New service to keep you updated with steel prices on daily basis

A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item, but there is no bench mark available to steel buyers to compare their transaction prices, which in a big way decided their bottom line. Lastly, steel has been very volatile in last 6 months and has effected many users in a very severe way making it all the more important to track the prices and trends.

In order to provide such information 3 web sites have been launched
1. www.steelprices-india.com
2. www.steelprices-china.com
3. www.steelprices-middleeast.com
These portals provide domestic pricing information for benchmark steel products in each category at select location in India, China and Middle East on a regular basis 5 days a week. Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available to give a sense of alternates.

The prices are displayed on daily, weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. A calculator to convert domestic prices into comparative CNF and vice versa is also provided, which takes into account all duties and expenses. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.

This would assist persons, including steel makers, traders, users and others, who are connected with industry in some way to asses the steel pricing trends and utilize in their day to day working to take considered decisions.

Mr N Sharma of SteelGuru.com said that “We have been receiving requests from Steel Trade Today subscribers for domestic steel prices during the last 3 years of SteelGuru’s operations. The volatility in the steel market in last 6 months to 8 months also propelled us to put it up quickly.”

All these features are accessible only to registered user who is provided with a login id and password after payment is received. To know more about the service, please logon to the web site and click on “Features” Subscription” and “Registration”.

These portals are developed and run by none other that www.steelguru.com, which has become the largest English based steel portal in the world, with more than 1 million page hits per month in just 3 years of operations.

Indian six core sector growth in April declines to 3.6%

IANS reported that, after a slowdown in industrial production, the growth in the output of 6 core sectors, including crude oil refining, coal and electricity, has also registered a steep fall in April 2008. The growth of these 6 industries namely crude oil, petroleum refining, coal, electricity, cement and finished steel, declined to 3.6% in April 2008 against 5.9% in April 2007.

The 6 core infrastructure industries had registered a 9.6% growth in March 2008. These core infrastructure industries also have a combined weight of 26.7% in the overall Index of Industrial Production.

The refinery products growth slowed down considerably to 4.3% in April from 15.1% in the corresponding month last year while the crude oil growth came down to 0.9% from 1.4%. Electricity generation growth also declined to 1.4% from a robust 8.7% in April 2007.

The other 3 sectors namely, coal, cement and steel, registered positive growth rates. Coal production saw a 10.3% increase from a mere 0.6%, cement increased by 6.9% from 5.8% and finished steel rose by 4% from 2.7%.

Steel input materials surge in Mumbai market

It is reported that the major input materials for steel making as well as feeding rebar mills have surged in Mumbai today due to short supply

Rates are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

(Sourced from Steelprices-india.com)

BOC India commences ASU at Adhunik plant at Rourkela

BOC India Limited recently announced that it has commissioned its 100 tonnes per day air separation unit at the Rourkela steel works of Adhunik Metaliks Limited, pursuant to a 10 years supply contract entered into with Adhunik Metaliks for supply of oxygen, nitrogen and argon to them under the said contract.

The 100 tonnes per day plant has commenced commercial production earlier this month and has been operating satisfactorily.

OMDC gets USD 65 per tonne for 63% iron ore

It is reported that OMDC Limited has secured the best offer of INR 2753 per tonne for 63% grade iron ore in 10mm to 30mm size in its latest tender on ex mine basis. Royalty at INR 27 per tonne is payable in addition. CST, if applicable is at 2%.

Considering the USD to INR exchange rate of 42.9650, it works out to about only USD 65 per tonne. The transportation charges shall be in addition.

(Sourced from Steelprices-india.com)

Mr Marandi calls for allotting Chiria mine to SAIL without delay

Mr Babulal Marandi former chief minister of Jharkhand has lambasted state government’s indecisiveness leading to the delay in handing over Chiria mines to Steel Authority of India Limited. Mr Marandi said that renewing the lease could have solved unemployment problems and brought prosperity to the state.

He added that "When SAIL is ready to establish four big steel plants in the state and employ youths being lured by Maoists, what was wrong in renewing the mines lease? It would have brought about peripheral development in the area and many more steel plants would have come up."

Mr Marandi, blaming the selfish motives of ministers and corrupt bureaucrats for the state’s regression, said that "As Jharkhand and the centre are ruled by the UPA, the plants could have come up faster."

Chiria was leased by IISCO, which has been merged with SAIL. But the government has not renewed the lease and the issue is in court.

SAIL RSP project helps visually impaired kids

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has launched ‘Project Baljyoti’ with the objective of providing light and color to the lives of the visually impaired children from the marginalized sections of villages around Rourkela.

This project comes under the corporate social responsibility initiatives of RSP. Under this project, the surgeries of 4 children from the Lathikata block were conducted by ophthalmologists from Ispat General Hospital recently. The children were treated for impairments like cataracts and squint. Since most of the children were below the age of ten, the treatment will not only remove the impairments at an early age but will also help them lead a healthy and normal life.

The project is being implemented in 3 stages. First the beneficiaries are identified and brought to camps held at IGH with the help of the district administration. In the second stage diagnostic tests like blood, pathology, ECG, X ray and visual tests are conducted at the camps. The children, who are identified for further treatment, are then operated at IGH. The impairments like congenital cataracts, squint and nystagmus are treated with the help of facilities available at IGH.

Postage stamp releases in honor of Mr Henning Holck Larsen

A postage stamp in honor of Mr Henning Holck Larsen co founder of Larsen & Toubro Limited has released by department of posts. The INR 5 denominated stamp was released by Mr A Raja union minister for communication & information technology.

The stamp release commemorates the birth centenary of Mr Holck Larsen and acknowledges the immense contribution made by him and L&T in building world class engineering competencies in India. Starting from a one room operation in Mumbai in 1938, L&T has over the last 7 decades grown into a USD 7 billion conglomerate, which has set bench marks in executing engineering and construction projects in India and overseas.

Under the stewardship of Mr Holck Larsen and his successors, L&T has always dedicated itself towards building a strong India. It has been a part of some of India’s critical programs of strategic importance like nuclear power and space research.

Mr Raja recalled the contribution made by Mr Holck Larsen in helping to build a company that has become a benchmark of engineering excellence. He said that "Mr Holck Larsen is an inspirational figure in India’s corporate history. Men like him have played a pivotal role in the making of modern India. We are privileged to recognize his contribution by releasing a postage stamp in his honor."

Mr Holck Larsen, a Padma Bhusan winner, joins the eminent list of industry leaders like Mr JRD Tata and Mr Dhirbhai Ambani, who have been similarly recognized by the department of posts by issuing a postage stamp in their honor.

Base metals futures up in early trade on MCX

It is reported that base metals prices moved up in the opening trade on the futures market as traders enlarged their positions, taking cues from global markets.

Traders said that overnight gains at London Metal Exchange, where all the base metals ended in positive zone as the US dollar weakened against the euro and the low level of LME monitored inventories, influenced the prices on the Multi Commodity Exchange.
Prices of tin for June 2008 contract shot up by nearly 3% at INR 896.50 on speculative buying on the futures market, triggered by strong LME, where it surged by 4% at USD 21,945 a tonne.

Nickel for most active June 2008 delivery contract rose by 0.58% at INR 1,041 per kilogram with a business volume of 1,041 lots, while July 2008 contract was up by 0.72% at INR 1,053 per kilogram. It clocked a business volume of 108 lots.

Copper June 2008 delivery contract gained 0.62% at INR 347.75 with a significant business volume of 3203 lots, while August 2008 contract rose by 0.64% at INR 346.65 with a volume of 380 lots. For month November 2008 contract rose by 0.20% at INR 345.80 per kilogram and recorded a moderate business volume of 5 lots.

Zinc June 2008 contract delivery moved up by 0.75% at INR 80.95, July 2008 contract delivery rose by 0.74% at INR 82.20 per kilogram while August 2008 contract gained by 0.24% at INR 83.15 per kilogram.

Sterlite Asarco deal hinges on US court ruling

ET reported that Sterlite Industries may have signed a definitive agreement to acquire assets of the bankrupt copper miner Asarco for USD 2.6 billion on May 31st 2008, but the proposed transaction will be cancelled if the US bankruptcy court in Texas does not approve it.

This acquisition is different from standard M&A deals where the buyer purchases a company or an asset from the seller. Asarco had gone out of control of its parent Grupo Mexico when the company filed bankruptcy in 2005. The independent Asarco board had put the company on the block nearly a year ago and Sterlite emerged as the highest bidder through an auction, outbidding some others including Grupo Mexico, last month for its assets without its legacy liabilities. The deal is subject to the clearance of the bankruptcy court.

The proposed transaction snowballs into a competitive bidding with Grupo Mexico coming out with a USD 4.1 billion proposal last week for the entire Asarco, including its liabilities, and now even enhancing its offer. Grupo Mexico has now sweetened its last week’s offer by announcing that its wholly owned subsidiary American Mining Corporation will guarantee for additional payment of USD 2.7 billion if the creditors demand exceeds what is envisaged in its earlier plan. The previous plan envisages putting up USD 2.7 billion to pay off the claims, use USD 1 billion Asarco has on hand and then put in a further USD 440 million, if needed.

Asarco faces up to USD 5.3 billion in claims for asbestos and to clean up copper mining and smelting sites across in US. It has 3 mines in Arizona and produced 235,000 tonnes of refined copper in 2007. It has about 5 million tonnes of contained copper in proven reserves.

On the other hand, Asarco has been fighting a lawsuit against Grupo Mexico for allegedly transferring the company’s 54% stake in Southern Peru Copper Corporation to American Mining Corporation in 2003. In the lawsuit, Asarco has demanded 30% stake in the Peruvian mines, estimated at USD 9.6 billion. It also wants USD 1.7 billion the dividends the mines paid to Grupo Mexico since 2003. The trial of this case is over and the judgment is expected to be out in August 2008.

Sterlite is keen on sailing through its largest overseas acquisition while Grupo is desperate to bag Asarco to avoid a potential adverse ruling on the alleged stripping off asset lawsuit. The Sterlite bid received the support of the trade union.

The Asarco board also requested the bankruptcy court to approve a USD 52 million break up fee Sterlite wants which Grupo opposed. Both the parties, as it appears, have positives and negatives.

Exide buys 51% stake in Leadage Alloys

ET reported that Exide Industries has picked up a 51% stake in lead smelting company Leadage Alloys India Limited for INR 34 crore. The acquisition comes on the heels of Exide Industries’ buyout of another unlisted lead smelting company Tandon Metals s in October 2007 for INR 25 crore.

Since global lead prices have been on an upswing, the two acquisitions are expected to help Exide increase its use of recycled lead and lead alloys for making storage batteries. And this would, in turn, reduce the company’s dependence on imports of lead.

Mr TV Ramanathan MD of Exide Industries said that "The company owned lead smelting units will not only make Exide self sufficient in the long run, it will also help the company have better control over recycling of used batteries that they buy back from the market as part of regulatory framework for storage battery manufacture."

Mr PK Kataky director automotive of Exide Industries said that "This investment in our own smelters is not just a backward integration project for Exide. It is part of our commitment to the environment, whereby we will have better control over disposal of used batteries and plastics."

Meanwhile, Mr T Arun Kumar CEO of Leadage Alloys India said that the new partnership will result in significant synergy for both parties given the fact that the entire cost-efficient facilities of Leadage get leveraged by Exide to meet its diverse lead and lead alloy requirements.

Gujarat Foils announces INR 120 crore CAPEX plan

PTI reported that, after acquiring a controlling 60% stake in aluminum foils maker Gujarat Foils for INR 33 crore, Topworth Group of Companies said that promoters of the company will now invest INR 60 crore in 2 phases for capacity expansion.

Mr Abhay Lodha chairman of Topworth Group of Companies said that "Gujarat Foils, which enjoys 40% share of the domestic aluminum foils market, will invest INR 60 crore in the first phase to enhance its capacity to 7,000 tonnes per annum from 3,000 tonnes annually now. Work on the first phase of capacity expansion has already been started and will be completed by August 2009."

Mr Lodha said that Gujarat Foils would go for another round of capital infusion by December 2009 and this time too the investment will be to the tune of INR 60 crore which will mainly be used for backward integration. He added that Gujarat Foils would take an INR 43 crore loan from financial institutions to fund the investment and the remaining would come from internal accruals and contributions from promoters.

Topworth Group of Companies had acquired majority stake in Gujarat Foils from Pramod Jain and has already made an open offer to grab more stake in the company. As of now, Pramod Jain holds 20% stake in the company and the rest is with the public. Gujarat Foils has its manufacturing facility in Ahmedabad on 50 acres of land.

Bihar Tubes completes offering of GDR worth USD 10 million

Bihar Tubes Limited informed BSE that it has successfully completed the offering of global depository receipts aggregating USD 10,000,080 at the rate of USD 6.80 per global depository receipt to international investor.

The closing date for the issue is June 18th 2008. Consequently, Bihar Tubes has allotted 1,470,600 global depositary receipts representing 2,941,200 equity shares, par value of INR 10 each in favor of the subscribers.

These global depository receipts shall be admitted to listing on the official list of the Luxembourg Stock Exchange and to trading on the Euro MTF Market.

Elara Capital PLC London has been the sole lead manager global coordinator and book runner to the GDR issue of the company.

Mr Sushil Maroo appointed as deputy MD of Jindal Power

Jindal Steel & Power Limited has informed BSE that Mr Sushil Maroo has resigned from whole time directorship of Jindal Steel & Power Limited with effect from close of business hours of June 17th 2008 as he has been appointed as deputy MD of Jindal Power Limited with effect from June 18th 2008.

JSPL said that however, he will continue to be director of Jindal Steel & Power Limited and guide and direct the financial activities of JSPL and its associate companies.

Sujana Towers acquires 51% in Telesuprecon Limited

Sujana Towers Limited said that it has acquired 51% shareholding in Telesuprecon Limited, undertaking Telecom infrastructure contracts in various cast in central African countries. The investment of the company to acquire 51% shareholding of Telesuprecon was made at par.

Telesuprecon is in advanced stages of negotiations for securing Telecom infrastructure contracts of aggregate value about US 40 million to be executed over the next 12 to 21 months.

Gujarat based cement makers may be allowed to export

ET reported that Indian government seems to have gone on an over drive in its attempt to tame inflation. After partially lifting the ban on export of cement last month and allowing it to be exported from Gujarat ports, the government now wants to put in place safeguards to ensure that only companies based in the state can export cement.

The Directorate General of Foreign Trade has been asked to draft a notification banning cement produced outside Gujarat to be exported.

According to sources, as Gujarat accounts for about 90% of India’s cement exports, the move to disallow other states from exporting from Gujarat ports would not make a major impact.

An official said that "It is mostly cement manufactured in Gujarat which is being exported from the Gujarat ports. Cement exporters based in other states do not find it viable to come all the way to Gujarat to export. While allowing exports from earmarked ports might not amount to discrimination, making regulations which would only allow certain manufacturers to export while barring others could be challenged in the court."

It may be noted that a ban on cement exports was placed on April 11th 2008 as a move to check the rising price of cement in the domestic market. However, on May 27th 2008, the government decided to allow export of cement through Gujarat ports, including Mundra and Pipavav. The government explained that the relaxation was made as construction activity would slow down in the next few months because of the monsoon.

Cement companies based in Gujarat, including Gujarat Ambuja, Binani Industries, Ultratech, Sanghi Cement and Gujarat Siddhee, are understood to have benefited from the move. India exported 3.64 million tones of cement and 2.37 million tones of clinker in 2007-08.

VRL Logistics draws up INR 1100 crore CAPEX plan

ET reported that Indian logistics major VRL Logistics is on course for a major expansion of its facilities in India with an estimated investment of INR 1,100 crore over the next 2 years. It is planning to opt for pre IPO placements too.

With a top line of INR 4,400 crore in 2007, VRL Logistics plans to invest INR 539 crore towards the development of transshipment hubs in Gurgaon, Solapur and Bijapur. As per information furnished to SEBI, it plans to invest another INR 530 crore towards the expansion of its truck and bus fleet. A booking and delivery office with an investment of INR 40 crore is also planned at Gadag.

Presently, VRL has a fleet of 2,446 vehicles for transporting goods. It transports industrial freight such as textiles, agricultural products and pharmaceutical products. It is also planning to start transportation of iron ore from Karnataka for which it needs 300 trucks with higher tonnage capacity with more than 15 tonne.

The investment for fleet expansion is high on account of the number of trucks being added and also due to specialized designing of cargo trucks undertaken by the company at Varur. As the company owns a large fleet, its maintenance has pushed up VRL’s working capital needs significantly from INR 105.28 crore in fiscal 2005 to INR 223.5 crore for 6 months ended September 30th 2007.

VRL’s goods transportation business is based on a ‘hub and spoke’ model. Transshipment hubs located in major cities act as hubs and various booking points as spokes. Once, consignments are booked at the spoke, they are unloaded at the nearest hub based on destination of the consignment. VRL currently owns and operates 43 transshipment hubs in India.

The Gurgaon hub is expected to be spread over 8 acres, Solapur over 7 acres and Bijapur hub across 2 acres. To economize on fuel expenses, VRL plans to create high speed diesel consumer pumps at the 3 sites.

Mild steel ingot futures weaken in Mumbai exchange

PTI reported that futures prices of mild steel ingots has declined on account of government measures to contain rising inflation and slowdown in construction works with arrival of monsoon.

June 2008 contract of mild steel ingots were down by 0.73% at INR 32,450 per quintal, July 2008 contract was lower by 1.07% at INR 33,190 per quintal and August 2008 contract slipped by 0.97% at INR 33,580 per quintal.

According to Mr Somnath Dey in charge of Religare Commodities Metals & Energy Research, steel prices weakened due to lean season in construction related works on arrival of monsoon and will hover around INR 32,000 to INR 33,000 per quintal level.

Mr Maniyar of Karvy also attributed fall in the iron ore export by 8% to 11% for the decline of futures prices of steel. He noted that international prices are firm but the domestic factors are weighing down on the steel futures price.

Commercial viability of Futuregen to be known only in 2020

According to Mr James L Connaughton chairman of White House on Environment Quality, the commercial viability and technical reliability of the US sponsored Futuregen project, which is aimed at setting up zero emission coal fired power plants and of which three Indian public sector energy companies, namely Coal India Limited, NTPC and ONGC are partners, will be known only in 2020 as the project is currently undergoing restructuring.

Mr Connaughton pointed out that there would be more reserves and greater international participation. Instead of earlier one time funding to the tune of USD 2 billion, there would now be funding to the tune of USD 1 billion annually plus USD 9 billion worth of loan leverage. Also, instead of the earlier plant to set up one pilot plant by 2012, there would three to 4 commercial plants in addition to a dozen R&D plants across the world.

Although Futuregen project was being discussed for a long time, Mr Bhattacharyya chairman of CIL felt that not much progress had been made in this regard. He also wanted to know if carbon caption storage could be implemented in respect of existing plants.

Cochin Port to invite fresh bids for capital dredging

BL reported that Cochin Port Trust is likely to invite fresh tenders for capital dredging together with maintenance dredging at Vallarpadam International Container Transhipment Terminal at Kochi in Ernakulam district of Kerala.

The total dredging cost is estimated to be INR 485 crore and the dredging companies have to submit the tenders within one month. The dredging to be carried out is to the extent of approximately 24 million cubic meter and maintenance dredging of 16 million cubic meters in the next 2 years.

It may be noted that CPT was forced to cancel the tenders which were floated earlier in November 2007, as the price quoted by the international company was 70% higher than the estimated cost. Besides, the port did not get sufficient response for the tender as there was only one firm, which placed its bids for the work.

Port of Antwerp looking to invest in Indian ports

BL reported that Port of Antwerp is looking at investing in Indian ports and offer consulting services.

Mr Raj Khalid representative of Port of Antwerp India said that "We are looking for a tie up with players in the port sectors provided they come to us and if it meets certain criteria and if we can add value to it then we will take up the project. There have been enquiries and offer to partner with us. Once we find the right partners then we will even invest in those projects."

Mr Khalid said that "We are a landlord port and good at managing it. Indian ports follow the same pattern. So we can share our management skill s with the local players."

The Port of Antwerp in Belgium, which handles more than 180 million tonnes of freight annually, is a multi purpose port.

India establishes offshore safety regime in oil & gas sector

Union ministry of petroleum & natural gas has decided to notify Petroleum & Natural Gas (Safety in Offshore Operations) Rules 2008 for regulation of safety in offshore oil & gas exploration, exploitation, production, drilling and matters connected therewith, in exercise of powers conferred by Section 5, 6 & 7 of the Oilfields (Regulation and Development) Act 1948.

These rules will be applicable to all public sector undertakings, private and JV companies operating in territorial waters, contiguous zone, continental shelf and exclusive economic zone of India in offshore upstream oil & gas sector.

These rules would benefit the industry to enhance safety levels, bring uniformity in safety standards across all companies, minimize production loss or accidents and optimize use of precious oil & gas resources of India.

Oil Industry Safety Directorate, a premier technical arm of ministry of petroleum & natural gas, has been designated as competent authority to exercise the powers under the rules. It will develop HSE standards, conduct safety audits and carry out investigations to meet the requirements of these rules.

Since its inception in 1986, Oil Industry Safety Directorate has been doing pioneering work in improving safety in oil & gas sector both in onshore upstream operations and entire downstream sector namely refining, gas processing, storage and distribution, transportation through rail, road and cross country pipelines. It has developed 110 technical and HSE standards, conducted more than 2000 safety audits, trained more than 7000 personnel and carried out more than 200 accident investigations. With entrustment of responsibility of offshore safety, it will become the sole agency looking after the safety in all activities across the entire hydrocarbon chain.

Gas based combined cycle power plant commissioned at Valuthur

The first stage of the 92.2 MW Valuthur gas based combined cycle power project has commissioned at Valuthur in Tamil Nadu. The capacity of the first stage is 60 MW and the balance 32.2 MW capacity will be commissioned in a month’s time.

Mr Jairam Ramesh union minister of sate for commerce & power and Mr Arcot Veeraswamy power minister of Tamil Nadu were present on the occasion. The project is supplied with gas from a nearby gas field of ONGC and the turbines have been procured from the energy company, Ansaldo. The gas for the project is coming from ONGC wells of Ramnad zone.

Mr Ramesh said that uranium fuel for the 2 x 1000 Mw units at Koodankulam in Tirunelveli district have arrived from Russia and both Russian supplied reactors are likely to come into commercial operation by end of 2009. The plans of the Department of Atomic Energy are to generate 20,000 MW of power by the year 2020 of which 8000 MW are to come from Koodankulam type light water reactors.

He also complimented the TNEB for signing a MoU with BHEL to set up two 800 MW supercritical units at Udangudi in Tuticorin district with a total investment of close to INR 8500 crore. He revealed that the JV agreement between TNEB and BHEL forming the Udangudi Power Corporation Limited has been finalized and will be signed soon. The application for the coal linkage has also been made. The present schedule is to commence work by October 2008.

Punjab plans INR 1,225 crore for upgrading link roads

Projects Today reported that Punjab government is planning an ambitious INR 1,225 crore investment for expanding and upgrading link roads network in Punjab and modernizing its agricultural marketing infrastructure in the state.

While existing link roads measuring 7,200 kilometers will be repaired at a cost of INR 600 crore, the network will be expanded by adding 1,500 kilometers of new link roads, with an additional expenditure of INR 225 crore. The new link roads measuring 20 kilometers will be constructed in each of the 108 rural constituencies in the state as per prescribed norms of rural population.

The Punjab Agricultural Marketing Board has been asked to undertake the modernization of agriculture marketing infrastructure through out the state. The task will be completed within the next 2 years at a cost of INR 400 crore.

Titagarh Wagons - Outcome of board meeting

Titagarh Wagons Limited has informed BSE that its board of directors has considered and approved the following at its meeting held on June 18th 2008

1. Agreement to invest in a JV company for the purpose of ensuring supply of critical components required for manufacture of railway wagons

2. Payment of an installment of dues of workmen of Cimmco Birla Limited in terms of a tripartite agreement among workmen, union of workmen, labor department, state government of Rajasthan and the company, in furtherance of revival in strategic partnership with JP Morgan Mauritius Holdings Limited, of CBL subject to approval of the Board of Industrial and Financial Reconstruction subsequent to submission of a draft scheme of revival.

Indian inflation seen at 9.82% on June 7th 2008 – Reuters poll

A Reuters poll showed that India's annual inflation rate is expected to have jumped to 13 year highs near 10% in early June 2008, powered by a fuel price rise. The wholesale price index is forecast to have risen to 9.82% in the 12 months to June 7th 2008, which would be the highest since June 3rd 1995, when annual inflation was at 9.89%.

The forecasts from 12 analysts ranged widely from 9.63% to 10.62% and compared with an annual rise of 8.75% in the previous week. Four economists in the poll estimated the data to come in at above 10%, its first double digit reading since May 27th 1995.

It would be the 17th consecutive week that inflation rate has been above 5.5%, the central bank's target by the end of the fiscal year in March 2009.

India had raised state set fuel prices by about 10% on June 4th 2008 and the central bank last week raised its key lending rate for the first time in more than a year to contain inflation expectations.

India's chief statistician Mr Pronab Sen said that headline inflation would hit double digits sometime in the coming weeks and was likely to hover around 8% to 9% before declining in the last quarter of 2008. The wholesale price index is more closely watched than the consumer price index because it includes more products and is also published weekly.

PGCIL 2007-08 net profit up by 17.82 % YoY

Power Grid Corporation of India Limited has reported a net profit of INR 1448.47 crore for the financial year ended March 31st 2008 up by 17.82% YoY. The turnover was recorded at INR 5081.53 crore up by 24% YoY as against INR 4097.15 crore.

At present POWERGRID is operating around 68,000 kilometers of transmission lines along with 115 sub stations with transformation capacity of more than 75,000 MVA. With the use of state of the art preventive maintenance techniques, average availability of transmission systems during the year 2007-08 was maintained at 99.65%.

POWERGRID continues to wheel about 45% of total power generated in India through its transmission network.

Planning Commission revises capacity addition to 78,700 MW

The Planning Commission has marginally revised capacity addition to 78,700 MW from 78,577 MW for the 11th Plan period. Projects with capacities of 11,464 MW which turned out to be non feasible have been excluded from the capacity addition plan. However, these projects have been replaced by additional projects with the generation capacities of 11,587 MW.

The new projects of 11,587 MW which have been included in the revised capacity addition, include
1. Raghunathpur – 1,200 MW
2. Pragati III – 1,500 MW
3. GSEG Hazira Extension – 351 MW
4. Pipavav – 702 MW
5. Marwa – 1,000 MW
6. Rayalseema – 210 MW
7. Rosa – 600 MW
8. Jalipa Lignite - 1,080 MW
9. JSW Energy – 1,200 MW
10. Adani Power – 1,320 MW
11. Lanco Nagarjuna – 1,015 MW
12. Sterlite Energy – 600 MW
13. Teesta III Hydro – 600 MW
14. Pulichintala Hydro – 120 MW
15. Chutak Hydro – 44 MW
16. Nimoo Vazgo Hydro – 45 MW

The Planning Commission, which recently undertook a review of the addition in capacity, projected an increase in capacity of 11,061 MW for 2008-09. Of the 78,700 MW, thermal power projects will have a major share with generation capacities of 59,639 MW followed by 15,627 MW by the hydro power sector and 3,380 MW by nuclear plants. Nearly 36,874 MW will be generated by the central government organizations, 26,783 MW by state units and 15,043 MW by private firms.

BHEL outbids Alstom for Tripura power project

Bharat Heavy Electricals Limited has emerged as the lowest bidder by outbidding Alstom for developing the 740 MW gas based power project at Pallatana in Tripura on EPC basis. While BHEL quoted INR 2,500 crore, Alstom's quote was of the order of INR 5,000 crore.

ONGC Tripura Power Company is an SPV floated by ONGC with 50%, Tripura government with 0.5% and IL&FS with 26% for implementing the project. The balance 23.5% stake will be tied up with suitable investors.

NHPC approves power exchange JV

National Hydroelectric Power Corporation has given its approval to enter into a MoU for forming a JV for development and operation of the power exchange.

The share holding of NTPC is 16.67%, NHPC is 16.67%, PFC is 16.66% and that of TCS is 50%. Share holding of TCS will be brought down to 16.66% after incorporation of the JVC by off loading their share toother private entities issue of fresh equity capital.

This will be the third power exchange, which will be formed as the Central Electricity Regulatory Commission has given final clearance on June 10th 2008 to the MCX-Financial Technologies promoted Indian Energy Exchange.

It is learnt that, the power exchange will initially trade a day ahead and subsequently also handle transaction for short-term, long-term, round the clock and hourly basis. The exchange will also be able to cash in on the burgeoning demand for power from various states at a time when peak shortages have been in the range of 27,000 MW.

Mysore metro proposal on fast track – Report

Mysore Urban Development Authority has announced after a meeting in April 2005 that the officials of the Mass Rapid Transport System, who were giving shape to the Bangalore Metro, would be requested to conduct a survey and submit a report within 3 months to 4 months, after the state government cleared the proposal.

BJP MP Mr CH Vijayashankar is confident of pushing the Mysore Metro proposal further from there. He has asked the MUDA not to delay any more in initiating the proposal.

Mr Vijayashankar said that "MUDA has not taken any action so far on the Metro proposal. Metro or mono, it should identify the land and notify the same now alone, so that there should be no problem for land for a city rail system later. We will discuss the Mysore Metro also at this meeting and request the Government to give a green signal for the survey, so that the work begins in a year."

Criticizing the indifferent attitude of the MUDA officials in responding to the local aspirations on projects like Metro, peripheral ring road and identifying land for bus stands around the city, he said that "We have our own government in the state now. They cannot continue to be indifferent towards development projects. They have to give top priority for their execution."

Mr Vijayashankar claimed that because of his initiatives more funds had come for the Mandakalli Airport development, rail-track doubling between Bangalore Mysore and creation of additional platforms and modernization of the Mysore Railway Station.

Indian Railways to launch trial run of double stack box trains

Exim News Service reported that Indian Railways will launch a 15 day trial run of freight trains that can double stack containers from the first week of July 2008. The trial run is part of its dedicated freight corridor project.

As per report, Research Design & Standards Organization will conduct the dry run on a 60 kilometers stretch in Orissa.

The dry run would be conducted between Daitari and Jakhapura to establish a new height for the overhead electrical equipment line so that double stack containers can run on electrified lines. The electric wires are likely to be put up at a height of 7.4 meters.

If the experiment succeeds, India will have obtained the new technology to run double stack containers on flat wagons.

Indian Railways award contract for aluminum coaches

BL reported that, in order to increase its load carrying capacity and fuel efficiency, Indian Railways have awarded contracts to 2 private wagon manufacturers namely BESCO Limited and Texmaco Limited for manufacture and supply of 300 aluminum wagons. The value of the contract is estimated to be INR 50 crore.

Mr RK Rao member mechanical of railway board said that "We have placed order for supply of 300 aluminum wagons on an experimental basis with 2 private wagon manufacturers. If the trial runs succeed, the railways will shift to aluminum wagons as these offers various advantages over steel and stainless steel wagons that are in use."

Meanwhile, with the railways deciding to shift to aluminum wagons, private wagon manufacturers are ramping up their operations. Recently, Kolkata based Titagarh Wagons Limited received nod from the Foreign Investment Promotion Board for setting up a JV with Chicago based Freight Car America to test market and manufacture aluminum rail cars at an estimated cost of INR 120 crore.

IFGL Refractories gets ISO 14001 Certification

IFGL Refractories Limited has recently been accorded by BSI Management Systems India, Registration Certificates on Quality Management System ISO 9001:2000 and Environmental Management System ISO 14001:2004 for the operation of its facilities at Kalunga Industrial Estate near Rourkela.

Besides India, IFGL Refractories has refractory making units in UK, the US, China and Brazil.

Power and steel ministries seek priority based gas allocation

FE reported that, amidst the central government’s move to finalize the gas utilization policy, ministries of power and steel have made a strong pitch for the suitable allocation of gas on priority. The power ministry, which is pursuing the capacity addition of 78,700 MW in 11th Plan period, argued that there is a perpetual shortage of around 39 million standard cubic meters per day of gas for the power plants in the country including about 7 million standard cubic meters per day of gas for National Thermal Power Corporation’s power stations.

The power ministry has said that the additional demand may be met by making suitable gas allocation on priority. The ministry wants prioritization for the power sector for the allocation of gas, in view of the current power shortage in India, which even exceeds 14% during the peak time. The utmost priority needs to be accorded to the power sector for the allocation of gas, which will not only help to achieve the goal set by the country aimed at accelerated growth, but will also address concerns about the global warming.

On the other hand, the steel ministry said that the gas based steel plants are mostly running below their installed capacities in the range of 60% to 85%. Under the normal condition, if natural gas is supplied uninterrupted through pipeline, these plants are capable of operating in the 90% to 95% range. This phenomenon itself is causing a loss of 1.0 million tonne of steel production in India. The steel ministry has demanded that the centre, under the gas utilization policy, should consider steel as a priority sector for the supply of natural gas at par with fertilizers and supply of allocated quantity to be made on the basis of long-term price contract basis to the gas based steel units.

Petroleum ministry sources said that as regard the order of priority for allocation of gas, it has identified the following priority fertilizer plants, LPG and petrochemical plants, power plants, city gas distribution network, refineries and other industries including steel.

Japanese steel mills a value for takeovers - Kobe

According to Mr Yasuo Inubushi president of Kobe Steel, Kobe Steel Ltd and its biggest Japanese rivals are attractive takeover targets because declines in market value this year have made them cheap.

Mr Inubushi told reporters that “Steel consolidation is still going on. Each of Japan's blast furnaces lost JPY 1 trillion (USD 9.2 billion) or more in market cap, so they may be good value.''

Mr Inubushi added that “There are no viable steps to prevent a takeover, except for increasing the company's market value.”

Kobe and Nippon Steel Corp implemented takeover defense plans in 2006, after Mittal Steel Co bought Arcelor SA to form the world's largest steelmaker with three times the annual production of its closest rival. The acquisition helped spur a rally in Japanese steel shares that fizzled after the companies signaled they would fend off mergers. Kobe, Nippon Steel and Sumitomo Metal Industries Ltd said that they would spend JPY 260 billion buying stakes in each other to bolster takeover defenses and strengthen a production alliance.

Masteel gets LME nod for billet futures contracts in Far East

It is reported that Malaysia Steel Works Bhd has received the London Metal Exchange’s approval to list its steel products for futures contracts.

Masteel said that the listing of its products would be under the brand name Malaysia Steel Klang for delivery against the LME’s Mediterranean and Far East contracts for steel billets.

The company told Bursa Malaysia that for the LME steel futures trading only steel producers with certified confirmation of quality from billet users could be listed. It added that in the steel industry, the LME intended its billet contracts to be used by steelmakers, scrap processors, rebar re rollers, traders and construction companies as a financial tool to manage price volatility associated with physical spot billet market.

It said that “The contracts for steel billets will be traded 15 months forwards as well as three months forward, which will provide a forward curve of prices to July 2009.”

Masteel added the first cash daily trading would be on July 24th 2008 and the first cash prompt date would be July 28th 2008. It said that about 30 million tonnes of merchant billets were physically traded worldwide. These billets are those that are not used internally by steelmakers.

ThyssenKrupp VDM commissions die forging press at Unna

SMS Meer a company of the SMS group has successfully commissioned the delivered 45 MN open die forging press at ThyssenKrupp VDM Unna plant. The official opening ceremony was attended by the Minister for Economics of North Rhine Westphalia, Ms Christa Thoben and other high ranking personalities from business and politics.

The order placed with SMS Meer was for a new push down forging press of four column design. The forging force is 40 MN (roughly 4,000 tonnes) and the upsetting force 45 MN. The press can operate at a speed of 124 strokes per min and is able to handle billets with a maximum weight of 60 tonnes.

SMS Meer supplied the complete mechanical equipment, including electrical systems and automation with the FORGEBASE control software that also controls the two forging manipulators supplied by the customer.

The whole press was mounted on a spring/damper combination to allow for the specific mining related ground conditions at the site and at the same time to protect the neighboring residential area against the typical forging related vibrations. The completion time for the entire project of only 14 months was extremely short.

The new press represents an important step for ThyssenKrupp VDM in strengthening its position as one of the world’s leading suppliers of high strength nickel based alloys. The products made from nickel alloys and special stainless steels are employed in the aerospace industry, oil, gas, energy and environmental technique, the automotive industry and a large number of further applications.

Formosa Plastics to break ground on Vietnam steel mill

The Economic Daily News citing Formosa Plastics group officials reported that Formosa Plastics group is due to hold a groundbreaking ceremony on July 6 for a Vietnam steel mill project.

As per report Formosa Plastics group is planning to invest USD 8 billion initially to build the steel mill, which will have annual capacity of 7.5 million tones and the construction is due to be completed in 2011,

The report added that project participants include Formosa Plastics Corp, Nan Ya Plastics Corp, Formosa Petrochemical Corp, Formosa Chemicals & Fibre Corp and Formosa Heavy Industries Corp.

Nucor Darligton to modernization rolling mill No 1

Nucor Steel Darlington, part of the Nucor Bar Mill Group and a producer of steel bars, has placed an order with SMS Meer for the supply and commissioning of a new intermediate and new finishing train to be installed at Mill No 1 at Darlington in South Carolina of USA. Delivery is scheduled for the winter of 2009/2010.

The new continuous intermediate and finishing mill will comprise four horizontal, one vertical and three convertible housing less stands and will replace the existing rolling mill.

The order placed with SMS Meer also includes the supply of all the gearboxes, spindles, supports and protection facilities. The scope of supply is completed with a flying shear, inter stand equipment, quick change devices and tools, hydraulic and lubrication units as well as an additional 12 change cassettes. All equipment will be pre tested in the workshop at SMS Meer before delivery.

The automation package includes a PLC and the corresponding software for the new stand controllers. The new system will be linked to the existing system via an interface.

SMS Meer will also be responsible for the supervision of erection and Commissioning. This further investment forms part of an extensive program undertaken by the Nucor Group to bring all its facilities up to the state of the art in order to safeguard its competitiveness.

The target of this upgrade is to increase the availability of the mill by reducing changing, set up and tuning times and optimizing spare part stocking. All these operations will be simplified after the introduction of uniform stands in one size in the intermediate and the finishing train.

CMC Q3 profit declines on higher LIFO expense

Commercial Metals Co a manufacturer of steel and metal products, reported a decline in third quarter profit, hurt by a record Last in First Out or LIFO expense. The company reported net earnings of USD 59.5 million on net sales of USD 2.9 billion for the quarter ended May 31st 2008 as compared with net earnings of USD 99.4 million on net sales of USD 2.2 billion for the third quarter last year.

CMC said that this year's third quarter included after tax LIFO expense of a record USD 83 million as compared with expense of USD 20.1 million in last year's third quarter. Net earnings for the nine months ended May 31st 2008 were USD 168.4 million on net sales of USD 7.3 billion as compared with net earnings of USD 250.7 million on net sales of USD 6.0 billion.

Selling, general and administrative expenses in the third quarter included USD 18.2 million of pre tax costs associated with the investment in the global deployment of SAP software. For the nine months ended May 31st 2008, the amount was USD 43.2 million. Other costs of USD 8.7 million were capitalized during the quarter. We have expensed USD 78 million and capitalized USD 68 million for the project to date.

Mr Murray R McClean president & CEO of CMC said that "Global markets maintained strength. The quarter was marked by unprecedented upward volatility in ferrous scrap and steel finished goods pricing. Following the upward movement in scrap prices, rebar and merchant pricing increased USD 212 a short ton during the quarter. Though management had anticipated significant upward movement in pricing, the extreme increases were unforeseen and led to an enormous LIFO charge. The LIFO charges reflect the rapid pricing changes and affected all our Americas segments, but they mask the underlying strong markets. Our Americas Recycling segment rode the ferrous scrap price increases to record quarterly results. The Americas Mills segment had increases in tons melted, rolled and shipped, including some export sales. Our Americas Fabrication and Distribution operations were hit with the double barrel of LIFO charges and margin compression on the rapidly escalating steel prices; however, our steel import distribution results were encouraging. The International Mills segment remained a tale of two cities strong at Zawiercie in Poland and the expected turnaround cost at Sisak in Croatia. Our International Fabrication and Distribution segment was opportunistic in this volatile environment and showed record results."

ArcelorMittal to raise steel wire product prices in US

Platts reported that ArcelorMittal will raise the price of all steel wire products by USD 80 per short tons effective with shipments from July 14th 2008.

ArcelorMittal said that the price increase is required to keep pace with the continued escalation of raw material prices, namely carbon wire rod.

Steel wire rod transaction prices have moved up to about USD 985 per shor tons in the US following multiple price increases from mills over the past few weeks. The USD 985 per short tons figure is the current ex works mill base price for low carbon wire rod used in wire mesh, pre stressed concrete strand, fencing and other industrial quality products.

Wire rod buyers in the US have absorbed back to back price increases of USD 60 in both May and Jun, and spot prices have risen from about USD 750 per short tons at the beginning of the year.

US domestic producers have gained pricing strength from the sharp decline in wire rod imports over the past year. Chinese imports alone are down by 90% and other foreign suppliers have been discouraged by the threat of trade sanctions.

RIVA Acciaio orders Goodfellow EFSOP system

RIVA Acciaio SpA has ordered one Goodfellow EFSOP® process optimization system for their EAF furnace operations at RIVA Alpa in France. Increased optimization based on the following parameters: decreased electrical, charge carbon, oxygen and methane consumption and increased productivity is part of the scope of supply along with Tenova Goodfellow’s water detection for improved safety within the furnace environment.

The EFSOP® system is part of an extensive modernization of the meltshop automation and process control. New automation and process control of the 90 tonne EAF will be undertaken by Tenova, as well as: modernization of the process control for the chemical package for the EAF; new ferroalloy and additives automation package for the EAF-LF; meltshop auxiliaries automation systems modernization; a new meltshop supervisory system including; supply of a new integrated meltshop networking Ethernet and Profibus bases; complete meltshop data collection, reporting and transmission to the RIVA ERP system.

This sale comes as a result of excellent benefits achieved at RIVA Verona in Italy in which two EFSOP® systems were commissioned in December 2006. The flexibility and comprehensiveness of the EFSOP Holistic Optimization™ approach demonstrated a significant increase in the plant’s performance capabilities.

Corus pursuing sale of two aluminum smelters

Reuters reported that Anglo Dutch steelmaker Corus is continuing negotiations over the sale of its primary aluminum smelters in Germany and the Netherlands.

Mr Jean Sebastian Jacques group director strategy at Corus on the sidelines of a steel conference told Reuters that “We have not changed our minds. We are still reviewing the strategic options in relation to those plants. As soon as we have something more specific, we'll disclose it to the market.” But he declined to give a time frame.

The smelters in Delfzijl in the Netherlands and Voerde in Germany have combined capacity to produce around 250,000 tonnes of primary aluminum annually. Including secondary production from scrap, they have total output of more than 300,000 tonnes of aluminum a year.

India's TATA Steel won a bidding battle in January 2007 to buy Corus. As TATA is focused on steel, industry analysts had expected the primary aluminum plants to be sold. Corus said that in December it signed a non binding letter of intent to sell the two smelters to US company American Industrial Acquisition Corp for an undisclosed sum.

Steel prices will rise 40% in Europe in 2008 - Deutsche Bank

Germany's biggest bank Deutsche Bank AG said that steel in Europe in 2008 will be 20% more expensive that it previously predicted.

The bank forecast hot rolled steel coil at USD 930 a tonne in 2008. Mr Timo Pirskanen analyst of Deutsche Bank in a report said that it is 40% more than last year.

According to Metal Bulletin data, Western European hot rolled coil, an industry benchmark almost doubled this year to USD 1,052 a tonne.

WCI Steel states legal challenge is without merit

WCI Steel in response to media inquiries concerning the legal challenge filed by Optima International of Miami and certain minority stockholders of WCI Steel Inc representing less than 18% of the shares outstanding.

WCI Steel issued that "The legal action initiated by Optima International and certain dissident stockholders is without merit. Holders of a majority of WCI Steel's shares approved, on May 16th 2008, an agreement of sale to OAO Severstal. We continue to believe that this transaction with Severstal provides the most value to WCI Steel stockholders, customers, suppliers and employees. We intend to vigorously defend against this baseless action and will continue to pursue an expeditious closing of the sale, which will significantly improve the long-term prospects for the Warren facility."

MMFX Technologies secures USD 55 million institutional funding

Irvine based materials science company MMFX Technologies that uses nanotechnology to manufacture high strength; corrosion resistant steel has received a USD 55 million commitment in secured debt financing.

The release said that “MMFX has received USD 27 million of the financing and will receive the remaining USD 28 million upon the startup of its Welland at Ontario in Canada steel mill facility. The steel mill’s state of the art equipment is designed to manufacture both conventional and MMFX high tech steel.”

The release added that “By using the higher yield strength of MMFX steel over conventional Grade 60 steel, construction projects can be completed with 20% to 50% less steel and up to 60% lower labor costs, changing the way buildings, highways and bridges are designed and built.”
Axiom Capital Management Inc acted as the procuring agent for the transaction.

MMFX Technologies Corporation, headquartered at Irvine in California was formed on June 22nd 1998 to commercialize its proprietary, micro and nanotechnologies that enable the manipulation of the microstructures of materials to obtain optimum micro structural properties. The current focus for MMFX’s core technology is uncoated steel that has a microstructure fundamentally different from conventional steel.

Corus new ultra low CO2 steelmaking project

As a leading member of the ULCOS project, Corus announced that a web site has been published explaining the background to ULCOS and the four candidate technologies being considered for further development.

www.ulcos.org will initially provide background information about the project. In time it will add further information and future announcements as the project progresses.

Tokyo ferrous scrap price rises by JPY 2,000 per tonne

JMB reported that electric furnaces steel makers around Tokyo increased the ferrous scrap purchase price by JPY 2,000 per tonne in the week.

The price is around JPY 66,500 to JPY 69,500 per tonne for H2 grade. The price is lifted under tight supply when exporters and integrated steel makers try to secure the material.

Daewoo Shipbuilding wins USD 520 million European orders

Daewoo Shipbuilding and Marine Engineering Co said that it won shipbuilding orders worth a total of KRW 532.8 billion (USD 520 million) from Europe.

Daewoo in a filing to the Korea Exchange said that the orders were for two very large crude oil carriers VLCCs and two bulk carriers, without specifying the number or names of buyers.

Indonesia needs new export-import ports - Mr Totok

Antara news reported that Indonesia needed new export-import ports to prevent goods congestions at Tanjung Priok port in 2012.

The report quoted Mr Totok Dirgantoro secretary general of the Indonesian Exporters Association as saying that "I suggest the construction of a new port in Bekasi and Karawang to handle our export import goods.”

He said that “PT Pelindo I, II and III, are capable to build new ports with an investment ranging from IDR 400 million to IDR 500 million. In this way, industries in Tasik, Bandung, Garut, Karawang, Cilegon and Cikarang could export their products through those new ports as 40% to 60% of our exports came from those regions.”

Mr Toto said ideas on the building of dry ports in industrial estates, would not solve problems of the flow of goods. He added that “Tanjung Priok is now already too crowded and the building of a dry port here would have to include roads which will increase investment, especially if it is necessary to build toll road leading straight to the port.”

Hyundai Steel buys HMS 80:20 from US

According to the market report, South Korean Hyundai Steel has purchased H1 & H2 (80:20) mixed scrap at USD 645 per tonne CNF from America for August shipments.

The price of shredded scrap was settled at USD 650 per tonne CNF, P&S scrap price was at USD 655 per tonne CNF and busheling scrap price was USD 665 per tonne.

At the same time, SeAH Besteel said that it bought 30,000 tonnes of shredded scrap at USD 739 per tonne from Schnitzer Steel of America. The company spent USD 734 per tonne to buy H1 scrap on C&F basis from one metal recycling company of Australia.

(Sourced from YIEH.com)

Technip wins deepwater pipeline contract in Gulf of Mexico

Technip announced that it has been awarded a lump sum installation contract by Callon Petroleum Company for the Entrada oil field development in the Gulf of Mexico.

The contract covers the installation of
1. Two 6.5 mile steel flow lines that will tie back two subsea wells at a depth of 4,475 feet
2. PLETs and inline structures,
3. Steel catenary risers to be connected to the Magnolia offshore platform in 4,675 feet of water depth.

Technip said that “Detailed engineering and project management will be performed at Technip’s operating center at Houston in Texas and welding of the flow lines and risers will take place at Technip's spool base located at Mobile in Alabama.

Offshore installation is scheduled for the third quarter of 2008 using the Deep Blue, Technip's deepwater pipe lay vessel.

Chinese growth created new dynamic in global steel industry

According to Mr Michel Wurth member of ArcelorMittal board, growth in China and other emerging economies has led to a new dynamic in the steel industry.

Mr Wurth while speaking at a conference in London said that “The steel market has become much more volatile, because of market behavior and consolidation. Growth in China and other emerging economies has led to a new dynamic.”

He added that “Consolidation is good as you have better and more rational behavior.”

Mr Wurth said that “An unprecedented rise in raw material costs has led to a new volatility in the steel market. Cost pressure is very high and consolidation can only mitigate this situation slightly.''

Striking South Korea truckers trickle back to work

Reuters reported that hundreds of striking South Korean truckers whose protest has paralyzed ports and cost export firms billions of dollars, reached deals with employers and returned to work on Thursday, easing pressure on an embattled president.

On Wednesday, thousands of construction workers and hundreds of other truckers went back to work after the government offered them deals that would save them money on operating costs.

The South Korean transport ministry said that the truckers reached tentative agreements with employers including steelmakers POSCO and Hyundai Steel for higher pay.

The labour strikes have cost the country at least USD 6 billion in lost business as some companies stopped production lines after they ran out of storage space and ran low on parts and materials.

The transport ministry said the amount of cargo going through ports is picking up as truckers return to work but overall levels are much lower than normal because ports remained clogged.

US DOC puts AD and CVD on light walled rectangular pipes from China Korea and Mexico

Department of Commerce has announced its affirmative final determinations in the antidumping duty and countervailing duty investigations on imports of light walled rectangular pipe and tube from Mexico, the People’s Republic of China, and the Republic of Korea.

Commerce determined that Chinese, Korean and Mexican producers/exporters have sold rectangular pipe in the United States at 249.12% to 264.64%, 1.30% to 30.66% and 2.92% to 11.50% less than normal value respectively. It also determined that Chinese producers/exporters received net countervailable subsidies ranging from 2.17% to 200.58%.

As a result of these final AD determinations, Commerce will instruct US Customs and Border Protection to continue to collect a cash deposit or bond based on the final rates, except when de minimis, where no cash deposit or bond will be required. Suspension of liquidation will only resume for purposes of countervailing duties if the US International Trade Commission issues an affirmative injury finding and Commerce issues a CVD order.

The final dumping margin for Kukje Steel Company Limited a mandatory respondent in the Korea investigation is based on adverse facts available as this company did not cooperate to the best of its ability in this investigation. Further, five companies in the Mexico investigation and eight additional companies in the Korea investigation received rates of 11.50% and 30.66% respectively, based on total adverse facts available because they failed to respond to our requests for quantity and value information. The final AD margin for the Chinese exporter/producer Zhangjiagang Zhongyuan Pipe Making Company Ltd and the final CVD rate for Chinese exporter/producer Qingdao Xiangxing Steel Pipe Company Limited are also based on adverse facts available because these companies did not cooperate to the best of their ability in these investigations.

Additionally in the China AD investigation, Commerce determined that critical circumstances exist solely for the China wide entity.

The petitioners for these investigations are Allied Tube & Conduit Corp, Atlas Tube, Bull Moose Tube Company, California Steel and Tube, EXLTUBE, Hannibal Industries, Leavitt Tube Company LLC, Maruichi American Corp, Searing Industries, Southland Tube, Vest, Inc, Welded Tube and Western Tube and Conduit.

The merchandise covered by these investigations is certain welded carbon quality light walled steel pipe/and tube of rectangular cross section, having a wall thickness of less than 4mm. Carbonquality steel includes both carbon steel and alloy steel which contains only small amounts of alloying elements.

Rebar prices in UAE cross USD 1500 mark

It is reported that the rebar prices in UAE market are being quoted at AED 5500 levels, which is equivalent to USD 1500 per tonne and is a historic landmark.

Rebars in BS 4449 grade 460 at AED 5000 per tonne levels till June 9th 2008 and witnessed a jump of AED 200 per tonne on June 10th 2008 followed by AED 300 on June 11th 2008. Since than, they have been at a level of AED 5500 per tonne during the week.

As per market sources, the prices may further increase in the next week by a minimum of AED 100 per tonne.

(Sourced from Steelprices-middleeast.com)

Oyak against ArcelorMittal takeover attempts of Erdemir

Turkish daily Sabah reported that Oyak Group, the owners of Eregli Demir & Celik Fabrikalari TAS, is planning to resist any attempt by ArcelorMittal to seize control of the company.

The report cited Mr Coskun Ulusoy CEO of Oyak Group as saying that ArcelorMittal won't succeed in taking control of Erdemir by buying shares from investors. Oyak Group holds more than 50% of Erdemir's shares.

Mr Ulusoy said that "ArcelorMittal may continue collecting as many shares as they please from the stock market, however, as long as I am the manager of Oyak, Erdemir will not be sold. Furthermore, the share rate limit is well known."

Mittal had started buying shares from Erdemir in 2002. Before the privatization tender held on October 5th 2006, Mittal's shares were at 8.6%. ArcelorMittal on June 16th 2008 paid USD 869 million to raise its stake in Erdemir to 25%.

Egyptian steel market unstable due to price hike

Al Ahram reported that, over the past few months, Egyptian steel market has been unstable due to supply shortage and frequent hike in prices. In fact, the price of steel jumped from EGP 3,800 per tonne in November 2007 to EGP 8,000 in June 2008.

In an attempt to control the volatility of the steel market and in response to consumer complaints, the ministry of trade & industry has issued decree 419 for 2008 regulating steel trading. The decree states that each steel factory must determine a maximum sale price, according to production cost, to indicate the price for wholesalers, traders and consumers. All steel dealers will be obligated by this price and violators will be penalized.

Moreover, MTI began receiving consumer complaints in all governorates on the hotline 19805. Minister of Trade and Industry Rachid Mohamed Rachid announced that the aim of the decree was to control prices, as well as protect consumer rights by using legal regulations to stabilize the steel market. According to MTI, the new regulations comply with the anti monopoly and competition law, and that the Egyptian Competition Authority will cooperate in applying decree 419.

In reaction to the soaring steel prices, parliament member Mr Mustafa Bakri has presented a memo to the prosecutor general accusing Ezz Steel Group of monopolizing the market to control prices.

Mr Ali Moussa chairman of the Construction Materials Division at the Federation of Egyptian Chambers of Commerce explained that there are no monopoly acts in the steel market as consumers claim, but there are three reasons behind record steel prices, shortage in supply, rise in the price of steel billets and the difference of steel prices depending on each factory's cost price. He added that "This led to different prices for steel on the market and helped traders sell at high prices."

The new decree, according to him, is a good step which will help stabilize prices, although it will do nothing for rising billet costs or shortage in supply. Moussa revealed that due to the continuous increases in the past few months and speculation that cost will continue to rise, consumers and contractors began to stockpile their needs of steel. This caused a shortage in supply, but according to free market rules prices are left to supply and demand.

DP World to acquire majority stake in Contarsa Sociedad

Dubai ports operator DP World has agreed to purchase a majority stake in Spanish firm Contarsa Sociedad de Estiba, which runs Tarragona Container Port Terminal near Barcelona. The purchase will give DP World its first operation in Spain.

DP World has been on a massive global expansion drive over the last couple of years, snapping up port operators and terminal operations from the UK to China. It posted 2007 after tax profit from continuing operations of USD 419.7 million up by 52% YoY on the previous year. Revenue grew up by 32% YoY in 2007 to USD 2.73 billion.

KOC invites bids for massive refinery pipeline project

MEED reported that Kuwait Oil Company has invited international contractors to submit bids by July 27th 20 for the long awaited contract to build pipelines to supply crude feedstock for the state's planned 615,000 barrel a day grassroots refinery at Al Zour.

The precise scope of works for the estimated USD 500 million project is still unclear, but it is thought that it will require the construction of at least 3 main oil pipelines to the Al Zour refinery, each one carrying a different type of crude as well as fuel oil. It is also unclear at this stage if the contract covers the construction of return pipelines transporting low sulphur fuel oil and liquefied petroleum gas back to the Mina al Ahmadi refinery.

A total of 20 contractors are pre qualified to bid as a main contractor for the lump-sum engineering, procurement and construction contract. They include
1. Chiyoda Corporation and JGC Corporation
2. Bechtel and KBR
3. Technip
4. Snamprogetti
5. Petrofac International
6. Hyundai Engineering & Construction Company
7. Daelim Industrial Company
8. SK Engineering & Construction
In addition, 14 companies have been pre qualified as a consortium partner. The list includes Athens based Consolidated Contractors International Company, UK's Penspen, Turkey's Tekfen and the US' Wilbros.

A pre tender meeting will be held on June 29th 2008.

Kuwait National Petroleum Company recently awarded the main process packages on the USD 15 billion Al Zour refinery. While KNPC has responsibility for the scheme's overall development, control of the supply pipelines falls under KOC's charge.

Update on Dubai Metro project

UAE based Roads & Transport Authority recently announced that it produced around 90% of viaduct pre cast segments till date at the Jebel Ali Casting Yard, which is currently one of the world's largest casting yards.

Mr Adnan Al Hammadi director of rail construction department at Rail Agency said that it completed with 11,000 pre cast segments out of 12,300 for the Red Line at the Jebel Ali Casting Yard and 70% of the viaduct spans erected for the Red Line till date the elevated structures for the Metro project are slowly but surely snaking their way with ease all over the city. Currently 2500 pre cast segments are ready for delivery in the casting yard which has a storage capacity of 3000 segments.

Mr Al Hammadi said that "The pre casting plant employs more than 1800 workers and the concrete segments are transported on demand from the casting yard to the launching gantry sites using 33 heavy haulage trucks. The casting yard produces around 40 segments per day using roughly around 800 cubic meter of concrete per day and 160 tonnes of steel per day. More than 350,000 cubic meter of concrete, 75000 tonnes of reinforcement steel and 13,500 tonnes of post tensioning high strength stands steel and 500 tonnes of epoxy glue will be required. Around 63 moulds are used and within these types a total of 33 different designs are required depending on the use of the element to be casted."

He added that "The project will call for 1700 spans in total to be constructed for both the lines with a total of 16500 segments, nine tower cranes and 11 gantry cranes. Launching gantries are used for the majority of the viaduct construction providing a fast track installation process enabling the erection of a complete viaduct span in 2 days."

Currently 10 launching girders are working at a time using the span by span erection method while the balanced cantilever method is used for about 5% of the project for special bridges spanning over 72 meters and above urban obstacles like interchanges, existing & future road projects.

Alfanar wins USD 267 million construction contracts from SEC

Trade Arabia News Service reported that Alfanar Construction Company has clinched contracts worth more than SAR 1 billion for the construction of new power plants and substations of Sharourah Power Plant by the Saudi Electricity Company.

The extension work involves the engineering, designing, procuring, supplying and delivering of all equipment and materials to the work site besides constructing, installing, testing and commissioning the power plant. The lump sum contract, valued at SAR 360 million, is scheduled to be completed in 23 months.

Alfanar has also been awarded the SAR 500 million project for the construction of the new Kandarah 380/110/13.8kV substation in Jeddah city by Saudi Electricity Company. The substation, on completion, will supply power to the Central areas and the downtown of Jeddah city and enhance the power capability in those areas.

Earlier in 2008, Alfanar had announced the signing of a new contract worth SAR 505.71 million with the Saudi Electric Company for the execution of the project titled 'Construction of the 380kV substation works associated with the integration of Rabigh 2 Power Plant.'

Pakistan sees 14% decline in FDI

Business Recorder reported that foreign direct investment during the current fiscal year declined by 14% mainly due to uncertainty on political front and continued demonstrations in Pakistan.

Analysts said that despite the fact that a political government has been set up in Pakistan, the confidence of foreign investors in Pakistan's economy has not revived and they are still reluctant to invest in Pakistan due to continued demonstrations, especially by lawyers, across the country and political battle. They added that although the investors want to invest in Pakistan, they believe that the change in the political set up would hurt their investment

State Bank of Pakistan data showed that net foreign investment including FDI and portfolio investment declined by 37.2% to USD 3.943 billion during eleven months of current fiscal year in slow portfolio inflows due to political uncertainty in Pakistan.

Net foreign investment during the July to May of last fiscal year 2006-07 was USD 6.28 billion. Out of net foreign investment, FDI declined by 14.1% or USD 639 million during July to May period of 2007-08. After current decline, overall FDI stood at USD 3.881 billion as against USD 4.520 billion in same period of last fiscal year.

Analysts said that besides FDI, portfolio investment also declined by 96.5% to USD 62.2 million against USD 1.760 billion of corresponding period of last fiscal year.

Cement prices rise by 50% in March

According to a report by the Dubai Chamber of Commerce & Industry, the average cement price in Dubai has increased by more than 50% in March 2008 to meet rising demand for construction projects.

Cement production in the UAE in 2007 was estimated at 13.2 million tonnes, but consumption was about 18.2 million tonnes and is expected to reach 23 million tonnes by 2010.

Concorde to construct sewage treatment facilities in UAE

Abu Dhabi Sewerage Services Company has awarded a contract to Concorde Industries to design, fabricate, construct, and commission a membrane bioreactor sewage treatment plant for the largest planned labor accommodation facility in the UAE. The facility will treat the waste water from the Construction Workers' Residential City.

In a move designed to accommodate the heavy demand for water in the booming construction sector in Abu Dhabi, ADSSC is promoting the use of recycled waste water for further construction based water requirements and air cooling facilities.

The sewage treatment plant designed for the CWRC will have the capacity to recycle used water and sewage of up to 30,000 cubic meters a day and will treat the waste water produced by up to 32,000 workers, technicians and supervisors. Once this water is purified almost to the level of potable water, it will be re used to serve the needs of machinery and cooling facilities within the CWRC site.

The contract was signed by Mr Mahmoud Awad MD of Concorde Corodex Group and Mr Alan Thomson MD of ADSSC.

Mr Awad said that "One of the challenges we face is to complete this mammoth plant in the record time of 11 months. However, we are very confident about our engineering capabilities that we will be able to finish it on time."

Mr Ahmad Al Shuha technical director of CCG said that "The main advantage of an MBR plant is that it is a compact and efficient facility that produces a high quality end product. Effluents from an MBR plant can be safely used for irrigation, non potable applications or can be released into marine environment without any harmful effect."\

MBR STP is the most technologically advanced waste water treatment system currently available, and Corodex Industries has emerged as the leading provider of this technology for a number of infrastructural developments throughout the MENA region. In the UAE, similar technology has been contracted to serve prominent developments like the Palm Deira and International City, among others.

Qatargas reaches new safety milestone

The Peninsula reported that Qatargas has recorded a new safety milestone with a combined total of 20 million man hours worked without a lost time injury in its common sulfur and liquefied natural gas storage tank projects at Ras Laffan Industrial City.

For the common LNG storage project this represents some 14 plus months worked without a lost time injury. During this time there have been on average over 2,400 workers on site at any one time.

Similarly, the common sulfur project will achieve 10 million man hours worked without a lost time injury in the last week of June 2008. For the common sulfur project this represents over 15 months worked since the last lost time injury with an average of 1,900 workers on site.

Mr Jayme Meier manager of common LNG storage project said that "This remarkable achievement is the result of the dedication of many people who work every day to make sure everyone on our sites goes home safely. From the project staff to the site supervisors and safety officers it is teamwork that helps us to achieve such things. Our main focus now is making sure that these projects continue to focus on safety as we near completion of these projects."

Domestic contractors to develop South Pars gas field in Iran

Mehr News Agency reported that the contracts for the development of phases 19, 20 and 21 of the South Pars gas field will be signed in the next 3 months.

Mr Ali Vakili MD of Pars Oil & Gas Company said that "A national tender has been held for identifying eligible domestic companies. After appraising their financial and technical capabilities the related contracts will be concluded."

He added that "Development plan of the phase 19 has been prepared as one package and the development plan of the phases 20 and 21 as another package."

Refining yearly at least 1.5 million tonnes of ethane gas for being used in the petrochemical industry, refining 1.5 million tonnes of LNG for export, producing daily 110,000 barrels of stabilized and desulfurized gas condensates for export and restoring 700 tonnes of sulfur for export will be the outcomes of the phases 19 to 21 development plans.

The mentioned development plans will be implemented in the frame of engineering, procurement, supply, construction and commissioning method.

Erdemir steel probe could finish before 2008 end – Report

Reuters reported that a Turkish competition investigation into Erdemir units could be concluded before the end of 2008.

Mr Nurettin Kaldirimci president of Competition Board said that an investigation into the companies was launched in April 2008, after complaints of vertical agreements and since then the scope of the investigation has been broadened. If the companies are found to have breached competition laws they could face heavy fines. He added that "The board has taken into consideration the developments in the sector of the past year and other complaints, and has increased the scope of the investigation."

Mr Kaldirimci also said that the watchdog had taken note of ArcelorMittal's announcement that it had increased its stake in Erdemir to almost 25%, but would not intervene at this stage. The watchdog has also been asked by the energy market regulator EPDK to look into whether fuel retailers were working in concert to set prices.

He said that "I can say the picture does not look very good. It is not pleasing to see in one province distributors with different brands, at the same place, advertising the same prices, even down to the decimals. That generally can be interpreted as a breach of competition laws."

The board is already carrying out a study into the sector including a look at prices and could launch an investigation into whether companies are working in concert to set prices.

The investigation concerns leading Turkish steel maker Erdemir, ArcelorMittal Ambalaj, ArcelorMittal Celik, and Borcelik, which is part owned by ArcelorMittal.

Al Jazeera Steel plans Dubai listing

Omani pipe maker Al Jazeera Steel Products has announced its plans to list its shares in Dubai. It approved the cross listing in Dubai and will seek permission from the shareholders and regulators.

Al Jazeera is controlled by Kuwait’s Global Investment House after it 51% of the pipe manufacturer for USD 26 million in 2007. Al Jazeera Steel shares have doubled in 2008 as demand for pipes from the regional construction industry has grown.

Al Ghurair to start production from August

Al Ghurair Iron & Steel recently announced that it has finished installation of machinery and has started commissioning of individual equipment and that the production of first coil shall start from August 2008.

The United Arab Emirates' first CR and galvanizing plant is being built in two stages. The first stage will comprise a 250,000 tonnes per year CR mill, a 350,000 tonnes per year pickling and oiling line and a 200,000 tonnes per year galvanizing line.

It plans to almost double the new facilities' capacities in a second phase of investment. The planning for the second phase has been done and it will start immediately after completion of first phase. The additional CR output may be used to feed an alu zinc or color coating line.

In second phase, the CR mill capacity will be raised to 420,000 tonnes per year with the addition of an extra reversible stand and the pickling line capacity will increase to 500,000 tonnes per year.

End users will mainly be the construction industry, roofing, sheeting and cladding manufacturers, as well as the air-conditioning industry. The hot rolled pickled and oiled coil will be supplied to service centers locally as well as exported to Europe, which in turn supply to the automotive and construction industry.

Pakistan proposes China to join IPI if India opts out

The Dawn reported that Pakistan has sent a proposal to China asking it to join the USD 7.5 billion Iran Pakistan India gas pipeline project if New Delhi pulls out of the venture.

The Chinese government submitted a preliminary report to the Pakistani government seeking more information on the project. The report was submitted after President Mr Pervez Musharraf, on his recent visit to China, asked his Chinese counterpart Mr Hu Jintao to join the project.

Pakistan has also asked the Chinese government to conduct a feasibility study for the pipeline project.

It may be noted that there has been no progress on the project since talks were held between India and Pakistan in Islamabad in April 2008. The Indian government is yet to respond on the issue of the transit fee to be paid to Pakistan for Iranian gas transported across its territory.

Pakistani foreign minister Mr Shah Mahmood Qureshi, who also holds the petroleum portfolio, is expected to hold talks on the project when he visits India on June 27th 2008.

Registration of 10 steel mill unions cancelled in Pakistan

Geo News reported that Sindh Government’s labor department has cancelled registration of the labor unions, which could not secure required majority in recently held referendum at steel mills.

Mr Shamshad Qureshi chairman of People Workers Union CBA at Pakistan Steel said that registrar of Trade Union and National Industrial Registration Commission have cancelled the registration of 10 unions, which could not prove majority in the referendum.

According to NRIC laws, he said, it was mandatory for every union to secure at least 15% vote.

United Worker Front, Pakistan Steel Labor Union, PASLO and Pakistan Steel Mill Employees Unity are among the cancelled unions.

Kardemir to invest EUR 41 million in a new sintering plant

Kardemir said that it is planning to invest EUR 41.5 million in a new sintering plant. The new facility will have a capacity of 2.8 million tonnes per year.

Karachi Port registers 25% YoY growth in cargo handling

Karachi Port Trust has recorded a growth of 25% YoY in cargo handling in the year 2007-08 fiscal. It handling over 101,000 tonnes of cargo daily and has crossed the figures of 37 million tonnes.

KPT has deepened its channels to 12 meters for handling larger vessels. By the end of the current fiscal year, KPT projects are to handle 61% of the total container volume of 1.97 million TEU handled by the 2 ports namely KPT and Port Qasim.

The total seaborne trade handled by the 2 ports during the last 11 months comes to 58.10 million tonnes, of which the share of dry cargo exports at KPT remained 65.39%. Liquid cargo has shown recovery and is growing by 14% at Karachi port. Liquid cargo exports, which mainly comprises Molasses, Naphtha, Ethanol and other chemicals, has crossed the 2 million benchmark by registering 2.02 million tonnes this year.

Dry cargo coal handling in Karachi Port has reached 3.5 million tonnes. In exports, the cement handling through bulk or bags has crossed the 2 million tonnes mark. It is for the first time in history that Pakistan is exporting cement as a bulk commodity.

KPT has also handled 0.9 million tonnes of clinker exports during the last 11 months, which is another record achieved by the port. The containers handling at KPT have remained on the rise throughout the year. So far, it has registered 11% growth by recording 1.149 million TEU handling till June 12th 2008. Previously in the year 2005-06, KPT recorded handling of 1.144 million TEU containers.

Guangdong Iron & Steel Group to be formed before schedule

It is reported that Guangdong Iron & Steel Group, which is being consolidated at present, may be brought into existence ahead of schedule. As per reports, the group may be founded before August 2008 rather than previously expected by 2008 end.

Industry insider said "The timetable for the relocation of Guangzhou Steel has been nailed down and the move has started."

As per report, the group will register in Guangzhou on the basis of the large Zhanjiang steel project. Zhangjiang project is the largest ongoing steel project in the province. The first stage of the project is expected to produce 10 million tonnes of steel annually in virtue of total investment of CNY 69.6 billion. This stage only has surpassed all the existing steel mills.

In the meanwhile Guangdong Province will accelerate obsolete steel capacity elimination of over 10 million tonnes for the relocation of Guangzhou Steel. Provincial government has signed written commitments with local governments in Guangzhou, Shaoguan, Heyuan and so on as well as Shaoguan Steel on outdated steel capacity elimination in a bid to promote the construction of the 10 million tonnes steel project in Zhanjiang.

Chinese HDG export offer further increase

It is reported that export offer for hot dipped galvanized coil have been raised again recently due to limited supply and increasing domestic price. The strength is expected to spread into next month.

On Shanghai market, 1.0mm HDG by Anshan steel remains at CNY 7600 per tonne, 0.5mm HDB by private producer at CNY 7880 per tonne down by CNY 20 per tonne.

As already forecast last month, Shanghai price for 1.0mm HDG by Anshan Steel has reached CNY 7600 per tonne. If it could exceed CNY 7600 per tonne, the next target would be CNY 7800 per tonne to CNY 7900 per tonne. Otherwise, there would be downward corrections.

Export offers for 1.0mm HDG Z120, by tier two steel makers are between USD 1140 per tonne to USD 1150 per tonne FOB up by USD 40 per tonne from end May. While that for 0.5mm HDG Z120 is at about 1200 per tonne FOB. While quotation by such tier one steel mills as Wuhan steel goes at USD 1200 per tonne to USD 1210 per tonne FOB for 1.0 HDG Z120 to 140, which compares with USD 1250 per tonne to USD 1260 per tonne FOB for 0.5mm HDG.

Export allocation is said to be a little tight and most steel makes only set aside 15,000 tonnes to 20,000 tonne for exports per month. Traders say that steel mills are not so interested in exports since they could get good profit in domestic market.

(Sourced from MySteel.net)

WISCO enters high end auto market in Japan

It is reported that recently, Guangzhou Wuhan Iron and Steel Sales Company and one Japanese saloon car production Company have enter into contract for supply of auto grade sheets.

It marks that WISCO successfully entered into Japanese high end saloon car production plant and is a historic leap for WISCO.

Rizhao plans to book 16 large bulk carriers

It is reported that Rizhao Iron and Steel Group, which is established by Hebei Jinghua Innovation Group and Hong Kong Yujing Development Company, plans to book 16 large scale bulk carriers in China.

As per reports, it is the first time for the company to book new ships and intends to strengthen the control of maritime transport for the company. The new shipbuilding includes 12 Capesize and 4 Panamax bulk carriers.

In order to strengthen the company’s shipping transport business, Rizhao Iron and Steel Group has specially set up Rizhao Iron and Steel Ocean shipping Company in Singapore.

Valin to start new 600,000 tonnes of special bar mill in September

It is reported that Valin Group is building a new special steel bar rolling mill with the production capacity of 120 tonnes per hour can produce 16mm to 55 mm round bar, angles and other sections quality products by using low temperature rolling technology. The new equipment is expected to put into production in September this year.

As per report, the new rolling mill can produce various kinds of steel from high quality carbon steel and alloy steel, including cold frusta steel, spring steel and steel that easy cutting.

This rolling mill added a key performance in the large number of SBQ and special steel rolling mills.

Shipping firms see continued Chinese commodities boom

According to executives of shipping companies Genco and Teekay, the soaring demand for oil and steel in the developing world, particularly in China is a huge plus for the world's ocean shipping industry. And neither executive expects a slump in development anytime soon.

Mr John Wobensmith CFO of Genco Shipping & Trading Limited said Genco a dry bulk shipper is heavily exposed to China. He said that "Their steel industry has been growing 10% YoY to 12% YoY. Iron ore going in is about 30% of our business."

Mr Wobensmith said although some of China's recent development is tied to the upcoming Olympic Games in Beijing, the growth shouldn't stop when the games are over. He expects another upward boom to occur after the Olympics due to the growth of Chinese cities, and the infrastructure they need. He said that China's growth is a significant factor in the growth of the entire shipping industry.

Mr Wobensmith said "The last real boom in dry-bulk shipping was really post-World War II, with the rebuilding of Europe and Japan. China is obviously a much larger piece of real estate than Europe and Japan."

Mr Peter Evensen Executive Vice President and Chief Strategy Officer of Teekay said "I'm not sure why the oil prices are so high. If you look at it from our standpoint, there's plenty of oil out there, and our ships are moving it all. He said that the oil market is worldwide, but the real growth market is 'China. The marginal barrel of oil is being produced in the Atlantic Angola, Russia, Brazil whereas you're finding the marginal barrel of oil is being consumed in China and India. He even sees the situation as a net positive for his business.”

He added that "I think we make more when oil prices are higher. When the price of oil is high, then you don't find traders are beating us up so much over the rates."

Shanxi to award for ahead of plan capacity elimination

According to the economy commission of Shanxi Province, the companies, which wash out the outdated capacities one or two years ahead of plan, will get 10% or 20% premium, beside the compensation from the government. Some time earlier, the provincial government of Shanxi announced the plan for compensation for the outdated capacities to be washed out in electricity, iron melting, steel melting, coke, cement, calcium carbide, iron alloy and other industries.

To boost the washing out of the outdated capacities in high energy consuming and high pollution industries, Shanxi decided to give 10% premium to the companies who demolish the outdated capacities one year ahead and 20% premium to companies two years ahead of the plan.

The standard for the demolishment of iron and steel capacities includes; the body of the blast furnace and/or the converter demolished, the sintering and other auxiliary facilities all demolished, the site cleaned and leveled.

China Fire & Security Group Inc inks 2 contracts with Wuhan

China Fire & Security Group Inc, a leading industrial fire protection product and solution provider in China, announced that the Company has signed two contracts with Wuhan Iron and Steel Group valued at approximately USD 8.3 million for two independent fire protection projects.

According to the release, China Fire will serve as a total solution provider on the first project valued at approximately USD 4.1 million, consisting of the automatic fire protection systems to be installed in the cable tunnel and underground oil tank for Wuhan Iron and Steel Group's CSP plant at Wuhan in Hubei Province. The contract calls for China Fire to provide automated fire protection systems that include the Company's analog linear fire detectors, multi frequency infrared flame detectors, fire alarm monitoring and control systems and water mist fire-extinguishing systems. These systems will ensure that the entire production facility is safe from fire hazards and fully compliant to the new fire codes for iron and steel industry. The project is expected to be completed by the end of year 2008.

The release added that, China Fire will also serve as a contractor for the second project valued at approximately USD 4.2 million. The Company will provide the fire protection systems for the iron and steel plant of Echeng Iron and Steel Company a subsidiary of Wuhan Iron and Steel located in Ezhou, Hubei Province. China Fire will provide the automatic fire protection systems, including the Company's linear heat detectors, fire alarm monitoring and control systems and various fire extinguishing systems. The project is expected to be completed by the end of year 2008.

Mr Brian Lin CEO of China Fire said "We are pleased with the recent contract wins of USD 8.3 million with Wuhan Iron and Steel Group, demonstrating our superior product capacity and leading position in the industrial fire protection industry. He said that Wuhan Iron and Steel Group, which has been our long term customer plans to expand its capacity through its new build out of 10 million tonnes in Huangchenggang, Guangxi Province. China Fire is working closely with Wuhan Iron and Steel and is well positioned to win in this new development."

Sinotrans and CSC to merge

It is reported that China’s logistics service provider Sinotrans Group and China Yangtze Transportation Group Corp have officially confirmed that, they are in talks about a possible merger and related reorganization.

It is said that the merger, if it proceeds, would create the second largest shipping logistics firm by assets in China after Cosco Group.

Meanwhile, both groups have started streamlining their business structures to make consolidation easier. As per report CSC Group has grouped its Ro-RO businesses under the Shenzhen based CSC Ro-Ro Logistics Co in April and the company is mulling a Shenzhen listing by the end of this year. Sinotrans is trying to group its container shipping businesses under its flagship Sinotrans Container Lines.

Jiuquan to donate steel to Longnan disaster area

It is reported that recently, Mr Ma Guohua vice general manager of Jiuquan Iron and Steel Group expressed that JISCO decided to denote steel valued of CNY 100 million to Longnan disaster area, to support the re construction work.

According to Mr Ma Guohua, the steel will be delivered to Longnan disaster area for three years terms, 5000 tonnes per term and for the rebar.

JISCO is the largest state-owned enterprise in Gansu province after the 5.12 earthquake, JISCO denoted more than CNY 15 million to the disaster area.

Chinese power output in 5 months 2008 up by 13.7% YoY

Xinhua reported that electricity output in China's major power plants jumped 13.7% YoY in the first five months to meet greater demand.

The China Electricity Council said power generators with installed capacities of at least 6,000 kilowatts produced 1.39 trillion kilowatt hours. Of the total, coal fired power plants produced 1.19 trillion kilowatt hours up by 12.3% annually, hydropower stations produced 159.8 billion kilowatt hours up by 19.5%, nuclear power stations produced 27.9billion kilowatt hours up by 34.2%.

The industry association said power consumption rose 12.4% to 1.4 trillion kilowatt hours from January to May. It said during the period, China invested CNY 100.5 billion in expanding power generation capacity adding 23.4 million kilowatt hours of installed capacity.

According to the report, power companies continued to improve energy efficiency as they produced 1 kilowatt hours of electricity out of 347 grams of coal on average, 7 grams less than a year ago.

Many power companies started reporting huge losses this year as the government refrained from raising electricity prices to offset coal cost increases, fearing such hikes might add further upward pressures to the already high inflation.

China and Japan to discuss on Chunxiao gas field project

It is reported that Chinese companies welcomed the participation of Japanese legal person in the development of the Chunxiao gas field in accordance with Chinese laws.

As per report companies or legal persons of both countries will negotiate in line with Chinese law governing cooperation with foreign enterprises in the exploration and exploitation of offshore petroleum resources

Mr Liu Nanlai a research fellow with the law institute of the Chinese Academy of Social Sciences said such cooperation is a way for Chinese companies to attract foreign capital in compliance with the Regulations of China on the Exploration of Offshore Petroleum Resources in Cooperation with Foreign Enterprises. He said that the exploration of Chunxiao gas field is China's assertion of sovereign rights in its inalienable sea water.

Mr Liu said the Japanese legal person, who abides by Chinese laws, could gain the qualification of participating in the development of the Chunxiao gas field through signing commercial contracts. This is virtually the same as foreign companies bidding for the gas exploration of the Chinese oil companies. He said that "So far, Chinese oil companies have carried out such cooperation with foreign oil companies many times and achieved good results."

Mr Liu said, such cooperation is the first step of joint development of the East China Sea, which will be conducted in the transitional period before the delimitation of the area. He said that the joint development of the East China Sea cannot be carried out according to Chinese or Japanese laws alone, but needs the two sides to make special arrangements through negotiations and to sign agreements.

Coal ash based first alumina refinery in China to start in 2009

According to the media reports, the first domestic alumina refinery with its products extracted from coal ash is planned to be put into production next year.

The annual production of this refinery will be 400,000 tonnes with the estimated annual coal ash consumption of 1.6 million tonnes which located in Inner Mongolia Autonomous Region of China.

Shanghai port trade volume up by 7.4 % YoY

Xinhua reported that imports and exports continued to surge at Shanghai port with the volume totaling USD 245.5 billion in the first 5 months of 2008.

According to Shanghai Customs statistics, the trade volume was 26.6%YoY up by 7.4% YoY than that of same period of last year. With this volume, Shanghai port did about one quarter of the country's foreign trade.

The report added that in a breakdown, exports totaled USD 155.73 billion up by 28.2% and imports made up USD 89.77 billion up by 23.9% of which imports under general trade accounted for USD 35.2 billion up by 28.2% YoY.

The European Union remained the port's top trading partner, followed by the United States, Japan, Association of Southeast Asian Nations and Africa.

According to the report the mine at Kuranakh will supply 2.4 million tonnes a year of ore to a mill that will produce 900,000 tonnes of titano magnetite concentrate containing an average 62% iron and 290,000 tonnes of ilmenite.

China Metallurgical eyeing investment in Philippines

Bloomberg cited Mr Lito Atienza Environment Secretary of Philippines as saying that China Metallurgical Group Corp is seeking to explore iron and build a steel processing plant in the Philippines.

Mr Atienza said China's state owned company may initially invest USD 1.5 billion for a processing plant in Zamboanga del Sur a province in southern Philippines. He said that investments may reach as much as USD 10 billion should the company decided to put up an integrated steel mill.

China steel export to Vietnam dips sharply

It is reported that exports from Shandong province of China to Vietnam are down sharply due to economy crisis in Vietnam.

Steel accounts a large part of total exports from Shandong province. Statistics show that the total export volume in 2007 is USD 0.67 billion and there has been a substantial increase of 50% for consecutive two years.

As per report, the amount of steel exports have jumped to USD 19 million to USD 210 million within two years and that for January to May period of 2008 has reached USD 160 million. However, steel exports probably would see remarkable decrease in the near future as Vietnam has stopped lots of large projects to so as to deal with its inflation explosion. Thus, steel demand is expected to drop sharply and this would cast adverse effect on Chinese steel exports.

Dongshan Metallurgy's start first stage construction project

It is reported that 1 million tonnes project for I-Beam, Angle steel and Channel steel formally started its first stage construction with a commencement ceremony held by its investor and operator Hebei Dongshan Metallurgy Industry Company Limited on June 13th 2008.

As per report the project investment totals CNY 200 million including CNY 100 million for the first stage construction in the following six months. The second stage construction is expected to start in 2009.

The project will be the first mill supplying I-Beam, Angle and Channel for Whan's increasing demand. After the project, Hebei Dongshan Metallurgy Industry Company Ltd is expected to realize capacity target of 1 million tonnes of iron, steel and steel products each every year.

Shougang plan to double Peruvian mine output

Interfax China quoted China's Ministry of Commerce in an announcement said that Shougang Hierro Peru SAA, a Peru based Shougang subsidiary will begin development of new mining zones at Marcona in Peru to double its annual iron ore production which will require investment of USD 1 billion.

According to the released, Shougang Hierro plans to construct an ore processing plant and a 3 million tonne pellet plant at the mine which would in turn double its annual capacity of iron ore.

Mr Wu Bin president of Shougang Hierro said the company intends to first increase iron ore production by 8 million tonnes and then reach final annual production capacity of 20 million tonnes within four years.

Shougang officials were not available for comment when reached by Interfax today.

China raises prices of oil and electricity

It is reporte