Acute shortage of HRC pushes prices by 6% in last 7 days

The price data for last 7 days has revealed that the price of tube grade HRC has surged by 6% during the last 7 days in Mumbai.

Prices are in INR per tonne inclusive of ED and VAT
Delivery is EX Mumbai

Such a huge surge is attributed to limited supply amid booming demand. Market is facing acute shortage. As per market information, HR manufactures are not willing to supply in the domestic market. This situation could be a signal for an impending price increase.

(Sourced from www.steelprices-india.com)

Mining industry is backbone of Goa economy – CM

Mr Digambar Kamat chief minister of Goa said that the mining industry is the backbone of the state economy and therefore this industry must not suffer.

He added that there are damages and effects due to mining activities but if certain precautions are taken, the adverse effects can be minimized.

Mr Kamat asked the mine owners to shoulder their responsibility in safe guarding the environmental growth and take measures for minimizing pollution caused due to mining activities. He asked the people to plant trees in order to maintain the environment balance.

He also said that people should not oppose mining for the sake of opposing it on the contrary there is need to lessen the gap of understanding between people and mining industrialists. He came down heavily on the opposition who make baseless allegations and criticize the government and said that people should not get misguided by such false propaganda.

HEC commissions hot coke car for RINL

Heavy Engineering Corporation Limited has recently commissioned a hot coke car with coke bucket. The equipment is being dispatched to Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant for its newly built 7 meters high coke oven battery number 4.

The car will receive red hot coke at 1,100 degree centigrade from the battery and transport it to the quenching chamber where it is quenched to 200oC through inert gas. The heat absorbed by the inert gas is used to make steam that is in turn used to generate power.

Cairn to begin pipeline laying for Rajasthan crude

PTI reported that Cairn India will begin laying a USD 800 million pipeline to evacuate crude oil from its Rajasthan fields, peak output from where is now seen at 175,000 barrels per day, 17% more than the previous estimate.

Cairn India has awarded the pipeline laying contract to Larsen & Toubro, who is to complete the job in 6 to 9 months time, in sink with the company's oil production plans.

The heated pipeline for transporting crude oil from the Rajasthan fields will begin at Mangala terminal to Salaya oil export terminal near Jamnagar in Gujarat. Crude oil production from the Rajasthan fields is to begin in second half of 2009 even as estimates for peak output have been raised by about 17%.

Sources said Mangala, the largest field in the RJ-ON-90/1 block, was previously envisaged to produce 100,000 barrels per day but discovery of additional reserves has raised the output to 125,000 barrels per day. Bhagyam, the second biggest field, will produce 40,000 barrels per day and Aishwariya 10,000 barrels per day, totaling to 175,000 barrels per day.

Sources said the government has approved shifting of the crude oil delivery point from the Rajasthan field flange to Salaya in Gujarat and including the cost of laying the 585 kilometers long pipeline from Barmer to the new sale point in the field development cost that would be recovered by Cairn from sale of oil.

Gas based power projects hit by feedstock paucity

BL reported that India has about 13,400 MW of natural gas based power capacity, but they are operating at half their capacity, because enough gas is not available.

Mr Jairam Ramesh union minister of state for power said that "The situation is not very encouraging as the plants are operating at just 53% PLF." He added that however, the situation could improve once Reliance Industries commences gas supply from its fields in offshore Krishna Godavari basin.

He said that Reliance is expected to supply 80 million cubic meters of gas a day from March 2009. When that happens, power plants could operate at 90% PLF.

India to decide on IPI pipeline project soon – Report

PTI reported that India will sign an agreement very soon with Iran and Pakistan in connection with the transnational pipeline project involving the 3 countries.

Mr Murli Deora union petroleum minister after a meeting with his Iranian counterpart Mr Gholam Hosein Nozari for talks on the USD 7.5 billion IPI pipeline project said that are some minor problems which have been sorted out.

He added that "There are also some issues with Pakistan that has been taken care of. The Pakistan oil minister has changed and so we have to deal with the new minister who is going to deal with it. Very soon we should be able to sign the agreement with Iran and Pakistan."

The project was first mooted in 1994 but has been stalled by a series of disputes over prices and transit fees.

India to set up 6 nuclear plants with Russian support

Mr Jairam Ramesh union minister of state for power said that the Nuclear Power Corporation will set up 6 more plants to produce 8,000 MW on Kudankulam mode with Russian fuel support. Pointing out that the first consignment of enriched uranium had arrived from Russia, he said that the first 1000 MW unit at Kudankulam would be commissioned in April 2009. Another 1000 MW unit would start functioning in December 2009.

Mr Ramesh said that "Without the nuclear agreement, the support of International Atomic Energy Agency and Nuclear Suppliers Group countries, we cannot get fuel from Russia for the proposed projects."

Referring to a number of power projects proposed by central public sector undertakings in the state, Mr Ramesh said that work on the 14 year old proposal to establish a 1,600 MW thermal power project at Jayamkondam was progressing well. The third phase of 500 MW project of the Neyveli Lignite Corporation would be commissioned in March 2009.

Meanwhile, Mr Arcot N Veeraswami state electricity minister said that an order had been issued for importing coal from Indonesia, Australia and China for merchant power projects. The imported coal would have just five per cent ash content compared to 40% ash content coal available in India.

Preliminary works underway for Chennai container terminal

It is reported that preliminary works are underway for setting up Chennai Port Trust's INR 1,300 crore container terminal at Gerugambakkam in Kancheepuram district.

Chennai Port Trust is in the process of acquiring 64 acres of land for the project.

ONGC Tripura awards INR 2200 core contract to BHEL & GE

Oil & Natural Gas Corporation said that its unit ONGC Tripura Power Company had placed an INR 2200 crore order with a consortium of Bharat Heavy Electricals Limited and General Electric.

ONGC Tripura Power Company, 50% owned by ONGC, has given the order for generation of 720 MW of power in Tripura.

ONGC also said that Power Grid Corporation, ONGC Tripura and the North East Region would set up a transmission line at a cost of INR 1800 crore.

Triveni Engg inks MoU with TGM Turbinas for turbine unit

Projects Today reported that Triveni Engineering & Industries Limited has signed a MoU with TGM Turbinas Industriae Commercio Limited of Sao Paulo, wherein both parties have undertaken to conclude a license agreement for the manufacture and sale of impulse and reaction steam turbines of 25 MW to 45 MW at the company's Bangalore facility.

Krishnapatnam port to be dedicated to the nation by July 17

Projects Today reported that Ms Sonia Gandhi UPA chairperson is likely to formally dedicate to the nation Krishnapatnam port project on July 17th 2008.

The proposed port at Krishnapatnam became operational on June 19th 2008, with 3 out of its 4 berths being opened for regular traffic of cargo or container ships. Over INR 2,000 crore was invested in the project so far.

The Andhra Pradesh government had awarded the project to Krishnapatnam Port Company on a build own operate and transfer basis.

SKIL likely to bag Mumbai Trans Harbor link project

It is reported that Sea King Infrastructure Limited has inched closer to bagging the project for the INR 6,000 crore, 22 kilometers long Mumbai Trans Harbor Link between Sewari and Nava Sheva.

The Maharashtra State Road Development Corporation, the nodal agency for the project, has decided to recommend to the state government that one of the options for taking the project forward is to ask the SKIL-IL&FS consortium to submit a fresh tender. The consortium was left as the sole bidder after RELINFRA Hyundai consortium pulled out of the race last week.

Mr Anil Deshmukh chairman of MSRDC and state PWD minister said that "The MSRDC board decided to tell the state government that the bid by the Anil Ambani controlled consortium is no longer valid as it has not submitted the letter for extension of the validity of the bid and that it should direct the corporation what action should it take."

Mr Deshmukh said that "We will also inform the government that there are 3 options, asking the only other bidder in the race, SKIL-IL&FS, to re bid, scrapping the process, or execution of the project by the MSRDC with funds from the state government."

Golden Rock workshop exports 3 locos to Mozambique

BL reported that Golden Rock Railway Workshop has exported two service diesel locos to Mozambique after refurbishing them to suit the requirements of the railway system of Mozambique.

The modified engines have been provided with Centre Buffer Coupler in lieu of the existing ABC Coupler. The meter gauge engines were converted as cape gauge to suit the Mozambique system.

The refurbished engines have also been provided with dual brake system in place of vacuum brake, twin beam head lights for improved night visibility, micro processor based paperless speedometer, LED type classification lights and LED type reading lamps in the driver’s cabin. The cabin has been modified with various crew-friendly features.

The Golden Rock Railway Workshop has also bagged a fresh order from the Rail India Technical & Economic Services to export 3 diesel locomotives to West African country Benin. The workshop would carry out necessary modifications in three diesel locomotives and export them in four months’ time.

Indian Railways to invite bids for Pune Ahmedabad high speed corridor

Projects Today reported that Indian Railways is planning to float a global tender from consultants for conducting a pre feasibility study for Pune to Ahmedabad high speed corridor.

A consultant will focus on technicalities, financial and operational viability of the project. The pre feasibility study will be followed by a more detailed study focusing on traffic pattern, funding plan, stakeholders' view, fare structure and other related issues before beginning the work.

The proposed high speed train or bullet train is expected to run at 300 kilometers per hour on a dedicated fast track. The cost of the pre feasibility study will be shared by Maharashtra, Gujarat and the union railways ministry.

JCB India waiting for land allotment for expansion

BS reported that leading construction equipment manufacturer JCB India is awaiting allotment of land from Maharashtra Industrial Development Corporation for its facility expansion plans.

The report said that JCB India has demanded another 100 acre land next to its 2 present units in Talegaon near Pune, to which the government of Maharashtra is yet to react.

Meanwhile, JCB has inaugurated a new dealership facility in Pune along the Mumbai Bangalore national highway. The facility would be run by Siddharth Auto Engineers.

Mr Vipin Sodhi MD & CEO of JBC India said that "We need around 100 acre land for our immediate expansion plans. We have forwarded a proposal in this regard to the state government. However, we are yet to hear from state owned MIDC over the land allotment."

JCB has decided to have an expanded set up in Talegaon ready by December 2008. The present situation however has ensured that the land allotment itself will happen by the year end. JCB, in November 2007, had inaugurated its excavator manufacturing unit in Talegaon industrial area, when the demand for the next piece of land was forwarded.

NMPT wins best export facilitation award

BL reported that Federation of Karnataka Chambers of Commerce & Industry has given the special award for the best export facilitation organization to New Mangalore Port Trust.

Mr S Gopalakrishna traffic manager of NMPT received the award from Mr Venkataramanappa minister for small scale industries & sericulture of Karnataka.

Federation of Karnataka Chambers of Commerce & Industry has been giving export excellence awards since 2006 to honor the top exporters.

IJM Corp wins MYR 500 million highway deal in India

Reuters reported that Malaysian builder IJM Corporation Bhd has won a MYR 500 million contract to construct a highway in India.

Moser Baer hopeful of cutting solar energy cost

At a time when crude prices are peaking, a reduction in solar power costs could brighten the energy scenario. The solar photovoltaic business, which incurs a generation cost of INR 12 to INR 14 per unit, is looking at reducing it to INR 4 to INR 6 a unit in the next 3 to 5 years. The reduction would mainly be on the back of anticipated easing of global demand supply imbalance of silicon, advances in thin film PV, higher cell efficiency and other innovations.

Mr Ravi Khanna CEO of Moser Baer Photo Voltaic Limited said that "Depending on various factors, 1 MW of solar energy involves an investment of USD 5.5 to USD 7 million. This is going to come down to the USD 3.5 to USD 5 million range in short to medium term. In the next 10 years it may go as low as USD 2.5 million per MW. In terms of generation cost, today I can give power at about INR 14 per unit and our roadmap clearly shows us a visibility to hit INR 4 to USD 6 per unit."

In contrast, the average cost of generation at coal fired thermal stations is around INR 3 a unit. Gas based generation costs higher at around INR 4 to USD 5 a unit, while liquid fuel based generation costs over INR 7 a unit. However, industrial power purchasers are willing to shell out higher tariffs upwards of INR 7 a unit to meet the peaking shortages at these high tariffs.

Moreover, Mr Khanna pointed out that optimization in processes and equipments, customized for the PV business, could yield 25% to 50% cost benefits. He added that "For instance, PV players have been procuring silicon wafers of very high purity level which is not ideally required, so we have invested in a firm in Slovenia where we are producing solar grade silicon and optimizing quality."

Globally, solar energy plants with huge capacities have started dotting the PV horizon. These include a 300 MW solar facility in New Mexico, 280 MW Solana Solar plant in Arizona, 154 MW project in Australia. In India, Moser Baer Photo Voltaic has signed MoU with Rajasthan for setting up a large solar power project with an estimated generation capacity of 1 MW to 5 MW. The project would be the largest grid connected solar farm in India. Although the company refused to comment on the tariffs for the project, the subsidy level is likely to be about INR 10 to INR 12 per unit.

Ashoka Buildcon to invest INR 535 crore for Bhandara road project

It is reported that Ashoka Buildcon is planning an investment of INR 535 crore in the construction of Bhandara road project, which will connect Chhattisgarh and Maharashtra.

The road project involves construction, operation and maintenance of a 320 kilometers long four lane road section of NH 6 from the Chhattisgarh Maharashtra border to the Wainganga Bridge section from 405 kilometers to 485 kilometers of the NH 6. This will be part of the Golden Quadrilateral connecting Raipur with Nagpur, Mumbai and Pune.

Under the terms of the concession agreement, the construction of the project is to be completed by March 2010. NHAI will give a grant of INR 10 crore to Ashoka Highways (Bhandara) during the construction phase of the project. The toll rates are set forth in the concession agreement with a clause to revise the rates every year with effect from September 1st 2008 as per the changes in the Indian Wholesale Price Index each fiscal year.

Ashoka Buildcon, through its subsidiary Ashoka Highways Limited, will implement the project.

TATA appoints Mr Tolia as new director of TMTC

Express News Service reported that TATA Group has appointed Mr Chetan Tolia as director of TATA Management Training Centre from his earlier post as MD of TATA Blue Scope Steel Limited, a 50:50 JV between BlueScope Steel and TATA Steel.

Mr Tolia's responsibilities will involve taking TATA Management Training Centre to greater heights in organizational learning, applied research and group leadership programs.

TATA Power to add 600 MW capacity in 2008-09 fiscal – Report

TATA Power will add 600 MW of capacity in this financial year, taking its total generation capacity to 3213 MW from current generation capacity of 2,623 MW. This will include 100 MW of wind power, taking its total wind power generation capacity to 200 MW.

Mr Prasad Menon MD of TATA Power said that in 2007-08 fiscal, it did not add any capacity except in wind energy. He added that "But this year we are well on track to take up our capacity by almost 600 MW. Of this, 250 MW will be at Trombay facility. Capacity expansion at Trombay is running ahead of schedule and will come on stream by October 2008."

He added that this will be the eighth unit of the Trombay plant, which currently has a capacity of 1,330 MW. The second will be the 120 MW powerhouse number 6 at TATA Steel Works Jamshedpur, which is a captive project.

Mr Menon said that the first unit of 2 x 45 MW phase of Haldia Project was synchronized with the grid in April 2008 and the second unit is scheduled to commission later this year, thereby taking the total capacity to 120 MW.

Mr Menon said that apart from this, it also plans to add two wind projects of 50.4 MW each. These are being developed in Jamnagar district of Gujarat and Gadag district in Karnataka.

SAIL RSP launches CSR schemes to enhance economic standard

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has launched the Parshwanchal Vikas project as a part of its corporate social responsibility to enhance the economic standard as well as the quality of life of the periphery populace through different schemes.

In order to provide sustainable income generation sources to the villagers, RSP is promoting improved agricultural methods and agri horti forestry projects for the farmers as well as small land holders, at the same time empowering the landless populace with knowledge and skill in various off farm employment skills and livestock development.

RSP will also promote women oriented schemes and training and capacity building initiatives for village youth. They are encouraging education in a big way through a number of scholarship schemes.

Under the ‘Improved agriculture practices’ farmers are being trained at the Institute for Peripheral Development of RSP regarding soil and water management and are also being taught sound and scientific crop management practices. It is also providing improved paddy seeds to the villagers at a very subsidized rate.

RSP is at present distributing good quality seeds to farmers residing in 15 villages of Bisra and Kuarmunda blocks and each of them is being provided with 30 kilogram of paddy seeds at a subsidized rate. Fertilizers are being given to them free of cost. The agricultural experts deputed by RSP will be visiting the cultivated lands regularly.

CCI asks SEBI to tighten listing agreement for listing

ET reported that Competition Commission of India has asked SEBI to make compliance with competition law mandatory for listing on stock exchanges. It has proposed amendments to clause 49 of the listing agreement dealing with corporate governance.

With the government also blaming cartelization for spiraling inflation, the CCI’s proposal, if accepted, may allow the government to target listed companies acting in a cartel. Once approved, the amendment would empower SEBI to de listing companies forming cartels. Also, amending the listing agreement does not need Parliament’s approval.

The proposal seeks inclusion in the clause 49 a compliance audit on competition law. If CCI’s proposal is accepted, the provisions of the competition law would gain authority as any listed defaulting company would stand in contravention of the SEBI norms, apart from provisions of the Competition Act.

Mr Vinod Dhall acting chairman of the Competition Commission of India said that apart from PSUs and private enterprises, government departments, barring ministry of finance, defense, atomic energy and space, fell under the definition of enterprises and hence could be probed upon.

Stressing the heavy penalty that could be imposed on guilty companies, which may extend to 10% of the cartel’s turnover or three times the profits out of that cartel, whichever is higher, he asked enterprises to be proactive in declaring their policy of not serving as a platform for market manipulations.

Quippo Infrastructure set to take 49% stake in TATA tower

It is reported that Quippo Infrastructure Equipment Limited of the SREI group is set to complete the purchase of a 49% stake in the cellular tower arm of TATA Teleservices by the end of June 2008.

Quippo Infrastructure is expected to pick up a 49% stake in TATA tower arm Wireless TATA Telecom Infrastructure Limited as it has a tower business and therefore, cannot compete with the TATAs. With close to 5,000 towers in its portfolio, Quippo is valued at INR 3,000 crore.

Mr Sunil Kanoria vice CMD of Quippo said that "We are very close to wrapping up the deal and hopefully all the loose ends will be tied up soon. The valuation has not been altered because of rising steel prices."

According to Mr Kanoria, Quippo plans to increase the number of towers to 10,000 by 2009. It has earmarked USD 3 billion for growth both through new facilities and acquisitions this year. Earlier in the year, it acquired the 875 towers of Spice Telecommunications across Punjab and Karnataka for INR 600 crore.

Mr Kanoria had earlier hinted that rising steel prices might lead Quippo to reconsider valuations but has dispelled such notions now.

Structural steel angles and plates contribute to around 60% of the cost of a tower, with the investment per tower ranging from INR 2.5 million to INR 4 million. Companies are now sharing around 25% to 30% of their networks, which is expected to go up.

Elecon Engg gears up for overseas acquisition

The Telegraph reported that Gujarat based Elecon Engineering Company is getting ready for an overseas acquisition and hopes to complete the deal in the next 6 to 9 months.

Mr Hemendra C Shah CFO & VP of Elecon said that "We have already started looking for acquisitions in the domestic and overseas markets and have appointed consultants for this purpose. We are getting some proposals but have not found a suitable company."

Elecon is keen on an US or a European gearbox manufacturer having an annual turnover of between INR 350 crore and INR 400 crore. In 2007-08, the material handling business booked orders of INR 1,234 crore, while the gearbox business obtained orders of INR 400 crore.

Mr Shah said that "As on March 31st 2008, we had a pending order book position of INR 1,085 crore for the material handling segment business and INR 202 crore for the gearbox division. During the current financial year so far, we have witnessed strong order inflows. Looking at the trend we expect to book orders between INR 1,700 crore and INR 1,800 crore in 2008-09."

He added that "We are also expanding our existing capacities both in the gearbox and material handling divisions. In 2007-08, we invested INR 82 crore in a windmill gearbox unit. In the current financial year, we have earmarked a capital expenditure of INR 120 crore for expanding capacities at material handling and gearbox facilities. We will have to consider an equity dilution through a second public issue to raise part of the fund we may need for capacity addition and overseas acquisition."

Bangladeshi barge sinks in Hooghly

BL reported that a Bangladeshi barge, carrying 700 tonnes of steel coils worth INR 4 crore, sank in the Hooghly river on its way to the Narayanganj inland port after it ran aground hitting an island at Noorpur in South 24 Parganas district.

Kolkata Port Trust sources said that MV Nilam had 11 people onboard, all of whom were rescued by the local people.

Mr Arun Roy director of Inland Water Authority of India said that efforts are on to salvage the cargo. He, however, expressed concern over the large quantity of barge fuel which spilled into the river, raising ecological concerns.

The crew members are confined to a boat throughout the day as the local agents of the shipping firm, MM Shipping Company, are looking for accommodation.

It may be noted that Bangladeshi crew members were not allowed onshore as they do not have passports. They enter Indian boundary with a temporary license from the Bangladesh Inland Water Transport Authority under an Indo Bangladesh bilateral trade norm.

TATA Power 2007-08 fiscal PAT up by 24.84% YoY

TATA Power Company Limited has announced its annual results for the financial year ended March 31st 2008.

TATA Power posted revenues of INR 5915.91 crore for the financial year ended March 31st 2008 up by 25.4% YoY as compared to INR 4715.32 crore in the financial year ended March 31st 2007. Profit after tax witnessed a growth of 24.84% YoY at INR 869.90 crore as against INR 696.80 crore.

TATA Power’s consolidated revenue rose by 68.18% YoY at INR 10,890.86 crore as compared to INR 6475.64 crore. The consolidated PAT for the year was recorded at INR 1055.07 crore up by 38.90% YoY as against INR 759.61 crore.

TATA Power unveils INR 25,000 crore CAPEX plan

BS reported that TATA Power Company is planning to invest INR 25,000 crore to boost its capacity by six fold to 12,800 MW by 2013. At present, it is implementing new power projects to the tune of 5,500 MW.

TATA Power, which produces about 2,400 MW currently, will set up a 1,000 MW coal fired thermal power project at Naraj Marthapur in Orissa, through a public private partnership. A 1,270 MW captive power project for TATA Steel will also come up at the same location. It will use coal from the Mandakini coal blocks in Orissa, which allotted the blocks jointly to TATA Power, the Jindal Group and Monnet Ispat, to boost power generation capacity in the state.

Mr Prasad R Menon MD of TATA Power said that about 1,500 acres are required for the project and it has begun the process of land acquisition.

Mr Menon said that "Apart from these projects, we will go for aggressive acquisition opportunities in Southeast Asian countries and other overseas markets as opportunities come across." He added that it will also bid for power projects in the domestic arena, including the upcoming ultra mega power projects.

At present, TATA Power is implementing projects with collective generation capacity of over 5,500 MW, including the 4,000 MW UMPP at Mundra in Gujarat, a 1,050 MW project at Maithon in a JV with Damodar Valley Corporation, a 250 MW expansion project at its Trombay unit that is expected to be commissioned by October.

Steelco Gujarat board recommends issue of preference shares

MyIris reported that the board of directors of Steelco Gujarat, at its meeting held on June 23rd 2008, has recommended the preferential issue of 12.5% non convertible cumulative redeemable preference shares on private placement basis to the promoters for the approval of members and other requisite authorities.

Incorporated in 1989, Steelco Gujarat is promoted by Ruias of the Essar group and the Chanderais of the Comcraft group. It manufactures and markets cold rolled steel coils and sheets, hot dip galvanized steel coils, and plain and corrugated sheets. Steelco Gujarat also manufactures secondary products such as trimmings, coil ends, skelp, baby coils, zinc flux, zinc dross and zinc ash. The company exports its products to 45 countries across the world.

Gangotri Iron & Steel delays results due to IT raids

Gangotri Iron & Steel Company Limited has informed BSE that it will not be able to publish its audited accounts for 2007-08 fiscal by June 30th 2008 as its files have been impounded by the IT Department in a recent raid.

A company press release said that "Consequently we are unable to present the audited accounts for the year ended March 31st 2008 before the board of directors by June 30th 2008. Hence we are unable to publish the audited financial results within the due date. However we are taking necessary steps to publish the financial results as early as possible."

It may be noted that a survey under Section 133A of the Income Tax Act, 1961 was conducted in its office premises at Patna and Kolkata on June 11th 2008 by the Income Tax Department. The department seized and impounded several books of accounts, documents, registers and computer hard discs of the company and the matter is still under investigation. It is yet to be provided copies of the documents and records impounded by the IT department.

Binani Cement looking coal assets in Indonesia

It is reported that Binani Cement Ltd is planning to acquire coal assets in Indonesia.

Mr Vinod Juneja MD of Binani Group of Industries on the sidelines of the AGM said that "We are negotiating to acquire coal assets in Indonesia. We are trying to acquire coal mines near ports.”

Mr Juneja said that besides acquiring coal mines, the company was also looking at long term contracts to source coal from South Africa to meet captive requirements.

Mr Juneja said that the company was open to spend up to USD 100 million in acquiring and developing mines.

Binani at present buys coal from Coal India and spot market. The step would help the company in reducing cost and have access to quality coal. Its current production capacity was 6.5 million tonne and was finalizing to raise the capacity to 13 million tonne in the next two to three years.

MEL to pay USD 25 million for 45% more stake in Lincoln

ET reported that Bangalore based iron ore miner Mineral Enterprises Limited is planning to shell out USD 25 million for an additional 45% stake in Australian firm Lincoln Minerals. The acquisition may spread over 5 to 6 months and will take Mineral Enterprises Limited’s holding to 50%. It is already in the process of acquiring 20% stake in Lincoln, which will make it the single largest shareholder of the mining group.

Lincoln Minerals, which also has interests in other metals, such as zinc, copper, uranium and gold, owns iron ore reserves of roughly 250 to 300 million tonnes.

Besides increasing stake in Lincoln, MEL will increase its interest in the firm’s gum flat iron ore exploration project to 50% by pumping in additional USD 2 million. In August 2007, ME Australia, a wholly owned subsidiary of MEL, had entered into a JV with Lincoln Minerals. Under which it had acquired mining rights for 40% of the iron ore deposits, which required investments worth USD 2.5 million.

It is also learnt that MEL, which also has interests in power, infrastructure and bio diesel, is aggressively scouting for acquisitions of coal reserves in South Africa and Indonesia. It is even looking at setting up a pellet plant in either China or Malaysia.

Anti POSCO movement gets stronger in Orissa

SNS reported that the Orissa opposition parties, Congress, NCP, JMM and Samajvadi Party, have jointly pledged their support to the anti POSCO movement and also declared a war against Mr Naveen Patnaik government sponsored loot of mineral wealth by MNCs in the state.

Addressing a public meeting organized by POSCO Pratirodh Sangram Samiti, top leaders of these parties Mr AB Bardhan, Mr Umesh Swain, Mr Prasanta Nanda, Mr Arabinda Dhali, Mr Kailash Mishra, Mr Narayan Reddy, Mr Rajendra as well as social activists like Mr Gananath Patra, Mr Prafulla Samantra and Mr Lingaraj Mishra delivered fiery speeches. They charged that the government and the MNCs have together decided to plunder the state, ride rough shod over people, crush them by unleashing brutal police force.

Paying homage to Mr Dula Mandal, a PPSS activist who had died in a bomb attack a couple of days ago, Mr Bardhan said that he is the first martyr for the anti POSCO cause. He added that "Goons engaged by money bags were responsible for the attack on villagers."

The leaders urged upon PPSS activists and villagers to maintain peace and desist from getting provoked by such acts of violence. They added that "Your peaceful resistance movement over the last 3 years needs to be carried forward till the cancellation of the MoU between POSCO and the Mr Naveen Patnaik government. Violence will provide undue advantage to the government."

They also criticized the CM for his ignorance about agriculture and betel vine cultivation. They alleged that neither the CM nor his government understands this, their one point agenda is to sell land, sell minerals and oust people to appease the rich.

NCP leader Mr Prasant Nanda said that "The state government has been playing with the lives and livelihood of people across the state be it Kalinga Nagar, Sambalpur, Dhenkanal or Jagatsinghpur. The CM heads the police administration and unleashes it on people protesting the government's atrocities. The Black Week being observed by the PPSS to coincide with the 3rd Anniversary of the MoU between POSCO and the state government is the last as neither the company nor the BJD BJP government will be there when the time for the 4th anniversary comes."

Heavy rainfall and flood affected freight operations

It is reported that South Eastern Railway and East Coast Railway are really in a bad shape these days. Heavy rainfall and the consequent flooding in certain areas of West Bengal and Orissa have dealt a severe blow to rail movement on several routes under their jurisdiction.

As per report, the running of trains on the mainline, between Kharagpur and Balasore, having been suspended because of breaches on the railway track, most passenger trains on the Howrah Bhubaneswar Chennai route have been cancelled. Attempts are being made to run some trains via Rourkela and Jharsuguda but such diversion is not easy.

On the freight front too, East Coast Railway particularly has been hard hit. The transportation of coal and fertilizers, both imported through Paradip and Visakhapatnam ports, has been affected. Several power houses and aluminum plants depending on Talcher coal are facing a crisis. Attempts were made to load coal at IB Valley mines and transport them to the starving power houses, but without much success.

Chinese firm bags mega road project

Mr Prem Kumar Dhumal chief minister of Himachal Pradesh recently launched an ambitious INR 1,365.43 crore state road project under which 435 kilometers long state highways and major district roads will be upgraded and 2,000 kilometers long roads will be maintained periodically.

The state government has awarded the entire road construction and up gradation contract to a Chinese construction firm for the first time ever. The name of the Chinese company has not been disclosed.

Mr Dhumal said that the Chinese company would complete the state road project by 2012. The project will be implemented in four phases. He added that his government was grateful to the World Bank for its financial support which helped launch the road project.

Mr Gulab Singh Thakur state PWD minister said that the mega road project would herald global standard road construction works in the state. He mentioned that efforts were afoot to connect villages with a population of 250 with motorable roads by 2012 while villages with population of up to 500 would be connected by 2009.

Rane Brake Linings launches new facility at Trichy

Projects Today reported that Rane Brake Linings has opened a new INR 60 crore manufacturing facility at Trichy in Tamil Nadu on June 13th 2008.

Rane Brake said that the unit will produce 10 million units per year and will increase the company's total disc brake pads manufacturing capacity by 160%. Set up in technical collaboration with Nisshinbo Industries Inc of Japan, the Trichy unit will be India's most modern asbestos free disc pad plant in India.

The Trichy plant is its fourth facility besides units at Chennai, Hyderabad and Puducherry.

Established in 1964, Rane Brake Linings makes brake & clutch friction products including brake lining, disc brake pads, clutch facings, railway brake blocks etc that find application in automobiles and Indian Railways.

J&K to finalize INR 300 crore steel plant by SAIL

Project Monitor reported that nodal agency Jammu & Kashmir State Industrial Development Corporation and Steel Authority of India Limited are soon likely to finalize the terms of SAIL's proposed INR 300 crore plant in the state.

A senior official of Jammu & Kashmir State Industrial Development Corporation said that the project contours will be discussed at the high level meeting. The proposal will then be sent to the state and central governments for approval. He added that "The land has not yet been handed over."

Although the project details are yet to be finalized, it is learnt that SAIL is keen to invest INR 300 crore in setting up a steel processing plant. SAIL's Rourkela Steel Plant in Orissa will implement the project.

The steel ministry was keen to start work on the project last month, but maintained that the state pollution control board has yet to give a no objection certificate.

Reacting to this, a highly placed official in Jammu & Kashmir Pollution Control Board said on conditions of anonymity that SAIL has not yet approached the board with its formal application. The plant will need an NOC during construction and another before commercial production starts. The official added that "The clearance will be issued as soon as the formal application is made."

Jammu & Kashmir State Industrial Development Corporation is very upbeat on the prospects of a steel processing centre in the state, both in terms of employment opportunities and the covenant socio economic uplift. The plant will provide direct and indirect employment to 500 persons.

Mr TR Baalu reviews performance of Kolkata Port Trust

Mr Thiru TR Baalu union minister of shipping, road transport & highways has reviewed the working and performance of the Kolkata Port Trust and directed the port authorities to take expeditious steps for revalidation of the proposed River Regulatory Measures Scheme by Central Water Power Research Station, in addition to the short term measures to improve the draught at the port.

Kolkata Port Trust, which has handled the highest number of vessels among the Major Port Trusts, is taking up a number of projects under the National Maritime Development Program for augmenting its capacity and has recently commissioned two new berths No.2 & 13 at a cost of approximately INR 87.00 crore. It is, however, constrained by the problems relating to the draught availability in view of the siltation of the channel on River Hooghly.

Kolkata Port, in order to maintain the channel depth, is intensifying its maintenance dredging works. However, in case it is allowed to do dumping of the dredged material at the shore itself, the productivity of the dredgers would go up substantially as they would not have to go to distant dumping sites for dumping the dredged material.

Mr Baalu said that the acquisition of land at Jellingham for this purpose is required to be expedited by the West Bengal government and he would be writing to the state chief minister in this regard. He added that he would also be taking up the matter of the state government granting permission for allowing social impact assessment of the acquisition required for Diamond Harbor Container Terminal Project.

It may be mentioned here that the feasibility report of the Diamond Harbor Container Terminal Project is completed. The construction of container handling jetties at Diamond Harbor is being planned in terms of the recommendations of the high powered committee set up by the ministry. This would enable vessels to avail of higher draught in the navigable channel and also result in reduction in freight costs and turn around time of vessels.

Maharashtra Seamless bags USD 45 million export orders

PTI reported that Maharashtra Seamless has bagged export orders worth USD 45 million from a US firm.

A Maharashtra Seamless official said that "Export of seamless pipes is a big thrust area particularly in the US market, as there has been a massive rise in exploration and drilling activities worldwide owing to rising crude oil prices."

Maharashtra Seamless is already in active discussion with global oil and gas companies like Aramco and Shell International for its mill registration for further market penetration in exports. It has also bagged orders worth INR 86 crore for supply of pipes for the Chennai Bangalore pipeline project from IOCL.

The total order book position of the company stands at INR 550 crore for seamless pipes and INR 100 crore for electric resistance welded pipes.

SCI 2007-08 fiscal net profits down by 19.7% YoY

Shipping Corporation of India has posted a nearly 13% YoY drop in net profit for the January to March 2008 quarter at INR 248.69 crore as against INR 284.65 crore for January to March 2007 quarter. Total income stood at INR 1,177.44 crore up by 8.89% YoY as against INR 1,080.56 crore.

For the whole year, its net profit was INR 813.90 crore down by 19.7% YoY as against INR 1,014.58 crore in the previous year, while its income was INR 4,084.36 crore dips by 2.9% YoY as against INR 4,210.36 crore.

Billet and wire rods FOB Black Sea prices strengthen last week

In USD FOB Black Sea

(Sourced from www.steelprices-india.com)

Ship plate cuttings and scrap up by 5% in last week

Ship plate cutting 1”
Location – Alang

Price is in INR per tonne
Price is inclusive of ED and VAT

Ship mixed scrap
Location - Alang

Price is in INR per tonne
Price is inclusive of ED and VAT

(Sourced from www.steelprices-india.com)

HMS prices on increasing trend in Mumbai and Chennai

Price is in INR per tonne
Price is inclusive of ED and VAT

(Sourced from www.steelprices-india.com)

Sponge iron prices in Chattisgarh surge by 9% last week

Location - Raipur

Price is in INR per tonne
Price is inclusive of ED and VAT

(Sourced from www.steelprices-india.com)

POSCO to go solo as Vinashin drops steel JV plans

Reuters reported that Vietnam's state run shipbuilder Vinashin has cancelled plans to invest USD 1 billion in a USD 5 billion steel venture with South Korea's POSCO sending shares in the world's fourth largest steel maker down 3%.

The decision, part of Vietnamese government efforts to cut spending to reduce inflation running at 25% is an additional blow to POSCO, which has seen a USD 12 billion plan to build steel mill in India delayed by frequent protests.

A POSCO spokesman told Reuters the company would proceed with the steel mill plan on its own.

In January, Vietnam approved POSCO's proposal to build the steel mill in Van Phong Bay, near the south central resort town of Nha Trang, raising environmental concerns in one of Vietnam's most beautiful bays.

POSCO said earlier this year it aimed to start construction of the plant, which will have annual output of 4 million tonnes next April.

Vietnam plans to increase export duty on billet

According to a local Vietnamese newspaper, the Ministry of Industry and Trade of Vietnam is planning to persuade the government to raise its export tax to secure domestic production of steel billet.

The move is due to domestic producers exporting the extremely important billet to South Korea, Malaysia and Thailand, at a level reaching 100,000 tonnes. In addition, it has caused domestic projects to fall behind schedule.

The demand for billet in this country is estimated to be around 4 million tons in 2008 and Vietnam Steel Association worries that the export of steel billet might result in shortages for the domestic market.

(Sourced from YIEH.com)

ASI named as Essar Steel Algoma Inc

In commemoration of the first anniversary as a member of the Essar Group, Algoma Steel Inc announced they have officially changed their company name to Essar Steel Algoma Inc.

The announcement is paired with the launch of a new corporate brand for all member companies of Essar Global. The new logo features a stylized plus sign symbolizing the company’s commitment to creating value through the power of positive action.

Reflecting on the significance of the new identity, Mr Armando Plastino COO of Essar Steel Algoma said that “The new image reflects our new reality as a division of Essar Steel Holdings Ltd. It opens doors for Algoma on the global stage to the benefit of our customers, our employees, our suppliers and indeed, the community in which we operate."

He said that "Essar’s commitment to grow this operation to 4 million tons is indicative of the kind of sustainable value that comes from having a professional, entrepreneurial, multi-national conglomerate behind you. By incorporating ‘Algoma’ in our new name we preserve the rich history and geographic significance that comes from over 100 years of steelmaking.”

Kobe Steel to expand high grade bar and wire rod output by 6%

JMB reported that Kobe Steel plans to increase the special steel bar and wire rod output by 6% to 2.25 million tonnes in fiscal 2008 started April from fiscal 2007. The output will increase by 11% or 250,000 tonnes during 3 year plan from fiscal 2006-2008.

Kobe Steel also tries to improve the high grade products business in volume and quality to meet growing demand mainly for automobile.

SKW Stahl signs 10 years supply agreement with ThyssenKrupp

SKW Stahl Metallurgie GmbH, a wholly owned subsidiary of SDAX listed SKW Stahl Metallurgie Holding AG, announced that it has signed an agreement for a ten year supply agreement for carbide based desulfurization mixes with ThyssenKrupp CSA. In this connection, SKW Metallurgie will supply the steel group's Brazilian plant, which is currently being built.

SKW Metallurgie will build its own plant for the production of carbide based desulfurization mixes in the direct proximity of ThyssenKrupp in the Rio de Janeiro region.

The agreement covers at least 75% of ThyssenKrupp CSA's annual CaD requirements in Brazil. The start of production is scheduled to parallel the steel plant going live in 2009.

A close, successful strategic alliance has linked SKW Metallurgie and ThyssenKrupp through many years for the supply of the steel group's German production facilities. SKW Metallurgie will enter into a joint venture with a South American supplier for raw materials to secure the supply of raw materials for this key account.

Korea Dongkuk to hike SBQ plate prices

It is reported that South Korean Dongkuk Steel plans to hike its domestic price of SBQ plates.

AS per report, currently its domestic price of ship plate is around USD 986 per tonne.

The report added that the main reason is the surge in slab prices.

(Sourced from YIEH.com)

JFE Steel honored for global ICT excellence award

JFE Steel Corporation announced that its proprietary system, JFE Strategic Modernization and Innovation Leading System has been honored by the World Information Technology and Services Alliance with its 2008 Global ICT Excellence Award, the top prize in the IT industry.

WITSA is an international consortium comprising IT industry associations from 71 countries or regions around the world; its members represent over 90% of the global IT market and the Japan Information Technology Services Industry Association represents Japan. As the global voice of the IT industry, WITSA actively promotes the industry’s growth and development by hosting the biennial World Congress on Information Technology and recognizing the world’s best IT users. Candidates for the Global IT Excellence Award are nominated and selected by member associations.

J-Smile earned JFE the 2008 Global ICT Excellence Award in the private sector category during the WCIT 2008 awards ceremony at Kuala Lumpur in Malaysia on May 20th 2008. The Private Sector IT Award is bestowed on companies that have made innovative use of Information and Communication Technology to enhance competitiveness and customer satisfaction and improve performance.

Chung Hung Steel expects higher steel price

Although Taiwan Chung Hung Steel there are no reasons for iron ore or steel prices to plunge. CHS said that “So far, steel demand is still strong and the price for raw material keeps rising, supporting high steel prices.”

CHS’s hot roll coil price is currently about USD 970 to USD 980 per tonne which is not only lower than the global price level, but also lower than the price level in Taiwan’s domestic market. Accordingly, it expects that its July price will rise again.

CHS also said this is a seller's market now, and steel price for the fourth quarter should be raised again or at least remain the same.

(Sourced from YIEH.com)

ArcelorMittal Shelby increases seamless tube price

US ArcelorMittal Shelby Tubular announced to increase its base price for cold drawn, carbon and alloy seamless tubing effective from July 13th 2008 shipments.

Consequently the price for cold drawn carbon tubes will increase by USD 160 per short ton while cold drawn alloy tubes will up by USD 200 per short ton.

The main reason is that the cost of raw material, scrap, freight and energy is continuing to increase, according to the company.

(Sourced from YIEH.com)

Japanese domestic scrap prices to soar

Japan's domestic prices of scrap continue to raise while scrap export market slows down. The oversea buyers, such as Taiwan, hesitate to buy scrap from Japan. However, South Korea became the main buyer of Japanese scrap.

Tokyo Steel Mfg Co has increased its scrap purchase price towards its 4 mills which has caused the H2 scrap price to lift at JPY 68,000 per tonne.

In South Korea, due to current strike, all the imported scrap from Japan has been held up at the harbor port. Meanwhile, POSCO has started an auction for Japanese scrap, and the bid price has reached at JPY 76,000 per tonne CFR. Hyundai Steel has purchased scrap from Japan at JPY 73,000 per tonne on FOB basis.

Italy facing tight supply of billet

It is reported that Italian long product producers are facing great pressure due to the seriously tight supply of steel billet and at present it is very hard to get the source supply to maintain the daily output production level.

The reason is that in North Africa, the Persian Gulf, the Middle East and CIS areas, steel consumption levels have soared. Therefore, mills have decreased their exports because they prefer to supply their own semi finished product to domestic market for further processing rather than export product to foreign markets.

Italy’s long product producers said that their profit has dropped because of a combination of tight supply of billet and weak demand.

G Steel to meet global investors - Report

Reuters reported that Thai steel coil maker G Steel plans to meet investors in Asia and London but the meetings are not related to any specific deal, a source with direct knowledge of the plans said on Monday.

However, the planned meetings come amid speculation the company could be considering a bond sale, after it said in a filing in late May it planned to sell up to USD 300 million of baht and dollar denominated bonds to refinance debt.

A source said that G Steel will meet with investors in Hong Kong on Tuesday and Wednesday and in Singapore on Thursday and Friday. He added that the steel maker will travel to meet investors in London on July 10 and July 11th 2008.

Moody's last week revised its ratings outlook on G Steel to negative from stable, citing risks related to refinancing debt and its plans to raise production capacity by the end of 2009.

Goldman Sachs adds US Steel to conviction buy list

Goldman Sachs said that it added United States Steel Corp to its conviction buy list and raised its price target on the stock, saying it expects significantly higher near term earnings potential for the steelmaker given its leverage to steel prices and an increase in oil country tubular goods prices.

US Steel replaces Nucor Corp on Goldman's conviction buy list, as Nucor has underperformed the steel sector so far this year. However, the brokerage maintained its buy rating on Nucor based on its attractive price.

Goldman also raised its price target for US Steel to USD 228 from USD 210. The brokerage said it expects rising steel prices to be sustainable as growth in world demand should exceed supply for several years.

It said that US Steel's plan to increase the price of oil country tubular goods more than 25% should boost revenue by about USD 1 billion.

Recession reports – South Korean inflation rate hits 7 year high in May

A Korean government report showed that Korea's consumer prices grew at the fastest pace in seven years in May on higher prices of energy and other commodities, breaching the central bank's inflation target range for a sixth straight month.

According to the National Statistical Office, the consumer price index jumped 4.9% in May from a year earlier. May's annual inflation was the highest since a 5% gain in June 2001. It was also up 0.8% from a month earlier.

Mr Jeon Min kyu an economist at Korea Investment & Securities said that "Inflationary pressure seems to be stronger than had been expected as higher commodity costs and a weak local currency are driving up prices. The data might hurt consumer sentiment, leading to a decrease in domestic demand, which is a key growth engine for the nation's economy."

The Bank of Korea also sets its inflation target range at 2.5% to 3.5% and the Finance Ministry is pushing to keep the inflation rate below 3.5% for this year.

South Korea's economy, Asia's fourth largest, grew by 0.8% in the first quarter of this year, the slowest quarterly expansion since the fourth quarter of 2006, on sluggish domestic consumption and corporate spending. The BOK forecast that the economy will grow 4.7% in 2008 down from a 5% expansion in 2007. The government aims to achieve growth of some 6% but it recently admitted that the economy has reached its peak and is now entering a downward phase.

POSCO to hike steel prices by up to 21% in July

Reuters reported that South Korea's POSCO would raise steel prices by up to 21% to absorb higher raw material costs and bring its prices closer to international levels.

POSCO said that it would raise prices of hot rolled and cold rolled steel products by 21% to KRW 850,000 and KRW 950,000 a tonne respectively, beginning July 1st 2008. It will also raise prices of ship plates by 17% to KRW 920,000.

POSCO in a statement said that "The move is to reflect expected increases in raw material costs in the second half as Australian miners are demanding 20 percent more than we had expected for the supply of iron ore.”

Nakheel planning tallest tower in world in Dubai

MEED reported that Nakheel is finalizing plans for the world's tallest tower in Dubai. The scheme involves constructing a 1.4 kilometers tall tower next to the Ibn Battuta Mall in the Jebel Ali area.

The Tall Tower project had involved plans for a 1,050 meter tall building, but it is understood these designs have now been revised upwards to make it the tallest skyscraper in the world. At 1.4 kilometers, it is almost double the height of Emaar's Burj Dubai, which is expected to reach about 815 meters and several hundred meters taller than rival towers in Kuwait and Saudi Arabia.

A spokesman for Nakheel confirms designs for the tower are being finalized and says a launch is expected this year.

Earlier designs for the project showed a building with 228 floors, a four level basement and one service sub level, a total built up area of 1.49 million square meters with 492,000 square meters of useable space.

The tower will house offices, apartments and hotels. In the original 1,050 meter design, the highest habitable floor was at 850 meters, topped by a 200 meter central spire with a three level function area and three service floors.

Work has started on changing the layout of the mall ahead of the proposed expansion, which would double its existing retail area to 250,000 square meters by building retail space over existing parking areas between the mall and the metro. The expansion will also include entertainment attractions and a roller-coaster on top of the mall.

The project is just one of several skyscraper projects under development in the Gulf that could claim the title of the world's tallest building.

(Sourced from MEED)

Saudi Arab ready to pump more oil

Mr Ali Al Naimi Saudi minister of petroleum & mineral resources said that Saudi Arabia may increase its oil production beyond a planned 200,000 barrel a day increase in July 2008 if the oil market requires extra supplies.

Mr Al Naimi said that "I would like to state that for the remainder of this year Saudi Arabia is prepared and willing to produce additional barrels of crude oil above and beyond the 9.7 million barrels per day which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed." He added that the Kingdom’s capacity will be 12.5 million barrels a day by the end of 2009 and may rise to 15 million after that if necessary.

He said that Saudi Arabia has identified a series of future crude oil mega increments totaling another two and a half million barrels per day of capacity that could be built if and when crude oil demand levels warrant their development. He added that "Among these prospective programs are a 900,000 barrel per day increment in Zuluf, a 700,000 barrel per day increment in Safaniyah, 300,000 barrel per day increment in Berri, 300,000 barrel per day increment in Khurais and a 250,000 barrel per day increment Shaybah."

GCC to invest USD 200 billion in energy projects – Gulf Bank

According to the latest report on world growth issued by Gulf International Bank, GCC countries are to invest between USD 160 billion and USD 200 billion in 14 to 20 energy projects.

The report said that the growth of the 6 GCC countries is expected to remain within the world growth rate, due to the USD 132 billion current account surplus and that they have already started playing an increasingly major role as exporters of capital for emerging countries estimated at USD 30 billion, with more cash to be pumped into the region from the GCC countries.

According to the bank's report, recent reports on the solar energy industry found that solar energy accounts for only one per cent of the world's energy resources, today, while the rise of energy prices to record highs, coupled with the lack of signs of stability, seems certain to increase investment in this sector by approximately 50% within 2 years. It added that the move towards sustainable and renewable energy sources is gaining momentum in GCC countries and throughout the world, as countries try to secure alternative energy resources to fuel other related projects, such as building water desalination plants and supplying power to developing areas.

Dr Abdullah Al Amiri chairman of the Emirates Energy Award said that "The US mortgage market woes did not spread to the GCC markets, while the fuel prices are still soaring on the global markets. The high amount of liquidity injected into the region will secure the market against any slump. The foreign reserves available in the market, estimated at USD 455 billion in 2008, up from USD 365 billion in 2007, will further defend the market against any fall."

The report also indicated that GCC countries can safely invest in the energy sector as there is an increasing global trend to raise investment to cover the USD 40 billion required in the petrochemical sector by 2010. GCC petrochemical production contributed seven per cent to the world's total production.

Takamul Investment forms 70:30 JV with Future Metals

Oman Daily reported that a 70:30 JV agreement involving Takamul Investment and Future Metals Private Limited promises to boost the growth of Oman's nascent aluminum downstream processing industry.

The agreement covers the establishment of an aluminum rod extrusion plant at the Sohar Industrial Estate using hot metal from Sohar Aluminum's newly operational USD 2.4 billion smelter.

Oman is also developing a downstream aluminum park within Sohar, which is earmarked exclusively for projects that will utilize hot metal from the giant smelter. Sohar Aluminium has pledged up to 60% of its total liquid metal output of its 350,000 tonnes a year for downstream industries.

Aluminium based downstream projects in Sohar are expected to generate around 1,000 direct jobs, as well as create business opportunities for local entrepreneurs, according to Takamul Investment, which partners a majority of the downstream ventures.

SABIC and Sinopec to form 50:50 petrochemical JV in China

Reuters reported that Saudi Basic Industries Corporation and China's Sinopec Corporation will spend USD 2.5 billion on an expanded petrochemicals project in northern China. The original plan for the 50:50 JV had given its cost as USD 1.7 billion.

The project's cracker capacity was planned at 1.2 million tonnes of ethylene a year, larger than the figure of 1 million tonnes given in January 2008. The project would also be expanded to include polycarbonate among its downstream plastics slate.

A pact for the project in north China's Tianjin was also signed during Chinese VP Mr Xi Jinping's visit to Saudi Arabia over the weekend. The agreement, which follows a deal announced in January 2008, also called for cooperation in future projects in China and joint works in engineering services and product marketing. The Tianjin plant will produce 4 million tonnes of petrochemical products including the 1.2 million tonnes of ethylene.

SABIC officials said that "SABIC plans to set up a manufacturing center in China to boost its presence in Asia where China represents the biggest market in the Asian continent."

Sinopec has started building the complex in the port city near Beijing. It is also expanding a refinery to 240,000 barrels per day at the same site, which industry executives said SABIC will not be involved in.

Saudi Arab awards 900 kilometers long fence deal along Iraqi border

MEED reported that a JV of Al Rashid Trading & Contracting Company and the European Aeronautic Defense & Space Company has won the SAR 3.4 billion contract to build a 900 kilometers long security fence along Saudi Arabia's northern border with Iraq. The JV received a letter of intent in mid June 2008 from the interior ministry and expects to sign the contract in July 2008, with site mobilization due imminently.

The contract covers two packages of work that the ministry had considered offering as 2 separate contracts. It had asked firms to bid for the separate packages. The first package covers the 900 kilometers, double lined fence and includes surveillance equipment, watch towers and electronic gates. Package two covers the civil works, including command centers, training centers and accommodation for border guards.

The original bids were submitted in October 2007, with the expectation that a contract would be awarded by the end of the year. However, the decision was delayed by the proposal to split the contract because of the rising cost of raw materials, which has increased the level of risk for bidders. The delay was also due to Riyadh seeking to standardize the systems it uses across a wider proposed network.

The northern border fence forms part of a multi billion dollar project by the interior ministry to install a radar based system for detecting incursions along the entire length of the kingdom's 6,500 kilometer border.

Other firms that bid for the northern border fence contract include the local Al Arab Contracting Company and the local Al Mabani with the US' Raytheon. El-Seif formed a consortium with the US' DRS technologies for its bid.

(Sourced from MEED)

Emaar EC signs agreement with City Cool for cooling system

It is reported that Emaar Economic City has signed an agreement with City Cool Company to own, build and operate 2 cooling stations to meet the cooling requirements of the residential and commercial buildings within Bay La Sun Village.

Mr Fahd Al Rasheed CEO & board member of Emaar EC has signed the contract with Mr Ibrahim Al Rajhi chairman of City Cool Company. With an investment of SAR 650 million, the agreement covers the setting up of 2 cooling stations, managing the operations for 25 years, building all the cooling supply network and heating switch machines, and overseeing the billing system.

Mr Al Rajhi said that "We are delighted to be awarded the District Cooling contract to be implemented as a build own operate system for the prestigious Bay La Sun development. With our technical expertise in providing District Cooling solutions, we are confident that we can design and deliver a state of the art system to meet the requirements of this turnkey project, while ensuring that it has the best life cycle value."

Mr Al Rasheed said that "The first and fully integrated community in KAEC, Bay La Sun Village is setting new trends in adopting advanced construction standards. Emaar EC is bringing in the newest systems that complement the overall development plan of KAEC to be the region’s first Smart City. Our contract with City Cool Company, which has proven competencies in developing and managing advanced cooling systems, reiterates our commitment to create modern lifestyles."

Mr Akram Jawah CEO of Emaar EC said that "As per the agreement, City Cool System will roll out one of the most advanced and environmental friendly cooling systems that will cut electricity consumption by up to 40% and reduce the load on the electricity network during the peak hours. Energy management is one of the priorities of modern buildings and the advanced cooling system to be employed at Bay la Sun Village highlights Emaar EC’s commitment to sustainable development practices."

KAEC is the single largest private sector led project in the region to be spread over 168 million square meters on the Red Sea coast and has 6 key components namely the Sea Port, Industrial Zone, Central Business District, Resort District, Educational Zone and Residential Communities. Work is progressing according to schedule on the various zones that have been launched to overwhelming investor response.

Saudi Aramco inks 62.5:37.5 JV pack with Total

It is reported that Saudi Aramco and Total has signed the shareholders agreement and other core agreements for the establishment of their JV, the Jubail Refining and Petrochemical Company. The signing of these agreements in Jeddah by Mr Abdallah S Jum’ah president & CEO of Saudi Aramco and Mr Christophe de Margerie CEO of Total marks an important step for the planned construction of this 400,000 barrel per day world class, full conversion refinery in Jubail.

Mr Jum’ah said that "The Jubail refinery reflects the leadership of Saudi Aramco and Total in our strategic alliance to address the existing mismatch between refinery infrastructure and types of crude oil on the market, and the resulting tightness in the refining sector. It also demonstrates our commitment to increase capacity to meet various global markets’ needs for refined products."

Mr de Margerie said that "The Jubail refinery project is a brilliant example of a strong strategic partnership with a major oil producing country. Together, Saudi Aramco and Total will contribute to supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle East, but also in Europe where the demand for diesel and jet fuels continues to grow."

Following the signing of the agreements, the Jubail Refining and Petrochemical Company will be formed during the third quarter of 2008. Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%. Subject to required regulatory approvals, the parties are planning to offer 25% of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5% ownership interest. Saudi Aramco and Total will share the marketing of the refinery’s products.

The refinery will benefit from its proximity to the Arabian Heavy crude supply system and from the excellent facilities of the Jubail Industrial City such as King Fahad Industrial Port, power and water grids, and residential areas.

No shortage of oil supplies – Qatar

Mr Abdullah bin Hamad Al Attiyah Qatar’s deputy premier and minister of energy & industry said that the world oil market is well supplied and there is no need to raise output.

Mr Al Attiyah said that "As producers, we affirm that there is no shortage of supplies and sometimes production exceeds consumption. The question is the world facing a supply crisis and the answer is no. I think so far the supply is very efficient. We have a lot of customers that we checked with them and they believe that they are not in a position to buy more oil."

Mr Al Attiyah said that producer countries alone could not control the market and high oil prices and urged Europe to cut energy taxes. He added that "Producers cannot control the oil market and high oil prices ... which are driven by speculation, geopolitical factors and other. Europe should cut energy taxes."

Iran and Korea to develop South Pars gas fields – Report

IRNA reported that a contract was signed on commissioning phases 9 and 10 of South Pars Gas Field between South Pars Gas Complex Company and South Korean Company GS.

Upon the contract, the Korean company will participate in pre commission and commissioning operation in the 9 and 10 phases.

Mr Homayoun Shokouh Saremi MD of South Pars Gas Complex Company expressed hope that upon cooperation, the produced gas from the phases can enter into the consumption market this winter.

NISOC to boost Azadegan oilfield output to 170,000 BPD

Mehr News Agency reported that National Iranian Oil Company board of directors has approved the plan to raise Azadegan oilfield’s daily production from 20,000 barrels to 170,000 barrels.

Mr Gholam Reza Hassan Beiglou MD of National Iranian South Oil Company said that "First phase of Azadegan oil field’s early production plan has been completed and at present the field’s average production capacity is about 15,000 to 20,000 barrels per day. Oil exploitation from 6 wells, repairing the equipment, completion of the wells, laying pipelines to the length of 190 kilometers and installing two oil and gas separators are among the plan’s technical operations."

Azadegan oil field is one of the NIOC recent discoveries and constitutes one of the biggest oil fields discovered in the world in the past thirty years. The field holds 33.2 billion barrels of oil in place and 5.2 billion barrels of recoverable reserves. The first exploration well was drilled at the field in 1976, but its discovery was finalized after drilling the second well in 1999.

The field has an approximate area of 900 square kilometers. Sarvak, Kazhdomi, Godvan, and Fahilan are productive layers of the field. Crude oil produced by Fahilan layer is light while other layers yield heavy crude.

Aramco orders 10 ships to boost offshore activities

MEED reported that Saudi Aramco has ordered 10 new tugs, supply and safety ships to assist with its offshore operations. The contract to deliver the vessels has been awarded to Zamil Operations & Maintenance Company.

As well as enhancing Aramco's offshore capabilities, the Industrial Services Organization which placed the order for Aramco, is also keen to boost the kingdom's industrial manufacturing capability with the deal. The ISO has also revealed plans to establish a maritime academy in Dammam, training locals to develop a new workforce qualified to work at sea.

Four of the ships are to be built by Saudi shipbuilders at King Abdulaziz Port in Dammam.

(Sourced from MEED)

Saudi Arab announces USD 1 billion energy initiative for poor countries

Arab News reported that King Abdullah of Saudi Arabia has announced a USD 1 billion energy initiative for poor countries and Saudi Arabia’s decision to allocate USD 500 million in soft loans to help developing countries carry out energy and other projects.

Opening a conference of oil producers and consumers at the Jeddah Hilton, Mr Abdullah blamed speculators, high fuel taxes and increased consumption by developing economies for soaring oil prices. He added that "We are ready to meet additional energy requirements of world markets in the future."

He also urged developed nations and OPEC to join the Kingdom in an effort to soften the effects of soaring prices on the world’s poor.

Mr Abdullah said that "The Kingdom’s oil policy since the establishment of OPEC has been based on adopting a fair price for petroleum in a manner that does not harm either producers or consumers. We have been keen on preserving the interests of the entire world as we are keen on preserving our national interests, and because of that policy we have faced many attacks and we have endured some harm because of that."

He also called on OPEC’s Ministerial Council to commit USD 1 billion to a parallel initiative and he pledged Saudi Arabia’s unflagging support for both efforts. He also took immediate action on behalf of the Kingdom.

Erdemir announces price hikes on strip products

Turkey’s integrated flat steel producer Erdemir has announced increases of USD 100 to USD 120 per tonne on strip products with effect from June 21st 2008.

Turkey to supply 1.2MT of steel every month to Bahrain

Akhbar Al Khaleej reported that Turkey has agreed in principle to provide Bahrain with 1 to 1.2 million tonnes of steel every month. It also expressed readiness to provide Bahrain with cement and other building materials.

Dr Hassan Fakhro Bahraini industry & commerce minister met Turkish ministers and senior officials, cement exporters and steel manufacturers.

Abu Dhabi steel prices in April 2008 up by 20% MoM

According to data from Abu Dhabi Department of Planning & Economy, steel prices in Abu Dhabi soared by more than 20% MoM in April 2008 as the rising cost of building materials fuels inflationary pressures across the Gulf.

It added that building material suppliers are struggling to keep up with demand as the United Arab Emirates witnesses a construction boom buoyed by a near 7 fold rise in oil prices since 2002.

In Abu Dhabi, the cost of flat steel from Turkey rose by 28.9% in April 2008 to AED 4,450 per tonne as compared with AED 3,450 per tonne in March 2008. Flat steel prices soared by 58.9% YoY as compared with April 2007. The price of other varieties of steel also climbed in April 2008, with angled steel from Korea surged by 36.6% MoM from March 2008 to AED 4,400 per tonne.

India, Pakistan and Iran to hold gas pipe talks in July

PTI reported that officials from India, Pakistan and Iran are to meet in July 2008 at Tehran to take forward the USD 7.6 billion project to pipe Iranian gas to the South Asian nations.

Mr MS Srinivasan union oil & petroleum secretary of India said that India is insisting on gas delivery from Iran at the India Pakistan border. He added that the stated position of Iran as of now has been that they would deliver the gas for both the countries at Iran Pakistan border.

Mr Srinivasan also said that there would be no extension of the deadline for bids for its latest oil and gas asset licensing beyond the end of June 2008. The deadline had been extended 3 times already, the latest being in May 2008.

India had missed a meeting in September 2007 citing issues with Pakistan, which triggered a pledge from Iran and Pakistan to press ahead without Indian participation.

India and Pakistan are keen to tie up future energy supplies to fuel their fast-growing economies, but the United States has tried to discourage any deal with Iran in the past, because of Tehran's suspected ambitions to build nuclear weapons.

Work on the pipeline is likely to begin in 2009 and could be finished by 2012. It would initially transport 60 million cubic meters of gas daily to Pakistan and India. The pipeline's capacity would later rise to 150 million cubic meters.

ADPC inks MoU with Borouge to provide port services at Khalifa Port

Abu Dhabi Ports Company has signed a MoU with Borouge to provide port services at the planned Khalifa Port and to ensure Borouge’s smooth transfer of its port operations from Mina Zayed to Khalifa Port.

The MoU will see that during the design, development and subsequent operation of Khalifa Port, ADPC will ensure that sufficient land, storage facilities, infrastructure and services are made available at Khalifa Port to accommodate Borouge’s products and to assure the seamless transition of Borouge’s current port operations at Mina Zayed to Khalifa Port.

Borouge currently utilizes Mina Zayed for a throughput capacity of 600,000 tonnes of polyethylene per year and will require the provision of port services for an increase in throughput capacity of approximately 2.1 million tonnes of polyolefin per year by 2010, once Borouge 2 expansion project is completed and to an ultimate throughput of 4.5 million tonnes by the year 2014, upon the completion of Borouge 3.

Under the terms of MoU, ADPC will ensure that the port operation shall make all the necessary arrangements to ensure that Borouge’s current production level and future increased production levels inclusive of Borouge 2, shall be effectively handled by Mina Zayed alone until the commencement and full operation of Khalifa Port.

Construction of Borouge 2 began in late 2007 and consists of an ethane cracker of 1.5 million tonnes per year, the world’s largest olefins conversion unit of 752,000 tonnes per year, two Borstar polypropylene plants with a combined annual capacity of 800,000 tonnes, along with a new Borstar Enhanced polyethylene plant with an annual capacity of 540,000 tonnes.

Khalifa Port is part of ADPC’s multi billion dollar flagship project. Khalifa Port & Industrial Zone is one of the world’s largest green field port and industrial zone development projects that will provide essential infrastructure for the growing industrial and commercial sectors of Abu Dhabi.

GCC oil income may hit USD 636 billion in 2008 – Report

Khaleej Times reported that skyrocketing oil prices are expected to boost oil revenues of the Gulf Cooperation Council states by 75% YoY to USD 636 billion in 2008 from USD 364 billion in 2007.

Kuwait based Al Shall Economic Consultants said in a report that GCC, which produces 16 billion barrels of oil per day, will continue to see income from oil swelling in 2009 to USD 657 billion at the current oil prices skirting above USD 130 a barrel. The report projects that the aggregate GCC oil earnings in 2008 and 2009 would be close to USD 1.3 trillion.

According to estimates by McKinsey & Company, Abu Dhabi is likely to accumulate an investable surplus of USD 800 billion by 2020 due to unprecedented inflows of oil revenues.

A forecast by the IMF said crude oil production in the Middle East and Central Asia will rise modestly in 2008 to 29.4 million barrels a day, compared with an average 28.4 million estimated for 2007.

Khaleeji Bank plans USD 400 million India logistics project

Bahraini Islamic lender Khaleeji Commercial Bank said in a letter to the Bahrain Stock Exchange that it is finalizing a deal to set up a logistics service project in India worth more than USD 400 million.

Khaleeji Commercial Bank said that the project will involve investors across the Gulf Arab region. It said earlier that it would list 1 billion shares on Bahrain's bourse on June 12th 2008 to diversify their shareholder base and increase the firm's liquidity. It also plans to list on other regional bourses.

Bahrain based Islamic investment bank Gulf Finance House is Khaleeji's biggest shareholder with a 40% stake.

Pakistan cement in high demand in South India

It is reported that low priced and quality Pakistani cement is making way into South Indian markets where its demand is rising.

Kerala Cement Dealers’ Association said that a 50 kilogram Pakistani cement bag is available in Kochi at INR 250 as compared with local cement at INR 260 a bag. The quality of Pakistani cement is very good but the supplies are limited. A few months back, about 1,000 tonnes of imported cement landed at Ernakulam at a price of INR 220 per bag when the domestic cement was costing around INR 250.

Importers said that around 1,000 containers of cement were shipped to Chennai 2 months back and around 1,500 containers landed in Tuticorin. Each container had a capacity for 500 bags of cement weighing 50 kilogram each.

Baosteel raises steel price for August

It reported that Baosteel has raised steel price for August recently and the price growth rate is CNY 200 per tonne to CNY 400 per tonne.

Baosteel raised the price of general CR steel products up by CNY 200 per tonne for August and the price of SPCC 1.0×1250 steel coil after the adjustment is CNY 6,496 per tonne. HR steel price increases by CNY 300 per tonne and the price of SS400 5.5×1500 is CNY 5,292 per tonne after the price rise. Meanwhile, the price of pickling steel products rises up by CNY 200 per tonne while wire price comes up by CNY 400 per tonne. All prices above exclude 17% VAT.

An analyst said Baosteel has not reported the information publicly by now, and the price rise was probably made according to the price policy for July. There are two reasons for Baosteel to increase steel prices.

1. The expanding price gap between domestic and international steel market. HRC export price is approaching to USD 1,100 per tonne, but domestic price is USD 860 per tonne which will stimulate the hike of Chinese steel export.
2. The sustaining increase of domestic steel production cost, due to the further increase of coking coal and coke prices.

Analysts believed that Baosteel will raise prices of some steel products again in the future, which may bring effects to domestic steel market.

Chinese steel plate price further increase

It is reported that export prices for steel plate have been raised again recently due to robust overseas demand.

Offers for commercial plate by tier two steel makers are at USD 1150 per tonne to USD 1200 per tonne FOB as base and those by tier one producers are at about USD 1250 per tonne FOB to USD 1300 per tonne FOB up by USD 40 per tonne to USD 70 per tonne from early June.

As per report, ship plate by tier two steel mills are between USD 1250 per tonne to USD 1300 per tonne FOB as base, while those by tier one producers were quoting the price at USD 1350 per tonne to USD 1400 per tonne FOB from end August or early September shipment.

An East China based major steel maker tells Mysteel that their ship plate allocation for August shipment has been fully booked and the average base price is USD 41360 per tonne FOB. Current offer price for ship plate increased by USD 1400 per tonne.

(Sourced from MySteel.net)

Baosteel achieves batch production of X80 plates

Baosteel has done batch production of plate in 22mm thick for X80 large diameter straight welded pipe used in the second west-east gas transportation line by producing over 10,000 tonnes of such material for two consecutive months, with a reduction of 50% in cold rectification ratio.

Baosteel embarked on the industrial development of this plate early last year before succeeding in trial production this February.

Jinan produced 1.315 million tonnes of SBQ plates in 2007

It is reported that Jinan Iron & Steel Co produced 1.315million tonnes of ship plates in 2007 and both the output and sales volume took the second position in China.

As per report, Jinan Steel has created cooperation relationship with many boatyards in South Korea. The company exported 237,000 tonnes of ship plates in 2007 with an export value of more than USD165million.

At present, the ship plate produced by the company has passed 11 ship' classification societies’ inspection from 10 countries.

China auto sales to hit 10 million units

UPI cited Chinese officials as saying that, they expect domestic auto sales spurred by a strong economy to reach 10 million units in 2008 up by 15% YoY from last year.

Mr Dong Yang head of the China Association of Automobile Manufacturers said business vehicle growth has slowed while demand for passenger cars continues to be strong.

The report said Association figures showed that domestic sales totaled more than 4.3 million vehicles in January to May 2008 up by 17% YoY from the same period of 2007.

The report quoted the official while speaking at an industry meeting said the Chinese government will speed up restructuring the industry with emphasis on security, environment protection and energy saving. He also said that the sharp increases in the prices of raw materials such as iron and steel were expected to reverse the trend of declining auto prices.

Baosteel to form CNY 35.9 billion Guangdong venture

Bloomberg reported that Baosteel Group Corp and two rivals in the southern province of Guangdong agreed to form a CNY 35.9 billion venture to construct a CNY 60 billion steel plant.

SGIS Songshan Co said in a statement that Baosteel will take 80% of Guangdong Iron & Steel Group as the venture will be known by contributing CNY 28.7 billion in cash. SGIS's parent company and Guangzhou Iron & Steel Group will contribute existing steel assets to the venture. Details are still under discussion.

Shanghai based Baosteel needs to ensure 10 million tonnes of older steel capacity in Guangdong is shut down to win final approval to build the 10 million tonne per year plant in Zhanjiang, Guangdong province. China which produces one third of the world's steel and plan to create fewer more competitive mills to compete with global rivals.

According to the report the new Zhanjiang plant will supply Toyota Motor Corp and Honda Motor Co plants in Guangdong. It will boost Baosteel's capacity by 33% to 40 million tonnes.

Baotou Steel posts CNY 17 billion sales revenue in 5 months

It is reported that from January to May 2008, Baotou Iron and Steel Company produced 3.836 million tonnes of iron, 3.889 million tonnes steel, realized sales revenue of CNY 17.1 billion, net profit of CNY 830 million with great improvement compared with the same period of last year.

In 2007, the company’s sales revenue broke through CNY 30 billion, and formed an annual output of 10 million tonnes production capacity.

Fuel and power price expected to increase by CNY 80 per tonne - MySteel

China Securities Journal cited Mr Wang Jianhua vice director of Mysteel Research Institute as saying that, China's steelmaking cost would increase by some CNY 80 per tonne due to recent fuel and electricity price hike.

Mr Wang said the fuel price hike would add CNY 18.1 billion to steelmaking cost in the second half, equivalent to production cost increase of CNY 67 per tonne. And the industrial input cost would rise by CNY 1.69 billion in H2 due to higher electricity price, leading to cost growth of CNY 6.25 per tonne. Therefore, the average steelmaking cost is to increase CNY 80 per tonne in H2 and some mills might suffer a rise of CNY 100 per tonne.

Mr Wang said the price correction should be around 7% and there is no scope for any steep decline. However, the softening price is here to stay for around one month for most steel products. He said that escalating cost of coke, electricity supply restraint coupled with price premium with international market all would lend support to domestic steel prices.

The price hike has come against the backdrop of domestic steel market downturn. Mysteel survey shows that most construction steel price has dropped nearly CNY 200 per tonne in major markets like Beijing, Shanghai, Tianjin etc and medium plate price loses 100 per tonne in Jana and Taiyuan and down by CNY 50 per tonne in other regions. CR steel price also down by 100 per tonne in many markets, while HR sheet price held steady in most cities.

(Sourced from MySteel.net)

Baosteel’s COREX furnace test on environment protection

It is reported that an environmental test about Baosteel’s COREX furnace was performed with encouraging information and the discharge amount of sulfur dioxide is only half of that required by the first grade of the national Cleaner Production Standard, while smoke and dust emission only three fifth of the standard of cleaner production for steel makers.

According to the report, Baosteel has been engaged in developing recyclic economy and building an environment friendly enterprise, substantially reducing the pollution sources and boasting the virtues of low energy consumption and high efficiency by abandoning processes of coking and sintering.

COREX achieving these high standards, Baosteel can save a total of 300,000 tonnes of coke and generate power of above 1 billion KWH per year through reuse of gases.

(Sourced from MySteel.net)

Hainan eliminated all the backward steel production lines

According to Hainan Province industrial economy information industry bureau, Hainan province has eliminated all the backward steel production lines.

The restructure adjustment of Hainan province iron and steel industry has got great result. In last year, Hainan province actively guided the restructure and technological transformation for the enterprises and reorganized Hainan Jianxing based scrap metal integrated company.

As per reports, the new company introduced the domestic high technology, low energy consumption and environment-protection production equipments, counted by processing 300,000 tonnes of scrap steel which can save about 80 million degrees of electricity every year.

HangSteel spring steel wire products take 30% market share

According to the latest statistics from January to May 2008, Hangzhou Iron and Steel Company Banshan steel base had produced more than 40,000 tonnes of spring steel of which the wire occupied half of the output exceeded 20,000 tonnes.

Analyzed from the comprehensive information, the wire production of Hanggang has ranked the forefront in China accounting for more than 30% of the domestic total output at the same period.

In January to May 2008, the spring steel of Hanggang reached 20.053 tonnes up by 23.2% YoY and increased two times than that of 2004. In the spring steel family of Hanggang in addition to wire the output of round steel, strip two varieties also greatly increased adding by 21.669 tonnes.

In January to May 2008, the 60 Si2Mn output reached 29,391 tonnes up by 55.7% YoY, 55 CrSi (A) output reached 5,361 tonnes, a slight increase of 60 Si2Cr and 60 Si2CrV (A) two new varieties also put into production.

China to construct 10 projects in western regions

National Development and Reform Commission announced that China plans to build 10 projects in the western region this year with a combined investment of CNY 436 billion.

According to the report these projects comprise rail projects to link Guiyang and Guangzhou, Lanzhou and Chongqing, Kashgar and Hotan in Xinjiang besides highways between Wanyuan and Dazhou in Sichuan Province, Shuikou and Duyun in Guizhou Province. In addition, there will be expansions of airports in Chengdu, Chongqing and Xi'an and building of hydropower stations, coal mines, gas and oil transmission pipe lines as well as public utility projects in western regions.

The western region which covers 71.4% of mainland China has emerged as one of the fastest growing markets in the country. The region has received USD1.393 billion foreign investment in the first two months of this year, more than twice in the same period last year.

China Precision Steel to joins Russell Indexes

China Precision Steel announced that it is set to join the Russell 3000 Index and RussellGlobal Index when Russell Investments reconstitutes the index on June 27th 2008.

According to the released the Russell 3000 Index measures the performance of the 3,000 largest US companies based on total market capitalization which represents approximately 98% of the investable US equity market. These indexes are value weighted and include only common stocks belonging to corporations incorporated in the United States and its territories. The Russell Global Index represents the investable global equity market and its segments comprehensively. It consists of more than 10,000 securities in 63 countries and offers over 300 key sub indexes. The 2008 reconstitution of the Russell Indexes will take place after the market close on June 27th 2008 and the new indexes will be effective for one year.

Dr Wo Hing Li Chairman & CEO of China Precision Steel said that "We are very pleased to be a part of the Russell 3000 Index and the Russell Global Index. The addition of China Precision Steel to these indexes explains the growing opportunity that the company presents. We are one of the few Chinese steel manufacturers in the niche high end cold rolled carbon steel processing market. Our corporate brand is increasingly being recognized by the investment community in the US stock markets and inclusion in the Russell 3000 and Russell Global further expands our visibility. He said that as a US publicly traded company, we remain committed to building a highly respected brand recognized not only domestically but also internationally."

Masteel increase coated steel prices

It is reported that China’s Masteel Group is increasing its price on coated steel products and will be effective with June 2008 shipments.

As per report, Masteel Group is hiking its galvanized steel by CNY 330 per tonne to CNY 80 per tonne. The current price for Galvanized steel with thickness 0.5MM is about CNY 8,148 per tonne while thickness 1.0 is at about CNY 7,587 per tonne.

Masteel will remain its price of color coated steel unchanged.

(Sourced from YIEH.com)

Chinese H beam export offers further increase

It is reported that H beam export offers have witnessed remarkable increase despite small increase in domestic market prices. The robust overseas demand and rising production cost are believed to the major reasons.

On Shanghai market, Q235 200mm*200mm*8m*12m H beam by Maanshan steel or Laiwu steel is being quoted at CNY 5630 per tonne, that for 300mm*300mm*10m*15m is at CNY 6080 per tonne which compares with CNY 5610 per tonne and CNY 5990 per tonne in May.24th.

As per report export offers have moved up to USD 1160 per tonne to USD 1200 per tonne CFR for shipments to South Korea up by USD 100 per tonne to USD 130 per tonne from USD 1060 per tonne to USD 1070 per tonne in end May.

(Sourced from MySteel.net)

Hebei Dongshan starts its steel rolling project

It is reported that on 13th June, Hebei Dongshan Metallurgy Industry Company Limited held a ceremony for phase one of 1.00 million tonnes I beams, angle and channel steel rolling project breaking ground, which means the project launched construction virtually.

The report also mentioned that the investment for the 1.00 million tonnes I beams, angle and channel steel rolling project totals CNY 200 million with phase one having a time limit of six months and an investment of CNY 100 million. The investment recovery period is 18 months. Phase two is to begin in early 2009. When the project completed, the company will have an iron capacity of 1.00 million tonnes per year, and an equaling capacity for steel and steel products respectively.

Ansteel merges with Tiantie Steel Sheet

Anshan Iron and Steel Group completed capital increase and share expansion in Tiantie Steel Sheet Company Limited yesterday afternoon, which was equally held by Ansteel and Tiantie Group.

Ansteel produced high grade auto panel with a premium steel capacity of 25 million tonnes per year while 40 year old Tiantie is a large state-owned steel producer with an annual steel capacity of 8 million tonnes.

(Sourced from MySteel.net)

Chalco H1 net to fall by over 50% YoY

It is reported that Aluminum Corp of China expects its first half net profit to be down by over 50% YoY from CNY 6.397 billion and earnings per share of CNY 0.53 of the same period of last year.

Chalco said that its operation was temporarily suspended due to the short supply of electric power at the year start resulted from the winter storms. Meanwhile, soaring raw materials prices also drove up input cost higher, dragging down profit.

COSCO started operating its news cargo headquarters

It is reported that China COSCO Holdings Company Limited a flagship subsidiary of China Ocean Shipping Company started operating a newly established headquarters for bulk cargo on June 19th 2008.

As per report the listed company has been the world's largest dry and bulk cargo carrier since purchasing bulk cargo assets from its parent on December 29th 2007. It operated 419 bulk cargo ships of total carrying capacity of 32.98 million deadweight tonnages as of the end of 2007. It is also a world's leading company in container shipping, logistics, terminal and container leasing, freight forwarding and ship forwarding.

Authorized by COSCO Bulk Carrier Company Limited, Qingdao Ocean Shipping Company Limited and COSCO Shipping Company Limited, three bulk carriers of the listed company, the bulk cargo headquarters will negotiate on contracts and sign contracts in the name of China COSCO Bulk.

The bulk cargo headquarters unifies all the bulk cargo shippers, further strengthening the listed company's profitability and risk-resistance capabilities.

Baosteel gas utilization reaches world leading level

It is reported that Baosteel Branch's blast furnace gas emission ratio is less than 1.5%, 99 Nm3 BOF gas is recovered per tonne of steel, zero emission is maintained for coke oven gas and the utilization of by product gas steadily steps into the leading position in the world.

As per report, since Phase III project was put into operation, Baosteel Branch's production scale has kept expanding, so the bottleneck in fuel gas system becomes more and more serious and thus constrains the progress of energy saving and emission reducing technologies.

Since 1996, Baosteel Branch has been unremittingly exploring the comprehensive utilization technologies for by-product gas with the target to catch up with and surpass the international leading level. After the practices for many years, Baosteel Branch has made remarkable achievements in terms of gas recovery and utilization, system monitoring and adjustment, economic operation and decision-making, providing important support to improve the utilization of by-product gas and emission reduction technologies.

Through technology innovation, Baosteel Branch substantially improves the recovery capacity for BOF gas, effectively alleviates the conflict between gas recovery and utilization imbalance and solve the quality problem of coke oven gas for cold rolling which has been perplexing for many years; a generating set that combusts pure blast furnace gas has been completed, which greatly improves the utilization level of blast furnace gas; the key equipment in fuel gas system can be manufactured locally, thus lowering the maintenance cost and improving the safety and lifetime of fuel gas facilities; corporate ERP level energy database has been developed successively to realize the automation and informationization of fuel gas system.

Jiangsu Jinhu county signed rebar and wire rod project

It is reported that, Jiangsu Jinhu formally signed rebar and wire rod project with an annual output of 1 million tonnes. It is the largest project for Jinhu County this year.

As per report, the project is introduced by the Broad and Television Bureau and the Department of Education in Jinhu County,and invested by businessmen from Fujian province, Jiangsu Liyang Sanyuan Iron and Steel Company, the total investment of the project is CNY610 million and accounts for 500 acres.

The report added that the project is plans to start work in August 2008 and is expected to complete the first phase of the project in June 2009 with a production value is expected to reach CNY 2 billion.

Sangang Group continue to maintain good development trend

It is reported that since year, Sangang Group continues to maintain a good development trend.

As per report from January to May 2008 Sangang Group totally produced 2.2766 million tonnes steel, 1.8972 million tonnes iron, 2.0035 million tonnes materials, of which the plate materials was 453,200 tonnes.

The Group totally completed industrial production value of CNY 10.341 billion and realized sales revenue of CNY 11.238 billion, net profit of CNY 802 million.

Masteel delivers equipments to SMS Demag

It is reported that, the large size parts of rolling mill manufactured by Masteel for the Germany SMS Demag Company was formally delivered to Germany. It was the first batch of set of heavy rolling mill equipment for Masteel to export to SMS Demag Company.

Since Magang and Germany SMS Demag Company established strategic cooperation partnership relation for rolling mill