RCG opens office in India

It is reported that steel consultancy major Research & Consulting Group AG has opened an office at Mumbai in India in the beginning of May 2008. With the opening of Mumbai office, it has set footprints in almost all developed as well as emerging markets with offices at Düsseldorf in Germany, Kiev in Ukraine and Joint ventures in Brazil, China and Dubai.
As per report, it has registered a firm in India and has deputed Mr. Robert Meyer VP Asia to head the operations. RCG is eying emerging steel market in India to leverage its expertise in steel marketing filed and is also planning to use this office as global research center.

Mr Joachim Schroeder CEO of RCG said that “Establishing an additional office in India is the next logical step in our company development and philosophy. RCG wants to be close to the clients and due to the globalization in the steel industry we have to be present in each of the major steel regions worldwide. We are very keen to contribute to India’s future steel industry development.”

Mr Schroeder added that “In addition, we will develop Mumbai office as one of RCG’s major research centers leveraging India’s strong outsourcing perspective.”

Switzerland based Research & Consulting Group is an internationally active consulting firm, specializing in the steel industry as it has acquired profound knowledge of global steel industry through its many years of experience. RCG's clients are internationally operating companies, which are actively facing the challenges of increasingly intensive competition through wide spreading globalization. RCG works out integrated solutions together with its customers tailored to their needs.

Measures by Indian government to curb rise in steel price

Indian government through the initiatives by Mr Ram Vilas Paswan union minister of steel has tried hard to control the surge in domestic steel prices in India by meeting all the steel makers and announcing major policy decisions in last few months. The details of meetings and outcome in brief are as under

1. February 14th 2008 - During the interaction with major steel makers an appeal was made to review their last round of rise in price and in response to the appeal steel producers like SAIL, TATA Steel and JSPL rolled back prices by INR 1000 per tonne for TMT, rounds and bars and INR 500 per tonne for other steel products.

2. March 3rd 2008 - Steel Minister held discussion with all major steel investors including ArcelorMittal, POSCO, TATA Steel, Essar, Ispat and also SAIL, RINL to explore the possibility of expediting the ongoing as well as envisaged steel projects.

3. April 2nd 2008 - Ministry of steel held discussions with major steel producers assess the situations arising out of the rising steel prices

4. April 3rd 2008 - Ministry of steel held discussions with secondary steel producers to assess the situations arising out of the rising steel prices

5. May 1st 2008 - Another round of discussion with iron ore producers was held jointly by secretary steel and secretary commerce.

6. May 7th 2008 - The CEOs of major steel producing companies, namely, Steel Authority of India Limited, Tata Steel, RINL, JSW, Essar Steel, Ispat Industries Ltd. and representative of Jindal Steel & Power Limited met the Hon’ble Prime Minister and shared the government’s concern regarding the inflationary situation in the country and in accordance with the Prime Minister’s advice to contain prices, decided to take some measures

As a result of these discussions, Indian steel makers agreed to following cuts

1. Rashtriya Ispat Nigam Limited and TATA Steel agreed to roll back the prices of long products by INR 2000 per tonne;

2. The steel producers agreed to cut back the price of galvanized corrugated sheets by INR 500 per tonne.

3. Those producers, who have increased the prices in April, reduced the prices of flat products by INR 4000 per tonne. In addition, prices of rebars and structural where no increase was affected in April and May was also be reduced by INR 2000 per tonne.

4. These reductions will be applicable for all steel that gets consumed in India either directly or after further processing.

5. The Steel Producers will hold these prices for the next three months.

The steel makers also agreed to the following
1. Steel producers agreed to exercise restraint on export of steel products
2. The major producers agreed on a transparent pricing system through regular updation on their website.
3. The major producers agreed to increase allocation of steel to small and medium enterprise through the SSICs and NSIC, by 20% from 049 million tonnes to 0.6 million tonnes for 2008-09.
4. In addition to existing rebate of INR 550 per tonne provided out of Steel Development Fund, INR 400 per tonne of steel delivered to the SMEs through SSICs or NSIC will be borne by the producers towards defraying the cost of transportation to SMEs. 5. The steel producers agreed to enter price contracts for deliveries to SMEs for at least three months and directly service even smaller quantities to SMEs.
6. Similarly, the secondary producers also agreed to pass on any reduction in duty and taxes announced by the government, to the customers. The secondary producers also agreed to cut the prices of bars and rods.
7. The iron ore producers agreed to consider the reduction in iron ore prices and later informed about a reduction of the spot price of iron ore by INR 200 to INR 300 effective from second weeks of April 2008.

Indian government also took various fiscal and other measures for stabilizing the steel prices like exempting pig iron, non alloy steel and steel making inputs like zinc, ferroalloys and coke from customs duty; withdrawing DEPB benefits on export of various categories of steel products and bringing back railway freight on iron ore from classification 180 to 170 for domestic steel producers. In May, the Government imposed 15% export duty on semi finished products and hot rolled coils or sheet, 10% export duty on cold rolled coils or sheets and pipes, tubes and 5% export duty on galvanized steel in coil or sheet form in order to further curtail rising prices and increase supply of steel in the domestic market.

There has been an up trend in the domestic steel prices since 2006-07 and the trend accentuated since January this year. In between January and April this year the price of pig iron went up by more than 70%, construction steel like TMT and wire rods went up by more than 36% and HR coils went up by more than 40%. Rise in raw material prices, strong demand in the international and domestic market and up trend in the global steel prices have been some of the reasons cited by the industry for increase in the steel prices in the domestic market. The mismatch in demand and supply is considered to be the main reason on the demand side for the rise in steel prices.

Anti POSCO brigade all set for its third anniversary

SNS reported that the anti POSCO brigade is all set to celebrate the third anniversary of their protest movement even as the administration and company are getting ready to expedite the project work.

It may be noted that on June 22nd 2005, a MoU was signed between Orissa government and POSCO. However, the project work is running behind schedule because of the protests. The protest is spearheaded by POSCO Pratirodh Sangram Samiti, which claims it had spoiled company’s proposed foundation stone laying function on April 1st 2008 by successfully organizing the samavesh at Balithuta. As the government and the company are reportedly planning to lay the foundation stone during the last week of June 2008, the outfit now exudes confidence that it would spoil the face saving measure this time too.

Sources said that PPSS has solicited cooperation from various organizations, political parties, social activists and environmentalists ensure success of the protest. Meanwhile, 12 members of Bhusan coal mining sangharsa samiti led by Mr Radhasyam Baurdhia visited Dhinika, Patana and Govindpur village and interacted with members of PPSS.

They have reportedly committed to send hundreds of supporters from neighboring states like Chhattisgarh, Jharkhand, Bihar and Madhya Pradesh to join this protest meeting and other programs for protesting POSCO steel project.

The members also attended the public meeting at Dhinika, Gobindpur and urged upon the villagers to be united in fighting POSCO’s moves. They expressed that Sangharsa Bahinis have not allowed Bhusan company to lift coal from the mines area at Jamkina of Orissa Chhatisgarh border. They praised PPSS activists for not allowing POSCO to start its project work at Dhinika.

TATA rural BPO to come up near steel site in Orissa

BS reported that, in a conciliatory move towards educated locals who are agitating against TATA Steel's proposed 6 million tonne steel plant in Kalinga Nagar, the TATA group is setting up a business process outsourcing unit on the proposed site.

The rural BPO centre will be established by the TATA Business Support Services in partnership with TATA Steel Rural Development Society. To start with, it is expected to employ around 200 people.

Sources close to the development said that TATA has already recruited the first batch of the executives for the BPO unit, who are expected to undergo two months of training at ATA Business Support Services' headquarters in Hyderabad. ATA Business Support Services has developed a specialized training program in view the fact that most of the new recruits are not computer literate. It currently operates three rural BPO units that employ around 500 people in all.

The centre aims at handling the Orissa region front end and customer support works of group companies including TATA Teleservices and TATA Sky. The BPO unit will also provide services to other firms who have substantial operations in Orissa.

A TATA group executive in charge of human resources development said that "Opening the BPO unit in Kalinga Nagar will provide us access to many educated but unemployed youths in semi urban areas like Jajpur Road and Duburi which have a number of colleges and educational institutions in and around. The education level among the masses in these areas is comparatively high and the aspirations level of the local people is also very high. Although most youths in these areas are interested in higher end and computer related jobs, there was no opportunity in these places."

The group will initially run the BPO unit in the transit houses and rehabilitation set up established by the company in Kalinga Nagar, before moving into a dedicated building in next few months. The centre will start as a voice based BPO with focus on Bengali, Hindi and English languages other than Oriya.

Belgaum foundry cluster to start in August 2008

BS reported that Belgaum will soon have a foundry cluster as the work on the Belgaum Foundry Cluster is nearing completion and is expected to be operational in August 2008. The project started three years ago at an investment of close to INR 25 crore.

The project once completed will benefit 135 foundries and over 1,000 machine shops in and around Belgaum and hundreds of other units in the neighboring towns of Hubli Dharwad, Shimoga, Harihar and even Kolhapur and Shinoli in Maharashtra.

Mr Manoj Kulkarni CEO of Belgaum Foundry Cluster said that foundry units at BFC are expected to produce 160,000 tonnes of castings during the present fiscal, a growth of 60% over 2007-08 and generate a combined revenue in excess of INR 700 crore per annum, a growth of 75%. The exports are expected to touch INR 350 crore per annum, a growth of 700%. It is likely to generate employment to 12,000 persons.

Mr Kulkarni said that the cluster will also have modern software for 3D modeling, simulation and ERP for foundries will be made available to foundries. The foundry cluster will not only help improve the quality standards of material produced here but also protect ecological balance and conserve natural resources apart from growing exports. He added that "Our vision is to make Belgaum Foundry industry a global sourcing hub for castings and machined components by the year 2010. Despite slowdown in manufacturing sector and rising prices of steel and metal scrap we anticipate foundry units will register a healthy growth of 15% to 20% during the current financial year."

Foundry units in and around Belgaum are serving the automobile industry, general engineering and agriculture sectors. Automobile majors like Mahindra & Mahindra, Bajaj Auto, Ashok Leyland, TAFE, Caterpillar and engineering companies like Kiroskar Oil Engines Limited, Alfa Laval and Simpsons are some of the companies sourcing castings from Belgaum. The Belgaum foundries also export to countries like the US, Germany, Belgium and West Asia.

Indian carmakers see sharp fall in May 2008 sales

It is reported that, with input costs shooting up and a fuel price hike in the horizon, Indian carmakers have a tough task on hand luring in customers. While April 2008 was a relatively good month for carmakers in terms of sales, they are seeing a sharp fall in numbers in May 2008.

The biggest dent is in the small car segment, which accounts for 75% of the total sales. Carmakers blame the recent car price hike, high interest rates and the rising input costs of steel, aluminum and plastics. They said that the imminent fuel price hike will only add to their woes.

Mr Dilip Chenoy director general at Society of Indian Automobiles said that "It is bad times as fuel prices affect both automakers and auto consumers."

Carmakers are reluctant to offer heavy discounts to accelerate sagging sales as input costs have already put a lot of pressure on margins. Instead, some of them are thinking of bringing in cars, which use alternative fuels like CNBC and LPG.

Mr HS Lheem president of Hyundai Motor India said that "There is pressure. We are getting into LPG and CNG to combat this"

Even luxury car makers are feeling the pinch. Automakers for now have chosen to wait and watch and postponed new launches for the coming months.

SAIL BSL wins AIMA zonal business award

Ranchi Express reported that Steel Authority of India’s Bokaro Steel Plant team has won the zonal award for business management simulation contest, organized by All India Management Association. The BSL team outshone representatives of 29 reputed companies to bag the western zone winner award.

BSL had sent 4 teams as representatives at different zonal level competitions. The team including Mr C Srikanta deputy GM, Mr A Prakash and Mr Alok Verma senior managers and Mr S Sengupta deputy manager, emerged as the winner.
The wining team met senior executives of BSL including Mr V K Srivastava MD and executive directors Mr Jeevesh Mishra and Mr KSR Marti. Mr Srivastava wished the team good luck for future competitions at New Delhi on June 14th 2008.

The top two teams of the will get an opportunity to represent India in the As an Management Games 2008, The best team of the AMG would go on to contest in the Global Management Challenge 2008.

BG Infralogistics may get Haldia dock terminals deals

Exim News Service reported that ABG Infralogistics has outbidded TM International Logistics in partnership with Ripley & Co, Sical Logistics and Orissa Stevedores for securing the operation, handling and maintenance contracts for two berths at the Haldia dock. However, Kolkata Port Trust is yet to formally approve the selection of the company.

Once approved and the contract awarded, the actual operation is expected to begin within another 6 months. This is because substantial investments, running into a couple of hundred crore of rupees, might be needed on the acquisition and deployment of equipment 6 mobile harbor cranes, 50 pay loaders and 30 dumpers.

The Number 2 berth of the Haldia dock is newly built, commissioned a few months ago, while the Number 8 is an old berth. At both the berths, ABG Infralogistics will handle mainly coking coal import for Steel Authority of India and TATA Steel. The plan also includes launching trans loading operation at Kanika Sands, an uninhabited island off Orissa coast.

SAIL, which imported 4.6 million tonnes of coking coal through Haldia in 2007-08, has indicated to step up the throughput to 6 million tonnes in the current fiscal. For SAIL, Haldia is the most suitable port from rail transportation point of view for 4 of its plants located at Durgapur, Bokaro, Rourkela and Burnpur.

Depending on the success of negotiation with SAIL, ABG Infralogistics will approach the Orissa government for necessary clearance. Kanika Sands being off the Orissa coast, the Orissa government has made it clear that no operation could be undertaken in the island without its prior approval.

TATA Steel inks strategic partnership with Vietnam Steel

VNS reported that TATA Steel has entered into strategic partnership with Vietnam Steel to develop the iron and steel industry.

Mr Indronil Sengupta CEO of TATA Steel Southeast Asia projects during an interview with VNS said that "After more than 100 years of making steel and mining, four years ago, as part of its globalization strategy, TATA Steel began focusing on Southeast Asia. Today we are the most significant player in the region, with around 4 million tonnes per annum and manufacturing units in Singapore, Viet Nam, Malaysia, Thailand and the Philippines."

He added that "We are setting Viet Nam as our first priority in our investment strategy and will be investing in a large steel plant and iron ore mine. Viet Nam is now one of the fastest growing markets in Southeast Asia, with GDP growth estimated at about 8%."

He said "We consider Viet Nam the most significant market for TATA at the moment, particularly in the production of steel. TATA Steel has just entered the Viet Nam steel market with an investment project for constructing and operating one of the largest steel complexes in Viet Nam, in partnership with Viet Nam Steel Corporation. This steel complex will be located in Ha Tinh Province with an estimated capacity of 4.5 million tonnes per annum."

Mr Sengupta further added that "As one of the few steel companies that also mine iron ore, TATA Steel will participate in Thach Khe Iron Ore Joint Stock Company, through which we expect to contribute our mining experience. These are just TATA Steel’s very first steps into Viet Nam’s emerging market."

BSRM introduces Xtreme 5OOW steel in Bangladesh

The New Nation reported that Bangladesh Steel Re Rolling Mills Ltd has launched Grade 500W rebars, helping make constructions stronger, safer, more durable and also more cost effective in Bangladesh.

Using premium European technology, BSRM has set up a 375,000 tonnes per annum state of the art steel rolling mill to cater Bangladesh's demand for high strength steel. These rods have a yield-strength of over 500 MPa, which is 20.8% stronger than Grade 60 steel.

Bangladesh Steel Re-Rolling Mills Ltd, a unit of well known H. AKBERALI Group of Industries, having 55 years experience exclusively in steel making, is fully automatic steel re rolling mill in the country. The founder of the group was late Mr Akberali A Africawala and is now managed by his son Mr Ali Hussain Akberali and other sons & nephews.

Everest Kanto 2007-08 PAT up by 45% YoY

Everest Kanto Cylinder Limited recently announced its audited financial results for the year ended March 31st 2008.

As per the audited results, the total sales revenue for the year was recorded at INR 528.74 crore up by 24.4% YoY and profit after tax was at INR 104.27 crore up by 45% YoY.

The said profit after tax is after providing for foreign exchange derivative loss of INR 8.22 crore which occurred due to the fall in the US Dollar vis a vis other major currencies. It is also after a past year's one time tax adjustment of INR 3.32 crore.

NTPC 2007-08 fiscal PAT up by 8.01% YoY

National Thermal Power Corporation Limited has announced results for the January to March 2008 quarter. The sale of energy for the quarter is up by 21.39% YoY.

NTPC has declared audited net sales of INR 37,050 crore during 2007-08 up by 13.67% YoY as against INR 32,595 crore. The gross revenue crosses INR 40,000 crore during 2007-08 up by 13.11% YoY.

Profit after tax for the year 2007-08 is INR 7,415 crore up by 8.01% YoY as compared to INR 6,865 crore during the year 2006-07. Adjusted audited profit after tax is INR 7,569 crore up by 15.35% YoY as against INR 6,562 cores for 2006-07.

DPR for Nani Naroli power plant by June 2008

BL reported that the detailed project report for Gujarat Industries Power Company's 500 MW lignite based power plant at Nani Naroli in Surat district is under examination and the environmental report will be ready by early June 2008.

The project will entail an investment of INR 3,000 crore. Work on the project is likely to commence by September 2008 and will be operational by 2012.

Bids re evaluated for Sewri Nhava sea link project

BL reported that Maharashtra government is re evaluating bids given by consortium led by Reliance Energy and Sky Infrastructure for the development of the Sewri Nhava sea link project, also called as JRD TATA Bridge.

As per report, the consortium led by Reliance Energy had quoted a concessional period of almost ten years, while Sky Infrastructure has sought a concession period of 75 years before the bridge is handed over to the government. After a pitched legal battle REL, which was initially not allowed to participate in technical bidding for the project, was allowed to submit their proposal. After the financial bidding, the project was awarded to the REL.

The sea link project to link Nhava in Raigad district will be built at an estimated cost of INR 5,000 crore and the private builder can recover costs through toll collected during the concessional period.

J&K to sign MoU with GAIL for gas distribution network

BS reported that Jammu & Kashmir government will sign a MoU with GAIL India Limited for setting up of a city gas distribution network in the 8 districts of the state.

A source in Consumer Affairs & Public Distribution department said that "GAIL has submitted the revised and the final draft MoU, in connection with the project, to the state. The state law department studied the proposal and suggested minor modifications in it."

This new project will help in promoting usage of natural gas its fractions and polymer products. Subsequently, the state plans to introduce compressed natural gas for automobile use. Two capital cities of Jammu and Srinagar besides Kathua, Udhampur and Anantnag will be the immediate beneficiaries of this project.

The sources said that GAIL experts have already conducted a techno economic feasibility study based on the gas demand, potential and geographical conditions, distribution of gas and allied facilities in the state. SIDCO would act only as a nodal agency for facilitating and coordinating the activities of GAIL India Limited during the course of implementation of the project.

Essar Oil to expand capacity to 1 million barrels a day

Mr Naresh Nayyar MD of Essar Oil Limited said that it is planning to increase capacity to 1 million barrels a day and expects to tie up a USD 4.5 billion loan for the expansion in the next few weeks. He added that domestic refining capacity will be increased to 750,000 barrels a day by 2010 from 250,000 barrels and the rest will be added overseas in 3 to 4 years.

Essar Oil aims to narrow the gap with Reliance Industries Limited, which is using record profits to build the world’s biggest refinery complex. Essar’s Jamnagar refinery started last year, almost a decade after it was first planned, as the group’s steel unit faced losses because of falling prices of the commodity.

Reliance has built a plant in the same city that’s 3 times larger than Essar’s and will almost double capacity again with a new facility. Reliance Petroleum Limited, a unit of Reliance Industries, is building a 580,000 barrel a day refinery adjacent to the 660,000 barrel a day plant owned by its parent.

Mr Nayyar said that Essar will sell as much as 60% of fuel from its refineries in India after adding capacity. He added that "Indian fuel demand is rising and we hope the government will change its pricing policies."

Essar currently sells 65% of fuel to state run refiners including Indian Oil Corporation. It had to shut more than 90% of its 1,250 fuel stations because it could not match the prices charged by state run refiners. It plans to invest USD 290 million on exploration.

AP Coastal Corridor project approved

Exim News Service reported that Indian government has agreed to support the Coastal Corridor project covering the districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari district of Andhra Pradesh.

The state government will now look to develop a 4 or 6 lane road parallel to the existing national highway to support the port based industries.

According to the initial plan, the Andhra Pradesh government is looking at developing the 30 kilometers long road from Visakhapatnam to Gangavaram Port. The total distance that has been identified is 138 kilometers, but the state government have been asked implement it in a phased manner.

The total cost of the project, is yet to be finalized, but is estimated to be around INR 5,500 crore and in the first phase, around INR 1,100 crore has to be invested.

PTC India to raise USD 500 million

PTC India has announced that it planned to raise USD 500 million to meet its growing requirements.

Mr Tantra Narayan Thakur CMD of PTC India said that "The requirements are huge. But we also have to look at the market appetite. Any fund worthwhile should not be less than USD 300 million. But initially, we would go for USD 500 million and later raise it further."

Mr Tantra added that it is in talk wit h investors to understand market requirements, while declining to give any time frame.

Videocon plans 1000 MW hydel power project in Uttarakhand

BS reported that Videocon Group is planning to set up a 1,000 MW hydroelectric power project in Uttarakhand with an investment of INR 6,000 crore.

It plans to rope in a US partner for the proposed project.

AFCONS receives LoI to develop Simar port in Jamnagar

Exim News Service reported that AFCONS, the marine infrastructure wing of the Mumbai-based infrastructure major Shapoorji Pallonji, has received the letter of intent from the Gujarat Maritime Board to develop the Simar Greenfield port in the state. This marks Shapoorji Pallonji's foray into port operations and bulk cargo handling.

AFCONS had made its name as a specialist in providing infrastructure for ports, having constructed more than 150 marine structures throughout India. It will reportedly be investing INR 800 crore to develop and handle cargo at Simar.

The first phase of the project is proposed to be completed by 2012 and the second phase by 2020 with handling capacity of 10 million tonnes. A detailed study of the project will be initiated soon, with work set to begin immediately after obtaining the remaining clearances, including those related to the environment.

Simar is planned as an all weather direct berthing port with a 300 meters long jetty and offshore breakwater of 700 meters.

HPCL Q4 2008 net profit dips by 30% YoY

Hindustan Petroleum Corporation Limited has posted a profit of INR 384.5 crore in the January to March 2008 quarter down by 30% YoY as against INR 549.5 crore in January to March 2007 quarter.

Like its larger rival Indian Oil Corporation, HPCL also said that it would be forced to curtail product supplies to domestic market if a relief package to plug the company's ballooning oil subsidy bill was not finalized soon.

Mr Arun Balakrishnan CMD of HPCL said that "If there is no relief, we will have to restrict sales. Imports are finalized up to June 2008. For July, August and beyond, we will decide what to do next week."

HPCL saw a sharp increase in its interest costs during the year to INR 792 crore as against INR 423 crore in 2006-07 fiscal. It has also been forced to defer its major CAPEX plans such as expansion of Vizag refinery, which would have long term implications for the company.

HPCL announced a dividend of 30% involving a total payout of INR 118.86 crore including dividend tax.

Kirtania Port work to start in 3 months

The Telegraph reported that the construction of the proposed all weather port in coastal Balasore is likely to begin within 3 months. Chennai based Creative Port Development Private Limited would set up the INR 2187 crore deep water, mechanized port at Kirtania on the Subernarekha mouth in Balasore.

The first phase of the port with a handling capacity of 10 million tonnes per annum is expected to be commissioned by 2010 and ultimately its capacity would go up to 50 million tonnes per annum by the 10th year.

The port will not only handle Orissa cargo, but will also provide services to hinterland states. The port holds huge promise for neighboring landlocked states like Jharkhand, Chhattisgarh, Bihar, Bengal and the Northeast.

A senior officer of the commerce department said that the Chennai authority had submitted a detailed project report to the government and the construction would start soon after the land is handed over. The land acquisition process is in the advanced stages and is expected to be over within the next 3 months. But land acquisition for the 36 kilometer long Rupsa to Kirtania rail link is likely to take time.

Creative Port Development Private Limited signed a concession deal with the state on January 11th 2008, enabling the latter to share revenue at the rate of 5% from the first to fifth year, 8% from sixth to tenth year, 10% from the 11th to 15th year and 12% for the remaining 15. It would enjoy the concession for a period of 30 years, extendable by an additional period of 20 years.

In the first phase, Creative Port Development plans to build 4 berths and then add more till the capacity reaches 50 million tonnes per annum by the 10th year. The port would be developed on build, own, operate, share and transfer basis for 34 years and would include a dedicated rail cum road connection from NH 5 and a rail network at Jaleswar.

Meanwhile, Andhra Pradesh based Navyug Engineering Limited has evinced its interest in building a port at Astarang in Puri at an estimated cost of INR 6,000 crore. The proposed port is expected to be built in 3 phases with 2 coal berths, an iron and steel berth and another multi cargo berth. After the commissioning of the phase I, the port will have a cargo handling capacity ranging between 12.75 million tonnes and 23.25 million tonnes per annum. The final capacity would be around 47 million tonnes per annum.

L&T may form JV with Indian Railways

ET reported that Larsen & Toubro is looking at possibilities of forming JV companies with Indian Railways to manufacture equipment for the railways.

Mr JP Nayak board member & president operations at L&T said that "Indian Railways has 2 locomotive manufacturing units the Chittaranjan Locomotive Works and the Diesel Locomotive Works. There is a possibility of putting up another loco manufacturing unit in India and we will be interested in setting up a JV with the government."

Mr Nayak further said that Indian Railways has decided to set up new manufacturing capabilities through the public private partnership route and L&T is interested in floating a JV with them.

Meanwhile, L&T has decided to invest INR 25 billion during the current financial year to augment capacities at its growth centers. The money will be spent in augmenting facilities at all locations and for setting up a ship building yard in Tamil Nadu.

Uttarakhand to set up cable car project

It is reported that Uttarakhand tourism department is planning to invite private players to set up a cable car between the hill resort of Mussoorie and Dehradun with an investment of INR 700 crore.

Uttarakhand Infrastructure Projects Company, a JV between the state government and IL&FS, has been asked to prepare the DPR for the cable project.

The proposed cable car will start from Purkul village at the foothills of Mussoorie where a five star hotel and an amusement park are also being proposed.

Raniganj CBM block may start production by 2008 end

BL reported that, having successfully completed exploratory drilling, Essar Exploration & Production Limited has begun developing the Raniganj East coal bed methane block in West Bengal for commercial production of gas. The block is expected to start production in end 2008-09.

A senior company official said that "We have spudded the first production well at Raniganj on May 30th 2008. In the first phase, we will drill 15 production wells in the 500 square kilometer block in 6 months. Gas is expected to start flowing by the end of this year."

Essar E&P owns 100% interest in the block and has roped in Grades Energy of the US as the drilling technology partner. While a realistic production potential of the block can be made only at a later date, early estimates suggest the block has 42 billion cubic meters gas reserve.

Essar controlled Raniganj East will be the second CBM producing field in gas starved West Bengal. Great Eastern Energy Corporation Limited has already earned the distinction of producing India’s first commercial CBM from the adjacent Raniganj block in 2007.

MSRDC announces plans for 17 skywalks

Maharashtra State Road Development Corporation has announced plans to construct 17 aesthetically structured skywalks at high pedestrian density areas around railway stations by June 2009. The skywalks, along with a subway at Chhatrapati Shivaji Terminus, will be constructed in 2 phases and are expected to cost around INR 125 crore.

Mr Anil Deshmukh minister for public works department said that "We did a pre feasibility study comparing skywalks and subways and we found that skywalks are better. They are economical, will have aesthetic value and are easy to construct. Moreover, they are weather protected unlike the existing foot over bridges."

Nine locations have been identified by the MSRDC for the construction of skywalks in the first phase of the project. The consultancy for phase one has already been awarded while the notice for appointment of consultant for the second phase has been issued.

In the phase I, skywalks will be constructed at Nallasopara, Vasai Road, Ambernath, Goregaon, Kandivali, Vile Parle, Masjid stations and CST to Churchgate. The skywalks will have a height of 5.5 meters and the piers and super structure will be made of steel, with poly carbonate roofing. They will have elevators, toilets and exits.

Mr Deshmukh said that "The project is being funded by the MMRDA. The skywalks when completed will be run on BOT basis. There will be security guards and we will not allow ferrywalas. Some shops will be constructed on skywalks with adequate width."

Essar Oil bids for offshore block in Australia

BS reported that Essar Oil Limited has bid for an offshore block in Australia and is in talks with foreign companies to explore for oil in Egypt and Yemen in a bid to expand sources of crude for its refinery. It is also looking at exploration blocks in Kurdistan in Iraq.

Mr Naresh Nayyar MD & CEO of Essar Oil Limited said that "We plan to take our refining capacity from 210,000 barrels of oil per day to 1 million barrels of oil per day in the next 3 years. With the expansion at Vadinar, our capacity will go up to 700,000 barrels of oil per day. The rest we plan to achieve through acquisition of assets overseas."

The current capacity of Essar's Vadinar refinery is 10.5 million tonnes per annum, which it plans to increase to 34 million tonnes per annum in the next 3 years. It started commercial production from the refinery at Vadinar, Gujarat in May 2008. It will raise a fresh debt of up to USD 5 billion to fund its USD 6 billion refinery capacity expansion program at Vadinar.

Mr Nayyar said that "We plan to raise a fresh debt of up to USD 5 billion to fund the expansion. The funds would be raised through external commercial borrowing and rupee loans." He added that promoters would contribute USD 2 billion in two phases. It has already received in principle commitment from lenders for up to USD 4.3 billion.

Essar Oil is also partnering an American company to bid in the seventh round of the New Exploration and Licensing Policy scheduled on June 30th 2008.

Essar oil is also in talks with Cairn India to buy crude. Cairn will start production from its oil field in Rajasthan in the second half of 2009. At present, Essar sources crude from West Asia and Venezuela and currently sells 65 per cent of its production in India. Post expansion, the ratio would be around 60:40.

SEPB on Chapter 72 fully withdrawn

BL reported that the Indian government has withdrawn duty drawback benefits on all iron & steel, cement and rice shipments. Henceforth, exporters of these commodities will not be entitled to any rebate or refund of customs, excise or service tax paid on inputs used for their production.

In a notification dated May 29th 2008, the revenue department has said that no amount or rate of drawback shall be determined in respect of any goods falling within Chapter 72 or heading 1006 or 2523 of the First Schedule to the Customs Tariff Act, 1975. Chapter 72 covers all iron & steel products, while headings 1006 and 2523 relate to rice (including basmati) and cement, respectively.

The finance ministry specifies drawback rates for individual export items after factoring in broad parameters including standard input output norms pertaining to its manufacture, the share of imported vis a vis domestically sourced inputs and the prevailing rates of customs, excise and service tax on the inputs.

This move comes in the backdrop of a weakening rupee, which has made exports more remunerative. With the headline inflation rate crossing eight per cent, the Centre is keen to augment domestic availability of sensitive items and, therefore, discourage exports to the maximum.

US steel import in April up by 15% MoM

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2.944 million net tons of steel in April 2008, including 2.194 million net ton of finished steel up by 15% MoM and 4% MoM respectively/

Total and finished steel imports through the first four months of 2008 are down 7% and 9% respectively vs the same period in 2007. However, the monthly average for finished steel imports in the most the February to April 2008 period is up 8% as compared to monthly average in the previous November 2007 to January 2008. Total and finished steel imports on an annualized basis are down 4 and 5 percent, respectively, vs. 2007. On an annualized basis, total imports of steel in 2008 would be 32 million net ton.

Key products with large increases in April compared to the month before include:
1. Ingots and Billets and Slabs up by 64%
2. Hot Rolled Sheets up by 40%
3. Reinforcing Bar up by 30%
4. Wire Rods up by 92%
5. Plates in Coil up by 33%
6. Cold Finished Bar up by 32%

For the first four months of 2008, products showing increases vs. the same period in 2007 were
1. Line Pipe up by 26%
2. Oil Country Goods up by 18%
3. Heavy Structural Shapes up by 10%

Mr Dave Phelps president of AIIS said that imports increased in April to 2.943 million tons up 14.5% from March. While one month a trend does not make, this welcome positive development for April will bring some relief to domestic consumers, who have been struggling with low inventories and rapid fire price increases in 2008.”

He added that “Import arrivals in late 2007 and early 2008 were clearly too low for our cur customers given the inability of the domestic industry to meet total demand. The largest increases in April in finished products were hot rolled sheet and wire rods, both products that have been in tight supply in 2008. The large increase in slabs will likewise increase finished product deliveries for the domestic mills, adding needed steel to the marketplace.”

Mr Phelps concluded that “We hope that this trend will be sustained as we go deeper into the second quarter.”

Honda CEO fears more steel price hikes in US

Honda Motor Co's chief executive said that the Japanese automaker had been asked to pay more by a US steelmaker despite a contract agreed earlier this year and added he feared other suppliers may follow suit.

Mr Takeo Fukui said that Honda sets product prices with US steelmakers at the start of every year, but one undisclosed supplier recently imposed higher prices. He said that "It came all of a sudden, ignoring the contract.”

He added that "I am hearing that so far it is one company, but it may spread to others. It's an abnormal situation adding that Honda was probably not the only buyer targeted.”

Mr Fukui said that the price increase from US makers tended to be non negotiable. He said that "If we refuse, they cut off supply. We're in a weak position.”

Honda has just begun talks with domestic steelmakers after industry leader Toyota Motor Corp concluded negotiations with top supplier Nippon Steel Corp, likely agreeing on a price rise of more than 30%.

Why global steel prices are rising to unheard levels

The five main reasons for rising global steel price are

1. Demand
World steel demand continues to grow, notably from newly industrialized countries and this has put steel mills and their raw materials suppliers under pressure. While Chinese demand has abated slightly, it is still nearly double the global average.

2. Raw material costs
Constantly increasing demand puts pressure on steelmaking raw materials. Since 2004, iron ore prices have increased by nearly 300%, while coking coal prices remain at historically high levels.

3. Shipping costs
Driven by a shortage of vessels, shipping costs have escalated. By December last year, one-time charter rates were 250% higher than the 2006 average.

4. Energy costs
Like the rest of UK manufacturing, the steel industry has been experiencing high energy prices. Forward prices for both gas and electricity are showing high increases, with the UK electricity prices outstripping those on the continent.

5. Legislation
The extension of the EU's Emissions Trading Scheme may extend to even more steel companies and more installations. Environmental costs imposed will be passed down the supply chain.

ThyssenKrupp to close auto component plat at Janesville in US

Journalsentinel.com reported that a Janesville manufacturing plant is closing, resulting in the loss of about 140 jobs, as its German owners consolidate operations.

The ThyssenKrupp plant makes parts and production equipment used in automotive factories. Combined, the operations employ 175 people, including mechanical and electrical engineers, robotic engineers and administrative personnel.

Mr Matt Rhodes a company spokesman said that work at the plant will be phased out by September 30t 2008. Thirty four of the employees will be offered jobs with ThyssenKrupp Krause Inc and ThyssenKrupp Drauz Nothelfer in the Janesville area and Auburn Hills in Michigan near Detroit. The spokesman added that the remaining employees will lose their jobs and the plant will be sold.

Thyssenkrupp said that it is closing the Janesville operation, formerly known as Gilman Engineering, for competitive and cost reasons.

US sheet steel prices rise by 20% in May

Purchasing magazine reported that US Steel’s sheet prices rose by 20% in May 2008 surpassing April's record, after producers took advantage of lower imports and inventories to pass on higher raw material costs.

The magazine said that hot rolled steel sheet, the benchmark product used in cars and appliances, climbed to an average USD 1,020 a ton in May from USD 850 in April. Prices have gained 76% since January and are about 86% higher than a year ago.

The Metal Service Center Institute in a May 16th 2008 statement said that higher costs for iron ore and energy have raised the costs of making and transporting steel. A shortage of the metal in the US partly because of lower imports, has allowed producers to increase prices. Inventories at US service centers were 15% lower at the end of April than a year earlier.

Mr Tom Stundza executive editor of Purchasing in the report said that “Every time this year that steel buyers open the doors at receiving docks to receive new supplies, prices have been higher.”

According to the American Iron and Steel Institute, The US imports steel because domestic producers make about 30 million tons less than the 130 million tons the nation uses annually. Steel imports through the first four months of 2008 fell 9.5% to 8.4 million tons from a year earlier.

TATA Corus faces tougher pollution limits in IJmuiden

DutchNews reported that the province of Noord Holland must re examine the pollution restrictions imposed on the Corus steel works in IJmuiden in 2007.

The Council of State said some pollution levels had been set too low and no emission limits at all were set for a number of heavy metals such as chromium.

In addition, the province has been told to research the effect of burning waste material at the plant and using special filters on heavy metal concentrations. Noord Holland has been given five months to get the paperwork in order.

It said that a number of environmental organizations and local councils had appealed against the new operating license when it was granted in 2007.

The ruling comes just weeks after a Zembla program claimed children living close to Corus had up to 14 times higher levels of chromium and other metals in their system than normal. The environment ministry has set up an inquiry into the claims.

Corus in a statement said that it was studying the Council's ruling in detail.

VIA Rail purchases higher quality steel rails

VIA Rail Canada announced the purchase of new steel rails from Canadian Rail Track Materials to replace existing rails. The new rails will cover a critical portion of the tracks near Alexandria, Ontario, between Ottawa and Montreal and should be installed within the next few months.

Mr Paul Côté president & CEO of VIA Rail said that "The upgrade will provide better quality tracks, which should translate into a smoother ride and faster trip times for travelers on this route.”

Mr Cote added that "In addition, we are selling the existing rails, effectively lowering VIA's net cost and ensuring that the steel is reused.”

Mr Lawrence Cannon minister of transport, infrastructure and Communities of Canada said that "Funding improvements to the national transportation system are a priority for our Government. This project represents an excellent return on investment for the Government of Canada, VIA Rail and especially for passengers."

The contract, valued at close to CAD 3 million is part of the Government of Canada's five year, CAD 692 million capital investment plan announced last fall and is the result of a public tendering process.

Viohalco Q1 net profit in Q1 down by 54.3% YoY

Thomson Financial reported that Greek metal holding company Viohalco SA first quarter group net profits dropped by 54.3% to EUR 17 million on higher financials, interest expenses and a higher effective tax rate, as well as lower contributions from subsidiaries.

Viohalco’s first quarter EBITDA decreased by 32.8% to EUR 85.8 million due to sharp increase in steel scrap, copper and aluminum prices, as well as higher energy and transportation costs.

Group sales for the first quarter fell by 4.3% to EUR 917.1 million due to lower volumes from the slowing residential sector in Greece, and unfavorable commodities environment, lower product price increases and a depreciating US dollar.

Dallas City Council passes tougher scrap metal law

Recycling Today Magazine reported that the Dallas City Council has voted unanimously on a measure that will tighten the restrictions on scrap metal recyclers in the city. The City Council approved the measure on May 28.

The measure, which will go into effect June 3rd 2008, initially had a host of stipulations, including the following:
1. Requiring increased record keeping for scrap metal dealers
2. Requiring photographs and fingerprints of the seller
3. Requiring the metal to be delivered in a motor vehicle to a recyclers’ place of business
4. Requiring a five day hold on purchased metal
5. Requiring proof of ownership or authority to sell catalytic converters
6. Making changes to conform to state law.

While the measure passed, local press reports note that one stipulation requiring recyclers pay the seller by check, rather than cash is still to be debated.

The report added that the ordinance punishes violators with a fine of up to USD 500. Aluminum food or beverage containers are generally exempt from the ordinance.

Nordex to invest USD 100 million to set up US production

Reuters reported that German wind turbine maker Nordex has earmarked USD 100 million to set up a production site in the United States in the years ahead to meet rising demand from the region. The first US assembled turbines are expected to hit the market next year.

Mr Thomas Richterich CEO of Nordex said that "We expect Europe, Asia and the United States to each account for one third of demand. Over the next few years, we want to generate around 20 percent of our sales in North America.”

He added that in a first step, Nordex plans to set up a wind turbine assembly site with an annual production capacity of 750 MW by 2012, but has not yet chosen a location. In a second move, Nordex plans to establish its own rotor blade production facility as of 2010, for which it set aside two thirds of the USD 100 million investment sum.

Mr Ralf Sigrist president of Nordex USA Inc said that "We are looking for a centrally located facility, with everything pointing to a location in the Midwest.”

MSI General to build wire plant for Charter

It is reported that MSI General Corp has been selected to design and build a 160,000 square foot plant in the Menomonee Valley for Charter Wire, which is moving from the 3rd Ward.

The Oconomowoc general contractor said that it will build the estimated USD 20 million plant between Wheelhouse Road and Milwaukee Road and the construction is planned to start in August 2008, with a move in date slated for late 2009.

Charter Wire is a division of Charter Manufacturing of Mequon. It is a major supplier of shaped steel wire and bar products for industries.

EU welcomes RWE proposal to sell gas transport net

Reuters reported that the European Commission has welcomed proposals by RWE to sell off its gas transport network to settle an ongoing antitrust case.

The Commission said that "The European Commission welcomes structural remedies offered by the German energy company RWE.”

The Commission said that it would send the proposals to customers and competitors for their review. The Commission hoped to approve a binding settlement and then would not pursue the antitrust investigation."

Altri Q1 net profit decreases by 48% YoY

Thomson Financial reported that Altri net profit fell by 48% to EUR 5.6 million in the first quarter from EUR 10.6 million in the first quarter of 2007 pressured by rises in raw materials costs.

Altril’s first quarter revenue edged up by 2% to EUR 108.58 million from EUR 105.95 million a year earlier. EBITDA decreased by 15% to EUR 24 million from EUR 28.32 million in the end of the first quarter of 2007. It added that first quarter CAPEX came in at EUR 54.4 million most of which was invested in the pulp sector.

Altril in a statement said that its industrial activity is influenced by raw material cost price evolution and this influence was particularly noticed in 2007'.

Coal mine accident at ArcelorMittal in Kazakhstan

ArcelorMittal has confirmed that that an accident occurred this morning at its Tentekskaya Mine in Kazakhstan.

It said that “100 people were working in the mine when the accident occurred at approximately 4AM Kazakhstan time this morning. And 95 were safely evacuated. At present 5 people are still missing.”

The release said that “Although rescue services are on site and every effort is being made to locate those missing, it is believed that tragically they have died as a result of the accident.”

The release added that “Senior members of ArcelorMittal management are currently present at the mine. A full investigation will be launched into the cause of the accident. However at present the company believes that there was no explosion, as has been reported early today. Further information will be announced as it becomes available.”

Mr Frank Pannier CEO of ArcelorMittal Kazakhstan said that “I deeply regret that there has been an accident in one of our mines in Kazakhstan. Fortunately the evacuation procedure worked well and we have managed to bring 95 people safely to the surface. Nevertheless it looks as though there have been 5 tragic fatalities as a result of the accident. At this moment I do not wish to speculate about the causes of this accident, but I must state that my absolutely priority as the new CEO here in Temirtau is to ensure the safety of our workers and ArcelorMittal will continue to invest heavily in the ongoing modernization of the mines.”

CSC imports bonus scrap at USD 788 from USA

It is reported that Taiwan’s China Steel Corp has bought bonus scrap steel with the purchasing price of USD 788 per tonne CIF from Schnitzer Steel Industries Inc. The price of heavy melting scrap was USD 768 per ton CIF.

The price of bonus scrap was USD 10 per tonne higher than the price of heavy melting scrap, but this deal has USD 20 per tonne price differences. This reflects the excellent scrap steel shortage in American market.

South Korean car sales in H2 expected to rise by 6.8%

It is reported that domestic sales by Korean carmakers are expected to increase nearly 7% in the H2 of 2008 despite unfavorable conditions such as sky high oil prices.

The Korea Automotive Research Institute predicted in a report said that total sales by industry leader Hyundai Motor Co and four other players are likely to climb 6.8% to 689,000 units in the July to December period.

The Institute said that the solid second half gain will be powered by the rollout of various new models and strong demand for new cars from motorists who own old vehicles.

According to the report, sales of mini cars and subcompact cars are likely to slow down in the second half, while those of intermediate cars are predicted to edge up. It said that sales of large cars are projected to remain robust, but their growth momentum will probably taper off.

The Institute said that the exports of domestically made cars are likely to reach 1.54 million units in the second half compared with 1.46 million units in the first six months of this year. Soaring international oil prices have been a drag on the domestic automakers as motorists are trying to tighten their belts.

Record ship orders help South Korea to post USD 1 billion trade surplus in May

According to a South Korean government report, a record surge in exports of ships in May helped South Korea post its first monthly trade surplus in six months.

The Ministry of Knowledge Economy said that exports rose 27.2% YoY to USD 39.49 billion last month, while imports jumped by 28.8% to USD 38.45 billion for a surplus of USD 1.04 billion. Last month marked the eighth consecutive month that exports grew by double digits, while the average daily export volume climbed 32.9% YoY to USD 1.76 billion.

It said last month's ship exports shot up 56% YoY to reach an unprecedented USD 4.90 billion. The ministry said that exports of a USD 1.3 billion floating production storage and offloading vessel to Nigeria and seven liquid natural gas carriers played a key role in bolstering exports. Each LNG carrier costs over USD 100 million. In the first five months of this year, ship exports hit USD 15.96 billion. In 2007, total ship exports reached USD 27.77 billion.

The provisional report also said exports of petroleum products rose 118% while those of mobile communication equipment, steel and general machinery all gained more than 20% from the same one-month period of the previous year.

The report added that exports to member states of the Association of Southeast Asian Nations and Central and South America jumped by 45.2% and 44.3% respectively. Shipments to China and Japan respectively climbed 32.6% and 17.4% while those to the United States were down 5.4%.

Eskom inks transformer supply contract with Powertech

It is reported that transformer manufacturer Powertech Transformers has signed a seven year ZAR 1.37 billion contract with Eskom for the supply of transformers in a range of sizes.

Mr Eskom GM of procurement and supply chain management of Eskom said that it was critical for Eskom to look at long term relationships with its suppliers and that a further extension of three years could be added to the contract, depending on whether Powertech Transformers complied with its minimum requirements of constant improvement.

He added that Eskom would, on a quarterly basis look at whether Powertech Transformers was complying with the minimum key performance indicators of quality of supply and the continuous delivery of transformers.

Mr Leon Viljoen CEO of Powertech Transformers said that "We are fully committed to ensuring the successful execution of this contract and for me that means delivering high quality transformers on time every time.”

He added that the company was continuously upgrading its manufacturing facilities and was training its staff on a regular basis, which ensured that it was improving its abilities on a continuous basis.

South Korean shipyards gain on accident in China

Bloomberg reported that Samsung Heavy Industries Co, the world's second biggest shipbuilder, paced gains in South Korean shipyards in Seoul on expectations they will attract orders after an accident at a Chinese yard last week halted production.

Hudong Zhonghua Shipbuilding Co, a unit of China's biggest shipyard, said on May 30 that two 600 tonne cranes collapsed, killing three people and injuring two. The company hasn't given details on lost production time or costs. The cranes are used to move blocks or steel structures that make the hulls of vessels to docks. They are also used to load heavy parts into ships under construction.

Mr Lee Jae Kyu an analyst at Mirae Asset Securities Co in Seoul said that “It will probably take six months to a year to get those cranes replaced and it will be inevitable that vessel deliveries will be delayed. Delays will hurt the creditability of the Chinese yards and could prompt ship owners to look to rivals in Korea.”

According to London based Clarkson Plc, Hudong Zhonghua is the world's 11th largest shipyard with a backlog at the end of April of 2.42 million compensated gross tonnes.

Long product prices up in Taiwan

It is reported that Taiwan’s long product prices soared as a whole last week and continues its upward trend.

The price of steel rebar has been rose by TWD 700 per tonne last week, as the new price is between TWD 31,200 per tonne and TWD 31,700 per tonne.

China Steel Corp announced that its new price of third quarter. Price of steel bar and wire rod has increased by TWD 4,830 per tonne. Price of CHQ wire has reached TWD 29,750 to TWD 30,000 per tonne.

Besides, Feng Hsin Iron and Steel raised its section steel prices of angle bar, channel steel, flat bar and square bar by TWD 1,000 per tonne. Current selling price is at TWD 32,000 to TWD 32,300 per tonne.

(Sourced from YIEH.com)

Outotec sulfuric acid technology to Venezuela

Outotec has agreed with Petroquímica de Venezuela SA for the delivery of engineering and imported equipment for a new sulfuric acid plant to be built at Morón in Venezuela. The value of the contract is approximately EUR 90 million.

Outotec has provided the concept and basic engineering for Pequiven for the same project in 2007. In this second phase Outotec's scope of delivery covers engineering and supply of imported equipment.

The plant is designed to produce 3,000 tonnes per day of sulfuric acid for Pequiven's phosphate based fertilizer production. The start up of the plant is scheduled to begin in the first quarter of 2010.

Mr Tapani Järvinen president & CEO of Outotec said that "This contract demonstrates our capability to apply our technologies beyond the mining and metallurgical industry in other process industries, such as fertilizer industry. We have been a major designer and supplier of sulfuric acid plants for more than 80 years, with a track record of over 600 plants installed worldwide. This new contract will further strengthen our market leadership.”

UAE cement makers surge on construction boom

Bloomberg reported that UAE shares advanced, led by cement companies on speculation increasing demand for properties will boost their profits.

Ras Al Khaimah Company for White Cement & Construction Materials rose to its highest in more than two years. Umm Al Quwain Cement Industries Company and Gulf Cement Company also gained. Union Properties advanced for a third day.

The Abu Dhabi Securities Exchange General Index added 0.8% to 5,037.85, while the Dubai Financial Market General Index rose by 0.2%, gaining for a third day.

Mr Mohamed Salem a trader at Al Futtaim HC Securities said that "Cement companies are extremely attractive because of soaring demand for properties and the shortage of cement makers.'

According to data compiled by Bloomberg, ADX Construction Index, a measure of 10 construction companies, trades at an average of 12 times trailing earnings. That compares with a multiple of 15 for ADX General Index.

Iranian car production in two months dips by 27% YoY

Mehr News Agency reported that Iranian carmakers produced over 156,000 cars in the March 20th 2008 to April 20th 2008 period down by 27% YoY.

This is while the deputy minister of industries and mines for industrial affairs, Mr Danesh Marnani has been surprisingly quoted as saying that "Statistics indicate increase in production."

Emaar MGF to invest USD 3 billion in India

Real estate firm Emaar MGF Land, Indian JV of Dubai's Emaar Properties, said that it plans to spend USD 3 billion in developing properties in south India over the next few years.

Besides a residential property in Hyderabad with an outlay of USD 1.4 billion, Emaar MGF will invest in commercial and retail properties and hotels spread over 31 million square feet in 10 south Indian locations.

Emaar MGF in February 2008 called off a USD 1.6 billion initial public offering because of tepid investor interest.

Masdar to invest up to USD 2 billions in photovoltaic solar energy

Abu Dhabi based Masdar has announced that Masdar PV will embark on a multi billion dollar investment in thin film photovoltaic solar technology, as part of its drive to become a world leader in alternative energy.

The total investment of approximately USD 2 billion represents one of the largest investments ever made in solar and will fund a 3 phased manufacturing and expansion strategy to produce the latest generation of thin film photovoltaic modules.

Out of the total planned investment, phase one of the project involves an investment of USD 600 million, which will fund the development of two manufacturing facilities. The first, in Erfurt in Germany will be operational by Q3 2009 and a second facility in Abu Dhabi which will begin initial production by Q2 2010. The combined annual production capacity of these two sites will be 210 MW, which is committed to major PV system installers in Europe and for Masdar’s own energy generation needs.

Masdar chose Germany as the site for its first plant because Germany is currently the center of the global PV industry. This German plant will act as a reference plant for technology and knowledge transfer to the larger Abu Dhabi plant by a joint German Abu Dhabi team.

Dr Sultan Al Jaber CEO of Masdar said that "Thin film PV is a key part of our build deploy develop strategy to actively build a strong position in alternative energy. The investment in photovoltaic solar energy will compliment Abu Dhabi’s existing energy market. Abu Dhabi is a global energy leader, so it makes sense to engage these new energy technologies to maintain leadership and become a global energy hub."

Dubai Q1 2008 non oil foreign trade surges by 46% YoY

Khaleej Times reported that Dubai’s non oil foreign trade volume has jumped up by 46% YoY in the January to March 2008 quarter, reaching AED 214 billion as against AED 146.5 billion in January to March 20007 quarter. During the quarter, Dubai’s exports recorded a phenomenal growth soaring by 79% YoY, while re exports went up by 73.5% YoY and imports grew by 49.7% YoY.

The latest statistics, compiled and released by Dubai World’s Statistics Department show that Dubai's direct non oil foreign trade, excluding free zones and customs warehouses, amounted to AED 143.8 billion during the January to March 2008 quarter as against AED 91.53 billion for the January to March 2007 quarter, showing an increase of AED 52.3 billion.

Mr Sultan Ahmed Bin Sulayem chairman of Dubai World said that "The figures released by Dubai World Statistics Department underscore the buoyant commercial growth of the emirate, reinforcing Dubai’s reputation as a major commercial hub. The growth is fuelled by the government’s relentless efforts to upgrade the existing modern infrastructure of ports, airports and land transportation network, connecting Dubai to the world."

He added that "The growth of Dubai’s non oil economy also comes as a result of the noticeable rise in the international oil prices, which led to a corresponding increase in government income and the public spending on developmental projects. The unprecedented construction boom and the tourist and commercial development are also factors which largely contributed to this growth."

India topped the list of Dubai’s direct import destination in the first quarter of 2008 with a share of 13.14% of total imports worth AED 12.6 billion. China came second with AED 10.7 billion, followed by Switzerland with AED 7.2 billion. India, China and Switzerland together accounted for 31.8% or AED 30.5 billion of Dubai’s total imports, while imports from other countries accounted for 68.2% or AED 65.6 billion.

GE Energy signs USD 500 million deal with Saudi Electricity Co

GE Energy recently announced that it has signed contracts worth more than USD 500 million to supply gas turbines and generators for power plant projects owned by Saudi Electricity Company.

In the first agreement, GE Energy has received a contract to supply gas turbine generators for the 960 MW expansion of the Rabigh Power Plant in Rabigh City, on the west coast of Saudi Arabia. The project is part of SEC's initiative to provide additional power to support the region's economic and population growth.

In addition to the Frame 7EA gas turbines at the Rabigh site, GE's scope of supply includes Type 7A6 generators, technical advisory services during installation and spare parts. The EPC contractor for the project is the National Contracting Company Limited of Al Khobar.

Further expanding its presence in the Middle East's rapidly growing power industry, GE Energy also has received a contract for gas turbines that will be used by four power plants owned by SEC.

Mr Joseph Anis GE Energy's region executive for the Middle East said that "These projects are part of SEC's on going efforts to meet the region's soaring power demand. Our capability to provide gas turbine technology with a short delivery cycle, plus the proven reliability of our gas turbine technology, was key factors in winning these contracts."

GE maintains a workforce of more than 600 employees in the oil rich Gulf Kingdom with offices in Jeddah, Riyadh and the Eastern Province, as well as joint ventures in the fields of energy, healthcare and appliances. GE's current business portfolio in Saudi Arabia includes power and water, transportation and healthcare, in addition to new opportunities in financial services and advanced materials.

External debt at peak level of USD 44.59 billion in Pakistan

Business Recorder reported that Pakistan’s external debt witnessed a rise of over USD 5.5 billion to hit a new peak of some USD 44.59 billion during the current fiscal year mainly due to rising current account deficit.

As per Fiscal Responsibility & Debt Limitation Act, 2005, the government has to reduce its foreign debt by 2.5% every year and current year it should be 24.5% of GDP from 27%. However, during the current fiscal year it is difficult for the government to meet this target due to rising current account deficit and it is expected that by the end of June 2008 it would remain at 27% of GDP.

Economists said that the government has borrowed some USD 5.58 billion foreign debts during the first three quarters of the current fiscal year to meet its over USD 10 billion current account deficit. They said slow foreign inflows coupled with declining foreign investment and sluggish privatization process compelled the government to use the tool of borrowing to fulfill its foreign payment requirements.

After the current upsurge, first time in the history of the country, overall foreign debt that earlier stood at USD 39.008 billion on June 30th 2007, rose to historic level of USD 44.596 billion by the end of March 2008. External debt and liabilities showed an increase of 13.45% to USD 45.926 billion till March 2008. It previously stood at USD 40.481 billion on June 30th 2007.

Economist said that during the first three quarters of FY08, the country faced USD 9.85 billion current account deficit because of high goods and services trade deficit as compared to some USD 6.16 billion deficit during the same period of last fiscal year, which forced the government to use foreign exchange reserves and borrow from international financial institutions.

During the current fiscal year, the government utilized some USD 3 billion from foreign exchange reserves and some USD 3 billion of foreign investment to meet current account deficit, while remaining gap was bridged through new foreign loans.

EMICOOL signs AED 669 million Syndicated Islamic Finance Facility

Al Bawaba reported that Emirates District Cooling Company Llc, a JV between Union Properties PJSC and M’Sharie, has signed a Syndicated Islamic Finance Facility of AED 669 million with seven leading banks to fund the first phase of its AED 2.5 billion expansion plan.

The Syndicated Islamic Finance Facility is arranged jointly by Badr Al Islami, Standard Chartered Bank and Emirates Islamic Bank as Initial Joint Mandated Lead Arrangers. The Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Bank International and Union National Bank acted as Joint Mandated Lead Arrangers in the syndicate.

The signing ceremony of this Syndicated Islamic Finance Facility agreement was attended by Mr Anis Al Jallaf chairman of Dubai Investments & Union Properties, Mr Khalid Kalban MD & CEO of Dubai Investments, Mr Abdul Aziz Yaqoob Al Serkal MD of M’Sharie and also chairman of EMICOOL and Mr Simon Azzam CEO of Union Properties.

Mr Al Serkal said that "This syndication opens up new strategic avenues for EMICOOL and will help to set the company on a sustainable high growth trajectory. We view the enthusiastic response from the banking community as further proof of EMICOOL’s distinguished market reputation and excellent growth potential. We are also pleased that we were able to secure the financing at a rate that, under prevailing market conditions, can be considered extremely competitive."

Mr Abdul Aziz Serkal said that "EMICOOL has drawn up ambitious plans for the future, and continued expansion of production capacity forms the centerpiece of our business strategy. As the demand for District Cooling is continuously on the rise across the UAE and Middle East region, it has become imperative for EMICOOL to optimize production capacity and further enhance its technological capabilities to meet growing market requirements more efficiently."

He further added that "The financing proceeds will mainly be used to fund EMICOOL’s projects at Dubai Motor City and Dubai Investments Park. EMICOOL estimates that its ambitious expansion plans will require an investment of AED 2.5 billion over the next 5 years. In this regard, EMICOOL expects to raise twice the amount of the current syndication in the future to refinance the existing facility and meet future requirements."

IPCC targets USD 1 billion petrochemical export to china

Mehr News Agency quoted Mr Mohammad Ali Zardbani MD of Iran Petrochemical Commercial Company as saying that it plans to export USD 1 billon worth of petrochemical products to China this Iranian calendar year.

Mr Ali Zardbani said that "China alone accounts for importing 10.5% of Iran’s petrochemical export bound products." He added that in last Iranian year ended March 19th 2008, IPCC exported USD 590 million worth of petrochemical products to china.

Mr Zardbani also added that the company’s total exports amounted to USD 5.5 billion in last Iranian year, of which 30% was sent to the Far East, 32% to the Middle East, 13% to Europe, 10.5% to China, 5% to India and the remaining 9.5% to other Asian and African countries.

He also noted that the amount of petrochemical products imported to Iran in the previous Iranian year was not significant. He added that "We imported less than USD 100 million worth of petrochemical products. Caustic soda was the import staple which is widely used in many industries."

IPCC has already announced that it exported over 1.5 million tonnes of petrochemical products valued at approximately USD 1.26 billion since the beginning of the current Iranian year.

Iranian petrochemical products export hits USD 1.26 billion

According to a report issued by the Iran Petrochemical Commercial Company, the total value of the exported petrochemical products since outset of the current Iranian year amounted to USD 1.26 billion.

Iran’s total petrochemical product’s export volume during this period reached 1,554,000 tonnes. 24 various kinds of petrochemical products have been exported of which during this period, methanol stood at the first place with a total of 300,000 tonnes export volume.

IPCC’s total sales value in the previous Iranian calendar year was about USD 8.3 billion of which about USD 5.5 million was earned from exportation and the rest from domestic sales.

Methanol, ethylene, propylene, butadiene, LAB and PTA are the major exported petrochemicals.

CISA dismisses rumor of export tax changes

China Iron & Steel Association released a statement on May 29th 2008 formally denying the rumor that Beijing is to introduce a tougher export tax policy on June 1st 2008 adding that such rumor would destabilize the export and import markets, and threaten the country overall economic health as the country struggles with post-earthquake reconstruction.

The market analysts believe there is little chance to see tax policy change on steel products before fourth quarter, although they have not ruled out the possibility of further move from Beijing within this year, learned by China Securities News.

CISA official said that the government's efforts to suppress excessive steel export have already taken desirable effect, leading to a substantial decrease of finished steel products and semis export in the first four months of this year.

Mr Zeng Jiesheng senior analyst of Mysteel said that China's monthly steel products export would stay above 5 million tonnes for May and June and hover over a high level in the third quarter and the steel export would add up to 42 million tonnes in the first three quarters. He said that it is quite clear that the steel export is set to rebound, forcing the central government to go in for tougher tax policy within this year, but that might not happen before the last quarter.

Mr Zeng Jiesheng said "Last year's tightening efforts have already paid off and received the expected impact. And the authority also realizes that too frequent policy change would have backfire impact on driving up speculative steel export boom".

Moreover, Beijing would also take into account China's overall dipping trade surplus growth. And as long as the strong global demand stays here, higher export tax would continue to push up the export price and tonnage and thus, prop up the domestic price.
(Sourced from MySteel.net)

Chinese plate export offers a bit slow last week

It is reported that Chinese plate export market seems to be a bit slowed down recently since transactions have softened. Export offers do not see further increase and exporters started to become cautious on market situation in June.

Export offers for commercial plate by tier two producers are at around USD 1130 per tonne FOB to USD 1150 per tonne FOB, but transactions are reported to be a little difficult.

By comparison, a tier one steel producer in East China was offering 12mm to 40mm commodity grade plate at USD 1170 per tonne to USD 1180 per ton FOB as base. It indicates that contracts for shipments to South East Asia have dropped sharply and those for Middle East are getting better. Exports to the EU remain common.

(Sourced from MySteel.net)

Price inversion between HDG and CRC

It is reported that there has been price inversion between hot galvanized coil and cold rolled coils in China since August 2007 as price for HDG is lower than that of CRC. The oversupply and dependence on exports are believed to be the major reasons behind the lower HDG price.

In recent years, HDG capacity and production have witnessed great increase. Annual HDG output has been growing at a level higher than 40% since 2004. However, the growth rate started to drop since the second half of 2007. Subsequently, lots of HDG flow to international market and the proportion of exports to total output is also on the increase. In 2006, total Chinese HDG exports reached 2.87million tonnes accounting for 23% of domestic production. But the export tonnage began to drop remarkably following the rebate cut in 2007.

Most of Chinese HDG exports go to the EU and USA and the export volume is highly dependent on the demand of western countries. USA, Belgium, Italy, Spain and Britain are top five destinations for Chinese HDG exports and the tonnage for above mentioned countries account for 52% and 43% respectively of total exports in 2006 and 2007.

However, the export rebate cut, the continuous CNY appreciation and slower economy growth in the EU and USA has led to less Chinese HDG exports. The tonnages for Q1 2008 dropped to 520,000 tonne up by 38% YoY. Further he proportion to output went down to 13%.

By comparison, there are net imports of CRC and the import volume is 100% higher than that of exports. The exports only account for 10% of total production and there is no dependence on international market.

The decrease in export volume and continues increase in HDG capacity have brought pressure on price. However, the small premium over CRC or price inversion would also restrain the release of new capacity. Thus it is noticeable to pay much attention to export market and situation of supply.

(Sourced from MySteel.net)

Chinese rebar and wire rod export to rise again

It is reported that Chinese construction steel prices have leveled off this week and they are likely to pick up again later.

Shanghai market prices are largely unchanged.HRB335 20mm rebar is being quoted at CNY 5340 per tonne to CNY 5350 per tonne, HRB400 at CNY 5590 per tonne to CNY 5620 per tonne, flat with last week. Price for commercial wire rod remained at CNY 5800 per tonne that for hi speed material is tagged at CNY 5910 per tonne.

While rebar and wire rod prices in Beijing market have seen remarkable rebound. 6.5mm hi speed wire rod by Tangshan is being quoted at CNY 5950 per tonne a jump of CNY 350 per tonne recently. HRB335 and HRB400 16mm to 22mm rebar price move up by CNY 100 per tonne to CNY 120 per tonne to CNY 5590 per tonne and CNY 5800 per tonne respectively.

Mysteel said domestic rebar and wire rod prices are expected to see another round of increase, bolstered by robust demand, low output, increasing production cost and high international market price. Taking Shanghai price for HRB335 20mm rebar as benchmark, it is expected to approach CNY 6000 per tonne after exceeding CNY 5500 per tonne.

Export prices remain at high level and allocations are said to be quite tight. Offer for rebar with vanadium are normally at USD 1100 per tonne to USD 1140 per tonne FOB.

Sources say that Shagang has concluded 120,000 tonnes rebar exports early this month and the average contract price is USD 1000 per tonne FOB. Despite price inversion with market price it shot up its ex works price by CNY 350 per tonne due to electricity limit and maintenance in June.

(Sourced from MySteel.net)

Continuous annealing line commissioned in Baosteel

It is reported that the continuous annealing lien in Five CR Strip Project was commissioned in Baosteel on May 27th 2008 and it produced the first coil of steel successfully.

Both capacity and surface quality complied to design index and demand from consumers. It meant that Baoshan Iron and Steel Company will add more high precision, high strength, high quality surface products in carbon steel series.

Continuous annealing line is one of main lines in Five CR Strip Project with a design capacity of 700,000 tonnes per year. The units adopted the world’s most advanced equipments.

China may permit foreign investments in commodity futures

Bloomberg reported that China, the world's largest consumer of metals and grains may allow qualified foreign investors to buy its commodity futures contracts.

Mr Lao Guangxiong deputy CEO of the exchange said the plan is under consideration. He said that allowing qualified foreign institutional investors known as QFII may make the Shanghai exchange a better platform for futures trading.

Mr Lao said the Shanghai Futures Exchange will probably introduce futures for steel products this year. He said that “Our preparation for steel product contracts, including the ones for reinforced bars and steel wires is mature. We need approval from regulators.''

Ms Wang Lihua chairwoman of the Shanghai Futures Exchange said “Because of the US subprime crisis, Chinese regulators are more cautious about risk control, so it's hard to set a timeframe for introducing QFII to the Chinese commodities market.''

Anshan Steel accelerates plans for Ningde Steel Project

It is reported that Anshan Steel accelerates its expanding steps to South China and Ningde Steel Project is likely to be approved.

Mr Zhang Xiaogang GM of Anshan Steel said that the production arrangement is one of key strategies in Anshan Steel this year. He said that Anshan Steel is now programming for a CR plant together with a steel company in province Fujian. The result would come out in two months. He added that province Fujian would still be the location of steelworks even if they fails in the negotiation, because it is an overall strategic arrangement in Anshan Steel Group.

Mr Chen Rongkai official in the city of Ningde said in the end of last year that the provincial government in Fujian has signed frame agreement with Anshan Steel and Ningde has already finished the investigation on 12 million tonnes steel project. He indicated that 1.2 million tonnes CR project which is the first phase of the project with an investment of CNY 5 billion would start soon. However, Mr Zhou Xizeng analyst from CITIC Securities believed that it would take one or two years for the project to start.

Mr Zhou Xizeng said “If Zhangwan Steel Project is approved and there could be five new super sized steel projects in China together with Shougang Caofeidian Project, Shandong Steel Rizhao Project, Wisco Fangchenggang Steel Project, Baosteel Zhanjiang Project. The coast arrangement in Chinese iron and steel industry would be completed.”

Cutterhead for biggest TBM tunneling project in China

It is reported that Sheffield heavy engineering company DavyMarkham has fabricated and shipped a 320 tonnes Cutterhead for a 12.4 meter diameter tunnel boring machine being built by The Robbins Company of Ohio.

As per report, fabricated in six sections and test assembled at DavyMarkham’s Sheffield works prior to dispatch, the Cutterhead and associated Main Beam TBM are being finally built by Robbins in a massive underground launch chamber, pre excavated by drill and blast methods. The same on-site assembly technique was also employed on the earlier Niagara Falls TBM contract for which DavyMarkham again supplied the Cutterhead.

In a contract valued at EUR 1.15 million, the Sheffield firm applied precision engineering standards to the heavy machining and fabrication. In order to improve competitiveness when dealing with such large steel pieces, DavyMarkham employed a newly developed cutting tool for rough machining, which resulted in a metal removal rate 5 times faster than normal, and deployed the latest carbide U-drill technology, which cut holes 8 times faster.

After test assembly, the Cutterhead was disassembled and shipped in manageable sections from Southampton to Shanghai, for onward freighting to Sichuan Province. Tunneling is scheduled to start in spring 2008 after on site assembly, with the TBM boring the first of four headrace tunnels through a complex geography of marble, shale and limestone, as well as coping with large inflows of water.

It has been dispatched to the mountains of Sichuan Province in China where it will be instrumental in one of the biggest TBM-driven tunneling projects in Chinese history for the new 4,800MW Jinping II hydropower station on the Yalong River. Once completed in 2010, this will be the largest power station in an ambitious project for owners Ertan Hydropower Development Company which will transmit electricity to many eastern provinces and such cities as Shanghai and Beijing.

For the Jinping II project, the 12.4 meter TBM will bore a headrace tunnel almost 17 kilometer long and one of the longest in the world, which will deliver water under pressure to the turbines of the hydropower plant currently under construction. DavyMarkham fabricated the machine’s main Cutterhead in six separate sections, for ease of shipping and lowering below ground: one inner head weighing 60 tonnes, another at 52T and four outer segments each weighing 38T, all incorporating free-issue 19” cutters supplied by Robbins.

China steel product imports in 4 months

It is reported that China steel product import from different countries in 4 months is as under

(In tonnes)

(Sourced from MySteel.net)

Minmetals awarded REACH regulations advisory services

According to China Chamber of Commerce of Metal Minerals and Chemicals Imports & Exports that MOFCOM had awarded Minmetals REACH Regulations Advisory Service Center of MOFCOM for a better assistance of domestic enterprises to deal with the registration, evaluation, authorization and Restriction of Chemicals (REACH).

The REACH regulations will be in actual operation since June 1st 2008 which includes pre registration period from June 1st to November 30th 2008 and formal registration period from December 1st 2008

CCCMC reminded that if enterprises do not take part in pre registration, their products will not allow entering European market from June 1st 2008 although it is allowed to export to Europe from June 1st to November 30th 2008. Once it is found that the products have not been registered after November 30th 2008 the importer will be punished and the supplier will also be traced. Enterprises that have not pre-registered will not be allowed to export to European market after the pre-registration.

Chinese scrap import in 4 months

It is reported China scrap steel import from different countries in 4 months is as under

(In tonnes)

(Sourced from MySteel.net)

Shougang Jingtang orders for sublance system

It is reported that Danieli Corus has signed a contract for the design, supply and construction supervision for one sublance system including bottom stirring, an upgrade to the previously implemented static dynamic model and a waste gas analyser for converter No 3 at Shougang Jingtang Iron & Steel United Company Ltd.

As per report this is the second order for sublance equipment from Shougang Jingtang, a joint venture between Shougang and Tanggang.

The new Shougang Jingtang plant is being constructed on the Caofeidian Island, some 80 kilometers south of Tangshan City, Hebei Province, PR China. Close to the plant, an entirely new city designed for 1 million inhabitants are being layed out.

Nine Hebei PPGI suppliers commit supplies at fixed prices

It is reported that 9 colored steel suppliers in Hebei Province, who have taken the duty of supplying colored steel for prefabricated houses for earthquake hit region in Sichuan, have made a promise that they will supply the material without any increases in prices.

As per report, Hebei Province has asked to supply 80,000 prefabs which need colored coated steel.

Tangshan Iron and Steel Group Company Ltd, Handan Iron and Steel Group Company Ltd and other 7 companies will be in charge of steel supply.

Baosteel convertible corporate bond approved

It is reported that recently the application of Baosteel Ltd to issue convertible corporate bond for which the transaction of warrants is separated from the transaction of bonds was approved by China Securities Regulatory Commission.

In the following 6 months Baosteel Ltd is going to issue publicly CNY 10 billion convertible corporate bonds for which the transaction of warrants is separated from the transaction of bonds with CNY 100 par value. The term of bond will be 6 years.

As per report it was the resolution of the first interim general meeting of stockholders of Baosteel Ltd in 2007 that to speed up achievement of the new round development strategy of Baosteel, Baosteel Ltd was to issue CNY 10 billion convertible corporate bonds for which the transaction of warrants would be separated from the transaction of bonds for the purpose of buying from Baosteel Group the assets of Luojing engineering projects, investing in No 5 Cold Rolling Mill project & the supporting facilities and Cold Rolled Stainless Steel Strip Project, as well as adjusting the debt structure.

According to the articles for bond issuance, the final subscriber of each bond may gain the subscription warrants distributed by the issuer company according to certain ratio. The ratio of the exercise of all related warrants is 2:1, i.e. 2 subscription warrants represents the right to subscribe 1 A-share issued by the company. The original share holder at the time of issuance enjoys the preemptive right based on their tradable shares not subject to selling restrictions at the proportion of not lower than 40% of the total issue of this time. Baosteel Group, the biggest shareholder of Baosteel Ltd promises to guaranty for this issuance free of charge.

Baosteel Group credi