June, 12 2008
Essar to increase Esmark offer by USD 2 per share
Reuters reported that India's Essar Steel Holdings Ltd intends to increase its offer by USD 2 per share for US steel company Esmark Inc which is also being courted by Russia's OAO Severstal.
Essar, which has also extended a USD 110 million loan to Esmark, said that it would increase its offer to USD 19 per share upon execution of a merger agreement.
Essar previously offered USD 17 per share to acquire all the outstanding shares of Esmark in a memorandum of agreement with the Wheeling, West Virginia based company, which owns steelmaker Wheeling-Pittsburgh. But the offer has been matched by Severstal, whose offer also has the backing of the United Steelworkers union, which has threatened to block the offer from Essar.
Mr Jim Bouchard CEO of Esmark said the company's board is considering the takeover offer from Severstal and would decide whether to accept it by this Friday.
RINL awards power supply and material handling contracts
Siemens Ltd. has recently secured two major orders from Rashtriya Ispat Nigam Ltd. The first order is for the power supply and augmentation package and the second order is for the plant material handling systems. The total value of both the orders is INR 1614 million, approx 25 million Euro. Both projects are scheduled for completion by mid 2009.
The scope of power supply and augmentation package includes turnkey setup of 220kV substations as well as to supply and install 14 bays of 220kV outdoor switchyards at two locations, which will include 3x110MVA 220kV transformers, 3x63MVA 220kV transformers, 105MV panels for 33kV and 11kV power distribution, around 60 kilometers of 33kV & 11kV cabling, protection through 100+ Siemens siprotec numeric relays and 2.5 kilometers of 220kV double circuit transmission line. In addition, Siemens will install a state-of-the-art automated substation system where-in the complete power flow and critical load parameters can be controlled and viewed on-line on large video screen. This includes monitoring and processing of over 1,000 inputs/outputs, networking the siprotec relays on fibre optic LAN and software development for the system.
This project will be the first in the country where Siemens polymeric insulated EHV current transformers, voltage transformers and lightning arresters would be used to enhance the maintenance free performance of the outdoor instrument transformers. Siemens bagged this contract against stiff competition and the project will be completed by March 2009.
The second order secured by the division from RINL is for the plant material handling systems and consists of high-tech systems for transporting raw material to blast furnace, sinter plant, coke oven and power plant along with a supply of lime stone and dolomite to steel melting shop. The systems also include complete supply, engineering, installation, testing and commissioning of power distribution system, automation system for new facilities.
Siemens will also upgrade as well as retrofit the automation for their existing plant, fire protection system and ventilation. The plant fire detection and alarm that will be now software controlled; through an intelligent addressable microprocessor based and air conditioning for the electrical buildings will be handled on turnkey basis. The project is scheduled to be completed in June 2009.
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.”
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.
Gujarat NRE to set up 41 wind power mills by September 2008
Kolkata headquartered Gujarat NRE Coke Limited has announced that the company is in spree to expand its power generating capacities. It currently has 22 operating winds mills in Gujarat with a total installed capacity of 27.5 MW.
In the current phase, it is in the process of setting up 21 more mills which will be followed by 20 more in the third phase, taking the total installed capacity to 87.5 MW. The total addition is expected to be progressively switched on within September 30th 2008.
The release added that “The wind mills are part of the company greater goal of generating clean, green energy.”
Gujarat NRE also said that “It is also in the process of setting up waste heat recovery power plants at its coke making facilities at Khambhalia, Bhachau and Dharwad with a total capacity of 60 MW. The stress on alternative sources of generating power follows the company philosophy of being Eco friendly which is the part of its ethos.”
Mr Arun Kumar Jagatramka vice CMD of Gujarat NRE said that “Our name says it all”.
NRE stands for Natural, Resources, Environment and the wind mills are part of this unflinching commitment to nature.
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.
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.
Titanium project to start construction next month
BS reported that civil construction work for the proposed INR 2000 crore integrated titanium project near Chhatrapur in Ganjam district is likely to start from the next month as the land acquisition process for the first phase of the plant is almost completed. The integrated titanium plant is being set up by Titanium Products Private Limited a joint venture company of the Kolkata based Saraf Agencies and Russian government.
According to the report, it requires about 250 acres of land at Kanamana, Sriramchandrapur and Tikiria Berhampur villages near Chhatrapur which will produce 40,000 tonnes of titanium dioxide per annum. The land comprises 200 acres of private land and 52.66 acres of government land.
Sources in the district administration said the company has taken possession of about 95% of private land and 34.09 acres of government land. It said the delay in acquiring the remaining 16.57 acres of government land is due to the necessary procedural requirement.
Senior government officer said the speeded up of land acquisition process is that unlike other projects the local people here have supported to the project. The company has met the demands of project affected people on land value. In a recent public hearing for the project, the local people supported the project. He said that "Nobody raised any objection in the public hearing at Chamakhandi, near Chhatrapur."
Mr S Modi a senior officer of the company said public hearing is necessary to get the environmental clearance for any project. "We have got the No Objection Certificate. But we are waiting for the environmental clearance.
In the second phase, the project would need another 300 acres of land, which includes 225 acres in private ownership. The land acquisition for the second phase has also started.
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.
35 submit bids for Maha Transco transmission project
Project Today reported that around 35 bidders including BHEL, Crompton Greaves, Areva T&D India, JSW Energy and Larsen & Toubro have submitted their bids to Maharashtra State Transmission Corporation for its INR 18,000 crore transmission strengthening and upgradation project in the state.
The list of other bidders include TATA Projects, Hyundai Engineering & Construction, Lanco Infratech, Kalpataru Power Transmission, Emco, Jyoti Structures, BGR Energy Systems, KEC International, Maytas Infrastructure, Isolux Ingenriu, Soma Enterprises, Gammon India and PowerTech Global.
Maha Transco has identified four packages of projects, two packages of transmission lines of around INR 1,500 crore each and two portfolios of sub stations and related lines of INR 2,500 crore each. Four strategic partners for EPC will be appointed for execution of project in each of the pre defined packages for three years.
According to the report proposed investment of INR 18,000 crore is a part of INR 60,000 crore investment plan proposed by the state government in the power sector. Over INR 30,000 crore will be spent on the addition of generation capacity, while INR 12,000 crore plus will be incurred on strengthening the distribution network.
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.
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."
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.
7 in race for Mumbai Airport ground handling contract
Project Today reported that around 7 bidders are in race for the Mumbai International Airport's of INR.700 crore yearly ground handling contract.
The bidders include
1. Swissport International of Spain along with Punj Lloyd Group
2. Menzies is partnering Cambata Aviation
3. Turkey's Celebi Ground Handlings is teaming up with Spencer Travels
4. US based Worldwide Flight Services
According to the report the GVK-led consortium is likely to finalize the bidder for the handling contract by early August 2008 or at least four months ahead of the new regulations that make it mandatory for airport operators to either get into ground handling directly or to invite specialized agencies to bid for both passenger and ramp handling at the airport, besides the National Aviation Company.
Indian spot steel prices start move up in first week of June
BL reported that steel prices in the spot markets of Delhi, Mumbai and Chennai have gone up during the first week of June 2008.
Delhi
Product 1-Jun 9-Jun Change %
Pig Iron 34,000 34,500 500 1.5%
Rounds 43,500 44,500 1,000 2.3%
Rebar 47,300 48,300 1,000 2.1%
HRC (2mm) 46,000 47,200 1,200 2.6%
Price in INR
Mumbai
Product 1-Jun 9-Jun Change %
Pig Iron 35,000 34,800 -200 -0.6%
Rounds 44,000 43,250 -750 -1.7%
Rebar 44,250 45,900 1,650 3.7%
HRC (2mm) 44,500 44,750 250 0.6%
Price in INR
Chennai
Product 1-Jun 9-Jun Change %
Pig Iron 31,200 34,320 3,120 10.0%
Rounds 44,720 49,700 4,980 11.1%
Rebar 46,800 48,880 2,080 4.4%
HRC (2mm) 47,840 49,400 1,560 3.3%
JSW may tap export credit agencies to lower funding costs
JSW Steel Limited may tap export credit agencies in Germany, the U.K. and the US to part fund its USD 3.3 billion expansion plan as banks restrict lending.
Mr Seshagiri Rao finance director of JSW Steel said that "The liquidity premium on large syndicated loans is very high as dollars are not available. Export credit agencies are an option we are actively working on.''
Mr Rao said that debt from export credit agencies in nations like Germany, where JSW is buying equipment, can be as much as 2% lower than a syndicated loan. He added that the government backed loans will typically cover up to 85% of the value of imported machinery.
JSW plans to spend INR 140 billion to almost double its capacity to 11 million tonnes by 2010, as demand rises for cars, homes and appliances in India. It will use INR 60 billion of its own cash and plans to use debt to cover the remainder. JSW raised an INR 31.5 billion, 10 year loan from a group lenders led by State Bank in May 2008. It paid 2.5% more than the same debt would have cost a year earlier.
TATA Steel offers to set up sports training centers
Ranchi Express reported that Jharkhand might have lost out on hosting major events during the 34th National Games but efforts have been initiated to build training infrastructure for producing medal hopefuls of future.
According to the sources in the TATA Steel sports department, acting a proposal will be handed over to East Singhbhum district commissioner Mr RK Agarwal for the construction of training centers adjacent to the proposed 250 bedded hostel to be built for the national Games near Chandinagar behind Jamshedpur bus terminus.
Mr TD Roy secretary of Jharkhand Weightlifting Association confirmed that a decision has been taken to build training centre for boxing, handball and weightlifting. He said that "We will discuss with TATA Steel authorities and submit a blue print along with estimated cost of building the infrastructure to the DC who will, in turn, send it to sports director Mr PC Mishra."
Great Offshore plans to buy rigs
Great Offshore Limited said that it now planned to buy only one of the two rigs it was eyeing through an overseas acquisition of the firm that had ordered them. Great Offshore did not name the firm.
On January 15th 2008, Great Offshore firm had said that it planned to buy an overseas firm that had placed orders for two semi submersible rigs estimated to cost about USD 1.4 billion.
Great Offshore said in a statement to stock exchange that "From what was originally envisaged, the economics of the project has undergone a significant change. We have decided to propose to the stakeholders of the overseas company to acquire one of the two rigs under construction, by the overseas company."
Performance based sops key to boost renewable energy
According to Mr Ramesh Kymal chairman of GBC Renewable Energy Council, Confederation of Indian Industry, feed in tariffs for renewable energy, performance based incentives and setting renewable energy portfolio standards for energy utilities are some of the necessities for development of renewable energy sources.
Mr Kymal said that industry representatives would push for such policy initiatives to encourage development of renewable energy at a conference and exhibition on renewable energy called Green Power 2008 being organized in Chennai between June 11th 2008 and June 13th 2008. He added that renewable energy is not just about environment, but also about energy security and self reliance.
He said that state power utilities and distribution licensees have to pay more for renewable energy as compared to conventional sources of power. This is a necessary incentive to encourage investments in renewable energy. He added that "Over 8,000 MW of wind power capacity has been set up in India with 1,800 MW added in 2007 alone. Though most of this is by captive power producers, the nature of investments is shifting from small captive units to large independent power producers willing to set up over 100 MW capacities."
Green Power 2008, being organized by the CII Sohrabji Godrej Green Business Council, will address the need for such policy initiatives. The 3 day exhibition will showcase the products and technologies in renewable energy and the 2 day conference starting on June 12th 2008 will see industry leaders address a range of issues.
Port workers demand early action on Jain panel report
BL reported that port and dock workers in India are preparing themselves for industrial action against non implementation of the agreed decisions between managements of the major ports and the 5 major federations on various issues in the port sector.
Mr SR Kulkarni president of All India Port & Dock Workers Federation, in a letter to union shipping minister, pointed out that the workers had averted a strike in September 2007 following the intervention of the minister who had constituted a committee under the chairmanship of Mr RK Jain MD of Indian Ports Association, to make its recommendations on various issues. He added that "Though the committee had submitted its report to the ministry, officials in the shipping department did not share the recommendations with the 5 major federations."
Mr Kulkarni also urged the minister to call a joint meeting of the recognized federations and the IPA to get the agreed decisions implemented by the ministry without any further delay. He pointed out that port and dock workers had extended un stinted support in improving the efficiency of the working of major ports and maintained industrial peace and harmony despite lethargic and bureaucratic approach of the officers in the shipping ministry.
CONCOR plans to reduce congestion at JN Port
BL reported that, beleaguered by the steady piling up of import containers as much as 12,000 boxes at present at the 3 terminals of the Jawaharlal Nehru port, Container Corporation of India is mulling an emergency arrangement to partly reduce the congestion. The accumulation has been caused by disruption in rail movement between North India and the JN port due to Gujjar agitation in Rajasthan.
The arrangement presupposes evacuation of an estimated 1,500 to 2000 boxes by road from NSICT and GTIPL terminals of the port to CONCOR’s Dronagiri terminal located a few miles away and from there transportation of the boxes by rail to different inland container depots mostly located in north India but some located in other parts such as Hyderabad. More than 50 per cent of the accumulated containers at the JN port are for the northern region.
Mr Yash Vardhan director (international marketing & operations) at CONCOR said that "Although the emergency arrangement presupposes additional handling involving part road movement, unloading of boxes from trucks and again reloading them on rail flats at DRT, Concor will not charge anything extra for it."
He said that "We will continue to charge the same rates as we presently charge for loading the boxes right at NSICT and GTIPL terminals." He added that with accumulation of boxes rising at JNPT terminals due to the agitation in Rajasthan and with the monsoon already breaking in Mumbai, CONCOR had no other option but to devise some alternative arrangement to tackle the problem.
According to one estimate, in various ICDs in the National Capital Region, more than 3,500 export containers are awaiting to be transported to the JNPT terminals. Interestingly, Hyderabad does not fall on the route hit by agitation and yet there delays in JNPT in clearing Hyderabad bound imports.
SAIL BSP faces problems due to delay in mine allotment
MyIris reported that the inordinate delay in the allotment of the Rowghat iron ore mines to Steel Authority of India Limited’s Bhilai Steel Plant is likely to raise serious existence problem for the unit, while impacting the economy of Chhattisgarh.
As per report, the delay is also likely to affect the INR 112.62 billion expansion and modernization plans of the Bhilai steel plan, which is associated with nearly 180 ancillary units operating in Chhattisgarh.
BSP currently utilizes the iron ore reserves of Dalli Rajhara mines worth 50 million tonnes, which is expected to get depleted within the next 5 years. Post expansion and modernization, the plant’s annual iron ore requirement is estimated to reach approximately 14 million tonnes, hence the requirement for the Rowghat mines.
The Chhattisgarh government had reportedly recommended the F pocket of the Rowghat mines with a reserve of about 511 million tonnes for the Bhilai Steel Plant and is awaiting the final approval from the Supreme Court.
Currently, the plant contributes about INR 3.12 billion annually to the state government’s exchequer in the form of sales tax, electricity bill, royalty, entry tax, terminal tax and property tax. Its contribution to the center’s exchequer amounts to INR 21.74 billion by way of central sales tax, excise, customs and cess, among others.
Renewable energy ministry to provide technical aid to DVC
A MoU has been signed between union ministry of new & renewable energy and Damodar Valley Corporation. The objective of this MoU is to deploy renewable energy systems and devices at the premises, power plants and various establishments of DVC with a view to conserve fossil and other fuels and augment energy generation through environment friendly and sustainable renewable energy sources. This will help in bringing down CO2 emissions. The MoU will be valid for 5 years from now.
As per MoU, union ministry of new & renewable energy will provide necessary technical assistance, examine the possibility of retro fitting solar thermal systems in their power plants and feasibility of installation of suitable solar concentrating system. Simultaneously, the possibility of Indo Australian collaboration under Asia Pacific Project 6 will be explored for installation of a Compact Linear Fresnel Reflector System. The ministry of new & renewable energy will provide financial support as per the provision of its on going schemes on renewable energy. The ministry of new & renewable energy will provide financial support as per the provision of its on going schemes on renewable energy.
Meanwhile, DVC will examine the possibility of installation of various renewable energy devices and systems at their premises, power plants and establishments. This include water heating systems, cookers, drying and heating systems, home lightings, generators, street lights, traffic lights, blinkers, road studs based on solar energy, energy efficient solar buildings, bio mass gasification, cogeneration, projects on methane utilization, micro and mini hydel system etc. DVC will meet the expenditure on installation of these devices, power plants and other establishments.
Canasia Power inks deal with CNEEC for Jawaharpur power plant
Canada based Canasia Power Corporation has signed a turnkey construction agreement with China National Electric Equipment Corporation for its Jawaharpur supercritical thermal power plant at Etah in Uttar Pradesh.
The INR 4,716 crore project was initially designed as a sub critical 800 MW thermal power plant. But due to increasing environmental concerns and the deepening power needs in the state and the country, Canasia increased the capacity of the plant from 800 MW to 1,320 MW.
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 to USD 400 million. The majority ownership will also be Canadian, through Canasia.
It may be noted that Canasia Power Corporation, through its wholly owned subsidiary, Jawaharpur Power India, had signed and received a counter guarantee from the Uttar Pradesh government for its 800 MW thermal power station in 1993.
Shipping firms set to earn 40% more in 2008-09 – Report
Exim News Service reported that, with the burgeoning crude oil prices and a growing shortage of tankers that have pushed up freight rates, shipping companies are expected to earn 35% to 40% more revenues in 2008-09.
Following increasing demand for very large crude carriers, freight rates have more than doubled from an average of USD 59,652 a day in April 2008 to almost double at USD 129,052 on May 15th 2008. The shortage created by the phasing out of old oil tankers and single hull vessels would ensure high freight rates for at least 2 to 3 years.
Shrewdly sizing up the market situation, Shipping Corporation of India has announced plans to invest USD 3.5 to USD 4 billion to buy nearly 70 new buildings and has already placed orders for 28.
Mr S Hajara CMD of SCI said that oil tanker freight rates will be steady for a few years given the demand supply situation on account of the phasing out of all single hull vessels by 2010 as required by the International Maritime Organization guidelines.
Mr Yudhishthir Khatau director of the Indian National Shipowners’ Association, emphasizing the gains of larger vessels, said that "The end user sees a major gain as he gets a cheaper cost per tonne. If you take a larger vessel, the turnaround time, cargo loading, berthing and unberthing time are all reduced."
TATA Motors may hire more workers at UK Jaguar plant – Report
Coventry Telegraph reported that TATA Motors will not only keep existing jobs going at Jaguar's research base in the northern British towns of Whitley and Gaydon, it may even hire more workers.
Mr Jim Cunningham, who represents Coventry South for the ruling Labor Party, said that he is given the assurance by visiting TATA Group chairman Mr Ratan Tata at a special meeting in the House of Commons, the lower house of parliament.
TATA's comments will help further calm any lingering anxieties following TATA's acquisition of the iconic British carmakers Jaguar and Land Rover, a deal which was signed on March 28th 2008 and concluded on June 2nd 2008.
Although Britain's largest workers' union Unite as already declared itself satisfied with TATA assurances on more than one occasion, Mr Cunningham said that he asked Mr Tata outright if the firm had any plans to relocate to India or sack workers. He added that "Mr Tata confirmed that there were not plans to move any of the UK plants and that no redundancies were planned. Instead, they will be increasing the workforce in the research areas. They are going to keep Whitley and going to keep Gaydon. They are very impressed by the skills at Whitley. What they may be doing and I don't want to exaggerate this, because they still have not produced a business plan is in certain areas, because they are impressed by skills, they will, for limited projects, employ more people."
NMPT handles record number of containers in a single voyage
BL reported that New Mangalore port, which has been witnessing a steady growth in container traffic, has handled the highest number of 1,186 TEUs of containers in a single voyage.
Mr P Tamilvanan chairman of New Mangalore Port Trust said that for the first time, New Mangalore Port has handled the parcel size of more than 1,100 TEUs in a single voyage.
The container feeder line of Bengal Tiger Lines, MV Tiger Stream, operating between Mangalore and Colombo, called at the port on June 6th 2008. A record number of 1,186 TEUs of containers were handled in a single voyage from the above vessel, surpassing the previous record of 786 TEUs of containers handled from MV. Tiger Power which called at the port on September 9th 2006.
The container traffic at the port is witnessing a good growth during the current financial year. The port handled 5,556 TEUs of containers as on June 10th 2008 as against 3,097 TEUs in the corresponding period of last year, recording a growth of 79.40% YoY.
During 2007-08 fiscal, the port witnessed a growth of 24.12% YoY in container traffic. It handled 21,460 TEUs of containers in 2007-08 as against 17,290 TEUs in the previous year.
ABG Shipyard announces Q4 & 2007-08 fiscal results
ABG Shipyard Limited has announced the following audited results for the quarter & year ended March 31st 2008
The results for the January to March 2008 quarter
ABG Shipyard has posted a net profit of INR 46 core for the January to March 2008 quarter up by 39.4% YoY as against INR 32.98 crore in January to March 2007 quarter. Total income for the quarter was INR 278.65 crore up by 42.1% YoY as against INR 195.97 crore.
The results for the Year ended March 31st 2008
For the year ending March 31st 2008, its net profit stood at INR 160.68 crore up by 38.1% YoY as compared to INR 116.29 crore. Total income has increased from INR 709.77 crore for the year ended March 31st 2007 to INR 974.24 crore for the year ended March 31st 2008, up by 37.26% YoY.
Orissa may allot Khandadhar iron ore block to POSCO – Report
It is reported that POSCO is likely to get Khandadhar iron ore block to meet its raw material requirement for the 12 million tonne steel project to be set up in Orissa as the state government has decided to allot the iron ore block in the state to the steel maker.
Khandadhar iron ore block has reserves of 200 million tonnes, which will be adequate to meet initial capacity of the project. The main stumbling block in executing the project was getting iron ore, ever since the MoU was inked in late 2005 and the government's decision to grant the iron ore block will be a major step forward in this direction.
An official source said that Orissa government has finalized granting prospecting license to POSCO for Khandadhar mining block. The government will be sending a formal approval for prospecting license to the centre for its approval in a week's time. Once the centre okays the proposal, the license will be notified in the name of the South Korean steel maker.
The mining lease issue for POSCO has been in the limelight in the wake of strong reactions coming from the company recently. In fact, POSCO recently threatened to pull out of the INR 52,000 crore project, if their pending issues over land allocation and mine leases were not sorted out.
One dead at Vikram steel plant blast in Rajkot
PTI reported that a laborer was killed in an explosion at a fabrication unit of Vikram steel plant in Rajkot.
The local police said that the explosion in a barrel seriously injured a worker, who was declared dead on arrival at the hospital. The police have registered a case of accidental death and further probe is on to ascertain the cause of explosion.
Indian Railways freight handling up by 10.2% YoY in 2 months
Indian Railways has carried 137.73 million tonnes of revenue earning freight traffic during April to May 2008 period up by 10.2% YoY as against 124.98 million tonnes actually carried during April to May 2007 period.
During the month of May 2008, the revenue earning freight traffic carried by Indian Railways was 69.95 million tonnes up by 9.4% YoY as against 63.94 million tonnes carried by the Indian Railways during May 2007.
TATA Steel reports on Mozambique project coal yields
TATA Steel recently announced that its JV coal project with Riversdale Mining in Mozambique would yield premium hard coking and thermal coal, suitable for export and a mine mouth power station.
In a filing to the BSE, TATA Steel said that the coal quality progress results for Benga deposits near Tete in Mozambique indicates that both hard coking and thermal coal would be of premium quality and make the venture a world class project. It added that it will also give Riversdale an opportunity to be a globally competitive coking coal producer.
Benga hard coking coal quality
The following qualities indicate that the Benga coking coal will qualify as a premium hard coking coal
1. High CSN results: 8.5
2. Vitrinite levels in excess of 80%
3. Coal ranks of 1.2 and 1.6
4. Volatile matter content in the range of 19% to 25%
5. Fluidity levels of between 2.1 and 3.1
6. CSR of approximately 70 for comparable coking coals from Moatize Basin
The Benga hard coking coal compares favorably against the premium Bowen Basin coals found in German Creek and Moranbah Coal Measures and are superior in quality to the Rangal coking Coal Measures.
Benga thermal coal quality
The Benga deposit will produce thermal coals, with the capability to generate grades suitable for export or mine mouth power generation.
At this stage the optional proportion of export to domestic thermal has not been finalized and as such yields and coal qualities are reported on a domestic thermal coal basis. The domestic thermal coal has the following favorable properties making suitable for mine power station use.
1. High energy levels at 5500kilo calorie per kilogram
2. Low inherent moisture at 0.8%
3. High boiler efficiency
4. Relatively benign ash chemistry
5. High HGI values and good grinding performance
TATA Steel said that further work is being undertaken to optimize the potential products from the Benga deposit. It added that "In particular, liberation studies and mining optimization will be undertaken to assess opportunities to increase coking coal yields and optimize the overall properties of the coal products."
TATA Steel said that the Benga hard coking coal compares favorably against the premium Bowen Basin coals found in German Creek and are even superior in quality. As for thermal coal, it said that it would be suitable for mine mouth power stations. It said the power produced will be used for supplying the mines and will also find markets in the Southern African Power Pool, which is currently experiencing acute power shortages.
TATA Motors to raise USD 1 billion overseas to fund more acquisitions
It is reported that TATA Motors is planning to raise USD 1 billion from the overseas markets, which will be used to meet its fund requirements and acquisitions. It will raise about USD 500 to USD 600 million through securities as long term resources, in one or more tranches.
Tata Motors said that "It has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including strategic alliances and acquisition opportunities."
Earlier, TATA Motors announced that it would raise about INR 7,200 crore through 3 simultaneous rights issues and another USD 500 to USD 600 million from the overseas market to fund the USD 2.3 billion acquisition of Jaguar and Land Rover.
TATA Motors has also chalked out major plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including strategic alliances and acquisition opportunities.
Indian Railways likely to take over Bharat Wagons
ET reported that union ministry of railways may take over operations of Bharat Wagons & Engineering Limited from the department of heavy industry as a part of its strategy to manufacture 1,50,000 wagons in the 11th Five Year Plan. The ministry has, however, asked department of heavy industry to execute financial restructuring of BWEL besides writing off loans of INR 150 crore to facilitate the takeover.
An official at department of heavy industry said that "The railway ministry has agreed to take over the ailing company provided it would not have to serve the liabilities." He added that Indian Railways is the major consumer of BWEL and it would be able to take the revival exercise properly.
Indian Railways need a huge rolling stock capacity to meet its 11th Plan targets. In fact, there is a plan to manufacture wagons with higher load-bearing capacity by making a switch towards using 22.9 tonne axle load wagons from the present axle load of 21.3 tonnes. It, however, wants to start on a clean slate and has requested the government to wipe off BWEL loans of about INR 100 crore and interest liabilities of about INR 50 crore.
Bharat Wagons & Engineering Limited, which makes railway wagons, LPG cylinders, steel fabrications and screw pile bridges, has been incurring losses continuously for over 3 years. Its accumulated loss is INR 24.14 crore in fiscal 2006-07. It recorded a negative net worth of INR 143 crore for the 2007 fiscal as against INR 123 crore a year ago.
The department of heavy industries provides financial support to the central public sector enterprises in consultation with the finance ministry and the planning commission for meeting their investment needs and implementation of loss making central public sector enterprises sanctioned by the government. For 2008-09, a sum amount of INR 21 crore has been sanctioned to meet expenditure on revival cases.
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)
Esmark files case against USW for blocking Essar deal
Esmark Incorporated announced that its subsidiary Wheeling Pittsburgh Steel Corporation has filed a charge under the National Labor Relations Act against the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Services Workers International Union alleging multiple violations of federal labor law in connection with the USW's repeated claims that they can and their attempts to, block the proposed acquisition of the Company by Essar Steel Holdings Limited.
The charge, filed with the National Labor Relations Board, details the alleged violations. The charge identifies specific public and private statements made on behalf of the USW by high ranking USW officials stating that
1. The USW will not deal with Essar or enter into an agreement with Essar.
2. The USW has the right to veto any proposed transaction between the Company and Essar under the successorship provision of its collective bargaining agreement
3. That the Company must cease any proposed transaction with Essar because the USW supports the purchase of the Company by OAO Severstal. The Company believes that these and other actions violate the NLRA which governs issues between unions and employers.
The National Labor Relations Act charge comes after Essar stated in a letter to the USW that it was prepared to recognize the USW as the employees' bargaining representative and assume the collective bargaining agreement the USW has in place as well as negotiate a new collective bargaining agreement on an expedited basis if the USW so desired.
Mr Craig Bouchard president of Esmark said that "The collective bargaining agreement with the USW has provisions designed to protect employees by requiring a purchaser to recognize the USW and assume their labor agreement under certain circumstances. We have always supported that protection for our employees. The USW seeks to turn what was intended as a shield of employee protection into a sword to veto business transactions that lie within the proper province of the board of directors and shareholders of the Company. The USW's unlawful conduct is particularly troubling given Essar's commitment to protect employees by assuming the existing contract, and their commitment to invest over USD 500 million dollars in the Ohio Valley. The Company does not believe that the successorship provisions of the collective bargaining agreement apply to the proposed Essar transaction and specifically the provisions do not apply to Essar's proposed purchase of shares through a tender offer. The USW's actions constitute labor law violations that stand in the way of maximizing shareholder value. The Company looks forward to a prompt resolution of this matter."
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.
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.
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.”
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.
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.”
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.
Taiwanese tube makers push up prices
After Taiwan’s Chung Hung Steel has announced to raise TWD 2,500 per tonne on its hot rolled product, Taiwan galvanized pipe mills have successfully raised its June price because of strongly demand.
For small size pipes, the new price is around TWD 48,000 per tonne now, it is nearly 160% higher. For large size pipes, the new price is around TWD 46,500 per tonne which is nearly 155% higher.
Since China Steel Corp. has increased its hot rolled product price by TWD 4500 per tonne in third quarter, downtrend mills had to watch the market very carefully. They believe that the galvanized pipe price may raise again next month.
(Sourced from YIEH.com)
Thailand to increases rail line budget to draw bidders
Bloomberg reported that Thailand has increased the budget to build a new rail line in Bangkok to attract bidders after construction costs rose. The state agency has asked bidders to submit proposals in August.
Mr Wichianchote Sukchotrat a government official told reporters at a press conference in Bangkok that the Mass Rapid Transit Authority of Thailand revised the cost for the line to THB 36 billion (USD 1.09 billion) from THB 31 billion
Mr Wichianchote said that the original price estimate may deter contractors.
Record oil prices have made construction materials such as steel and cement costlier. Crude, which touched USD 139.12 a barrel on June 6th 2008, has more than doubled in the past 12 months.
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)
Japanese steel makers increase 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.
BlueScope prices USD 325 million bond - Report
Reuters reported that Australia’s BlueScope Steel Ltd has increased its fund raising plans to USD 325 million and priced a private bond placement.
According to market sources the offer, initially announced with a size of USD 150 million comprised three maturities of 7, 10 and 12 years. The 10 year tranche was the largest piece with over USD 200 million of notes and will pay a coupon of 6.71% or 275 basis points over US Treasuries. The 7 year tranche will also pay 275 basis points over US Treasuries, while the 12 year will pay 285 basis points over US Treasuries.
Bank of America and Westpac Institutional Bank jointly arranged the offer. Both declined to comment.
The US private placement market has been a popular source of funds for Australian corporations looking for long dated debt.
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.”
S&P cuts Zlomrex rating to CCC+ on continued liquidity risks
Standard & Poor's Ratings Services downgraded Poland based integrated steel group Zlomrex SA saying the company's persistently weak liquidity exposes it to ongoing high refinancing and default risks.
The agency lowered its long term corporate credit rating on Zlomrex to CCC+ from B-. The short term rating was lowered to C from B. In addition, the senior secured debt rating on the EUR 170 million 8.5% callable bonds due 2014 issued by subsidiary Zlomrex International Finance SA and guaranteed by Zlomrex was lowered to CCC from CCC+.
All ratings were removed from creditwatch with negative implications. The outlook is stable.
S&P said that “Without ongoing bank support, we remain concerned that Zlomrex is unable to repay short-term debt and has very little headroom to cover unexpected cash needs. The company remains highly reliant on the willingness and ability of banks to increase, renew or extend bank lines.”
More Japanese steelmakers shipped pipes without tests
Kyodo News reported that two steel product makers, subsidiaries of a major and a medium ranking steelmaker, revealed that they had shipped products without tests required by law, expanding the test skipping scandal in the industry.
Nippon Koshuha Steel Co, a subsidiary of Kobe Steel Ltd, said that it had shipped a total of 206 tonnes of steel products without conducting product strength tests required under the Japanese Industrial Standards in the five years beginning from April 2003.
NAS TOA Co, a subsidiary of mid ranking Nippon Yakin Kogyo Co, also announced the same day it had shipped some 980,000 welded stainless pipes without conducting legally required hydraulic pressure tests for about five years from April 2003 at its plant in Chigasaki, Kanagawa Prefecture.
With the Nippon Koshuha case, all but one of Japan’s five major steelmaker groups are now implicated in the scandal which came to light recently. The only exception is Sumitomo Metal Industries Ltd.
Northwest Pipe to build seamless tube mill in Houston
Northwest Pipe Company announced plans to construct a new tubular products pipe manufacturing facility in the Houston, Texas area. The Company is finalizing site location and permitting issues and expects to begin construction this summer. Northwest Pipe expects that the new facility to begin operations by April 2009.
The new facility will focus on producing casing pipe for the Oil Country Tubular Goods market.
Mr Brian W Dunham CEO & president of Northwest Pipe Company said that "Our energy pipe business has grown substantially over the last few years. We see additional opportunities, particularly in this region of the country. This expansion will enable us to participate in the market for pipe used in gas exploration, which will complement our existing position in pipe used for gas gathering and transmission."
Mr W Dunham added that “While this will be a new facility, the Company already has the necessary equipment located at Portland in Oregon. We will redeploy a complete and recently modernized production line to address this market. Its capabilities are 2 inches to 7 inches in diameter with wall thicknesses up to 0.375 inches. We see this as an excellent opportunity to put idled capacity back into production and to do so in the heart of the market we expect to serve. We believe the combination of our equipment, location, the people we already have in place in Houston and the distribution system we already have set up for our other products will make us a very efficient and effective producer."
Dongkuk and Namyang bid for Ssangyong Engineering
It is reported that two South Korean consortia led by Dongkuk Steel Mill Co and Namyang Construction Co submitted bids to buy creditor owned Ssangyong Engineering & Construction Co.
According to the Korea Asset Management Corp, the two groups bid for 50.07% of Ssangyong Engineering & Construction, which has been on the selling block since 2005.
The agency said after reviewing their proposals, it will select a preferred bidder this month. Industry sources estimate that the selling price would range from KRW 350 billion (USD 341 million) to KRW 500 billion.
Russel Metals sees better results for Q2
Russel Metals Inc announced that the average analyst’s consensus earnings of CAD 0.78 for the second quarter ended June 30th 2008 are understated by 35% to 45%.
Russel Metals said that “On going steel price increases have enhanced our margins in all three segments. Consistent demand in the service center segment and increased activity in areas serviced by our energy tubular products segment have favorably strengthened our projected results for the second quarter of 2008. The current economic conditions and uncertainty on the sustainability of the steel price increases make it difficult to project the earnings levels for the second half of 2008.”
Russel Metals reported basic earnings per common share in the second quarter of 2007 of CAD 0.47 and CAD 0.46 in the first quarter of 2008.
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specializes, Milspec Industries, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York Ennis.
South African labor union to strike over energy crisis
Bloomberg reported that the Congress of South African Trade Unions, the country's biggest labor federation, will hold a national strike on July 30th 2008 to protest against the threat to jobs from electricity rationing and increased power charges.
The union said that the provincial strikes will begin July 2 and extend through the month, after lack of investment by state run generator Eskom Holdings Ltd and delays in government approval for expansion led to energy shortages.
The union said that the strike is a response to the danger of retrenchments in the mining sector and elsewhere because of the utility's decision to reduce electricity supply and hike prices.
The union said that the price increase will put thousands more jobs at risk which has about 1.8 million members and is a partner in South Africa's ruling alliance with the African National Congress.
Eskom which provides 95% of electricity in South Africa is restricting supply to industry after cutting power to mines for five days in January. The company is also seeking a 53% tariff increase to help fund its planned ZAR 343 billion (USD 43 billion) expansion over the next five years.
Accident suspends operations at Warren Steel
It is reported that steel making was suspended this morning at Warren Steel Holding in Warren Township after molten steel burned a hole in a filled ladle. But there were no injuries.
Mr Ken Schick Warren’s township fire chief said that the hole opened about a quarter of the way from the top of the ladle, pouring liquid steel onto the floor of the melt shop of the former Copperweld Steel Co off Mahoning Avenue. Firefighters were called to the facility shortly after 8 AM. They could only cool down the area with water.
Mr Schick said that some hydraulic and electric lines were burned, but there was no damage estimate. Firefighters were joined by others from Champion and Howland townships.
(Sourced from Vindy.com)
Nucor seeking to push rebar prices to USD 920 per ton
Purchasing.com reported that with construction activity down by about 3% in 2008, demand for carbon steel reinforcing bar is down by 6.5%, yet the rebar sales price average of USD 867 per ton in May 2008 is higher than some analysts had expected.
Now, because of still high scrap prices, Nucor is seeking to raise rebar prices to USD 920 for deliveries in July from USD 885 for June 2008 deliveries.
Mr John Anton analyst at Global Insights suggested that prices are being supported by high input costs, a weak dollar, low imports and thin inventories.
He forecasted that “The increases will stick until inventories begin to rebuild late in the third quarter of 2008, followed by a rapid decline at the end of the year because of weakening demand.”
He added that “However, there remains a difference between mill list prices and transaction prices paid by buyers at various construction companies. That’s because rebar demand these days is being supported more by inventory restocking than by end market consumption. Eventually, inventory will be replenished and then prices will fall.”
Mr Anton noted that “Nonresidential construction is at a peak and will decline through late 2009 adding that nonresidential construction is peaking and will decline 13.8% through early 2010.”
ArcelorMittal and Vorskla pitching for Kremikovtzi
Dnevnik reported that the two main candidates to acquire stricken Bulgarian steel maker Kremikovtzi have met with top government officials to present their take over plans. Both Arcelor Mittal and Vorskla Steel are now talking about the acquisition of Kremikovtzi assets with no clear plans about the core business of the public corporation.
While, Mr Konstantin Zhevago met with Mr Sergei Stanishev Bulgarian prime minister and then was given a brief tour of the plant site Mr Volker Schwich of ArcelorMittal said that a letter containing the commitments that the world's biggest steel maker is ready to undertake in respect to Kremikovtzi has been submitted to the Bulgarian government. A spokesman for Mr Zhevago said that the Ukrainian businessman has done the same.
Mr Schwich declined to give details about the mechanism for the recovery of the steel mill and the ownership change over. Mr Schwich said that ArcelorMittal is very close to clinching an agreement with the holders of bonds collaterised with Kremikovtzi assets. But he did not say at what price the bonds will be repaid. ArcelorMittal also said it has reached an agreement with the trade unions in the Bulgarian steel company.
Vorskla Steel said that their bid contains a revival plan that will provide immediate supplies and USD 90 million in working capital. That would happen if the company is allowed to take charge of the operative management at Kremikovtzi until the actual ownership change over. During that time, profits will be reinvested as follows: 5% to improve working conditions and 95% to implement the revival plan. In case Vorskla Steel acquired the plant, it s promising a capital investment of USD 531 million and USD 60 to USD 120 million for environmental measures.
(sourced from Denvik)
Taiwanese coal purchases rise
Taiwan’s the Bureau of Energy said that its coal imports climbed 11% to 6.23 million tones as China resumed exports.
Prices soared by 76% to USD 111.91 a tonne for power station coal and 63% to USD 176.23 for coking coal used in steelmaking.
China suspended overseas coal shipments in February and March, delaying supplies to Taiwan, after snowstorms disrupted production. The mainland accounts for about 15% of the coal burned by Taiwan Power Co.
Taiwan imports all its coal
ArcelorMittal in talks to take control of Dillinger - FT
The Financial Times reported that ArcelorMittal has held discussions about taking control of Dillinger Hütte a German steel supplier valued at about EUR 3.5 billion in a move designed to strengthen its position in the fast moving sector of specialist plate for energy pipelines.
But the plan has been rebuffed by Montan Stiftung Saar a private trust based in the German state of Saarland where Dillinger is located and which is the second biggest shareholder in the steel company, in which ArcelorMittal already owns just under half.
A person involved with the talks said that "The discussion does not appear to be about money. It is more to do with the principle that the trust does not want to sell."
The stand off is regarded as a test of Mr LN Mittal's ability to use his powers of diplomacy to convince the trust that Dillinger would have a better future inside ArcelorMittal than as part of a loosely constituted Saarland group of companies.
Mr Mittal told FT that "We would like to own a controlling stake in this company. We are working on the ways of allowing this to happen. We have talked to the various other shareholders in the business but so far we have not found a solution to allowing us to take a greater share."
Raw material supplies worry steel makers in US
Ohio.com reported that Cleveland Cliffs Inc, North America's largest producer of iron ore, said that US steel makers are concerned supplies of raw material and are renegotiating contracts to guarantee deliveries.
Ms Laurie Brlas CFO of Cliffs at a conference in Toronto said that Russia's OAO Severstal recently renegotiated a contract that was not up for renewal because it wanted to guarantee extra supplies. She added that Cliffs increased base prices on the contract.
Cliffs said that it supplies about 28% of the iron ore pellets used in North America and much of the material it does not supply is held by steel makers such as US Steel Corp.
BlueScope steel workers in equipment ban campaign
It is reported that workers at the Port Kembla BlueScope Steel facility are taking part in a Stop for Safety campaign supporting the Australian Workers’ Union’s ban on the use of high pressure hoses.
The campaign was started in remembrance of the death of Mr Setaleki Kolomaka who died in an incident where he was hit in the chest when he lost his grip on a high pressure water blaster.
According to the Union, the equipment will need to be altered before workers can resume using the hose.
In a memo circulated to its Port Kembla employees, BlueScope Steel asked them to consider the high risk tasks they undertake and safe ways to do their work.
Japanese scrap export price reach record levels
JMB reported that Kanto Tetsugen's monthly ferrous scrap export tender price hit record averaged JPY 66,450 per tonne from Tokyo bay for H2 grade for July shipment, which was JPY 1,600 higher than previous tender and renewed record for 6 months in a row.
The price increased by around JPY 30,000 or around 88% in a year when worldwide higher steel demand lifted international price ferrous scrap price.
SKW Stahl new supervisory board appointed
SKW Stahl Metallurgie Holding AG announced that the local court in Traunstein has appointed Dr Friedrich Trautwein, Mr Titus Weinheimer and Dr Wolfgang Ziegler as new members of the Company's Supervisory Board. This means that the Supervisory Board of the Company again has its full number of members.
In its inaugural meeting, which was held immediately after the court appointment was received, the new Supervisory Board elected Mr Titus Weinheimer as its chairman and Dr Friedrich Trautwein as its deputy chairman.
Mr Ines Kolmsee CEO SKW Metallurgie said that "We are delighted that SKW Metallurgie's Supervisory Board once again is staffed with highly competent members. The new Supervisory Board has, in particular, expertise in the foreign markets that are of particular importance for our company and will thus further drive our international growth. At the same time we regret that the previous Supervisory Board was not able to achieve the majority needed for reelection, and we would like to expressly thank the previous Board members for their far reaching services for our Group."
The new Supervisory Board is staffed internationally, as the SKW Metallurgie Group generates the bulk of its revenues abroad, and as in particular the NAFTA region is responsible for more than 50% of consolidated revenues.
EU seeks damages from elevator cartel companies
Thomson Financial reported that the European Commission is seeking damages from elevator manufacturers Thyssenkrupp AG, United Technologies' Otis, Schindler Holding AG and Kone Oyj which were fined for participating in a cartel.
The Commission is seeking damages for extra costs incurred when their products were installed in European Union buildings.
Mr Maximilian Strotmann a spokesman for EU Administration, Mr Siim Kallas audit and fraud commissioner said that the EU executive is seeking damages as it is committed to its obligation to protect the public budget.
The spokesman said the commission is in dialogue with other EU institutions over the issue but could not elaborate further.
The EU executive in February fined the world's biggest four lift makers a total of 992.3 million euros for alleged cartel activity going back twelve years.
A spokeswoman for ThyssenKrupp Elevators confirmed that the company's Belgian unit has received a letter from the Commission seeking damages. But she declined to say how much the Commission is demanding as well as how the company plans to react to the demands. She said that "We have to examine the matter internally first.”
Capesize rates see sharp decline
Lloyds List reported that Capsize rates recorded one of their steepest falls dropping by as much as USD 15,000 per day on the major Pacific route, as demand for iron ore and coal cargoes dried up.
The Baltic Capesize Index lost 4.5% to reach 18,033 points, while average daily time charter rates were down USD 10,640 to USD 213,176. Mr Mike Reardon vice president of research and marketing of Imarex said that “The capes have gone from decline into projectile regurgitation.”
Capesize spot rates have now lost nearly 10% since peaking at an all time high on June 5 at an average time charter rate of nearly USD 234,000 per day. The BCI was at 19,687 points on that day.
A spokesman at the Baltic Exchange said that “In the last day or two there have been very few reported fixtures, it’s just been extremely quiet, and at these kind of massive rates that we’ve seen in the market for the last two or three weeks, any fall tends to be magnified.”
He added that “There’s been so much business that has been fixed that inevitably the market has to catch its breath.”
CSC sees June shipments unaffected by furnace halt - Report
The Commercial Times quoting Mr LM Chung executive vice president of CSC reported that China Steel Corp shipments in June 2008 are unlikely to be affected by a halt in operations at a blast furnace.
Mr Chung said that production at the company No 1 furnace has being suspended since last Friday after its cooling system was damaged by a fire. He added that production could resume next week.
It said that a two week suspension could cut production by 80,000 to 100,000 tonnes. The report said that but the company usually has inventory of around 200,000 tons, which should be able to offset the impact.
Nippon Steel introduces new wide flange beam to US
Purchasing.com reported that Japan's Nippon Steel hopes a new type of wide flange beam being made available in the US for the first time will prove popular in the competitive North American sections market.
Nippon unveiled that the new Hyper Beam to potential US buyers at the North American Steel Construction Conference at Nashville in Tennessee.
The new beam's flange thickness extends downward, rather than upward, and offers a higher flange to web thickness ratio. The downward flange design enables beams with varying flange thicknesses and weight supporting capabilities to maintain a uniform surface level or outer dimension.
Nippon Steel and two other mills currently sell about 500,000 tonnes annually of this section in the Japanese market. The downward flange beams will have mostly industrial and high-rise construction applications. No company is currently producing a similar type of beam here.
TISCO formally introduces low nickel 304 J1 stainless steel
It is reported that recently, the 304 J1 stainless steel produced by TISCO Tian Pipe Company has been formally put into the domestic market and some TISCO agents have made orders in Wuxi, the first batch of the materials will arrive soon.
It is understand that the content of nickel in 304 J1 stainless steel is about 6.05% to 6.37% and the content of cooper in it is over 2.0%.
At present, the content of nickel in the authentic 304 J1 stainless steel is about 7.5%, some domestic steel plants re adjusted the composition ratio of NI and CU propriety increased the content of cooper and reduced the content of nickel, so it appeared low nickel stainless steel product.
Ningbo Baosteel Stainless Steel Processing Company starts
It is reported that Ningbo Baosteel Stainless Steel Processing Company which is established by Baosteel International and Ningbo Baoxin Company at present formally put into operation through one month construction.
Zhejiang region is the important domestic stainless steel market, it has Fangtai, Shuaikang and other well known home appliances and kitchen production enterprises, the demand for cold rolled stainless steel is about 120,000 tonnes.
Ningbo Baosteel Company is designed to process 50,000 tonnes of stainless steel plate every year, in addition to support service to Ningbo Baoxin Welded Pipe project, it also provide purchase, processing, logistics distribution, professional services to users.
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 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.
Cement crisis hits Bahrain construction industry - Report
Trade Arabia reported that Bahrain's construction industry plunged back into crisis as cement supplies from Saudi Arabia were halted and all big ready mix concrete plants were shut down for the second time in a week.
New Saudi rules had effectively halted exports to Bahrain, as importers could not complete the paperwork done in time. The rules required them to obtain complicated approvals from Riyadh before their cement trucks were allowed to return to Manama. They were originally due to be enforced from June 16th 2008 but were suddenly brought forward.
As per report, supplies had re started last Saturday after being suspended for three days, under new export rules imposed by Saudi Arabia. The Gulf Daily News had reported on Sunday that around 50 trucks of cement had been allowed into Bahrain, after authorities in Saudi Arabia intervened. More than 3,000 tonnes of cement had also arrived into the country by sea last Friday.
Construction industry sources said that they were stunned, after being assured the supply problems had been solved. They said that “We are not aware of what is going on or why the supplies have stopped. We were elated when they resumed and thought the problems were over.”
Mr Delmon Precast GM Jon Mottram said that “This is critical. We have had clients virtually camping on our doorsteps and we are unable to do anything. Our plant has been shut down and I see very little happening in the next few days. Even if supplies were to resume immediately, it would take a few days to get work back on track. The new procedures, we are told, are so complicated that supplies can never resume as they were earlier.” He added that some of the biggest developments in the country have been brought to a standstill, along with smaller projects.
Mr Haji Hassan Readymix GM Jorgen Skaarup said they resumed work for a day after supplies came in, but they were forced to shut again. He said that “We have no work and it is tough handling angry customers. We are told no one knows when supplies will resume. If it continues any longer, several massive construction projects will halt work completely.”
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 worlds 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.
GCC economy to exceed USD 1 trillion in 2008
Khaleej Times reported that net foreign assets of the Gulf Cooperation Council countries, steadily surging by more than USD 1 billion per day, are expected to double within three years to reach USD 3.5 trillion by the end of 2010.
Latest economic outlook given by Samba, a leading Saudi bank said that propelled by skyrocketing oil revenues, the GCC economy is set to surge past USD 1 trillion in nominal terms in 2008, marking a three fold increase in only five years. This will push the GCC economy past that of South Korea and put it on a par with India.
The report said that maintaining that the spectacular economic boom one that is expected to continue over the medium term. The report added that the real GDP growth, which is expected to reach 8.2% in 2008, has tended to fluctuate in line with oil output as four of the six GCC countries are members of OPEC.
The report said that "The contribution of the non oil sector has been more vigorous and more stable, and has been the engine of the current boom. Assuming non oil GDP growth this year of 8.5%, the five year average for the 2004-08 periods will be a robust 7.7%, a full percentage point higher than overall GDP growth.”
Samba in its report said that "The economic outlook for the region is positive. We anticipate further gains in global oil prices as strong demand continue to outstrip incremental additions to supply. Robust hydrocarbons earnings will underpin government investment and private confidence, while the latter will be further supported by continued economic liberalization. This should help to keep real GDP growth at around 8% over the medium term.”
However, the report noted that there are a number of risks and challenges for policy. Foremost among them are rising inflation, which will surpass 10% in 2008, related supply bottlenecks and constraints, and the uncertainties stemming from the recent turmoil in international financial markets as well as the weakening of the global economy. It said that "None of these is likely to derail the region’s economic prospects, but each could impair the business environment and act as a drag on growth."
An economic forecast said that the UAE and Saudi Arabia account for the bulk of these assets. While the aggregate GCC net foreign assets stood at an estimated USD 1.8 trillion at the end of 2007, they are expected to reach almost USD 2.2 trillion in 2008.
Oman inks Seeb wastewater project contract with Hyundai Rotem
Staff Reporter reported that Mr Abdullah bin Abbas bin Ahmed, chairman of the board of directors of Oman Wastewater Services Company signed Seeb Wastewater Treatment Plant contract with the Korean Hyundai Rotem Company.
Mr Omar bin Khalfan al Wahaibi CEO of Oman Wastewater Services Company said that this OMR 88.021 million project is part of the Seeb wastewater project. He added that the project’s scope includes the construction of a sewage treatment plant with a maximum capacity of 80,000m3/day.
Mr Khalfan al Wahaibi said that by the year 2020, the treated capacity is expected to reach 60,000m3/day and this will be increased to an ultimate capacity of 80,000m3 by 2030. The ancillary works include three main pump stations and two treated effluent storage facilities. The treatment process proposed in the contract is Sequence Batch Reactor and Ultra Filtration.
Mr Al Wahaibi added that the plant, which will be constructed in the south of Wadi al Manoma will be fully covered to ensure that bad odour does not pollute the outside air.
Mr Al Wahaibi said that the contract is the third of five contracts of Seeb Wastewater Project and the success of the project and the achievement of the set objectives will depend to a large extent on residents appreciating the nature of the project. Excavation work, road cutting and inconvenience are part of the nature of this project. Oman Wastewater Services Company will act to ensure that this message reaches all residents through a booklet explaining the different phases of the project. Moreover, leaflets will be distributed before each phase of work.
DP World wins Operator of the year award
It is reported that global marine terminal operator DP World has been awarded Port Authority & Terminal Operator of the Year at the second Annual Supply Chain & Transport Awards 2008.
The Port Authority & Terminal Operator of the Year Award is given to the port authority or terminal operator that has consistently delivered world class services and facilities across the Middle East in the past 12 months. The prestigious award was presented to DP World at a ceremony held at the Al Murooj Rotana in Dubai. The ceremony gathered over 200 top executives from the Middle East transportation and logistics industries.
Mr Dirk Van Den Bosch CCO for DP World’s UAE region accepting the award on behalf of DP World said that “We are delighted DP World has been recognized with this prestigious award. DP World’s commitment to quality and innovation across our Middle East and global operations is testament to our management and staff whose commitment allows us to provide our customers world class facilities and service.”
Mr Tariq Bin Khalifa UAE region’s commercial director of DP World added that “We continue to focus on being where our customers need us to be and our portfolio goes from strength to strength within the region and beyond. We have added DP World Sokhna in Egypt to our network this year and we are currently rolling out the second phase of terminal two at our flagship Jebel Ali facility. In addition, we are involved in the development of Khalifa Port at Taweelah in Abu Dhabi.”
Petronas may delay investment in Pars gas project in Iran
FNA reported that high development costs are forcing Malaysia's national oil firm Petronas to delay its final decision on investing in Iran's multi billion dollar Pars LNG project as the deadline looms.
According to Shana, Mr Hassan Marican CEO of Petronas is concerned about the viability of the facility due to inflation in the construction market.
Mohd Hassan Marican CEO of Petroliam Nasional Bhd told Reuters that costs have jumped, as the engineering and contracting sectors face constraints, while steel prices have surged. He said that "As a result of that, the economic and commercial model that was previously worked on does not make the project viable anymore.”
Asked if Petronas would even consider pulling out of the project, Mr Hassan said that "These take time. The discussions continue between our consortium and the host country to see how we can make this work.” He added that "It is very difficult to put a timeline. There are many parts of the equation that must be revisited before a final investment decision can be made, and this is not entirely dependent on us, it also involves the host government. All these things take time we have said we are continuing with the discussions."
Mr Hassan further added that the process must be fair to all parties. "We have to reach the end of the line before either one can move ahead or not move ahead. It's a continuing process of discussions.
The South Pars liquefied natural gas project was to supply two LNG trains of about 4.5 million tonnes a year, with Petronas holding a 20% stake along with National Iranian Oil Company 50%and France's Total 30%. The French oil giant also said last month that it could be difficult to reach an agreement to develop Phase 11 of the South Pars project in the short term, even though it reiterated its interest in the USD 11.2 billion project.
FLSmidth wins Egypt cement line expansion order
Reuters reported that Danish engineering group FLSmidth has won a large expansion project from Arabian Cement Company in Egypt worth EUR 63 million.
FLSmidth in a statement said that the contract is to supply engineering and equipment for a complete 6,000 tonnes per day cement production line, an expansion of an existing cement plant near Suez.
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.
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 tones.
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)
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.
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)
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 Shipbuilding 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.
Chinese CRC price keeps firm
It is reported that cold rolled steel coil prices are still moving up in China and export offers keep firm.
On Shanghai market price for 1.0 cold rolled sheet by Anshan steel is being offered at CNY 7450 per tonne to CNY 7480 per tonne, while that for 1.0mm CR coil by Maanshan steel is at CNY 7330 per tonne up by CNY 100 per tonne and CNY 80 per tonne respectively.
Mysteel forecasts, Shanghai price for 1.0 sheet by Anshan steel has reached the target of CNY 7400 per tonne to CNY 7500 per tonne and the next one probably will be CNY 7700 per tonne to CNY 7800 per tonne if it could go past CNY 7500 per tonne. Otherwise, we do not exclude the possibility of downward correction.
Export offer for 1.0mm CRC is prevailing at USD 1120 per tonne to USD 1130 per tonne FOB and some are tagging at higher level.
Mysteel said transaction for CRC exports are described to be satisfactory by traders and most go to Europe and South America.
(Sourced from MySteel.net)
China Shandong province increase power tariff
Reuters reported that China's Shandong province has raised the power tariff for industrial users during peak hours to 170% of the base tariff.
According to the report the eastern Chinese province, a heavy steel producing area, implemented the tariffs on June 10 as it confronts possible power shortages in the summer, when power demand is heaviest.
The Chinese government designated 10:30 to 11:30 AM and 7:00 to 9:00 PM as peak hours. Another two hours in the morning and four and a half hours in the evening have been designated as "busy hours", during which the power tariff has been raised to 160% of the base tariff up from 150% previously.
During hours of slack demand, from 11:00 PM until 7:00 AM, industry users need only pay 40% of the base tariff down from 50% previously.
Shaogang increases SBQ plate prices
It is reported that China’s Shaogang Iron and Steel Group has announced to increase its ship plate prices effective from June 11th
Shaogang Iron and Steel Group is boosting its ship plate by CNY 200 per tonne as the current price for CCSA shipping plate with thickness from 14mm to 20mm is about CNY 7,300 per tonne.
As per report prices for other products including medium plate, low alloy plate, boiler plate and vessel plate will be remained unchanged. Current price of Q235 medium plate with thickness 14mm~20mm is about CNY 6,650 per tonne.
Tangshan Steel adjusts construction steel prices
It is reported that new Tangshan Steel Group adjusts its latest prices for construction steel. The steelmaker cuts rebar price by CNY 200 per tone whilst maintains wire rod prices.
6.5mm high speed wire rod is now priced at CNY 5900 per tonne and HRB335 16mm to 25mm rebar is offered at CNY 5500 per tonne.
Prices listed above are inclusive of 17% VAT effective as of June 1st 2008.
(Sourced from MySteel.net)
Anshan steel hikes July prices
According to reliable industry source, Anshan Steel has adjusted EXW prices for July productions.
1. HR prices are hiked by CNY 400 per tonne
2. Common CR price are hiked by CNY 450 per tonne
3. Medium plate price are hiked by CNY 300 per tonne
4. Heavy plate price is hiked by CNY 500 per tonne
5. CNY 600 per tonne for wire rod, silicon steel and galvanized steel.
(Sourced from MySteel.net)
Wuhan Steel ink contract with Italian FATA
It is reported that Wuhan Iron and Steel Corp signed a contract valued over EUR 1 million with Italian FATA, International Economic & Trading Corporation Wisco, a subsidiary of Wugang. It is Wugang's first order for exporting large equipment.
FATA, a famous metallurgy company in the world is well known for producing and marketing aluminium alloy gravity die casting machine. Not long ago, it planned to purchase color coating furnace, a machine that produce color coated sheet across the world.
As per report, IETCW joined hand with Wuhan Wugang Beihu Mechanical Manufacturing Corporation in hard negotiating with FATA for over 3 months, and won the project in the end with advantages of reasonable price and advanced t