Essar orders for heat treatment furnaces for plate mill

Essar Group has awarded LOI Thermprocess, an LOI Italimpianti Tenova company, a contract for three new furnaces to be used for various types of heat treatment for steel plates at its Hazira plant in the State of Gujarat. They are due to be commissioned within only 16 months by April 2009.

The contract includes a normalizing furnace as well as a quenching and tempering line comprising an austenitizing furnace with continuous quench facility and downstream tempering furnace. When it has been commissioned, the quenching and tempering line will be the most advanced heat treatment facility for steel plates in India.

The furnaces will be designed for a capacity of up to 55 tonnes per our depending on the process used. The normalizing line will consist of a roller hearth furnace with a length of 70 meters and will be designed to treat steel plates with thicknesses from 5mm to 50mm (Maximum 75 mm), widths up to 4.9 meters and lengths up to 25 meters at normalizing temperatures between 880 °C and 950°C.

The line will feature a roller hearth furnace with a length of 43 meter and a continuous quench facility. Steel places with thicknesses from 5mm to 50mm (Maximum 75 mm), widths up to 4.9 meters and lengths up to 25 meters will initially be heated to the austenitizing temperature of 880°C to 950 °C, then quenched and martensitically hardened in the quench facility. The material will be treated to obtain the toughness required in the downstream tempering furnace, which will be 64 meter long.

The plant will be fully automated by LOI, including the control of heating systems and a material tracking program. An optimization computer will adapt furnace operation to load conditions in order to minimize energy consumption, scale formation and losses and to ensure the highest possible surface quality.

Indian inflation shoots up to 13 year high to 11.3%

Riding on the steam of recent sharp hike in prices of petrol, diesel and cooking gas, inflation has now skyrocketed to a 13 year high of 11.05%.

Driven largely by the government’s June 4th fuel price hike, inflation leapfrogged to 11.05% for the week ended 7 June from 8.75 % the preceding week, overshooting even the around 10% general expectation of experts.

The inflation spike made waves in the market as well as in political circles. The SENSEX tanked by 431 points to plunge below the 15,000 mark, reflecting the nervous sentiments of investors about the efficacy of the anti inflation measures being taken by the finance ministry and the Reserve Bank of India.

Mr P Chidambaram India’s finance minister blamed soaring global fuel prices for the price rise situation and said that petrol, diesel and LPG contributed to 94 % of latest inflation spurt. He said that “When the administered prices of petrol, diesel and LPG were increased, we had cautioned the Cabinet that inflation would touch double digit and that is what has happened. These are difficult times. The government is aware of difficulties. Naturally, we will have to look at stronger measures on demand and monetary sides. We will try to address them to best of our abilities.”

India revises power capacity addition target 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.

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.

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.

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 to other 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.

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.

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

A Reuter’s 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.

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.

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.

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.

Global crude steel production in May up by 5.8% YoY

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute was 119.5 million tonnes in May 2008. This is 5.8% higher than the same month last year.

China produced 46 million tonnes of crude steel in May 2008. This is an increase of 10.5% compared to the same month in 2007. India, Japan and Korea also showed growth. Overall, Asia produced 67.6 million tons of crude steel in May 2008 as compared to 62.4 million tonnes in May 2007, an 8.3% increase in crude steel production.

In Europe, Germany produced 4.1 million tonnes of crude steel in May, an increase of 2.6% compared to May 2007. Turkish crude steel production was 2.5 million tonnes, a 12% increase compared to the same month last year. Over the first five months of 2008, Turkey produced 11.7 million tons of crude steel, which is 9% more than the same period in 2007.

Brazil’s crude steel production also grew in this month. In May 2008, Brazil produced 3 million tonnes as compared to 2.9 million tonnes in the same month last year, an increase of 2.8%.

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.

Domestic steel price in Brazil to increase - Mr Freire

BNamericas reported that as Brazilian steelmakers prepare to implement a third round of price increases this year. Mr Christiano Freire president of the national steel distributors association told BNamericas that what is driving the hikes are international markets of raw materials and steel.

Mr Freire said that the price of coking coal for example rose to USD 300 per tonne from USD 98 per tonne in less than a year. Hot rolled products soared to USD 1,200 per tonne from USD 650 per tonne and heavy plates skyrocketed to USD 1,300 from USD 650 in less than a year. In Brazil, overall steel prices have climbed 70% since mid-2007.

Mr Freire said that "Production costs for steel mills have increased 37% compared to one year ago.” He added that in the recent years emerging countries have been supplying their domestic markets instead of exporting as before.

Mr Freire said that "Since domestic markets of emerging countries became extremely heated steel became a lot scarcer. This ended up impacting production costs of automobiles, construction, heavy equipment, machinery, air conditioners and appliances."

Mr Freire said that there is no single culprit, as world consumption grew very rapidly. And as much as steelmakers make an effort to meet demand, new production from steel mills can take 4 to 5 years to reach the market. He said that "While consumption can change in just a year's time, it takes a while for companies to build new plants and install new furnaces and equipment.”

According to Mr Freire, some of the products expected to rise shortly include rolled coils, both hot and cold, which will see a 15% increase. Heavy plates manufactured by Usiminas are going up 10% as of mid July 2008.

Japanese crude steel output hits record in May

According to Japan Iron and Steel Federation, crude steel production in Japan in May 2008 went up by 3.7% YoY to 10,547,400 tonnes setting a record for the month.

The federation said that output in May marked its third highest monthly level on record and the 24th straight month of increase.

The federation added that ordinary steel output rose 3.7% to 8,224,600 tonnes and specialty steel production increased by 4.9% to 2,322,800 tonnes. By product type, output of steel sheets grew by 2.9% to about 5.16 million tonnes while that of steel bars, used mainly in construction, dropped 3.3% to about 2.16 million tonnes.

Demand for high end steel sheet products was strong among automakers and shipbuilders in Japan, while exports to other Asian countries such as Thailand were robust. However, domestic demand for steel products used as building materials remained weak due to slumping housing construction.

Indonesia rules out PT Krakatau stake sale

Financial Times reported that Indonesia has ruled out the sale of a stake in state owned Krakatau Steel, dashing the hopes of foreign investors, including Australia’s Bluescope Steel.

Mr Sofyan Djalil Indonesia’s state enterprises minister told the Financial Times that a strategic sale is not an option any more. He said that the objective of expanding capacity to 5 million tonnes could be achieved with an initial public offering and Indonesian parliament is expected to approve a partial float by the end of next month.

As per report, 21% of the company could be sold to the public over time, starting with an initial sale of only 5%, although no final decision has been made.

According to Mr Muhammad Lutfi chairman of Indonesia’s Investment Review Board, BlueScope, ArcelorMittal and Indian steel groups TATA and Essar have all expressed interest in building a new USD 3 billion steel plant from scratch.

Mr Fauzi Ichsan chief economist at Standard Chartered in Jakarta said that “The take over of Krakatau Steel by a foreign strategic investor is politically sensitive, so that’s why there is talk of this second option to build a steel factory in partnership with a foreign investor.”

Nucor applies for permit for USD 2 billion manufacturing facility in Louisiana

It is reported that Nucor Corp has applied for a permit to build a state of the art iron making facility in Louisiana. During the past two years, Nucor has evaluated multiple sites both in the United States and internationally.

In its analysis, Nucor considered many factors, including the features of each site, transportation, permitting, the commitment of the state’s leadership to the project and the proposed incentive packages.

According to Nucor, the competitiveness of Louisiana’s proposed incentive package, including significant infrastructure improvements and the state’s ability to move quickly were very important in the analysis. After taking into account all of these factors, the only United States site still under consideration is a large site on the Mississippi River at St James Parish in Louisiana. International sites are still under active consideration.

Nucor said that the project is not a certainty. Regardless of the ultimate site chosen for the project, permits have to be issued and Nucor’s board must approve the selection of the site and the capital investment. If the project is ultimately built in the United States, it would be the first Greenfield pig iron facility built here in more than 30 years.

Nucor said that it has selected advanced heat recovery coke technology to be used in this facility. Unlike conventional coke facilities, this coke plant would capture waste heat and use it to produce power, making our operation self-sufficient in power. The coke making facility will meet and likely outperform current best available control technology requirements.

It said that Nucor's blast furnaces will have the latest designs for emissions controls and energy efficiency. This facility would capture waste energy from the blast furnaces to produce power over and above our own requirements.

By the second phase of the project, the facility would be producing 500 MW of power, of which 250 MW would be supplied to the grid, completely offsetting the emissions that would have been released had a facility been constructed to generate this new source of power.

The facility will have slag granulation technology that produces a valuable by product used by the cement industry completely offsetting the emissions they would have created to manufacture the same product.

This project would create numerous jobs and stimulate the economy. The project's first phase would require a USD 2 billion investment and would directly create 2,000 jobs during peak construction. Five hundred permanent Nucor jobs would be created, earning an average annual salary of USD 75,000, plus benefits roughly twice the area's median household income.

Gov Bobby Jindal said that “We are proud that Nucor, a company with a great reputation for creating jobs in the US is considering Louisiana for this important project. This would provide a tremendous boost to Louisiana’s economic development and further job creation. We will continue to work with local communities here to attract a facility that can become a national model for responsible manufacturing and economic growth.”

SBQ plate prices in SEA continue their ascent

South East Asia ship plate market prices have been rising continuously. The main reasons behind the rises are freight costs and slab prices remaining at high levels.

It caused ship plate market price to rise to USD 1,300 to USD 1,385 per tonne in China, Japan and Indonesia.

Besides, market experts forecast that South East Asia shipping market price will be very unstable, following high prices causing buyers to decrease their purchasing demand.

(Sourced from YIEH.com)

Brazilin crude steel output in May up by 2.8% YoY - IBS

According to Brazilian Steel Institute, strong demand from Brazil's civil construction and automotive industries continued to fuel an increase in domestic crude steel production in May 2008.

IBS said that Brazilian steelmakers produced 2.972 million tonnes of crude steel in May up by 2.8% YoY from 2.891 million tonnes in May 2007. Production of rolled steel products advanced 1.2% YoY to 2.216 million tonnes in May 2, compared with 2.189 million tonnes in May 2007. Output of long steel products continued its recent surge, but flat steel production slipped for the third consecutive month in May.

Strong demand from the civil construction industry and a surge in infrastructure projects has fueled demand for long steel products in Brazil. In May, long steel output reached 933,800 tonnes up by 8.1% YoY from 863,500 tonnes in the same month last year.

However, output of flat steel products slid 3.3% in May 2008 despite continued strong performance by the Brazilian auto industry and increased demand from the oil, gas and naval sectors. Flat steel production declined to 1.282 million metric tons in May from 1.326 million tons in the same month a year ago.

Steel production so far in 2008 has continued to build on the record year registered in 2007, when domestic demand surged on a government growth plan and an improving local economic climate. In addition, declines in local interest rates in 2007 expanded access to credit for such steel intensive goods as housing and autos. However, growing inflation concerns could curtail credit use going forward. The Brazilian Central Bank has raised its benchmark Selic base interest rate at its past two meetings to 12.25%.

IBS said that May domestic sales figures continued to rise at a double digit pace, maintaining last year's strong growth. Domestic steel sales climbed 13.0% to a record 2.007 million tonnes, from 1.777 million tonnes in May 2008. May's sales figures topped the previous record of 1.930 million tonne set in April.

It added that sales of high value rolled steel products maintained solid growth in May, while semi finished products posted gains on increased local production capacity. Domestic rolled steel sales jumped 13.0% to 1.939 million tonnes from 1.716 million tonnes in the year ago period.

POSCO to replace caster and put RH plant at Gwangyang Works

Siemens VAI Metals Technologies received orders for the replacement of an existing caster with a new high speed 2 strand slab caster as well as for the supply of a new twin station RH degassing plant at POSCO’s Steel Making Plant No 1 site in Gwangyang, Korea.

The project scope includes engineering and the supply of key components, equipment, systems and technological packages. The project will be implemented in consortium with POSCO E&C and the combined contract value for Siemens is a two digit million euro figure. The start up of both plants is scheduled for mid 2009.

In the Steel Making Plant No 1 of POSCO's Gwangyang Works, a slab caster was originally installed in 1986 by another supplier will be dismantled and replaced in order to satisfy increased performance and product quality demands. Siemens Metals Technologies received the contract to install a new high performance 2 strand slab caster which will have an annual casting capacity of 3.2 million tonnes of carbon, alloyed and silicon steel grades. Important casting targets were to avoid center strand segregation through the application of dynamic soft reduction technology as well as to ensure the highest possible slab-surface quality, particularly important for silicon steel sheets.

In a separate contract received by Siemens Metals Technologies from POSCO E&C, a twin station 280 tonne RH degassing plant will also be supplied to reduce the hydrogen and nitrogen gas content of the steel as required for more demanding product uses.

The 2 strand caster will have a casting bow radius of 9 meters. Slabs will be cast with a thickness of 250 millimeters in widths ranging from 900mm to 1,600 mm. With a relatively long strand supported length of 41.6 meters, high casting speeds of 2.1 meters per minute will be possible. The caster will be equipped with specialized equipment and a wide range of technological packages. These include DynaFlex for the online flexible adjustment of the mold oscillation parameters, SmartMold with its cassette-type mold design that allows the copper plates to be quickly exchanged and the automatic mold-level-control system LevCon 2. Dynamic mold width adjustment will be possible with DynaWidth for fast slab width changes. Advanced caster segments of the type SmartSegment will enable the online and fully automatic adjustment of the slab thicknesses. DynaGap SoftReduction technology will allow the strand taper in the area of final solidification to be dynamically adjusted for improved internal strand quality. The Level 2 Dynacs secondary cooling system featuring dynamic strand-cooling management ensures ideal cooling conditions according to the respective steel grade. With the employed 3D Spray system the spray width is automatically adjusted according to the slab width, providing optimum slab cooling.

With the new caster approximately 70% more steel will be cast in comparison with the previous machine output. The overall yield will be greater and maintenance costs considerably lower. The improved slab quality will allow the rolled steel products to be used for a much broader range of industrial applications.

Domestic steel prices Vietnam to go up - Report

VietNamNet Bridge reported that though the Vietnam Steel Association has committed to not raising steel prices until the end of July 2008, several of its members are planning new price increases.

In the South Vietnam, several steel producers have raised steel prices by VND 200 to VND 300,000 per tonne. Vina Kyoei’s rolled steel is now selling at VND 16.35 million per tonne to VND 16.55 million per tonne, while steel bars at VND 16.57 million per tonne. Pomina is selling rolled steel at VND 16.42 million per tonne and steel bars at VND 16.70 million per tonne.

Other still mills have not raised sale prices yet, but have expressed their concern about the sharp increases of ingot steel. Now foreign suppliers are offering ingot steel at USD 1,180 per tonne. Moreover, the VND’s sharp decrease in value, which makes ingot steel imports more expensive, has also bolstered the difficulties for steel producers.

Mr Nguyen Tien Nghi deputy chairman of the Vietnam Steel Association said that steel mills are losing money with the current sale prices, which were calculated based on ingot steel prices at below USD 1,000 per tonne. He said that “As such, the money producers get from selling finished steel is not enough for them to import ingot. If steel mills do not import any more ingot steel they will not have enough material for steel production. The inventory stocks of ingot steel will be enough for production in Q3, which means that ingot steel will be lacking in Q4.”

While local steel producers have to import ingot steel at high prices, local ingot steel producers still have to export their products. The ingot steel producers said that their products are cheaper than the imports, but local steel mills are not purchasing them.

According to the Ministry of Industry and Trade, 100,000 tonnes of ingot steel have been exported to China, Malaysia and Thailand so far this year. Of this amount, 26,000 tonnes was re exported while on its way to Vietnamese ports.

Nippon Steel launches dust recycle furnace at Kimitsu

Nippon Steel announced that it has started full swing production of no 3 rotary hearth furnace with annual 310,000 tonnes of steel dust treatment capacity at Kimitsu works.

Nippon Steel tries to recover steel, carbon and zinc from the dust through the world largest furnace. The firm launches no.3 RHF at Hirohata to expand the companywide treatment capacity to 1.2 million tonnes or complete recycling for the dust from all steel works.

SSAB Iowa Steel to receive USD 2 million incentives

It is reported that the Iowa Economic Development Board will offer SSAB Iowa Steel more than USD 2 million in incentives to upgrade its Montpelier steel plant.

As per report Iowa Economic Development Board approved USD 2 million from the Physical Infrastructure Assistance Program and tax benefits from the High Quality Job Creation Program to assist the recruitment effort.

SSAB representatives from the former IPSCO Steel Inc plant have said that the company will decide in August whether to build a USD 250 million advanced steel heat treating plant in Montpelier or Mobile, Ala.

Iowa Economic Development Board said that the upgrade would create 120 new positions and enhance job security for employees at the existing steel mill.

Tenaris rises as Morgan says US demand booming

Bloomberg reported that Tenaris SA, the world's biggest maker of seamless steel tubes for pipelines, rose to a record in Buenos Aires trading after Morgan Stanley increased its share price forecast by 10%.

According to Bloomberg data, Tenaris jumped 9.9% to MXN 109.30, the highest since shares began trading in December 2002.

Morgan Stanley boosted its share price estimate for Tenaris' American depositary receipts to USD 88 from USD 80. Tenaris competitor US Steel Corp has increased tubular prices by USD 800 a tonne.

Analysts said that “The effect of booming US tubular demand and prices should set Tenaris up for a strong earnings profile going into 2009.”

Nigeria association calls for revival of steel sector

It is reported that Mr Comrade Titus Orimijupa president of the Iron and Steel Senior Staff Association of Nigeria has accused the Federal Government of laxity and complacency in the manner in which it is handling the crisis ridden Iron and Steel sector.

Mr Orimijupa Stressed the need for government's commitment to providing adequate working capital that will allow the sector function properly. He disclosed that disregard for the sector on the part of government on the sector, has led to the loss of lives of workers while awaiting their salaries, allowances and other related liabilities.

He said that "It is important and saddening to report to you that since February 2008 for both Ajaokuta steel company and National iron ore mining company, Itakpe have not been paid adding that such action will force the workers to take necessary steps to protect their fundamental human right.”

According to him government has not demonstrated enough commitment to revitalize the steel the sector; stressing government is still foot dragging since it took over Ajeokuta Steel Company Limited and Nation Iron ore mining company on second of April 2008.

He also disclosed that government should ensure the completion of Itakpe-Ajeokuta-Warri rail lines, dredging of River Niger and Escravos River and lots of others, so as to attract both financial and technical core investors that will reposition the steel industry.

Japanese hot rolled coil export in April drops slightly

It is reported that Japan exported hot rolled coil about 529,634 tonnes in April 2008 down by 0.12% MoM in March 2008. The price on average was at USD 639.8 per tonne FOB.

South Korea was the main import country that accounted for 218,163 tonnes with the average price of USD 636.9 per tonne.

Taiwan ranked the second with 32,097 tonnes and the average export price was USD 587 per tonne FOB and China ranked the third with 26,761 tonnes with an average was at USD 640.9 per tonne FOB.

(Sourced from YIEH.com)

Nucor appoints Mr Farris as VP and GM of iron making facility

Nucor Corporation announced that appointment of Mr John C Farris as VP & GM of Nucor's new iron making facility.

Mr Farris joined Nucor in 1992 and has been a vice president of Nucor since 2006. He has been GM of Nucor's bar mill at Marion in Ohio since 2005.

Mr Dan DiMicco chairman, president & CEO of Nucor said that "Based on John's strong management experience, he will provide effective leadership for Nucor's first blast furnace and coke oven operation. Mr John's first task will be to build the management team for this project. We are confident John will build a capable, experienced management team to lead this new project."

BlueScope Steel completes AUD 1.19 billion debt extension

BlueScope Steel Limited announced it has successfully completed the extension of Tranches 1 and 2 of its AUD 1,192 million syndicated bank facility.

With the extensions in place, Tranche 1 of AUD 91.67 million will now mature in December 2009 and Tranche 2 of AUD 550 million in December 2011. Borrowing margins for these tranches will be 0.80% and 0.95% respectively.

Mr Charlie Elias CFO of BlueScope Steel said that "We are pleased with the level of support received from our syndicate banks throughout this process. Notwithstanding the current challenging credit conditions in the global markets for both borrowers and lenders alike, syndicate banks have again affirmed their long standing commitment to BlueScope Steel Limited by agreeing to the extension."

Mr Elias added that BlueScope Steel's credibility and track record in its balance sheet management has stood the Company in good stead during this process.

Tranche 3 of AUD 550 million of the facility has remained unchanged and is due to mature in December 2010.

The loan note facility extension was jointly arranged by the Commonwealth Bank of Australia Ltd. and Westpac Banking Corp Ltd.

Daily price of benchmark steel products around the country, now at the Click of a mouse ......

A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item. In addition, as steel trade is not the prime knowledge domain for the user and as such they are busy with their own operations, their market knowledge is somewhat limited. In most of the cases, the team buying steel is also responsible for purchasing large number of items, thus they rely on a segment of their own supply chain for market feedback. In other words, although steel purchase is a big ticket item, they do not have a bench mark 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.

www.steelprices-middleeast.com is a new portal that provides domestic pricing information for benchmark steel products in each category at select location in Middle East on a regular basis 5 days a week. In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available on daily basis to give a sense of alternates. 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.

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing. The products covered are
1. Scrap 80:20 HMS 2. Billets 125x125 3sp/ps 3. Rebar 8-25 BS 4449 Grade 460 B 4. WRC 5.5 SAE 1008 5. IPE Medium S235 JR / SS 400 6. IPE AA Medium S235 JR / S275 JR 7. W Beams Medium S275 JR 8. HEA Medium S275 JR 9. HEB Medium S275 JR 10. Structural Light S235 JR / SS 400 11. HRC 2.3x1250 S235 JR / SS 400 12. HRS 4-20xuptox1500XL A 36 13. HRS 6-20x2x6 A 36 14. Plates 8-40x2x6 S275 JR 15. CRC 0.7x1000 Commercial 16. HDG 0.7x1000 A 653 / G 3302 120gms 17. PPGI 0.5x1000 25/14 Mu
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.”

He said that “The feedback from our readers during testing phase has been very positive and encouraging and we plan to enlarge the product location mix gradually to include more products and locations. The feedback received during the testing phase has helped us fine tune the features and functions of the website to a great extant to suit the requirements of steel users, in particular.” Mr Sharma added that similar services are being launched for other emerging market like India as well as mother of all markets China.

The prices are displayed on daily, weekly and monthly basis. Steelprices-middleeast.com also has 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 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. 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 www.steelprices-middleeast.com or send a mail to info@steelprices-middleeast.com

www.steelprices-middleeast.com is 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. It compiles and publishes more than 100 articles every day on the website and also sends out free email based news latter called Steel Trade Today to more that 35,000 subscribers spread across 138 countries. STT is available in 7 flavors including International, Raw Material & Mining, Indian, Chinese, Middle East, Russian and Stainless & Special Steel editions.

SMS group to build a bar mill in UAE

The Russian corporate group, Metalloinvest and Sheikh Sultan Bin Khalifa Bin Zayed Al Nahyan have founded a joint venture under the name of Hamriyah Steel in the United Arab Emirates. SMS Meer a company of the SMS group, Germany is to build a bar mill for this new company in Sharjah.

The production capacity of the mill will be 1 million tonnes of bars per year. The diameters will range from 10mm to 40 mm. Main customer for the products will be the construction industry in the Emirates that is still expanding rapidly.

SMS Meer is to supply the complete mill including electrical equipment, and will also be responsible for erection supervision, commissioning and training of the customer’s personnel. The automation system from SMS Meer will control and monitor the whole production process.

The mill is charged from a walking beam furnace with a capacity of 180 tonnes per hour for 125mm to 170mm square billets in lengths of up to 12 meters. It consists of horizontal and vertical housingless stands, some of which can be used both horizontally and vertically, together with quick change equipment. The smallest dimensions are produced using the four slit method.

Commercial production at Hamriyah Steel is scheduled to start in 2009.

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.

Fata orders homogenizing and sawing equipment for Qatalum project

Italy’s Fata SpA has placed an order with Austria’s Hertwich Engineering, a company of the SMS group, for the supply and commissioning of homogenizing and sawing equipment for the Qatalum project in Qatar.

The scope of supply comprises two continuous homogenizing lines, complete with ultra sonic inspection station, one batch homogenizing line and three sawing and packing lines, all combined into one fully automated plant.

Total net production would be 355,000 tonne per year and the commissioning is scheduled for 2009.

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.

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.

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.

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.

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.

Chinese steel mills to bid for Brazil CSN unit -WSJ

Reuters quoted Wall Street Journal reported that a consortium of Chinese steelmakers and the country's sovereign wealth fund will bid for a stake in the iron ore unit of Brazilian steelmaker Companhia Siderurgica Nacional SA.

According to the report major steel producers, including Baosteel Group, Shougang Group and Shagang Group, as well as China Investment Corp, a USD 200 billion investment arm of the Chinese government, are entering the initial round of bidding for Nacional Minerios SA, or Namisa, CSN's unlisted iron ore unit.

The newspaper quoted an unnamed source as saying that the composition of the consortium had yet to be finalized.

Officials at Baosteel Group, Shougang Group, and the China Investment Corp said they were unaware of the bid, while Mr Shen Wenming Vice President of Shagang Group said he was unclear on the bid and was unwilling to elaborate further.

China, the world's top steel producer lacks quality iron ore deposits, and is increasingly turning overseas to secure supplies of iron ore and other resources. But the country's steel mills failed to cooperate quickly enough last year to buy into Australian miner Rio Tinto even though they wanted to block its acquisition by fellow Australian BHP Billiton. Aluminum Corp of China, or Chinalco, beat them to the punch when it bought a minority stake in Rio late last year.

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 start construction of section mill

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.

China raises prices of oil and electricity

It is reported that China has raise fuel price with petrol that will cost CNY 0.8 and diesel CNY 0.92 and electricity charges for commercial units will go up by CNY 0.025 per KWH from July 1st 2008.

The National Development and Reform Commission said the price of aviation fuel has been raised by CNY 1500. The prices of natural gas and liquefied petroleum gas, however, remain unchanged.

The NDRC said urban and rural residents and the farming and fertilizer production sectors have been exempted from the increased electricity charges. Areas in Sichuan, Shaanxi and Gansu hit by the May 12th 2008 quake too have been exempted.

The NDRC said in a statement that, the move is expected to bring some relief to domestic refineries, which have been reeling under losses, and ensure a stable supply of oil in the market. The increase in the prices will benefit domestic oil companies.

As per report the price of crude oil in the international market has crossed USD 130 a barrel. Crude price is linked fully with the international market in China, while prices of refined petroleum products are still controlled by the government.

SinoSteel ink formal agreement with Liazhong county and Shenyang

It is reported that Sinosteel Corporation signed formal agreement with Liaozhong county government and the management committee of Shenyang economic technology development zone to build metal resources processing and distribution projects in the two sites and make Shenyang the metal base of the North.

As per report SinoSteel decided to invest CNY 6 billion and CNY 2 billion in Liaozhong and Tiexi respectively for the prophase projects. With about 8 billion to 10 billion fund, it wants to develop a modern steel service base in Shenyang including scrap processing, iron ore storage, acid pellet processing, dismantling of trash car, steel product processing and distribution etc.

Once completed, the base will process and distribute 1.5 million tonnes scrap, dismantle 500,000 pieces of trash cars, process 20 million tonnes iron ore fine and produce 5 million tonnes acid pellet annually, with predicted sales income of CNY 40 billion to CNY 50 billion, profits of CNY 1.5 billion to CNY 2.0 billion and tax of CNY 1 billon to CNY 1.5 billion.

Mr Huang Tianwen president of Sinosteel said he was quite interesting in investing in Shenyang, expecting the items to start work within the year and help boost the local economy as soon as possible.

Baotou joins other producer in cutting rare earth output

South China Morning Post, citing an official from Baotou Steel reported that Baotou Steel Rare-Earth Hi-Tech Co has joined other producers in cutting output of rare earth last month to halt a price decline.

Mr Zhang Rihui secretary of Baotou said Inner Mongolia based Baotou Steel, among China's top five rare earth producers and competitors in Jiangxi province, stopped supply to some companies for one month. He said that Baotou hasn't decided whether to extend the suspension.

The paper added that the price of praseodymium oxide, which is used to color glass and enamel has fallen as much as 39% to about CNY 135,000 per tonne in 2008.

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.

Pig iron market in Northeast China remain high

It is reported that pig iron market in Northeast China remained high recently while the quotation remained firm.

The mainstream quotation of conversion pig iron was CNY 4800 per tonne to CNY 4850 per tonne, quotation of some manufacturers reached to CNY 4900 per tonne. Price of foundry pig iron acceptance was basically between CNY 5150 per tonne to 5200 per tonne, quotations of some manufacturers reached to CNY 5250 per tonne. Spot resources were in shortage.

Downstream steel market was not good and the turnover was slight too recently, this restricted pig iron demand in a certain point and caused a strong atmosphere of wait-and-see in the market. But purchasing price of some steel plants reached to CNY 5000 per tonne, because it is difficult for them to purchase pig iron due to the tight supply. Therefore, the ex work quotation of manufacturers was still remained unchanged. The coke price in Shanxi went up sharply. This will give confidence for people to hold a positive attitude towards later market.

Mitsubishi receives orders from Shougang and POSCO Power

Mitsubishi Heavy Industries, Ltd has received consecutive orders for blast furnace gas fired gas turbine combined cycle power generation plants from China and Korea. The equipment for a 150 MW BFG-GTCC power plant for Qian'an Iron and Steel Works, part of the Shougang Group, a major Chinese steelmaker is slated for delivery in May 2009.

The equipment for two 142 MW plants of the same kind, 284 MW in total are for POSCO Power Corporation, the largest IPP in Korea and are scheduled for delivery in 2009 and 2010 respectively. POSCO Power is building the power plants at Gwangyang Works of POSCO, the Korea's largest steel company headquartered in Pohang. Mitsubishi Corporation will handle the trade particulars for both orders.

The latest Chinese order brings the total number of BFG GTCC plants ordered from the country to MHI to 16. The Korean order represents the country's second order to MHI for low calorie heating value furnace gas-fired GTCC plant, following a FINEX gas fired plant ordered for POSCO Pohang Works in 2005.

Qian'an Iron and Steel Works of Shougang Qian'an Iron & Steel Company Ltd a Shougang Group affiliate aims to utilize the low calorie by product gas from its blast furnace to meet part of its own electricity needs at the steel plant. The GTCC plant on order will incorporate an M701S gas turbine, a steam turbine, a generator and other equipment. Mitsubishi Heavy Industries Ltd will be responsible for the design and manufacture of the gas and steam turbines. Mitsubishi Electric Corporation will supply the generator.

POSCO Power is also introducing the BFG-GTCC at POSCO's Gwangyang Works to utilize energy effectively in the POSCO Group and reduce environmental burden. The two 142 MW BFG-GTCC plants will each consist of an M501S gas turbine, a steam turbine, a generator and other equipment. The order was placed to Mitsubishi Heavy Industries Ltd through POSCO Engineering & Construction Company Limited of Pohang, which is a major general construction company in Korea and the EPC contractor of this BFG-GTCC project.

Shougang Holding acquire stake in Fushan Energy

It is reported that Fushan International Energy Group Ltd declared June 18th to bring in Shougang Holding Ltd as a shareholder and will build up a long term cooperation agreement with the new partner.

Under the agreement, Shougang Holding will acquire at least 2 million tonnes refined metallurgical coal a year from Fushan Energy from 2009, with the volume to increase in years to come and not higher than for the other buyers of the Hong Kong listed company, meanwhile, Shougang will enjoy discount for large quantity purchase of the resource.

Fushan Energy said Shougang Holding will be a quality client with rich experience in management and market resource.

Analysts note in front of spiking coal price and tight inventory, not only electrical coal enterprises are seeking for cooperation, but also the steelmakers such as Wuhan Steel have found their partners in resource sector.

Mr Su Guohao executive director of Fushan Energy said the group will complete purchase of three coalmines in Shanxi this July, and make them to generate 6.03 million tonnes production in one or two years. Fushan Energy is developing coal and the up and downstream industries in future. At present, it has started building a 3 million tonnes per year coal preparation plant.

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.

US ITC keeps AD duty on silicon metal from Russia

It is reported that US International Trade Commission determined revoking the existing antidumping duty order on silicon metal from Russia would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of the Commission's affirmative determination, the existing order on imports of silicon metal from Russia will remain in place.

Mr Shara L Aranoff Chairman, Mr Daniel R Pearson Vice Chairman and Mr Charlotte R Lane Commissioners, Mr Irving A Williamson and Mr A. Pinkert Dean voted in the affirmative. Commissioner Mr Deanna Tanner Okun did not participate in this review.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.

Mechel to acquire shares of Southern Kuzbass, Korshunov Mining and Southern Urals Nickel

Mechel announced its intention to acquire remaining shares of Southern Kuzbass OAO, Korshunov Mining Plant OAO and Southern Urals Nickel Plant OAO from minority owners of these subsidiaries.

According to the release, the present invitation to make offers is addressed to any number of unspecified persons and corresponds to the clause 1 of the article 437 of the Russian Federation Civil Code and is not a public offer.

The release added that Mechel will begin to review the offers on the day following this announcement. If the day falls on a weekend or a holiday specified by the legislation of the Russian Federation, the review of offers would begin on the first business day after it.

The period of acceptance of offers is 30 days. Mechel OAO is entitled to stop the acceptance of offers before the end of the specified period by publication of the corresponding announcement on the Company’s website. If a person interested in selling their shares does not receive any official answer in 15 days period since the date of sending their offer, the offer is considered to be voided by Mechel OAO and does not imply any mutual civil rights to both

Alchevsk steel production in April down by 8%

It is reported that in April compared to March Alchevsk Iron and Steel Works has reduced the production of sinter at 6.6%, or 29,000 tonnes to 411,000 tonnes.

In April, Alchevsk Metallurgical Plant also reduced as compared to March steel production by 8%, or 37,000 tonnes to 427,000 tonnes of pig iron down by 10.5% or 41,800 tonnes to 357,200 tonnes and increased production of rolled down by 4.9%, or 20,000 tonnes to 425,000 tonnes.

In January to April 2008 compared with January to April 2007, Alchevsk reduced production of sinter at 1.9%, or 31,600 tonnes to 1,660,400 tonnes.

As reported in March compared with February Alchevsk Metallurgical Plant increased production of sinter by 9%, or 36,400 tonnes to 440,000 tonnes.

As per report in 2007, Alchevsk Iron sinter production cut by 3% or 153,000 tonnes to 49,13,000 tonnes, increased steel production at 6.3%, or 232,800 tonnes to 39,48,000 tonnes of rolled down by 9.3%, or 302,300 tonnes to 3 56,3000 tonnes of pig iron down by 12%, or 355,200 tonnes to 33,18,000 tonnes over 2006.

In 2007 Alchevsk Iron and Steel Works finished with a net profit UAH 324,985 million 90.18% stake in the factory owned corporation Industrial Union of Donbas.

Siemens targeting Russian steel sector for growth

Mr Werner Auer CFO of international plant builder Siemens VAI announced that Siemens VAI is reorganizing its Russian business “The share of Russian value added to our projects in the iron and steel industry will more than treble in the next two years.”

Mr Andreas Lemp who is responsible for business in the Russian iron and steel industry said “By acquiring other companies, establishing joint ventures and using our own resources, we intend to expand our network for engineering, plant and maintenance services in order to be closer to the customer.”

Mr Auer said currently, Siemens VAI Russia is responsible for a project volume of around EUR 800 million in the Russian iron and steel industry and relies on the support of nine competence centers in Austria, Great Britain, France, Italy, Spain, Germany and the US. The focus of these projects is on iron and steel production plants, an area in which Siemens VAI is the market leader in Russia. The company's leading position in automation solutions for cold and hot rolling mills will also be exploited in order to increase its share of turnkey installations in this segment of the market. He said that we expect steel production which is 66 million tonnes at the moment, to increase yearly by at least 5%. He added that this growth in production, he continued, would be covered not so much by new plants but by improvements in the output of existing steel manufacturing facilities. By strengthening our local modernization and maintenance portfolio, we will help to increase production and make the Russian steel industry more competitive.”

Mr Lemp aim emphasized was to be able to acquire and handle projects worth up to around RUB 250 million in Russia. This mainly concerns maintenance intensive products, the implementation of electrical components and automation solutions as well as plant modernization. He said that another focus would be on expanding spare-parts production in the company's own workshops as well as integrating clearly defined electrical and mechanical package solutions. The basis for this would be systematic standardization of products and processes to increase the operational dependability of plants and considerably reduce downtimes.

Mr Lemp said “Innovative concepts and optimizing production processes represent an enormous potential for productivity increases with simultaneous cost reductions. Given their service life of 20 to 30 years, plants and processes are subject to permanent change. Like no other plant builder, Siemens VAI has a broad technological basis of mechanical solutions from electrical engineering to automation as well as comprehensive knowledge of metallurgical processes. He said that “We can optimize our investment projects in the Russian steel industry and maintain the competitiveness of the companies there.”

According to Mr Lemp investment levels used to be the factor that decided whether locations and companies were competitive. In future, it will be the operating costs. For some steel manufacturers the proportion of energy and raw-material costs had raised from 30% in the 1990s to 79%. Integrated plant solutions which constantly optimize production against the background of changing raw material prices, stricter environmental regulations and rising energy costs are becoming more and more attractive to customers. He said that “We are the only plant builder to offer process know how, plant technology and automation expertise to create integrated solutions from a single source that help to save energy and protect the environment. Our aim is to optimize production in respect of quality, costs and operational dependability from ore extraction and slab casting to the refined rolled product.”

Severstal to build second part of polymer coatings line

It is reported that Russia Severstal has started the construction of the second part of polymer coating production line at its Cherepovets plant.

As per report the project will be commissioned in the end of next year, which has annual capacity of 200,000 tonnes. Besides, the total annual capacity of Severstal's polymer coating products will reach 400,000 tonnes per year once the new line is completed.

The finished products will be supplied to Russia's shipbuilding industry. Severstal is also planning to rebuild Cherepovets' hot dip galvanized production line to increase the quality and steel production for the coated products works.

TMK IPSCO announces appointment of senior management

TMK, one of the world's largest oil and gas pipe producers, announced the appointment of the senior management team of TMK IPSCO following TMK's recent acquisition of the US companies and assets of IPSCO's Tubular business from SSAB Svenkst Stal AB under a back to back transaction with Evraz S.A.

According to the release, Mr Piotr Galitzine has been appointed Chairman of TMK IPSCO as the new company will be known. He currently serves on the Board of Directors of TMK and has an extensive international background and career including senior positions with Mannesmann AG and BASF AG. His office will be at TMK IPSCO's headquarters at Lisle in Illinois.

Ms Vicki Avril has been named President and CEO. Ms Avril most recently was Senior Vice President and General Manager of IPSCO's Tubular businesses in both the USA and Canada. Ms. Avril has substantial experience in the pipe and steel industry and is also a board member of Greif Industries. She previously held senior management positions with IPSCO Inc. and the former Inland Steel Industries Inc. Ms Avril's office will also be located at the Lisle headquarters and she will report to Mr Galitzine.

Ms Avril said in announcement of the management group “I am excited about the depth of knowledge and experience this team brings to TMK IPSCO and am very enthusiastic about the future of this company backed by a wealth of pipe making experience from Russia.”

Completing the management team and reporting to Ms Avril are

1. Mr Scott Barnes VP & CCO
Mr. Barnes will continue to be responsible for tubular sales and marketing in North America, a position he has held for IPSCO US Tubular products since 2001. He joined IPSCO in 1985 as an outside sales representative and has progressed through various sales, operations and administrative positions with increasing responsibilities.

2. Mr Alexander Belomestnov VP & CTO
Mr Belomestnov will be responsible for Quality Assurance, Environmental Compliance, New Product Development, and Research and Development. He has twenty years of technical and quality assurance experience working in the Russian pipe industry, the past four years at TMK's Moscow head office in project management and technical sales.

3. Mr Nick Kachmar VP & CFO
Mr. Kachmar has been Controller of Koppel Tubulars since 2006 and previously served in various financial management positions with Copperweld Corporation, LTV Steel Tubular Products Corp. and Republic Steel.

4. Mr Bruce McKee VP & Chief Supply Chain Officer
Mr McKee will be responsible for logistics, procurement, scheduling, pricing/planning and operating standards. He has worked in both Canada and the US for IPSCO in financial, IT, sales administration, and production planning and corporate development.

5. Mr Ray Rarey VP & Chief Human Resources Officer
Mr Rarey will be responsible for all areas of HR including employee relations, compensation, benefits, safety, and training and development. He was VP and Chief Human Resources Officer for IPSCO Inc. since 2000 and also has held senior level HR and Industrial Relations positions with Berg Electronics, Collins & Aikman Corp Gulf & Western Industries, ITT Corp. and Firestone Tire & Rubber Co.

6. Mr Sam Smolak VP & CIO
Mr Smolak will manage and direct the information technology that will provide TMK IPSCO with manufacturing systems analysis and support. He brings many years of IT management experience in the steel industry including his most recent position with Koppel Tubulars, and prior experience with Babcock & Wilcox, GATX and Ellwood Quality Steel.

7. Mr Jim Tregenza VP & COO
Mr. Tregenza will be responsible for Seamless and Welded operations, Process Engineering, and Ultra Premium Connections. He was most recently Director-Operations for IPSCO's US Welded Tubular plants and his prior experience includes Works Manager at IPSCO's Regina, Saskatchewan tubular operations and Project Engineer for IPSCO North American Tubular Operations.

The purchase of IPSCO Tubular's US assets is an essential part of TMK's strategy to expand the company's global presence and increase its offering of high tech, premium class tubular goods for the oil and gas industry. This acquisition reinforces TMK's commitment to be an innovative company building and developing strong relationships with customers based on the concept of long term partnerships, quality products and services, and constant innovation to meet the customers' challenging needs.

UUIE join hand for Kiev steel plant

Ukrainian Journal Staff reported that the Ukrainian Union of Industrialists and Entrepreneurs is supporting the construction of a steel rolling plant in Kiev region.

Mr Anatoliy Kinakh UUIE's president and a member of the Party of Regions said that a letter has been sent with a request to Ukrainian Mr Viktor Yuschenko President, Ms Yulia Tymoshenko Premier and local authorities to promote the realization of the investment project as much as possible.

Novosibirsk operating results up by 18% YoY

It is reported that Russia's Novosibirsk Tin Works operating profit increased to RUB 36.1 million in the first quarter of 2008 up by 18% YoY from the same period last year.

Novosibirsk Tin Works said its operating margin was 17.1% in full year 2007 and 13.7% in the first quarter of 2008,

As per report despite an acute shortage of raw materials NOK reduced production of commercial tin by 3% to 2,898 tonnes in 2007, but due to higher prices its revenue from tin sales up by 44% last year. However group sales in Q1 2008 were marginally lower that in the first quarter of last year.

Norilsk Nickel advises recommendations to shareholders for AGM

MMC Norilsk Nickel announce that according to the recent report issued by Glass Lewis consultants, shareholders are advised to vote FOR on all items of the agenda of MMC Norilsk Nickel Annual General Meeting of shareholders scheduled for June 30th 2008. These recommendations are consistent with advice previously published by the Company’s Board of Directors and with recommendations issued by RiskMetrics/ISS, the world’s leading independent provider of corporate governance and proxy voting advisory services.

Mr Denis Morozov General Director of the Company said “We are grateful to Glass Lewis for supporting our efforts aimed at the improvement of corporate governance standards at Norilsk Nickel. He said that with respect to the election of Directors at the AGM it is vitally important that as many truly independent Directors as possible be elected at the AGM. The Board recommended that shareholders follow the recommendation on cumulation of votes among director candidates issued by RiskMetrics/ISS Governance Services. The Board believes that because of its preeminent standing in this area and the close attention its analysts have paid to the situation at Norilsk over the last several years, under Norilsk Nickel’s current circumstances RiskMetrics/ISS is the best source of well informed advice for minority shareholders.”

RiskMetrics/ISS recommended that shareholders cumulate all of their votes evenly between two independent directors Mr Guy de Selliers and Mr Heinz C Schimmelbusch without splitting their votes among other candidates. Glass Lewis recommended shareholders vote for Mr. de Selliers and another nominee. While acknowledging high qualifications of Messrs. Mr Ugolnikov, Mr Burt and Mr Levitt, RiskMetrics/ISS believes that Mr Guy de Selliers and Mr Heinz C Schimmelbusch are not merely the most experienced independent directors on the Board of MMC Norilsk Nickel but also that their independence is recognized by both Interros Holding Company and UC Rusal. Mr de Selliers is a prominent expert in finance and consulting, Chairman of the Audit Committee and Independent Directors Committee of the Board of Directors. Mr Schimmelbusch possesses unique experience in mining and metals sector, holds leading management positions at two mining and metal producing companies Timminco Ltd and Mettalurg Inc and is a member of Norilsk Nickel’s Committee of Independent Directors.
Norilsk Nickel would like to draw minority shareholders’ attention to the fact that if they vote for more than two candidates, under the cumulative voting process that will be used to elect directors and the large holdings by other shareholders, it is highly probable that their votes will be diluted resulting in the election of fewer independent directors to represent minority shareholders on the new board of Norilsk Nickel. Therefore, the management of Norilsk Nickel strongly recommends that all shareholders take part in voting and cast their votes as previously advised by the Board of Directors on June 4th 2008 which cumulate all of their votes for independent directors Mr Guy de Selliers and Mr Heinz C Schimmelbusch following the recommendations of RiskMetrics/ISS.

Mechel announces filing with SEC 2007 annual Report

Mechel OAO, one of the leading Russian mining and metals companies, announces that it has filed with SEC annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 foreign private issuers 20-F for the fiscal year ended December 31st 2007.

Jiuquan second stainless steel project to start in 2009

It is reported that the stainless steel capacity of Jiuquan Steel will reach 1.2 million tonnes per year after the completion of its on going second stage stainless steel project, which is set to start in 2009.

A manager with Jiuquan Steel said that the first phase construction was put into service in the end of 2005. It produced 166,000 tonnes stainless crude steel in 2006 and 301,000 tonnes in 2007, while plans are to go into full capacity operation of 600,000 tonnes in 2008. But given the slack demand, the output is likely to be altered accordingly.

In October 2007, a CR stainless steel line started service in the company in Oct 2007, marking the birth of another state owned integrated stainless steel maker.

Stainless steel market improves as nickel prices shoot up

It is reported that Taiwan’s stainless steel market seems to be improving as the nickel price has remained stable at USD 24,000 per tonne since last week.

Due to the impact of diminished production by stainless steel producers and sluggish demand, the nickel price has dropped by almost 50% from USD 51,600 per tonne in May of last year.

Fortunately nickel prices have rebounded, bolstered by the shutdown of Kalgoorlie Nickel Smelter in Australia. Encouraged by this, the price of stainless steel market is showing an upturn.

(Sourced from YIEH.com)

New Delhi to install stainless steel bus shelters

It is reported that Jindal Stainless Ltd has been awarded the second phase of DTC Bus Q Shelters by Delhi Transport Corporation. The Second BOT project envisages putting up of approximately 400 Bus Q Shelters uniquely designed and modeled in Stainless Steel.

The contract will have a capacity augmentation of another 25% apart from the variation of 10% and be executed over concession period of 10 years on Build Own Transfer basis.

The phase II of B-Q-S project comes at the heels of successful execution & installations of phase I of 225 Bus Q Shelters by Jindal Stainless, while the stainless leader once again emerged the highest bidder in the second phase tender as well; the B.O.T. project assures substantial revenue gains for DTC approximating at INR 4.5 Crore per month, on complete rendering the project.

The additional 400 Bus Q Shelters will adorn the capital’s key bus routes from Dhaula Kuan to ISBT in the clock wise direction, thus rendering an impeccable public infrastructure view through the entire stretch of Ring Road; Stainless Steel with its natural sheen & aesthetic appeal is all set to transform Delhi’s arterial routes in appropriate league to the upcoming Common Wealth Games 2010.

Mr NC Mathur director of Jindal Stainless said that “It has been a prestigious experience to successfully execute the phase I of B-Q-S project and we are happy to be able to impart our integrated strength and leadership excellence to bring stainless steel closer to the commonplace use and realize the dreams of a city to emerge at par with international living & facilities.”

He further added that “Stainless Steel has come a long way from its conventional usage in kitchenware & utility items and edges over mild steel or other building material for modern world’s architecture, building, construction and transport sector at large; while most materials can corrode and degenerate over long use, Stainless Steel promises unbeatable lifecycle durability and offers natural properties of corrosion resistance, high tensile strength with minimum maintenance and ‘green’ recyclable metal.

Nickel posts widest surplus in 8 months in April - Report

According to International Nickel Study Group figures, nickel oversupply grew in April 2008 to the widest in eight months as demand shrank for a third month.

The report showed that output beat demand by 13,700 tonnes and the consumption was 112,800 tonnes down by 0.9% MoM from March 2008.

The report said that production grew 6.1% to 126,500 tonnes in April, led by Canada and Colombia. Output was 121,600 tonnes a year earlier. Stockpiles at producers totaled 95,900 tonnes in April 2008 down by 1.8% from 97,700 tonnes at the end of 2007.

Nickel has lost 14% of its value this year as oversupply widened from last year's 107,900 tonnes.

Ratnamani Metals 2007-08 turnover up by 47.94% YoY

Gujarat based Ratnamani Metals & Tubes Limited has posted a record turnover growth of 47.94% YoY for 2007-08 fiscal at INR 845 crore as against INR 571.25 crore in 2006-07 fiscal.

2007-08 fiscal also saw it posting record export turn over including supplies to special economic zones for a total value of INR 386.80 crore which is about 45.75% of gross turnover. Net profit after tax at INR 90.03 crore is higher by 40.27% YoY as against INR 64.18. It has also declared a dividend of 70% to its shareholders.

The order books position of Ratnamani Metals is INR 600 crore including export order of INR 150 crore. The main product categories of Ratnamani are carbon steel and stainless steel.

Unimech sees strong demand for its stainless steel valves

It is reported that Unimech Group Bhd has started producing stainless steel valves at its new USD 1 million plant at Changzhou in China for the chemical industry market to boost its revenue growth.

Mr Datuk Lim Cheah Chooi chairman of Unimech Group said that there had been strong demand for these valves in Indonesia, China and Singapore.

He told reporters that “The China market currently contributes about 10% to the group’s revenue. We expect the revenue from China to increase over the next two years because of its demand for such valves.”

Mr Lim said the group would spend about CNY 4 million in 2008 to upgrade its operations in Malaysia and China.

In Malaysia, Unimech has two factories in Sungai Petani, five in Seberang Prai and one in Ipoh. It currently produces valves and fitting instruments with an estimated value of about CNY 10 million a month. The group also produces cast iron valves for the air-conditioning and irrigation purposes at its Tianjin plant.

MCX Nickel registers weekly low following LME

MCX Nickel dropped to a weekly low of 988 following LME movement and profit booking. As per report nickel closed near 1004 with net loss of 3.09% from previous closing.

LME nickel comes under pressure due to a poor fundamental outlook and technical weakness, rising stocks amid declining demand from the stainless steel sector, along with significant resistance at the thirty day moving average, now around USD 24,363 per tonne.

Indian domestic iron ore prices surge by INR 500 per tonne

It is reported that the domestic prices of Indian iron ore at Barwil in Orissa state of India surged in last 2 days by INR 500 per tonne due to production constraints amid strong demand from steel makers.

Product: Iron ore for BF
Size: 10mm - 30mm
Grade: 65%

In INR per tonne Ex mines
Royalty of INR 27 per tonne not included
CST in addition

Product: Iron ore for sponge iron makers
Size: 5mm – 18mm
Grade: 63%

In INR per tonne Ex mines
Royalty of INR 27 per tonne not included
CST in addition

The sudden increase is attributed to heavy rains, which has hit the mining activity as well as transportation in the area.

(Sourced from www.steelprices-india.com)

Vale on acquisition trail - Vale denies news

Companhia Vale do Rio Doce makes clear regarding news published by the Brazilian press that it is not negotiating the acquisition of any company and it is not discussing with banks the financing of an acquisition.

Vale announced publicly on June 12th 2008 that it filed with the Brazilian securities regulator, Comissão de Valores Mobiliários a request for registration of a public offering of equity, estimated to reach USD 14 billion, not including the underwriter’s over allotment option. Vale has an effective registration statement with the US Securities and Exchange Commission.

The completion of the offering is subject to CVM approval and to conditions prevailing in global capital markets. If Vale determines to proceed, it will provide further information on the characteristics of the offering.

Indian iron ore miners to set up 20 million tonnes steel capacity in 5 years

BS reported that Indian iron ore miners are planning to add 20 million tonnes of steel capacity within 5 years at an investment of about INR 80,000 crore.

Mr Rahul N Baldota president of Federation of Indian Mineral Industries said that "We envisage adding 15 million tonnes to 20 million tonnes of steel capacity in India in 5 years with an estimated investment of INR 80,000 crore."

Among the leading iron ore mining firms that plan to set up steel units include MSPL, Rungta Mines, MEL, BMM Ispat and Brahmi Steel. About 100 sponge iron makers too are in the line for adding addition capacity.

While MSPL and Rungta Mines intend to set up 5 million tonnes capacity each steel project, BMM Ispat and Brahmi Steel's proposed capacity would be 3 million tonnes each. The sponge iron producers are expected to add about 2 million tonnes steel capacity to their existing 3 million tonnes.

This comes at a time when the mining industry is fighting against the imposition of 15% ad valorem duty on export of iron ore, which is likely to hit the revenues of merchant miners by an estimated INR 8,000 crore.

BHPB bid for Rio - BHP to file documents with Chinese regulators

Herald Sun reported that BHP Billiton is likely to file documents for its USD 180 billion bid for Rio Tinto with Chinese competition regulators this month.

Mr Sam Evans a BHP media spokesperson said that "We are intending to file with the Chinese regulators later this month.”

BHP is filing its application ahead of the introduction of a new anti monopoly law in China on August 1. At this stage, it is uncertain how the new rules will affect BHP's submission as the final version of the law has not yet been published. However, Chinese steel mills have been vocal in their concerns that a combined BHP-Rio will wield too much power over iron ore prices.

BHPB has already submitted its applications to competition bodies in Europe, US, Canada and Australia.

CISA warns steel makers of excessive iron ore imports

According to China Iron & Steel Association, China's iron ore supply has overtaken the demand recently due to slower steel output growth but hectic domestic iron ore production expansion. Therefore, steel mills should be alert for possible loss brought by excessive ore imports.

According to the statistics, domestic crude steel production rises 9.44% YoY to 216.11 million tonnes in the first five months of 2008 down by 10.53 % YoY from the growth rate of same time of 2007. And BF pig iron output increases 8.11% to 202.99 million tonnes down by 9.42% YoY from the output growth of last year.

The incremental BF pig iron output of 15.23 million tonnes per month would require 24.06 million tonnes of iron ore. However, domestic crude ore output expands 25.67% YoY to 31.09 million tonnes from medium and large mines in the first five months. That is to say the increased iron ore production has reached 30.24 million tonnes, 6.18 million tonnes more than the demand growth tonnage.

Customs data reveals that China's imported iron ore up by 19.55% YoY to 192.35 million tonnes in the first five months, sending the annualized ore import volume to 462 million tonnes, 79 million tonnes more than the year before.

CISA warns that the import tonnage has far exceeded the real iron ore consumption. In particular, imported iron ore has jumped 40.98% to 38.91 million tonnes in May alone which is against the status quo of market fundamentals. Meanwhile, landed price of imported iron ore has stayed high in 2008 reached USD 127.36 per tonne in January USD 129.5 per tonne in February, USD 125.97 per tonne in March, USD 133.85 per tonne in April and USD 130.9 per tonne in May.

CISA predicts that imported iron ore price has limited scope for further increase. China's incremental imported iron ore demand is estimated at 60m tons throughout this year, however, the increased ore imports already reach 31.45 million tonnes in the first five months, representing 52.42% of the forecasted full year demand addition. And steel mills could face considerable loss once they continue to import hefty amount of iron ore to exaggerate the port congestion and drive up the ore stock at seaports even higher.
(Sourced from MySteel.net)

Aricom sells first iron ore from Russian mine to Chinese buyer

Reuters reported that Anglo-Russian miner Aricom Plc has sold the first 5,000 tonnes of iron ore from its Kuranakh deposit in the Russian Far East as it seeks to become a supplier of raw materials to China's booming steel industry.

Mr Jay Hambro CEO of Aricom said that Aricomis also considering partners for the USD 1.5 billion development of other iron ore deposits near the Chinese border, which are due to launch in 2010. He said that "What we have done is proven our ability to contract with another party, proven the rail logistics."

He added that "We will be going into full crushing and screening operations in the third quarter and we will have a product to sell on a regular basis."

Mr Hambro said Aricom would be able to deliver concentrate from Kuranakh by rail to the Chinese border at a freight rate of USD 13.44 per tonne or about a quarter of the cost from Australia. He said that sales of ilmenite, the ore from which titanium sponge or dioxide is made will begin early next year.

PT Antam declares Herald bid unconditional

AAP reported that Chinese Indonesian consortium PT Antam and Zhongjin has declared its AUD 554 million takeover offer for Herald Resources Ltd unconditional, a move likely to be mirrored by its rival suitor, Indonesian coal miner PT Bumi Resources.

Rival suitors PT Antam & Zhongjin and PT Bumi Resources have both raised their bids for the group to AUD 2.80 a-share in the past week and until today, had similar conditions on their bids. While Bumi’s offer is currently conditional on 50.1% shareholder acceptance there was speculation this morning it was likely to follow Antam-Zhongjin’s lead and declare its own offer unconditional.

The offer is still well below previous valuations by the suitors of Herald as high as AUD 3.51 a share but the company has been hit hard by a significant slump in base metal prices since the start of the year.

Rio opposes sharing iron ore rail infrastructure

Reuters reported that mining giant Rio Tinto Ltd has attacked an Australian regulator's recommendation that it allow rivals to use its rail lines in western Australia to transport iron ore, predicting it would lead to chaos.

Rio said that the call by the National Competition Council over use of Rio's and rival BHP Billiton Ltd's lines in the iron ore rich Hamersley and Robe River regions of west Australia could cost the nation AUD 30 billion in lost investments.

Mr Sam Walsh head of Rio iron ore division said that “Imposing such a system would lead to the infrastructure chaos and inefficiencies.”

The recommendation, which will go to the government for a final decision, follows representations by rival iron ore miners who want to use existing lines rather than face the cost of building their own to grab a share of surging demand for iron ore, especially from China. The council, an advisory body, whose recommendations go to the government for final approval, did not release reasons for its recommendation. It is asking for public comments by July 21st 2008.

Nearly all of the 200 million tonnes or so mined in the Pilbara region of west Australia annually is exported by BHP or Rio via separate lines.

Fortescue Metals Group which has been pushing for access to the lines said that "Australia stands to lose enormous opportunity if mining companies in the Pilbara are denied the opportunity to access existing and available infrastructure to export their product.”

Voracious appetite among Chinese steel mills for Australian ore has mining companies scrambling to fill orders and spawned a legion of entrants with no way to get their ore to waiting ocean freighters.

Queensland coal companies to meet treasurer over royalty hike

Bloomberg reported that representatives of the Queensland coal industry, angered by a decision to raise the royalty on exports of the fuel and they will meet the state's treasurer Mr Andrew Fraser to discuss the 22% increase.

The council on May 8th 2008 said that before the increase royalties on mineral exports from Queensland, home to the world's biggest coking coal shipper, BHP Billiton Ltd, may double to AUD 3 billion next year as prices surge. The state will raise the royalty next month for the first time in 14 years as record prices bolster profits for producers.

Mr Fraser on June 2nd 2008 said that the royalty on coal sold for more than AUD 100 a tonne will increase to 10% from 7% for the year starting July 1, while a lower rate will be maintained on cheaper coal.

Mr Michael Roche CEO of Queensland Resources Council said that “We need certainty and constancy of regimes as billion dollar investments are required to build the new mines industry has planned.”

Mr Roche said that “Massive hikes in royalties and the imposition of new levies, without warning or consultation, are not something we have come to expect from a government that lays claim to being focused on the long term attractiveness of mining investment in Queensland.''

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.

Cleveland Cliffs plans to take control of Portman

Bloomberg reported that Cleveland Cliffs Inc is planning to take full control of its Portman Ltd unit in Australia after a share buyback boosts its stake in the business to 89%.

Mr Joseph Carrabba CEO and Ms Laurie Brlas CFO of Cleveland Cliffs said that “Buying out the remaining 11% of Portman, Cleveland Cliffs would cost several hundred million dollars and could be financed this year.

Portman, with a market value of AUD 3.03 billion trails only Rio Tinto Group and BHP Billiton Ltd in iron ore output in Australia, shipping about 8 million tonnes a year. The company last month offered to buy back as many as 16.5 million shares or 9.4% of the stock, which would raise Cliffs' stake in the remaining shares to 89% from 80%.

Ms Brlas said that “If all the shares are tendered that are authorized, the pie shrinks and by default our ownership moves up to 89%.It isn't in anyone's best interest for that 11% to be indefinitely out there traded.''

But Mr Carrabba and Ms Brlas didn't give a precise time frame for when they would buy the remaining stake.

Camiven urges government to reactivate mining activity

BNamericas reporter that Venezuela's mining chamber Camiven has urged the government to reactivate mining activity in the country in order to generate social and economic benefits from the healthy period the sector is currently enjoying around the globe.

Mr Luis Rojas executive director of chamber told BNamericas that for now, large miners operating in Venezuela are not doing much because of delays on environmental permits and a concession system that's being threatened.”

He added that "When a concession based system is threatened, it is tough to make investments or to consolidate mining operations, let alone explore, which requires venture capital.”

Faced with no clear signs from the Venezuelan government about the future of mining and the lack of a long-term mining plan, Mr Rojas feels the government has not yet developed a policy for the sector.

Last week, Camiven expressed the need for a national mining plan that would recognize the rights of investors and allow projects to be developed efficiently. However the sector is only aware of short term measures for now and business does not prosper that way.

Sultan Mining to boost coal production with IPO funds

Dow Jones reported that Philippine coal miner Sultan Mining & Energy Development Corp will use proceeds from its planned initial public offering to ramp up coal production, helping the company to swing to profit within a year.

Sultan produces 1,000 tonnes of coal from its mining claims in Bislig a town in southern Philippines up from 220 tonnes at the start of the year. It supplies coal to cement, tuna canning and power companies.

Mr Anthony Buyawe senior vice president & CFO of Sultan Mining said that "The company needs capital to ramp up its production. We can achieve profitability in the next 12 months."

Mr Buyawe said that PHP 200 million of the IPO proceeds will be used for capital expenditure, particularly for the purchase of new mining equipment; PHP 160 million for working capital and PHP78 million to settle short term debt. He added that the planned equipment purchase could easily increase daily production by 50% to around 1,500 metric tons.

Sultan Mining's offer will start June 26. The offer, comprising 480 million shares, will be sold primarily to local investors at PHP 1 each. The shares represent 33.5% of Sultan's post IPO capital.

Gujarat committed to coal supply for KSK Energy project

Gujarat Government said that it is committed to the coal supply pact with KSK Energy Ventures, which is tapping the capital market with the second biggest initial public offering in the power sector. A senior official in the Gujarat government said that "We are committed to the supply of coal to KSK Energy Ventures for its Wardha Chhattisgarh power plant."

KSK Energy Ventures had entered into a coal supply and investment agreement with Gujarat government promoted GMDC in 2006, under which the Wardha SPV is entitled to 7 million tonnes of coal per year from the Morga II coal block at mutually agreed upon prices, starting 3 years from the beginning of commercial mining of the block.

Further, under the terms of the agreement, GMDC has the right to invest for up to 26% stake in the Wardha SPV.

KSK Energy is coming out with its initial public offer to raise up to INR 882 crore to part finance its investment in the SPV Wardha Power Company for the 1,800 MW coal based thermal power plant in Chhattisgarh.

Indian coal ministry invites applications for CTL projects

Union coal ministry has invited applications for setting up coal to oil projects offering for the first time a coal block for the purpose. CTL projects, seen as an alternative energy source, require huge reserves of coal and the block that has been offered will be in an area which is not with Coal India Limited. An inter ministerial group has been set up to examine the proposals that would be received for CTL projects.

Sources said that this was also the first time that the end use for captive coal blocks were being expanded and would substantially cover surface coal gasification and underground coal gasification projects. At present, only power, iron and steel, and the cement sector are allowed captive coal blocks. The move on CTL gains significance in view of the spiraling prices of crude.

The CTL process enables production of oil and oil products including diesel from coal. About 1 to 1.5 billion tonnes of coal reserves of E and F grade is proposed to be made available. While blocks would be selected in consultation with the CIL subsidiary, Centre Mine Planning and Design Institute, blocks already identified for development either by CIL, Neyveli Lignite or the Singareni Coal Company will not be offered to the private sector.

The blocks being offered will also have to be at a reasonable distance from existing mines. However, companies proposing to invest in this would have to be big with a minimum net worth of about INR 4,000 crore since the expected investment for a 3.5 million tonne synthetic oil project is expected to be about USD 6 to USD 8 billion.

Several Indian corporate majors have already shown interest in setting up such units for which technology would have to be sourced from abroad.

Guangdong to ensure enough power supply in 2008

It is reported that Guangdong Province will absorb 135 million tonnes of coal this year to ensure enough supply for power generation up by 8.9% YoY from that in last year.

Electricity consumption is expected to increase some 12%in 2008, as demand for coal is increased. As the province stopped producing coal since 2007, it has to wholly rely on resources from other provinces or other countries