Mr Paswan lays foundation stone for SAIL mill at Hoshangabad

Mr Ram Vilas Paswan union steel minister said that Steel Authority of India Limited will set up 3 steel processing units in Madhya Pradesh to manufacture value added products.

While laying the foundation stone for SAIL’s third steel processing unit in India at Hoshangabad district of Madhya Pradesh, Mr Paswan announced that SAIL will open 2 more similar units in the state at Ujjain and Gwalior.

The Hoshangabad steel processing unit, which is being set up at an estimated cost of over INR 150 crore, is expected to commence production within 2 year timeframe. The unit would produce light and medium structurals, transmission line tower structures and TMT bars. Production facilities would include a 70,000 tonne per annum light and medium structural mill and de coiling, straightening and cutting facilities for TMT coils.

The unit would also have a service centre for TLT structures with galvanizing capacity of 30,000 tons per annum. The de coiling, straightening, cutting line and TLT finishing and galvanizing line would be installed in 13 months.

With this, the total number of steel processing units to be set up by SAIL across 6 states where it does not have a manufacturing base would go up to 10 from the previous 8.

Of the total steel processing units planned, construction of 2 is in progress at Bettiah and Vaishali districts of Bihar while foundation stone for another unit in Ujjain is to be laid.

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

Price in INR

Mumbai

Price in INR

Chennai

Mr Paswan to lay stone for SAIL rebar mill at Ujjain

BS reported that Mr Ram Vilas Paswan union minister for chemical, fertilizer & steel would inaugurate a steel processing unit of Steel Authority of India Limited in Ujjain on June 13th 2008.

Production capacity of the processing unit would be 100,000 tonnes of TMT bars per year.

Mr Subeer Kumar senior manager of SAIL has given the aforementioned information, while talking with media persons in a press conference. He said that apart from producing TMT bars, unit will also have various facilities including pusher type reheating furnace, mill trains, TMT line, cooling bed and the facility to cut bars in desired length.

Mr Kumar said that the cost of the total project would be around INR 88 crore. He also said that unit will be provided with ware housing facility and the entire project would be completed in 18 months and would require 38 acres of land.

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.

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.

JSW Steel inaugurates branded showroom in Ahmedabad

It is reported that JSW Steel has inaugurated new branded showroom, JSW Shoppe in Ahmedabad. This exclusive showroom is JSW’s first in Gujarat.

JSW Shoppe will have on display and sale all the products of JSW Steel ranging from hot rolled to color coated steels along with long products. It also aims to provide a unique experience of buying steel products through a branded distribution channel.

JSW already has such outlets at Hubli in Karnataka, Jaipur in Rajasthan and Kolhapur in Maharashtra. It plans to open around 25 such outlets in a short span and would subsequently have all India presence with over 600 branded outlets.

IFGL Refractories acquires German Hofmann Ceramic

IFGL Refractories announced that it has acquired 96.16% stake in Germany based Hofmann Ceramic GmbH and its subsidiaries for EUR 7 million through its UK based subsidiary Monocon International Refractories. The company has also bought 100% stake in Hofmann OHG of Germany

Hofmann entities are predominantly engaged in the manufacture of ceramic filters and refractories for the foundry industry with facilities in Germany and Czech Republic. The combined turnover of Hofmann entities is EUR 13.67 million.


IFGL said the company would retain their brand, “Hofmann Ceramic” and would be continued to be managed by existing MD Mr Hartmut Hofmann.

The acquisition would facilitate the company to enter the developed German market. Besides, it would enable IFGL and its subsidiaries in Brazil, China, the UK and USA, presently engaged in manufacturing of specialized refractories and operating systems for the producers of iron and steel, to diversify and serve the foundry industry.

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.

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 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.

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.

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.

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 times 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."

Inflation jumps to 8.24% in Indian Economy

Bloomberg reported that India's inflation jumped to 8.24%, the fastest since August 2004, adding pressure on the central bank to raise interest rates. As per report, wholesale price gains accelerated for a seventh straight week through May 24th 2008, after increasing 8.1% in the previous week. Analysts had forecast inflation at 8.29%.

Lehman Brothers Holdings, Standard Chartered Bank and ICICI Securities Limited expect the inflation rate to rise to a 13 year high of 9.5% after the government increased fuel costs this week. Prices are rising amid slowing economic growth, making it harder for central bank governor Mr Yaga Venugopal Reddy to decide whether to increase borrowing costs.

Mr Reddy said that prospects of more food output this year and curbs on farm exports will boost supplies and help tame inflation, playing down chances of higher interest rates. He added that the central bank is ready to use its full range of instruments to curb inflation.

Still, India's benchmark 10 year bond yield was unchanged at 8.23%, the highest in a year, after the inflation data. Inflation was mainly driven by higher costs of fuel, power and light, basic metals including steel and food grains in the week ended May 24th 2008.

India, which imports 70% of its oil, increased prices for gasoline by 11%, diesel by 9% and cooking gas by 17% after oil reached a record USD 135.09 a barrel in New York on May 22nd 2008. India previously raised fuel prices in February 2008, the first time since June 2006.

The changes in fuel prices announced on June 4th 2008 will be reflected in the inflation data due for release on June 20th 2008. The commerce ministry today raised its inflation estimate for the week ended March 29th 2008 to 7.75% from 7.41%.

TN government hopes to end NLC workers strike soon

PTI reported that, as the strike by about 13,000 Neyveli Lignite Corporation contract workers entered the 10th day, Mr N Veerasamy electricity minister of Tamil Nadu has exuded confidence that the stir would come to an end soon following talks between the centre and the union representatives at Delhi on June 13th 2008.

Mr Veerasamy said that following chief minister Mr M Karunanidhi's request, Dr Manmohan Singh and union coal ministry officials will be holding talks with trade union representatives on June 13th 2008 at Delhi.

He added that "Through the discussions a suitable solution is expected to be arrived at and we are hoping that the strike called by the workers will be withdrawn and the production of electricity resumed."

Jain Group to set up 1000 MW thermal power project in MP

It is reported that a MoU was inked between Mr Mannoj Kumar Jain CMD of Jain Group of Industries and Madhya Pradesh government for the implementation of a 1000 MW thermal power project. Jain Energy Limited will be executing the project which is likely to be commissioned in 2012.

Mr Jain said that "We are happy to announce our latest project in the power sector and we are thankful to the government of Madhya Pradesh for the cooperation extended. Developing this project and commissioning it within the agreed time period will be our primary focus now. We have set a target of setting up 5,000 MW power plants all over India in the next 5 years."

As per report, the 1000 MW coal based power unit will be coming up at Shadol district of Madhya Pradesh and will be spread over 1000 acres of land. The estimated investment in this project will be to the tune of INR 5000 crore and work on the project will commence from early 2009.

Jain Energy Limited is also setting up a 1000 MW coal based power plant in Chhattisgarh. The plant would be set up at Balpur of Janjgir Champa district. Additionally it is also in talks with governments of Orissa, Jharkhand and West Bengal for setting up similar projects in these states. Jain Energy has also given expression of interest for hydro power projects in Arunachal Pradesh and Bhutan.

Pipavav Shipyard keen to build patrol vessels for Indian Navy

Exim News Service reported that Pipavav Shipyard is registering with Indian Navy so that it can obtain orders to build offshore patrol vessels and other naval vessels.

While the Mumbai based Mazagon Dock builds submarines for Indian Navy in association with France, Larsen & Toubro proposes to build naval vessels at its proposed shipyard in Tamil Nadu.

An official at Pipavav Shipyard said that "We are looking at producing offshore patrol vessels for Indian Navy, which are less complex and less weapon oriented. As we gain experience in these things, we will look at more complex vessels."

A couple of months ago, Pipavav Shipyard had bagged an order to build 22 Panamax tankers, taking its order book to USD 1 billion. It is also eyeing sub contract deals for building rigs. It plans to collaborate with one of its stake holders Sembcorp Marine, which is a global marine, engineering and shipyard group.

Pipavav Shipyard proposes to bid for some projects in the offshore sector and hopes to get some subcontracting work from it and build up experience.

India reviewing new qualifying bid norms for infrastructure projects

Exim News Service reported that union finance ministry is holding talks with the shipping, road transport & highway ministry on the need to review the new model qualifying bid document, which allows only the top 5 or 6 players, based on maximum experience and net worth, to bid for infrastructure projects.

This formula had put domestic players in a disadvantageous position, as they are relatively new to the infrastructure sector in bidding for public private partnership projects in ports and highway sectors. Earlier, for such PPP projects, the technical qualification norms were based on turnover and experience and bids were invited from all players who met the specified norms.

But, the new model request for qualification for PPP projects firmed up a few months ago states that only up to 5 or 6 qualified applicants can be invited for participation in the financial bid stage. As the implementation of the new RFQ started for highway and port projects, several domestic firms, which did have experience in the infrastructure sector, or those eyeing the sector, wrote to the respective departments seeking changes in this norm.

The National Highways Builders Federation, a lobby body with membership from companies like Larsen & Toubro, Reliance Energy, Reliance Infrastructure, GMR, GVK and Unitech had even raised the issue with the Prime Minister.

Discussions between the finance ministry and the department of roads have already been held on the issue and another meeting is likely to be held soon with the department of shipping. However, the shipping ministry has decided not to delay the ongoing projects even as the review is on.

BHEL places first commercial order to BHPV

Livemint.com reported that, after formally taking over Bharat Heavy Plate & Vessels in May 2008, Bharat Heavy Electricals Limited has placed the first commercial order to BHPV. The order includes manufacture and supply of 680 million tonnes of boiler components such as drums, headers, riser tubes, panels, coils and piping products.

Considering BHPV's working capital condition, BHEL has issued raw material for the above order free of cost and the first batch of raw material has already reached the place of work.

BHPV is being developed as a dedicated centre for industrial boilers, ensuring better delivery. The current cost structure of BHPV is similar to BHEL but is expected to come down due to factors like increased volumes, better financial capability leading to lower working capital borrowing costs, etc.

BHPV's turnover is expected to cross INR 1,000 crore in 5 years and it plans a capital expenditure of INR 236 crore in 3 years.

Electricity generation from NLC set to increase

BL reported that, even as the non permanent workers’ strike continues, electricity generation at Neyveli Lignite Corporation is likely to inch up to near normalcy levels, thanks to the corporation’s mobilizing workforce from outside.

On a normal day, NLC will produce 48.8 million units of electricity. However, after the casual workers struck work, demanding to be made permanent staff, generation has been coming down steadily. On June 1st 2008, generation was 39 million units, which steadily kept declining day after day to reach only 19 million units on June 10th 2008.

However, a senior source in NLC explained that on the third day of the strike, a conveyor belt carrying lignite to the boilers developed a snag and there were no workers to repair it. NLC has since brought in some workers from the neighboring villages and the belt has been repaired. Generation therefore is set to rise.

However, the source said that electricity production may to up to only around 35 million units. To raise it further, more people are being mobilized. The source said that if NLC could get another 800 odd workers, the corporation would function to full capacity.

NLC has on its rolls 19,000 permanent staff and another 12,000 contract laborers. It needs no more than 14,000 of the permanent staff and about 2,000 of the casual laborers. Operating to full capacity with thin strength of casual workers would starkly slow the surplus.

As regards the surplus permanent staff, sources said that there was ample scope for deploying them at NLC’s upcoming projects, particularly those coming in the neighboring areas of Tuticorin and Jayamkondan.

SCI announces 2007-08 results

Shipping Corporation of India has reported a nearly 13% YoY drop in net profit for January to March 2008 quarter at INR 248.69 crore as against INR 284.65 crore for January to March 2007 quarter. Total income stood at INR 1,177.44 crore up by 8.9% YoY as against INR 1,080.56 crore.

For the year ended March 31st 2008, its net profit stood at INR 813.90 crore down by 19.7% YoY as against INR 1,014.58 crore in the year ended March 31st 2007. Income was INR 4,084.36 crore down by 2.9% YoY as against INR 4,210.36 crore.

Kochi Port forms panel to study and improve competitiveness

BL reported that Kochi Port has constituted a committee to study and compare the rates including overhead charges prevailing at the neighboring ports in Tuticorin and New Mangalore ports. The committee comprising Trustees and port officials will also offer recommendations to improve the competitiveness of the port.

The formation of the committee comes in the wake of a comprehensive study, which pointed out that the port did not enjoy a competitive advantage vis a vis other south Indian major ports on cost or service parameters.

The board of trustees, which met recently, pointed out those critical deficiencies such as storage constraints, poor quality of services should be addressed and corrective measures initiated to regain competitive advantage for the port. The board also resolved to implement the proposal for reduction of 30% on wharfage of coal and iron ore pellets, and reduction of 40% on wharfage on iron & steel scrap, gypsum and limestone on an experimental basis for a period of 3 months.

The board members were of the view that the port should go for aggressive marketing strategies to make competitive advantage among other ports and it should ensure that the benefits of tariff reduction should reach the targeted customers. Besides, the enhancement of storage area should be given priority by the port administration.

The members pointed out that the port should also improve its infrastructure substantially to enhance the cargo throughput, as high cost is one of the major components that resulted in exorbitant transportation cost incurred for movement of cargo from the port.

PSL secures mega order for pipes from GAIL

Pipe maker PSL Limited recently announced that it has been awarded its 5th consecutive order from GAIL India Limited for supplying large diameter coated line pipes valued at INR 1,928 crore to be utilized for the Vijaipur Dadri Bawana Pipeline. With the present order in hand, PSL’s consolidated unexecuted order book now stands in excess of INR 6,000 crore, with a substantial portion secured over the course of the past one month.

PSL shall be manufacturing and coating large diameter helical steel pipes, varying in size from 20 inches to 48 inches and totaling 470 kilometers in length, in accordance with GAIL’s detailed technical specifications. The production against this order is expected to commence in July 2008 and is to be completed within the coming financial year. PSL’s Varsana facilities will be fulfilling the entire requirement of the order and are fully geared to meet this upcoming demand.

Mr Ashok Punj MD of PSL Limited said that "With this recent order, PSL has secured a major chunk of the Indian gas pipelines under construction, demonstrating its ability to successfully compete with both domestic and international companies in terms of quality, timeliness and cost." He added that it has a high level of HSAW pipe capacity preparedness as it believes that this will be a key strategic advantage and a major performance driver over the long term.

PSL is now in a position to execute both the recently secured HPCL Mittal Pipeline order totaling over INR 900 crore, along with the newly announced GAIL order from its plant at Kandla. Both the GAIL and HPCL Mittal orders were keenly contested global tenders, with participation from Indian and Chinese companies among other international pipe manufacturers.

Police recovers 100 cannon shells from scrap in TN

PTI reported that Tamil Nadu Police has unearthed 100 cannon shells from the compound of a scrap melting unit in the campus of state owned State Industries Promotion Corporation of Tamil Nadu Limited at Gummidipoondi and arrested two persons, including its owner. However, police ruled out any extremist link to the ammunition which has been seized in the last 3 days.

The cannon shells, totally weighing 750 kilograms, were recovered from the compound of Vinayaga Alloys Private Limited during continuing searches in the campus launched after two Sri Lankan Tamil refugees were injured in a minor explosion on June 7th 2008.

Meanwhile, state police headquarters in a release said that all the ammunition so far recovered dated back to 1917 to 1967 and were not made in the country. It said since investigations showed that the ammunition was only scrap having been used several years back, there was no scope for linking the seizure to any extremists.

It was found during investigations that 14 steel units in the SIPCOT campus were involved in procuring iron scrap materials from foreign countries for recycling into iron rods and one of them would have dumped the used ammunition as these could not be recycled.

Visa Steel posts records growth in coke and ferroalloy production

Orissa based Visa Steel Limited has posted impressive growth in coke production and ferroalloy production in January to March 2008 quarter and will set up a special stainless steel plant is due for commissioning by 2010.

Visa Steel Limited has registered excellent growth with revenue increasing by 85% YoY to INR 2.6 billion, operating margins rose by 17.8% YoY while net profits surged by 30% YoY to INR 210 million in January to March 2008 quarter. The key attribute to this robust performance was overall buoyancy in realizations being witnessed in the commodities.

Coke production witnessed a staggering 90% YoY growth to 60,000 tonnes in January to March 2008 quarter. Gradual ramp up of ferro alloy facility post commissioning in November 2007 drove ferro alloy production to 10,300 tonnes in January to March 2008 quarter. Sales volumes for the former stood at 56,000 tonnes while the latter clocked sales volumes of 5,400 tonnes. Hot metal production is not comparable as VSL undertook a shutdown for maintenance purposes.

VSL has suffered losses of INR 24 million due to foreign exchange fluctuations which are reflected in other income. Interest and depreciation rose due to capitalization of the ferrochrome facilities to INR 54 million and INR 59 million.

Visa Steel presently manufactures pig iron, ferro chrome and coke and once the steel plant is commissioned the products will be utilized for captive consumption. It is also setting up a 300,000 tonnes per annum DRI plant and 75 MW captive power plant which are expected to go on stream in first quarter of 2009.

TATA Agrico in tie up with TATA BP Solar

TATA Steel’s subsidiary TATA Agrico has entered into an agreement with TATA BP Solar for distributing solar products of in the rural hinterland of India. This initiative is primarily aimed at targeting consumers who are deprived of regular electricity supplies owing to poor infrastructure.

TATA Agrico would be leveraging its extensive distribution network in the country to promote the solar products of TATA BP. Both the companies would primarily focus on products such as solar lanterns, street lights and water heating systems.

The companies see a huge potential in both rural and semi urban markets and have decided to start this partnership from Bihar in June 2008, which will be followed by a nation wide roll out.

Subhkam Ventures increases stake in Shakti Pumps to 12.05%

Private equity player Subhkam Ventures has increased its stake in Shakti Pumps (India) Limited to 12.05%. The mode of increase in holding is by way conversion of warrants allotted to Subhkam Ventures on preferential basis.

Subhkam Ventures has 2 state of the art facilities in Indore. Based on its superior quality, Shakti Pumps has been able to successfully compete with world leader Grundfos in the major international markets. The pumps of the company are almost 30% more energy efficient than other pumps in the market. The efficiency of Shakti Pumps has been certified by various state agencies in India.

Mr Manu Punnoose director & CEO of Subhkam Ventures said that "Shakti Pumps (India) Limited has demonstrated its products' superiority and credentials and is successfully competing with the world largest player Grundfos in the export market. This is quite evident from the fact that its sales predominantly comes from exports. Backed by a range of quality products, it is poised to improve its performance substantially in the years ahead. The most striking feature of its product line is its energy efficiency of over 30 per cent over other competing products."

Subhkam Ventures follows its accounting year ending on June 30th 2008 and it is expected to close 2007-08 fiscal with turnover of over INR 100 crore. It caters to both the domestic as well as export market. Lately, it has increased its production capacity substantially and is set to increase its turnover significantly in the near future. Buoyed by the success of its pumps in the market, the Company has major plans to ramp up its distribution network in India ands across the world.

Nucor to acquire Ambassador Steel Corporation

Nucor Corporation announced that its wholly owned subsidiary, Harris Steel Inc has signed a Purchase Agreement to acquire all of the issued and outstanding common shares of Ambassador Steel Corporation based at Auburn in Indiana for a cash purchase price of approximately USD 185,000,000. The transaction will also include the shares of Ambassador's affiliate, Delta Erecting Inc.

Nucor said that the completion of the acquisition is contingent upon receipt of regulatory approvals, satisfactory completion of due diligence, and fulfillment of other customary closing conditions. The transaction is expected to close during the third quarter of 2008.

Ambassador is a fabricator and distributor of concrete reinforcing steel and related products. Founded in 1974, Ambassador has grown to be one of the largest independent fabricators and distributors of rebar in the United States. In 2007, Ambassador shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel.

Mr Daniel R DiMicco chairman, CEO & president of Nucor said that “The acquisition of Ambassador continues Nucor's downstream growth initiatives and is an opportunity to enhance Nucor's national footprint in the rebar fabrication market. We are looking forward to adding the Ambassador team to the Nucor and Harris family."

Esmark rejects Severstal offer in favor of Essar bid

Esmark Inc has rejected OAO Severstal's USD 17 per share unsolicited cash offer, calling the bid inadequate in a number of respects and contrary to the best interests of its shareholders.

Esmark said that its recommendation are based, in part, on Essar Steel Holding Ltd's announcement it planned to raise its buyout offer to USD 19 a share upon execution of the deal.

Mr James Bouchard chairman & CEO of Esmark said "We continue to invite bidders, including Severstal, to provide a superior proposal to that of Essar. To date, Essar has stepped up to the plate for our stockholders first in providing financing to the company at a critical time and now by announcing that it will increase its offer to USD 19 per share."

Mr Bouchard also noted Essar has committed to providing more than USD 500 million of capital investment in the Ohio Valley.

Even before raising its bid, Essar had extended a $110 million loan to Esmark to avoid a potential default. It also announced Wednesday it would invest USD 525 million in capital improvements in Esmark's Ohio and West Virginia plants over the next five years.

Both Essar and Severstal claim they are best-positioned to create value for Esmark shareholders and secure a stable future for the mills. Esmark has operations in 20 states, including subsidiary Wheeling-Pitt plants in West Virginia, Ohio and Pennsylvania, and a plant in Greensville County, Virginia. Both bidders also have agreed to assume USD 400 million in debt. Esmark has filed a grievance against the USW over its opposition to the Essar deal.

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."

BDI sees record decline as port congestion eases

Bloomberg reported that the BDI a measure of shipping costs for commodities posted a record decline as port congestion in Australia and China eased and on speculation China may buy less iron ore.

According to the Baltic Exchange in London, the index tracking transport costs on international trade routes dropped by 963 points or 8.7% to 10,142 points. Rates for Capesize vessels that typically haul iron ore for making steel dropped by 16% to USD 180,237 a day.

Mr Peter Norfolk a London based shipping analyst at Simpson, Spence & Young Ltd said that “There's potential for slowing iron ore buying in China after the nation's stockpiles rose to a record.” He added that “We have seen signs of port congestion coming down in China and Australia.''

USW terms Esmark allegations as ludicrous

The United Steelworkers dismissed claims by Esmark Inc that the union violated federal labor law in regard to discussions the union has had with Essar Steel Holdings Ltd and Severstal, currently in a bidding war with each other over Esmark.

It said that "Esmark's contention that the union has invoked its contractual successor ship protection to interfere with the proposed transaction between Esmark and Essar is ludicrous.”

The release added that "Craig Bouchard's allegations are a pathetic attempt to drag his loyal employees down with him as his business plan fails, even while the rest of the domestic steel industry enjoys a historic surge. It is absurd to hear the Bouchards talk about the Steelworkers illegally standing in the way of maximizing shareholder value when they have driven the company into the ground in the hottest steel market in the history of the world."

The USW said that Esmark has refused to provide information that the union considers necessary to enforce the contractual obligations that protect its members in the event of a proposed sale and has frustrated the USW's discussions with both Essar and Severstal. The union reiterated that Esmark has violated the legal and contractual protections by entering into the agreement with Essar and closing on related financing without first providing the Steelworkers with appropriate notice and an opportunity to bring forward an alternative proposal.

It added that "Without the hard work and sacrifices of USW members through many years, there would not even be a company to sell. The outsiders who run Esmark have failed these employees by every meaningful and measurable standard, while lining their own pockets and flying in private jets at the expense of both USW members and shareholders. Now, less than two years after USW members helped Esmark gain control of Wheeling Pitt by invoking their successor ship rights, Esmark is seeking to deprive them of those very same rights."

The USW represents 850,000 workers in the United States and Canada employed in the metals, rubber, chemicals, paper, oil refining and other industries as well as the service and public sectors, including over 3,000 hourly production and maintenance employees at Wheeling Pitt facilities in Ohio, Pennsylvania and West Virginia.

POSCO orders a new 5.5 meter wide plate mill

South Korea POSCO has awarded SMS Demag AG a contract for the supply of a 5.5 meter X Roll® heavy plate rolling mill. With its annual production of more than 3.5 million tonne, POSCO is one of the world's leading producers of heavy plates and with its new facility intends to serve mainly the growing market for high-strength plates.

The new mill will be set up in Gwangyang on the Korean south coast and will start operations in mid-2010. It is rated for the production of plates which are 6 to 200 mm thick and between 900 and 5,400 mm wide. The annual production in the first stage of construction will amount to 2 million tonnes of finished plates.

SMS Demag supply scope includes the high pressure descaler, roughing stand with flanged on vertical edger, finishing stand, plate cooling system with pre leveler, hot plate leveler, shear line and cold plate leveler.

1. The roughing and finishing stands each have a rolling force of 120 MN and thus rank among the world's most powerful mill stands.

2. In the area of plate cooling, it will set up a spray cooling system according to the SMS Demag developed concept which features pinch rolls and a pre leveler in the entry area.

3. The shear line will consist of a crop shear, double side trimmer, slitting and cross cut shears. All shears operate to the rolling cut principle, cutting high strength plates which are up to 50 mm thick.

4. It will supply a hot plate leveler plus a cold plate leveler in 9/5 design with an extended leveling range, thus ensuring excellent plate flatness.

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."

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)

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.

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.”

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.”

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.

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.

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.

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.”

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.

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)

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.

German steel output seen constant in 2009 - Federation

According to the head of the Germany’s steel federation, German crude steel output should hold steady at around 48.5 million tonnes in 2008 and next.

Mr Hans Juergen Kerkhoff told Reuters in an interview that "In terms of crude steel production, we expect output to be almost unchanged at some 48.5 million tonnes in 2008.”

He added that output in 2009 would likely remain constant at this year's level.

Mr Kerkhoff said that “Surging oil prices were only having a limited direct impact on steel firms in Germany. But there are significant indirect effects, such as via the coupling of gas prices to oil prices.”

Mr Kerkhoff added that "The steel industry uses significant quantities of natural gas in hot rolling mills. And the rising cost of acquiring oil and gas is also having the effect of pushing up prices on other areas and services like transport.”

Mr Kerkhoff noted that the price of scrap steel in Germany had nearly doubled since the end of last year to over EUR 400 per tonne closely mirroring developments abroad. He said that "Market observers are sceptical about whether we've already reached a peak in scrap prices.”

Higher ferrous scrap price in Osaka

JMB reported that ferrous scrap market price increases again around Osaka after the slump due to flat purchase price by Tokyo Steel Manufacturing.

The demand is expected to keep firm in June and electric furnace steel makers increase purchase price.

Grupo Mexico offers plans to pay off Asarco claims

Reuters reported that Grupo Mexico would put forward up to USD 4.1 billion to payoff claims against its bankrupt copper mining subsidiary Asarco LLC.

Under the proposal made by a Grupo Mexico attorney in federal bankruptcy court at Corpus Christi in Texas, the company would put up USD 2.7 billion, use USD 1 billion Asarco has on hand and then put in a further USD 440 million, if needed.

An Asarco board member said that he would ask the full board to evaluate the new proposal. The proposal puts numbers on what Grupo Mexico's promises for a full recovery for environmental and creditor claims against its indirect subsidiary Asarco.

The proposal could exceed by USD 500 million the USD 2.6 billion winning bid placed on May 30 by Sterlite Industries Ltd an affiliate of London listed Vedanta Resources Plc for Asarco's working assets.

Asarco board member Mr H Malcolm Lovett Jr said the directors needed to evaluate Grupo Mexico's proposal. He said that "I think it is important we have a board meeting and have our advisers discuss this.”

Mr Richard Schmidt federal bankruptcy Judge said that it is considering whether to authorize a USD 52 million breakup fee Sterlite wants available before it spends up to seven months hammering out a buyout of Asarco's assets.

Grupo Mexico opposes the breakup fee as it battles to win control of it subsidiary, which it lost board control over when the copper miner filed for bankruptcy in 2005.

Brazilian slab exports in 5 months up by 62% YoY

According to the Brazilian ministry of foreign trade data, Brazilian slab exports rose by 62% YoY to 2 million tonnes in January to May 2008 as compared to January to May 2007

The foreign trade data showed that Brazil exported around 352,000 tonnes in May 2008. Thailand is the first biggest destination with around 72,000 tonnes and shipments to South Korea were some 70,000 tonnes.

(Sourced from YIEH.com)

South Korean import prices of plat and rebar rise

Chinese carbon steel plate and rebar prices continue to rise.

As per report Tianjin Steel has offered its heavy plate price at USD 1,165 per tonne for August shipment to South Korea. Meanwhile, the quote price of ship plate has smashed over USD 1,300 per tonne.

In addition, the import price of rebar has broken a barrier of USD 1,000 per tonne. It is expected that the price in September will soar higher due to a combination of tight supply and strong demand.

(Sourced from YIEH.com)

Maersk to acquire Teekay Corporation

Teekay Corporation and AP Møller Maersk announced an agreement whereby AP Moller Maersk has agreed to acquire Teekay Corporation's 50% share in Swift Tankers Management. This includes taking over Teekay Corporation's portfolio of 13 intermediate vessels all of which are time chartered from a number of owners and thereby taking over Teekay Corporation's activities in the Intermediates market.

Swift Tankers operates 24 intermediate product and chemical tankers, from its primary location in Copenhagen as well as a subsidiary office at Stavanger in Norway.

Mr Kristian V Morch group senior vice president of A P Moller Maersk said that "In the day to day operations there will be no changes to our customers and we look forward to continuing to service the markets with attention on a safe and reliable performance."

Mr Bruce Chan president of Teekay Tanker Services said that 'We are pleased to see that Swift Tankers has got off to a good start. We have however decided to move our focus away from the intermediate segment to fully concentrate on Teekay's core activities within the larger products and crude tanker markets.”

The transaction, which is subject to regulatory approvals will be effective as of July 1st 2008.

Barge recovery operations begin on Ohio River

Business First of Louisville reported that representatives of River Salvage Co Inc have begun the process of recovering two Ingram barges that sank last Friday in the Ohio River near downtown Louisville.

As per report about 7 AM Thursday, the Crescent based company initiated efforts to raise the barges, which were carrying iron ore. They sank to the bottom of the river after breaking loose from their rigging.

Coast Guard Lt jg John Adkins said that the Coast Guard is continuing to investigate the cause of the wreck. Mr Adkins added that the Ohio River near Louisville will remain open during the recovery process although it might be necessary to halt river traffic at different intervals.

Mr W Scott Noble senior vice president of shore based operations and service for Nashville in Tennessee based Ingram Barge Co said that the depth of the water and speed the barges were traveling might have been factors in the accident.

Japanese merchant bar shipments to drop

According to the Non Integrated Steel Producers Association, Japanese merchant bar shipments are expected to reach 8.53 million tonnes in 2008 down by 18.6% YoY.

The Association said that for the usage of construction, the output is expected to be 6.55 million tonnes down by 21.8% YoY. It added that for public projects usage, the output is expected to total 1.50 million tonnes down by 4% YoY.

(Sourced from YIEH.com)

Global crude oil production dropped in 2007 - BP Plc

BP Plc in its annual Statistical Review of World Energy said that global oil production fell for the first time in five years in 2007 and reserves also declined as prices rose to records.

BP Plc said that production of crude oil dropped 0.2% to 81.533 million barrels a day last year from 81.659 million barrels a day in 2006. Proved reserves were 1,237.9 billion barrels at the end of 2007 compared with a revised total of 1,239.5 billion barrels for 2006.

It said that crude oil prices have doubled in the last year as demand from China and India jumped and global production stagnated. That's fanning inflation and slowing global economic growth as manufacturers pass on higher costs and consumers are forced to spend more on fuel.

Mr Tony Hayward CEO of BP Plc said that “The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand. These have put issues such as energy security and alternative energies at the forefront of the political agenda worldwide.''

According to BP data, oil reached a record USD 139.12 on June 6 in New York and prices have been rising for more than six years, the longest period on record.

Flagging supply from regions including the North Sea and Mexico has lent support to the theory that world oil output has peaked, a view held by analysts including Mr Matthew Simmons chairman of investment bank Simmons & Co International and investor Boone Pickens of Dallas based BP Capital LLC. Others, including BP's Hayward have said production will keep rising.

BP's review said that global oil consumption rose by 1.1% to 85.22 million barrels a day last year. In China, the world's second largest consumer, demand rose 4.1% to 7.855 million barrels a day.

CAP submits EIS for 300MW power plant in region IV - Report

BNamericas reported that Chilean integrated iron and steel group CAP submitted an EIS to environmental authorities for a USD 460 million project to build a 300MW thermoelectric plant in region IV.

CAP in a report to environmental regulator Conama statement said that the plant is to be located in the community of La Higuera and will be connected to Chile's central grid. CAP also said the plant would have two turbine generators each with a 150MW capacity.

The group's iron ore division, CMP has assets in region IV. The division supplies CAP's steelmaking and sold 1.67 million tonne of iron ore in this year's first quarter up by 21% YoY

CAP's steel sales, from the Huachipato plant in region VIII, totaled 352,656 tonnes in Q1 for up by 17.2% YoY. As a group CAP generated USD 61.3 million in profit for Q1.

US DOC completes AD review on HR from Thailand

The Department of Commerce has conducted an administrative review of the antidumping duty order on certain hot rolled carbon steel flat products from Thailand produced and or exported by G Steel Public Company Limited. The period of review is November 1st 2005 through October 31st 2006.

The Commerce department said that based on our analysis of comments received, we have made certain adjustments and clerical error corrections for these final results which change the margin. This administrative review also covers Nakornthai Strip Mill Public Co Ltd an exporter that did not have any US sales or shipments during the period of review and for which the Department is rescinding this review.

The products covered by this antidumping duty order are certain hot rolled carbon steel flat products of a rectangular shape, of a width of 0.5 inch or greater, neither clad, plated, nor coated with metal and whether or not painted, varnished or coated with plastics or other non metallic substances, in coils (whether or not in successively superimposed layers), regardless of thickness, and in straight lengths, of a thickness of less than 4.75 mm and of a width measuring at least 10 times the thickness. Universal mill plate (ie flat rolled products rolled on four faces or in a closed box pass, of a width exceeding 150 mm, but not exceeding 1250 mm and of a thickness of not less than 4.0 mm not in coils and without patterns in relief) of a thickness not less than 4.0 mm is not included within the scope of this order.

Brazil fines 60 steel companies on environmental issues

AP reported that Brazil is imposing USD 250 million in fines on steel companies caught using charcoal made from illegally logged forests.

Mr Carlos Minc the environment minister of Brazil said that 60 steel companies in three states face BRR 414 million (USD 250 million) in fines and must replant about 27,181 acres of forest for using the illegal coal. He added that charcoal companies would be fined a total of BRR 70 million (USD 43 million).

Brazil has very few coal mines and demand for wood based charcoal for use in steel mills is a major driver of deforestation in the Amazon and other regions. In this case, the illegal charcoal came from the Cerrado a savanna like ecosystem that occupies much of central Brazil and the Pantanal a huge wetlands that extends into Bolivia.

Mr Minc said that "I am amazed at the creativity of these people when it comes to environmental crimes. If we don't open our eyes, the Cerrado and the Pantanal will be converted into charcoal.”

He added that Brazilian law requires that wood for charcoal come from planted forests devoted to the sustainable production of coal and prohibits the destruction of native forests.

The highest fines were imposed on Siderugica Alterosa, Siderugica Alamo, Sicafe Produtos Siderugica, Vetorial Siderugica and MMX Metalicos Corubma.

MMX was fined earlier this year for using illegal charcoal but continues to operate under a court injunction. No one at MMX was immediately available to comment on the fines.

RAW

Saudi contractors expect an end to shortage of steel

Arab News reported that Saudi Arabia’s contracting sector hopes that the current shortage of iron, steel, and cement would disappear shortly and their prices would be steadied as a result of the steps taken recently by the government.

The steps include stringent checks on the export of iron, steel and cement. Another significant step taken to contain the situation is Saudi Basic Industries Corporation’s decision to suspend export of iron and steel besides importing them in quantities sufficient to cover the local requirements.

The ministry of commerce has laid down several conditions on exporters to guarantee that they do not involve in any foul play. The exporters should give all the details about their export such as the source of the goods, destination and the contract with the buyers. The permits for the export of iron and cement would be issued only after ensuring that local requirement has been supplied.

Mr Abdullah Ammar chairman of the National Contractors Committee said that Saudi government has the authority to regulate the export of iron because the manufacturing country has the first right for its products.

Pakistani imposes 25% export tax on steel and metals

Daily Times reported that Pakistan’s federal board revenue has imposed 25% regulatory duty on the exports ferrous and non ferrous, to enable the local steel industry to get cheaper raw materials.

According to SRO 482(I)/2007 issued, regulatory duty would be applicable on the export ferrous waste and scrap, re melting scrap ingots iron or steel, waste and scrap copper, nickel, aluminum, lead, zinc, tin, tungsten, molybdenum, tantalum, magnesium, cobalt, bismuth, cadmium, titanium, zirconium, antimony, manganese, beryllium, chromium, thallium, germanium, vanadium, gallium, hafnium, indium, niobium and rhenium, cermets.

Semi finished products iron or non alloy steel, other bars and rods iron or non alloy steel, not further worked than forged, hot rolled, hot drawn or hot extruded, but including those twisted after rolling. Other bars and rods iron or non alloy steel. Angles, shapes and section iron or non alloy steel. Stainless steel in ingots or other primary forms semi finished products stainless steel. Bars and rods, hot rolled, in irregularly wound coils, stainless steel. Other bars and rods stainless steel; angles, shapes and sections stainless steel.

Other alloy steel in ingots or other primary forms, semi finished products other alloy steel. Bars and rods, hot rolled, in irregularly wound coils, other alloy steel. Other bars and rods other alloy steel; angles, shapes and sections, other alloy steel; hollow drill bars and rods, alloy or non alloy steel. Refined copper and copper alloys, unwrought.

ADBIC to launch metal park in Al Taweelah

Gulf News reported that Abu Dhabi Basic Industries Corporation is planning to launch a metal park in Al Taweelah. This will be the second industrial cluster in the emirate following the Polymer Park and focus on aluminum, steel and copper.

The metal park will be located in Al Taweelah, where Emirates Aluminum is being established to become the largest smelter worldwide. The second phase of Emirates Steel's expansion will also be located in Al Taweelah.

Dr Jim White COO of ADBIC said that "For the time being we are still working on the feasibility studies for the Metal Park, and we are talking to major JVs to invest in Al Taweelah."

Mr White added that "Our steel production capacity this year has doubled compared to last year. We have recently awarded contracts for the Al Taweelah plant, totaling our investments in construction and contractual commitments to USD 2.5 billion. The third metal comprising the metal park is copper. Right now we are at the very early stages in relation to copper, as we are still commissioning feasibility studies."

Emirates Steel's existing factory produces about 1.2 to 1.3 million tonnes of steel annually. Its output is expected to reach 1.5 million tonnes soon. The targeted full capacity has been set at four million tonnes annually by 2010.

Iranian President inspects steel plant project

IRNA reported that Mr Mahmud Ahmadinezhad President of Iran has visited a steel plant project at Sefid Dasht city in Chahar Mahal e Bakhtiari province on June 11th 2008.

As per report, after inspecting the large industrial project and getting acquainted with construction process of the steel plant, Mr Ahmadinezhad underlined the necessity of speeding up implementation of the project.

During the visit, officials in charge of implementing the 400,000 tons steel plant project in Sefid Dasht briefed the president on the progress of the project.

Sohar Aluminum produces its first hot metal

Gulf News reported that the USD 2.4 billion project of Sohar Aluminum Company has commenced production at its Sohar location. It successfully produced the first hot metal at its state of the art facility on schedule and after 3 years of meticulous construction and planning. This milestone marks the beginning of the smelter's production, which will reach full capacity in December 2008.

Mr Tony Kinsman CEO of Sohar Aluminum said that "This is a very proud moment for everyone at Sohar Aluminum, from the shareholders and management team to all operators, maintainers and support staff. It is tangible evidence that even with a new young local workforce, Oman can provide the necessary ingredients for new international enterprises to set up and be of ongoing benefit to the greater population for years to come."

Mr Ahmad Al Wahaibi chairman of Sohar Aluminum said that "We have all admired the perseverance of the operations teams having to prepare for start up under difficult conditions, and this makes the hot metal achievement even more special, thanks to their dedication to getting the job done. Of course, the first ingot is just the beginning. The objective now is a smooth, safe and sustainable start-up. Sohar Aluminum has demonstrated an excellent safety record to date and we must do our utmost to ensure that continues."

Located around 12 kilometers from the industrial port of Sohar, the smelter consists of a single 360 pot aluminum smelter pot line with a capacity of approximately 350,000 tonnes ax year. When complete, the pot line will be the largest single pot line in the world.

Omaxe Limited forays into Dubai market

Real estate company Omaxe has recently announced its foray into Dubai market through its wholly owned new subsidiary Rohtas Holdings (Gulf) Limited.

Mr Rohtas Goel CMD of Omaxe Limited said that "The subsidiary has also ventured, by way of acquisition or JV through special purpose vehicles, into construction of two residential projects entailing total cost of INR 2,850 crore. Our two projects in Dubai will provide our consumers a new option and to all others an investment opportunity in Dubai."

ADNOC to spend USD 10 billion for Shah Deniz gas field

Gulf Daily reported that Abu Dhabi National Oil Company is planning to announce a USD 10 billion contract to treat sour gas in the Shah Deniz field in Azerbaijan.

ADNOC wants to secure enough natural resources for its diversification programs in aluminum, steel and petrochemicals.

Mr Abdullah Saeed Al Darmaki VP of ADNOC said that "With the advances in technology, together with the increasing international energy prices, it has become more feasible to treat Abu Dhabi's sour gas reserves."

As per report, with an estimate 200 trillion cubic feet of gas and daily production totals of around 5 billion cubic feet, the emirate hopes to expand its daily production with the Shah Deniz field to 10 billion cubic feet per day.

Several other oil and natural gas companies put forth bids on the project, including ConocoPhillips.

UAE cement firms expected to perform well in 2008 and 2009

MEED reported that cement firms in United Arab Emirates are expected to perform well in 2008 and 2009 because of the number of infrastructure and real estate projects that are under way or have been announced. As per report, the building boom in the emirates, particularly in Dubai and Ras Al Khaimah, will ensure a sustained growth in future revenues.

Going forward, it is expected that demand for cement will increase by 2011 as firms and governments utilize their capital to fund construction projects.

In UAE, cement prices have risen on account of the real estate boom and the ministry of economy has signed an agreement with the cement factories and producers group to increase production and cap the price of cement in an attempt to control domestic inflation.

Union Cement considering using coal as fuel

Khaleej Times reported that UAE based Union Cement Company is considering using coal to fire one of its kilns instead of natural gas or heavy fuel.

Union Cement confirmed that its board had approved presenting a feasibility study on the switch of one of its kilns.

It may be noted that cement makers in UAE are turning to imported coal as gas is scarce and demand for cement remains high as the building boom continues.

Pakistan Workers Union wins PS referendum

The News reported that Pakistan People’s Party backed Pakistan Steel People’s Workers Union, also known as Pakistan Workers Union, has scored a clear victory in the referendum for the Pakistan Steel’s collective bargaining agent. The referendum was held on June 12th 2008 for the first time in 11 years.

As per report, the contest for collective bargaining agent referendum between the Muttahida Qaumi Movement backed United Workers Front and the PWU was one sided because the latter had the support of all other labor unions registered for the referendum.

The winning union bagged approximately 4,065 votes whereas their only opponent could garner only 654 votes out of a total of 5,321 registered votes. Some 64 votes were cast for other candidates, who did not step down in time in favor of PWU leader Mr Shamshad Qureshi.

The referendum was held peacefully and candidates belonging to different unions raised slogans in favor of their respective candidates. The supporters of PASLU, who had won 2 referenda in the past, also rallied for the PWU and their workers were present at the PWU camps.

Interestingly, the charter of demands of both the PWU and UWF was quite similar and both unions focused on increments in basic salary, sons’ quota, post retirement medical facilities, pension schemes, promotion of employees, residential settlements of employees, and the appointment of daily wage employees as part of the permanent workforce. The PWU additionally demanded plant maintenance, and taking the employees directly under the PS payroll system rather than paying them through third party agents. The PWU demanded that the third party agent, the Al Hadeed Trust, be discontinued permanently.

Pakistan calls for expansion of Pakistan Steel Mills

APP quoted Mr Mian Manzoor Ahmad Wattoo advisor to Prime Minister and minister for industries & production as saying that expansion in capacity is required to make Pakistan Steel Mills more economic and financially viable and to meet the increasing demand of steel in Pakistan.

Mr Wattoo said that an expansion plan was underway and by the end of current year the capacity would increase to 1.3 million tonnes per annum from the current 1 million tonnes per annum.

He added that "Under the second phase of the expansion plan by end of 2010, the capacity will increase to 1.5 million tonnes per annum. After the completion of third phase in 2012, the total capacity of PSM will reach to the figure of 3 million tonnes per annum."

Mr Wattoo instructed the management of PSM to increase its dependence on the local ran material in its expansion plans and other routine operations. He further said that there were many iron ore and coal reserves in different parts of the country which should be utilized to save the foreign exchange and decrease dependence on imported raw material.

BHPB bid for Rio - CISA denies Chinese interest

Mr Luo Bingsheng deputy chairman of China Iron and Steel Association said that he has not heard that Chinese steelmakers were sizing up a stake in BHP.

His comments followed a report recently in Sydney Morning Herald quoting an official connected with CISA as saying that Chinese steelmakers may combine to buy a significant stake in BHP Billiton Ltd.

The newspaper said Chinese companies including Baosteel, Wugang and Angang Steel may form an investment vehicle to buy the stake with funding possibly sourced through the China Development Bank, which helped Chinalco acquire a 9% stake in Rio Tinto earlier this year.

Mr Xu Lejiang board chairman of Baosteel and Huang Tianwen, president of Sinosteel have both denied any plan of BHP stake raid last month end.

According to Mr Liu Yuan an analyst from Mysteel, acquisition of overseas mineral assets or shares in the secondary market should be shunned since it would be seen as hostile takeover. Besides, usually this will trigger share price skyrocketing and push up acquisition cost.

Chinese HDG export offer increase further

It is reported that hot dipped galvanized coil price is still creeping up in China.

On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7650 per tonne, 0.5mm material by private steel mills at CNY 7950 per tonne an increase of CNY 50 per tonne from last week

Mysteel forecasts Shanghai price for 1.0mm HDG by Anshan Steel has reached CNY 7600 per tonne. As long as Shanghai price for 1.0mm HDG remain above CNY 7500 per tonne, the next target would be CNY 7800 per tonne to CNY 7900 per tonne.

Export offers remain at high level and the range is between USD 1100 per tonne and USD 1160 per tonne FOB for 1.0mm HDG Z120. Quotation for 0.5mm HDG Z120 is at about CNY 1200 per tonne to CNY 1260 per tonne FOB.

A tier two steel maker in North East China has raised its quotation for 1.0 HDG to USD 1360 per tonne CFR for shipments to eastern coast of the United States of America and the equivalent FOB price is about USD 1260 per tonne FOB.

An East China based trader said price is really high and it is mainly due to tight supply. The steel producer probably has no enough allocation for exports and it shot up offer substantially to scare away buyers."

Chinese HDG price is expected to remain strong in June as a result of a combination of robust domestic and international demand and short production.

(Sourced from MySteel.net)

Chinese shipyards urged to focus on quality

It is reported that China association of shipbuilders has urged its members to focus on maintaining high quality or lose its footing as the top shipbuilding nation.

The warning, from Mr Zhang Guangqin head of the Chinese Association of National Shipbuilding Industry was issued as the country’s yards are facing higher costs and rising concern from classification societies and owners over quality as more Greenfield sites appear.

Mr Zhang while speaking at a meeting organized by Lloyd’s Register that “Quality issues are the best excuses for ship owners to stop ordering and, with so many challenges emerging for the yards to manage, strengthening quality management should be the most urgent and important task.”

He said that “This year needs to be the year of quality for China’s marine industries.”

With over 200 yards reported to be available to build international tonnage there have been several recent reports raising questioning whether the newest sites will be able to deliver high quality on schedule.

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.

China Shipping and Baosteel to form shipbuilding JV

It is reported that after many rounds of negotiation, China Shipping Development Co Ltd and BaoSteel Trading Co Ltd have signed an agreement to construct a shipping JV, reflecting that both companies have entered capital cooperation from industries cooperation.

According to the agreement, the shipping capacity in the JV should be around 3 million DWT per year by the end of 2015, but the shipping volumes should be many times higher than the deadweight.

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.

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 Econo