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.

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)

Steel laden 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.

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)

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."

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.

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.

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.

The report cited a Maharashtra Seamless official as saying 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.

Key to domestic steel prices in India

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

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

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

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

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

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

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)

SAIL RSP launches new CSR initiative

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.

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.

Amtek forms JV with American Railcar Industries

American Railcar Industries Inc has announced that, through a subsidiary, it has entered into a joint venture agreement with a subsidiary of Amtek Auto Limited to form a JV to manufacture, sell and supply freight railcars and their components to customers in India and other countries to be agreed upon.

The joint venture, which will be owned 50% by the ARI subsidiary and 50% by the Amtek subsidiary, is expected to manufacture products from a new facility to be located in India.

The parties currently expect to commence construction of the facility during the second half of this year, following final site selection. It is expected that the joint venture could begin railcar production in 2009. The joint venture would use manufacturing methods that ARI has developed and would initially manufacture railcar types that are currently being sold in India. The parties anticipate that the joint venture would introduce and build railcars new to the Indian market, based on ARI designs, within the next few years.

Mr James Unger CEO of American Railcar said that “e are excited to be joining with the strong management team of Amtek to build railcars in India. We believe Amtek's depth of manufacturing experience and knowledge of Indian markets supports our partnership's short and long-term prospects for growth within India.” He added that "We believe there is also a significant opportunity for component sourcing in India."

Mr John Flintham CEO of Amtek Auto Limited said that "We are thrilled to partner with ARI to build railcars in India. Our management team is eager to combine ARI's success building high quality railcars efficiently, with our proven manufacturing track record in India."

American Railcar Industries, Inc is a leading North American manufacturer of hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non railcar industrial products produced by others.

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.

NTPC wins Star PSU award 2008

National Thermal Power Corporation Limited has been adjudged as the Star PSU 2008. The award was presented by Mr LK Advani leader of opposition Lok Sabha to Mr RC Shrivastav director HR of NTPC.

NTPC has been adjudged by prominent jury chaired by Mr Sunil Bharti Mittal CMD of Bharti Group. Other members of the jury are Mr Doug Baillie CEO & MD of Hindustan Lever, Mr Rajiv Memani CEO & country managing partner of Ernst & Young, Mr Ramlinga Raju chairman of Satyam Computers and Mr TN Ninan editor of Business Standard, Mr Jagdish Khattar ex MD of Maruti Udyog and Mr AK Puri former CMD of BHEL.

The winners in the other categories are Cognizant, SBI, Bosch, Sun Pharma, BCCI, Hyundai, Fidelity, HSBC and Bajaj Auto.

CCI asks SEBI to tighten 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.

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.

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.

Quippo Infrastructure set to take stake in TATA tower business

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.

Elecon Engineering eying 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."

TATA Power 2007-08 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.

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.

Heavy rainfall and flood affects rail transport

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.

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.

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.

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.

SCI 2007-08 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.

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.”

WSD names AK Steel as World Class Steelmaker

According to World Steel Dynamics, a steel industry strategic information service, AK Steel has been added to the list of World Class Steelmakers, reflecting the company's extraordinary turnaround since 2003.

The announcement was made at this week's Steel Success Strategies conference held in New York that was attended by more than 1,400 steel industry executives from around the world.

Mr Peter F Marcus managing partner of World Steel Dynamics said that "AK Steel's common stock, when Mr Jim Wainscott was appointed president and CEO in 2003, was under USD 2 per share. Share performance has since been stellar, trading at over USD 73 per share in the last month. In addition, AK Steel's operating profit per ton is now the highest among the USA integrated producers and its balance sheet is remarkably improved."

Mr Marcus also noted that the company has leading market positions in high value added products, including automotive sheet products, stainless steel for automotive exhaust applications and the highest valued-added silicon electrical steels. He added that AK Steel is consistently rated at the top of its class in product quality by customers, according to independent surveys.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "We are excited and honored that AK Steel has been named to WSD's prestigious list of World Class Steelmakers. Attaining recognition as one of the finest steel producers on the planet is a tribute to the hard work and dedication of AK Steel's outstanding board of directors, management team and employees."

Japanese CRNGO export prices increase by USD 250 for Q3

TEX reported that Japanese integrated steelmakers have won a price increase of USD 250 per tonne in negotiations on their exports of non grain oriented electrical sheets to non Japanese consumer electronics manufacturers in Asian destinations, mainly China for shipments in the July to September quarter. As a result, the new prices have hit a level of USD 1,200 per tonne FOB for high grade products.

With the environment in their favor, the Japanese steelmakers have firmed up supply contracts with a price increase of USD 250 per tonne each to meet what they offered. There are even cases of a cumulative price increase of close to USD 500 per tonne for April to September shipments after the price increase settled of USD 200 to USD 250 per ton for April to June shipments.

The report said that the Japanese steelmakers held their negotiations with the non Japanese consumer electronics operators at a time when the Japanese steelmakers found themselves in tight export capacity of non GO electrical sheets. The non Japanese customers reacted with moves to put assured supply volumes before prices.

Meanwhile, the Japanese steelmakers are in negotiations in progress on their export deals of CRNGO electrical sheets with Japanese affiliated consumer electronics companies in Asian destinations for July to September shipments. There are prospects that the Japanese affiliated users will accept a price increase of USD 200 per tonne on offer shortly, leading to price settlements beyond USD 1,000 per tonne FOB.

(Sourced from TEX Reports)

Malaysian builders urge government to stock up rebars

New Straits Times reported that Master Builders Association of Malaysia has recommended that the government allocate MYR 1 billion to stock up on 350,000 tonnes of steel bars, to ease the current supply chain bottleneck in the construction industry.

MBAM, which represents 600 contractors in the country, estimates that the country urgently needs 350,000 tonnes of steel bars in the next three months.

Mr Patrick Wong president of MBAM said that "We are facing a supply chain bottleneck now because government projects were rolled out irregularly. The sudden increase in demand for steel bars, cement and heavy machinery is causing artificial shortages in the market.”

Mr Wong said that "In de bottlenecking the supply chain in the construction industry, we appeal to all steel millers to directly supply the steel bars to contractors who are capable and willing to buy for cash.”

He added that "We are also recommending that the government, via the National Price Council, Syarikat Perumahan Negara or even Mavtrac Sdn Bhd to set up a stockpile of 350,000 tonnes of steel bars now. If there are no immediate positive measures taken, we can see further delay in infrastructure projects.”

Mr Wong said that the construction of affordable housing, including low and medium cost units, may no longer be feasible. He said that "Each low cost unit requires 1.8 tonnes of steel bars. If, by the end of the year, steel bars escalate to MYR 5,000 per tonne, the ceiling price of MYR 45,000 on a low cost unit will no longer reflect its real economic value.”

Living Steel finals to be held at Suomenlinna Sea Fortress in Helsinki

It is reported that the 3rd International Architecture Competition for Sustainable Housing will be hosted at Suomenlinna Sea Fortress in Helsinki of Finland on June 26th to 27th 2008.

The report added that this time Suomenlinna will be the site where 12 finalist teams for the competition will present their designs for extreme housing at Cherepovets in Russia.

They will compete for a EUR 50,000 Competition Prize that will honor the architects whose imaginations and innovation present a solution for housing that is highly energy efficient and minimizes climate change emissions through the life cycle of the buildings, within a USD 120,000 construction budget.

Living Steel is a worldwide, collaborative program designed to stimulate innovative and responsible housing design and construction, was launched in February 2005.

Metalfer rebar mill starts trial production

It is reported that Metalfer just started to operate its new rolling mill in May, which is the first rebar mill in Serbia, and now the facility is able to run successfully at its full capacity.

Initially, this new plant is expected to output 250,000 tonnes of rebar and 50,000 tons of wire rods annually, and the total annual capacity will reach 500,000 tonnes by 2010. In addition, the company will build a new plant to produce billet in the near future.

(Sourced from YIEH.com)

Salzgitter to raise flat product prices in Q3

Reuters reported that German steelmaker Salzgitter intends to raise the price of its flat steel products by EUR 150 per tonne in the third quarter of 2008.

A Salzgitter spokesman said that the increase is in response to higher raw material costs.

US Steel CEO sees steel prices going up due to raw materials

Mr John Surma chairman & CEO of United States Steel Corp said that the recent jump in raw materials prices will push steel prices up.

Mr Surma during a steel conference told Reuters that "Higher costs for raw materials globally will undoubtedly put pressure on steel prices.”

Daido Steel to introduce raw material surcharge

JMB reported that Daido Steel started study to introduce new pricing mechanism to secure sustainable profitability under higher raw materials cost.

The report added that Daido Steel has already offers ferrous scrap surcharge system effective in and after October to automakers and automotive parts makers. The firm tries to make netting scheme, in which the firm sells steel products with certain margin to users with ferrous scrap supply transaction with Daido Steel.

Indonesia issues 19th tin export license

Bloomberg reported that Indonesia’s trade ministry has granted a nineteenth tin export license.

The report quoted Mr Hartojo Agus Tjahjono ministry's export director of mining and industry products as saying that “We gave the license to PT Belitung Industri Sejahtera on June 10.”

The ministry said that the export licensing system was introduced in February 2007, with licenses granted only to companies paying royalties, meeting minimum tin metal quality standards and sourcing concentrates from legitimate mining operations.

At the end of last year 15 companies had obtained licenses, with four more now joining the ministry’s approved list so far in 2008. In the 12 months to end May 2008, 106,516 tonnes of refined tin have been checked and approved for export under the scheme.

Steel prices in India, China and Middle East

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

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

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

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

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

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

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

Metso to supply an iron ore induration machine to Essar Trinidad & Tobago

Metso Minerals announced that it will supply an iron ore induration machine to Global Supplies Ltd a member of the Essar Group.

The machine will be delivered to Essar Steel Holdings Ltd for its Point Lisas Pellet Plant located at Couva in Trinidad and Tobago. The value of the order is approximately EUR 16 million.

The order comprises a 744 square meter induration machine with 270 pellet cars, as well as auxiliary equipment, start up commissioning and training services.

US pipes price expected to hike again

Along with stable flat rolled price, buyers in the US think pipes price will be virtually stable. However, pipe prices may hit new record highs again.

According to a trader, during past several months, the price of steel plates has risen constantly, which support tube mills to raise their price in order to transfer the rising cost. Currently, A500 HSS price is prevailing at around USD 1,609 to USD 1,631 per tonne in the Middle West of America.

(Sourced from YIEH.com)

Reliance Steel boost its Q2 profit prediction

Reliance Steel & Aluminum Co announced that it is updating its guidance regarding the Company’s earnings estimates for the second quarter ended June 30th 2008. At this time, Reliance expects earnings to be in the range of USD 2.00 to USD 2.10 per diluted share, up approximately 30% from the Company’s prior guidance. The current mean of the Wall Street analysts’ earnings estimates for Reliance’s 2008 second quarter is USD 1.63 per diluted share.

Mr David H Hannah chairman & CEO of Reliance Steel said that “In our April 17th 2008 first quarter press release we included an estimate for our 2008 second quarter earnings of USD 1.50 to USD 1.60 per diluted share. Because the prices for carbon steel products have increased more significantly and more rapidly than we had anticipated and because we have been successful in expanding our gross profit margins more than anticipated in the current environment, we have increased our earnings guidance.”

He added that “The updated guidance includes a LIFO estimate of USD 100 million for the year, up from our prior estimate of USD 70 million. This results in a second quarter LIFO expense of USD 32.5 million compared to USD 17.5 million included in our prior guidance. As a result, we have updated our earnings guidance to reflect our current expectations.”

US weekly crude steel production decreases by 2% YoY

American Iron & Steel Industries reported that in the week ending June 21st 2008, US’s raw steel production was 2.076 million net tons while the capability utilization rate was 87%. Production was 2.119 million net tons in the week ending June 21st 2007, while the capability utilization then was 88.6%. The current week production represents 2.0% decrease from the same period in 2007.

Production for the week ending June 21st 2008 is down 1.1% from the previous week ending June 14th 2008 when production was 2.101 million net tons and the rate of capability utilization was 88.1%.

Adjusted YTD production through June 21st 2008 was 52.301 million net tons at a capability utilization rate of 88.7%. That is a 2.5% increase from the 50.998 million net tons during the same period last year, when the capability utilization rate was 85.7%.

District wise production for the week ending June 14th 2008
1. Northeast Coast: 183
2. Pittsburgh/Youngstown: 214
3. Lake Erie: 93
4. Detroit: 97
5. Indiana/Chicago: 473
6. Midwest: 261
7. Southern: 661
8. Western: 94
(In thousands of net tons)

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

Japanese domestic scrap prices averages JPY 62,913

According to a survey by the Japan Ferrous Raw Materials Association, Japan's domestic market prices of locally available ferrous scrap averaged JPY 62,913 per tonne delivered steelworks for No2 HMS in the Kanto, Chubu, and Kansai areas in the third week of June 2008 up by JPY 766 from a week ago.

The association said that in the third week of June 2008, the monitor prices of No2 HMS ex steelworks in cash transactions were JPY 65,333 per tonne in Kanto up by Y333 from a week ago; JPY 60,940 per tonne in Chubu, up by JPY 800 and JPY 62,467 per tonne in Kansai up by JPY 1,167.

In the week under review, No2 HMS prices across the nation averaged JPY 63,277 per tonne delivered steelworks up by JPY 1,043 from a week ago.

American scrap export prices slide a little

American scrap exports continued their strong showing, but the price had dropped slightly. As per report during the recent two weeks, east seacoast exported some 500,000 tons of scrap to Turkey and other countries in Mediterranean Sea.

Among them, No 1 and 2 mixed scrap price was settled at around USD 721 per ton, shredded scrap was around USD 726 per ton. It said that prices have declined by USD 15 per ton than the highest price of the late month.

(Sourced from YIEH.com)

Brazilian slab export in 5 months of 2008 up by 62%YoY

According to the report, Brazil's slab exports kept increasing and the total quantity has reached 2,000,000 tonnes from January to May of 2008 up by 62% YoY.

The report said that Brazil totally exported 351,907 tonnes of slabs in May 2008.

Thailand, South Korea, and US are the top three countries which imported slabs from Brazil in 5 months. However, the top three import countries were Taiwan, South Korea, and Dominican Republic last May. Besides, the United State is still the largest slab buyer from Brazil so far in 2008.

Nichia Steel completes buyback of 407,000 shares

Bloomberg reported that Nichia Steel Works Ltd completed a buyback of 407,000 shares.

The company announced the buyback in a statement to the Tokyo Stock Exchange the following

Status report on ArcelorMittal share buyback program

ArcelorMittal under the new share buy back program as announced on December 12th and on December 18th 2007, hereby announced that it has repurchased 4,535,697 shares from June 16th until June 20th 2008.

The shares were repurchased at an average price of EUR 62.8834 and for a total amount of EUR 285,220,271.

US steel imports down by 18%MoM

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2.451 million net tons of steel in May 2008, including 1.998 million net tons of finished steel down by 18% MoM and 10% MoM respectively.

Total and finished steel imports through the first five months of 2008 are down 11% and 14%respectively vs. the same period in 2007. However, the monthly average for finished steel imports in the most the March to May 2008 period is up 10% vs. the monthly average in the previous December 2007 to February 2008. Total and finished steel imports on an annualized basis this year are down 5% and 6% respectively, vs 2007. On an annualized basis, total imports of steel in 2008 would be 31.6 million net tons.

Key products with large increases in May compared to the month before include:
1. Sheet & Strip Galvanized Hot Dipped up by 89%
2. Oil Country Goods up by 21%
3. Heavy Structural Shapes up by 15%
4. Cold Rolled Sheets up by 10%

For the first five months of 2008, products showing significant increases vs. the same period in 2007 were:
1. Oil Country Goods up by 17%
2. Line Pipe up by 16%

For May, the largest volume of finished steel imports from offshore were
1. China 287,000 net tons up by 59% MoM
2. South Korea 199,000 net tons down by 6%MoM
3. Japan 118,000 net tons down by 30% MoM
4. India 96,000 net tons up by 16% MoM
5. Germany 81,000 net tons down by 44% MoM

USW given 3 days to propose new bid for Esmark

Esmark Incorporated confirmed that an Arbitrator’s decision cleared the way for the Board to act on competing bids for the Company by declining to extend the 52 day right to bid period given to the United Steelworkers. However, in keeping with their good relationship with the USW, Esmark subsequently agreed to voluntarily extend the USW right to bid period for another three days to June 26th 2008 for the USW to organize a transaction for the Company.

The USW had filed an extensive grievance alleging multiple violations of the parties’ collective bargaining agreement. Although the Arbitrator determined that the Company did not give the USW sufficient advance written notice of the Company's April 30th 2008 Memorandum of Agreement with Essar Steel Holdings Ltd, the Arbitrator denied all remedies sought by the USW, other than setting aside this MOA. The Arbitrator determined that a 52 day right to bid period provided to the USW by the Company was sufficient under the Company’s collective bargaining agreement, and declined to extend that right to bid period.

The Arbitrator also held that the Company’s Stockholder Rights Plan was not a violation of the collective bargaining agreement, that the termination fee and related reimbursement obligations were not inappropriate under the collective bargaining agreement, and that Essar’s increased offer for the Company to USD 19 per share on June 10 did not trigger any requirements under the collective bargaining agreement.

Mr James Bouchard CEO of Esmark said that “Our goal throughout this process has been to ensure that we maximize our value to our shareholders, while finding a strategic partner that is committed to investing in the Ohio Valley and protecting our employees. We value our relationship with the USW and appreciate the guidance the arbitrator has provided to both parties. The board of directors looks forward to continuing this process and making a deliberate and informed decision consistent with our fiduciary duties on all offers. Importantly, the Arbitrator stated that any USW ‘proposal would have to compete with the USD 19.00 price tag’ before the board.”

Sims Group to sells distribution business

AAP reported that Sims Group Limted, the world's largest scrap metal recycler has divested its Australian distribution business to a subsidiary of Capital Steel Group for an undisclosed sum.

The distribution business, Sims Steel, provides a range of steel products, general building and fencing products to a broad range of users such as builders, maintenance contractors and primary producers.

The business has been sold to 7 Steel Distribution Pty Ltd a wholly owned subsidiary of Capital Steel Group.

The transaction is expected to be completed by June 30.

Capital Steel operates in eight countries and is the leading producer of cold rolled-steel buildings in the United Kingdom and Ireland.

CHS raises prices for July

Taiwan Chung Hung Steel has released new prices for July 2008.

Considering that China Steel Corp has raised its list price of hot rolled steel in the third quarter by TWD 4,500 per tonne, CHS decided to raise its price by TWD 1,000 to TWD 1,500 per tonne. The total increase for the third quarter is expected to be TWD 6,000 per tonne.

In June, CHS’s plate price increased by TWD 2,500 per tonne as a whole. After adjustment, the company’s hot rolled price will be around TWD 28,000 to TWD 30,000 per tonne.

(Sourced from YIEH.com)

Territory chairman resigns

Iron ore exporter Territory Resources advises of a number of changes to its Board, following the resignation of Mr Michael Kiernan chairman.

Mr Kiernan has advised the Territory Board of his decision to resign effective June 24th 2008, due to his desire to reduce his workload and focus his efforts on Monarch Gold.

Territory is pleased to advise that Mr Andrew Simpson previously deputy chairman of Territory Resources, has accepted the role of chairman. He is a senior marketing executive with more than 30 years experience in international marketing and distribution of minerals and metals.

Territory is also pleased to announce that Mr Richard Elman founder and CEO of global supply chain manager Noble Group will also join the Board as a non executive director.

Mr Simpson said that “Territory Resources has done the hard yards to get the flagship Frances Creek project up and running, and today it is one of only a handful of Australian iron ore exporters. We are focused on continuing to increase our production and shipping program at Frances Creek and capturing the immediate benefits of the strong iron ore prices for our shareholders, while also working to expand the resource base to drive longer term value.”

Mr Simpson said that “On behalf of the Board and staff at Territory, I would like to thank Michael for his contribution to the Company. He has played a key part in taking Territory into the ranks of iron ore producer and exporter. Territory has a strong and competent Board and management team place, which has been bolstered
with the addition of the global commodity and market experience of Mr Elman.”

Sumitomo Corp to inject JPY 30 billion into Assmang – Nikkei

The Nikkei without citing sources reported that Japanese trading house Sumitomo Corp is planning to invest an additional JPY 30 billion (USD 278.3 million) in South African mining company Assmang Ltd to bolster its ability to supply steel raw materials to Japan and other Asian nations.

Sumitomo said that the investment will be made via Oresteel Investment Ltd, which owns Assmang.

In January, Sumitomo acquired a 20% stake in Oresteel and has since raised it to 29%. The report said that by raising it again, to 49% this month, its effective interest in Assmang will rise from 8% to 13%.

The report added that the trading house's total investment in Oresteel will total JPY 45 billion one of the largest outlays in South Africa by a Japanese firm.

Assmang has several mines, with annual output of 6 million tonnes of iron ore, 3 million tonnes of manganese and 1 million tonnes of chrome.

Vietnam plans to up 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 tons. 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)

Mr Ghosn says soaring steel costs to drive up car prices

According to Mr Carlos Ghosn CEO of Nissan Motor Corporation, soaring steel costs will force consumers worldwide to pay higher prices for automobiles in the coming years.

Mr Ghosn has warned that surging raw material costs are eating into car makers' profits, even as rocketing fuel prices weigh on their sales, particularly those of large trucks and sports utility vehicles in the United States.

Mr Ghosn said that higher material prices are the single most important challenge facing the industry.” He added that "All car manufacturers will increase prices. It's a question of time. How can you not increase prices if the price of raw materials goes up 100%?"

Mr Ghosn said that steel makers were preparing to pass on the increased cost to automakers. He said that "It is a question of time before this comes and hits us. We have no choice but to increase prices."

He said that automakers will have to raise their prices by about two or three percent in 2008 if they want to offset the rising cost of raw materials.

Nissan has already announced price rises in the United States and Europe.

Al Jaber Group launches new PEB firm in UAE

Gulf News reported that Al Jaber Group has launched Dorce Middle East Prefabricated Buildings & Construction LLC, a subsidiary specialized in the manufacturing of modular buildings, accommodation containers, pre engineered steel construction buildings and villas.

The signing took place in Al Jaber Group head offices in Abu Dhabi between Mr Mohammad Al Jaber CEO of Al Jaber Group and Mr Suheyla Cebi Karahan VP of Dorce Middle East Prefabricated Building and Construction Industry Trade Inc.

A company said in a statement that "This new company, that will be the biggest in the UAE, is a new addition to the Group's wide range of industries. The announcement came as a result of a joint venture between Al Jaber Group and Dorce Prefabricated Building & Construction Industry Trade Inc of Turkey."

The new company will cater to the growing demands of prefabricated modular buildings especially in the contracting and construction sectors. The plant will have a huge production capacity that sets it as the biggest facility in the UAE. Supported by the tremendous logistics and transportation capabilities of Al Jaber Group, the new plant will deliver unmatched services to customers in the UAE and the region.

Established in 1970, Al Jaber is one of the leading business Groups in the UAE. Today it is a conglomerate with combined revenues of over USD 2 billion operating in a diverse range of activities enjoying leading positions in many of the sectors it operates.

Steel prices in Abu Dhabi 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.

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 angles from South Korea surged by 36.6% MoM from March 2008 to AED 4,400 per tonne.

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.

Erdemir hikes flat product prices

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.

(Sourced from www.steelprices-middleeast.com)

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.

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.

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.

Domestic steel prices in MEA

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

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

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

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

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

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

Steel producers express dismay over import duty protection

The News reported that the new budget, instead of resolving outstanding issues faced by the trade and industry, has created confusion and fear of losing the domestic market to importers in Pakistan.

Steel product producers have expressed dismay over the continued duty protection provided to the Pakistan Steel Mills. They said that the mill currently meets only 25% steel requirements of Pakistan and is operating at full production capacity. The prices of its products should be on a par with rates prevailing in the international market.

They said that the mill incorporates the impact of duty protection and import cost while evaluating its product prices, adding the engineering industry should not be held hostage to inefficiencies of the Pakistan Steel Mills.

The industrialists and importers also regret the 35% letter of credit margin imposed by the central bank in haste. The condition has now been withdrawn for industrial raw materials and parts after more than a month. They say the central bank should have done proper evaluation before imposing this condition.

(Sourced from The News)

Nabucco pipeline cost to increase on rising steel prices

Hurriyet reported that the cost of the Nabucco pipeline, which will bring natural gas from Caspian to Western Europe, is expected to rise by 70% to EUR 7.9 billion from the previous estimate of EUR 4.6 billion.

The rising costs and uncertainties over supply sources were seen as the most important challenges in the project. The project's previous cost, with a planned maximum capacity of 31 billion cubic meters per year, was estimated to cost around USD EUR 4.6 billion.

The Nabucco project is a planned 3,300 kilometers natural gas pipeline that will carry gas from Turkey to Austria, via Bulgaria, Romania and Hungary. The pipeline, which will be one third financed by the owners, and two thirds by banks, is meant to diversify and lessen Europe's dependence on Russian gas from 2013.

The project is being developed by the Nabucco Gas Pipeline International GmbH. The shareholders of the company are Austrian OMV, Hungarian MOL, Romanian Transgaz, Bulgarian Bulgargaz and Turkish BOTAS. German energy giant RWE became the project’s sixth partner in 2008.

Turkey ensures steel supply 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.

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.

Pakistani 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 and as such 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.

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.

ADPC inks MoU with Borouge for 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.

Shell to develop new pipelines to move gas from MEA to Europe

The National reported that Royal Dutch Shell is seeking a role in developing new pipelines to move gas from the Middle East to Europe through eastern Arab and Levantine states.

Such pipelines, if built, would widen the export options for Shell and other international oil companies that are jockeying for access to major oil and gas developments in Iraq, as that country seeks to rebuild energy infrastructure that has been severely damaged by decades of war and misrule.

Mr John Mills executive vice president of Shell’s gas & power division said that "The Middle East, which holds 40% of the world’s gas resources, is likely to play a role in filling the European gas supply gap. Countries like Turkey, Egypt, Jordan and Syria could play a key role in facilitating the transit of that gas. Companies like Shell can play a role in realizing this potential. We are ideally placed to help find and develop the gas, and structure the deals to make this all happen."

Mr Mills said that Shell was working with the governments of Syria and Iraq to develop master gas plans for their respective countries. Shell is also involved in negotiations with Baghdad for 2 of 6 service contracts to boost output from several large Iraqi oil fields that currently produce most of the country’s 2.5 million barrels a day of crude.

Other companies negotiating contracts with Baghdad included the French energy concern Total, the US oil enterprises, Exxon Mobil, Chevron and Anadarko, and the Anglo-Australian resources group, BHP Billiton.

Turkish rebar makers riding on construction boom in MEA

It is reported that the latest rebar deals from Turkey to Dubai have been at USD 1,460 per tonne to USD 1,475 per tonne CFR levels for July shipments. These levels are up by about USD 60 from the levels in the previous week.

As per market sources, Turkish rebar makers are likely to increase their offers to USD 1500 per tonne on CFR basis, which would be most probably accepted by the buyers as the domestic price levels are already touching AED 5750-6000 per tonne.

Some industry sources attribute this surge not only to cost pressures but strengthening demand for Blue and CARE certified Turkish rebars, as buyers are trying to tie up their requirements.

A Turkish trader told that Qatar Steel is looking to buy 200,000 tonnes of rebars from Turkey to feed the construction market in Qatar .

(Sourced from www.steelprices-middleeast.com)

Baosteel to own 80% stake in new Guangdong JV

It is reported that Baosteel Group Corp will take an 80% stake in a new CNY 35.9 billion JV in southern Guangdong Province amid a steel industry restructuring.

Their listed units said in statements that Shanghai based Baosteel will pay CNY 28.7 billion in cash for the stake in the new Guangdong Iron & Steel Group. Two local players, Shaoguan Iron & Steel Group and Guangzhou Iron & Steel Group will take the remainder by contributing CNY 7.2 billion worth of existing assets to the venture.

Mr Liu Baoyao GF Securities analyst said though Shaoguan and Guangzhou Steel may be affected in the short term, they could benefit in the long run given Baosteel's support in management, technology and iron ore procurement.

The NDRC has ordered 10 million tonnes of outdated annual steel making capacity be scraped in Guangdong in conjunction with the building of the new 10 million tonne Zhanjiang project which will increase Baosteel's capacity by a third.

The project reportedly would cost more than CNY 60 billion.

Jiangsu Jinhu County inks pact for 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 produces 453,200 tonne plates in 5 months

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 2.276 million tonnes steel, 1.897 million tonnes iron, 2.003 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.

Trends and levels of domestic steel prices in China

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

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

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

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

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

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

Masteel increase HDG 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 x 200mm x 8mm x12 meter H beam by Maanshan steel or Laiwu steel is being quoted at CNY 5630 per tonne, that for 300mm x 300mm x 10mm x 15 meter 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)

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."

Hebei Dongshan breaks ground for section rolling mill

It is reported that on 13th June, Hebei Dongshan Metallurgy Industry Company Limited held a ceremony for phase one of 1 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 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 1million 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)

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 of fuel gas system.

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 equipments manufacture and supply, Magang became one of the overseas main production base of Germany SMS Demag Company.

As per reports, the total weight of the large size metallurgical rolling mill reaches 403 tonnes and its manufacturing process is very complicated, demanding precision machining.

Baoji to ensure supply for West-East Natural Gas Project

It is reported that Baoji Petroleum Steel Pipe Company Limited helped its Sichuan based subsidiary Baoji Steel Pipe fight the difficulties arising after the quake and takes effective measures to recover the production and guarantee the steel output so as to ensure the second line construction of West east Natural Gas Transmission Project going smoothly.

The company is reported to have produced 34,000 tonnes of contract steel pipe and delivered some 49,000 tonnes in May, a hike of 2.75% and 4.01% respectively from the schedule.

Baoji Steel Pipe actively took part in the disaster relief and made great efforts to implement safety examination and rule out incipient faults to ensure the stable production.

(Sourced from MySteel.net)

Hengyang to produce 500,000 tonnes of steel tube in H1 2008

It is reported that Valin Group's Henan Hengyang Steel Tube Company Ltd is expected to produce 500,000 tonnes of steel tube and 527,000 tonnes of continuous casting steel billet in H1 2008 to achieve sales revenue of CNY 4.17 billion and profit of CNY 38 million.

Valin Group's Henan Hengyang Steel also plans to yield steel tube of 650,000 tonnes and crude steel of 600,000 tonnes in H2 of 2008 to reap sales revenue of over CNY 5.83 billion and profit of CNY 362 million.

As per report, in order to achieve its full year production target at the end of 2008, the steelmaker will have to churn out steel tube of 1.15 million tonnes, crude steel of 1.12 million tonnes, sales revenue of CNY 10 billion and profit of CNY 400 million.

(Sourced from MySteel.net)

Baosteel bags the title of "Advanced Energy Saving Unit of Shanghai"

It is reported that the appraisal for advanced energy saving units Shanghai 2007 was announced lately. 30 units including Baosteel Ltd won the title. 100 people won the title of "advanced individuals", including Mr Li Haiping deputy general manager of Baosteel Ltd and Mr Han Jing general superintendent of Environment & Resources Department.

As per report, the appraisal of advanced energy saving units and individuals Shanghai 2007 was carried out jointly by Shanghai Economic Committee, Shanghai Municipal Development & Reform Commission and Shanghai Personnel Bureau. All the winning units and individuals result from recommendation by the units and strict appraised by the appraising experts group.

Last year, Baosteel Ltd saw significant effect in energy saving and environment protection by strengthening integrated management: The sense of energy saving and environment protection of the employees was greatly improved as a result of strengthening of the responsibility system for indices on energy saving and environment protection, enhancement of fundamental management, and attention on process control. Baosteel Ltd. actively pushed forward the application of new technique and new technology for energy saving and environment protection.

The overall level of energy saving and environment protection of Baosteel Ltd was greatly upgraded as a lot of major energy saving and environment protection projects were constructed and put into operation, such projects as soaking furnace heat storage revamping of Baosteel Branch, the project of mixing converter gas in blast furnace air heater of Stainless Steel Branch, revamping of ladle drying of steel making plant of Special Steel Branch, etc. Last year, Baosteel Ltd. major energy saving and consumption reduction indices made the best historical record. Among the indices, per ton comprehensive energy consumption, per ton new water consumption, and energy consumption per CNY 10,000 production value saw the reduction of 2.12%, 15.29% and 10.08% respectively.

Pangang Group wins shareholders' approval for group listing

China Knowledge reported that Pangang Group has won approval from shareholders for its group listing plan.

According to the report, Mr Fan Zhengyi, chairman of Pangang Group said the plan of group listing aims to promote the development of Sichuan's steel industry, integrate preponderant resources and guarantee supply in the province, adding that the company aims to realize group listing within this year.

The deal has won nod from the State owned Assets Supervision and Administration Commission, but is still subject to approval from the China Securities Regulatory Commission.

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 starts 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.

Dry bulk shipping market expected to turn Normal

Shanghai Securities News reported that dry bulk shipping market is expected to turn normal as the 2008 benchmark iron ore price talk between Baosteel and Rio Tinto has winded up and may continue the uptrend in the third quarter following closing of the weak summer.

According to the report indicator of the international dry bulk shipping market BDI experienced a round of wide ups and downs since early April climbing to 11793 points by May 20 and having lost 8% on the single day June 12 before going stabilized.

A shipping analyst thought this was fabricated by the Australian miners, which expect to win more freight premium in the ore talks and had pushed up the BDI by chartering many carriers previously and released the shipping capacity later to regain a relatively stable future market when the ore price negotiation was closing.

China shipping person in an interview with Shanghai Securities News said with end of the talks, the speculation disappears and the BDI is commonly believed to go back normal. In July and August, the shipping market will have a dead season as usual, for grain export from South America is basically over and demand for heat coal stands low in summer. He said that the third quarter will see start of another demand peak as last year.

(Sourced from MySteel.net)

Tangshan Steel ink 15 years iron ore shipping contract

It is reported that Tangshan Steel signed a 15 year shipping contract for imported iron ore with Shandong Far East Marine Group on June 18th 2oo8.

Far East Marine Group is a comprehensive corporation mainly engaged in worldwide marine business. It is at all times dedicated to provide high quality service not only in the carriage of bulk, general cargo and container but also in the ship agency, ship management, crew manning, human resource management, international trade and financial investment etc.

As per report the group has inked an agreement with South Korea's C&Heavy Industries Company Limited. To build three new 180,000 tonne bulk cargo ships to better serve Tangshan Steel. This cooperation will help Tangshan Steel stabilize and optimize ocean shipping costs.

Mr Chu Jiandong deputy general manager of Shandong Far East Marine Group said if the steelmaker agreed for the cooperation he was eager for further cooperation between the two companies.

Chinese rebar and wire rod prices expect to increase in Q3

It is reported that rebar and wire rod prices have been in fluctuations since this June and downward corrections are expected to spread into next month. Current market situation has drawn much attention from steel dealers.

Mr Wu haiyun General Manager of Shanghai Baoqiao Materials informed Mysteel that construction steel market is currently in a dull period and such fluctuations is quite reasonable and also predicable. He said that the flood and suspension of construction activities around Beijing are two major reasons. The heavy rain in South China led to flood and the catastrophe has brought a great loss of RMB26 billion till now. To make things worse, such situation is expected to sustain for at least another three to four weeks. There will be less demand in flood hit area and price drop is quite reasonable.

Mr Wu said "Though construction steel market is to remain in a dull period in June, prices are forecast to resume upward trend again in July or August.”

The following facts are regarded as to be supporting his opinions.

1. There is no pressure of oversupply since construction steel output does not see great increase. Total rebar output for Jan-May period is 39.21 million ton and that for rebar is 33.13 million ton, down 1.2% and up 6.9% respectively. The remarkable increase in demand and small growth in production is a solid support for strength of steel price. The production is expected to grow slowly due to output cut in North China and increasing cost. The tension of short supply would be more evident in Q3.

2. China is still facing with rising inflation and the central government would make measures to control the swift rise in price and relieve inflation fever. If CPI reaches 10%, average steel price is expected to exceed CNY 6000 per tonne while 15% would mean CNY 7000 per tonne and up. This could be verified by the situation is Vietnam, where rebar price ever reached USD 1400 per tonne when its inflation rate is about 25%.

As per report to sum up, construction steel prices would remain fluctuating in June and steel producers would also lower ex works prices. However, prices are still expected to rebound in summer or even hit new high in H2.

(Sourced from MySteel.net)

HRC market price slow down

According to Mr Li Zhongshuang GM of Shanghai Ruikun Metal Material Co, the HRC market appears sluggish in the recent period with price vibration and weaker transaction.

According to the survey Ruikun has made, SPHC thin gauges fell by CNY 80 per tonne to CNY 100 per tonne a week before, while the thick gauges lost CNY 150 per tonne.

Traders and industry persons gave some main reasons to explain why the HRC has moved downward recently as follows.

1. There are signs of increasing resource with successive new arrivals and existing inventory not consumed. Latest data shows the nation's HR sheet/plate output is at 9.4463 million tonnes in May up by 31.26%.

2. Demand comes down distinctively in the traditional weak season for consumption, coupled with the rainstorm in South China that has suspended a batch of construction projects.

3. Lack of capital and poor sentiment push the traders to cut the price and withdraw money for ordering of next month.

4. Uncertainties on the international market, such as forthcoming summer holiday in Europe, export from Vietnam, increasing inventory in South Korea plants and loosened price offered by the US steelmakers in the mid West.

The traders think all above reasons will keep the HRC market in vibrations like present, further considering a list of supportive factors incl. solid materials cost, hiked oil and electricity prices and possibility of further EXW price rise in August.
(Sourced from MySteel.net)

China decided to imposed taxes on tungsten, lead zinc and copper ores

It is reported that the Treasury Department of the State Administration of Taxation of China decided lately to raise resource taxes on tungsten, lead zinc and copper ores since August 1st. It is the first big tax correction of the three materials since the launch of resource tax in 1994 in China. The announcement will be published in days to come, as learned from the Administration.

As per report amid this correction, lead zinc ore and copper ore from first grade mines will be lifted to CNY 20 per tonne from CNY 4 per tonne and CNY 7 per tonne from CNY 1.6 per tonne respectively and tungsten ore from third grade mines will be hiked to CNY 9 per tonne from CNY 0.6 per tonne. This upward correction is fueled by the pressure from energy saving and pollutant reduction.

An analyst in the industry said that "These three ores are very short in China. This move is a clear sign that the government intends to protect the environment and resources and restrain the fast growing supply of resources to the upstream sectors."

He said that the correction will definitely increase the prospecting cost of the ore resources. He added that lead zinc and tungsten enterprises will not be impacted too much, while copper companies will get affected, an insider observed. The tax increase may push the cost of copper making up by CNY 1000 per tonne. But the profits of these mining enterprises will not be reduced a lot because of the comparatively higher returns of this sector.

Currently, China's domestic copper output is about 650,000 tonnes while home demand reaches 3.8 million tonnes, most of which are met by import. As nowadays international prices of minerals stand stable, so the cost gains of copper miners will basically not pass on to the downstream sectors.

(Sourced from MySteel.net)

Chinese coke export statistics

It is reported that China coke export to different countries reaches 1,663,100 tonnes in May 2008 with US topping at 376,226 tonnes.

China coke export to different countries is as under

(Volume in tones)
(Sourced from MySteel.net)

REMP to start section mill in mid 2009

Interfax South reported that Rostov Electrometallurgical Plant LLC belonging to ESTAR Holding will complete installation of a rolling mill by the middle of 2009 and will start production of building bars.

Mr Vadim Varshavski a co owner of the holding said that “The expenses for rolling production will be about RUB 1.5 billion more.”

He specified that as of May 1st 2008 the investments to REMP construction totaled RUB 6.6 billion. He also said that next September REMP will achieve the design output of melted steel. Currently the facility uses 40% of its design capacity.

In June 2005 ESTAR GROUP started construction of an electrometallurgical plant in Shakhty City, Rostov Region. January 2008 saw the commercial melt. The design capacity of the facility is 730,000 tonnes of melted steel.

Billet and wire rods FOB Black Sea prices strengthen last week

In USD FOB Black Sea

(Sourced from www.steelprices-india.com)

TMK names more banks for Eurobond offering

Interfax reported that TMK has named the banks Natixis, Nomura International Plc, BNP Paribas, Mitsubishi UFJ Securities International Plc, Renaissance Securities Limited and Royal Bank of Scotland Plc as arrangers of a Eurobond offering.

The report added that Barclays, UBS, ING and ABN Amro are the mandated lead arrangers for the placement of USD 600 million in bonds.

A market source told Interfax that the bonds would be offered this week.

Gazprom opposed to gas OPEC - Mr Miller

Reuter cited Mr Alexei Miller head of Russian gas giant Gazprom as saying that an OPEC-style gas charter is not feasible as its oil equivalent is failing in its original task of regulating prices.

He