SAIL RDCIS develops rock bolt quality TMT rebars

Ranchi Express reported that Steel Authority of India Limited’s Research & Development Centre for Iron & Steel has developed a new grade of rock bolt quality TMT rebars which is used extensively to support overhead rock mass in underground mines, in tunnels in various strata and securing rocks in hilly areas.

Mr Biswajit Roy chief of communication at Research & Development Centre for Iron & Steel said that the newly developed product in 20mm size is put into operation as roof bolts in Korba area of SECL in collaboration with CMPDI on a trial basis. He added that field tests conducted at the site revealed that new bolts performed much better and could carry 17 tonnes against 11.5 tonnes by the existing bolts.

Besides supplying the newly developed bars to BCCL and UCIL, the same has also been supplied to JP Hydro recently for their project at Karcham in J&K.

Mr RS Pandey receives United Nations Public Service Award

Mr RS Pandey secretary of Indian ministry of steel has received the prestigious United Nations Public Service Award for a unique program of communitization of public institutions & services in Nagaland. The award was presented at the UN Head Quarters in New York to mark the Public Service Day.

The program was conceptualized and implemented by Mr Pandey during 2002-04 when he was chief secretary to government of Nagaland. The program has resulted in significant improvement in government provided basic services in the area of elementary education, public health and power utilities.

Mr Pandey has also won the Civil Service Award for his contribution to governance through this innovative program. He headed a 3 member delegation including the present chief secretary to government of Nagaland Mr Lalhuma and Mr V Sakhri secretary to government of Nagaland which received the Award. The Award consists of a trophy and a certificate.
There are 12 winners from different parts of the world this year including the communitization program from India. The award is considered as the most prestigious recognition of excellence in the public services.

NMDC backed SIIL plans big on expansion

The Hindu reported that Paloncha based Sponge Iron India Limited would emerge as an integrated steel plant to produce 250,000 tonnes of steel per annum once the expansion program was completed.

Mr VK Uppal CMD of SIIL said that moves were afoot for completing the process of merger of SIIL with the NMDC well ahead of the 6 months schedule given by the union government.

He added that NMDC had provided INR 325 crore for the expansion of the SIIL which was likely to cost about INR 370 crore. Quoting the NMDC authorities, he said that “There is no dearth of money for the expansion of the SIIL. The cost of the entire expansion program would be borne by the NMDC after the completion of the process of merger which started in 2005.”

The expansion program would be completed by 2010. The NMDC would also spend huge amounts on corporate social responsibility schemes for the welfare of the people living around the plant.

The cabinet approved the proposal for merger of SIIL with the NMDC on May 22nd 2007. It would be the major steel project via the sponge iron route once it was completed.

FDI to fall short by USD 8 billion in 2008-09 – ASSOCHAM

According to a survey of CEOs conducted under the aegis of Associated Chambers of Commerce & Industry of India, India’s ambitious target to receive USD 35 billion of foreign direct investments in fiscal 2008-09 is likely to fall short by USD 7 to 8 billion due to global slowdown and continued volatility on its economic and political front.

The survey in which 400 CEOs opinions were polled on realistic assessment of FDI’s inflow towards India, 350 CEOs said that India could optimally receive about USD 28 billion in 2008-09 against the target of USD 35 billion.

The reasons cited for lower FDI’s include adverse sentiments in the stock market, bottlenecks on infrastructure, government inability to sign nuclear deal, no initiatives on disinvestments, rising interest rates and volatility on economic and political front because of inflation and forthcoming elections.

Releasing the survey, Mr Sajjan Jindal president of ASSOCHAM said that The financial year 2008-09 has begun with difficult time in which the inflationary pressures mounted beyond manageable limits, the adverse impact of which on Indian Inc has been substantial in the sense that the yearly profitability of Indian industry would suffer a beating to an extent of 15% to 20%.”

It may be mentioned that the ministry of commerce had set the target of FDI’s in last fiscal for USD 30 billion of which, the total FDI receive were to the tune of about USD 25 billion. Ever since, the economy was opened up in July 1991, in the last 17 years, the total FDI’s received are estimated around USD 61 billion.

Kamdhenu Ispat sets up TMT plant in Nepal

BL reported that Kamdhenu Ispat Limited has set up its first plant in Nepal jointly with Maruti Nandan Rolling Mills as its local partner.

According to the agreement, Kamdhenu would provide technology for manufacture of TMT steel bars to Maruti Nandan, which would manufacture the bars and the product would be marketed under Kamdhenu brand name.

The report added that currently, the demand for construction steel in Nepal is about 500,000 tonnes annually, of which TMT bars account for around 300,000 tonnes.

Jindal Saw to set up ship building yard in Gujarat

ET reported that, in a major diversification drive, Jindal Saw Limited is planning to set up India’s first ship building and repair hub in Gujarat with an investment of over USD 2 billion. The hub will be a part of the proposed India Maritime Technology Park. It would also produce various equipments for ships, shipyards and ports and terminals in association with overseas partners.

As per the plan, the facility would be developed in 3 phases. The first phase would involve an investment of about INR 2,000 crore and creation of facilities to build 15 vessels of 15,000 tonne capacity and 10 vessels of 5,000 tonne capacity. Panamax vessels of 85,000 tonnes would be made at the facility in the third phase. The entire activity is expected to be completed in 7 years’ time.

Mr Indresh Batra MD of JSL said that "We want to become a complete integrated logistics solution provider which not only offers services but also possesses assets enabling a better delivery. In this regard, a ship-building facility is being considered at our proposed IMTP near Dahej in Gujarat. While this would be a commercial facility for customers outside the JSL, it would also support the group’s waterway activities under which 6 vessels are already offering their services to customers."

This initiative would be undertaken by a newly set up company Jindal Shipyards that is part of infrastructure holding arm of JSL, Jindal Infrastructure Transportation & Fabrication. The first vessel from the facility is expected to roll out in the last quarter of 2010. JSL has already roped in CSE Dastec, part of China’s largest ship building organization CSE for design and production process support. China’s leading shipyard design institute NRDI has provided the master plan for IMTP.

SAIL may increase prices after July

Mr SK Roongta chairman of Steel Authority of India Limited during an interview with BL said that a rise in steel prices would be inevitable after July 2008.

He said that "We have committed to the government to hold the prices until July 2008. To what extent and when exactly we will be raising the prices is difficult to say now."

Mr Roongta said that SAIL’s cost advantages did not mean that it should be penalized. He said that "If I am a high cost producer and the market prices are low, then nobody is going to take a look at my costs and pay me a higher price. If we have come to this stage, we have done so through various efforts. Last year, our capacity utilization was 118% and the benefits of our efficiency should accrue to us."

Mr Roongta also pointed out that for a good 32 years out of SAIL’s 50 years of existence, it was forced to sell products at administered prices which some times did not even cover costs.

PSL Limited 2007-08 revenues up by 40% YoY

PSL Limited has announced its audited financial results for the financial year ending March 31st 2008.

Highlights of financial performance in 2007-08 fiscal is as follows
1. Revenues up by 40% YoY to INR 2,261 crore from INR 1608 crore
2. PBT up by 44% YoY to INR 124 crore from INR 86 crore
3. PAT up by 36% YoY to INR 84 crore from INR 62 crore

Commenting on the performance for 2007-08 fiscal, Mr Ashok Punj MD of PSL Limited said that "I am happy to announce that we have registered healthy growth in this year owing to a healthy order execution, and are on a firm wicket to deliver stronger performance in the coming financial year on the back of our robust order book position. It has been an eventful year wherein which we not only received many orders of high value, but also implemented plans strengthening our global operations."

Mr Punj said that "Further, 2008-09 fiscal has commenced on a strong note where we have bagged many prestigious orders, and I am glad to add that the pipeline for new orders remains buoyant in both the domestic and international markets."

He further added that "The outlook of our business continues to remain buoyant with large number of pipeline projects planned and executed world wide including India. The oil and gas pipeline infrastructure story remains extremely positive with crude touching all time highs. We are equally bullish on the water pipeline infrastructure and expect it to generate huge demand in the next 2 years. In effect, we are in an ideal position to benefit from this demand given our high level of capacity preparedness and execution capability."

Domestic steel pricing trends for steel users 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.

Electrosteel Castings 2007-08 turnover up by 18.5% YoY

Electrosteel Castings Limited has posted an 18.5% YoY increase in its turnover to INR 1,331 crore for 2007-08 fiscal from INR 1,123 crore in 2006-07 fiscal. Profits were impacted by increase in iron ore and coal prices internationally. Consequently, profit before tax and exceptional item for 2007-08 fiscal has declined by 30% YoY to INR 110.65 crore from INR 158.42 crore in 2006-07 fiscal.

For the January to March 2008 quarter, it recorded turnover of INR 415.29 crore up by 33.4% YoY as compared to INR 311.11 crore during January to March 2007 quarter. Profit before tax was posted at INR 28.94 crore as against INR 36.57 crore. The profit after tax was artificially reduced by INR 60.20 crore to INR 20.60 due to a provision necessitated by the announcement made by the Institute of Chartered Accountants of India on account of mark to market losses on foreign exchange derivative contracts.

The production of DI pipes at 214,956 tonnes declined by 6.6% YoY primarily due to plant shutdown necessitated by unseasoned flooding and relining of blast furnace. This was partially offset by higher production of CI pipes to the extent of 20% and a rise of 35% in production of DI fittings to 4,654 tonnes.

The industry faced unprecedented increase in iron ore and coal or coke prices in addition to the significant increases in other raw material prices. During the latter half of the year, it was able to increase product prices to partially compensate the increase in raw material prices, resulting in an increase in realization. Adverse movements in the international FOREX markets affected the company’s foreign exchange exposures.

Essar Shipping plans to set up overseas ports

ET reported that Essar Shipping, Ports & Logistics Limited is planning to set up ports in Brazil, China and Vietnam to provide integrated support for its steel and power generation businesses there. Apart from catering to its own requirements, these ports will offer their services to other players, for better commercial viability.

Mr Sanjay Mehta MD of ESPLL said that "To achieve geographical spread for our businesses, we are planning to set up ports in countries where Essar group already has businesses. As part of Essar’s global strategy, we are looking at countries like China, Vietnam and Brazil."

He added that "There is growing importance for non major ports owing to capacity constraints at major ports. Thus, we are looking for an option in the eastern coast to set up a port and a container terminal."

Apart from India and the US, Essar has a steel plant in Indonesia with a 400,000 tonne cold rolling facility and a 1,50,000 tonne galvanizing facility. It is also putting up Greenfield projects in Vietnam with an annual capacity of 2 million tonnes.

ESPLL is also planning to build an integrated terminal facility at Salaya in Gujarat for handling coal and pet coke used in power plants. At Hazira, Essar is constructing an all weather deep draft port capable of handling up to 1,05,000 DWT bulk carriers to import iron ore, pellets, coal, limestone etc and export finished steel products.

SAIL RSP gifts ambulance as part of CSR initiative

SNS reported that Mr BN Singh MD of Steel Authority of India Limited’s Rourkela Steel Plant has handed over an ambulance to Deepika Mahila Sanghati, a leading philanthropic organization as a part of its corporate social responsibility initiative.

The ambulance provided, will be used by the organization for its various medical and health care activities. Mrs Shakuntala Singh president of the organization, along with many other senior officials and members of the Sanghati were present at the occasion.

After donating the ambulance, Mr Singh also visited the various new facilities added to the Sanghati recently including an altruistic help centre and support systems for educational, vocational, recreational and medical fields along with women’s welfare. He also interacted with the members about their endeavors in each of their fields of expertise.

The organization has earned a name for itself as one devoted to the cause of the marginalized sections of the society. In order to provide health care facilities to slum dwellers, the organization regularly holds health awareness and check up camps.

The organization in association with RSP is now conducting weekly medical camps at Raghubar Tola of Lathikata block. Apart from this, medical camps are being organized every week, within the premises of the Sanghati, for the underprivileged people of the town.

Essar Shipping arm lines up 3rd party logistics foray

It is reported that, with plans to become an integrated logistics provider, Essar Shipping Ports & Logistics Limited is plans to venture into third party logistics services. It is adding capacity and assets to scale up operations in all its verticals, namely shipping, ports, terminals and logistics.

The ports, terminals and logistics divisions of ESPLL are currently used for captive requirements of group companies namely Essar Steel, Essar Oil and Essar Power. This makes the logistics division confident of scaling up its operations to meet the demands of other clients, which would mainly be oil and power companies looking at similar transport facilities for their raw and finished materials.

Mr AR Ramakrishnan CEO of ESPLL said that "We have the domain knowledge, as we are already doing the work for our companies and on a big scale, which gives us the opportunity to look at third party work."

ESPLL has also lined up an INR 10,000 crore expansion plan in the next 3 to 5 years. The ports and terminals division will raise capacity from 10.50 million tonnes per annum to 34 million tonnes per annum with an investment of INR 4,354 crore. Besides, it will invest USD 965 million to add bulk and tanker fleet.

To make it an end to end solutions provider, Essar Shipping went into reorganizing and consolidating its business early this year. It proposes to merge itself with the oilfield services and port or terminal businesses run by the group companies.

TATA Nano hurt by rising steel prices – Report

It is reported that TATA Motors has decided to absorb a significant portion of the cost increase of its Nano vendors. As a result of severe pressure put by the vendors on TATA Motors, it has agreed to foot the cost difference that has risen as a result of increased steel prices.

The nearly 50% to 60% increase in steel prices since 2007 has pinched vendors, particularly forging companies and most are renegotiating contracts with auto original equipment manufacturers. These parts makers are also battling the 40% increase in prices of furnace oil, used extensively in the forging process. Forging components comprise roughly 15% to 20% of the total input cost of a car.

A vendor supplying engine head block for TATA Nano said that "There has been some relief from TATA Motors on raw material prices. They have agreed to some concession cushion due to the steep increase in prices of steel, aluminum and other alloys. We are also concerned about energy prices, which have seen major increase in the recent past, and will factor in the changes in our future long term negotiations with automobile companies."

Mr Nirmal Minda MD of Minda Industries said that not all vendors will get relief immediately though. The decision is a promise for some cushion depending on when the parts go on stream. He added that "The changes in raw material prices have left us with no option but to ask all OEMs to absorb part of the increase. We are in discussions with TATA Motors for Nano and its other models to approve some variation in prices. The company has involved us in the value engineering of Nano and we are looking at some concessions once Nano is close to production."

TATA Power and RPL projects get CRZ nod for coal jetties

FE reported that, even as TATA Power and Reliance Power Limited have expressed their inability to commission first unit of their 1,600 MW and 4,000 MW power projects in Maharashtra by 2009 due to delays in land acquisition process, the companies have received a major relief after the ministry of environment & forests has granted Coastal Regulatory Zone clearances for exclusive coal jetties.

While granting the CRZ clearance, the ministry of environment & forests has laid down certain conditions, which needs to be complied by TATA Power and Reliance Power. The duo would have to carry out capital dredging and the dredged material would be used for leveling and filling of the project area.

Maintenance dredging alongside the berths and cooling channel intake would be carried out in consultation with the Maharashtra Maritime Board and the dredged material would be disposed of at the site approved by the board.

TATA Power plans to construct a captive coal berth and cooling water intake and outfall structures for the proposed power plant near Dehrand or Shahapur in Maharashtra. The proposed coal berth would serve as a captive facility to unload low sulphur and low calorific value imported coal to meet the feedstock requirements of the power project.

On the other hand, Reliance Power proposes to develop a comprehensive jetty project which involves a captive jetty for importing coal by lighterage operations from the Mumbai outer harbor, a roll on roll off berth for unloading power plant equipment, an enclosed conveyer system to convey coal from the jetty location to the stackyard, piping for effluent discharge and gas intake, and power transmission lines.

Binani Cement set to buy African firm for USD 100 million

ET reported that Binani Cement is close to acquiring an African cement company for around USD 100 million. The report added that Binani will be raising USD 125 million to fund the acquisition which is likely to be sealed by the end of current calendar year.

Mr Vinod Juneja deputy MD of Binani Group said that "We are analyzing buyout options in South Africa but nothing has been finalized yet. We will inform stock exchanges at the proper time if any arrangements are finalized."

Mr Juneja accepted that the board has agreed to raise funds worth USD 125 million and that merchant bankers are working on fund raising and overseas acquisition. It is increasing focus overseas market and likely to take the inorganic route. Moreover, it is setting up 2 grinding units overseas, one in Mauritius and the other one either in the Ivory Coast, Ghana or Nigeria.

Vicat forms 51:49 JV with Sagar Cements

French cement maker Vicat has formed a 51:49 JV with Sagar Cements to build a USD 625 million cement plant at Gulbarga in Karnataka.

The plant will have a 5.5 million tonnes per annum cement grinding unit a 4 million tonnes per annum clinkerization unit. The project will include a 60 MW thermal power plant.

Production is expected to start in 2012.

Ennore Port launches ship to ship operation

BS reported that Ennore Port for the first time has carried out ship to ship operation in its outer anchorage. The port has transferred 22,500 million tonnes of LPG from a big ship to another small ship. The mother vessel LPG carrier Flanders Tenacity transferred 12,000 million tonnes of Butane and 10,500 million tonnes of Propane to LPG carrier Oriental Queen.

Mr S Velumani CMD of Ennore Port Limited said that the STS operation of LPG is another step in this direction for increasing the throughput of the port.

The operation was carried out in a designated anchorage area, which has been notified by the Chennai customs. The port, which has been handling mainly thermal coal for the Tamil Nadu Electricity Board at its 2 dedicated coal berths, is trying to attract various other cargoes through temporary handling facilities.

Rising input costs and price control hurting small cement makers

BS reported that the INR 85,000 crore India’s domestic cement industry will have to move towards consolidation as rising input costs and price controls squeeze profits, rendering the small cement manufacturers unviable.

Mr RC Gupta president of Mangalam Cement said that "Smaller players will either have to merge with larger companies or they will be taken away by foreign firms." He added that in the short term, it might be a setback for the industry, but in the long term it would augur well.

North Frontier Railway freight traffic in 2 months up by 28% YoY

BL reported that, in April to May 2008 period, North Frontier Railway has handled a total originating freight traffic of 2.27 million tonnes up by 28% YoY as compared with 1.77 million tonnes in April to May 2007 period. The target of 2.2 million tonnes, set by railway board for the period, was thus surpassed. The freight earning during the period amounted to INR 268.93 crore as against INR 217.77 crore.

During the April to May 2008 period, NFR carried 9.626 million passengers as against 9.064 million passengers. The earnings from the passenger traffic amounted to INR 103.19 crore as against INR 94.38 crore.

Tuticorin Port seeks better rail connectivity

BL reported that Tuticorin Port Trust has stressed on the need for the railways to lay down a separate siding in Hare Island area where the port is planning to develop a warehousing zone for storing bulk cargo.

Mr Rakesh Chopra GM of Southern Railway, along with senior railway officials visited the port recently and held discussions with Mr K Suresh chairman of TPT and senior port officials over the infrastructure development to plan appropriate projects of rail connectivity to give a fillip to transportation of cargo and containers.

Mr A Subbiah deputy chairman of TPT has explained the inner harbor development program currently under implementation under the National Maritime Development Program, Phase I, to augment the existing port capacity from 20.55 million tonnes to 42 million tonnes by the end of the 11th Plan.

He also highlighted the outer harbor plan of the Port at an outlay of INR 4,350 crore to increase the port capacity by an additional 45 million tonnes and also the approval of the government for deepening the approach channel and the basin in the inner harbor to cater to vessels with 12.8 meter draft.

By 2027, Indian Railways is expected to have 20% share in the movement of the projected volume, handling 2.6 million TEUs and 10% share in the movement of the projected bulk cargo handling at 20.7 million tonnes was also pointed out.

Trade union suggest land reclamation by dredged silt at Kochi Port

BL reported that Cochin Thuramugha Thozilali Union, one of the trade unions in Kochi Port, has questioned the advisability of disposing of the entire capital dredging materials in far away dumping locations in the outer sea. The union suggested that the disposed dredging material could be effectively used for land reclamation in the port area as was done in earlier project schemes.

In a letter sent to the port chairman, Mr KN Vasudevan joint secretary of the union has pointed out that there is immense potential for land reclamation by using the maximum possible dredged material taken out from the capital dredging in the channel. Around 30 hectares of land can be reclaimed with one million cubic meters of dredged material.

Mr Vasudevan said that the international container transshipment terminal project report envisages a capital dredging to the tune of 26.50 million cubic meters. If 10 million cubic meters out of the projected quantity can be used for land reclamation, the port will get vast land area in the vicinity with excellent road and rail connectivity. He added that "The proposed reclamation scheme will result in considerable reduction in the project cost, thereby making it financially viable. Moreover, this will cause substantial reduction in annual maintenance dredging in the years to come."

Mr N Ramachandran chairman of Kochi Port said that there is nothing new in the proposal of the union, as there is already a proposal in the National Maritime Development Program for land reclamation by using the dredged materials. The NMDP report suggested creation of an island near the BOT bridge to control the flow of water and regulate the siltation in the channel.

He also pointed out that land reclamation with dredged materials was possible only in certain areas where there is a good availability of sand from the silt. He added that "But 95% of the dredged materials in the port channel consist of silt, which could not be used for reclamation purpose. Moreover, there are some restrictions imposed by the union environment ministry for further land reclamation in the backwater area."

Reliance Infra bags INR 12,000 crore EPC deal for Sasan UMPP

BS reported that Reliance Infrastructure Limited has bagged the INR 12,000 crore engineering, procurement and construction contract for the 3,960 MW Sasan ultra mega power project of group company Reliance Power.

Reliance Infrastructure will complete the first plant of the 6X660 MW project within 42 months and the remaining 5 will be commissioned with an interval of 3 months. Reliance Infrastructure's EPC division is currently executing 3 power projects. It is also the EPC contractor for the 4,000 MW Krishnapatanam project, the second UMPP bagged by Reliance Power.

Reliance Power had been in consultation with several international players to finalize the EPC contract. While most players were not willing to complete the project within the time frame suggested by Reliance Power, the group company offered to complete the project within a year ahead of the scheduled 60 months since awarding the contract.

The Sasan UMPP is among the first of the nine UMPPs planned in India and is scheduled to be fully commissioned with an expenditure of over INR 18,000 crore. Sasan Power Limited has about 750 million tonnes of coal reserves to fuel the pit head based project.

Reliance Power is involved in developing 13 power projects with a combined installed capacity of 28,200 MW, including Sasan and Krishnapattanam UMPPs.

Gammon Dragados consortium begins work on Mumbai offshore project

It is reported that Gammon Dragados consortium has started work on the Mumbai offshore container terminal. The two companies have floated a special purpose vehicle called Indira Container Terminal in which they will each have a 50% stake.

The consortium will spend INR 800 crore in the initial phase of 3 years and another INR 400 crore subsequently, thus aggregating to about INR 1,200 crore.

While the consortium will build the terminal, the port will provide supporting infrastructure such as dredging and navigational aids and the laying of tracks for a rail container depot. The project, to be developed on BOT basis is expected to be completed within three years.

India to rebuild Sittwee Port ahead of schedule

Mr Jairam Ramesh union minister of state for commerce & power said that India would complete the prestigious project of rebuilding and expanding the Sittwee port in the Arakan region of Myanmar on the Bay of Bengal in four years by 2012, one year ahead of the current estimated schedule.

Mr Ramesh, leading a high level official delegation, has visited the Sittwe port in Myanmar, which India is rebuilding and expanding as part of the Kaladan multimodal transit cum transport project.

Mr Ramesh said that an additional component of the project will be the highway connecting the border point in Mizoram to NH 54, for which the NHAI will take up the work as the Kaladan project commences. He added that IWAI has already received nine bids from reputed consulting firms for engagement as engineering consultants and the final choice will be made by the first week of September 2008, after which work on the Kaladan project will commence in full swing.

This project comprises four components
1. Rebuilding the infrastructure at Sittwe port
2. Making the Kaladan River commercially navigable for a stretch of 225 kilometers up to Kaletwa in Myanmar
3. Building infrastructure at Kaletwa
4. Constructing a 62 kilometers long highway from Kaletwa to Mizoram

Thus, the Kaladan project is of vital strategic importance to India since it provides an alternative access route to the north east. The sea distance between Kolkata and Sittwe is about 540 kilometers.

The project will also provide for greater connectivity between the north east and ASEAN countries. Inland Waterway Authority of India is the project development consultant and the entire cost of around INR 546 crore is being borne by the government of India.

Assam sets up new power projects to meet demand by 2012

Mr Pradyut Bordoloi power minister of Assam said that the power requirement in Assam will climb to at least by 2,000 MW by the year 2012 and keeping this in mind, the state government has taken up several new power projects, mostly joint ventures, to meet the requirement and to reduce the dependence on power procured from different other agencies.

Mr Bordoloi revealed that the peak period demand of power in the state at present is around 900 MW, but this is a suppressed demand as the Assam State Electricity Board and its subsidiary companies have not been able to provide power to the consumers as per requirement. He said that with industrial development and taking up of rural electrification scheme, the power requirement is increasing with every passing day and it is high time the state takes up new power projects on war footing to meet the requirement.

He said that the state government has been demanding Assam should get all the power to be produced in the 750 MW thermal power project being set up by the National Thermal Power Corporation in Bongaigaon. The state government is monitoring the progress of setting up of the project and 2 units of the project are likely to be commissioned by the year 2011.

NTPC will use coal from the coalfields of Upper Assam in the project. Efforts are on to revive the 60 MW Chandrapur thermal power project, which was closed down in 1999 following sharp increase of the price of furnace oil. The project is now being converted into a coal based project.

The pre feasibility report of 200 MW Amguri power project is ready and for the setting up of the same, the state government would have to generate funds, if necessary by taking loans. On the other hand, a 38-MW waste heat project at Lakwa is likely to be commissioned by the end of this year.

Mr Bordoloi admitted that over the years, the experience of Assam in setting up of power projects was not very encouraging as the Karbi Langpi project took more than 20 years to complete. He asserted that the government wants the projects in the pipeline to be completed by the year 2012 to meet the requirement of the state and to reduce the dependence on others.

Pencil ingot prices surge by 7.6% in last 10 days in Mumbai

Mumbai market has seen a big jump in the prices of pencil ingot in last 10 days, after a spurt today

Pencil ingot

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

On the other hand, melting scrap has not increased in similar proportion
Melting scrap
80:20

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

(Sourced from www.steelprices-india.com)

Steel users must see new reality in prices – Mr Mittal

Bloomberg quoted Mr LN Mittal CEO & chairman of ArcelorMittal as saying that steel users will have to adjust to the new reality and the new pricing environment for the metal as producers recover higher costs for raw materials.

Mr Mittal in an interview in New York, without saying how much prices will rise, said that “Steel cannot be supplied at a loss, which means that steel prices will have to be increased.”

He added that price increases will depend on the cost of coal and iron ore.

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

Sims Group to sells distribution business

AAP reported that Sims Group Ltd, 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.

Delphi settles surcharge dispute with ThyssenKrupp

Bloomberg reported that Delphi Corp a bankrupt automotive parts maker has settled a dispute with a division of supplier ThyssenKrupp AG over demands that Delphi pay a monthly surcharge to cover rising steel costs.

Delphi said Germany's ThyssenKrupp added the fee in April on brake components it makes for the Troy, Michigan based company. Delphi had been paying a quarterly steel surcharge and sued last week to prevent ThyssenKrupp from halting shipments should Delphi refuse to pay the new rate.

Mr Charles Brown a Delphi attorney in an interview said that “We have resolved the dispute and the complaint is being dismissed.”

Delphi alleged in the suit, filed June 20 in US District Court in Michigan that “ThyssenKrupp approached Delphi and threatened to terminate its supply of the parts unless Delphi agreed to move from quarterly to monthly surcharge adjustments.”

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.”

ArcelorMittal seeking approval to build 2 steel plants in Indonesia

Thomson Financial reported that ArcelorMittal is seeking license from the Indonesian government to build two multi billion dollar steel plants in Indonesia.

The report quoted Mr Muhammad Lutfi head of Indonesia's National Investment Coordinating Board as saying that "ArcelorMittal executives came to my office last week. They said they will go ahead and invest in this country, whether the privatization of Krakatau Steel happens or not.”

Mr Lufti added that "ArcelorMittal asked for a license to build two steel plants, one in Banten in the western part of Java and one in the East Java town of Pasuruan.”

ArcelorMittal had earlier offered to buy a 49% stake in state owned steelmaker PT Krakatau Steel if the government were to proceed with a plan to divest the company through a strategic sale. But the plan for a strategic sale, however, sparked widespread protests from the Krakatau Steel workers' union, supported by some quarters of society. They called on the government to privatize Krakatau Steel through an initial public offering.

Electric furnaces raise ferrous scrap buy price in Tokyo

JMB reported that electric furnace steel makers around Tokyo increased the ferrous scrap purchase price by JPY 1,000 to JPY 68,000 to JPY 70,500 per tonne in the week.

The report added Tokyo furnace steel makers producers are forced to increase the price to secure the requirement under tight supply.

Chung Hung Steel 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)

Hundai Heavy May sales jump by 16%

Business Times Singapore reported that Hyundai Heavy Industries Co sales in May 2008 up by 16% as it completed orders for oil tankers and container vessels contracted at higher prices.

Hyundai Heavy in a regulatory filing said that shipyards in South Korea are expanding capacity as order backlogs stretch into 2012 Sales advanced to KRW 1.55 trillion (USD 2 billion) in May 2008 from KRW 1.33 trillion in May 2007. It said that new orders rose 15% to USD 3.55 billion in May 2008.

Hyundai Heavy said that sales climbed 19% to KRW 7.48 trillion in the first five months of the year and the new orders in the period almost doubled to USD 16.1 billion from USD 8.14 billion a year earlier. Of that total, vessel contracts climbed 87% to USD 9.34 billion and contracts for offshore oil rigs and platforms jumped to USD 1.68 billion from USD 82 million a year earlier. The company delivered 37 vessels to transport oil, consumer goods, liquefied natural gas and other products worth USD 3.82 billion in the first five months as compared with 39 vessels worth USD 2.85 billion a year earlier.

It said that vessel prices are set to climb to a record for the fifth year as shipbuilders pass on higher costs to customers and demand for ships to carry fuel and consumer goods outstrips supply.

Vinashin pulls out of Van Phong project

VNS reported that the state owned Viet Nam Shipbuilding Industry Corporation has decided to withdraw from a joint venture with South Korea’s POSCO group to build a steel complex in the central province of Khanh Hoa’s Van Phong Bay.

Mr Pham Thanh Binh chairman of Vinashin’s management board said that the planned POSCO Vinashin Steel Complex, located on 969 hectares, was projected to cost USD 4 billion, with a USD 1 billion contribution from Vinashin. Mr Binh said that in addition to the steel complex, Vinashin will quit other projects which do not fit with the group’s major business area.

Two other projects confirmed by Vinashin are the project to build Hon La Port in Quang Binh Province and the project to establish the Viet Nam Commercial and Industrial Bank. In all, Vinashin has decided to either quit or extend the implementation of 49 projects with total capital contribition of VND 6.5 trillion (USD 390 million). The decision was made in response to the Government’s effort to curb inflation.

Mr Binh said that Vinashin had been investing in 70 projects and that the remaining 21 projects were the most important projects in the shipbuilding industry, the group’s main business area. The projects involve in shipbuilding, manufacturing steel for shipbuilding, manufacturing ships’ engines, and building vocational schools and testing centres for the industry.

Mr Binh said that "These 21 projects will help us reach the USD 500 million export target for this year and an annual USD 1 billion in exports for the following years.”

Domestic 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.

Vietnam plans to increase export duty on billet

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

The move is due to domestic producers exporting the extremely important billet to South Korea, Malaysia and Thailand, at a level reaching 100,000 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)

Soaring steel costs to drive up Nissan 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.

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)

Oil prices would not drop – OPEC

Mr Chakib Khelil president of OPEC said that oil prices will not come down.

He said that "OPEC has already done what OPEC can do and prices will not come down."

Alam Steel inks 50:50 JV deal with Macsteel

Alam Steel Limited has announced that it has formed a 50:50 JV with Macsteel SA to set up the Middle East's first service centre for processing high grade steel plates and sections for the petrochemical, mining and earthmoving, shipbuilding, construction, manufacturing and fabrication industries.

The AED 100 million service center will be operational within a year and will be based in a 300,000 square foot facility in the Jebel Ali Free Zone which has already been acquired. A complete range of flat steels will be processed by the service centre, including commercial, structural, pressure vessel, stainless, wear resistant and many other grades using modern machinery which will be controlled and backed up by a competent team of engineers in a state of the art drawing office. Cut to length, saw and drilling services will also be available for long products.

Mr Ebrahim Al Janahi senior VP of commercial sales at Alam Steel said that "Alam Steel's decision to set up its new facility in Jafza will certainly help the company in consolidating its presence in the UAE and in the region as a whole. The opening of this facility shows the magnitude of the company's expansion plans and also the confidence it has in Jafza as the base for new operations."

Mr Shyam Bhatia chairman of Alam Steel said that the JV with Macsteel SA will be expanded to other GCC countries by setting up similar ventures. He added that "Within a year, we will set up operations in Saudi Arabia and Qatar as part of our expansion drive in the GCC which will see us investing more than AED 1 billion in 5 years."

Mr Vikram Bhatia director of Alam Steel Limited and also board member of Macsteel Gulf FZCO said that "We are very proud to be partners with Macsteel who are global leaders in the business. The service centre will complement our existing steel businesses making us the most complete steel company in the region. We will be the only company to offer value added processing for all the steel products we sell."

Meanwhile, Mr Michael Pimstein CEO of Macsteel Service Centre SA and also board member of Macsteel Gulf FZCO said that "Macsteel Service Centre SA is excited to partner with Alam Steel who is pioneer of the steel industry in this region. Entering the GCC market is in line with our strategy of diversifying our geographic base which follows on from the very successful entry into the UAE and the GCC by our International trading colleagues Macsteel International FZCO based in Jafza since 2004 and their sister shipping company MUR FZCO who moved to Jafza in 2006."

Van Leeuwen wins pipe supply contract to Saudi Kayan

MEED reported that Van Leeuwen Pipe & Tube (Singapore) Private Limited has been awarded an initial contract of an estimated total value exceeding USD 38 million for the supply of carbon steel, alloy steel, stainless steel and incoalloy pipes, fittings and flanges for the Saudi Kayan Olefins Plant project.

With an annual production capacity exceeding 6 million tonnes of petrochemical products the Saudi Kayan Petrochemical Company is one of the major players in the petrochemical industry. The 1,350,000 tonnes per annum olefins plant will be erected at the Saudi Kayan cracker complex in the Jubail Industrial City. Kellogg Brown & Root Singapore is responsible for the engineering, procurement and construction management for this project.

Over the past years, Van Leeuwen Pipe & Tube Singapore has built a strong reputation for managing supply of piping material. Based on this reputation and Van Leeuwen's proven expertise in the execution of worldwide capital projects for renowned global engineering companies and end users, the company was selected as the partner of choice to source, expedite, inspect and deliver at least 15,000 tonnes of pipes, fittings and flanges for the Saudi Kayan Olefins Plant project.

Mr Hans Weerstra regional MD of Van Leeuwen said that "It is a further acknowledgment of Van Leeuwen's successful strategy to support energy related industries worldwide with the supply of steel piping material and enhanced services in logistics and project management."

Van Leeuwen Pipe and Tube (Singapore) Private Limited is a subsidiary of the Van Leeuwen Pipe & Tube Group BV, an international trading company specializing in steel pipes, pipe components and valves. It was founded in 1924 and has since been active in virtually all industrial sectors. It currently has 37 locations throughout Europe, Asia, the Middle East and North America. It employs more than 1,100 staff and generates an annual turnover of EUR 750 million.

Turkish contractors to join boom in Bahrain

Today’s Zaman reported that Bahraini minister of industry & commerce Mr Hassan Abdulla Fakhro has said that Bahrain is involved in numerous construction projects to improve the country's infrastructure and superstructure and that this should be viewed as a lucrative opportunity for Turkish contractors.

Mr Fakhro said that "We need construction materials for these projects, and we want to acquire them from our brother nation Turkey." He added that the total value of Bahrain's projects is estimated at near USD 30 billion.

Mr Kürsad Tüzmen trade minister of Turkey said that Bahrain has a plan to construct over 40,000 houses over the next few years in a move toward urban transformation and said that Turkish contractors would definitely want to take part. He also emphasized the developing relations between the two nations in terms of mutual trade, noting the total trade volume had jumped by 150% as of the end of 2007 over the previous year, totaling USD 200 million.

According to information provided by Mr Tüzmen, Turkish contractors are currently involved in projects worth USD 141 million in Bahrain. Moreover, the total assets of 11 Turkish banks operating in this Middle Eastern country is USD 35 billion, equal to 14% of the entire Bahraini banking industry.

Domestic steel pricing trends for steel users in 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.

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.

Highlights of the study commissioned by the Authority for Electricity in Oman

Highlights of the study commissioned by the Authority for Electricity are as follows

Solar Energy
The level of solar energy density in Oman is among the highest in the world. There is significant scope for developing solar energy resources throughout Oman and solar energy has the potential to provide sufficient electricity to meet all of Oman's domestic electricity requirements and provide some electricity for export. High solar energy density is available in all regions of Oman. Areas of lowest density are coastal areas in the southern part of Oman.

Wind Energy
The study identifies significant wind energy potential in coastal areas in the southern part of Oman and in the mountains north of Salalah. Wind speeds in these areas are comparable to recorded wind speeds at inland sites in Europe where large numbers of wind turbines are installed and operational. Wind speeds are observed to be highest in summer months which coincide with peak periods of electricity demand in Oman.

Biogas Energy
Material from waste water and agricultural waste is available in northern parts of Oman. In the south, biogas material is available from waste water, agricultural waste and animal dung. However, a large amount of waste material is presently used as fertilizer. Animal waste is spread over large areas making collection of sufficient quantities of animal waste difficult and expensive. For these reasons the study finds only limited potential for biogas electricity production.

Geothermal Energy
The study reviewed borehole temperature data and found temperatures to be below that required to allow the direct use of water for steam plants. On the basis of the data reviewed, the study finds the potential for utilizing geothermal energy for electricity production to be limited.

Wave Energy
Wave energy is available along the Arabian Sea coast but the energy density is relatively low compared to other locations worldwide. The potential use of wave energy is considered marginal compared to solar and wind energy resources.

Iran inks two MoUs with Armenia for hydro electric power plant

IRNA reported that Iran's deputy energy minister and Armenia's energy & natural resources minister have signed 2 MoUs on construction of a hydro electric power plant on Aras River.

According to a report by Islamic Republic of Iran's Embassy in Armenia, Mr Rasoul Zargar Iran's deputy energy minister in water affairs, discussed the outlook of cooperation between Iran and Armenia concerning generation of electricity and issues related to construction of a hydro electrical power plant on Aras River with Mr Armen Movsisyan Armenian energy & natural resources minister and his deputy.

It may be noted that the principle agreement on construction of Aras hydro electrical power plant was signed during President Mr Ahmadinejad's state visit to Armenia in the year 2006.

QPI, PetroChina & Shell sign LoI for refinery plant in China

It is reported that Qatar has signed a letter of intent with PetroChina Company Limited and Shell (China) Limited to commence joint preliminary studies to assess the viability of building a refinery and petrochemical manufacturing complex and marketing its products in China.

The LoI was signed by Mr Abdulla Bin Hamad Al Attiyah deputy PM, minister of energy & industry and also chairman of Qatar Petroleum International, Mr Jiang Jiemin president of China National Petroleum Corporation and Ms Linda Cook executive director of Royal Dutch Shell plc.

The integrated refinery and petrochemical complex will have production capabilities to produce refined fuels and petrochemical products. PetroChina will have a 51% shareholding, QPI 24.5% and Shell 24.5%.

Mr Al Attiyah said that "This step will help draw up a road map for setting up economic bridges between Qatar and China and opens investment opportunities. On this occasion, I am very pleased that Shell has joined this first project of Qatar Petroleum International in China and pleased to be partnering with PetroChina. We have here a great opportunity for our respective companies to reinforce their business relationship and to play a significant role in the refining and petrochemical sectors in China."

Mr Nasser Al Jaidah CEO of QPI also said that "We have established for QPI short range and long-range performance targets. This project is a significant addition to QPI’s portfolio. By associating with strong partners like PetroChina and Shell, we are confident that this first petrochemical project for QPI will rank in the top leading projects in China and in the world."

Mr Jiang Jiemin said that "By building the integrated refinery and petrochemical complex jointly with QPI and Shell, the cooperation in the petrochemical sector between CNPC, and Qatar and international oil companies will be further strengthened and promoted."

Ms Linda Cook said that "Shell is pleased to continue building its partnership with QPI and PetroChina to meet China’s growing energy needs. This project builds on a strong foundation of existing activities in Qatar and China, both of which are strategic to Shell. We are committed to leveraging our strong partnership with both companies and look forward to strengthened ties with the Chinese market."

Iran to order first LNG tanker in August

Mehr News Agency quoted Mr Ali Kheirandish MD of Iran Natural Gas Liquefaction Company as saying that according to scheduled plans, Iran will order the first LNG tanker to eligible manufacturers in August 2008.

Isfahan refinery output to be tripled by 2012 – Report

Mehr News Agency reported that Isfahan refinery’s gasoline and LNG output has been projected to triple by 2012.

Mr Manouchehr Aqanejad MD of Isfahan Oil Refining Company said that by 2012, the jet fuel production capacity of the refinery will be boosted by 2.5 times. He added that for the time being, the refinery produces 8 million liters of gasoline per day.

The daily LNG and jet fuel outputs of the refinery are currently 13 million liters and 3 million liters which will be respectively increased to 18 million liters and 9 million liters by 2012.

Iran approves USD 141 million investment for Moghan oilfield development

Mehr News Agency reported that Iranian government has approved USD 141.8 million investment for development of Moghan oilfield located in the northwestern province of Ardebil.

Mr Ali Nikzad governor general of Ardebil Province said that out of the figure USD 40.3 million will be spent on exploration operations.

Iran has authorized the National Iranian Oil Company to carry out the development plan in buy back and finance methods.

Sohar Power to open OMR 13.33 million IPO on July 2

It is reported that Sohar Power Company is floating an initial public offering worth OMR 13.33 million on July 2nd 2008.

Mr Mahmood al Rawahi director at Capital Market Authority said that "CMA has cleared the prospectus. The promoters are offering 35% of their holding to investors."

The promoters of independent power producers in Oman have to dilute 35% of their holding to the investing public within 4 years of incorporation, in line with a contractual commitment with the government. SPC has a paid up capital of OMR 27.3 million.

Sohar Power's IPO is the second share offer close on the heels of an overwhelming response to the Voltamp IPO. The Voltamp's initial public offering has mobilized over OMR 330 million, indicating an oversubscription of 24 times. It also shows that the financial system has ample liquidity. SPC is 50% owned by Suez Tractebel of Belgium.

Suez Tractebel is a subsidiary of the French energy conglomerate Suez. Omani shareholders such as National Trading Company, Zubair Corporation, W J Towell & Co, Ministry of Defense Pension Fund and Sogex Oman hold 10% each in Sohar Power. The power project meets the power needs of northern Oman, especially from large gas-based ventures coming up in Sohar.

The project consists of a 585 MW combined cycle gas turbines plant and 33 million gallons a day water desalination plant. The first phase with a generation capacity of 360 MW started operations since April 2006, while the second phase was commissioned a year later.

HRC market prices slow down a bit in China

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)

Masteel H beams get CE mark for EU market

It is reported that Masteel’s H Beams has passed the examination of CE Making certification recently which means the company has gained the passport enter into any market in Europe Union countries.

H beams is the key product for Masteel. At present, the company has developed 265 new varieties in 30 series of H shaped steel, I beam and steel plate products, widely used in construction, electricity, hydro engineering, energy, transportation, oil, agriculture and manufacturing sectors.

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.

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.

Baoshan develops 1100 MPa ultra high strength steel

It is reported that 1100 MPa ultra high strength steel was successfully developed by Baoshan Iron and Steel Group and achieved batch production, filling the domestic blank.

1100 MPa ultra high strength steel mainly be used in the manufacture of key components for heavy cranes, directly determines the safety of large tonnage lifting equipment, it has strict requirements on plate’s performance. 1100 MPa ultra high strength steel is all long monopolized by a few iron and steel enterprises in foreign countries.

As per reports, Baosteel just used three months to successfully developed 1100 MPa ultra high strength steel. After testing, all the performances of the product can meet the users’ demands. At present, the first batch of the product has been delivered to the users.

Chinese rebar and wire rod prices 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)

Xuanhua Steel pellet project commissioned

It is reported that the expected Xuanhua Steel in China’s Hebei province held the ceremony for its pallet plant in Chicheng County.

As per report, this project is jointly invested by Xuanhua Steel and other four private enterprises, but controlled by Xuanhua Steel.

The total investment of it is CNY 280 million with a planned annual output of 10 million tonnes of pellet. In addition to building a pellet production line, a 1.5 million tonne concentrate stockpile and a 20,000 tonne finished pellet stockpile area will be set up.

The sales revenue will reach to CNY 1.6 billion with CNY 100 million of profit and tax after the project put into production on July 1st 2008.

Taizhou Changhong Steel logistics center starts operation

It is reported that Jiansu Xinchangjiang Group and the local logistics center, Taizhou Changhong Steel Logistics Center recently starts operation. Once completed, the steel logistics center will provide one station service, including steel selling, storing, loading etc.

As per report the steel logistics center covers an area of 33.3335 square kilometer with total investment of CNY 1.1126 billion, is expected to become the largest steel distribution center in middle and northern areas in Jiangsu province within 2 years after operational startup.

Based on the core area of the local logistics center in North Taizhou city, the steel logistics center possesses very convenient transportation which enables multimodal cargo transport by water, railway or truck, dispensing with any transshipment.

The steel logistics center will gradually centralize and unify steel prices in north Jiangsu province and naturally become a price and information issuing center in North Jiangsu province.

Update on construction steel domestic price in China

Shanghai
Large scale rebar that is exempted from inspection is offered at CNY 5200 per tonne to CNY 5210 per tonne
Other large scale rebar at CNY 5040 per tonne to CNY 5050 per tonne Third grade rebar at CNY 5450 per tonne to CNY 5480 per tonne Common carbon wire rod at CNY 5540 per tonne
High speed wire rod at CNY 5860 per tonne to CNY 5870 per tonne.

In Beijing prices rise by CNY 20 per tonne to CNY 30 per tonne.
High speed wire rod is sold at CNY 5620 per tonne to CNY 5700 per tonne
Second grade large scale rebars at CNY 5330 per tonne to CNY 5350 per tonne
Third grade large scale rebar at CNY 5550 per tonne.

Tianjin
High speed wire rod is quoted at CNY 5650 per tonne to CNY 5700 per tonne
Second grade large scale rebars at CNY 5300 per tonne to CNY 5330 per tonne
Third grade large scale rebar at CNY 5500 per tonne to CNY 5530 per tonne.

Guangzhou
8mm common carbon wire rod made by Shaoguan Steel is priced at CNY 5500 per tonne
8mm high speed wire rod at CNY 5750 per tonne
Large scale rebar at CNY 5500 per tonne
Large scale rebar at CNY 5500 per tonne provided by Yufeng at CNY 5320 per tonne
Third grade rebar provided by Ma'anshan Steel at CNY 5650 per tonne

(Sourced from MySteel.net)

Trends of domestic steel prices in China for overseas users

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.

China to impose 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)

Xinxing Pipes inks cooperation agreement with CISDI

It is reported that Xinxing Pipes Group signed Strategic Cooperation Partner Agreement with CISDI Engineering Company Limited.

As a specialized engineering company in providing services for iron and steel companies on project consulting, plant design and overall plant contracting and so on, CISDI has a good reputation and revenue both in domestic and abroad. The two companies will cooperate in metallurgy and machinery and other fields.

As per report the agreement is an important step for Xinxing Pipes Group to realize the target for “11th Five-year Plan” and will help with the product mix improvement and sustainable development policy.

Chinalco orders for X-Roll® cold rolling mill to SMS Demag

Chinalco Shanghai Copper Company Limited, China has once again awarded a contract to SMS Demag for the supply of a new X Roll® cold rolling mill. The project will be implemented in cooperation between SMS Demag Germany and SMS Demag China. The mill is designed for an annual capacity of around 107,000 tonnes.

According to the release the CVC plus® six high reversing cold rolling stand will be integrated into the Shanghai works and is to roll strips made of copper and copper alloys. The reversing cold mill rolls 880 mm wide strip from 4 mm entry gages down to minimum final gages of 0.15 mm

SMS Demag's order scope comprises the basic and detail engineering, the supply of all mechanical components with all the necessary utility systems as well as the complete X-Pact® electrical and automation equipment, including control systems and a Level II model.

SMS group is under the roof of the holding SMS GmbH, a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It consists of the two Business Areas SMS Demag and SMS Meer which jointly form SMS metallurgy. In 2007, some 8,000 employees worldwide generated a turnover of about EUR 3.0 billion.

With this mill, Chinalco Shanghai Copper intends to produce copper semis of topmost quality in order to be able to meet the future requirements on the Chinese and on the international market.

Wuhan Steel speeds up building branches overseas

Changjiang Times reported that International Economic & Trading Corporation Wisco advertised a job offer on June 24th seeking a manager from the globe for its Brazilian based trading branch with an annual pay of CNY 400,000.

According to the report, this branch was established in Rio de Janeiro as an exclusively funded company affiliated to Wuhan Iron & Steel Group Corporation with a total cost of USD 2million and a registered capital of USD 1.5million.

Pig iron price in Shandong remains firm

It is reported that pig iron price stays firm on a high track in Shandong with slack transactions as steel mills mainly keep wait and see.

Offer price stands at CNY 4780 per tonne to CNY 4830 per tonne for steelmaking pig iron in Zibo and CNY 4750 per tonne to CNY 4800 per tonne in Linfen. And offer price for casting pig iron prevails at CNY 5500 per tonne in Weihai and CNY 5250 per tonne to CNY 5300 per tonne in Linfen.

As per report, transactions for high-priced resources remain dull. Some pig iron producers still offer discount to boost transactions despite the support of soaring coke price. And some steel mills also slightly lower purchase price as a result of the previous nice stock replenishment.

Scrap price down in Guangdong

It is reported that scrap transaction and purchase prices have showed notably declines lately in South China's Guangdong province, with price decrement of over CNY 100 per tonne. Latest price goes at CNY 3900 per tonne to CNY 4000 per tonne for heavy scrap and CNY 3750 per tonne to CNY 3850 per tonne for medium scrap.

According to Mysteel, the current price decline to the weakening construction steel price resulted from thin transactions. Meanwhile, the higher electricity price also drove up input cost and reduced profit margins for steel mills using smaller electric furnace. As a result, these mills have to cut output or suspend productions, leading to shrinking demand and thus, weighing on market price downward in turn.

As per report, the 79.88% to 96.5% benchmark ore price rise settled last night and the high coke price would help underpin pig iron market. And Mysteel believes the chance is slim for local scrap price to slump given its wide gap with pig iron price.

(Sourced from MySteel.net)

CNOOC launch third oilfield online in South China Sea

China National Offshore Oil Corp Ltd's announced the launch of operations at its Xijiang 23-1 oilfield in the South China Sea, its third oilfield to come online in the region.

Mr Liu Jian executive vice president of CNOOC Ltd said in a statement "This is the third oilfield that the company has opened this year. The on-schedule commencement of operations at XJ23-1 will strengthen our ability to realize this year's production target as well as benefit our long-term production goals in the eastern South China Sea."

According to the release at present, 10 of 15 wells at the XJ23-1 oilfield are in operation and producing a combined total of 31,000 barrels of crude oil a day. CNOOC Ltd said that when the other five wells start operation later this year, the oilfield's output will reach 40,000 barrels per day.

The XJ23-1 oilfield is located in Block XJ04 of the Pearl River Mouth Basin, and was discovered in 2003.

China power rate hike unable to cover costs -Report

Reuters quoted local media as reporting that less than 60% of China's power tariff hike announced last week will filter through to some power generators, which analysts called insufficient saying more hikes were needed.

China said it would raise average electricity tariffs by CNY 0.025 a kilowatt hour or about 4.7% on average from July 1st but rates for residential, agricultural and chemical fertilizer making sectors and regions affected by the May 12 earthquake would be exempt from the rise. It did not say immediately how much of the rise would be allocated to power generators that have been squeezed by fixed power tariffs and soaring coal costs in the past two years.

An unnamed executive of a power generating company was quoted as saying by the China Business News that "The rise of the on-grid rate for generators has been determined in the Beijing, Tianjin and Hebei region at around CNY 0.014. The increase was insufficient to cover rising coal costs.”

The newspaper added, quoting an official with the China Electricity Council that the National Development and Reform Commission, China's top economic planning body, and some other related agencies have calculated the increases in on grid power rates nationwide and will release a detailed report by July 1.

Many power plants have been operating with low coal stocks in recent quarters because they were either reluctant or financially unable to store too much pricy fuel, coupled with tight supplies following China's clampdown on small and unsafe coal mines.

Update on New Tangshan Steel Group construction steel prices

It is reported that new Tangshan Steel Group adjusts its latest prices for construction steel on the basis of prices published on June 12th 2008.

June settlement prices
Rebar price down by CNY 50 per tonne
Wire Rod unchanged.
6.5mm high speed wire rod is priced at CNY 5900 per tonne
HRB335 16mm to 25mm rebar at CNY 5450 per tonne.

July prices
Rebar price down CNY 100 per tonne
Wire Rod down by CNY 200 per tonne.
Latest price stands at CNY 5700 per tonne for 6.5mm high speed wire rod
HRB335 16mm to 25mm rebar price CNY 5400 per tonne

Prices listed above are INCLUSIVE of 17% VAT effective as of June 25.

(Sourced from MySteel.net)

Steel prices to rise sharply - Credit Suisse

According to Credit Suisse Group steel will extend gains from records this year as supply trails even slowing demand growth, hurting consumers such as automakers and luring investors to the shares of European makers of the metal.

Mr Michael Shillaker London based analyst said “The lack of response on the supply side to booming global prices is in our view a clear indication that the world is not capable this time around of responding. He said that a steel shortage could take years to resolve as prices get stronger and stronger.''

He also said that “Even if trend real demand growth is slowing, supply has already slowed at a faster rate, adding that the shares of European steelmakers may be major beneficiaries.”

He added that “Steel equities maybe at close to all-time highs in the US, but in Europe the equity market response to a booming steel market has been muted.''

Credit Suisse maintains its overweight'' recommendation on the industry.

Baoshan sold CNY 10 billion bonds

It is reported that Baoshan Iron & Steel Co sold CNY 10 billion of six year bonds at a coupon rate of 0.8% to help pay for the acquisition of a plant from its parent.

Baoshan Iron & Steel Co said the rate was at the lower end of an indicated range.

Chinese domestic HDG and PPGI prices to increase further–Traders

It is reported that the strength of hot dipped galvanized coil and pre-painted steel coil prices seem to have finished. The surge is mainly driven by strong demand for reconstruction in Sichuan province. However the situation has changed now.

As expected, temporary house construction for people in earthquake hit area has been finished before June.25th. While the second and third phase is mainly concentrate on construction of schools, hospitals and other infrastructures, which do not require much HDG or PPGI.

The reason why prices have not seen a collapse is probably due to following facts:

1. High production cost. Though HRC price is in a period of downward correction, it is expected to resume increase again. In addition, coke, electricity and oil prices remain at high level.

2. There is no oversupply. Though there has been less demand for PPGI from Sichuan province, robust international demand and delay delivery for domestic users would also bolster the high level

3. Low inventory level. Traders did not take excessive cargo due to government's requirement that price for HDG and PPGI into earthquake area should not see sharply increase. Hence there is little speculation and it is not a must to sell all their cargoes when price drops.

According to report to sum up, HDG and PPGI prices would remain in a dull period in July but they tend to go down gradually.

(Sourced from MySteel.net)

Chinese HRC export offer halt

It is reported that export offer for Chinese hot rolled steel coil do not see further improvement this week and this wave of increase probably would pause for some time.

Domestic HRC prices are generally stable. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC is being quoted at CNY 5770 per tonne to CNY 5800 per tonne up by CNY 40 per tonne to CNY 50 per tonne recently. That for 1800mm wide cargo goes at CNY 6200 per tonne. While commodity grade 2.75mm HRC is being tagged at CNY 6050 per tonne.

According to MySteel, Shanghai price for commercial 4.75 to 12mm*1500mm HRC as benchmark is likely to drop to CNY 5500 per tonne if it could not exceed CNY 6000 per tonne. However, strength above CNY 5500 per tonne would still bolster the upward trend. Export offers are still between USD 1050 per tonne to CNY 1100 per tonne FOB and overseas customers have accepted the updated prices

Shanghai based trader said "As a matter of fact, buying sentiment is not that strong expect South America and Middle East. The trader said high steel price and tighter monetary policy by most governments to combat inflation have put a strain on capital, which finally led to less steel purchase from China."

(Sourced from MySteel.net)

Sinosteel not pursuing iron ore miner Murchison – Spokesman

Reuters cited Sinosteel spokesman as saying that Chinese trader Sinosteel has made no approach to acquire Australian iron ore prospector Murchison Metals Ltd.

He said that Sinosteel was currently focusing its efforts solely on its proposed acquisition of fellow iron ore prospector Midwest Corp.

China import of refined tin in 5 months 2007 up by 120%

According to official May trade data China once again a net importer of refined tin. However the slump in tin metal exports has been partly offset by a big jump in exports in other forms. Refined tin exports in May were only 4.9 tonnes down by 99.8% YoY last year.

According to customs data, this small shipment was bound for Estonia. YTD exports amounted to 385 tonnes down by 97% YoY on the same period of last year. Refined tin imports in May were 900 tonnes, bringing the first five months’ cumulative total to 4,566 tonnes up by 120% in January to May 2007.

The drop in refined tin exports reflects both reduced tin availability in China and the imposition of a 10% export duty from January 1st. The duty change possibly explains a recent surge in exports of tin semis and other products. Tin semis exports in May were 365 tonnes while shipments of other tin products jumped to 1,322 tonnes. The total volume of exports of tin semis and other products in January to May was 5,096 tonnes up by 74% YoY in the same period of last year.

(Sourced from ITRI.co.uk)

Changgang successfully developed new products

It is reported that recently, Changgang H-beam plant successfully developed H175 × 175 new products and expanded the market for the selling of H-beam steel.

As per report from May 30th to now, Changgang H-beam plant has successfully developed four specifications new products. Up to June 19th and had l produced 1000 tonnes of H175 × 175 H-beam steel.

Laiwu Steel successfully researched and developed earthquake-resistance rebar

It is reported that the first batch of high strength and good earthquake resistance HEB 400E rebar was successfully trial produced by Laiwu Steel,and formed mass production capacity.

China is a country with frequent earthquake, the quality of rebar is very important as it is the key construction steel. After the 5.12 Wenchuan Earthquake, the State Seismological Bureau increased to the earthquake resistance of the construction steel to 9 grade from 7 grade.

More than 75% of Laiwu Steel current production rebar is in line with the standard of earthquake resistance has good foundation to produce HRB 400E earthquake-resistance rebar. After testing, all the performances of the rebar can meet the standard. At present, the company has received 640 tons orders from northern Jiangsu province.

Fushun New Steel Co succeeded in trial rolling of two new steel products

It is reported that Fushun New Steel Company Limited has recently produced 55Q/50Q steel. It totally produced 25 furnaces of products in the first round of trial roll, of which the pass rate of chemical composition reaches 96% and the pass rate of continuous casting billet reaches 100%. All products have been delivered by now.

At the same time, the company succeeded in trial roll of Φ20 round steel and it has produced 2,971 tonnes for the first batch.

MCC to invest USD10illion to exploit iron mine and build steelworks in Philippine

It is reported that along with the sustaining increase of iron ore price and stronger demand from the market, more and more Chinese companies begin to search for new areas in order to obtain more mining resources.

China Metallurgical Group Corp has already signed a frame agreement on iron ore exploitation in Philippine. MCC would exploit an iron mine in Mindanao Island in Philippine. It is revealed that MCC also plans to construct a steelworks there.

MCC has not revealed details about the investment, but Mr Jose Atienza the minister in environment department, indicated that the investment in the primary phase would be around USD1.5billion and total investment should be as high as USD10billion.

Yunnan Metallurgical Group is in preparation for listing

Mr Tian Yong GM of Yunnan Metallurgical Group, during the signing ceremony of the long term cooperation relationship between Yunnan Metallurgical Group and United Nations Development Program and China International Center For Economic and Technical Exchanges said that the company is in preparation and the overall listing date depends on the market environment.

It is learned that Yunnan Metallurgical Group has formed an annual productivity of mining 1.08 million tonnes of ore, dressing 1.07 million tonnes, smelting 700,000 tonnes of nonferrous metals and deep processing 190,000 tonnes of nonferrous metals, 380,000 tonnes of manganese ore, 100,000 tones of ferroalloy and 370,000 tonnes of sulfuric acid.

Yunnan Metallurgical Group in 2007, produced 703,900 tonnes of nonferrous metals, with a sales income of CNY 16.67 billion. The total import value was USD 553 million in 2007, with the profit and tax totaled CNY 3.378 billion and a profit of CNY 2.6 billion.

CRC export price remain stable in China

It is reported that export price for cold rolled coil remain stable this week since Chinese domestic market prices are still in downward correction.

On Shanghai market, 1.0mm CR sheet by Anshan steel is being quoted at CNY 7330 per tonne, 1.2mm to 2.0mm material at USD 7280 per tonne down by CNY 20 per tonne from early this week. 1.0 CR coil by Maanshan steel goes at CNY 7150 per tonne down by CNY 20 per tonne from last Friday.

Mysteel forecasts that CRC price is forecast to continue its downward adjustment and we do not exclude the possibility that it has topped out or is quite close to the peak level. Taking Shanghai price for 1.0 sheet by Anshan steel as benchmark, it is expected to slip to CNY 7200 per tonne or even lower unless it could exceed CNY 7500 per tonne quickly.

Export price for 1.0mm CRC is still at around USD 1150 per tonne to USD 1160 per tonne FOB and most cargo was concluded at USD 1125 per tonne to USD 1145 per tonne FB. It is learnt that most steel makers have been fully booked for end July or August shipment due to high margin over domestic sales.

(Sourced from MySteel.net)

First Asian high end wire rope plant put into operation in Wuhan

It is reported that Wisco WRCA Wire Rope Co Limited a joint venture located in Yangluo economic development zone of Wuhan funded by Wuhan Iron & Steel Group Corp and WRCA was officially put into operation recently.

The newly built company has registered capital of USD 50 million with WRCA holding 51% and Wugang Group 49%, specializing in producing high end wire rope mainly used in mines, port machinery, bridges and oil field. The first investment is USD 99 million. The new plant will yield 50,000 tons of wire rope annually valued at USD 500 million or USD 10,000 per tonne.

Mr Peng Wanping secretary of this project said the project is the ninth production line of WRCA across the world and also the first high end wire rope producer in Asia.

The technical adviser of the American side said "Producing this kind of wire rope requires abundant billet resources and Wugang's products can meet our standards. He said that's why Wugang was chosen as our partner and on the side of Wugang, this project will become its new area for economic growth.”

According to a person in charge of Jiangbei base of the project, once the capacity is fully achieved in the next June wire rope used in bridge and drilling platform could meet the demand of China's whole market and import of such materials is no more needed.

WRCA, the largest wire rope conglomerate in North America has a history of over seventy years. It owns an annual integrated capacity of 350,000 tons, accounting for 60% of American market.

Chihong Zn&Ge to purchase 3000 tonnes of lead concentrate

Yunnan Chihong Zn&Ge Co Ltd announced that it has signed a Resource Purchase and Sales Contract with Yunnan Yongchang Lead& Zinc Company Limited agreeing to buy some 3000 tonnes of lead concentrate at spot prices in batches.

According to the release the contract date starts from March 1st and ends on December 31st 2008. The two sides agreed to adopt advance payment for each batch of cargo.

The released added that the company earlier made a 1000 tonnes contract with Yongchang and their cooperation starts from this March.

Evraz denies reports of price fixing with ArcelorMittal SA

RIA Novosti reported that Evraz Group, Russia rejected reports of alleged price collusion with ArcelorMittal in South Africa.

The reports appeared after the Cape Town office of Evraz's subsidiary Highveld Steel and Vanadium Corporation Limited was raided by police.

The report also added that South African investigators said some metals market players, in particular, ArcelorMittal South Africa and Highveld leveled their metals prices in one go, violating anti trust legislation.

Zlatoust Metallurgical Plant celebrates 106th Anniversary

RBC Daily reported that Zlatoust Metallurgical Plant JSC celebrated its 106th anniversary still it is young and has great prospects for the future.

Zlatoust Metallurgical Plant is one of the best steel works in the Urals. Products of ZMP JSC have won multiple awards at competitions.

It is also reported that the entire history of Zlatoust is connected with high quality metallurgy which is a worthy successor of glorious traditions of the Ural craftsmen. The shops of Zlatoust Metallurgical Plant produced the first stainless steel. During the 30’s of the twentieth century, the plant produced special grades for the first Soviet aircraft, vehicles and tractors. The outstanding quality of Zlatoust has always been the brand image of the plant’s products. The people working at the plant ensure this special quality through special approach to their work.

Outotec and Kazgiprotsvetmet agree on strategic partnership

Outotec and Kazgiprotsvetmet of Kazakhstan announced that they have signed an agreement on strategic cooperation in the marketing and providing of minerals processing and metallurgical plants and related services in Kazakhstan and the surrounding countries.

Outotec is a leading developer and supplier of proprietary technologies for the mining and metallurgical industries globally. KGCM is the leading engineering company in Kazakhstan focusing on ferrous and non-ferrous metallurgy, processing of rare metals and rare earths, gold mining and machine building. With this new strategic partnership and the combined resources of Outotec and KGCM, the companies aim to increase the number of concentrator and metallurgical plant projects and provide more versatile services to the customers in the area.

Mr Tapani Järvinen CEO of Outotec said that "Kazakhstan has the world's largest chromium resources as well as significant resources and production of uranium, silver, phosphorus, nickel, coal and gold. We have already cooperated with KGCM in our earlier large projects in Kazakhstan and I believe that the strategic partnership will provide us more growth opportunities.”

Italian firm signs deal for Nord Stream gas pipeline

RIA Novosti reported that an Italian engineering company had signed a contract to lay the first section of the Nord Stream gas pipeline. Russian energy giant Gazprom holds a 51% stake in operator Nord Stream AG, with Germany's BASF and E ON each holding 24.5%.

According to the report Saipem, 43% of whose shares are owned by the Italian energy giant Eni SpA, agreed the deal worth more than USD 1 billion with Nord Stream AG, the operator of the pipeline construction project.

The first part of the 1,200 kilometer pipeline which will run from Russia to Germany under the Baltic Sea is scheduled to start pumping gas in 2010.

Russia posts 0.2% inflation since start of year

Interfax reported that Russia saw inflation of 0.2% from June 17 to June 23 and 0.8% since the start of the month compared to 0.6% YoY over the same period of 2007

A source in the government told Interfax that inflation totaled 8.5% between the start of 2008 and June 23 compared to 5.3% YoY in the same period of last year.

RZD to offer RUB 20 billion in bonds

Interfax reported that Russian Railways plans to offer RUB 20 billion in eighth series bonds on July 9th 2008.

According to the report coupon yield guidance is 8.25% to 8.75%.

Russian oil export duty up by 24%

RIA Novosti cited Mr Alexander Sakovich deputy head of the Finance Ministry customs payment department of Russia as saying that Russian oil export duty could reach a record USD 495 per tonne from August rising by more than 24%.