Indian pipe makers gain most on withdrawal of export tax

BL reported that the withdrawal of the export tax levied on domestic steel pipe and tube makers by government has brought much cheer to companies such as Welspun Gujarat Stahl Rohren and Jindal Saw. These companies had suffered sharp declines in stock price following concerns of a likely contraction in margins when the government had imposed an export duty of 10%.

In the interim period between the imposition of export tax and the recent withdrawal of it, both Welspun Gujarat and Jindal SAW had suffered severe downgrades in their earnings outlook. This was based on the reasoning that these companies, which operated in a highly global competitive scenario, would find it difficult to pass on the impact of higher taxes to their clients. The recent withdrawal of the export tax does away with these concerns.

Considering that steel pipe companies import most of their steel requirements and would have had little to do with the tight supply of steel in the domestic market, the withdrawal of export tax does not come as surprise.

Anti POSCO to observe 'Black Week' from June 22

SNS reported that, emboldened by recent successes in their movement against the mega steel project of POSCO, the POSCO Pratirodha Sangram Samiti has announced observance of ‘Black Week’ from June 22nd 2008 to June 28th 2008.

PPSS leader Mr Abhay Sahoo said that they have solicited cooperation from various organizations, political parties, leaders, social activists and environmentalists to make the ‘Black Week’ a success.

Left leaders including Mr AB Bardhan, Mr Prakash Karat, JMM leader Mr Sudam Marandi, NCP leader Mr Arun Dey, Congress leader Mr Umesh Swain and others have given consent to attend a the protest meeting at Balitutha on June 23rd 2008.

Such decision by the outfit, spearheading the anti POSCO campaign for almost 3 years, coincides with the third anniversary of the MoU signing between the government and POSCO. The MoU was signed on June 22nd 2005.

TATA Steel plans to feed SEA rebar mills hit by export tax

Due to Indian government's recent decision to retain export duty on semi finished products while exempting flat products, TATA Steel will lose its synergies with its South East Asian subsidiaries like NatSteel and Millennium.

The Jamshedpur plant of TATA Steel has recently started rolling out 2 million tonnes additional billets to be sent to its subsidiaries in Singapore and Thailand.

This will be value added and sold in the emerging markets but with 15% export duty it will add costs for TATA Steel to the tune of USD 345 million per annum.

Export tax to hit slab supply to JSW US plate mill

Indian government's recent decision to retain export duty on slabs and other semi finished products while exempting flat products would hit JSW steel very hard. Slabs made at JSW Steel's Vijaynagar plant are sent to its newly acquired steel mill in the US to be rolled into plates for feeding pipe mills.

As per report, JSW Steel sends 40,000 tonnes of slab every month to the US and with the export duty of 15% on current slab price of USD 1000 per tonne the implication runs to USD 6 million per month.

Mr Sheshagiri Rao director finance at JSW Steel said that "We will talk to the government in this matter because due to this we may lose a huge sum of money."

BSRM to start commercial production

It is reported that Bangladesh's largest steel plant BSRM Steel Limited with the yearly producing capacity of 375,000 tonnes will start commercial operation from Saturday.

The report quoted Mr Alihussain Akberali chairman of the BSRM Group claimed that this is one of the largest steel plants in South Asia, as only TATA and Essar of India have plants exceeding the production capacity of the plant.

He said that "We are formally commissioning production in the new plant Saturday. The new steel plant, a subsidiary of BSRM Group, has been set up in Bangladesh's southeastern port city Chittagong at a cost of around BDT 4.7 billion (USD 67 million”).

Mr Akberali said that the steel rod the plant will produce might get market in Middle East countries. He said that "We will consider to export the product after meeting demand of local market as it has tremendous potentialities in the Middle East.”

The BSRM Group, involved in steel sector since 1930 in the region, has an annual turnover over BDT 9 billion (USD 129 million).

Jindal SAW Q4 2008 net profit up by 21% YoY

Jindal SAW Limited has reported a 21% YoY increase in net profit to INR 85 crore for the January to March 2008 quarter as compared with INR 70 crore in January to March 2007 quarter. Sales stood at INR 952 crore down by 24.9% YoY as against INR 1,269 crore.

Mr Indresh Batra MD of Jindal SAW Limited said that "It has a strong order backlog in excess of USD 1 billion, of which 65% will be exported in the global market. Riding on the infrastructure boom, we are committed to explore every opportunity within its fold.”

Mr Batra added that “Our new initiatives in the domestic infrastructure space, especially water management and waterborne transportation, are progressing as per schedule."

One killed at RINL

The Hindu reported that a worker in Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant was run over by a goods wagon on the plant premises on June 16th 2008.

According to Ms Vimala Kumari steel plant circle inspector, the goods wagon was being shunted when it moved on the down gradient killing Mr P Ramakrishna, who was on the track.

Steel plant police are investigating the case.

Goldman Sachs to invest USD 50 million in Sterling & Wilson

Reuters reported that Goldman Sachs has bought a minority stake in Indian engineering firm Sterling & Wilson Private Ltd for USD 50 million.

Mr Khurshed Daruvala MD of Sterling said that the investment will help Sterling accelerate its growth plans both locally and in overseas.

It said that Avendus Capital was the advisor for the deal.

Sterling & Wilson, part of India's Shapoorji Pallonji group, is a mechanical, electrical and plumping contracting firm.

TATA Steel bag rainwater harvesting fly ash management award

The Telegraph reported that TATA Steel’s West Bokaro division has won second prize for excellence in management for rainwater harvesting and fourth prize for fly ash management in an award given by the Jharkhand State Pollution Control Board.

Mr Rupesh Sharma of TATA Steel said that hydro geological feature of West Bokaro revealed that the area was undulating with hillocks, stony land, sand stones and coal seams, with the Bokaro river hardly flows during summer.

He said that to sustain operations of West Bokaro, an open cast mine spread across 4,300 acres, it is imperative to make alternative water storage arrangement. He added that rainwater harvesting is playing a major role in providing adequate water reserves.

Mr Sharma said that the area was gently undulating and hilly. Because of the slope, water flows towards one side. He added that "The general slope is towards south and the ground elevation within the lease hold varies from 329 meters to 402 meters. The Bokaro flowing from North West to south controls drainage in the area. The average annual rainfall is 1250mm with 60% of the total rainfall occurring during the monsoon."

Sources said that because of hilly topography, natural groundwater recharging was very difficult. However, TATA Steel’s efforts in rainwater harvesting became successful. Water from open cast mine pit and river is being pumped out during the rains and stored in same abandoned pit. The capacity of the abandoned underground pit is about 400 million gallon. It comprises two bore holes, one for harvesting or collecting rainwater and the other for withdrawing water through bore hole pump.

ADB may lend USD 500 million loan for Krishnapatnam UMPP

BS reported that Reliance Power will get a USD 500 million loan from the Asian Development Bank for the 4,000 MW ultra mega power project coming up at Krishnapatnam in Andhra Pradesh.

With this, Reliance Power is expected to achieve financial closure shortly. The project may cost over INR 18,000 crore, of which about 80% will be debt. Reliance Power is in discussions with Manila based ADB and a project appraisal team will come to India within 2 weeks for the final round of discussions.

Reliance Infrastructure, the engineering, procurement and construction contractor for the project, is in talks with leading global power equipment manufacturers for sourcing boilers, turbines and generators for the project.

The coal fired Krishnapatnam project is the third of the 9 UMPPs planned by the central government to bridge the 20,000 MW power deficit in India. The shortage is expected to shoot up by 15% to 20% every year. Andhra Pradesh will get about 1600 MW from the project while Tamil Nadu, Karnataka and Maharashtra will get 800 MW each.

L&T in talks to acquire Crompton project business

Larsen & Toubro is learnt to have initiated discussions to acquire the project business of Crompton Greaves. Sources said that L&T has started due diligence on Crompton’s project business, estimated at INR 400 crore.

Officials said that Crompton earns nearly 90% of its revenue from engineering product business, while project business contributes only 10%.

Both the companies, however, denied any such development. In intimation to the Bombay Stock Exchange, Crompton said that as of date, it is not contemplating divestment of its project business.

In 2007-08 fiscal, Crompton has recorded standalone revenues of INR 3,875 crore and consolidated revenues of INR 6,830 crore. On the other hand, L&T posted a 55% YoY increase in net profit for 2007-08 fiscal at INR 2,173 crore. The gross sales stood at INR 25,187 crore up by 41% YoY.

Dredging work starts at Paradip Port

SNS reported that dredging work of the Paradip channel has started with Mr K Raghuramaiah chairman of Paradip Port Trust inaugurating the program on board the dredger CSD Aquarius.

Describing the dredging as one of the most important developmental and expansion project of the port, Mr Raghuramaiah has highlighted various developmental works undertaken by the trust. Initially the dredging work will be done by the cutter and suction dredger CSD Aquarius and subsequently higher capacity dredgers will be deployed to cater to the requirement.

The dredging work is awarded to the Dredging Corporation of India. While the total cost of work amounts to INR 253.36 crore, it is expected that it would be complete by June 2009.

The total work includes 15 million cubic meters of dredging which includes 11.3 cubic meters dredging in the outer channel and 3.7 million cubic meters of dredging from the turning circle and the harbor inside. On completion of the, the depth of the entrance channel will be increased from 12.8 meter to 17.1 meter. By deepening the approach channel and entrance channel, the port will be in a position to handle cape size vessels of 125,000 DWT capacity.

Godawari Power net in 2007-08 up by 82% YoY

Godawari Power & Ispat has posted net profit of INR 94.99 crore in 2007-08 fiscal up by 81.92% YoY as against INR 52.21 crore in 2006-07 fiscal. Net sales was up by 87.58% YoY INR 829.27 crore as against INR 442.09 crores.

Consolidated net sales in January to March 2008 quarter was up by 69.61% YoY to INR 809.82 crore as against INR 477.46 crore. Net profit was up by 69.61% YoY at INR 809.82 crore as against INR 477.46 crore.

EBIDTA margin for the 2007-08 fiscal was 21.96% and 18.78% for the January to March 2008 quarter. It has made provision for mark to market FOREX losses by INR 7.46 crore.

Godawari Power has 100% domestic sales and CAPEX for 2008-09 fiscal is INR 435 crore. The cash and the debt position of the company is that it has cash of INR 65 crore and current debt of INR 285 crore.

Indian Railway RWF to hike wheel output for EMU trains

BL reported that Rail Wheel Factory is in the process of adding wheels production for the electrical multiple units trains on suburban services in India to its product portfolio. The demand of EMU segment is currently met out of imports and from the Durgapur Steel Plant.

Mr KC Jena chairman of railway board has urged RWF employees to prepare themselves to meet the challenge to meet the growing demand for EMU wheels. He said that the factory is in the process of scaling up its wheels for the regular rail coaches to 200,000 from 145,000 now.

Mumbai Metro rail project to earn carbon credits

BL reported that, after Delhi metro rail, it’s the turn of the Mumbai Metro rail project to earn carbon credits. The project will generate 651,938 carbon credits between 2011 and 2020. At the current market price of about INR 1,320, the credits will generate revenue of INR 86.05 crore.

Mumbai Metro One Private Limited, the special purpose vehicle for the project, has submitted a detailed methodology report to the executive board of the United Nations Framework Convention on Climate Change seeking clean development mechanism registration for the project. The proposed methodology is for the transport sector and applicable to project activities that reduce emissions through the construction and operation of urban rail based mass transit systems such as metro, light transit rail, tram and sky trains. The methodology, submitted to the UNFCCC for approval, is currently under review by the UNFCCC panel and a decision would be taken in August 2008.

According to the project design document submitted to the UNFCCC, baseline emission have been established by computing emissions, a passenger would have caused in absence of the project traveling the same origin to destination trip using modes of transport such as walking and cycling, private passenger car, taxis, motorcycles, rickshaws, buses and suburban rail.

Mumbai Metro One has engaged CDM transportation specialist Grutter Consulting of Switzerland to develop the methodology for the project.

Mumbai Metro One Private Limited would be implementing the Versova Andheri Ghatkopar metro corridor in Mumbai. It is a JV formed by Reliance Energy, Veolia Transport of France and Mumbai Metropolitan Region Development Authority. Mumbai Metro One has been given a 35 year concession by MMRDA to develop and operate a rail based mass transit system.

Jain Energy inks MoU with MP for 1,000 MW power plant

BL reported that Kolkata based Jain Energy Limited has entered into a MoU with Madhya Pradesh for setting up a 1,000 MW coal based power plant in Shadol district with an investment of INR 5,000 crore.

Jain Energy has previously entered to a MoU with the Chhattisgarh Government for setting up a similar project at Balpur of Janjgir in Champa district.

According to Jain Energy, discussions are on with the governments of Orissa, Jharkhand and West Bengal for setting up Greenfield power projects. It said that expression of interest is submitted for hydro power projects in Arunachal Pradesh and Bhutan.

JSW Steel - Change in directorate

JSW Steel Limited has informed BSE about the following changes in its directorate

1. Karnataka State Industrial Investment & Development Corporation Limited has vide its letter dated June 13th 2008 nominated Mr V Madhu as its nominee director on the board of the company with effect from June 13th 2008 in place of Mrs Sobha Nambisan.

2. Mr K Vijayaraghavan has been inducted as an additional director on the board of directors of the company with effect from June 16th 2008.

3. Mr Ajay Shah has been inducted as an additional director on the board of directors of the company with effect from June 16th 2008.

RIL lignite plan in Rajasthan hits hurdle

BS reported that Reliance Industries Limited's efforts at straddling the entire energy basket from crude, coal and right down to lignite called brown coal have hit a bump. RIL is looking at pumping gas trapped between layers of lignite from the acreage. This is similar to tapping gas from between coal seams, called coal bed methane in industry parlance

As per report, RIL's move to secure a reconnaissance permit for lignite in Rajasthan's Barmer district has come under question as the area identified by it overlaps with acreage marked by government for the coal ministry's regional promotional exploration scheme.

Neyveli Lignite Corporation, however, has told the coal ministry that the area proposed by RIL is overlapping with acreage marked for center’s special scheme. Under this scheme, government run companies undertake exploration with a view to ensuring regional development in prospecting for coal or lignite.

RIL had sought the reconnaissance permit for a 74.34 square kilometers area in the Sanchore basin of Barmer district in western Rajasthan. RIL executives were unavailable for comment but government officials said this area was meant for prospecting by state owned gas utility GAIL, though the state government was yet to officially indicate it.

Barmer is home to one of the biggest oil finds of recent times, made by UK's Cairn Energy and has various agencies working with aim of tapping gas trapped in layers of coal or turn coal into gas.

Villagers in Orissa for pollution free environment

The Hindu reported that, faced with rapidly degrading environments in their proximity, several villagers in Orissa went through a unique learning process for submitting their complaints in proper way in order to take the violators to the task.

The pre emptive step would help the villagers, who have been facing various pollution hazards, alert the administration about risk of giving permissions to any mining companies to operate in their areas.

A two page pro forma was handed over to these villagers to collect information including frequent checking of pollution level by competent authorities, any occurred, due to mining operations, detail of deaths and their causes and police reports. These villagers will also be guided on ready-to-use air pollution kit by which they would be able to check if their atmosphere is polluted by a mining or industrial operation.

The two day program organized by NGO ‘Vasundhara’ intended to train the people on various aspects of environmental laws and clearance processes.

According to a study, prevalence of respiratory and water borne diseases has been high among local people in the Suakati area. Intense mining operation in mineral rich districts has already pushed to the local people to a corner. Contrary to claims by state government and private companies, the development, this was expected from mineral exploitation still eluded.

210 MW Amarkantak thermal power unit synchronized

MyIris reported that the 210 MW units at the Amarkantak thermal power station of the Madhya Pradesh Power Generating Company in Anuppur district have synchronized recently. The power station already has two 30 MW units and two 120 MW units operating.

Mr Jairam Ramesh union minister of state for commerce & power was at pains to find out that while the synchronization on oil of the 210 MW unit was an important milestone, it would be another 4 months before the unit is scheduled to be in full commercial operation.

He also expressed his anguish that the single 500 MW unit at Birsinghpur in Umaria district, which was declared commissioned in June 2007 has yet to come into full commercial operation.

Sikkim scraps 4 mega hydel projects on eco concerns

BL reported that Mr Dawa Tshering Lepcha and Mr Tenzing Lepcha have withdrawn their indefinite hunger strike following the state government’s move to scrap 4 mega hydro electric power projects in Dzongu in North Sikkim.

The scrapped hydel power projects are located in Dzongu in North Sikkim
1. 141 MW Rangyong
2. 120 MW Lingza
3. 90 MW Ringpi
4. 33 MW Rukel

According to a letter dated June 12th 2008, addressed to Mr Athup Lepcha president of Affected Citizens of Teesta, Mr P Wangchen principal chief engineer cum secretary of the state power & energy department said that the 4 projects were scrapped by the state government taking into consideration the sentiment of the local people and the need to conserve the environment.

The state government has scrapped both the Rangyong and Lingzya hydel power projects, for which it had initially signed MoUs with private developers while no definite proposals were made for the Ringpi and Rukel projects, both located inside the Khangchendzonga National Park in Dzongu.

Mr Tseten Lepcha chief coordinator of ACT said that the scrapping of the four projects is a step towards protection of Sikkim, its nature and environment. However, the supporters of the ACT are not so happy over the development.

Thermal power project sanctioned for Solapur - Mr Shinde

Mr Sushilkumar Shinde union power minister said that union power ministry has sanctioned 1,320 MW thermal power project for Solapur and the process for this proposed project will start within few days.

He said that the thermal power project will be located at Phatatewadi in South Solapur tehsil of the district. Senior officers of the National Thermal Power Corporation visited the proposed site and decided to start the project at the earliest. He added that two units of 650 MW per unit will cost around INR 6,500 crore.

Mr Shinde also said that union cabinet has cleared the proposal of widening of the Mumbai Hyderabad Highway number 9 and Mumbai Bangalore Highway number 13 into four lanes.

Indian Railway freight revenue in 2 months up by 22.2% YoY

Indian Railways have generated INR 8996.29 crore of revenue earnings from freight traffic during April to May 2008 period up by 22.2% YoY as compared to INR 7356.79 crore during April to May 2007 period. Indian Railways carried 137.73 million tonnes of freight traffic during April to May 2008 period up by 10.2% YoY as compared to 124.98 million tonnes carried during April to May 2007 period. The net tonne kilometers went up from 80993 million to 89335 million, showing an increase of 10.3% YoY.

Out of the total earnings during the month of May 2008, Indian Railways carried 69.95 million tonnes of freight traffic and earned INR 4599.63 crore revenue.

Details of freight traffic and revenue earnings in May 2008

Volume in million tonnes
Earnings in INR crore

DMRC plans multi level parking at metro stations

ET reported that, in an attempt to make Metro more passenger friendly, Delhi Metro Rail Corporation is now planning to construct multi level parking lots at its stations. The move comes after secretary of union ministry of urban development said that to promote public transport, Delhi Metro must provide adequate parking space for its commuters.

Mr Anuj Dayal chief spokesperson of DMRC said that "The plans for the first multi level parking lot on the airport express line are still being finalized, as this was not a part of the detailed project report of the line. After this, the tendering process will start. The airport line will be integrated with other modes of commute, including the Indian Railways, existing Delhi Metro network, buses and private cars."

Mr Dayal added that "The elevated lots will have parking capacity of about 350 cars and will be constructed by DMRC. The operation and maintenance will be contracted to a private body."

The parking lot building will have two underground levels, the lower basement will have the platforms, while the concourse, check in facilities and airline counters will be housed in the upper basement. The entry or exit for commuters using the Metro line along with a drop off point for those coming in private vehicles will be created at the ground level. The top seven floors, according to the plan, will be parking lots. It will come up across a 9,000 square meter area.

The other major metro station on the Airport Express line, at Shivaji Stadium, will also have space for about 70 vehicles. DMRC has not planned a parking facility of a mass scale as New Delhi Municipal Council is coming up with a multi level parking barely a few meters away from the Metro station.

KEC bags INR 160 crore rural electrification contract from NTPC

KEC International has bagged an order worth INR 160 crore from NTPC Electric Supply Co for rural electrification in Dumka district of Jharkhand on turnkey basis under the Rajiv Gandhi Gramin Vidyutikaran Yojana scheme.

KEC's scope of work involves electrification of 1,454 villages, providing approximately 200,000 below poverty line services connections and fourteen 33/11 kV new augmentation substations.

The work order is scheduled for completion by end 2009.

Foundation stone laid for 1,200 MW Teesta hydel power project

Projects Today reported that Mr Pawan Chamling chief minister of Sikkim has laid the foundation stone for Teesta Urja's 1,200 MW mega hydroelectric power project stage III in North Sikkim on 16th June 2008.

The project to be implemented in six units of 200 MW each will entail an investment of INR 5,000 crore. All formal clearances with the forest and environment authorities have been obtained and the required land is acquired by the developers for the project.

The completion of construction work on the project is expected by 2012.

Mahindra Forgings commences 6,300 tonne press

Mahindra Forgings Limited announced that it has installed and commenced production of 6,300 tonne press. With this it has 8 forging presses, having an aggregate annualized production capacity of around 4000 tonnes per month.

Mahindra Forgings had earlier intimated on March 5th 2008 about the breakdown of one of the press having a production capacity of around 1,100 to 1200 tonnes per month. The said press is being overhauled and is expected to be put in operation by end of September 2008.

However, with the commencement of production of 6,300 tonne press and other 4000 tonne presses which compliment the 5000 tonne press, there is not likely to be any adverse impact on the production and performance of the company

Jharkhand recommends water allocation to 22 steel firms

IANS reported that Jharkhand has recommended water allocation to 22 steel companies to expedite the Greenfield steel projects in the state.

An official of the state industries department said that "The recommendation has been made according to needs of the steel companies. We have recommended those companies who are in the advanced stage of setting up Greenfield projects." He added that the list of 22 firms that should be allocated water on a priority basis was sent by the industries department to the water resources department on June 9th 2008.

As per report, industries have been categorized according to their location and their water requirements. Companies like Jindal Steel & Power Limited, Narsingha Ispat Limited, Bhushan Steel, Core Steel & Power Limited and Kalyani Steel Limited have been accorded priority for the Subernarekha basin, while Corporate Ispat & Alloys Limited and Essar Steel will get water from the Kharkai water basin.

Steel giant ArcelorMittal, Essel Mining & Industries and Pawanjay Steel & Power are among those to get water from the South Koel basin. And companies like Electrosteel Integrated Limited, Anindita Traders & Investment and BMW Industries will draw water from the Damodar basin.

As per recommendations, the maximum amount of water of 247.37 million cubic meters per annum will be drawn from Subernarekha basin followed by 155.58 million cubic meter per annum from South Koel Basin, 56.26 million cubic meters per annum from Kharkai basin and 49.72 million cubic meters per annum from Damodar Basin.

RINL adopts Panar village in Gujarat as part of its CSR

Express News Service reported that Rashtriya Ispat Nigam Limited has adopted Panar village in Gujarat as part of its corporate social responsibility.

Mr PK Bishnoi chairman of Visakhapatnam Steel Plant has donated a TV set and 30 chairs to the community welfare centre at Panar, where he announced that Panar will be developed as a model steel village. He said that the village will have pucca roads and drains, high school, sanitation facilities, treated water, street lighting etc.

A medical camp was also organized by VSP at Champa Vijaya General Hospital at Rampura of Detroj Mandal. Of the 196 villagers who underwent preliminary medical screening in the areas of gynecology, eye and cancer detection, 25 persons were identified for surgeries.

The cost of the advanced medical treatment for the above will be borne by the VSP.

BD Castings to set up steel plant in Birbhum

FE reported that TMT bar manufacturer BD Castings Private Limited has come up with 2 new value added products for its Timcon brand TMT Bar Fe500 and Timcon structural steel. The first one is used in construction, while the latter has use in the engineering and fabrication industries.

Mr Ramesh Chand Goyal chairman of BD Castings said that the basic raw material of both the products is produced in the integrated steel manufacturing units of the company.

Regarding new ventures, he said that a new integrated steel plant with a capacity of more than 300,000 tonne per annum would come up in Birbhum.

Ashok Leyland may open Nissan JV to shareholders

Reuters reported that Ashok Leyland Limited is considering selling some of its stake in a JV with Nissan Motor Company to existing shareholders. Leyland owns 51% of the JV with Nissan in India for making light trucks, transmission and components. The JV, which will start production in 2010-11, is being set up at a total cost of INR 24 billion with an equal mix of equity and debt.

Mr K Sridharan CFO of Ashok Leyland said that "We are looking at options to incentivise our own shareholders by giving them some sort of entitlement in the JV."

Mr Sridharan said that "We will offer some portion to shareholders and scale back the company's stake to that extent. The decision to offer a stake to the shareholders would be made in the next few months, and company listed subsequently."

He further added that it has raised about USD 200 million overseas debt and plans to raise another INR 10 billion in the next 18 months to fund the expansion. It sold 11,281 vehicles in April to May 2008 period down by 3.2% YoY, but has forecast high single digit growth in 2008-09 fiscal.

The Ashok Leyland Nissan JV will have an initial capacity of 100,000 vehicles in a range of up to 8 tonnes, a segment that is growing fast in India. Outside the JV, Ashok Leyland aims to spend INR 30 billion over the next 3 years to add 100,000 vehicles to its current capacity of 84,000 vehicles to take on market leader TATA Motors as well as the likes of Volvo and MAN.

DVC may set up a subsidiary to float IPO

DNA reported that Damodar Valley Corporation has been advised by its consultants KPMG to set up a subsidiary which can float an initial public offer.

Mr Asim K Barman chairman of DVC said that a follow up study by KPMG is being undertaken to decide whether the existing power plants can be kept under the old DVC formation and the new Greenfield projects should be transferred to the new arm, or whether DVC itself can generate funds the way it has been doing for its 11th Plan projects.

However, he said that the IPO is needed for the new projects to be set up under the 12th Plan since these will be super critical units and require a new type of technical efficiency. He added that DVC may induct a strategic international partner through an expression of interest, a proposal that is being weighed at present.

In the 12th Plan, DVC has identified five projects of 1,320 MW each which are slated to be executed either by DVC or its arm, which may not be a 100% subsidiary. In the 11th Plan, 6,000 MW will be added for which line of credit has already been tied up with REC, PFC and commercial banks. About INR 20,000 crore will be financed through debt and INR 8,000 crore from internal accruals.

Sical Logistics 2007-08 profit up by 11% YoY

Sical Logistics Limited has posted audited consolidated net profit of INR 502 million for the year ended March 31st 2008 up by 11% YoY as against INR 450.4 million for the year ended March 31st 2007. Profit before prior period and exceptional items was INR 426.3 million up by 36% YoY from INR 313.6 million.

Net sales for the year ended March 31st 2008 was INR 7.1 billion down by 323% YoY a against INR 10.5 billion due to the de merger of the non logistics business. Consolidated net sales of Sical’s core logistics business was IR 6.8 billion, up by 1.6% YoY from INR 6.7 billion.

On the 2007-08 fiscal results, Mr Ashwin Muthiah chairman of Sical said that "We are pleased to report steady business growth for FY 2008. We successfully executed our strategy of focusing on our core logistics business with the de merger of the non core business and the separation of the service and infrastructure business. This ensured dedicated management focuses and helped us leverage the true potential of each business."

He added that "Our infrastructure projects are progressing smoothly. Over the next 2 years, most of the special purpose vehicles will commence operations and we envision robust growth and enhanced profitability for the Group in the long term. We remain committed to our vision of making Sical a billion dollar company by 2012 and will continue with our efforts to enhance value for our stakeholders."

Anti POSCO activists may lose voting rights – Report

SNS reported that many anti POSCO activists including PPSS leader Mr Abhay Sahoo and a number of pro project people are in the same boat, but for a different reason. All of them are afraid of losing their voting rights owing to their long absence from their native villages.

Sources said that Mr Sahoo, originally from Jiraielo panchayat under Erasama area, had left his village to settle in Dhinkia to lead the anti project movement about 3 years ago, and so did most of his supporters. Some of the project supporters had to leave the notified place and reside elsewhere under different conditions.

As per the state election commissioner directive, the door to door survey for the preparation of electoral roll and correction of voters’ list was conducted between April 16th 2008 and May 30th 2008. As many as 739 booth level officers, 72 supervisors and eight senior officers were involved in duties during the pre-poll preparation of almost 700,000 voters. During the survey, the surveyors found that many people were absent from their native land for a long period of time and reported the same for necessary action. According to official sources, a person's name may be deleted from the local electoral roll on three grounds for shifting to other place, absence for a long period from his native place and death.

RITES to postpone IPO plan

BS reported that RITES Limited has decided to postpone its initial public offering of 10 million equity shares in the wake of high volatility in the domestic equity market.

A ministry official said that during the first week of June 2008, railway board and RITES officials held a meeting to review the progress of the IPO process, in which it was decided to postpone the public issue for the time being. In the review meeting, railway officials said that certain pre IPO transactions, which have to be finished before June 30th 2008 are unlikely to get completed before the stipulated time. Hence, they decided to postpone the issue. Apart from that, the prevailing weak market conditions also prompted RITES officials to rethink their IPO plan.

Mr VK Agarwal MD of RITES said that "The domestic equity market has been quite volatile during the last few months. Initially, we expected the situations to improve, but it did not happen. The market continues to be highly volatile and we decided to postpone the issue for the time being."

Another RITES official said that "All other required process for the IPO will continue to take place. When the equity market becomes stable, we will take a final call on the issue."

It may be noted that RITES proposes to issue 10 million fresh equity shares through its IPO in addition to another 4 million shares by way of divestment of the government's 10% stake in the company that will bring down the government's total equity stake in the company to 72%.

HEG 2007-08 profit up by 98% YoY

Graphite electrodes manufacturing firm HEG Limited has posted a net profit of INR 146 crore for the year ended March 31st 2008 up by 98% YoY as compared with last year. The net revenue stood at INR 236.7 crore and exports rose by 19% YoY to INR 184.1 crore from INR 154.8 crore.

Mr Ravi Jhunjhunwala CMD of HEG Limited said that "I am happy to announce another robust performance for the quarter, on the back of higher realizations in our graphite electrodes business. We have got full benefits from our power plants, leading to healthy growth performance in our power division. Our stabilized capacities have led to scaling up of our business, where we have the advantage of becoming a leading manufacturer in the graphite electrodes space. The strong demand scenario will continue in the graphite electrodes division, driven by higher volumes and improved product prices."

HEG is also planning to add 20,000 tonnes per annum of graphite electrodes to its present capacity of 60,000 tonnes per annum. The additional capacity would become operational by the last quarter of 2009. It is in the process of implementing its expansion plan of its captive power generation capacity by 33 MW at an investment of INR 90 crore. It is also focusing on high grade value added ultra high power products.

McNally Bharat 2007-08 income up by 8% YoY

McNally Bharat Engineering Company Limited has posted income of INR 550.05 crore in 2007-08 fiscal up by 8% YoY as compared with INR 509.63 crore in 2006-07 fiscal. Profit after tax was recorded at INR 22.40 crore up by 28% YoY as against INR 17.5 crore.

McNally Bharat’s order book position as on March 31st 2008 amounted to INR 2,300 crore and its board of directors has recommended 10% dividend for 2007-08 fiscal.

The company source attributed the improved performance to factors such as higher margin resulting from the rise in high value business and lower interest payout. It added that the outlook is bright as the company hopes to post an income of INR 1,000 crore in 2008-09 fiscal and maintain the operating EBIDTA at the level of 7.5%, despite the challenges in the form of higher inflation and higher input costs.

McNally Bharat will continue its strong presence in steel modernization programs of SAIL, port expansion projects of National Maritime Development Program and capacity increase in non ferrous metal sector.

JSW Steel sets up vocational training institute at Toranagal

BS reported that JSW Steel Limited, which is currently expanding its steel mill at Toranagal in Bellary district of Karnataka, has set up OP Jindal Centre for Vocational Training at Toranagal to offer job oriented courses to the children of land losers and villagers adjoining the steel mill. It has so far invested INR 13 crore to construct a building for the vocational training centre adjacent to its steel mill at Toranagal.

OPJCVT has entered into a tie up with Nettur Technical Training Foundation to offer three programs in electrical maintenance, mechanical maintenance and certificate program in computer applications.

The centre is presently offering one year certificate program in 3 disciplines to 50 students in the first batch, which has just started. After every 3 months, it intends to commence the fresh batch of 60 students. The course is open for the children of the land losers at Toranagal and at a later stage, it will be open for students from across India. The centre will offer 100% placement in the manufacturing units of Jindal group such as steel mills at Toranagal in Karnataka, Jharkhand and West Bengal, power plant at Jaisalmer and Ratnagiri, aluminum plant at Vizag.

Mr SS Gupta director of OPJCVT said that "Our main objective is to impart technical training to the children of the displaced families in our project, so that they can not only become employable in our factories, but also turn entrepreneurs. They will be given a proper technical training for one year and after the completion of the course as per NTTF program, they can take up any job of their choice."

Mr Gupta said that the training will be free for the children of the displaced families, while the students under general quota will be charged INR 36,000. They will be offered a scholarship of INR 18,000. In addition to this, OPJCVT will also offer 20% of the course fee as scholarship to students under scheduled caste and scheduled tribe category and disabled. Sports persons will be given 5% scholarship.

Reliance Steel to acquire PNA Group

Reliance Steel & Aluminum Co announced that it has reached an agreement to acquire the outstanding capital stock of PNA Group Holding Corporation, a national steel service center group owned by Platinum Equity. The transaction is valued at approximately USD 1.1 billion.

PNA’s subsidiaries include the operating entities Delta Steel LP, Feralloy Corporation, Infra Metals Co, Metals Supply Company Ltd, Precision Flamecutting and Steel LP and Sugar Steel Corporation. Through its subsidiaries, PNA processes and distributes primarily carbon steel plate, bar, structural and flat rolled products.

The transaction is expected to be consummated within the next 60 days, subject to the satisfaction of certain conditions, including obtaining required regulatory approvals. Reliance expects to finance the transaction, including the replacement of PNA’s existing debt, through a combination of borrowings under Reliance’s existing credit facility and by raising approximately USD 750 million through the issuance of a combination of new debt and equity securities.

Mr David H Hannah chairman & CEO of Reliance Steel said that “The PNA operations complement our existing business and add new products in many geographic areas that further enhance the customer, product and geographic diversification of our business. Through the PNA joint ventures, we also gain entry into a new market for us in Mexico. We expect that this transaction, including the impact of the expected financing, will be immediately accretive to our earnings, with the dilution from any new shares issued offset by the earnings from PNA and savings from our lower cost of capital. Additionally, we expect our balance sheet and liquidity to remain strong.”

CMC closes acquisition of PHP Nike SA in Poland

Commercial Metals Company announced that its subsidiary, CMC Poland has completed the acquisition of substantially all the outstanding shares of PHP Nike SA located at Dabrowa Gornicza in Poland.

Established in 1997, PHP Nike SA is a leading producer of welded steel meshes, cold rolled wire rod and cold rolled rebar in Poland with annual production capacity of 90,000 tonnes. It will operate under our CMC International Fabrication and Distribution segment.

Mr Hanns Zoellner executive vice president of CMC and president of CMC International said that "PHP Nike S.A. has been a major customer of wire rod produced at our minimill in Poland. This acquisition allows CMC to commence the next step of vertical integration in Poland and is a substantial expansion of our product line in downstream operations. With this acquisition, CMC will offer a more complete line of value-added products to the construction industry, differentiating us in the market. In addition, CMC Poland has purchased mesh equipment for installation at the Polish minimill location which will bring total mesh capacity up to 160,000 tonnes per annum."

Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.

Esmark and USW arbitration set for Wednesday

The United Steelworkers and Esmark plan to head into a grievance procedure Wednesday regarding the union’s belief that the steel company violated its Wheeling Pittsburgh Steel Corp contract.

Esmark said in a filing with the Securities and Exchange Commission that the arbitration is to take place Wednesday with a decision to come no later than Saturday.

USW said that Esmark entered into agreements with Essar Steel Holdings Inc. without allowing the USW time provided in the contract to mount a competing bid.

Esmark, meanwhile, has filed an unfair labor practices charge against the USW, alleging the union is interfering in the company’s attempt to be sold to Essar. Esmark contends no transaction between itself and Essar may commence until Monday. The union position is that Esmark entered into its memorandum of understanding with Essar and accepted USD 110 million in loans before the Steelworkers were able to mount a counter-proposal. The Steelworkers invited Russia’s OAO Severstal to consider a purchase of Esmark beginning in January.

Prior filings with the SEC by Severstal detailed that negotiations were progressing until the Esmark-Essar deal was announced April 30.

Corus Strip to hike UK flat products by GBP 150 per tonne

Corus Strip Products announced that it will increase the basis prices of its flat rolled products in the UK by at least GBP 150 per tonne

The release said that “Corus Strip Products will increase the basis prices of its flat rolled products in the UK by at least GBP 150 per tonne for Hot Rolled, at least GBP 175 per tonne for Cold Reduced and at least GBP 200 per tonne for Hot Dipped Galvanized and Aluminized, for all orders acknowledged for delivery from 30th June. The increases follow on from Corus Strip Products prices announcements for mainland Europe in May.”

A new price extras list is effective from the same date.

It added that “Recognizing the significant increase in fuel costs, distribution prices will increase by 6%. At the same time, as the direct consequence of a series of unprecedented increases in raw material costs, Corus Strip Products is discussing with its customers the consequences of the extreme cost increases in relation to current annual contracts.”

CSN to modernize CR tandem CR mill No 3 at Volta Redonda

Companhia Siderúrgica Nacional has awarded Siemens VAI Metals Technologies a contract to modernize its five stand tandem cold rolling mill No 3 in Volta Redonda. The aim is to further improve product quality and to increase output. The modernized plant will start operating in the second half of 2009.

The project also includes replacement of the automation system, renewal of the drive and process equipment as well as modification of the rolling stands, the in feed and out feed areas and the emulsion cooling systems.

Under the project, Siemens will modernize the drive controllers, the entire automation system, the technological control systems and the operator control system. The new equipment, which will be based on the Siroll CM concept for cold rolling mills, will see the plant fitted with a thickness control system in accordance with the advanced mass flow concept and new process models, which enable fully automatic adjustment of the rolling line to the different operating modes. Simplified operator control, integrated diagnostic systems and fully automatic rolling sequences are designed to increase the productivity of the facility.

In addition to all this, Siemens will carry out extensive renovation work on the mechanical equipment. This includes new hydraulic cylinders for all rolling stands, including servo valve stands, modifications of the mounting parts on the work rolls and on the roll changing system to ensure automatic roll change, plus additions in the infeed and outfeed areas. This will enable optimization of strip movement and further improvements in the quality of the strip surface. Comprehensive modernization of the emulsion plant rounds off the project.

The plant will be revamped as part of a scheduled shutdown in the second half of 2009. Pre assembly and pre-commissioning of some of the functions will reduce non-productive time to a minimum. Customer training will be conducted in the context of an expanded system test in situ and customer specific requirements can also be integrated.

The project is being handled with the support of Siemens Brazil. The contract was awarded to Siemens based on the positive impressions left with the customer during the recently completed changeover of the drive systems of tandem line No 2 to digital controllers and thyristor supply units. Siemens also made a positive impression with its ongoing preventive and corrective maintenance work in the Volta Redonda Continuous Casting plants.

ArcelorMittal sees 153 million steel shipments in 2012

Reuters reported that Arcelor Mittal expects its steel shipments to total 153 million tonnes in 2012 versus 116 million in 2007.

ArcelorMittal in a slides presentation to investors outlined that it expects that its iron ore production to reach 110 million tonnes by 2012 and approximately USD 500 million related to full benefit from merger synergies to impact 2008.

ArcelorMittal reached at the end of the first quarter of 2008 its target of delivering more than USD 1.6 billion of synergies from the merger of former rivals Arcelor and Mittal Steel.

POSCO Japan to build new steel service center in Kyushu

JMB reported that POSCO Japan's Kitakyushu based steel processing subsidiary, POSCO JKPC builds new plant to process automotive flat steel at Kanda in Fukuoka after the firm secured around 30,000 square meters of land.

The plant with leveler and slitter will start operation in summer 2009 and the firm provides sheet steel processing service for Nissan Motor's plant and parts makers around Kyushu for Daihatsu Motor.

Kremikovtzi workers urge government for protection

Bulgarian media reported that several hundred workers at Bulgarian steelmaker Kremikovtzi staged protests in Sofia on Tuesday to demand government help for the ailing mill.

Workers urged the Socialist led government to ensure a transparent sale of the indebted plant that would guarantee its future development and not lead to closure.

A Bulgarian court will hold the opening session later on Tuesday of an insolvency action brought by creditors against Kremikovtzi.

Kremikovtzi, which employs about 8,000 people, faces bankruptcy after its debt increased to BGL 1.7 billion (USD 1.35 billion) at the end of 2007.

Steel major ArcelorMittal and Ukrainian billionaire Mr Kostyantin Zhevago are both interested in taking over the steelmaker but say it must first be declared insolvent.

Indonesian plan to restrict tin production may affect global market

ANTARA News reported that Indonesian plan to restrict its tin production if realized it will have an impact on the global tin market as research conducted by many institutions has shown global tin production is lower than demand.

Mr Abrun Abubakar corporate secretary of PT Timah Tbk said that "We still do not know what the impact will be on PT Timah Tbk performance if the government restricts the country tin production starting in 2009."

Mr Abubakar said that "Neither do we know what PT Timah production ceiling will be. As far as Mr Abrun Abubakar know a regulation restricting Indonesia tin production has not yet been issued."

Mr Simon Sembiring Director General of Mineral, Coal and Geothermal Energy at the Energy and Mineral Resources Ministry of Indonesia said recently the government planned to slash the country tin production by 90,000 to 100,000 tonne per year. He added that "If we produce and export large quantities of tin its prices can fall in the global market".

The Indonesian government is expected to restrict the country tin production starting in 2009 to control global tin prices. Indonesia is the world biggest tin exporter and second biggest tin producer.

Specialized Welding Australia merges with Profab International

It is reported that Hazelmere based fabrication company Specialized Welding Australia will merge with a Singaporean engineering firm to consolidate services for the global oil, gas and petrochemical industries.

The agreement with Profab International will see the company retaining its name and businesses under the group’s banner. The merger was driven by a desire to combine the exotic metals specialist skills with Profab’s carbon steel expertise. The company will also be able to access heat transfer products through Fraser Thermal Technology, which is a subsidiary of Profab.

SWA said that it will gain better market penetration, increased business sustainability, and increased scope while focusing on its core fields.

Profab produces large heavy duty carbon steel based structures, pressure vessels and process modules for the oil and gas industry and counts BHP Petroleum, Ranhill Worley and Petrosea as clients.

SWA manufactures pressure vessels and heat exchangers using high performance alloys, particularly exotic alloys. They are also involved in the mechanical and thermal design and manufacture products for mineral processing and oil and gas refineries

(Sourced from www.metalworker.com.au)

Sidor output in Q1 down by 30% YoY

El Universal reported that Venezuela's largest steelmaker Siderurgica del Orinoco produced about 30% less of the metal in the first quarter from a year earlier.

The newspaper said that Sidor as the company produced 792,000 tonnes of liquid steel in the first quarter down from 1.1 million tonnes in 2007.

It said that labor disruptions contributed to the slowdown as workers sought to pressure the company into signing a new contract.

The newspapers said that production fell by 9.5% during April and May, as the government completed a takeover of the steelmaker. It said that Sidor is on target to produce 3.9 million tonnes of liquid steel this year down from 4.3 million tonnes in 2007

POSCO makes plans for steel plant in Vietnam

It is reported that the provincial authorities of Khanh Hoa have approved a plan to allocate 942 hectare of land to the north of Van Phong Bay for a steel refinery, thermo power plant and port proposed by South Korean giant POSCO.

Khanh Hoa People’s Committee said that the projects would be located on Hon Gom Penisula and Dam Mon Lagoon in the province’s Van Ninh District.

Provincial authorities noted that the steel refinery would not be located on an area in Van Phong Bay zoned for a new bonded warehouse and goods transit depot proposed by the Viet Nam Ship-Building Industry Group.

US weekly crude steel production decrease by 0.8%YoY

American Iron & Steel Industries reported that in the week ending June 14th 2008, US’s raw steel production was 2.101 million net tons while the capability utilization rate was 88.1%. Production was 2.119 million net tons in the week ending June 14th 2007, while the capability utilization then was 88.6%. The current week production represents 0.8% decrease from the same period in 2007.

Production for the week ending June 14th 2008 is down 1.5% from the previous week ending June 7th 2008 when production was 2.134 million net tons and the rate of capability utilization was 89.4%.

Adjusted YTD production through June 14th 2008 was 50.225 million net tons at a capability utilization rate of 88.8%. That is a 2.7% increase from the 48.879 million net tons during the same period last year, when the capability utilization rate was 85.7%.

District wise production for the week ending June 14th 2008
1. Northeast Coast: 173
2. Pittsburgh/Youngstown: 211
3. Lake Erie: 89
4. Detroit: 108
5. Indiana/Chicago: 483
6. Midwest: 257
7. Southern: 686
8. Western: 94
(In thousands of net tons)

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

Acepar to supply billets to Acerin

BNamericas reported that Paraguayan steelmaker Acepar has promised to supply billets to local company Acerin which has no supplies of the input material to make rebar for construction.

The report said that Acepar technicians plan to visit Acerin to determine which specific products the company needs for manufacturing rebar. The move will help alleviate the shortage of bars that has troubled Paraguay's market for some time.

Mr Hugo González a representative of Paraguayan workers cooperative Cootrapar said in May that the shortage was because Acepar does not prioritize the local market, a charge Acepar denied.

The company reportedly has 45,000 tonne of steel products on hand including 21,000 tonne for the local market and 24,000 tonne for export.

SDI complete the acquisition of Recycle South

Steel Dynamics, Inc announced that OmniSource Corporation, a wholly owned subsidiary of Steel Dynamics, completed the recently announced acquisition of Recycle South, LLC on June 10th 2008.

OmniSource which already owned 25% of Recycle South acquired the remaining 75% equity interest for a purchase price of approximately USD 515 million, comprised of 3,938,000 shares of Steel Dynamics common stock valued at approximately USD 140 million; cash of USD 232 million and the assumption of certain liabilities, including net debt of approximately USD 143 million. This results in a total enterprise value of about USD 640 million.

Mr Keith Busse chairman & CEO of Steel Dynamics said that "This transaction significantly expands our recycled metals business platform created by the acquisition of OmniSource in October 2007. It demonstrates SDI's strategic commitment to the continued expansion of ferrous and non ferrous recycling, which is an important element of our overall growth plan. The additional capacity of the Recycle South operations brings our company's total annual ferrous scrap processing capacity to approximately seven million tons. We are pleased that the transaction has closed within the expected timeframe, and look forward to a smooth integration. The addition of the Recycle South business to OmniSource will increase both the size and scope of our scrap operations, and establish a platform for continued growth."

Mr Marvin Siegel chairman & CEO of Recycle South said that "We look forward to the next stage of our involvement with OmniSource and are excited to join the Steel Dynamics team. Our existing working relationship will make for a natural transition allowing us to sustain our growth pattern and maintain the highest level of service to our customers. Our strength has always been based in the Southeast and we are now excited to provide regional leadership as part of a larger network of companies."

Recycle South one of the largest regional scrap metal recycling companies in the nation, is headquartered at Spartanburg in South Carolina.

Samsung Heavy to buy stake in Brazil shipyard Atlantico Sul

Reuters reported that Samsung Heavy Industries Co Ltd had agreed to buy a 10% stake in Brazil's Atlantico Sul Shipyard for some USD 22 million.

A Samsung official said that the agreement was expected to help win major orders such as ones for drill ships from Brazil's state run oil company Petrobras.

The official told Reuters by telephone "A shipbuilder needs a local company to win ship orders from Brazil and the purchase would help us secure better positions for more orders,"

In 2006, Samsung said it had signed a deal to provide technical support to Atlantico, a consortium of four companies, for Atlantico Sul Shipyard.

Taiwanese welded pipe exports in May up by 44% MoM

According to Taiwan’s customs statistics, Taiwan’s steel welded pipe exports rose by 44.19% MoM to 29,579 tonnes in May 2008 from 20,517 tonnes in April 2008

The statistics said that the biggest export destination was North America with increase rate of 49.42% MoM and the main reason is because the US has launched the anti dumping probe against carbon steel welded pipe from China.

Therefore, Taiwan’s welded steel pipe export market is expected to remain positive in the next few months.

(Sourced from YIEH.com)

Belgian steel production down in 2007

According to the statement from the Belgian steel federation Groupement de la siderurgie, Belgian steel output fell by 8% YoY to 10.6 million tonnes in 2007 from the previous year.

Steel output produced by electric arc furnace dropped by 13%YoY and basic oxygen steel output fell by 2% YoY.

The output of cold rolled steel coils dropped by 15% YoY to 4.8 million tons. At mean time, coated steel flat product production decreased slightly by 5% YoY.

(Sourced from YIEH.com)

European steel sheet prices keep rising

It is reported that European steel plants have increased prices to offset higher raw material costs since January.

The price of steel sheet is also remained a upward trend, as the price of hot rolled coil has reached EUR 770 to EUR 800 per tonne when cold rolled coil has soared to EUR 850 per tonne for September production.

Traders indicated that some quotation they had for production of September are prevailing at high of EUR 850 to EUR 900 per tonne for cold roll coil and EUR 950 to EUR 1,000 per tonne for hot dip galvanized sheet.

(Sourced from YIEH.com)

ArcelorMittal Asturias selects AIS solution for scheduling in plate mill

As part of a major expansion project on the heavy plate mill of Avilés, ArcelorMittal Asturias selected the AIS solution to improve scheduling and plate nesting.

ArcelorMittal Asturias said that BetaPlanner, the well proven AIS module for rolling mill scheduling optimization, will be implemented to increase the efficiency of the plate mill. Another SteelPlanner module, PIANO Plate Intelligent Assignment and Nesting Optimization, will manage the assignment and nesting of customer plates in mother slabs.

PIANO automatically generates cutting plans for combinations of customer plates and assigns those combinations to existing mother slabs from a stockyard. It handles the nesting of customer plates into mother plates, the nesting of those mother plates into existing slabs, as well as the scheduling of those slabs for the cutting table.

On top of the plate nesting optimization, PIANO will also help generate the slab requirement for both the local continuous caster and from other ArcelorMittal steel Plants. The sequence in which the daughter slabs will be processed by the mill will be solved by the BetaPlanner, considering an extensive number of technological and logistical constraints. BetaPlanner will also care for the cadence of the two normalizing furnaces.

Mr Jean Pierre Mullié manager of Flat Rolling of ArcelorMittal Asturias said that “This project contributes and supports our strategic goal of De bottlenecking, increasing production capacity up to 800,000 tonne per year as determined by ArcelorMittal Global Plate Organization.”

He added that the project started in Q1 2008 after a comprehensive selection process and will be taken live in the Q4 2008.

The AIS Group, headquartered at Linz in Austria is a leading supplier of planning and scheduling systems for the metals industry. Solutions from AIS increase the efficiency of capital intensive production equipment through the optimization of capacity planning and production schedules.

Genco Shipping acquires 6 drybulk new buildings

Genco Shipping & Trading Limited announced that it has agreed to acquire six drybulk newbuildings from Lambert Navigation Ltd, Northville Navigation Ltd, Providence Navigation Ltd and Prime Bulk Navigation Ltd for an aggregate purchase price of USD 530 million. The acquisition is subject to the completion of customary additional documentation and closing conditions.

The six vessels comprised of three Capesize and three Handysize vessels are expected to be delivered to Genco from the fourth quarter of 2008 through the fourth quarter of 2009. Upon completion of the acquisition and including the three drybulk vessels the Company agreed to acquire from Bocimar International NV and Delphis NV as well as the four remaining Capesize vessels to be acquired from companies within the Metrostar Management Corporation group, Genco’s fleet will consist of 41 drybulk vessels with a total carrying capacity of approximately 3,516,000 DWT and an average age of approximately 5.8 years.

Mr Robert Gerald Buchanan president of Genco Shipping said that "We are pleased to further expand Genco’s leadership position in the drybulk industry with the acquisition of six high-quality newbuildings. Building upon our agreement to acquire three drybulk vessels in May, this acquisition is consistent with our portfolio approach to acquire modern vessels that enhance our fleet profile and improve our position to benefit from the strong demand for essential commodities such as iron ore and coal. As we have in the past, we intend to seek opportunities to lock away our newly acquired vessels on attractive time charters prior to their delivery."

Paranapanema board approves capital increase to reduce debt

BNamericas reported that the board of Brazilian mining and metals group Paranapanema approved a capital increase on June 13th 2008 aimed at reducing the company's debt.

Paranapanema in a statement said that it will raise at least BRR 381 million (USD 234 million) by issuing roughly 83.8 million common shares and a maximum of BRR 645 million by issuing around 142 million common shares,

With the increase the group's share capital would rise to a maximum of BRR 1.61 billion.

US April steel shipment up by 6.3% YoY

The American Iron and Steel Institute reported that for the month of April 2008, US steel mills shipped 9.403 million net tons, a 6.3% YoY increase from the 8.849 million net tons shipped in April 2007 and a 2.7% increase from the 9.158 million net tons shipped in the previous month, March 2008.

A year to year comparison of year to date shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 4.4%
2. Automotive down by 2.2%
3. Construction and contractors’ products down by 2.9%
4. Oil and gas up by 7.4%

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

Rotterdam to take delivery of 11 more box cranes this year

It is reported that the leading European Port of Rotterdam plans to put a further 11 quay container cranes into operation, to cope with the growth in box traffic in recent years, particularly in the trade with Asia which is set to surpass transpacific routes this year.

Last year, the number of box cranes in operation at Rotterdam port stood at 92, with the new cranes pushing the number to 103 this year. This legion of cranes include 30 specialized cranes for inland and coastal shipping that require less investment than standard cranes and speed up the loading and unloading of containers.

This development makes Rotterdam the first port outside of Asia with more than 100 quayside container cranes in operation.

Nippon Steel to raise SBQ palte prices to record - Traders

Bloomberg reported that Nippon Steel Corp will raise contract prices of steel plate for domestic shipbuilders about 40% to a record.

According to steel traders, steel plate will increase by JPY 30,000 (USD 278) a tonne by September 30th 2008.

Nippon Steel said that it would raise immediate delivery prices for plate, used to make machinery and ships, by about 10% to JPY 110,000 a tonne as of this month. That gain followed a JPY 20,000 increase in April for the company's network of wholesalers.

Nippon Steel, which forecasts a 41% drop in annual profit, needs to raise prices to help offset a tripling of costs for coking coal and a surge of at least 65% in the price of iron ore.

Shipbuilders have accepted increases amid a boom in orders for vessels, driven partly by Chinese demand for iron ore from Australia and Brazil to make steel.

CSC to resume production of BF No 1

XFN ASIA reported that Taiwan’s China Steel Corp’s No 1 blast furnace is due to resume production today and the company's shipments will not be affected by the shutdown.

CSC in a filing with the Taiwan Stock Exchange said that production at the furnace has being suspended since June 7th 2008 after its cooling system was affected by a fire. The halt of operations at the furnace is estimated to cut company production by about 100,000 to 150,000 tonnes.

It said that but the company's inventory will meet demand and the incident will not affect shipments.

Steel inventories in US fall in May

According to the latest Metals Activity Report from US based Metals Service Center Institute, US and Canadian metals service centers, which rose from year ago levels in April, were lower again in May. Customers appear to be operating very close to the vest with no discernable momentum building in either direction.

Although inventories of both metals continued to be well below year-ago levels, US steel inventories rose slightly from stocks on hand at the end of April.

May shipments of steel products from US metals service centers fell 7.2%, to 4.36 million tons, from May 2007 levels. US steel shipments for the year to date of 22.06 million tons are 3.7% lower than shipments for the period last year. At the end of May, steel inventories totaled 12.54 million tons, 10.8% lower than a year ago and, at current shipping rates, equal to a 2.9 month supply.

May steel shipments from Canadian metals service centers fell 7.5% to 313,500 tons, bringing shipments for the first five months of the year to nearly 1.6 million tons, or 2.1% lower than during the same period of 2007. At the end of May, Canadian inventories totaled 1.08 million tons of steel, down 14.2% from a year ago and equal to a 3.4 month supply at current shipping rates.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

ArcelorMittal announces change of principal borrowing vehicle

ArcelorMittal announced that the principal borrowing vehicle of the Group will be ArcelorMittal, the ultimate holding company of the Group.

In June 2007, ArcelorMittal announced that ArcelorMittal Finance a Luxembourg governed corporate partnership limited by shares had become the principal borrowing vehicle of the ArcelorMittal Group.

On 27 May 2008, ArcelorMittal completed the issuance of a USD denominated issue of 5 year and 10 year bonds, consisting of USD 3,000,000,000 aggregate principal amount split equally between the 5 year and the 10 year issue. This bond issue is governed by the laws of the United States.

Further to this bond issuance, ArcelorMittal has determined that the most appropriate borrowing vehicle of the Group should be ArcelorMittal. As a result, future bonds are expected to be issued by ArcelorMittal, the ultimate holding company of the Group. Additionally, ArcelorMittal expects to transfer a substantial portion of the debt from ArcelorMittal Finance to ArcelorMittal. Bonds currently issued under the name of ArcelorMittal Finance are expected to remain outstanding until their final maturity date.

Tokyo Steel hikes sheet steel by JPY 2,000 per tonne

Tokyo Steel Manufacturing announced that it increases the selling price of sheet steel products by JPY 2,000 per tonne for distributors for July order.

Tokyo Steel said that the sheet steel hike represents increase for 7 months in a row while it keeps the long products price for the first time in 6 months.

The firm reduces the order acceptance of plate mill products in and after July through the year to secure materials for construction of new plant in Aichi

Prices of key construction materials in MEA up by 25% YoY

The recent study by the Dubai Chamber of Commerce & Industry shows that prices of construction materials are soaring again after a period of relative stability. This shows demand for construction materials has been growing faster than supply, causing shortages in some areas and subsequently affecting prices.

Due to the high consumption, steel prices have increased sharply in the local markets, increasing on an average of 22% in the first quarter of 2008 across the Middle East.

The study also shows that the average cement price in Dubai increased by more than 50% in March2008 and other construction materials that use cement as a component such as concrete and ready mix saw stiff price increases.

As most of the new construction projects in the Middle East are in the UAE, particularly Dubai, the cement market in the country is pressured to meet this huge demand.

(Sourced from Gulf News)

Bahrain to launch construction safety campaign - Report

Gulf Daily News reported that an alarming rise in the number of laborers killed on construction sites in Bahrain has prompted the government to launch a nationwide safety campaign.

During the first quarter of 2008 there have been 45 accidents on sites across the kingdom, with 12 of those resulting in a fatality. Thirteen of the cases involved laborers falling from heights.

Mr Sheikha Hanan bint Hassan Al Khalifa labor ministry relations director said that "Most of the accidents took place in the construction and industrial sectors highlighting the daily hazards facing workers."

Mr Sheikha Hanan said that the safety campaign would be launched at the beginning of next month to coincide with the introduction of the summer ban on working outside between noon and 4PM local time, with runs through to the end of August 2008.

Intekno Group may set up logistics centre in Qatar

Doha Times reported that Turkey based Intekno Group is keen to enter Qatar by initially establishing a logistics centre.

Mr Halil Kulluk president of Intekno said that "We are thinking of establishing a logistics centre to provide engineering, technology services and raw materials. What we want to do is not only limited to Qatar but for the entire Gulf region using Doha as the base." He added that Qatar’s location is ideal from a logistics angle because of its central location in the Middle East region.

Mr Kulluk said that his company is expected to begin operations in Qatar next year and made it clear the group is yet to find a suitable Qatari partner. He added that "Our mission is to improve the global competitiveness of industrial companies by enhancing their exports, transferring advanced technologies, improving their investment capabilities and establishing strategic alliances in the international markets."

Intekno identifies and promotes opportunities through strategic applications of technology and commercial capabilities and has wide a customer base in sectors such as metal, cement, contracting, mining, petrochemicals, glass, paper and financing. Apart from technology transfer activities, it also deals with international marketing of consumables and other sectors like steel, mining, electric and electronics, telecommunications and energy power plants.

Intekno’s activities range from steel and mining, financing and sugar extraction from herbs for nutraceutical and pharmaceutical companies.

Three bidders left in the fray for Salalah IWPP project

The race to build an independent water & power production project in Salalah has narrowed down to 3 contenders namely consortium of Mitsui Saudi Oger WJ Towell, International Power Mubadala National Trading Company and Sembcorp Utilities. Four other bidders that were pre qualified to participate in the competitive bidding process.

According to officials, evaluation of the bid offers submitted by the 3 remaining contenders will take several months before authorities name one of the parties as its preferred candidate for a long term concession covering the design, development, financing, construction and operation of the IWPP.

The process is due to be completed during the course of this year with a view to securing full availability of the plant by early 2011. Some early power from the Salalah IWPP is expected to be available from 2010. The selected developer will be invited to build a Greenfield IWPP of around 400 MW of power generation capacity and 15 million gallons per day of desalinated water capacity. A suitable site located between Taqah and Mirbat in Dhofar Governorate has been identified for the establishment of the IWPP.

The project will help cater to the burgeoning energy and potable water requirements of Dhofar Governorate. Salalah, already a promising tourist destination, is attracting sizeable investments in tourism projects, including a major integrated tourism development. A number of large scale industrial projects under development or planned in the Salalah Free Zone, as well as population growth in the governorate, has also boosted demand for electricity and water.

Oman Power & Water Procurement Company, which is the sole purchaser of the entire output of power and water under the Sector Law, has identified a need for new power generation and water desalination capacity in the Dhofar region to be available by the summer of 2009.

Lamprell bags USD 186 million Riginvest contract

UAE based oil services firm Lamprell announced it has won a contract worth USD 186 million from Riginvest, which had exercised an option transferred to it by Norwegian oilfield services group Scorpion Offshore.

The Riginvest contract is for the construction and delivery of a completely outfitted and equipped 'LeTourneau' mobile offshore drilling platform that allows drilling in depths of up to 350 feet of water.

Scorpion earlier this month advised shareholders to reject a takeover offer by Oslo listed rival Seadrill, saying the price offered was inadequate.

Iran starts construction of Iraqi Al Sadr power plant

Tehran Times reported that Iran has started the executive operation of Iraq’s Al Sadr power plant.

It may be noted that Iranian contractors Sanir and Ameran Ofoq companies have won the tender for constructing a gas fed power plant with 315 MW capacity in Iraq’s Al Sadr city, amid fierce competition from China and Europe. Iran’s MAPNA Company is also responsible for providing the plant’s equipment including two gas-fed generator turbines with total capacity of 315 MW, transformers and spare parts.

The turn key project will be in the form of engineering procurement construction and will be done by Sanir and Ameran Ofoq companies. The project will be implemented in 2 years. The first unit will be completed 22 months after the land is given to the Iranian contractors and the other unit two month later.

Sanir and Ameran Ofoq companies should also provide a 132 KW post and 60 apartment units in the plant’s area. The project’s letter of credit has been opened and soon after the Iraqi side provides the land.

Al Rostmani eyeing majority stake in GHCL

BS reported that Al Rostmani group is planning to pick up a majority stake in Gujarat Heavy Chemicals Limited for an estimated investment of INR 700 crore.

While the promoters of GHCL are looking at offloading 15% stake to Al Rostmani, the conglomerate is looking to acquire 35% stake followed by an open offer of 20% to the public. The promoter group currently holds close to 47% stake in GHCL.

The offer price is expected to be around INR 200 a share, the price at which the conversion of the company's FCCB warrants is due. The warrants were issued in September 2005 and the conversion was to take place at INR 197 a share by March 2008. At an offer price of INR 200 a share, GHCL will have a market capitalization of around INR 2000 crore.

Mr Dalmia will continue to be the group chairman even if Al Rostmani gets hold of majority stake in GHCL. Al Rostmani might put a couple of directors on the board if the deal gets through.

GHCL, which started off as a soda ash company, later diversified into home textile manufacturing. In 2006, GHCL acquired Rosebys and entered the specialized retailing business overseas. It followed it up with the acquisition of institutional textile distribution firms in the US. The idea was to become a fully integrated home textile company with presence across spinning, weaving, product design and development, sourcing and distribution to retail stores.

Al Habtoor and Murray & Roberts to construct Trump Hotel

Arabian Business reported that Dubai World owned Nakheel has awarded a JV of Al Habtoor and Murray & Roberts a contract worth USD 790 million for the construction of the Trump International Hotel and Tower on the Palm Jumeirah.

Construction of the project will begin in July 2008 with a completion date set for May 2011. Work involves a 62 storey structure, which is set to become a focal point of the Palm Jumeirah. The 270 meters design, which has a total gross built up area in excess of 250,000 square meters, will feature two towers that rise above the Palm Monorail and central park.

The development comprises a unit mix of 378 hotel rooms and suites, 385 condominiums, 12 townhouses, and 4189 square meters of retail and 5574 square meters of office space. Trump International Hotel and Tower Dubai is the only planned mixed use development in Dubai under the Trump name. The project is the first JV between Nakheel and The Trump Organization.

Al Habtoor Leighton Group was established following the merger of Al Habtoor Engineering with the Arabian Gulf operations of Leighton International. The new entity immediately became the UAE's largest construction group, with revenue of over USD 1.6 billion in 2007.

Murray & Roberts is a South African construction and engineering group specializing in a number of regions across the world including the Middle East.

DIC completes 40% of 5 labor villages

Dubai Industrial City said that its 5 labor villages being built in Dubai are about 40% complete. It added that 2 of the villages are expected to be ready by the end of 2008.

Mr Rashed Al Ansari VP of DIC said that 5 villages will accommodate 62,500 supervisors and laborers. He added that "Each village will have 26 residential buildings with the capacity to accommodate 12,500 people. We are investing more than AED 1 billion in this project and have completed 40% of the construction work across all 5 villages. Two will be ready by the end of 2008 and the remaining will be operational by the first quarter of 2009."

Mr Ansari said that "We are not building residential buildings for laborers. We are developing entire villages that offer residents an easier and pleasant living environment along with a wide range of services and facilities from entertainment to shopping and basic amenities such as medical, security and civil defense services. We are constructing 230 buildings across the 5 villages. All the buildings are equipped with central air conditioning. Each village features 7 restaurants in addition to sports areas dedicated to football, volleyball and cricket. The villages will have a supermarket, shops, a mosque, landscaped walkways, post office, and designated bus stops for labor transport."

He pointed out that all villages will be uniform in design and layout, offering 3 types of rooms according to the requirements of companies. He said "We are building flexible accommodation that offers single rooms for supervisors as well as rooms that can accommodate 5 people and larger ones for eight laborers. The idea is to ensure that we offer them good living standards and facilities."

The 560 million square foot Dubai Industrial City comprises 6 industrial clusters. It is located next to Dubai World Central's Al Maktoum International Airport and is close to Jebel Ali Port and Free Zone with easy accessibility to major highways such as Shaikh Zayed Road, Emirates Road and the Dubai Ring Road.

Petrogas wins deal to operate small oilfields in south Oman

Gulf News reported that Omani oil exploration firm Petrogas has led a field of nearly 200 local and international bidders to win a contract to operate a cluster of small oilfields in south Oman. As per report, the contract for the Rima cluster was awarded by Petroleum Development Oman, which is majority owned by the government.

Petrogas, which is a subsidiary of the privately owned MB Petroleum, will operate the cluster jointly with Oman Oil Company, the energy investment arm of the Omani government.

Mr John Malcolm MD of PDO hailed the Rima Small Fields Service Contract as an effective way to increase production from the cluster of fields. He said that "The 15 year service contract is aimed at raising in a quick and cost effective way, the production levels of these fields, which contain more than 500 million barrels of oil in the ground and are currently producing about 2,000 barrels of oil per day. The contract will allow PDO to dedicate its resources to the development of larger fields, which currently account for the vast majority of its oil production and to the execution of its complex enhanced oil recovery projects."

Dr Mohammad Bin Hamed Al Rumhy Omani minister of oil & gas said that "I am very happy to see that two Omani companies have won this important contract to develop the Rima fields. The contract was awarded on the basis of a highly competitive open tender in which more than 200 companies from both Oman and abroad participated."

PDO, which produces nearly 80% of Oman's crude oil and almost all of its natural gas output, is focusing its resources primarily on large fields within its sprawling Block 6 concession. With many of its productive fields maturing, the company is turning to resource intensive enhanced oil recovery techniques to reverse a decline in oil output. At the same time, it is also partnering with oilfield service providers to develop and operate its smaller producing assets.

Iran Uzbekistan trade value hits USD 650 million

Mehr News Agency reported that the trade volume of Iran and Uzbekistan stands at USD 650 million which can reach USD 1 billion in the future.

Mr Seyed Mohammad Beheshtian Iranian commercial attaché to Uzbekistan said that "Iran is Uzbekistan sixth trade partner."

Mr Beheshtian said that Uzbekistan, with a population of 27 million, is located in Central Asia and due to its common cultural background is considered as a great potential for Iran’s market.

Munda Dam Project delayed for 2 years due to bottlenecks

Daily Times reported that Munda Dam Project has delayed for 2 more years, consequently would result an escalation cost of USD 1.75 billion against the estimated cost of USD 1.2 billion.

Mr Ahmed Masood Chaudhry MD of Munda Multipurpose Dam Project said that the project had been delayed due to bottlenecks. He added that the MMDP sponsor, Munda Hydropower Limited has refused to work in JV with Water & Power Development Authority under public private partnership program.

He said the sponsors have obtained injunction from Islamabad High Court through an order dated June 4th 2008 that has directed the federal government and its agencies of Private Power & Infrastructure Board and WAPDA. He added that they had spent USD 15 million on the feasibility report on the project that was formally approved by PPIB and PPIB issued their approval letter to MHL on November 11th 2006.

He said that MHL was issued a letter of interest to develop MMDP located on River Swat in the NWFP. The project envisages generation of 740 MW of electricity and has a storage capacity of 1.2 million acre feet to augment the irrigation requirements of NWFP and mitigation of flood losses created by Swat River. In accordance with stipulations of the approval letter, MHL was to approach National Electric Power Regulatory Authority for tariff negotiations.

However, the Ministry of water & power prevented the sponsor to do so on the plea that the ministry was considering alternations in the feasibility developed dam parameters. Ministry of water & power failed to intimate the sponsor the extent and nature of alternations which was most essentially required to study and change in the design implications based on site conditions.

He further added that sponsor was kept in dark and suspense for more than 15 months after the feasibility approval and were unable to proceed with the project development, despite the fact that the sponsor had amply demonstrated their financial strength to develop the project including firm commitment letters from two independent international financing agencies making commitments for providing financing for the entire MMDP up to USD 1.2 billion.

Saudi contractors see end to shortage of iron, steel & cement

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 Corp.’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 National Contractors Committee said that the government has the authority to regulate the export of iron because the manufacturing country has the first right for its products.

SA carmakers eyeing to setup manufacturing units in UAE

UAE Business 24-7 reported that leading South African car firms are looking for partners in the UAE so they can expand their businesses to the Gulf market by setting up manufacturing facilities in the region.

Mr Norman Lamprecht executive manager of National Association of Automobile Manufacturers of South Africa said that "South African automobile companies and spare part producers are looking for investment opportunities in the UAE and GCC markets. As the information is sensitive I cannot disclose details of the companies engaged in the talks."

South African company Hannibal Safari Equipment Company, which specializes in making four wheel drive accessories, is serious about entering the UAE market.

Hannibal's Mr Jacques Willing said that the accessories were not at present available in the UAE but the company was planning to launch them here. He added that "These products for all the major 4x4 brands would have a good market in the UAE and GCC where the desert tents and accessories would be in great demand. Our business options include a local facility to make these products."

The South African car sector is attracting a number of global companies that are looking for a cheaper manufacturing base as part of their African expansion plans. The South African government wants to increase production to 1 million vehicles per year.

South Africa produces about 80% of the new vehicles sold in Africa. Eight major global automobile companies manufacture cars, both light and heavy vehicles in South Africa with a local content of 60%.

Iran rebar prices surge last week

It is reported that Iran's current price of 12mm to 25mm rebar has reached USD 1,220 to USD 1,240 per tonne, showing an increase of USD 70 per tonne from last week.

In addition, Esfahan Steel is offered USD 1,165 per tonne and Azarbaijan's price is quoted at USD 1,158 per tonne. Although most of mills in Iran have withdrawn from offering and waiting for stable market, the price of rebar is keep rising.

In the past few weeks, Iran's price was stable, but the global price is much higher Iran's price.

(Sourced from Yieh.com)

Drake & Scull wins EPC contract for cooling system within Hadeed

Drake & Scull International recently announced that Zamil Industrial has awarded it the engineering, procurement and construction contract for the district cooling system within Saudi Iron & Steel Company.

In November 2007, Zamil Industrial, supported by Energy Central Saudi Arabia, signed a 22 year energy performance contract with SABIC for the complete outsourcing of process and comfort cooling and building plant to supply up to 20,000 tons of refrigeration at Hadeed.

Everest Metal Industries Q1 2008 net sales up by 58% YoY

Everest Metal Industries has posted record sales of AED 10.7 million for the first quarter of 2008 up by 58% YoY and expects sales to grow by another 57% YoY to AED 12.5 million for the second quarter of 2008.

Mr Yadu Saharia VP of Everest Metal Industries said that "We are pleased to report a strong quarter, which we see as a tribute to the way we have repositioned our company over the past several years. Our record performance, despite the challenges in the global economy, reflects the strength of our products in the regional market, and the benefits of diversity in the many end markets we serve."

Mr Saharia said that "Early this year, we increased our production capacity by 50% to meet the increasing demand. While keeping highly focused on the needs of our customers in the UAE, we are planning to leverage our growth in the UAE to expand into the gulf region."

Established in 2003, EMI is the region's leading manufacturers and suppliers of cable management solutions. EMI's sales offices are located in Sharjah, Dubai and Abu Dhabi, while its regional distributor network is based in Oman and Qatar.

Dubai Metro to start test runs from September 2008

Khaleej Times reported that UAE based Roads & Transport Authority will begin testing Dubai Metro from September 2008, on tracks which will run for 11.4 kilometers starting from Jebel Ali underground metro terminal to Ibn Batuta Metro Station.

Mr Mattar Al Tayer executive chairman of the board and executive director of RTA announced the scheduled testing of Metro Dubai as he toured the project, which included a workshop that showcased the final touches inside a number of Dubai Metro stations and Jebel Ali Metro Terminal.

The test run will go through four stations from Jebel Ali terminal before it reaches Ibn Batuta Metro Station. The tests will continue until the Metro's inauguration in September 2009. During the tests, trains will undergo technical assessments under automated and manned modes of operation. They will be connected to direct 750 volt with train enabled to run 90 kilometers per hour on the trial track. The procedures will check sound, vibration and the degree of electro mechanical alignment.

Mr Al Tayer said that "This test will help us assert environment safety measures and help us discover problems and resolve them before the Metro begins commercial service for passengers."

He added that the initial stage of Dubai Metro trial will be conducted under the name passive test during which a passive train carriage will be put on the trial track. Once the first test is completed, the second stage will start under the name active test. This will be conducted with no passengers onboard the train.

GCC countries pump USD 100 billion into Arab states

According to a report by Dammam based Federation of GCC Chambers of Commerce & Industry, UAE and other Gulf oil producers have pumped in excess of USD 100 billion in investment into other Arab states as they veer away from the industrial countries because of an economic slowdown.

The report said that strong oil prices have also sharply boosted the fiscal surplus of the six Gulf Cooperation Council states and are expected to push up their economies by more than 27% this year to a record USD 1 trillion.

The report noted that the continued economic boom means the six countries, which pump around 16 million barrels per day of crude oil, would remain under heavy inflationary pressure, adding that the problem is complicated by the peg between the currencies of most member states and the ailing US dollar.

The report said that "This will allow them to further bolster their financial reserves and boost investments. But the economic slowdown in most Western countries is expected to force GCC countries to keep diverting part of those investments to other regions. Some Middle Eastern countries have already benefited from these capital flows, mainly Egypt, Morocco, Tunisia, Algeria and Jordan."

According to the Institute of International Finance, the incremental capital flows into those countries reached nearly USD 60 billion during 2002-06. Independent estimates show such flows grew to around USD 85 billion by 2007 and exceeded USD 100 billion by early 2008.

According to the Federation, those investments accounted for nearly 11% of the GCC's total capital outflow of nearly USD 1trillion during the past 7 years. GCC economies are expected to race by around 27.9% in 2008. The surge will also allow the six nations to record their highest combined current account surplus of 31.2% of the GDP this year compared with nearly 28% in 2007.

Dolphin Energy to manage ADNOC pipeline network

The Peninsula reported that Abu Dhabi National Oil Company and Dolphin Energy Limited have signed a long term agreement for Dolphin to lease and operate ADNOC's eastern gas distribution system in Abu Dhabi. This well established pipeline network will be managed by Dolphin Energy for 25 years.

The lease agreement was signed at ADNOC's headquarters by Mr Yousef Omair bin Yousef CEO of ADNOC and Mr Ahmed Ali Al Sayegh secretary general of Supreme Petroleum Council and also Dolphin Energy CEO.

Mr Al Sayegh said that "We are grateful to both ADNOC and GASCO for their support at every stage of Dolphin's involvement with the EGDS. This lease agreement now enables Dolphin to directly manage every link in its value chain, from gas production offshore Qatar through processing, transport via sub sea pipeline and overland distribution."

The EGDS is currently used to supply gas to ADNOC's customers in Abu Dhabi and Dubai and will be leased by Dolphin to deliver the company's processed gas from Qatar to customers across the UAE, and shortly to Oman. The lease agreement replaces a temporary access agreement and interim transportation agreements with ADNOC.

The EGDS lease agreement also specifies a direct swap arrangement where Dolphin Energy will deliver gas to ADNOC's customers on behalf of ADNOC and ADNOC will provide gas to Dolphin's customer on behalf of Dolphin.

Dolphin Energy's major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar's North Field and transportation of the dry gas by sub sea export pipeline from Qatar to the UAE, which began in July 2007.

Doha to get more than 800 towers in 10 years – Report

The Peninsula reported that Qatar's construction sector is set to reach QAR 33 billion by 2012 and with over 800 new towers slated to go up in Doha over the next 10 years, the market has been identified as one of the busiest construction areas in the world.

As the government of Qatar continues to strengthen its sustainable design initiatives in the construction sector, Autodesk and ProMedia are poised to highlight the outstanding features of the new Autodesk Revit solutions and AutoCAD 2009 software to both government agencies and private developers.

Designed for Building Information Modeling, the Revit solutions are comprised of Revit Architecture, Revit Structure and Revit MEP, which enable testing and analysis of new and better materials, while considerably reducing waste production. Providing efficient conceptual design, drafting and detailing solutions, AutoCAD 2009 facilitates efficiency and productivity by improving the output of veteran users while allowing new users to become prolific more quickly.

Mr Manish Bhardwaj field marketing specialist at Autodesk Middle East said that "As we seek a stronger presence in the region, we have made a decision to add ProMedia into our pool of resellers. We have confidence in ProMedia's capability to capitalize on the booming market in Qatar. At present, we are gearing up for a massive penetration drive in this market, and we are looking forward to aiding the Qatar Government's initiatives to enforce the implementation of sustainable design solutions for current and future developments."

Construction firms in Saudi hit hard by material price hikes

Mr Fadi Mujahed director of concrete producer Saudi Readymix said that Saudi construction companies are losing as much as 20% on project revenues because of the soaring cost of materials.

Mr Mujahed added that "Over the next 5 years, large and mega projects alone in Saudi Arabia will require an estimated 52 million tonnes of cement, according to our current estimates."

He added that strategic partnerships with building material suppliers are needed to avoid major disruption on construction projects across the kingdom.

Record oil revenues are fuelling a construction boom in Saudi Arabia where contractors are struggling to cope with orders to build new homes, refineries and factories. Saudi Readymix is one of the largest concrete producers in the Kingdom.

Emaar raises Burj Dubai height

Khaleej Times reported that Burj Dubai will be taller than previously envisaged, with height enhancement work already in progress. Construction of the 2 communication floors is ongoing and structural steel work has started