Steel users in India can keep tab on domestic pricing trends 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.

ABG Shipyard bags sub sea construction order from Sealion

ABG Shipyard Limited announced that it has bagged a prestigious order for the construction of 3 units of sub sea multi purpose vessels from Sealion Shipping Limited on behalf of Toisa Limited. These vessels are designed for a world class sub sea and ROV support duties. The total order size is approximately INR 585 crore.

Sealion Shipping Limited and Toisa are engaged in specialized E&P support vessels, consultancy and technical support to the specialized marine industry. They further expanded their activities into the support of the offshore oil and gas industry and, today, this forms their core market.

Toisa currently operates a modern fleet of 23 vessels. Besides, Toisa has a further 12 offshore support vessels under construction which will enter its fleet in the near future. With the above order, the total order book of the company stands at approximately USD 2.436 billion.

KSK Energy draws up power portfolio of 9,000 MW

Projects Today reported that KSK Energy Ventures Limited has drawn up plans to develop over 9,000 MW of power capacity by 2013.

As per report, KSK Energy currently has a total operational capacity of 186 MW, with another 675 MW under construction. Close to 2,000 MW of power projects are in the development stage while another 6,345 MW are on the drawing board.

KSK Energy is entering the capital market with an initial public offering of equity shares on June 23rd 2008. It will offer 3.46 million shares in a price band of INR 245 to INR 250 per share. In the pre IPO placement, around INR 415 crore has already been raised. The issue proceeds will be used to part finance the equity component of a mega 3x600 MW coal fired power project in Chhattisgarh that will be developed by a special purpose vehicle Wardha Power Company Private Limited.

Fuel linkages have been secured from Gujarat Mineral Development Corporation that will annually supply 7 million tonnes of coal. Chhattisgarh State Electricity Board will facilitate project development activities and in return, get 7.5% of the annual power generation.

KSK Energy's envisaged power portfolio is spread over thermal and hydropower projects, with a pan India presence. Most of the project capacity addition envisaged is currently in the planning stage and will come from 3 projects of 1,800 MW each in the coal rich states of Orissa and Chhattisgarh, besides nearly 1,000 MW from hydropower projects in Arunachal Pradesh.

India discusses IPI pipeline project with Pakistan

Mr Murli Deora union minister of petroleum & natural gas was called on Mr Shah Mahmood Qureshi Pakistani foreign minister to discuss the issues pertaining to the Iran Pakistan India gas pipeline project.

The meeting was held in an atmosphere of cordiality and mutual understanding. The ministers acknowledged that this project is of immense economic and strategic value for both countries.

Mr Deora reiterated India’s commitment to the IPI gas pipeline project. He informed that India has requested Iran to convene a trilateral Ministerial meeting on the project.

Indian Railways production units perform well in May 2008

It is reported that Indian Railway’s manufacturing units have exceeded their respective targets during May 2008.

NTPC signs PPA with GRIDCO

National Thermal Power Corporation Limited has signed a power purchase agreement with GRIDCO for supply of power from its 1320 MW Barh Project Stage-II in New Delhi.

The agreement was signed by Mr AC Mallick director commercial of GRIDCO and Mr SN Goel GM commercial of NTPC in the presence of Mr IJ Kapoor ED commercial of NTPC.

NTPC Barh Stage II project is being set up by NTPC in Bihar, the power from the project shall be supplied to the States of Eastern, Northern and Western Region. This is in addition to 1980 MW Barh stage I being set up by NTPC. On completion the project will be the largest power station of NTPC in the Eastern Region.

Power Exchange sets fee structure for trading members

BL reported that Power Exchange India Limited, a JV of the National Stock Exchange and National Commodity & Derivatives Exchange has announced fee structure for trading members.

The trading cum clearing members have to pay a one time fee of INR 1 million and an annual fee of INR 250,000, while the trading members have to set aside INR 500,000 as one time fee and INR 100,000 as annual fee. Members would also be required to keep deposits according to the PXI rules.

The fee structure for professional clearing members, who will facilitate clearing for trading members, will be announced shortly. Recognizing the peculiarities of the power sector, a distinction, has been made within the TCM category as TSCM and TCM.

PXI, a nationwide spot exchange for power, will initially have only trade day ahead contracts. It will provide an open market place for all stakeholders in the sector, including generators, distribution companies, independent power producers, captive power producers, traders and so on who can participate either by becoming members of PXI or by becoming constituents of the members. The exchange is expected to be operational in a few months.

Shipping ministry considering Cochin Shipyard IPO plan

BL reported that union ministry of shipping, road transport & highways is actively considering Cochin Shipyard Limited’s proposal to raise funds through an initial public offering for the public sector shipyard’s expansion plans.

Official source said that "The expansion would require an expenditure of INR 1,000 to INR 1,300 crore. The IPO proceeds would be used to part-finance this expansion proposal. The shipping ministry is actively considering the proposal for internal approvals."

The shipping ministry is also considering a proposal to confer Mini Ratna status to Cochin Shipyard, which would allow CSL more financial and operational autonomy. The yard is also constructing 20 vessels for European or American clients valued at over INR 2,000 crore. These projects are being undertaken exclusive of the Air Defense Ship for the Indian Navy, which is also currently under construction.

Cochin Shipyard’s proposal for creation of small ship division has been approved by the government. The project is expected to be completed by March 2009. On completion these facilities would help the shipyard to undertake concurrent construction of small commercial ships with the aircraft carrier. CSL has two dry docks at present, one can build ships of up to 1,10,000 DWT and another can repair ships up to 1,25,000 DWT.

OMC tender points to further increase in domestic iron ore spot prices

It is learnt that Bhuwneshwar based Orissa Mining Corporation’s latest quarterly tender on June 27th 2008 has received higher prices for sale of iron ore during July to September 2008 period as compared to April to June 2008 prices.

1. Rates are in INR per tonne
2. Rates are Ex OMC mines
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 62% to 64% and INR 27 per tonne for Fe content of 65%
5. These rates would be valid for all supplies during July to September 2008 period

The rise in higher price received is attributed to production constraints due to rainy season amid firm demand. As per market experts, this is likely to result in a general increase in iron prices in Orissa of INR 200 per tonne to INR 500 per tonne.

The movement of domestic spot iron ore prices in Burwil during this fortnight is as under

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63 and INR 27 per tonne for Fe content of 65%

(Sourced from www.steelprices-india.com)

Indian domestic steel market on fire

Despite the fact that Indian steel majors Steel Authority of India Limited, TATA Steel and few others, who decide the Indian domestic steel price line, are marinating their price line for 3 months as promised to the Indian government in the second week of May 2008, raw material cost prices, global levels and speculation of impending increase has put Indian domestic steel market on fire.

Domestic prices for input materials, long products as well as flat products have all witnessed big jumps in all the regions across India since June 16th 2008.

Price movement for Mumbai market during this fortnight is given below to outline that the increase is spread across all product categories

Input materials

Prices are in INR per tonne
Inclusive of ED and VAT

Long products

Prices are in INR per tonne
Inclusive of ED and VAT

Flat products

Prices are in INR per tonne
Inclusive of ED and VAT

Similar increases have been reported in other important markets like New Delhi, Chennai, Kolkata and Raipur.

Market sources attribute following reasons for such unprecedented rise

1. Input material costs
Indian steel makers are facing sever cost pressures due to surge in input material costs

A) Domestic price levels for HMS, which are still suppressed compared to international levels, which are above USD 720 per tonne level, are inching upwards to reach equilibrium.

B) Following the international settlements by CVRD and realizing freight premium by Rio Tinto and coupled with mining constraints due to heavy rains, domestic iron ore prices have surged this fortnight and further increase is expected in the coming week.

C) There has been a shortage of coal, again due to mining operations hit by heavy rain, resulting in power supply as well as coal shortage to small steel plants.

D) Global levels of coking coal and coke prices are very firm amid huge demand from steel makers globally

2. Global price levels
International prices are ruling at all time high and global steel giants are announcing further increases almost everyday. Just to give some examples

A) The SteelBenchmarker reported following World Export Price for benchmark hot band for June 23rd 2008 as under
i) USD 1,097 per tonne FOB the port of export
ii) Up by USD 21 per tonne versus USD 1,076 two weeks ago
iii) Up by USD 547 per tonne from the recent low of USD 550 on July 23rd 2007. It means that in last 11 months hot band prices have surged by USD 547 per tonne or 100%
iv) Up by USD 501 per tonne from the recent high of USD 596 on March 26th 2007

B) Rebar prices in UAE are ruling at AED 5750 per tonne levels, which is equivalent to 1565 per tonne considering current exchange rate.

C) Turkish billet makers are trying to achieve USD 1300 per tonne FOB levels

3. Speculation
As buyers and sellers are anticipating price hike announcements by Indian steel majors sometime in July, every player in the chain is in buying mode rather than selling, thus limiting supply, which is pushing up the prices.

(Sourced from www.steelprices-india.com)

Indian Railways inks JV with Kerala for coach unit

A MoU was signed between the union ministry of railways and department of industries & commerce, government of Kerala to form a JV company for fabrication of bogie frames for passenger coaches and side end walls etc for the wagons for Indian Railways by utilizing the land and other assets of steel fabrication unit and autokast.

The MoU was signed by Mr VK Pabby advisor mechanical engineering at ministry of railways and Mr Amitabh Kant principal secretary & special commissioner industries of government of Kerala.

Mr Lalu Prasad union railways minister said that this JV will benefit people of Kerala and Indian Railways in the future.

In view of the rapidly growing passenger services there is going to be a requirement of additional passenger coaches in future. At present, Indian Railways have a limited capacity to manufacture fabricated bogies for the above requirement of coaches.

Punjab excise department plans to target steel units

It is reported that Punjab excise & taxation department will have to work hard this year to meet its target of INR 7,000 crore for this financial year. The target is 25% ahead of last year’s tax collection, which was INR 5,800 crore. The officers have been told to focus more on steel, hosiery, sanitary ware, marble and plywood industry.

Mr A Venuprasad chief commissioner of excise & taxation department said that "These sectors indulge in tax evasion. We can grow up to 40% in these areas. Last year, we registered a growth of about 15%. Punjab has a huge potential to generate revenue for the department, especially hosiery, iron and steel industry. This needs to be tapped.”

He said further added that "Though we had introduced e filing scheme in the last financial year, we did get encouraging response. We want to make it more popular."

Meanwhile, the department is still not clear as whether the dhaba tax and tax on embroidered cloth has to be levied or not.

POSCO admits no progress in its steel project in Orissa

It is reported that Mr Soung Sik Cho CMD of POSCO India recently said that "The Greenfield projects are confronted by issues like insufficient infrastructure, land clearance and resettlement issues and steadfast raw material linkage. Most Greenfield projects in India, especially in Orissa, have failed to make substantial progress."

Explaining the necessity of a win win relationship, Mr Cho said that while companies should be committed to the welfare of the people and strive to create prosperity through value addition to the community and environment, people should realize the benefits of industrialization.

He said that "I reiterate the importance of community because without their consent and strong will no project of industrialization drive can bear fruit. Strong and proactive government involvement is required to realize India's steel vision."

POSCO India which had inked a MoU with the state government 3 years ago for setting up the unit could not acquire an inch of land for the purpose even as the government claimed to have allotted about 190 acre to the company.

Steel industries list out challenges in Orissa

SNS reported that steel producers in Orissa have listed out problems faced in setting up projects while the state government said challenges are part of life.

ArcelorMittal's Mr Sanak Mishra and POSCO India's Mr Soung Sik Cho, besides many in the sector, expressed their concern over the manner in which the industrialization is being carried out in the state.

Mr Mishra said that "Land acquisition problem is the bottom line truth which affects industrialization in the state." He added that three major problems faced by the industries were listed like land acquisition, iron ore linkage and water sources.

Mr BK Singh VP of TATA Steel has suggested an action plan to overcome the issues faced by the industries while Mr BP Modi deputy MD of Visa steel was for working in tandem with the government.

But, Mr Pradeep Amat steel & mines minister of Orissa said that "Life is never without challenges and let me assure you that the Orissa government is committed to face all challenges boldly."

Mr Kelkar wants Goa to protect coastline form iron ore mining

Dr Vijay Kelkar chairman of the 13th Finance Commission has informed that the President of India has said that the commission has been given additional tasks to evolve a mechanism for new tax regime under which the whole of country could be turned into a common market and also how to fund the states to protect the environment.

Dr Kelkar said that there is a proposal to do away with the goods and services tax and that the commission has been asked to study the feasibility and submit its report along with the mechanism to devolve funds for environment and ecology protection.

He also warned the state to take measures to protect its coastline. He said the state’s coastline could be threatened by global warming leading to it losing 4% to 5% of low lying areas due to submergence in rising waters and leading to various health and social problems.

Mr Digambar Kamat chief minister of Goa has declared that the government would be supportive of industry. He said that GCCI by its effective functioning and completing 100 years of existence has made Goa proud.

Mr Kamat said that he was pained to take the decision to scrap the special economic zones as he did not want to do anything against the will of the people. He also said that he has asked the task force formed for preparation of regional plan 2025 to think of mechanism to protect identity of state villages while allowing development.

40% of Indian iron ore deposit in reserve forest and sanctuaries – Report

PTI reported that stringent forest acts and acute scarcity of coking coal seemed to be the major hurdles towards the growth of the steel industry in India which is aiming to occupy the second place after China by 2020.

Though India is endowed with significant reserve of iron ore according to the data given by the Indian Bureau of Mines, only 7.2 billion tonnes of ore were economically mineable. India has a reserve of nearly 25.25 billion tonnes of iron ore. Nearly 40% of India's reserve fall in magnetite categories, located in reserve forest belts or wildlife sanctuaries.

Mr Dalip Singh joint secretary in the steel ministry said that "Unless the government comes out with some innovative ways and means to allow mining of iron ore in reserve forests and wildlife sanctuaries, many of the proposed capacities may not materialize."

Orissa HC gives 3 weeks time to CIL MCL

Express News Service reported that Orissa High Court has granted three weeks time to Coal India Limited’s Mahanadi Coalfields Limited to file its response on the issue of short supply of coal to industries.

The division bench comprising acting chief justice Mr IM Quddusi and justice Mr BN Mohapatra have, however, ordered continuance of the interim arrangement of supply of at least 14,000 tonnes of coal per day by MCL to Nalco.

2 million tonnes cement plant by SAIL in quandary

It is reported that Steel Authority of India Limited's proposed 2 million tonnes cement plant's fate near Rourkela is now lurching in a balance. Hidden political agenda has left the plant in a dilemma, which has not gone well by the localities.

SAIL board on August 30th 2007 had taken a decision to set up 3 mega cement plants at Rourkela, Bhilai and Bokaro keeping in view of the expansion capacity of these steel plants and meaningful waste management of exhausted slags through these plants.

Bhilai and Bokaro steel plants have already signed MoU with some private companies to kick off the construction of the said plants. However in a sorry state of affairs, Rourkela even after 8 months has not achieved the same feat, thanks to some unknown reasons, which has raised eyebrows in localities.

As many as 15 companies including two foreign companies had evinced interest through their EoI and eight of them companies were short listed for technical committee approval for the projects. Meanwhile, two companies have already inked MoU with SAIL for Bhilai and Bokaro, where as the fate of Rourkela is still in a state of uncertainty.

Jharkhand to announce R&R policy in July 2008 – Mr Koda

Mr Madhu Koda chief minister of Jharkhand said that the much awaited rehabilitation and resettlement would be announced in the first week of July 2008.

Mr Koda said that the UPA approved the draft policy with slight amendments to the original version, submitted by the convener of the draft committee and deputy chief minister Mr Stephen Marandi, who could not make it to the meeting due to his pre schedule engagement at Dumka.

The provisions of the proposed policy envisage one per cent profit sharing of the firms by the land donors. The land losers would also have the right to claim for both employment and compensation from the company, which acquire their land. Besides, the company required offering financial assistance to the displaced persons at INR 1,000 per month, depending upon the size of land they part which for setting up of the industry.

ONGC to start commercial production of CBM soon

BL reported that Oil and Natural Gas Commission seems to have finally stepped up gas on coal bed methane development. Having bagged a USD 200 million project for turnkey CBM development and exploration in Jharkhand and Bengal in early 2006, it is planning to start commercial production from Jharia Parbatpur block by end 2008 or early 2009.

A firm agreement for selling up to 50,000 cubic meters CBM from Jharia is likely to be in place in the first week of July 2008. In addition, it is planning a fresh development campaign beyond the purview of ongoing contract for CBM development in Ranigunj block in Bengal.

Both the blocks, having reserves of most ancient coal available in India, were acquired in pre CBM Policy days and held jointly with Coal India Limited. ONGC’s Ranigunj block is located between the Ranigunj of Essar, which is being developed and producing field of Great Eastern Energy Corporation.

ONGC has already drilled one pilot production well in Ranigunj. While the well is currently put on test to ascertain the flow rate, plans are finalized to drill two more pilot wells. Depending on the results, it may go for a 100 to 150 well commercial development program in the block in 2009-10.

Small car segment dominates global auto sales

According to Future Steel Vehicle Phase I Engineering Study preliminary findings, conducted by EDAG, in the coming decade, emerging economies including India, China and Eastern Europe will drive the growth in the global automobile industry. The largest growth contribution to the auto markets in these countries will be the fast growing small car segment.

FSV phase I is investigating architectural changes driven by advanced hybrid and fuel cell power train systems as well as gathering market data that will influence the project’s next phase decisions. The phase I final report is expected in early 2009.

With India claiming the lead as one of the largest producers of small cars in the world, this segment accounting for about three-fourths of the market, the country is set to emerge as a global hub of small-car manufacturing.

Launched in January 2008, the TATA Motors Nano will create a new segment in passenger cars, straddling the gap between two wheelers and the Maruti 800. Hailed as the cheapest car in the world with a USD 3,000 list price, the Nano could attract 300 million buyers in India by 2020.

By 2012, global sales of small cars are expected to be around 29 million per year, an increase of 65% from a decade earlier. In Western Europe, the market for micro cars is projected to rise nearly 50% by 2012. Even in the United States, sales of small cars are expected to grow 25% by 2012 to 3.4 million.

No escape from cement price hike in India – Holcim

Swiss cement major, Holcim, promoter of two of India's biggest cement companies, ACC and Ambuja Cements, said that there is no escape from increasing the cement prices in India considering the high energy costs.

Mr Paul Hugentobler member of executive committee of Holcim said that the cement prices across the world including in India has to rise by USD 20 to USD 30 per tonne so that the companies can maintain their profitability.

He added that "If we compare the first quarter of this calendar year with the same period of last year, our profitability has come down by 5% to 7%. If the input costs continue to rise like this, we will not have any other option but to raise prices."

Mr Hugentobler said that "There could be a demand slowdown. If raw material prices keep rising like this, the demand will obviously come down."

Many cement companies are looking at increasing their prices in the coming months to cushion the impact of rising raw material costs. On the government's move to put a ceiling on cement prices, Mr Hugentobler said if this continues, the cement companies may have to shut shop.

Holcim, which increased its stake in ACC this week by 3% to 46%, has made sufficient plans by substituting energy with alternative fuels to cut costs so that they can maintain their margins.

(Sourced from Business Standard)

Jharkhand HC orders government to pay rent to HEC

Ranchi Express reported that there's finally some hope for the Heavy Engineering Corporation that has been facing difficulties in fulfilling orders due to financial crunch.

The Jharkhand High Court has directed the state government to make payment of arrears of rent to the HEC within 5 weeks. The government has to pay the arrears for using the corporation's building and residential quarters.

The court directed the secretary of building construction and the chief of HEC Township to hold joint meetings and complete the calculation of the amount of rent within 3 weeks. It also directed the state government to make the payments thereafter within 2 weeks.

Major firms plan stake in Dighi Indapur railway project

BL reported that companies like Konkan Railway Corporation Limited, Rail Vikas Nigam Limited, IL&FS and IDFC are planning to pick up stake in the INR 550 crore Dighi Indapur railway project.

It is learnt that, KRCL and RVNL have expressed interest in acquiring 26% stake each while the financial investors like IL&FS and IDFC are interested in a smaller share. The project is currently awaiting for railway board's approval, after which the construction work on the project will commence.

A special purpose vehicle will be formed for implementing the project.

Apollo Tyres plans INR 110 crore capacity expansion in Africa

Apollo Tyres has launched an INR 110 crore passenger and truck bus tyres capacity expansion project at Ladysmith and Durban facilities of Dunlop Tyres International (Pty) Limited.

DTIPL had stretched the combined capacity of both the plants from 150 tonnes per day in April 2006 to the current level of approximately 180 to 190 tonnes per day, through various de bottlenecking practices.

Nano project cost up by 18% - Mr Kant

BS quoted Mr Ravi Kant MD of TATA Motors as saying that it has invested INR 2,000 crore for the Nano plant at Singur so far, 18% higher than the earlier investment plan.

Mr Kant said that it had earlier estimated the project cost at INR 1,700 crore. The original project plan has been reworked, thanks to the floods at the site last year, which primarily led to cost escalation. Despite the cost overrun, the INR 100,000 car would roll out from Singur before Durga Puja. Trial production will begin in July or August 2008. He added that "We are working at a breakneck speed so that we car start production as soon as possible."

Mr Kant also said that the company was flooded with enquiries from various countries for setting up production facilities as well as distribution networks for the small car.

He added that "The Nano has received enquiries for setting up plants and distribution networks from countries like the United States as well as Latin America, Europe and South East Asia. It is a great sense of pride for everybody. Nano has changed the rules of the market."

Bombardier and Alstom in fray for Indian Railways unit

BS reported that global electric locomotive manufacturers Bombardier Transportation, Alstom and Siemens from Europe and Kawasaki, Toshiba, Mitsubishi and Mitsui have shown interest in participating in the Indian Railways' ambitious INR 2,000 crore project to set up an electric locomotive factory at Madhepura in Bihar.

The project will be implemented on a private public partnership basis. Indian Railways will pick up a maximum of 26% equity stake in a special purpose vehicle to be floated for the purpose. The remaining equity will come from the foreign partner.

The initial capital cost of the factory, as estimated by the Indian Railways, is INR 1,000 crore. But industry experts say that the actual cost could go up in the range of INR 2,000 to INR 2,500 crore factoring in to account the increase in the prices of critical components like steel, iron, cement, fuel among others.

Mr Rajeev Jyoti MD of Bombardier Transportation said that "We are very eager to associate with the project. Since the agreement will be for a long term basis, we will have to carefully evaluate the commercial, legal and technical aspects before participating in the bidding process."

Similarly, a top executive of Alstom Transportation also expressed interest in participating in the proposed project. The factory will be set up on a build, own and operate basis for the production and supply of a minimum of 660 locomotives over a period of 8 years and undertake maintenance thereof for a period of up to 20 years.

Indian Railways will be subscribing to its equity for up to a maximum of 26% of the issued and paid up equity capital of the company, subject to a maximum of INR 100 crore. With the commissioning of the project, railway officials said that Indian Railway will be upgrading its technology to the next generation, where the new locomotive which will have 12,000 horsepower will have the capacity to pull a higher pay load at a much higher speed of 100 kilometer per hour. This will enable the Indian Railways to cut down their operational and maintenance cost.

RIL gets INR 12,000 crore EPC contract for Sasan UMPP

BS reported that Reliance Infrastructure Limited has been awarded the INR 12,000 crore engineering procurement and construction contract for the Sasan ultra mega power project by its group company Reliance Power Limited, which is developing the 4,000 MW project through its subsidiary Sasan Power Limited.

RIL said that the EPC contract would be accounted on the Reliance Infrastructure’s balance sheet. About 42 months would be required to complete the contract. The notice to proceed would be issued to the company in a week’s time.

Reliance Infrastructure is currently developing projects of 1,200 MW. It has two major EPC contracts, one from the Haryana government and another from Damodar Valley Corporation. This is the first internal contract. It will soon float a sub contract for critical equipment such as boiler, turbine and generators.

Reliance Infrastructure has tied up with power plant engineering consultant Black & Veatch USA for engineering consultancy services for Sasan and Krishnapatnam ultra mega power projects.

Port workers threaten nationwide strike from July 16th 2008

BL reported that five federations of port and dock workers have decided to serve a notice for a nationwide strike at all major ports on July 16th 2008, as the government has not given formal approval to pending employee related issues.

According to a statement from the All India Port and Dock Workers Federation, an agreement had been reached on some of the issues between the Indian Ports Association representing port managements and recognized federations. The agreements include grant of 13.5% interim relief with effect from January 1st 2007, amendment to settlement on liberalizing the definition of pay and eligibility limit for productivity linked reward effective from 2007 as decided by the cabinet, filling existing vacancies in various categories of port and dock workers and merger of 50% dearness allowance with basic pay with effect from January 1st 2005.

The federations include All India Port and Dock Workers Federation, All India Port and Dock Workers Federation, Water Transport Federation of India, Port, Dock and Waterfront Workers’ of India and Indian National Port and Dock Workers’ Federation.

Venezuela to take over operations of Sidor on Monday

It is reported that the Venezuelan state should take over the operations of iron and steel industry Ternium Sidor on Monday, where Argentinean consortium Techint holds most of the shareholding. However to date no agreement has been reached on the sale price.

Techint, the owner of 60% of the shares in the iron and steel company has negotiated since May its share value, after Venezuelan Mr Hugo Chávez president of Venezuela issued a decree to nationalize the iron industry in the mining region of Guayana, southeast Venezuela, where the compound is located.

While the Venezuelan state set June 30th as the deadline to take over Ternium Sidor, the talks with Techint to buy the shares could linger by common consent, pursuant to the nationalization law itself.

The report added that “If the parties fail to agree on a price, the iron and steel company would be seized.”

(Sourced from eluniversal.com)

Brazilian slabs for plates offer to Asia are USD 1,100 FOB

TEX reported that an integrated steel company of Brazil has offered to export slabs for heavy plates at USD 1,100 per tonne FOB for shipments to Asia in the July to September quarter.

It is likely that the Brazilian steel company will settle its Asian deals of slab exports this week at the price on offer as the company looks set to reject any price concession, market observers believe.

If Brazilian slabs for heavy plates sell at USD 1,100 per tonne FOB, the price settlement will become higher by USD 100 per tonne on FOB terms than what Japan's integrated steelmakers have negotiated in their deals of HR coil exports to South Korea for July to September shipments. On C&F terms, a wider price spread of close to USD 200 per tonne is forecast between Brazilian slabs and Japanese HR coils.

As a result, it follows that slabs will fetch higher prices than HR coils in Asia as a rare phenomenon at a time when both slabs and HR coils are under surging prices, market sources point out. The sources recall that prices of slabs tended to compare with those of HR coils in the past when HR coil prices tumbled.

(Sourced from TEX report)

PT Krakatau Steel plannig IPO in November December

Reuters reported that Indonesian steel firm PT Krakatau Steel is likely to launch an initial public share offering in November or December.

Mr Taufiequrrahman Ruki chairman of PT Krakatau told Reuters that the IPO plan still needs to be approved by parliament, but the government has said it is aiming to sell a maximum 40% stake in the firm.

Mr Ruki said that "The government has agreed with directors and commissioners to use the IPO option. We opted for an IPO because it can improve the culture of good corporate governance, while in a strategic sale, one party might have more influence. Our concern is domestic demand, while foreign firms' concern might be to the international market."

Mr Ruki adding the best timing for the share offer is likely to be November or December.

Mr Ruki also said the government and parliament had allowed a maximum of 49% stakes sales, if the IPO went ahead.

EU targets steel industry suppliers in antitrust probe

It is reported that the European Union is targeting a number of companies that supply the steel and gas industries with crucial chemicals in an ongoing antitrust probe.

According to a commission statement, the European Commission has sent a so called statement of objections to a number of companies that produce calcium carbide and magnesium powder, on suspicion that they could be operating a price fixing cartel. The statement lists the reasons the commission has for suspecting that the companies in question are breaking EU rules. If the companies are found guilty of price fixing, the commission has the right to impose fines. Penalties in prior cartel cases have run to hundreds of millions of dollars.

The companies have the right to reply in writing, setting out their case.

The move comes after the commission in January 2007 launched surprise inspections on several companies supplying the two products in Austria, Germany, Slovakia and Slovenia. Commission officials have not released the companies' names.

Steel producers use the products to purify and strengthen steel, while the gas industry uses calcium carbide to produce acetylene a gas used both in metal cutting and in plastics production.

Kremikovtzi trade unions suggest open auction among suitors

Sofia News Agency reported Trade union leader believes that Kremikovtzi should be purchased by a new owner in order not to be declared bankrupt.

Trade unions suggest that the government should hold an open tender for the three candidates to bid for the purchase of the plant.

The three companies eyeing the ailing steel maker are Vorskla Steel, ArcelorMittal and the Essar Steel.

Dongkuk Steel to increase SBQ plate prices by 25%

Yonhap reported that South Korean steel major Dongkuk Steel Mill Co will raise the price of its heavy plates used to make ships by about 25% because of rising raw material costs.

Dongkuk in a statement said that the price will rise by KRW 250,000 (USD 238) per tonne to KRW 1.26 million starting June 30th 2008.

Dongkuk added that it will be the third price increase in 2008.

Global steel giants eying for Greenfield plants in Thailand

It is reported that 4 world class steel groups, ArcelorMittal, Nippon Steel, JFE and Chinese Baosteel have filed applications to the Industrial Department of Thailand about building steel plants in local.

However, some experts said "It is unlikely for local steelmakers to allow foreign mills dominating their market, just like things go in other countries, though the Thailand's government has invited ArcelorMittal, Nippon Steel, JFE Steel, TATA Steel and Baosteel etc. to look at building a massive steel plant in local to boost the domestic steel industry forward."

As per report, some foreign steel institutes suggest its better choice for those steel giants to build short range steel plants producing high end steel products or processing center, or rolling mills using hot rolled coil or semi finished products produced by self owned mills as raw materials in the country.

Experts said it is difficult for foreign steel mills to expand their presence in Thailand as the local steel mills, whether privately owned or state owned, are all belonging to different local political clubs, some domestic steel. Therefore, many global steel giants are reluctant to build subsidiaries there.

Tin misses out on LME contract changes

The London Metal Exchange announced that from September 29th prompt dates for five of the six primary metal contracts would be extended.

LME in a statement said that the longest dated contracts for aluminum and copper will be pushed out to 123 months or 10 years from 63 months currently. The zinc and nickel prompt date will be extended to 63 months from 27 months, while lead will run to 63 months from 15 months. However the furthest forward prompt date for tin will remain at 15 months.

Commenting on the move to Reuters, a trader said that “The pension funds will be interested they are keen to buy that far forward along with some hedge funds. Transparent prices will also appeal to those developing projects whose backers require a degree of hedging.”

However such interest is not yet evident in tin, which has seen very little trading activity beyond the traditional three months contract.

(Sourced from ITRI.co.uk)

US wire rod prices on increasing trend

It is reported that wire rod prices in US continued to increase, although demand has weakened.

Taubensee Steel & Wire has recently announced to raise its price by USD 70 per ton, effective from June 30th 2008; Keystone Steel & Wire Co will raise its wire price by about 9% from July 19th 2008. At the same time, ArcelorMittal will hike its wire price by USD 88 per ton from July 14th 2008.

On the other hand, the price of welded wire mesh has also raised; current 10 gauge welded wire mesh price from South East manufacturer is prevailing about USD 92 to USD 94 per ton, it is about USD 10 per ton higher than in last month.

(Sourced from YEIH.com)

Usiminas among the world's 200 most respected companies

Besides being ranked among Brazil’s 10 most valuable brands, Usiminas just got another important recognition. It’s the only Minas Gerais company among the world’s 200 most respected companies, according to a ranking prepared by the Reputation Institute and published by Forbes magazine on June 6.

The survey reviewed the companies’ leadership, performance and innovation processes. The Ipatinga’s steelmaker is listed in the 40th position.

Just another 11 Brazilian companies are included in the listing were

Tokyo Steel increases scrap purchase prices at four works

TEX reported that Japan's top electric steelmaker Tokyo Steel Mfg Co has increased what the company pays for locally available ferrous scrap by JPY 1,000 to JPY 2,000 per tonne at its four works, effective with June 24th 2008 purchases.

A purchase price increase of JPY 1,000 per tonne applies to seaborne arrivals at the Okayama works, with another purchase price increase of JPY 2,000 per tonne for overland arrivals. Also, a uniform purchase price increase of JPY 1,000 per tonne applies to all arrivals at the Kyushu, Takamatsu and Utsunomiya works.

As a result, the new delivered prices of No2 HMS are JPY 69,000 per tonne for seaborne and overland arrivals at the Okayama works; JPY 68,000 per tonne for seaborne and overland arrivals at the Kyushu works; JPY 67,000 per tonne for seaborne and overland arrivals at the Takamatsu works and JPY 70,500 per tonne for overland arrivals at the Utsunomiya works.

(Sourced from TEX Reports)

Empower yourself with domestic steel price trends in important markets

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.

Northwest Pipe announces energy products order

Northwest Pipe Company announced its single largest order for its energy products. Northwest said that it received a USD 10.6 million order from a Houston based distributor focused on serving the oil and gas industry.

Approximately two thirds of the order will be put into use as gas gathering pipe in domestic gas fields. The final third will be exported to Ghana, where it will be used in a tank storage farm.

Mr Brian W Dunham president & CEO of Northwest Pipe said that "We are very pleased to see this size of order for our energy products. This continues our pattern of success in penetrating the energy markets. We intend to build on this as we add our new facility in Houston next year and extend our product lines." He added that this order would be produced at Atchison in Kansas and would likely be shipped in the fourth quarter.

Mr Dunham said that "While this would not impact our second quarter results, it is indicative of the strong activity we are seeing in both our Tubular Products and our Water Transmission groups. While we expect strong performances from both groups during the second quarter, the Tubular Products Group, in particular, is performing well above our expectations."

Tamco Q2 profit up by 59% YoY

US based Tamco Inc said that its share of profits is up by 59% to USD 6.7 million for the second quarter, comparing to the same period in the previous year.

The company attributed the growth resulted to the strong rebar demand from the West Coast, mainly from highway and commercial construction.

In addition, Tampo keeps a bright view toward the demand and expects the rebar prices to grow stably due to high scrap costs.

(Sourced from YIEH.com)

Kremikovtzi might be closed down in October - Report

Sofia News Agency reported that Bulgaria's ailing steel mill Kremikovtzi is likely to be closed down in October 2008.

The report quoted Mr Lyudmil Pavlov chairman of the Metallurgy Federation at the Podkrepa Labor Confederation as saying that the steel maker will be shut down due to the lack of funds for the purchase of raw materials and for the payment of wages, the lack of state protection of the factory and the un likeliness of the plant to get a complex permit from the Ministry of Environment before the fall.

CSC board approves charging crane for SMS

Taiwanese steel major China Steel Corporation at the 6th meeting of the 13th Board of Directors on June 19th 2008 at Kaohsiung. Major items of the agenda adopted were:

1. Addition of an EOT crane for charging steel making materials to basic oxygen furnace at No 2 Steel making plant. This project will reduce the waiting time for charging materials and help increase liquid steel production.

2. In order to raise regional resource utilization efficiency and reduce pollution and CO2 emission, CSC has been promoting the integration of energy resources within the Lin Hai Industrial District since 1993 by selling excess quantities of energy resources to neighboring plants.

Since the Ta-Lin Refinery of CPC Corporation and Shang Cheng Steel Industrial Company wish to reduce their steam production or stop using steam boilers, they would like to buy steam from CSC. The meeting therefore resolved to set up additional steam pipes. This project is scheduled to complete in June 2010. When this project completes, about 35,500 tonnes of CO2 emission will be reduced per year in the Lin Hai Industrial District of Kaohsiung.

South Korean pig iron imports up in first 4 months

South Korea's non alloy pig iron imports totaled 146,055 tonnes in April 2008 and the imports rose by 8.9% to stand at 396,683 tonnes from January to April.

In addition, sponge iron imports reached 46,365 tonnes in April. The imports reached 116,043 tonnes in the first 4 months, decreased by 22.8% from the same time of last year.

Cast iron scrap imports reached 5,128 tonnes in April and totaled 23,905 tonnes from January to April 2008 period.

(Sourced from YIEH.com)

Skanska wins major order to rebuild railway in Czech Republic

Thomson Financial reported that Swedish construction group Skanska AB has won an SEK 835 million order from the Czech Railway Infrastructure Administration to rebuild a section of railway for use by express trains.

The contract, which will be included in Skanska's second quarter order bookings, relates to a 30 kilometer section of railway linking the towns of Stribro and Plana on the route between Prague and the German border.

Skanska's contract amounts to 45% of the total order from the Czech infrastructure authority, which is worth SEK 1.847 billion.

Skanska is the lead company in the consortium carrying out the work.

Increasing importance of Western Canadian market for steel

According to a report, the western Canadian steel market has been growing faster than that of Canada as a whole. The report was prepared by Stantec Consulting and the report outlines the specific structure of the western Canadian steel market, which has grown at an average annual rate of 2.8% since 2000.

The report said that the fastest growth was in plate steel, oil country tubular goods, energy tubular and long products used principally in construction and infrastructure applications. This growth is consistent with the recent and expected level of investment in the region, expected to exceed USD 200 billion over the next number of years.

The report also identifies a number of areas where the broader Canadian steel supply chain can deepen its cooperation to further support growth and investment in the region. Recommendations include
1. Further standardization of fabrication specifications and practices to improve total system materials costs
2. Increased attention to overall planning process timelines
3. Improved communications and information exchange within the steel supply chain on a national basis to improve linkages between producers, service centers, fabricators, and end use steel customers

To read full report, please visit
http://www.canadiansteel.ca/media/wssjune2008.pdf

High HDG prices may result in substitution by aluminum

Nobody needs to be told about the unprecedented steel prices levels globally in recent times, but the interesting fact is that due to surge in hot dipped galvanized steel prices, the difference between its alternative for some applications like covering ie aluminum sheets has shrunk, although aluminum prices have also increased but to a lesser extant.

The current levels and their specific gravity comparison is as under

Prices are in USD per tonne
Prices are indicative only

Thus, it is very clear that the same thickness of Aluminum sheets will have almost 1/3 weight of an HDG sheet, where as the price levels will be lower then HDG Sheets. Which means that aluminum sheet of same thickness would be cheaper than HDG sheet.

In addition, the advantages of the Aluminum over HDG are well known in the metallurgy as well as in usage especially with respect to corrosion resistance.

As thin HDG is mainly used for roofing or covering applications, possibility exists where we may see some users shifting from the HDG to the Aluminum sheets.

But the question is that weather users would switch to this substitute or not?

(Sourced from www.steelprices-middleeast.com)

Rotek announces USD 82 million expansion of Ohio facility

Rotek Incorporated, a leader in the design, development and manufacture of large diameter slewing ring bearings, announced plans to invest USD 82 million to expand its plant at Aurora in Ohio. The expansion is expected to create up to 150 new jobs, bringing employment up to 365 at the new facility.

Rotek said that the investment includes a second ring mill at the Aurora facility to serve its own expanding large diameter slewing ring production and help meet the growing demands in the United States for seamless rolled rings. With ring diameters of up to 280 inches and individual weights of 17 tons, the new SMS Meer RAW 400/400/6000 ring mill will be the most modern facility of its kind in the United States, providing high quality rolled rings for high integrity applications in the wind energy, construction, tunneling and offshore markets. Work on the new facility is scheduled to commence at the end of May 2008 and the plant is expected to begin production in the first quarter of 2010.

Large Diameter Slewing Ring production at the Aurora site will also be further expanded with the addition of a new 116,000 square-foot manufacturing plant housing the latest in production machinery and tooling.

Mr Leonard F Osborne president of Rotek said that "The planned expansion is an integral part of the company's growth strategy. This significant investment represents our continued commitment to provide the highest quality products and customer service possible. The investment will be the largest made since Rotek's founding in 1962.

Several US firms sign deals to invest in Vietnam

It is reported that several US companies signed deals to invest in Vietnam during a visit by the Vietnamese prime minister to Washington, to further expand business between the two countries.

Mr Carlos Gutierrez commerce secretary of US in a statement said that "These are important investments that will improve Vietnamese productivity and add to the growing economic partnership between our countries.”

Mr Gutierrez and Mr Nguyen Tan Dung PM of Vietnamese met privately before the two officials presided over the signing of several commercial deals.

The US Commerce Department said the new arrangements seek to expand already growing US exports to Vietnam, which grew by close to 73% in 2007.

Japanese firms invited to bid for Sri Lankan port project

SeatradeAsia Online reported that the Sri Lanka Ports Authority has called for bids to build a new JPY 14.5 billion (USD 134.3 million) port in southern Galle, next to the existing harbor.

The report added that bidding for the project, funded by an Official Development Assistance loan from the Japan Bank for International Cooperation is only open to Japanese firms and will be opened on July 3rd 2008.

The project aims to expand the current port's capacity to meet future demand with a new breakwater, harbor basin with a deeper draft and multi purpose terminal to handle bigger vessels.

Sri Lanka Ports Authority officials said that the aim is to develop Galle to handle conventional cargo that is currently handled in Colombo port as well as cargo for the local industries in the southern region. The main commodity handled by the existing Galle harbor is cement.

Japanese steelmakers eying on Dongkuk SBQ plate markup

TEX reported that Japanese integrated steelmakers are watching with interest to see what price increase South Korea's electric steelmaker Dongkuk Steel Mill Co will execute in its domestic sales of ship plates to meet a cost increase of the company's slab imports from Brazil.

The report added that there is no information so far that Dongkuk Steel has settled its slab import negotiations with Brazilian integrated steelmakers for shipments in the July to September quarter. But it is considered unthinkable for the Brazilian steelmakers to reduce slab prices to USD 1,000 per tonne FOB or less in what they negotiate with the Korean customer, given a more advance in iron ore prices.

According to Japan's steel industry sources, if Dongkuk Steel and the Brazilian steelmakers have settled their slab deals this time at a price level of USD 1,000 per tonne FOB, its C&F value will amount to around USD 1,150 per tonne. The sources also forecast that Dongkuk Steel will need to sell ship plates at a dollar denominated price level of USD 1,300 to USD 1,400 per tonne FOB if the company's ship plate production is based on imported slabs at USD 1,150 per tonne CNF.

At present, Dongkuk Steel sets the asking price of ship plates at KRW 1,010,000 per tonne (USD 986) for domestic sales. Chances are the company will find it necessary to price up ship plates as import costs of Brazilian slabs are forecast to advance by as much as USD 400 per tonne in the July to September quarter.

Meanwhile, Japanese integrated steelmakers are scheduled to start their ship plate export negotiations with South Korea's shipbuilding companies in mid-July on shipments in October to March next. The Japanese steelmakers are expected to offer prices that will translate into JPY 130,000 to JPY 150,000 per tonne FOB, market sources believe.

(Sourced from TEX Report)

Pilsen Steel 2007 profit up by 27% YoY

CTK reported that the Pilsen Steel steelworks generated a gross profit of over CZK 970 million in 2007 up by 27% YoY as compared to 2006 and its sales exceeded CZK 5.42 billion up one third year on year.

Ms Hana Hadrbolcova a spokeswoman of Pilsen told CTK that "The firm exported 85% of its output, mainly to Germany, Italy, Spain, India, Russia, the USA and China.”

Pilsen Steel is the world's leader on the market of windmill shafts and the second largest producer of crankshafts for giant four stroke engines, used mainly in the shipbuilding industry. It’s produces open die and tooled forgings of up to 80 tonnes of weight.

Nucor CEO sees a decades of high commodity prices

According to Mr Dan DiMicco chairman, president & CEO of Nucor, the price of steel making raw materials such as iron ore, coal and scrap metal will continue to rise for several years, keeping pressure on manufacturers and consumers.

Mr DiMicco during the American Metal Market's Steel Success Strategies conference told delegates that "The bull market for commodities will last for decades to come and our customers need to get used to it,"

He said that "Iron ore is up several hundred percent, scrap prices are USD 600 to USD 700 per ton, pig iron is USD 900 per ton and coal is rising several hundred percent even as we speak. I believe raw materials, including scrap, will continue to see escalation in prices.”

In his address, Mr DiMicco gave an upbeat forecast for steel, citing favorable industry dynamics driven by global demand, especially from China, India and other emerging economies. He compared the current climate to that of the late 1940s and early '50s, when the industry was being rebuilt after the destruction of World War II.

He said that "But today is different in that we are building an infrastructure that didn't exist before. Consumption growth is rocketing to 5 percent to 7% per year and it is being driven by a demographic of 2 to 3 billion people in a world that wants a better standard of living.”

His comments, during the conference, echoed those of Mr John Surma CEO of US Steel Corp. Mr Surma told Reuters that spiraling iron ore costs were pushing steel prices even higher and he warned that growing demand is straining miners' capacity to supply raw materials. Steel prices have soared almost 50 percent this year, as raw material costs continue to climb and global demand shows little sign of abating.

Turkish scrap buying slows down a bit

In the third week of June 2008, the export price of American shredded scrap to Turkey was about USD 720 to USD 727 per tonne CNF.

Turkey also purchased H1 & H2 mixed scrap at USD 720 to USD 722 per tonne CNF from the east coast of America.

Although Turkish scrap buying has slowed, the American scrap market is still strong.

(Sourced from Yieh.corp)

Emirates Steel delays USD 2 billion refinancing

MEED reported that Emirates Steel Industries is delaying plans to raise up to USD 2 billion in project finance debt until 2009, because of high financing costs. The firm will now use a smaller bridging loan in the short term.

Relief for steel users in Middle East Asia

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.

India and Pakistan resolve disputes over IPI project – Report

IRNA reported that India and Pakistan have resolved all bilateral commercial issues impeding implementation of the USD 7.4 billion gas pipeline from Iran and will jointly address Tehran's demand for price revision.

Mr Shah Mahmood Qureshi Pakistani foreign minister, after a brief meeting with Indian petroleum minister Mr Murli Deora, said that "I am happy to report that as far as Pakistan and India are concerned, we have resolved all bilateral issues. There is no issue whatsoever that needs to be addressed now."

It may be noted that India has been boycotting Iran Pakistan India gas pipeline talks since August 2007 over transit fee demanded by Pakistan for passage of gas through Pakistan. Differences between the two nations were narrowed at a meeting of oil ministers in Islamabad in April 2008.

Meanwhile, according to PTI, Oil Secretaries of the two countries will now meet, as early as July 1st 2008 in Madrid, to evolve a strategy to deal with Iran's insistence on a price revision clause in rates already agreed by the three nations.

Kuwait to spend record USD 71.4 billion in 2008-09 fiscal

The Kuwaiti parliament has passed the budget for the 2008-2009 fiscal year projecting record spending of KWD 18.966 billion and a massive deficit. Spending in the fiscal year from April 1st 2007 to March 31st 2008 is up a mammoth 68% on last year’s estimated expenditure of USD 42.5 billion.

The new budget, however, includes a USD 20.6 billion one off payment to cover the deficit of the state-run pension agency. Revenue is estimated at USD 47.6 billion up by 52.8% YoY. This would leave a huge budget deficit of USD 23.8 billion, but the emirate is still expected to have a healthy surplus because the budget adopted a conservative price of USD 50 a barrel in calculating oil revenues.

Kuwait projected a deficit in each of the past nine years but eventually posted a surplus on the back of strong oil prices totaling more than USD 100 billion. During the last fiscal year income was a record USD 71 billion and a surplus of about USD 43 billion was posted.

The budget assumed oil production of 2.5 million barrels per day, whereas the emirate currently pumps 2.58 million barrels per day. Kuwait has upwards of USD 260 billion in foreign assets. It has a native population of slightly more than one million in addition to 2.35 million foreign residents.

Iran and Tajikistan discuss joint projects

Mehr News Agency reported that Tajikistan President Mr Emomali Rahmon has met with Iran’s economic delegation to discuss issues of mutual interest.

The Iranian delegation arrived in Dushanbe for a 3 day visit to Tajikistan to discuss implementation of joint development programs between the two countries, especially construction of the Sangtoudeh II dam and power plant as well as future projects.

Mr Kourosh Parvizian head of the Iranian delegation noted that the two sides agreed on the implementation of joint projects in different sectors, including agriculture, textile and building construction by both sides.

Iran and Turkmenistan hold border railway commission

Mehr News Agency reported that officials of Iran and Turkmenistan railways held a joint commission at Sarakhs border railway station.

Mr Mohammadreza Keymanesh deputy director of Iran’s National Railways Company sa8id that so far, USD 50 million has been spent for expansion of Sarakhs border railroad. He added that USD 50 million is also to be expended in the current year.

Removing the technical glitches and long halts of wagons, time setting for wagon exchange in Sarakhs station, and providing vacant wagons for specific periods of time were the topics of the commission.

Danieli to build new meltshop for Unisteel

It is reported that United Steel Industrial Company has selected Danieli for the supply on a complete turnkey basis of a new steel meltshop to be installed in the Shuaiba Industrial Area of Kuwait.

The new plant will produce about 780,000 tonnes per annum of commercial steel billets to feed an existing rolling mill approximately 500,000 tonnes per annum of rebars and the balance will be supplied to the market.

The new plant will be basically made up of a 120 tonnes, 6.5 meters shell diameters FastArc EAF provided with HiREG Plus and Danarc Modules technology, 120 tonnes inert roof ladle furnace refining station, five strand, 9 meters radius FastCast conticaster to produce square billets from 130 to 150mm, material handling system and fume treatment plant serving both EAF and LF and all the auxiliary equipment and facilities.

Danieli Automation will supply the complete electrical and L1 and L2 automation and process control packages. All auxiliary plants and systems, 132/33/20 kV outdoor Substation, warehouse, workshop, laboratories and ancillary buildings are also included into the Danieli scope of works.

The complete turnkey supply also includes all civil works, building steel structures, internal infrastructures, roads and paved areas, storm water drainage and sewerage networks, yard lighting, perimeter fencing and gates, erection and supervision activities. These activities will be carries out by Danieli Construction International.

Trump may join Nakheel to build tallest building in world

Arabian Business reported that the race to build the world's tallest skyscraper just became a little more interesting. Trump Organization, one of America's biggest real estate developers, may join forces with Nakheel to build the world's tallest building in Dubai.

Trump Organization has expressed an interest in extending its partnership with Nakheel to build the world‘s tallest building, The Burj Dubai, overseen by Dubai master developer Emaar, currently holds the world record, at around 1600 meters and growing.

The Burj Dubai, the centerpiece of a 500 acre development downtown, had long surpassed the Taipei 101 skyscraper in Taiwan as the tallest structure in the world. Construction competition in the Middle East is likened to the skyscraper building frenzy in 1920s New York City. And industry insiders say it's only appropriate that Donald Trump, who embodies massive development in that city, be a participant.

Saudi plans water and power projects worth USD 12 billion

Gulf News reported that Saudi Arabia has planned more than USD 12 billion worth of water and power projects that will supply an additional 2.24 million cubic meters of water per day and 2,750 MW of power in the next few years.

Mr Fehied Al Sharif governor of Saudi's Saline Water Conversion Corporation and chairman of the Privatization & Restructuring Team said that Saudi is also set to privatize key government owned assets and expects the total capital and operation investments value of desalination privatization projects to hit USD 43 billion over the next 20 years. He added that "The government has decided to privatize key government owned assets under the guidance of the Supreme Economic Council. The water, wastewater and water desalination sectors have been put on top of the list."

Mr Al Sharif said that the projects will boost the water and power supply in the country, which will need 8.3 million cubic meters of fresh water per day and 70,000 MW of power capacity by 2024. So far, at least four independent water & power projects have been approved by the Supreme Economic Council.

Sindh has rights over its own coal in Pakistan

Daily Times quoted Mr Qaim Ali Shah chief minister of Sindh as saying that the federal government has finally accepted the constitutional right of the province to its natural resources and coal has been admitted as a provincial subject.

Mr Shah said that the present government has assigned a high priority to the Thar coal reserves. The previous government did nothing but sign failed MoUs. He said that many foreign companies had made offers for the development of Thar coal and coal based power plants in Thar and Keti Bandar.

Provincial information minister Mr Shazia Marri said that the Opposition should appreciate the efforts made by the chief minister to acquire the province’s right from the federal government. He said that coal reserves in the Thar Coalfield were very important for the province, as well as the country, as according to an estimate they are worth 60,000 billion US dollars.

Sindh earmarks PKR 3.41 billion for new mining projects

Daily Times reported that Sindh government has allocated PKR 3.41 billion for various ongoing and new mining projects in its annual development program for the next 2008-09 fiscal.

The provincial government has approved PKR 3.198 billion to initiate 3 new schemes to be carried out under directorate of mines and minerals. The scheme includes establishment of small scale mining practice mechanism with the allocation of PKR 2.5 billion.

The major issues related to small mining operations are regularization, environmental management, financial arrangements and taxation, technical assistance for mine development, training needs, occupational health and safety.

The provincial government earmarked PKR 600 million to establish training institute specifically in the field of mechanizing mining and coal based power generation with the collaboration of foreign institutions. The mines and mineral department will spend PKR 98.85 million on the account of ‘Benazir Training Program’ for the training of young graduates in this field.

Sindh government also allocated PKR 212 million upon the various under proceeding schemes of mining sector for the next fiscal year. This budget allocation will be spent on around eight development projects being carried out in different parts of the province.

The projects include exploration and evaluation of dimension and cut stone deposits in Thatta, Jamshoro or Dadu, feasibility report on granite deposit in district Thar, e government agency specific general application website on geo-data phase, establishment of rescue station in Tharparkar, establishment of safety equipment warehouse at Lakhara, environmental impact assessment due to mining activities in Sindh; establishment of mining polytrate training institute at Lakhara, establishment of rescue station and dieses detection centre at Lakhra.

IranConMin 2008 kicks off in Tehran

Mehr News Agency reported that the 8th International Trade Fair for machinery, plant, processes, materials for construction industry, building materials and natural stone industry, coal and ore mining kicks off in Tehran Permanent International Fairgrounds.

The fair aims to introduce and showcase the latest approaches and achievements of 246 domestic and foreign companies mostly form Spain, Ukraine, the United Arab Emirates, Italy, Germany, Turkey, China, Russia, Japan, Sweden, South Korea, and Greece in 19,000 square meters of area.

IranConMin focuses especially on the Iranian and neighboring markets for building, construction material machines, mining and natural stones.

The expo will run till July 2nd 2008.

KPT unveils rail and port connectivity plans

Daily Times reported that Karachi Port Trust has unveiled plans regarding rail connectivity with the port and cargo yards.

Ms Nasreen Haque chairperson of KPT said that as a first step the railway track dismantled connecting TPX and Groyne Yard would be restored. She added that railway line would also be extended to the coal stacking area near Groyne Yard for direct loading from there.

She emphasized the importance of advance planning by railways in line with the KPT plans for development of their infrastructure and rolling stock enabling proper logistics to cater for the present and future traffic.

Maanshan wheel production ranks No 1 in the world

It is reported that Magang’s train wheel production capacity entered into the world No 1 and the technical level also reached forefront of the world.

Mr Li Xiang vice chief engineer said that Magang not only occupy most of the domestic market, but also has great competitiveness in the world

He said that “The subway trains wheels of South Korea are almost all from Magang, the subway wheels of Guangzhou, Shanghai, Shenzheng are also mostly from Magang, 80% procurement of locomotives produced by United States GE Company are from Magang.”

At present, Magang’s annual production capacity of wheels is 650,000 pieces and the production value exceeds CNY 2 billion. With the completion of the expansion renovation project by the end of this year, Magang will have an annual production capacity of 1 million pieces.

Chinese steel giant Hebei Iron and Steel appoint chairman

It is reported that Mr Wang Yifang GM of Tanggang Group was appointed as the board chairman and GM of Hebei Iron and Steel Group.

Mr Liu Rujun board chairman of Handan Steel was appointed as the party secretary of Hebei Iron and Steel Group.

As per reports, Hebei Iron and Steel Group will complete the registration on June 27th and will hold listing ceremony on June 30th.

Chinese HDG export price remain stable

It is reported that Chinese domestic hot dipped galvanized steel sheet and coil price is largely unchanged and this is also the case with export market.

According to Mysteel, on Shanghai market price for 1.0mm HDG by Anshan steel remain at CNY 7600 per tonne, 0.5mm HDG by private producer at CNY 7800 per tonne flat with last week. As forecast, there would be no room for further increase if it could not exceed CNY 7600 per tonne.

Export offers are quite different due to different production cost, quality. Quotation by a mill in Tangshan is only at USD 1120 per tonne fob for 1.0mm HDG Z120 and that by a tier two steel maker in Hebei province is at USD 1135 per tonne to USD 1140 per tonne FOB.

(Sourced from MySteel.net)

Chinese steel product import from different countries

It is reported that China steel product import during January to May reach 6,996,470 tonnes in which Japan topping at 2,561,167 tonnes.

China steel product import from different countries is as under

In tonnes

(Sourced from MySteel.com)

China domestic price scenario influences global trends

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.

Chinese billet export price further increase

It is reported that China has been exporting billet again despite sky high prices. Traders are quite active and they have been around producers and find ways to get in for allocation.

Chinese domestic billet prices are temporarily stable this week following the drop from peak levels. In Tangshan, Q235 150mmx150mm billet goes at CNY 5250 per tonne to CNY 5300 per tonne, 20MnSi grade products at CNY 5400 per tonne.

As per report export offers for Q235 150mmx150mm billet are prevailing at USD 1100 per tonne FOB to USD1130 per tonne FOB and some steel mills have been fully booked for their allocation, July or August shipment.

Normally, there is an extra of USD 10 per tonne for 120mmx120mm and another USD 10 per tonne to USD 15 per tonne for 20MnSi quality.

Customs statistics show that billet export volume reached 10,505 tonnes in May which compares with 8093 tonnes for April.

(Sourced from MySteel.net)

Tianjin Pipe R&D center starts installing testing equipments

It is reported that in the technology research and development center of Tianjin Pipe Group, the experimental devices have been installed in place and is designing and developing TP special and oil bushing, and trial producing corrosion resistant oil pipelines.

As per report the outside structure of technology and research building of Tianjin Iron and Steel Company have been completed where the key online technical equipments and laboratory equipments have been put into production.

WISCO bags excellent supplier award from Caterpillar Inc

It is reported that the high performance steel for grab developed by WISCO becomes the excellent supplier of Caterpillar Inc Company and Caterpillar Inc has awarded “Caterpillar excellent supplier cuprum brand” to WISCO.

Caterpillar Inc Company is a large supplier of engineering machinery, earthwork machinery, engine etc and ranks into the world top 500.

Caterpillar Inc Company has confirmed the 2010 strategic goal, the sales revenue to reach CNY 50 billion and the steel plate demand will increase by the proportion, WISCO will continue to develop high-performance steel products for the company in the future.

Yunnan sees sharp drop in steel export in the first five months

Due to tax correction of semis and low end product, appreciation of RMB as well as the inflation in Vietnam, steel export from Yunnan province only registered 50,000 tonnes in the first five months of this year with a value of USD 36.9 million down by 88.2% YoY and 80.6% YoY respectively.

According to the official in related department of the Customs, about 113 out of 203 steel product codes have been imposed with taxes in 2008. Varieties that are exported in quantity from Yunnan include steel billet, ferroalloy, wire rod and rebars, taxes levied being 25%, 20%,15% and 15% respectively.

The tax rise led to a steep drop of the provincial steel export in the first five months.

The main steel items for export this year contain wire rod, rebar and ferroalloy, which take up 90% of steel export of the province.

(Sourced from Chinese Economic Information Daily)

REpower to supply 24 wind turbines to Guangdong Baolihua

It is reported that REpower North Co Ltd has received an order for 24 wind turbines from Guangdong Baolihua New Energy Stock Co Ltd, an energy and property company based in Guangzhou.

As per report, the Chinese joint venture in which REpower Systems has a majority interest of 50.01% will deliver the turbines of type MM82 each with rated power of 2MW in summer 2009 for a wind farm on the coast of Guangdong Province, 2,000 kilometers southeast of Beijing.

The turbines of type MM82, which REpower North has been constructing in Baotou since May 2008, are designed for the high wind speeds on the south Chinese coast and in northern China and are also available in Cold Climate Version for temperatures down to 40º C.

The joint venture REpower North Co Ltd was established in 2006 by REpower Systems AG, the Chinese steel and engineering company North Heavy Industry Corporation and project developer Honiton Energy Ltd in Baotou in Inner Mongolia. From 2009, 200 turbines meeting German quality standards are to be produced each year.

Court rules in favor of Severstal buy of WCI

It is reported that the Ohio based metals processor WCI Steel Inc that emerged from bankruptcy in 2006, won a judge's ruling that paves the way for its USD 140 million buyout by Russia OAO Severstal.

WCI and its board were sued June 13 in Delaware Chancery Court by three shareholders with a 15% stake contending the company ignored a USD 172 million bid from Optima International of Miami. The shareholders alleged directors wrongly agreed to the Severstal deal under pressure from a steelworkers' union.

Judge Stephen P Lamb denied the investors request for an injunction to stop the Severstal buyout. Mr Lamb said that “WCI was under pressure to complete a deal or face the prospect of a second bankruptcy' and the board exercised a very thorough judgment in approving the Severstal transaction.

In court papers, WCI lawyer Gregory Williams said that under a collective bargaining agreement, the company couldn't be sold without union approval. Mr Williams said that “This is a transaction that has been approved by the shareholders and there's no way to invalidate it.''

WCI vide a release said that “The management, employees and most shareholders of WCI Steel Inc, are pleased with the ruling of Vice Chancellor Lamb in the Court of Chancery of the State of Delaware not to preliminarily enjoin the closing of the sale of WCI Steel Inc to Severstal in connection with the suit of Optima International of Miami and a small group of dissident shareholders. We expect to receive shortly the approval of the sale by the Committee on Foreign Investment in the United States and to finalize the sale to Severstal very early in July.”

Evraz Claymont Steel goes for EFSOP Holistic Optimization™ technology

Claymont Steel Inc a wholly owned subsidiary of Evraz Group SA has announced that it placed an order for one Goodfellow EFSOP® process optimization system for their 160 tonnes electric arc furnace at Claymont in Delaware.

According to the report the EFSOP holistic optimization™ technology will use off gas chemistry to analyze the process and explore better EAF practices for reducing load on the fume system.

The released added that the EFSOP® water off gas tracking alarm will use off gas analysis to provide indications of water present in the furnace to help decrease the risk of bag house explosions resulting in improved safety within the furnace environment. Installation and commissioning of the system is expected for October 2008.

Gazprom CEO sees USD 400 level for gas to Ukraine

According to Mr Miller head of Gazprom Ukraine will buy gas at a price close to the average European.

Mr Miller said “There is understanding that since January 1st 2009 the supply of gas to Ukraine will be carried out on the market principles. We must be realistic the price for Ukraine since January 1st 2009 will be close to the average European prices.”

He said that Gasprom and Naftogas Ukraine have established a working group, which will prepare the contract. He added that the price for Ukraine will exceed USD 400.

OMK Vyksa reports results for 5 months

Vyksa Steel Works part of United Metallurgical Company has reported its operating results for May and the five months of 2008.

As per report, Vyksa Steel Work produced 119,238 tonnes of pipes of various grades in May 2008 and 618,515 tonnes from the beginning of the year. It manufactured 48,282 tonnes of large diameter pipes in May. Large dia pipe output in January to May was 298,817 tonnes.

The VSW Wheel Rolling Facility produced 70,706 railroad wheels in May 2008 and the total output for the first five months of 2008 reached 355,014 wheels.

Mr Viktor Zubkov appointed as chairman of Gazprom

It is reported that the annual General Shareholders Meeting of Gazprom has been succeeded by a meeting of the newly elected Board of Directors.

As per report the meeting resolved to elect Mr Viktor Zubkov first Deputy Prime Minister of the Russian Federation as Chairman of Gazprom’s Board of Directors.

Mr Alexey Miller Chairman of Gazprom Management Committee was named as Deputy Chairman of the Board of Directors.

Ukraine and Russia should solve gas talks - Mr Yushchenko

Ukrainian Journal Staff cited Mr Viktor Yushchenko president of Ukraine as saying that Ukraine and Russia should quickly work out the price of natural gas.

Mr Viktor Yushchenko said "By the middle of August or by September 15th at the latest, we should fix the gas price terms at the level of the governments and at the level of Naftogaz Ukrayiny and Gazprom."

Gazprom wants to be world larges company - Mr Alexey Miller

Mr Alexey Miller CEO of Gazprom told to the journalist that it is expects to be the world largest company in 7 to 10 year.

Gazprom at present is the world’s 3rd largest company by capitalization. The capitalization of Gazprom is 46 times greater than its level in 2000.

Somalia invites Russian firms to develop uranium deposits

RIA Novosti cited Mr Mohamed Handule Somali ambassador to Russia as saying that Somalia hopes Russian companies will take part in the development of uranium deposits, and oil and natural gas production.

He said that "Today we say let's cooperate. Somalia is a very rich country this is the main basin of oil and gas on the territory of the Horn of Africa."

Mr Handule said prospecting for uranium deposits had been carried during the Soviet era. He said that "Somalia believes that production of this uranium is a prerogative of Russian firms, stemming from former intergovernmental agreements with the USSR."

Mr Handule also said "A space center in Somalia could be used as an international space center, a site that could supplement Baikonur. He said that rockets with telecommunications satellites on board could be launched from there.”

The Baikonur space center, built in Kazakhstan in the 1950s was first leased by Russia from Kazakhstan under an agreement signed in 1994 after the collapse of the Soviet Union. Russian officials have repeatedly said Russia will continue to use the Baikonur launch site until at least 2050.