SAIL to set up two steel processing plants in UP

It is reported that Steel Authority of India Limited will set up 2 steel processing units in Sitapur and Amethi in Uttar Pradesh.

Each unit would be constructed at a cost of INR 3 billion and each unit would generate employment for 1,500 people.

Mr Ram Vilas Paswan union steel & fertilizer minister said that the board of SAIL has already given its approval for the 2 units. SAIL board has also decided to purchase the land directly from the farmers for these units.

Essar still hopeful to win Esmark bid - Report

ET is reported that all is not lost for the Essar group that is facing a rival bid to acquire the US based steelmaker Esmark as Esmark board is yet to take a call on a similar bid from the Russian mining and metal company Severstal. It is expected to meet shortly to decide its stance on the issue.

It is learnt that a 20 member Essar team is stationed in the US and working with the Esmark team on the merger. It is also learnt that Essar executives are in discussions with the USW to garner support for the deal.

An Esmark official said that "Our board will have to review the offer presented by Severstal and then evaluate its merits against the Essar deal from a shareholders’ perspective. Our board has not yet completed its review of the Severstal offer, and therefore, we do not have any formal comment on either offers’ preference at this time. I would suspect that our board will meet shortly."

It may be recalled that Essar had signed a deal to acquire Esmark for USD 17 a share on April 30th 2008, but faced the first problem two weeks ago when United Steelworkers Union, opposed the Essar bid and favored the Severstal offer. Essar also announced to absorb Esmark’s debt of USD 400 million and provided loan of USD110 million to restructure Esmark’s borrowing.

India becomes big player in carbon trading market - WB

The latest World Bank figures show that India has emerged as a big player in the carbon trading market, ranking as the second largest seller of carbon credits in the global market in 2007. Although its share is only 6%, as compared with China's gigantic 73%, India now has 930 carbon credit projects in the pipeline.

Most of India's carbon credits are bought by companies in developed countries that have ratified the Kyoto Protocol on climate change. Under the protocol, developed countries must cut all greenhouse gas emissions by an average 5% below 1990 levels by 2012. Carbon credits are generated by companies in the developing world when they move to cleaner technologies that help to reduce their greenhouse emissions. India is not obliged to cut emissions, as its energy consumption is low. For Indian companies, this trade offers a great opportunity.

The World Bank estimates that the potential for India from this trade is around USD 100 billion annually. Carbon credits are traded in European commodities markets. The reason for the success of the carbon credit business in India was that it is cheaper to buy credits from India than Europe.

For every tonne of carbon dioxide reduced, the company receives a carbon emission reduction certificate that it can sell like any other commodity. The current price is around EUR 10 to EUR 17 per credit.

Ms Rita Roy Choudhury deputy director of Confederation of Indian Industry said that "This is a great opportunity for Indian companies to invest in clean technology. These carbon credits give them an incentive to make the switch and thereby reduce their emissions in a way that would not be possible without the carbon credit mechanism."

Ms Choudhury said that hundreds of companies are jumping onto the carbon credit bandwagon by adopting cleaner technologies. Even big household names such as Reliance Industries, Grasim Industries and TATA Chemicals are considering investing in carbon trading.

In 2007, Indian companies made USD 300 million by selling CERs. By 2012, India's earnings are estimated to jump to USD 3.6 billion.

Grupo Mexico to block Asarco buy out by Sterlite

A day after Sterlite announced that it is acquiring Asarco, Grupo Mexico has said that it will do absolutely everything in its power to block the sale of its bankrupt subsidiary, which could also be a legal tangle.

Grupo Mexico said that it was denied key information that would have allowed it to properly value Asarco.

Sterlite officials, while expressing optimism over their stand however said that every party had a right to appeal. A Sterlite spokesperson said that "We need to get only one clearance, that of US Bankruptcy Court in Texas."

Sterlite said that "Asarco is a strategic fit with Sterlite's existing copper business."

Earlier, Sterlite said that it had agreed to buy the entire operating assets of Asarco for USD 2.60 billion in an all cash deal, also making it the largest deal by an Indian company in 2008. The deal catapults Sterlite into the world's 3rd largest copper producer from the present 5th with estimated reserves of 12 to 13 million tonnes. Besides, it also gives the metal major a global footprint and a key foothold in North America.

Indian pipe makers may shift production out of India

Live mint reported that Indian steel pipe makers, hurt by a 10% export duty, could shift their production out of India.

Mr Ashok Punj MD of PSL Limited said that "We were already planning to expand capacity of our Sharjah plant to 300,000 tonnes per annum from 75,000 tonnes, but the export duty notification has made us expedite the plan. We expect to complete the expansion in next 12 to 16 months."

Mr Prasanto Sengupta director of corporate finance at consulting firm KPMG said that "If export duty continues over the long term, then one way to get around it would be to get to the market they are servicing or being closer to those markets. I do not see manufacturers immediately shifting base if they have huge CAPEX in India, but if the duty continues over a long term, they might just have to."

Steel pipe makers such as Jindal Saw Limited and Maharashtra Seamless Limited export 25% to 40% of their output, while Man Industries Limited and Welspun export about 80% every year.

According to industry experts, demand for steel pipes is expected from West Asia and other Asian countries, which account for 45% of the global demand, followed by North America at 33% and Europe at 16%. This demand is expected to grow significantly and Indian companies are already considering capacity expansions.

India is a major exporter of steel pipes, particularly to companies in West Asia and the US such as Exxon Mobil Corporation, Chevron Corporation and Saudi Aramco and caters to one third of the global demand. But with the tax, on top of a near 40% rise in steel prices in the past 6 months, steel pipe makers said they would need to make the pipes overseas to remain competitive.

SAIL replaces TCS as the highest wage payer in 2007-08

Steel Authority of India Limited has overtaken TATA Consultancy Services as the highest wage payer in 2007-08. SAIL’s wage bill increased by 55.8% in 2007 as compared to a 6.4% fall in the wage bill of TATA Consultancy Services. In actual terms, SAIL has spent INR 7,619 crore on staff expenses in 2007-08 as against INR 6,015 crore spent by TATA Consultancy during the same period.

That the wage bill of TCS has declined in 2007-08 is not surprising. It has been talking of wage cut since the middle of 2007 following tight business conditions. What is surprising, however, is that the wage bill of SAIL has increased sharply despite a reduction in workforce by more than 4,000 in 2007.

A better product mix and higher price realization may still have increased its turnover by 17%, but the sharp rise in wage bill has dented its operating margins operating margins increased 17.8% in 2007-08 as against 49% in 2006. This is reflected in the sharp rise in share of wages in turnover, up from 20.4% in 2006-07 to 27.4% in 2007-08.

An ET survey of 200 large companies finds that their aggregate wage bill has risen by 23.3% YoY in 2007-08 over 2006-07 as compared to 18.7% rise in net sales. This has increased the share of wages in sales from 6.2% to 6.5% during the same period.

TATA Steel bags TERI award for HIV awareness

It is reported that TATA Steel was awarded the TERI Corporate Award for its initiatives for HIV/AIDS. Mr Kamal Nath union minister of commerce & industry has given away the award. Mr HK Gardin head of family initiatives, corporate sustainability services, received the award on behalf of TATA Steel.

The prestigious Global Business Coalition Award for 2003 for Business Excellence was conferred on TATA Steel for its response to the epidemic and its outstanding HIV/AIDS awareness activities in the steel city and its adjoining areas. The award is conferred on companies who have evolved best practices on HIV/AIDS prevention, especially to reduce the stigma and discrimination.

The award was given in collaboration with Deutsche Gesellschaft fur Technische Zusammenarbeit to recognize and mainstream corporate leadership for HIV/AIDS intervention. The award was given in recognition for TATA Steel’s initiatives and progress made on the same in the last financial year. TATA Steel had applied in category III.

Mr Sanjay Choudhry chief of corporate communications at TATA Steel said that the award was yet another recognition for the company and its commitment to providing better standards of living for the communities it operates in. He added that "The selection criteria for receiving the award was an analysis of the objective of the study, response to the needs of the community, process of implementation, difference made by the program to the community and sustainability component of the program."

The health and safety of the employees and the community is extremely critical for TATA Steel and is enshrined in the company’s vision. It has taken proactive steps in AIDS prevention by spreading awareness not only among its employees, but also the community at large so that the inhabitants of Jamshedpur and other locations, remain safe.

TATA Steel has evolved a corporate sector model to prevent the spread of STD/HIV/AIDS, globally and nationally. This model is being shared through forums like ILO, Global Business Coalition on HIV/AIDS, Global Compact Initiatives, National AIDS Control Organization and Jharkhand AIDS Prevention Consortium. This program extends to the rural and urban populace residing in and around Jamshedpur.

In 2007, TERI introduced the Corporate Awards to Business Response to HIV/AIDS in collaboration with GTZ.

DEPB on Chapter 72 fully withdrawn

BL reported that the Indian government has withdrawn duty drawback benefits on all iron & steel, cement and rice shipments. Henceforth, exporters of these commodities will not be entitled to any rebate or refund of customs, excise or service tax paid on inputs used for their production.

In a notification dated May 29th 2008, the revenue department has said that no amount or rate of drawback shall be determined in respect of any goods falling within Chapter 72 or heading 1006 or 2523 of the First Schedule to the Customs Tariff Act, 1975. Chapter 72 covers all iron & steel products, while headings 1006 and 2523 relate to rice (including basmati) and cement, respectively.

The finance ministry specifies drawback rates for individual export items after factoring in broad parameters including standard input output norms pertaining to its manufacture, the share of imported vis a vis domestically sourced inputs and the prevailing rates of customs, excise and service tax on the inputs.

This move comes in the backdrop of a weakening rupee, which has made exports more remunerative. With the headline inflation rate crossing eight per cent, the Centre is keen to augment domestic availability of sensitive items and, therefore, discourage exports to the maximum.

Masteel to appeal against court decision on Mukund claim

Malaysia Star reported that Malaysia Steelworks Ltd plans to appeal against a Court of Appeal decision that allowed Mukand Ltd’s claim of USD 206,639.

Masteel in a filing with Bursa Malaysia said that its legal advisor is in the process of submitting its appeal against the decision to the Federal Court within the allowable time frame.

Masteel said there was no order for the sums of USD 91,500 and USD 5,000 claimed by Mukand.

On May 15th 2008, the Court of Appeal had ruled Mukand’s claim be allowed and the counterclaim of Masteel be dismissed. The judgment had given to the plaintiff an amount of USD 206,639.95, which represented the balance sale price only and interest at 8% per annum from May 10th 1999 and cost.

Indian steel ministry seeks gas at par with fertilizer sector

BS reported that the Indian steel industry has joined the list of sectors that are unhappy with the government’s gas utilization policy. Aggrieved at being ignored from the list of priority sectors for gas allocation, the steel secretary has shot off a letter to the petroleum secretary seeking not only more supplies but also bringing steel on a par with the fertilizer sector.

The demand has been made in wake of acute shortage of natural gas for 3 plants namely Essar Steel, Ispat Industries and Vikram Ispat, which use gas as fuel for making DRI. While the requirement of these plants is 12.90 million standard cubic meter per day, the allocation is 5.76 million standard cubic meter per day and availability 1.85 million standard cubic meter per day or 32.12% of total allocation.

Mr R S Pandey union steel secretary, in his letter, said that "There is supply demand mismatch in respect of steel, which has caused shortage and the current price rise is one consequence of this shortage. We have to ensure steel industry utilizes its capacity to the fullest extent so that the demand could be made to the extent possible. So, we have to ensure that supply of gas to the sector is adequate."

The steel ministry wants the concerns to be reflected in gas utilization policy being finalized by the government. In the interim, an empowered group of ministers has finalized allocation for 2008-09 where steel has been clubbed with other sectors that are last in the priority list.

India produces 8.5 million tonnes of steel through natural gas based sponge iron technology. With lower gas availability the plants are running at 80 to 85% of installed capacities, causing a loss of 1 million tonnes of production.

L&T may form JV with Indian Railways

ET reported that Larsen & Toubro is looking at possibilities of forming JV companies with Indian Railways to manufacture equipment for the railways.

Mr JP Nayak board member & president operations at L&T said that "Indian Railways has 2 locomotive manufacturing units the Chittaranjan Locomotive Works and the Diesel Locomotive Works. There is a possibility of putting up another loco manufacturing unit in India and we will be interested in setting up a JV with the government."

Mr Nayak further said that Indian Railways has decided to set up new manufacturing capabilities through the public private partnership route and L&T is interested in floating a JV with them.

Meanwhile, L&T has decided to invest INR 25 billion during the current financial year to augment capacities at its growth centers. The money will be spent in augmenting facilities at all locations and for setting up a ship building yard in Tamil Nadu.

Indian government issues amendments to cement export restriction

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2004-2009, the central government hereby makes, with immediate effect, the following amendments to the Notifications No.4 (RE-2008)/2004-09 dated 11th April, 2008 read with Notification No.12 dated May 21st 2008.

As per serial number 72A, Chapter 25, under Schedule 2 of ITC (HS) Classification of Export and Import Items, cement export has been prohibited under following nature of restriction:

1. Not permitted to be exported
2. However, this restriction shall not apply to supplies of cement from domestic tariff area to units in SEZ or SEZ Developers or Co Developers for use within the SEZ only
3. The existing ban on export of cement and cement clinker shall not be applicable to export to Nepal
4. The existing ban on export of cement and cement clinkers shall not be applicable to export from Ports of Gujarat

Kirtania Port work to start in 3 months

The Telegraph reported that the construction of the proposed all weather port in coastal Balasore is likely to begin within 3 months. Chennai based Creative Port Development Private Limited would set up the INR 2187 crore deep water, mechanized port at Kirtania on the Subernarekha mouth in Balasore.

The first phase of the port with a handling capacity of 10 million tonnes per annum is expected to be commissioned by 2010 and ultimately its capacity would go up to 50 million tonnes per annum by the 10th year.

The port will not only handle Orissa cargo, but will also provide services to hinterland states. The port holds huge promise for neighboring landlocked states like Jharkhand, Chhattisgarh, Bihar, Bengal and the Northeast.

A senior officer of the commerce department said that the Chennai authority had submitted a detailed project report to the government and the construction would start soon after the land is handed over. The land acquisition process is in the advanced stages and is expected to be over within the next 3 months. But land acquisition for the 36 kilometer long Rupsa to Kirtania rail link is likely to take time.

Creative Port Development Private Limited signed a concession deal with the state on January 11th 2008, enabling the latter to share revenue at the rate of 5% from the first to fifth year, 8% from sixth to tenth year, 10% from the 11th to 15th year and 12% for the remaining 15. It would enjoy the concession for a period of 30 years, extendable by an additional period of 20 years.

In the first phase, Creative Port Development plans to build 4 berths and then add more till the capacity reaches 50 million tonnes per annum by the 10th year. The port would be developed on build, own, operate, share and transfer basis for 34 years and would include a dedicated rail cum road connection from NH 5 and a rail network at Jaleswar.

Meanwhile, Andhra Pradesh based Navyug Engineering Limited has evinced its interest in building a port at Astarang in Puri at an estimated cost of INR 6,000 crore. The proposed port is expected to be built in 3 phases with 2 coal berths, an iron and steel berth and another multi cargo berth. After the commissioning of the phase I, the port will have a cargo handling capacity ranging between 12.75 million tonnes and 23.25 million tonnes per annum. The final capacity would be around 47 million tonnes per annum.

Uttarakhand to set up cable car project

It is reported that Uttarakhand tourism department is planning to invite private players to set up a cable car between the hill resort of Mussoorie and Dehradun with an investment of INR 700 crore.

Uttarakhand Infrastructure Projects Company, a JV between the state government and IL&FS, has been asked to prepare the DPR for the cable project.

The proposed cable car will start from Purkul village at the foothills of Mussoorie where a five star hotel and an amusement park are also being proposed.

Raniganj CBM block may start production by 2008 end

BL reported that, having successfully completed exploratory drilling, Essar Exploration & Production Limited has begun developing the Raniganj East coal bed methane block in West Bengal for commercial production of gas. The block is expected to start production in end 2008-09.

A senior company official said that "We have spudded the first production well at Raniganj on May 30th 2008. In the first phase, we will drill 15 production wells in the 500 square kilometer block in 6 months. Gas is expected to start flowing by the end of this year."

Essar E&P owns 100% interest in the block and has roped in Grades Energy of the US as the drilling technology partner. While a realistic production potential of the block can be made only at a later date, early estimates suggest the block has 42 billion cubic meters gas reserve.

Essar controlled Raniganj East will be the second CBM producing field in gas starved West Bengal. Great Eastern Energy Corporation Limited has already earned the distinction of producing India’s first commercial CBM from the adjacent Raniganj block in 2007.

MSRDC announces plans for 17 skywalks

Maharashtra State Road Development Corporation has announced plans to construct 17 aesthetically structured skywalks at high pedestrian density areas around railway stations by June 2009. The skywalks, along with a subway at Chhatrapati Shivaji Terminus, will be constructed in 2 phases and are expected to cost around INR 125 crore.

Mr Anil Deshmukh minister for public works department said that "We did a pre feasibility study comparing skywalks and subways and we found that skywalks are better. They are economical, will have aesthetic value and are easy to construct. Moreover, they are weather protected unlike the existing foot over bridges."

Nine locations have been identified by the MSRDC for the construction of skywalks in the first phase of the project. The consultancy for phase one has already been awarded while the notice for appointment of consultant for the second phase has been issued.

In the phase I, skywalks will be constructed at Nallasopara, Vasai Road, Ambernath, Goregaon, Kandivali, Vile Parle, Masjid stations and CST to Churchgate. The skywalks will have a height of 5.5 meters and the piers and super structure will be made of steel, with poly carbonate roofing. They will have elevators, toilets and exits.

Mr Deshmukh said that "The project is being funded by the MMRDA. The skywalks when completed will be run on BOT basis. There will be security guards and we will not allow ferrywalas. Some shops will be constructed on skywalks with adequate width."

Essar Oil bids for offshore block in Australia

BS reported that Essar Oil Limited has bid for an offshore block in Australia and is in talks with foreign companies to explore for oil in Egypt and Yemen in a bid to expand sources of crude for its refinery. It is also looking at exploration blocks in Kurdistan in Iraq.

Mr Naresh Nayyar MD & CEO of Essar Oil Limited said that "We plan to take our refining capacity from 210,000 barrels of oil per day to 1 million barrels of oil per day in the next 3 years. With the expansion at Vadinar, our capacity will go up to 700,000 barrels of oil per day. The rest we plan to achieve through acquisition of assets overseas."

The current capacity of Essar's Vadinar refinery is 10.5 million tonnes per annum, which it plans to increase to 34 million tonnes per annum in the next 3 years. It started commercial production from the refinery at Vadinar, Gujarat in May 2008. It will raise a fresh debt of up to USD 5 billion to fund its USD 6 billion refinery capacity expansion program at Vadinar.

Mr Nayyar said that "We plan to raise a fresh debt of up to USD 5 billion to fund the expansion. The funds would be raised through external commercial borrowing and rupee loans." He added that promoters would contribute USD 2 billion in two phases. It has already received in principle commitment from lenders for up to USD 4.3 billion.

Essar Oil is also partnering an American company to bid in the seventh round of the New Exploration and Licensing Policy scheduled on June 30th 2008.

Essar oil is also in talks with Cairn India to buy crude. Cairn will start production from its oil field in Rajasthan in the second half of 2009. At present, Essar sources crude from West Asia and Venezuela and currently sells 65 per cent of its production in India. Post expansion, the ratio would be around 60:40.

Sujana Metal unveils INR 800 crore CAPEX plan

BL reported that Sujana Metal Products Limited will be investing INR 800 crore by June 2010 on expansion, modernization and backward integration projects.

Mr YS Chowdary chairman of Sujana Group said that "Out of the total investment, INR 370 crore will be used for 2 Greenfield projects, INR 100 crore for modernization of the existing units and the rest INR 330 crore will be utilized for working capital requirements."

Mr Chowdary said that Sujana Metal is currently in the process of setting up sponge iron and billet plants in Chennai and Hyderabad. He added that "The Chennai unit will have a capacity of 300,000 tonnes and will require an investment of INR 200 crore. The Hyderabad unit will have a capacity of 250,000 tonnes and we are looking at investing INR 170 crore."

He said that out of the total investment required, it would raise INR 470 crore through term loans while INR 130 crore from internal accruals and the balance INR 200 crore will be the promoter’s contribution. He added that "We are also looking for more acquisitions and also have applied for an iron ore mine in Karnataka. We expect to get the necessary clearances in the next 6 months."

The current production capacity of Sujana Metal is 728,000 tonnes per annum which has been enhanced from 290,000 tonnes in 2007. It has manufacturing facilities located in Hyderabad, Visakhapatnam and Chennai.

For the current financial year (July 2007 to June 2008), Sujana Metal has targeted a turnover of INR 1,500 crore and a profit after tax of INR 39 crore. By the end of 2010 fiscal, it has targeted a sale of INR 3,100 crore with a profit of INR 300 crore.

Indian government lifts cement export ban from Gujarat

It is reported that Indian commerce ministry has lifted the ban on exports of cement and cement clinkers from the Gujarat ports.

The decision will favor cement manufacturers in Gujarat including Gujarat Ambuja, Binani Industries, Ultratech, Sanghi Cement and Gujarat Siddhee. The private port operators in Gujarat at Mundhra and Pipavav will also be happy with the decision.

The commerce ministry said that during the monsoon months of June and July, very few people construct houses and the demand will come down and so the decision will help to keep the market going.

The ban on cement exports was imposed on April 11th 2008 with a view to improve the supplies and curb the prices in the months of April, May and June, when the pre monsoon construction activity peaks.

The decision looks quite discriminatory and deserves better explanation from the government.

Shortage of skilled workers threatens Indian economy

Planning Commission said that an acute shortage of skilled workers is posing a major threat to the Indian economy. It estimates that only 20% of the 12.8 million entering the work force annually get some formal training.

Planning Commission added that "In an economy growing at the rate of over 9%” skill development poses major challenges. At the same time, it opens up unprecedented doors of opportunity if the process of skill enhancement is carried out in an integrated manner."

Mr Montek Singh Ahluwalia deputy chairman of Planning Commission said that "Time is just running out. The task of skill development must be taken seriously." He added that public private partnership is needed to meet the requirement of skilled workers.

Planning Commission has estimated that the ageing economy phenomenon would globally create a skilled manpower shortage of about 46 million by 2020. It added that "If India can get its skill development act right, it will have a skilled manpower surplus of around 47 million. Skilled workers not only mean enhanced output but also increase their employability manifold. They can go overseas looking for jobs, as all of them may not get one in the country. Or they can be self employed."

Meanwhile, Indian government had approved the setting up of a National Skill Development Corporation on May 15th 2008 to cater to the needs of skilled personnel of the private sector in different fields. A total of INR 10 billion has been provided for the initiative. This will later go up to INR 150 billion.

National Skill Development Corporation, created at the recommendation of the Planning Commission, will put special emphasis on nearly 2 dozen high growth, high employment sectors like automobile, heath care services, banking, organized retail, insurance, construction, pharmaceuticals, food processing, textile, media, entertainment and tourism.

Nagarjuna Construction Q4 sale up by 45% YoY

Nagarjuna Construction Company has posted net sales of INR 1,254.07 crore for the January to March 2008 quarter up by 44.9% YoY as against INR 867.88 crore in January to March 2007 quarter.

Mr YD Murthy VP finance of Nagarjuna Construction Company said that the profits were depressed due to the exorbitant rise in steel prices. He added that the there were orders worth INR 2000 crore in the oil and gas and the metals segment.

Mr Murthy said that "In the January to March 2008 quarter, we have done a turnover of INR 1,258 crore up by 41% YoY as compared to INR 895 crore in January to March 2007 quarter and we have booked a net profit of about INR 52.6 crore up by 6.9% YoY as compared to INR 49.19 crore. The profits were a bit depressed mainly because of the exorbitant increase in the steel prices in January 2008."

About oil &gas and metal sector, he said that "We started 3 new verticals in 2007 and power is the third, but we have cut it and bagged orders in oil and gas and metals, combining at around INR 2,000 crore, which is approximately about 18% to 19% of our order backlog and last year the order accretion has been very strong. We have fresh orders of about INR 7,400 crore and the order book of the company as of March 31st 2008 is at around INR 11,380 crore."

Adhunik Group plans MEGA iron ore pallet plant in Jharkhand

PTI reported that Neepaz Infrastructure & Developers Limited of Adhunik Group has applied to the Jharkhand government for a MoU for setting up a 16 million tonnes pellet plant to meet the raw material requirement of steel producers in and around the state.

Mr Chandra Bhusan Sharma spokesman of Adhunik Group said that it has proposed to also develop a 2500 acre industrial park at Padampur in West Singhbhum district, which has major iron ore mines.

Mr Sharma said that the application for the MoU was made recently. He added that Jharkhand was deemed by the company as an ideal location as the project, estimated to cost INR 5,850 crore, required significant quantities of iron ore fines and would serve the growing raw material requirement of steel mills in the state.

About the proposed industrial park, Mr Sharma said that Adhunik Group would develop the land and provide it to players interested in setting up units there. He added that power would be provided at a concessional rate for an arrangement of 25 years through group company which is setting up a 1000 MW thermal power plant in the state.

The other facilities of the proposed project are a beneficiation plant and a township. The industrial park if developed would attract huge investment in the state and generate direct and indirect employment for around 20,000 people.

SAIL to set up INR 300 crore steel plant in Pulwama

It is reported that Steel Authority of India Limited will open an INR 300 crore plant in Pulwama.

Mr Ram Vilas Paswan union minister for steel said that construction of the steel plant will begin as soon as SAIL bags a no objection certificate from the pollution control board of the J&K state government. He said that "We are waiting for a no objection certificate from the PCB. As soon as we receive it, we will lay the foundation stone for the project.''

Mr Paswan said that the plant, set up at a cost of INR 300 crore, would open a lot of direct and indirect job opportunities for local youth. He added that "We began a railway project from Qazigund to Baramulla in 1996 with the aim of providing employment to locals. I am keen to open the steel plant for the same reason.''

He further added that Kashmir needed special government focus owing to its lack of train connectivity, industry and employment opportunities. He said "There are geographical challenges to be overcome but there will be a way.''

CSR initiatives of SAIL SSP highlighted

BL reported that corporate social responsibility initiatives taken up by Steel Authority of India’s Salem Steel Plant was highlighted in a meeting organized by National Institute of Personnel management, Salem Chapter, in association with the Vysya Institute of Management Studies in Jairam College of Arts & Science.

Mr Prabhakara Rao deputy GM of SSP explained various concepts such as the triple bottom line people, planet and profit and the difference between shareholder and stakeholder.

The SSP had implemented a number of schemes as a part of its CSR initiatives and was developing Thirumalaigiri village as Model Steel Village. Human Resource officials and representatives from various industries attended the meeting.

Midhani unveils INR 100 crore CAPEX plan

BL reported that Midhani has firmed up plans to invest a further INR 100 crore to expand its facilities and to meet growing supply orders. With an order book of over INR 750 crore, Midhani is upbeat about the opportunities from the strategic sectors like space, defense and nuclear.

Mr M Narayana Rao CMD of Midhani said that it has decided to establish a new electro slag refining facility and a forge press with a combined investment of nearly INR 100 crore. This would be in addition to the INR 160 crore expansion plan, which is under way to augment the company’s existing facilities. He added that it also wants to set up a new rolling mill, which costs about INR 60 crore, to boost its infrastructure and execute orders faster.

Mr Rao said that "We are also inclined to seek support from the ministry as well as financial institutes, if necessary." He added that the department of space, atomic energy and other customers have also supported in funding. Midhani’s orders comprise of defense supplies with 48%, space with 29%, power with 10%, commercial with 7% and nuclear with 6%.

He further added that the large projects taken up by the defense ministry, launch and development initiatives and the nuclear power expansion program of the department of atomic energy, have fuelled big orders up to 2012 already.

RINL introduces reverse e auction for transport contracts

BL reported that Rashtriya Ispat Nigam Limited has introduced reverse e auction for finalization of road transport contracts. The arrangement was earlier in force for the dispatch of scrap and now it includes dispatch of finished goods also.

Earlier, the auction was conducted once in a year and now it is conducted every two months, to take into account various elements in fluctuating road transportation costs.

The bulk of Vizag steel plant’s output of finished steel is transported by road, a part of it directly to consumers and the remaining to various stockyards in different parts of India. There were occasions in the past when coastal movement of finished products did take place, mostly on an experimental basis. In the absence of non availability of rakes in sufficient numbers, the coastal option will be exercised vigorously once the Gangavaram port is commissioned. RINL will be the major user of the port.

NLC CMD Mr S Jayaraman retires

Neyveli Lignite Corporation Limited has informed BSE that Mr S Jayaraman has relinquished as its CMD on May 31st 2008 on attaining the age of superannuation.

JSW Steel - Change in Directorate

JSW Steel Limited has informed BSE that UTI Asset Management Company Private Limited has, vide its letter dated May 15th 2008, withdrawn the nomination of Mr S Jambunathan as its nominee director on the board of the company with effect from May 15th 2008.

HC orders amalgamation of Usha International

Usha International Limited has informed BSE that the High Court vide its order dated May 26th 2008 has ordered the amalgamation of the company and Shriram Fuel Injection Industries Limited with the Jay Engineering Works Limited.

PSL receives USD 418 million order from Florida Gas

PSL Limited announced that Florida Gas Transmission Company has released an order on both PSL North America LLC and PSL Limited for 543 miles of pipes and associated coating, for value of USD 418 million.

Nagarjuna Construction bags INR 250 crore contracts

It is reported that Hyderabad based Nagarjuna Construction has received 4 orders aggregating INR 250 crore. The details of the order are as follows

1. INR 88.60 crore contract for construction of the office complex at Delhi, to be completed in two years
2. INR 65.70 crore contract for construction of the weight lifting auditorium at Delhi, to be completed within 15 months
3. INR 68.70 crore contract to develop and construct water supply system at Dhanbad in Jharkhand
4. INR 26.9 crore contract from Brahmani River Pellets to construct pelletization plant within 10 months

Sujana Metal to invest INR 1,600 crore by 2010

Hyderabad based Sujana Metal Products Limited has announced its plan to invest INR 1,600 crore for acquisition of 3 steel units and establishment of a sponge iron and billet plant.

Mr VSR Murthy director of Sujana Group said that Sujana Metal has planned to invest INR 800 crore in the first phase by the end of 2008. A similar amount would be invested in the second phase expansion by the end of 2010 that includes establishment of a sponge iron unit and a billet casting plant besides expansion and modernization of the existing units. The funds would be raised through a mix of promoters’ contribution, debt and internal accruals.

Sujana Metal had already acquired 3 units namely Saritha Steels, Glade Steels and Sree Ganga Steels, located at Visakhapatnam, Hyderabad and Chennai, respectively. It would also complete the formalities for acquiring 2 more units in Hyderabad and Chennai within a couple of months.

Steel sector calls for speeding up rail and road projects in Orissa

BL reported that, at a meeting called recently by the union steel secretary in Bhubaneswar, representatives of the steel industry, covering both private and public sector plants, emphasized the need for early implementation of certain rail, road and port projects, keeping in view the requirement of the new steel plants due to come up in the state in next few years.

The railway projects identified for immediate implementation include doubling of the 180 kilometers long Daitari Banspani line, 170 kilometers long Sambalpur Talcher line and 450 kilometers long Kottavalasa Kirandul line, which covers regions in Orissa, Andhra Pradesh and Chhattisgarh. The 62 kilometers long rail link between Dhamra port and Bhadrak being implemented by Dhamra Port Company also came up for a review.

Among the road projects discussed were 4 laning of National Highway 215 between Barbil and Keonjhar, NH 42 between Cuttack and Sambalpur and NH 400 between Jharsuguda and Raigad. The work on the 4 laning of NH 5A between Chandikhol and Paradip is nearing completion.

Indian Railways revealed that the decision to undertake survey of all the 3 doubling projects, as demanded by the steel industry, has been made. Besides, several other projects, under both East Coast Railway and South Eastern Railway, are in various stages of implementation and these include construction of Haridaspur Paradip line, a third line between Jakhapura and Haridaspur, doubling of Cuttack Barang line, construction of a third line between Barang and Khurda Road, doubling of Barang Rajatgarh line, construction of a second railway line over Mahanadi river, a third line between Goelkhera Monohorpur and a second line between Jaruli and Dongaposi. Besides, keeping in view the commissioning of Gangavaram port in Andhra Pradesh shortly, a third line is being constructed between Kottavalasa and Vizianagaram and a fourth line between Kottavalasa and Simhachalam.

It may be noted that Orissa government has signed as many as49 MoUs for setting up steel plants and sponge iron units in the state, with a total capacity of more than 75 million tonnes. About 28 of them, totaling 3.8 million tonnes of steel making capacity and 5 million tonnes of sponge iron capacity, are already at various stages of production. The indication is that by 2012, about 40 million tonnes of capacity will be created in the state.

Secondary rebar makers hike prices by INR 3,000 per tonne

BL reported that prices of semi finished steel such as ingots and billets have increased in the range of INR 2,500 to INR 3,000 a tonne in Indian market.

Market sources revealed that overall, in major north Indian wholesale markets like Mandi Govindgarh, Bhiwandi and Ghaziabad, billet prices have gone up by around INR 2,500 a tonne, ingot by INR 2,000 to INR 3,000 a tonne and unbranded TMT bar prices by INR 1,500 to INR 2,000 a tonne.

Branded TMT bar manufacturer Kamdhenu Ispat has increased prices by INR 3,400 a tonne taking the present selling price to around INR 44,000 a tonne, sources said. Simultaneously Rathi Ispat has also raised prices by approximately INR 2,000 a tonne.

Industry officials attribute the increase to rise in international prices which have gone up significantly across all products and because of depreciating rupee value against dollar.

The report cited steelmakers as saying that "International prices of steel melting scrap have increase by around USD 110 a tonne from USD 630 a tonne last week to USD 740 a tonne on Monday. It is the main raw materials for ingot makers, mostly using the electric furnace route. Added to that is the depreciation in rupee leading the companies to raise prices of semi finished steel products like ingots."

JSPL to set up INR 5000 crore thermal power plant Orissa

It is reported that Jindal Steel & Power Limited is planning to build an INR 5,000 crore thermal power plant in Orissa.

Mr Sushil Maroo whole time director of JSPL said that it plans to build a 1,080 MW coal fired captive power plant to fuel its 6 million tonnes steel plant in Orissa. He added that about 70% to 80% equity worth over INR 4,000 crore will be raised through debt and the company has already approached a consortium of banks. The project is slated to take off simultaneously with the first phase of the INR 13,500 crore steel plant by February 2011.

Mr Maroo said that "Now, we have 330 MW of capacity up and running for our steel plants. In the near future, we will set up 550 MW for the upcoming steel plant in Chhattisgarh and 1080 MW in Orissa for captive usage."

He added that “The power plant will comprise eight 135 MW units. The first unit is slated for commissioning by 2009. Orders for the 135 MW units have been placed with Shanghai Electric Company of China. The project capacity may be raised to as much as 1,410 MW, with six 135 MW and two 300 MW units.”

Official sources said that land acquisition is on and the ministry of environment has cleared the power project. A few weeks ago, JSPL had written to the ministry of coal to allocate long term coal linkages for 4 million tonnes of steel. The ministry has already given coal linkages for 2 million tonnes of steel capacity by allocating coal blocks in Utkal.

As announced earlier, JSPL is also setting up a 6 million tonnes per annum steel plant and captive power plant in Patratu in the Hazaribagh district of Jharkhand. It also has plans to set up 2 power plants with a total production capacity of over 2,500 MW in Jharkhand.

Alstom Power may ink USD 500 million JV with Bharat Forge

BL reported that Alstom is planning a major expansion of its manufacturing activities in India.

As per report, Alstom’s Switzerland based arm Alstom Power is likely to enter into a USD 500 million JV with Bharat Forge to produce high value, super critical turbine generator sets for thermal and nuclear power plants. The two companies are expected to sign an agreement soon to set up a manufacturing facility with an estimated capacity of 5,000 MW per annum.

The proposed JV is also expected to enter into a MoU with BHEL for manufacturing super critical boilers. The JV is looking for 1,000 acres of land for the production facility and is in talks with the state governments of Maharashtra, Gujarat and Tamil Nadu. After finalization of site, the proposed JV plans to roll out power equipment within 3 years.

While, the JV company is expected to manufacture equipment for thermal power plants initially, Alstom could bring in its expertise in nuclear equipment as and when the segment opens up.

TATA Motors completes Jaguar and Land Rover acquisition

TATA Motors recently announced that it has completed its acquisition of Jaguar and Land Rover from ailing US carmaker Ford for USD 2.3 billion in an all cash transaction.

In a statement to BSE, TATA Motors said that the deal includes the ownership of Jaguar and Land Rover, all necessary intellectual property rights, manufacturing plants and two Britain based advanced designing centers.

Mr Ratan Tata chairman of TATA Motors said that "Jaguar and Land Rover are 2 iconic brands with worldwide growth prospects. These brands will retain their distinctive identities. We plan to work closely to support the Jaguar Land Rover team in building the success and preeminence of the two brands. Jaguar and Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before."

TATA said in the statement that Mr David Smith acting CEO of Jaguar and Land Rover will be the new CEO.

Mr Smith said that "We are very pleased with the association with TATA Motors and we look forward to a sustained bright future for the company and its stakeholders."

CSC imports bonus scrap at USD 788 from USA

It is reported that Taiwan’s China Steel Corp has bought bonus scrap steel with the purchasing price of USD 788 per tonne CIF from Schnitzer Steel Industries Inc. The price of heavy melting scrap was USD 768 per ton CIF.

The price of bonus scrap was USD 10 per tonne higher than the price of heavy melting scrap, but this deal has USD 20 per tonne price differences. This reflects the excellent scrap steel shortage in American market.

South Korean shipyards gain on accident in China

Bloomberg reported that Samsung Heavy Industries Co, the world's second biggest shipbuilder, paced gains in South Korean shipyards in Seoul on expectations they will attract orders after an accident at a Chinese yard last week halted production.

Hudong Zhonghua Shipbuilding Co, a unit of China's biggest shipyard, said on May 30 that two 600 tonne cranes collapsed, killing three people and injuring two. The company hasn't given details on lost production time or costs. The cranes are used to move blocks or steel structures that make the hulls of vessels to docks. They are also used to load heavy parts into ships under construction.

Mr Lee Jae Kyu an analyst at Mirae Asset Securities Co in Seoul said that “It will probably take six months to a year to get those cranes replaced and it will be inevitable that vessel deliveries will be delayed. Delays will hurt the creditability of the Chinese yards and could prompt ship owners to look to rivals in Korea.”

According to London based Clarkson Plc, Hudong Zhonghua is the world's 11th largest shipyard with a backlog at the end of April of 2.42 million compensated gross tonnes.

MSC hopes to resume small scale operations at Koba

ITRI reported that Malaysia Smelting Corporation hopes to resume small scale tin mining operations at its 75% owned PT Koba Tin unit in Indonesia as soon as possible.

According to the Bernama news agency the planned resumption would contribute about 30% of total production of the operation on Bangka Island. Koba has been prohibited from using sub contractors for small scale mining in its contract of work area since late January, when two companies supplying it were accused of illegal mining in a protected forest area.

Mr Datuk Mohd Ajib Anuar CEO of MSC PT KOba said that "We are still talking to the government. We hope it will be resolved soon.”

A district court in Bangka began hearing the case against the sub contractors on May 22nd 2008. The prosecutor in the case against two directors of PT Kurnia Bumi Jaya Mandiri alleged that they had deliberately misled Koba about the origin of some of the ore supplied to it.

(Sourced from ITRI.co.uk)

San Miguel eyes steel venture

It is reported that San Miguel Corp is looking at venturing into steel production through its proposed mining ventures.

Mr Ramon Ang vice chairman and president of San Miguel said the company will explore prospects for iron ore, nickel, chromite and coking coal, the four minerals necessary to produce stainless steel or high carbon steel.

Mr Eduardo Cojuangco Jr San Miguel chairman on the sidelines of the stockholders' meeting of Ginebra San Miguel Inc said that "These are the minerals we are exploring and studying.”

Mr Ang said that "The opportunity in mining is very good if there are good deposits. At the moment, San Miguel is in the process of evaluating offers for these minerals.”

Mr Ang added that he was also optimistic that the company would finalize a mining venture this year.

San Miguel earlier disclosed plans to invest USD 750 million for its foray into new businesses in power, mining, infrastructure and utilities.

Japanese steel exports in April up by 8.6% YoY

According to Japan Iron and Steel Federation, Japan's steel exports increased 8.6% YoY in April 2008. On the other hand, total imports fell by 2% YoY.

The federation said that steel exports to china grew by 12.1% and that to Korea was up 2.4%. Meanwhile, shipments to the US declined 24.2%.

Long product prices up in Taiwan

It is reported that Taiwan’s long product prices soared as a whole last week and continues its upward trend.

The price of steel rebar has been rose by TWD 700 per tonne last week, as the new price is between TWD 31,200 per tonne and TWD 31,700 per tonne.

China Steel Corp announced that its new price of third quarter. Price of steel bar and wire rod has increased by TWD 4,830 per tonne. Price of CHQ wire has reached TWD 29,750 to TWD 30,000 per tonne.

Besides, Feng Hsin Iron and Steel raised its section steel prices of angle bar, channel steel, flat bar and square bar by TWD 1,000 per tonne. Current selling price is at TWD 32,000 to TWD 32,300 per tonne.

(Sourced from YIEH.com)

Marmon Keystone to buy Summo Steel Ontario

Marmon Keystone Canada Inc announced that it has signed an Asset Purchase Agreement with Summo Steel Corp on May 30th to acquire the distribution arm of Summo Steel Corp of Ontario.

According to Mr David H Rombough, president & GM of Marmon Keystone Canada, the Asset Purchase Agreement is scheduled to close in June 2008.

Marmon Keystone Canada Inc an affiliate of Marmon Keystone Corporation based at Butler in Pennsylvania is a major distributor of tubular products, with more than 8,300 sizes and grades of carbon, stainless and aluminum tubular and bar products. Service centers and sales offices are located throughout Canada with corporate offices in Burlington, Ontario.

Rautaruukki sale of Carl Froh GmbH gets German nod

The German competition authorities have approved the transaction agreed on April 30th 2008, whereby Rautaruukki Corporation sells its precision tube and automotive component processing unit, Carl Froh GmbH to the German company Arques Industries AG. The transaction closes on June 2nd 2008.

The transaction supports Ruukki’s strategy, whereby Ruukki Metals’ focus in the Central and Southern European markets is on special products.

Living Steel Announces finalists for 3rd International Architecture Competition

Living Steel today divulged the 12 finalist architect teams who will submit concepts for sustainable steel housing at Cherepovets in Russia. Selected from 246 completed submissions from architects in 52 countries expressing interest to compete, the finalist teams are:

The 3rd International Architecture Competition originally was to include ten teams; however the Selection Committee unanimously decided to increase the number of finalist teams.

According to the Competition Brief, the finalists are charged with developing three to five housing styles of approximately 120 m2 each based on a single construction technology. The extreme challenge in this competition is to design the homes to be highly energy efficient and to minimize climate change emissions through the life cycle of the buildings, within a USD 120,000 construction budget. The Brief suggests energy consumption of 100 kWh/a per meter square this in Cherepovets where temperatures swing from summer highs of +34o C to winter lows of -49 o C. The building site will eventually be the location of a community of up to 500 homes developed by Living Steel member steel company SeverStal for its employees.

The twelve short listed teams were given the project brief and one month to put together their ideas for efficient, sustainable housing that fits the location specifications. These teams will travel to Helsinki, Finland, where they will present their concepts to the competition's Jury on June 26th to 27th 2008.

Mr Scott Chubbs director of Living Steel Program said that "These finalist architects represent a wealth of creative minds in sustainable design that expressed interest in this competition. Given the quality of the submissions and the experiences each team has to offer, it was decided to expand the competition by two teams."

EU sets July 3 deadline for Eramet acquisition of Tinfos

The European Commission said the deadline for its inquiry into French industrial group Eramet's proposed acquisition of Norwegian metal alloys producer Tinfos AS is set for July 3rd 2008.

Increase in domestic steel prices by CSC for Q3 of 2008

(Amount in TWD per tonne)

South Korean car sales in H2 expected to rise by 6.8%

It is reported that domestic sales by Korean carmakers are expected to increase nearly 7% in the H2 of 2008 despite unfavorable conditions such as sky high oil prices.

The Korea Automotive Research Institute predicted in a report said that total sales by industry leader Hyundai Motor Co and four other players are likely to climb 6.8% to 689,000 units in the July to December period.

The Institute said that the solid second half gain will be powered by the rollout of various new models and strong demand for new cars from motorists who own old vehicles.

According to the report, sales of mini cars and subcompact cars are likely to slow down in the second half, while those of intermediate cars are predicted to edge up. It said that sales of large cars are projected to remain robust, but their growth momentum will probably taper off.

The Institute said that the exports of domestically made cars are likely to reach 1.54 million units in the second half compared with 1.46 million units in the first six months of this year. Soaring international oil prices have been a drag on the domestic automakers as motorists are trying to tighten their belts.

Record ship orders help South Korea to post USD 1 billion trade surplus in May

According to a South Korean government report, a record surge in exports of ships in May helped South Korea post its first monthly trade surplus in six months.

The Ministry of Knowledge Economy said that exports rose 27.2% YoY to USD 39.49 billion last month, while imports jumped by 28.8% to USD 38.45 billion for a surplus of USD 1.04 billion. Last month marked the eighth consecutive month that exports grew by double digits, while the average daily export volume climbed 32.9% YoY to USD 1.76 billion.

It said last month's ship exports shot up 56% YoY to reach an unprecedented USD 4.90 billion. The ministry said that exports of a USD 1.3 billion floating production storage and offloading vessel to Nigeria and seven liquid natural gas carriers played a key role in bolstering exports. Each LNG carrier costs over USD 100 million. In the first five months of this year, ship exports hit USD 15.96 billion. In 2007, total ship exports reached USD 27.77 billion.

The provisional report also said exports of petroleum products rose 118% while those of mobile communication equipment, steel and general machinery all gained more than 20% from the same one-month period of the previous year.

The report added that exports to member states of the Association of Southeast Asian Nations and Central and South America jumped by 45.2% and 44.3% respectively. Shipments to China and Japan respectively climbed 32.6% and 17.4% while those to the United States were down 5.4%.

Eskom inks transformer supply contract with Powertech

It is reported that transformer manufacturer Powertech Transformers has signed a seven year ZAR 1.37 billion contract with Eskom for the supply of transformers in a range of sizes.

Mr Eskom GM of procurement and supply chain management of Eskom said that it was critical for Eskom to look at long term relationships with its suppliers and that a further extension of three years could be added to the contract, depending on whether Powertech Transformers complied with its minimum requirements of constant improvement.

He added that Eskom would, on a quarterly basis look at whether Powertech Transformers was complying with the minimum key performance indicators of quality of supply and the continuous delivery of transformers.

Mr Leon Viljoen CEO of Powertech Transformers said that "We are fully committed to ensuring the successful execution of this contract and for me that means delivering high quality transformers on time every time.”

He added that the company was continuously upgrading its manufacturing facilities and was training its staff on a regular basis, which ensured that it was improving its abilities on a continuous basis.

Outotec sulfuric acid technology to Venezuela

Outotec has agreed with Petroquímica de Venezuela SA for the delivery of engineering and imported equipment for a new sulfuric acid plant to be built at Morón in Venezuela. The value of the contract is approximately EUR 90 million.

Outotec has provided the concept and basic engineering for Pequiven for the same project in 2007. In this second phase Outotec's scope of delivery covers engineering and supply of imported equipment.

The plant is designed to produce 3,000 tonnes per day of sulfuric acid for Pequiven's phosphate based fertilizer production. The start up of the plant is scheduled to begin in the first quarter of 2010.

Mr Tapani Järvinen president & CEO of Outotec said that "This contract demonstrates our capability to apply our technologies beyond the mining and metallurgical industry in other process industries, such as fertilizer industry. We have been a major designer and supplier of sulfuric acid plants for more than 80 years, with a track record of over 600 plants installed worldwide. This new contract will further strengthen our market leadership.”

ArcelorMittal to raise SA steel prices by 6%

Bloomberg reported that ArcelorMittal South Africa Ltd plans to charge customers as much as 6% more next month for steel as global demand and world prices are increasing.

Mr Tami Didiza a spokesman for ArcelorMittal SA said that prices for both long and flat steel products will climb by ZAR 450 (USD 58.38) a tonne or 4% to 6%. He added that the increase is valid for all steel deliveries confirmed from July 1st 2008.

Mr Didiza said that “Steel prices internationally are still firming up. With this increase, we are at least on a par with the Black Sea market and below Europe and the US.''

Hyundai Heavy wins USD 824 million ship order from Europe

Reuters reported that Hyundai Heavy Industries Co has secured a KR 852.0 billion (USD 824.3 million) order to build nine oil tankers for a European company.

Hyundai in a filing to the Korea Exchange said that it would deliver the ships by the end of March 2012, without identifying the European shipper.

Vehicle Mercury Switch Recovery program launched in Canada

The Canadian Steel Producers Association and Canadian Vehicle Manufacturers’ Association are supporting and funding a national program to remove mercury containing switches from end of life scrapped vehicles before they are recycled into new steel.

This national program builds on the successful Switch Out initiative delivered by the Clean Air Foundation, a national not for profit organization. With this new funding, CAF will expand Switch Out to all provinces and territories in Canada, providing the infrastructure for the collection, removal and management of the mercury containing switches as well as practical educational materials to recyclers across the country.

Mr Mark Nantais president of the Canadian Vehicle Manufacturers’ Association said that “This program will ensure that the mercury containing switches in end of life vehicles are properly removed and managed so mercury is captured and prevented from entering the environment. As of January 1st 2003 the use of mercury switches in new automobiles has been voluntarily and completely phased out.”

Mr Ron Watkins president of the Canadian Steel Producers Association added that “Removing mercury containing switches from end of life vehicles represents the most effective way to reduce mercury releases to the environment. Canada’s steel producers are committed to the continued success of the Switch Out program, and are pleased to be working with the auto industry and the Clean Air Foundation to expand it into a truly national program.”

The program partnership is supported by Canadian automotive recyclers and dismantlers and their respective associations the Automotive Recyclers of Canada and the Canadian Association of Recycling Industries. The collaborative effort among the steel, auto and recycling/dismantling industries is unprecedented and is essential to the success of the program, which will assist the steel and auto industries to meet the new federal pollution prevention requirements regarding mercury containing switches.

Worthington IBS acquires Sharon Stairs

Worthington Industries announced that its subsidiary, Worthington Integrated Building Systems has acquired the assets of Sharon Stairs, a designer and manufacturer of steel egress stair systems for the commercial construction markets.

Sharon, previously owned by Willow Grove has approximately 180 employees. The company has experienced significant growth over the last three years with 2007 sales of USD 32 million.

Mr Ralph Roberts president of Worthington IBS said that “This is a great fit for Worthington as we look to bring a package of solutions to the architectural community through our framing system, Dietrich building products and now Sharon Stairs. Sharon Stairs has a national brand, manufacturing know how, a strong management team and an experienced sales network, all of which fits nicely within our Worthington culture.”

Worthington Integrated Building Systems is part of Worthington Industries, integrating best in class products and methodologies to deliver superior turnkey framing solutions for both the residential and the mid rise construction markets. Worthington IBS has two facilities and approximately 500 employees.

Rio and Maaden aluminum JV cost escalates

Saudi Arabian Mining Company has announced that its aluminum venture with Rio Tinto will cost USD 530 million more than expected because of higher prices. Maaden had said in April 2007 that the project would cost SAR 26.25 billion.

Maaden said that "Finalization of contracts for the construction of the power plant has been delayed. However, this will not cause any delays to the overall schedule for the project."

According to Maaden's April 2007 statement, the project involves building a 1,400 MW oil fired plant, an alumina refinery with capacity of 1.4 million tonnes per year and an aluminum smelter with capacity of 720,000 per tonnes year. It added that "These increased production capacities, together with updated capital costs estimate, will lead to an upward revision of project costs."

Across the Gulf, companies have been raising their forecasts for the cost of projects, leading to delays and, in some case, cancellations. The region is booming on record oil prices, fuelling demand for contractors, labor and materials, compounded by higher global prices for goods such as steel.

Maaden is looking to raise SAR 9.25 billion in July 2008 in the Middle East's biggest mining IPO.

Omani construction firms feel the pinch of cost escalation

Oman Daily reported that the soaring prices of building materials are hitting construction companies hard, with small companies sure to incur losses. As pre report, steel prices have almost doubled in the last one year from OMR 260 per tonne to almost OMR 550 a tonne, eating into a major portion of the margin available for construction firms.

Mr Premkumar deputy GM of Al Hajiry Trading said that "We are facing an additional cost of OMR 135,000 in one of our projects due to rising steel price. We are writing to our clients to consider a revision in construction cost." He added that this is mainly due to the difference in steel and other building material prices at the time of bidding for a project and the time of implementation.

Mr Anjan Mahapatro business development manager of Larsen & Toubro said that the cost escalation is a worldwide phenomenon, which is not just confined to Oman and there is a gap in demand and supply of cement, which is also a constraint faced by construction firms. He said “This is driven by both cost push and demand pull inflation. It is affecting construction firms. The government has taken several steps to resolve this problem with the help of cement producers and Oman Chamber of Commerce and Industry. We had to wait for 19 days for completing concrete work in one of our building projects due to the shortage of cement."

An official at another construction firm based in Salalah said that his company would have to spend an additional OMR 30,000 to OMR 35,000 for a ministry of housing project to build 15 villas in Dhofar region. The project, worth OMR 700,000, was awarded by end of 2006 and work order was placed in March 2008.

Egyptian Iron denies receiving takeover offers again

Arab Finance reported that Egyptian Iron & Steel denied for the second time receiving offers for taking over a part of its stock.

A statement from Egyptian Iron & Steel to CASE said that there are no takeover offers for its shares and the company does not have stocks that are up for sale. This comes after the company's share kept on going up in large percentages to close at EGP 69 per share.

Egyptian Iron & Steel's financial statements showed it making a net profit of EGP 777.5 million in the period between July 1st 2007 and March 31st 2008 up by 288.7 % YoY as compared against a net profit of EGP 236.533,000 for July 1st 2006 and March 31st 2007.

Steel prices continue surging in Egypt

Egyptian daily Star reported that steel costs continued to fluctuate over the weekend, with reports of prices ranging from EGP 6,000 to EGP 8,000 per tonne, despite rules passed by the ministry of trade & industry last week that intended to keep prices much lower.

Ms Menna El Hasnawy a steel analyst at HC Brokerage said that she suspected some distributors are hoarding to keep prices high. She added that some of the price discrepancy may be due to the divergence between ex-factory prices set by different companies, some of whom control more steps of the supply chain than others a tonne of steel from Beshay Steel sells for EGP 6,300, a tonne from Suez Steel for EGP 6,250 and a tonne from Al Ezz Steel Rebars for EGP 5,700.

Though Al Ezz and others have been publishing their ex factory prices since the start of this year, the mandated reporting is part of a new set of guidelines passed by the trade ministry last week that allow producers to quote price caps to their resellers and encourage them to dissolve ties with wholesalers and retailers who do not conform to them.

Goaded by consumer grumbling, minister of trade & industry Mr Rachid Mohamed Rachid issued a statement this week assuring buyers that there are no special taxes or tariffs now imposed on imported steel. Officials expect steel producers to announce new ex-factory prices within the week, in accordance with government rules that require factories to report prices at the start of each month so the ministry can monitor price gouging.

Turkey steel exports in May reach USD 1.96 billion

Today's Zaman reported that Turkey’s exports in May 2008 increased by 34.48% reaching USD 12.3 billion.

The exports in January to May 2008 period climbed by 36.36% YoY to USD 55.07 billion. Exports for the last 12 months reached USD 120.65 billion in an increase of 28.4% YoY.

The sector with the highest export volume in May 2008 was motor vehicles and automotive spare parts with USD 2.5 billion, followed by steel exports with USD 1.96 billion and chemical products with USD 1.5 billion.

Industrial export, which makes up an 89.05% share of total exports, increased by 34.6% YoY in May 2008, hitting USD 10.93 billion. Five month industrial exports reached USD 48.5 billion and industrial exports exceeded USD 105 billion.

Qatar set for talks with French power firms

MEED reported that Qatar Petroleum International will discuss with France's EDF and Gaz de France possible joint investment in Europe's power sector. As per report, Qatar Petroleum will hold talks with the two French firms in the first week of June 2008.

Mr Ibrahim al Ibrahim VC of Qatar Petroleum International said that it is considering investments in the power sector alongside the company's traditional focus on oil and gas.

It may be noted that Gaz de France signed a long term partnership agreement with Qatar Petroleum International and Qatari authorities in January 2008 to help it enhance its presence the world's top exporter of liquefied national gas.

Iran to build 7 refineries to boost output

Mehr News Agency reported that Iran is constructing 7 refineries in an effort to boost its crude and gas refining capacity by more than 1.5 million barrels per day.

Mr Aminollah Eskandari director of National Iranian Oil Refining & Distribution Company said that "The construction of 7 refineries has started with the investment of EUR 15 billion. About 1.56 million barrels will be added to the country's capacity to refine crude oil and gas derivatives." He added that all 7 refineries would be on stream by 2012.

Iran Turkey pipeline repaired

Turkey's gas and oil pipeline company Butash said that the gas pipeline between Iran and Turkey was repaired.

It may be noted that a blast in the Iran Turkey pipeline on May 26th 2008 disrupted gas supply to Turkey.

Saudi Arabia approves 2 refining ventures

Emirates Business 24-7 reported that Saudi Arabian government is assessing plans to almost double its refining capacity regardless of the sharp increase in investment requirements.

As per report, the Kingdom has already approved of 2 mega refining ventures with foreign partners in June 2008 despite a minimum increase of 60% in costs. The amount of capital investment required for the 2 plants was initially estimated at around USD 6 billion each and is now expected to have increased by at least 60% on rising cost structures.

Saudi Arabia's domestic refining capacity is estimated at around 2.1 million barrels per day, however it also controls more than 1 million barrels per day in joint refining ventures abroad.

The statement concluded that from roughly USD 33 billion in 1998, Saudi's oil revenues jumped to nearly USD 143 billion in 2005 and USD 165 billion in 2006 before swelling to a record USD 170 billion in 2007. In addition, the income is projected to surpass USD 200 billion in 2008.

OPEC to invest USD 160 billion to increase output

Bahrain Tribune reported that OPEC members will invest USD 160 billion in oil development projects in the next 3 years to increase their production capacity by 15% in response to growing demand.

The announcement by Mr Abdalla Salem el Badri secretary general of OPEC sought to put high oil prices at the top of the agenda for a summit in July 2008 of the Group of Eight most powerful nations.

Mr Badri said that "Even though we see no shortage of oil in the market, since the middle of 2007 we have seen a major disconnect between oil prices and market fundamentals. A number of factors have contributed to this, but primarily it is the massive role that speculators now play in the oil market." He added that OPEC countries would add 5 million barrels per day of extra crude production capacity by 2012.

OPEC pumped about 32 million barrels per day in April 2008, equivalent to 40% of world oil consumption and has about 2 million barrels per day of spare capacity.

Abu Dhabi to get AED 1 trillion worth investments in 5 years

Abu Dhabi Chamber of Commerce & Industry in its latest report on the emirates said that Abu Dhabi has attracted nearly AED 300 billion in cumulative investments over the past 5 years and the capital is projected to triple to more than AED 1 trillion in the next 5 years.

Abu Dhabi Chamber of Commerce & Industry said that the total value of projects to be carried out in the emirate could exceed AED 1.3 trillion in the next few years and more than half of them would be in the construction sector.

In a 50 page report on Abu Dhabi's economy, Abu Dhabi Chamber of Commerce & Industry said that the emirate's gross domestic product soared by at least 18% in 2007 and is projected to swell by more than 14% in 2008. The GDP of the UAE also surged by more than 16% in 2007 and the report forecast growth this year at more than 14%.

Between 2001 and 2007, cumulative investments in Abu Dhabi totaled nearly AED 300 billion, including about AED 55 billion in the oil and gas sector, AED 130 billion in construction and real estate, AED 56 billion in manufacturing, AED 30 billion in tourism and about AED 29 billion in water and electricity.

The report said such projects would give a strong boost to the country's economy, which is already galloping at double digit growth rates because of strong oil prices, high public spending and a sharp increase in private investments.

The figures showed both the oil and non oil sectors in Abu Dhabi and the whole UAE were recording high growth rates as the country is stepping up a drive to attract investment and diversify its economy away from volatile oil sales.

DP World completes Chennai Container Terminal acquisition

DP World recently announced that it has completed the full acquisition of the Chennai Container Terminal after buying the shares of Chennai Terminal Private Group's partners Chettinad Logistics and Jakari Group.

DP World's announcement of the buyout came amid reports that its subsidiary DP World Chennai has to pay compensation to Chennai Port for not achieving the minimum container throughput.

A statement from DP World said that a focus on expansion of its terminal business in Chennai combined with a strong growth trend in South Indian trade and the partners' desire to reinvest resources in their respective core businesses were the main drivers of its decision to acquire 100% ownership.

Mr Ganesh Raj senior VP & MD of the Indian Subcontinent region DP World and also chairman of Chennai Container Terminal said that the company remains committed to realizing its objective of expansion of the terminal in the near future.

Mr Ennarasu Karunesan CEO of Chennai Container Terminal said that the move for 100% ownership reflected the great commitment and belief by DP World in the terminal development in particular and to the employees of Chennai Container.

Weak dollar may keep oil prices high – OPEC

Mr Chakib Khelil president of OPEC said that oil prices may continue to rise because of the weak US dollar and market speculation. He added that "International markets need refined products not crude oil, of which there is enough in the market."

Mr Khelil said that OPEC will not review the market situation until it meets in Vienna on September 9th 2008.

He added that "OPEC does not have the control of the majority of production and we cannot do much for prices. We may see another devaluation of the dollar which will drive prices up again."

He further added that the market tightness exists more for refined oil products, such as gasoline and diesel, not crude oil.

Saudi Kayan secures USD 6 billion loan to finance Al Jubail project

Saudi Kayan Petrochemical Company recently announced that it had signed a USD 6 billion loan agreement with a group of banks to partly finance its complex in Al Jubail industrial zone. Kayan is 35% owned by SABIC.

Saudi Kayan said that ABN Amro, Bahrain's Arab Banking Corporation, France's BNP Paribas, HSBC Holdings and Samba Financial Group will lead manage the 15 year loan agreement.

Mr Mutlaq Al Morished CFO of SABIC said that the Kayan project will start commercial production in the fourth quarter of 2010.

Dubal to expand aluminum capacity to 2.5 million tonnes by 2015

Mr Abdulla JM Kalban CEO of Dubai Aluminium Company said that it will expand the output capacity to annual 2.5 million tonnes by 2015, which is 2.5 times of current volume. He added that it tries to become world top 5 positions through the expansion.

Meanwhile, Mr Walid A Al Attar GM sales of Dubai Aluminum Company said that it tries to increase the supply for Japanese market to 300,000 tonnes in 2010 from current 100,000 tonnes.

Bahrain ban of Bangladeshi labor to hit construction sector

Gulf Daily News reported that Bahrain will not renew the work permits of thousands of Bangladeshis, in a ban expected to heavily impact the nation’s construction industry. The decision not to renew work permits follows announcement from the interior ministry that permits would no longer be issued to Bangladeshis.

Mr Samir Nass chairman of Bahrain Chamber of Commerce & Industry said that small contracting companies’ dependant on Bangladeshi labor will be hit the hardest by the ban. He added that "There are many contractors who rely on the cheap labor from Bangladesh. We hope a mechanism is put in place where the ban would be done in a way that minimizes the impact on ongoing projects."

Meanwhile, Bangladesh Embassy head Mr Saif Al Islam said that the move had left him and his colleagues in shock and the embassy would appeal against it. He added that "For one person the government is punishing a whole nation, which is not acceptable to us. We will appeal to the government to reconsider this. We will ask them at least to delay implementing this restriction."

Mr Sheikh Rashid bin Abdulla Al Khalifa Bahraini interior minister has ordered authorities to stop issuing work permits to Bangladeshis, after the alleged brutal murder of a Bahraini national by a mechanic from Bangladesh.

Saudi Jizan oil refinery tender delayed for the third time

Al Watan reported that Saudi Arabia has for the third time delayed a tender for bids for a 200,000 barrel per day oil refinery in the southern province of Jizan.

The report quoted a source from one of the consortiums bidding for the project as saying that "We were informed of the delay and we are awaiting more clarifications."

Spiraling costs have cast doubt over the viability of new oil refineries worldwide and industry observers have been sceptical over the Jizan plan as it is a long distance from crude production facilities.

US Bechtel and Foster Wheeler, France's Technip and Italian Snamprogetti are among foreign companies that have set up consortiums with Saudi firms such as Tasnee to bid for the project.

Zoom Developers to build aluminum plant in Oman

Reuters reported that a unit of Indian group Zoom Developers is planning to build a USD 130 million plant for aluminum products near Oman's port of Sohar.

As per report, work on the downstream aluminum plant is to start in the third quarter of 2008 by Zoom Aluminium Development.

A spokesman at Indian embassy at Oman said that "Zoom has leased land from the government near the port to build the USD 130 million plant."

Zoom Developers is a Mumbai based private group with interests in sectors including energy, engineering and real estate.

24 petrochemical projects to be operational by 2010 in Iran

Mehr News Agency reported that twenty four petrochemical projects costing USD 13.3 billion are underway having been completed from 4% to 98% in Iran.

Mr Gholamhossein Nejabat deputy oil minister for petrochemical affairs and also MD of National Petrochemical Company said that 5 of the projects will come on stream in the current Iranian year and the rest will be launched by the end of the fourth 5 year economic development plan.

Me Nejabat said that 33 projects costing USD 15.5 billion have also been planned for the fifth 5 year development plan, for which the executive operations will be started within the next 2 years.

Chinese color coated coils prices edge up

It is reported that China’s color coated coils prices have been increasing due to strong demand and tight supply. The upwards trend for increasing prices is expected to continue.

As per report current prices of thickness 0.476mm and 0.23mm are prevailing at CNY 8,150 per tonne and CNY 10,300 per tonne respectively. However, domestic mills said that they will remain prices unchanged for those earthquake hit areas.

China to build 1 million prefabricated homes for quake victims

Bloomberg reported that China plans to build one million prefabricated homes to house displaced residents from this month's earthquake, according to Beijing Chengdong Prefabricated House Co a bidder for the project.

Mr Tong Jihai GM of Chengdong' said that the government has solicited bids for 20 square meter prefabricated homes that will house residents for up to five years. He said that a block of 10 structures would take 12 workers about four hours to erect.

Flexible joints and a mostly steel structure mean that the buildings shake, but do not break, during an earthquake.

Baosteel commissions new tinning line

It is reported that CR sheet plant in Baosteel Branch commissioned continuous annealing line and No 2 electro tinning line which is the thinnest with highest mill speed in the world.

The design capacity of No 2 electro tinning line is 200,000 tonnes per year and main products are high quality and high grade tin plate for food packages. The biggest width is 1,050mm, while the minimum thickness is 0.1mm.

The capacity of the continuous annealing line is 400,000 tonnes per year in thickness starting from 0.15mm at a maximum speed of 800 meters per minute.

US DOC finds dumping and subsidization on pipes from China

The US Department of Commerce last week announced its final affirmative determinations in the antidumping and countervailing duty investigations on imports of standard pipe from China.

US DOC determined that Chinese exporters have sold standard pipe in the United States at less than normal value and received actionable subsidies. The Shuangjie Group and Jiangsu Yulong Steel Pipe Co mandatory respondents in the AD investigation withdrew their participation and received an 85.55% antidumping rate based on total adverse facts available. Thirty one other companies were awarded separate antidumping rates of 69.20%. The China wide antidumping rate of 85.55% will be applied to all other exporters.

In the CVD investigation, Commerce calculated final margins for the two Chinese mandatory respondents Weifang East Steel Pipe Co. at 29.57% and The Kingland Group at 44.86%. The Shuangjie Group also withdrew its participation in the CVD investigation and was assigned a 615.92% CVD rate based on adverse facts available. The China wide CVD rate of 37.22% will be applied to all other exporters.

The ITC is scheduled to issue its final injury determination on or about July 14th 2008. If the ITC determines that imports from China are injuring, or threaten injury to the domestic market, Commerce will issue AD and CVD orders. If the ITC makes a negative injury determination, these investigations will be terminated.

Mr David Spooner Assistant Secretary for Import Administration said “Chinese subsidies and undervalued exports dumped in the United States by Chinese standard pipe producers put American producers at a disadvantage in the global marketplace and distort global trade flows. He said that the United States will continue to enforce US trade laws to ensure American businesses are treated fairly and to achieve strong and fair relationships with our trading partners.”

Allied Tube & Conduct, IPSCO Tubulars Inc, Northwest Pipe Company, Sharon Tube Company, Western Tube & Conduit Corporation, Wheatland Tube Company and the United Steelworkers are the petitioners for these investigations.

Wuhan steel hikes Q3 prices

It is reported that Wuhan Steel raises prices for the third quarter by CNY 400 per tonne to CNY 700 per tonne on the basis of its June prices.

Plates
1. Up by CNY 400 per tonne for common carbon, low alloy and quality carbon products
2. Other products except quenched and tempered steel price up by CNY 500 per tonne
3. 14mm to 20mm Q235 plate is priced at CNY 6120 per tonne after the price increase.

Wire rods
1. Up by CNY 700 per tonne for steel tyre cord
5. Other products except common carbon products price up by CNY 800 per tonne

HR
1. Up by CNY 400 per tonne
7. Higher for coils and sheets with thickness of less than 3.5mm and width of more than 1300mm price up by CNY 100 per tonne
8. Latest EXW price stands at CNY 5550 per tonne for 2.75mm Q235 and CNY 5440 per tonne for 5.5mm Q235 HRC

CR
1. CR price up by CNY 400 per tonne
2. 1.0mm Q195 CR sheet is quoted at CNY 6230 per tonne
3. 1.0mm Q195 CRC is quoted at CNY 6230 per tonne

Coated
1. GI price up by CNY 500 per tonne.
2. Color Coated Steel price is unchanged.

Prices listed above are effective as of June 2nd 2008.

(Sourced from MySteel.net)

US DOC decided AD and CVD for circular tubes from China

It is reported that 6 US pipe makers and the United Steelworkers applauded the US Department of Commerce for its final affirmative findings that Chinese producers of circular welded steel pipe are dumping below cost product in the United States and that pipe exports benefit from large subsidies provided by the Chinese government.

The Commerce Department found that Chinese pipe exports are being dumped at rates ranging from 69.20% to 85.55%. In addition, the Commerce Department found that Chinese pipe producers benefit from illegal government subsidies at rates ranging from 29.57% to 615.92%. The average subsidy rate for all respondents is 37.22%.

The Commerce Department also made final determinations with regard to critical circumstances which will allow duties to be applied retroactively for 90 days from the dates of the preliminary determinations.

The report added that final decisions are the next steps in the imposition of final duties on Chinese circular welded pipe. The International Trade Commission will vote on June 20th 2008 on whether the US industry producing circular welded pipe is injured as a result of dumped and subsidized pipe from China. The ITC made preliminary affirmative injury findings on July 31st 2007.

Pipe and tube imports under investigation increased from 10,000 tonnes in 2002 to 750,000 tonnes in 2007 up by 6,900%. As a result of this surge in low priced imports, US producers lost market share and suffered steep decreases in profitability over the period investigated. 500 American jobs approximately 25% of the total workforce employed in this segment of the domestic pipe industry, have been lost since 2002 as a result of Chinese imports.

Nine Hebei PPGI suppliers commit supplies at fixed prices

It is reported that 9 colored steel suppliers in Hebei Province, who have taken the duty of supplying colored steel for prefabricated houses for earthquake hit region in Sichuan, have made a promise that they will supply the material without any increases in prices.

As per report, Hebei Province has asked to supply 80,000 prefabs which need colored coated steel.

Tangshan Iron and Steel Group Company Ltd, Handan Iron and Steel Group Company Ltd and other 7 companies will be in charge of steel supply.

Shougang Jingtang orders for sublance system

It is reported that Danieli Corus has signed a contract for the design, supply and construction supervision for one sublance system including bottom stirring, an upgrade to the previously implemented static dynamic model and a waste gas analyser for converter No 3 at Shougang Jingtang Iron & Steel United Company Ltd.

As per report this is the second order for sublance equipment from Shougang Jingtang, a joint venture between Shougang and Tanggang.

The new Shougang Jingtang plant is being constructed on the Caofeidian Island, some 80 kilometers south of Tangshan City, Hebei Province, PR China. Close to the plant, an entirely new city designed for 1 million inhabitants are being layed out.

US ITC institutes investigations on auto parts from China

It is reported that the US International Trade Commission has voted to institute an investigation of certain automotive parts. The products at issue in this investigation are various parts of the Ford Mustang.

The investigation is based on a complaint filed by Ford Global Technologies, LLC of Dearborn, MI on May 2nd 2008. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States of certain automotive parts that infringe patents owned by Ford GTL. The complainant requests that the ITC issue an exclusion order and a cease and desist order.

The ITC has identified the following as respondents in this investigation
1. Keystone Automotive Industries Inc of Pomona at California
2. LKQ Corporation of Chicago at Illinois
3. US Autoparts Network Inc of Carson at California
4. Jui Li Enterprise Co of Taiwan
5. YCC Parts Manufacturing Co Ltd of Taiwan
6. TYC Brother Industrial Company Ltd of Taiwan
7. Taiwan Kai Yih Industrial Co Ltd of Taiwan
8. T.YG Products, LP of McKinney at Texas.

By instituting this investigation the ITC has not yet made any decision on the merits of the case. The case will be referred to the Honorable Theodore Essex an ITC administrative law judge who will schedule and hold an evidentiary hearing. Judge Essex will make an initial determination as to whether there is a violation of section 337 that initial determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation. ITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the US Trade Representative within that 60 day period.

IISI technical committee held in China for the first time

It is reported that the 40th Technical Committee Conference of International Iron & Steel Institute was held in Shanghai lately.

More than 50 experts, scholars, scientific & managerial personnel from ArcelorMittal, NSC, JFE, POSCO, ThyssenKrupp, TATA Steel, US Steel, Corus, BlueScope Steel, China Steel Corp, Baosteel, Germany Steel Federation, and CISA assembled together to discuss the development of world steel industry.

Before the conference, Mr Xu Lejiang Baosteel Chairman of the Board had a friendly exchange with Mr Mika Saariaho Deputy Secretary General of IISI the new elected chairman of the Technical Committee Lindbergh and the major members of IISI Technical Committee.
China steel industry represented by Baosteel has been developing rapidly these years which caught wide attention from the world steel industry. Therefore, IISI Technical Committee chose to hold this conference in China. Apart from the regular agenda, the special technical report from the hosting country was particularly arranged. As proposed by IISI and agreed by CISA, the special technical report from the hosting country was delivered by Baosteel.

As per report the delegation to the conference comprise personnel from Baosteel Science Association, Research Institute, Intellectual Assets Department, Environment & Resources Department, Mid-Heavy Plate Branch, Steel Tube Varieties Management Department, etc led by Mr Cui Jian Deputy General Manager of Baosteel Ltd. In the hosting country special technical exchange, Mr Cui Jian as member of IISI Technical Committee made the theme report of “Thoughts and practice on Baosteel Technical Management" in English.

5 managerial and technical personnel of Baosteel made 5 technical reports
1. Current conditions and strategic planning of Baosteel Energy & Environment Protection
2. Baosteel COREX-3000 Technology
3. Baosteel BSSF Steel Slag Processing Technology
4. Baosteel Research & Development in Automotive Sheet Technology
5. Baosteel UOE Technology

The participating experts took great interest in the reports and had an interactive exchange with Baosteel technicians on the relevant managerial and technical issues.

Guangzhou Steel sales revenue in May hit CNY 788 million

Guangzhou Daily reported that latest statistics show that Guangzhou Iron & Steel Corp Ltd has yielded 139,353 tonnes of crude steel and 114,198 tonnes of finished steel in May with sales revenue hit monthly record of CNY 788.21 million. The good performance was achieved against the backdrop of soaring prices for iron ore, coking coal and electric power.

Guangzhou employers said a total of 94,116 tonnes of qualified pig iron has been yielded in May.

Mr Huang Zhiwei senior official of the company said the company aims to produce 1.5 million tonnes of crude steel this year up by 26% from last year. He said that "We are confident to achieve the target."

Guangzhou Iron & Steel Corp Ltd has donated CNY 1.3 million to the disaster affected Sichuan province so far.

Bayi Steel produces 1.94 million tonnes of crude steel in 5 months

It is reported that Xinjiang based Bayi Steel has produced 1.94 million tonnes of crude steel and 1.84 million tonnes of finished products in the first five months of this year, sales revenue for the period has reached CNY 9 billion and is expected to break CNY 20 billion throughout this year.

Bayi Steel yielded 4.04 million tonnes of crude steel last year with sales revenue of CNY 13.7 billion.

Haixin Steel seeking strategic investors

South China Morning Post reported that Haixin Iron and Steel Group is hoping to bring in industrial investment funds as strategic investors.

The report added that the plan to take in strategic investors will help support an investment program that will raise capacity to 15 million tonnes within three years from the current 6 million.

Mr Li Zhaohui chairman of Iron and Steel Group said expansion was a matter of survival due to intense competition and rising costs.

Laiwu Steel develops high grade bearing steel

It is reported that recently, the 55 SiMoV high grade bearing steel has been successfully developed by Laiwu Steel Special Plant and Wafangdian Bearing Company.

As per reports, the major technical indicators have been matched and it is being said as a major milestone in special steel production in China.

55 SiMoV high grade bearing steel has high hardenability, high strength toughness, high fatigue life, high temperature resistance, impact resistance.

Laiwu Steel Special Steel Plant expressed that the successful development of 55 SiMoV high-grade bearing steel speeds up the business of direct selling process of special steel products. At present, Laigang special system has formed a product development chain from market research, research and development, production trial, market development, after-sales service and customer application technology research, product life cycle research etc.

Handan and German Neu ink long term shipping agreement

It is reported that Mr Liu Rujun board chairman of Handan Steel and Mr Richard president of German Neu Shipping Company signed long term shipping agreement and established long-term friendly and cooperative relations.

Neu Group is committed to the international maritime transport services for the world’s well known steel enterprises. In September of 2001, Neu Group purchased Krupp Shipping Company, so Neu became one of the world’s largest shipping companies.

Baosteel convertible corporate bond approved

It is reported that recently the application of Baosteel Ltd to issue convertible corporate bond for which the transaction of warrants is separated from the transaction of bonds was approved by China Securities Regulatory Commission.

In the following 6 months Baosteel Ltd is going to issue publicly CNY 10 billion convertible corporate bonds for which the transaction of warrants is separated from the transaction of bonds with CNY 100 par value. The term of bond will be 6 years.

As per report it was the resolution of the first interim general meeting of stockholders of Baosteel Ltd in 2007 that to speed up achievement of the new round development strategy of Baosteel, Baosteel Ltd was to issue CNY 10 billion convertible corporate bonds for which the transaction of warrants would be separated from the transaction of bonds for the purpose of buying from Baosteel Group the assets of Luojing engineering projects, investing in No 5 Cold Rolling Mill project & the supporting facilities and Cold Rolled Stainless Steel Strip Project, as well as adjusting the debt structure.

According to the articles for bond issuance, the final subscriber of each bond may gain the subscription warrants distributed by the issuer company according to certain ratio. The ratio of the exercise of all related warrants is 2:1, i.e. 2 subscription warrants represents the right to subscribe 1 A-share issued by the company. The original share holder at the time of issuance enjoys the preemptive right based on their tradable shares not subject to selling restrictions at the proportion of not lower than 40% of the total issue of this time. Baosteel Group, the biggest shareholder of Baosteel Ltd promises to guaranty for this issuance free of charge.

Baosteel Group credit rating by the Standard & Poor's is A- with positive outlook its guaranty will greatly reduce the risks to hold the convertible corporate bonds for which the transaction of the warrants is separate from the transaction of the bonds.

China to build 7 industrial bases for new materials

Xinhua reported that China will build seven production bases for new materials to boost the development of high-tech industries.

The National Development and Reform Commission said the bases would be built in Ningbo, Dalian, Luoyang, Jinchang, Guangzhou, Baoji and Lianyungang.

The report added that these bases will turn out new materials for industries covering information technology, biotechnology, aeronautics, new energy and environment protection.

The NDRC required that local government departments offer preferable policies for building these bases and create a sound environment for the development of high-tech industries.

Update on HR price in Shanghai, Beijing and Guangzhou

Shanghai

HR coil price ascends by CNY 50 per tonne.
1500mm coil is priced at CNY 5800 per tonne to CNY 5850 per tonne 1800mm coil at CNY 6150 per tonne
Sheet prices rise by CNY 100 per tonne to CNY 200 per tonne with diameter 2.5mm SPHC posted at CNY 6500 per tonne and diameter 2.75mm Q235 at CNY 5980 per tonne
7.5mm low alloy product stands at CNY 6150 per tonne
CCS1810 is posted at CNY 6200 per tonne up by CNY 100 per tonne.

Beijing
HR price moves up
2.75mm coil is offered at CNY 5950 per tonne
7.5mm uncoiled plate is offered at CNY 5850 per tonne to CNY 5900 per tonne.

Guangzhou
HR prevailing prices push up
1500mm coil prices prevail at CNY 5900 per tonne to CNY 5950 per tonne
2.75*1250*C coil is posted at CNY 6300 per tonne.

(Sourced from MySteel.net)

Update on CR price in Shanghai, Beijing and Guangzhou

Shanghai
CR price climbs up slightly
Angang 1.0mm sheet is quoted at CNY 7250 per tonne up by CNY 50 per tonne
1.2mm to 2.0mm sheet at CNY 7180 per tonne up by CNY 30 per tonne
Handan Steel made 1.0mm coil stands at CNY 7080 per tonne up by CNY 30 per tonne.

Beijing
CR price keeps unchanged with 1.0mm wider sheet posted at CNY 7100 per tonne.

Guangzhou
CR offers rise moderately
Angang 1.0mm CR sheet is posted at CNY 7180 per tonne
1.0mm CR coil price offered by Ma'anshan Steel stands about CNY 7100 per tonne

(Sourced from MySteel.net)

Tangshan city mulls share sale Caofeidian Industrial Zone

Bloomberg reported that Tangshan may sell shares to help finance a USD 29 billion industrial park, the centerpiece of the nation's largest land reclamation project.

Mr Xue Boxun the project's deputy director said that ownership of the Caofeidian Industrial Zone, including a port, may be transferred to two city owned investment companies that would then offer stock to local or overseas investors. He said that “We are looking for the quickest way to go public. He didn't give a timetable for completing a stock sale.”

Mr Xue said the city has not submitted any application to the securities regulator for a share sale as it is still working out planning issues. Officials are studying ways to get around the regular stock sale process because it would take three years.

The report added that Tangshan is seeking to reduce its reliance on state loans after the central bank pushed borrowing costs to a decade high.

Mr Wo Hing Li to support University of Hong Kong

China Precision Steel has announced that Mr Wo Hing Li its Chairman, President & CEO will donate USD 19.9 million to the University of Hong Kong. The donation will be funded through the sale of a portion of Mr. Li's shares of the company's common stock.

Mr Li said ''We strongly believe in the growth of China and would like to promote higher education. All of the proceeds from the sale of common stock under the stock purchase agreement will be donated to the Chinese University of Hong Kong, which plans to use the funds to build a new college.''

As of May 29th 2008 Mr Li is the beneficial owner of 16,349,240 shares of common stock of the Company. He is holding represents 35.6% of the outstanding shares assuming 45,896,288 shares of the Company's common stock outstanding as of May 15th 2008 as reported in the Form 10-Q filed on May 16th 2008.

Central China faces more power shortages after quake

Reuters reported that Central China's Hubei, Henan and Jiangxi provinces will likely face worse than usual power shortages this summer as earthquake-hit Sichuan may need to import electricity.

Mr Yu Yanshan deputy chief of the General Office under the State Electricity Regulatory Commission said Sichuan will probably need to import 2 gigawatts of electricity after the devastating May 12 tremor damaged some hydropower dams.

He said that China's p