatal blast in Ukraine

The Associated Press quoted Ukraine's safety agency said dozens of miners caught in an explosion that killed at least one this week had violated a work ban that was imposed due to dangerous metha