June, 04 2008
SAIL RSP makes production record for May 2008
PTI reported that Steel Authority of India’s Rourkela Steel Plant has made record production in May 2008. Hot metal production in May 2008 stood at 180,105 tonnes up by 6.7% YoY, crude steel at 169,103 tonnes up by 8.7% YoY and total saleable steel at 165,125 tonnes up by 22.3% YoY.
RSP achieved all time best performance for any month of April to May 2008 since inception in several areas. These include hot metal production of 359,430 tonnes, crude steel production of 338,314 tonnes and saleable steel production of 321,400 tonnes which besides being highest compared to any month of April to May also represents capacity utilization of 109% YoY, 107% YoY and 115% YoY.
The best April to May period production was also recorded in the finishing units of the steel plant with hot rolled coils at 264,933 tonnes, hot rolled coils at 127,754 tonnes, hot rolled plates at 52,055 tonnes and cold roll non oriented steel from silicon steel mill at 14,720 tonnes.
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.''
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.
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.
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.
Mr Sajjan Jindal takes over as new president of Assocham
Mr Sajjan Jindal vice CMD of JSW Steel has taken over as new president of the industry body Assocham, replacing Mr Venugopal Dhoot chief of Videocon Group.
Mr Jindal said that he would promote 5 causes during his tenure as president in the current fiscal which includes making Latin America as Indian Inc's major business partner, suggesting measures to Indian government to tame the inflation and cause agricultural growth to go up to about 5%.
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.
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."
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.
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.
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.
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.
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."
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.
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.
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."
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.
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
Bids for Mumbai Trans Harbor Link to be finalized by mid June
BL reported that Maharashtra government is likely to finalize bids for the INR 6,000 crore, six lane Mumbai Trans Harbor Link between Sewri and Nhava Sheva by mid June 2008.
As per report, Maharashtra State Road Development Corporation, which is a nodal agency for the project, is considering the option of asking the consortium of Reliance Energy and Hyundai to pay a surety of INR 5,000 crore.
The state government is reconsidering the consortium's bid on grounds that it had quoted a concession period that was too low and unrealistic. The consortium had quoted a concession period of 9 years and 11 months and was declared the preferred bidder by the state government in February 2008.
Crompton Greaves acquires Sonomatra in France
BL reported that, in its fourth global acquisition, electrical equipment major Crompton Greaves Limited has bought French power transformers repairing leader Societe Nouvelle de Maintenance Transformateurs for EUR 1.30 million.
Crompton Greaves in a regulatory filing said that the acquisition would help its capabilities in the services segment of its transmission and distribution business. Though Crompton Greaves has been focusing on 3 segments of power systems, industrial systems and consumer products, it is mainly identified with its fans and lighting business.
This is the fourth acquisition for the firm in the international arena. It acquired Belgium based transformer manufacturer Pauwels. Thereafter, it acquired Hungary based Ganz, a leading manufacturer of extra high voltage transformers, gas insulated switchgear and other related components. In 2007, it acquired Ireland based transmission and distribution focused Microsol Holdings Limited and its associate companies.
Sonomatra is engaged in providing on-site maintenance, repair of power transformers, on load tap changers, oil analysis, oil treatment and retrofilling.
IDCO faces law and order problem in Kalinga Nagar project
BS reported that Industrial Infrastructure Development Corporation is facing serious law and order problem in its developmental work at Kalinga Nagar Industrial Complex in Jajpur district of Orissa.
This industrial complex has been developed by IDCO for facilitating the establishment of mega industries in steel and metal sectors. It has taken up special repair work of old military road near village Ravana lying within the KIC. It faced a major problem last week when one of its supervisors Mr Harmohan Nayak was physically assaulted by some unidentified persons.
The incident occurred when Mr Nayak reportedly pointed out about certain specification deficiency in the work to the field staff of the contractors. He was allegedly assaulted by the field staff of the contractor, who has been entrusted with this work. The local divisional head of IDCO has lodged a FIR with the Jakhapura police station.
The same day, Mr PK Panda junior engineer working with IDCO, was abducted from the work site by a group of people belonging to the nearby village while inspecting the water supply work of Gobarghati rehabilitation colony. He was kept in confinement till he was rescued by the officials of IDCO.
The matter was reported to the superintendent of police, Jajpur by the managing director, IDCO for taking necessary remedial measures.
Sunil Hitech receives OHSAS certification
Sunil Hitech Engineers Limited recently announced that it has awarded Occupational Health & Safety Management System certificate by international certification services DNV on May 23rd 2008. As per report, Sunil Hitech Engineers Limited is amongst the very few companies in the power and infrastructural sector which have been awarded prestigious OHSAS certification 18001:2007.
Mr Ratnakar M Gutte CMD of Sunil Hitech Engineers said that "Sunil Hitech Engineers has emerged as an aggressive player in the power sector. Being an OHSAS company, SHEL should strive to reduce accident and injuries to a minimum through collective involvement knowledge sharing and up gradation of all activities."
Mr Sunil R Gutte joint MD of Sunil Hitech Engineers said that "We are committed to protect the employees and those under the influence from Occupational ill health and injuries."
Sunil Hitech is also ISO: 9001-2000 certified company, specializes in the area of civil, mechanical, fabrication, erection, electrical works pertaining to energy, power sector and other infrastructural projects, testing & commissioning of thermal power plants with high precision quality and timeliness. Sunil Hitech Engineers' list of client includes big players like BHEL, NTPC, Reliance Energy, Jindal Steel & Power, TATA and state electricity board Maharashtra, Chhattisgarh, Madhya Pradesh and Tamilnadu. It also undertakes projects in the transmission and distribution segment.
JSEB owes TVNL INR 950 crore
Ranchi Express reported that Jharkhand State Electricity Board owes INR 950 crore to the Tenughat Vidyut Nigam Limited. While hit by fund church Tenughat Vidyut Nigam Limited is holding up payment to Central Coalfields Limited in turn. The consequence may be worse if Central Coalfields Limited stops supply to TNNL demanding its dues that has spiraled up to INR 157 crore.
Mr DK Singh coal advisor of Tenughat Vidyut Nigam Limited said that "We are holding payment to CCL for coal purchase because we lack funds." He added that it is not in position to pay CCL bills till the Jharkhand State Electricity Board made regular payments on TVNL.
The coal consumption of Tenughat Vidyut Nigam Limited is likely to double once the unit starts generation. The unit is expected to start generation from June 12th 2008 after a gap of one year.
Meanwhile, the CCL Board has referred the matters of coal ministry after repeated reminders.
Punj Lloyd acquires 74% stake in Technodyne
BS reported that Punj Lloyd Group has acquired a strategic 74% stake in Technodyne International Limited of UK for an undisclosed amount.
Punj Lloyd, in a statement, said that "This acquisition is a strategic fit and further strengthens Punj Lloyd's existing tankage and terminal business. The acquired capabilities enable it to provide end to end solutions for complete delivery of complex cryogenic, high pressure LNG, LPG, ethylene, ammonia and other similar storage tanks, a significant growth area in oil & gas sector. The capabilities will also be leveraged for design of refinery and petrochemical projects."
Punj Lloyd has been the only company to be involved in all three LNG terminals in Dahej, Dabhol and Hazira in India. It has also completed the cryogenic storage tank package at the Reliance Jamnagar refinery, among other notable tankage projects in South Asia, Asia Pacific and the West Asia successfully in the past.
Technodyne is a specialist engineering, design and consultancy company specializing in large scale cryogenic and high pressure tanks. With projects executed across the world, Technodyne carries out the basic design and detailed engineering for complete steel and steel plus concrete tanks including associated piping, instrumentation and electrical systems.
ABB wins orders for JSW power plant
It is reported that ABB in India has won orders worth INR 295 crore to provide power solutions for JSW Energy for its upcoming 1200 MW thermal power plant in Ratnagiri in Maharashtra.
The orders are for a range of power solutions including, electrical balance of plant, 400kV gas insulated switchgear substation and generator transformers.
Mr Biplab Majumder country manager & MD of ABB India said that "We are proud of our long standing partnership with the JSW Group. With this order we continue to build on this relationship. ABB’s power products and systems will ensure safe and reliable operation of the plant while optimizing energy consumption of the equipment."
ABB’s solutions for the project comprise several leading edge power technologies for improved system efficiency. The modular environmental business opportunities program solution for 300MW generating units will provide optimized and integrated solutions for complete plant electricals including shunt reactors, bus ducts, control and relay panels, MV and LT switchgear, other auxiliary systems and four 20kV generator circuit breakers, thus providing a further boost towards GCB scheme usages by thermal power plants in India.
The 400kV GIS substation will provide substantial space saving due to its compact design. With all live parts enclosed and protected against negative influences the gas insulated switchgear ensures enhanced operational reliability and safety.
ABB’s scope of delivery also includes 20/420 kV generator transformers. ABB’s transformers are designed and manufactured for high reliability, reduced life cycle costs and optimized electrical design for minimized losses.
Mining industry in India to touch USD 30 billion by 2012 – Report
According to a report by financial services firm Edelweiss, India's mining industry is projected to touch over USD 30 billion accounting for about 2.5% of the GDP in the next 4 years.
The report said that "Considering India's mineral resources, we believe there is strong potential for further development and scaling up of India’s mining industry. We believe that the mining industry could grow to USD 30 billion plus by 2012 fiscal and reach 2.5% of GDP, if India develops a conducive regulatory framework and attracts significant investment in exploration, mine development and infrastructure."
The report pointed out that India has immense natural resources and is ranked among top 10 globally for deposits in iron ore at 25.2 billion tonnes, coal at 257.4 billion tonnes and bauxite at 3.3 billion tonnes, which constitute 3%, 10% and 4% respectively of the world's resources. India also holds leading position globally in mica, barytes, chromite, kaolin and manganese.
The report said the proposed National Mineral Policy and the allotment of captive coal blocks are the key triggers for future development of mining in India. It added that "As the Indian mining industry scales further, we see both new and existing mining players offering significant wealth creation opportunities to investors."
In September 2005, the Hoda Committee under the chairmanship of Mr Anwarul Hoda was constituted to review the National Mineral Policy, 1993, with an aim to improve the investment climate for mining in India. Some of the highlights of the Hoda Committee report are
1. Prioritizing critical infrastructure needs of the mining sector
2. Review existing procedures for granting reconnaissance permits
3. Prospecting license
4. Mining lease
5. Identifying ways of augmenting state revenues among others
Indian steel makers to hold price for 3 months –Mr Jindal
Mr Sajjan Jindal former vice CMD of JSW Steel, after taking over as president of Assocham, said that Indian steel makers will honor their commitment to Dr Manmohan Singh to hold prices for 3 months, but rates will go up thereafter.
He said that "Prices have to go up. We have to go into the global price regime. What can you do if raw material prices have gone up?"
Mr Jindal said that there is a big gap between global and Indian prices. He added that "Today for hot rolled coils, the international price is close to USD 1,200 per tonne. In India, we are selling it at USD 850 per tonne."
He said that the raw material prices, both of iron ore and scrap, are going up. Scrap is being imported at USD 800 per tonne, while the selling price is fixed at USD 850 per tonne. He added that "Either that part of the steel industry will close, creating shortages or price has to go up."
Essar plans groundbreaking for Minnesota Steel plant
Essar Group has issued a press release on May 30th 2008 indicating that it plans a ground breaking this summer for the USD 1.65 billion mining, processing and steelmaking Minnesota Steel plant.
Mr Ravi Ruia VC of Essar Group said that "We are committed to moving as quickly as possible to bring steelmaking to the iron range. Minnesota Steel plays a key role in our North American steel strategy."
Essar said that it planned to develop the operation that would produce high quality and low cost steel through ore processing, direct reduced iron production and steel making all on one site. Estimated annual production from the plant is expected to be 2.5 million tonnes of steel product.
Essar indicated it will internally finance the entire USD 1.65 billion price tag including technical, managerial and financial resources. It described itself as a USD 50 billion company with assets in steel, energy, power, communications shipping and logistics and construction. Meanwhile, the project’s public face has changed since Essar’s purchase of Minnesota Steel.
CPI calls for all party meet over ArcelorMittal steel plant in Orissa
SNS reported that CPI has demanded an all party meeting to take decision on ArcelorMittal's proposed Greenfield steel mill in the state.
Mr Dibakar Nayak CPI state secretary said that half of the 8,000 acre land identified for its site is arable land. He said that it is necessary to identify suitable land for the mill so that minimum number of people was displaced.
He add that “The government should also avoid using cultivable land for setting up plants.”
Orissa government clears more mega projects
SNS reported that Orissa government’s high level clearance authority, headed by Mr Naveen Patnaik chief minister, has cleared several investment proposals in the state. The proposals for capacity enhancement of capacity from various steel and power companies were also cleared at the meeting
The list includes
1. Essar Steel’s proposal to set up a 6 million tonnes per annum plant and an 8 million tonnes per annum iron ore beneficiation plant. Essar had signed a MoU to set up a 4 million tonnes per annum plant through the sponge iron route. Now, the revised proposal for 6 million tonnes per annum will be through the blast furnace route.
2. Welspun Power & Steel’s proposal to set up a 5 million tonnes per annum iron ore beneficiation plant and a 3 million tonnes per annum pellet plant.
3. 2000 MW thermal plant of Bhushan Energy Limited
4. 1000 MW thermal projects of Monnet Ispat & Energy Limited
5. 1000 MW thermal projects of Visa Power Limited.
6. INR 2200 crore ship building yard & ship repairing project of Apeejay Shipping Limited. The project will come up at the Dhamra Port. Apeejay Shipping had agreed to complete the project within 5 years of acquisition of land.
7. Capacity expansion proposals of SMC Power Generation Ltd, MSP Metaliks and Bhushan Steels were also cleared. The HLCA approved
8. Petrochemicals & petroleum project, one of the five such projects to be developed in India, will be located in Paradip region covering 2 districts of Jagatsinghpur and Kendrapada. Indian Oil Corporation will be the anchor tenant for the project.
Chinese Long Jian to build roads in Himachal Pradesh
BS reported that Chinese firm Long Jian Road & Bridge Limited will build an 80 kilometers long two lane road from Theog to Rohru in the Himachal Pradesh's Shimla district. The project will cost INR 228 crore and to be completed in 3 years. Mr Gulab Singh state PWD minister and Mr Li Guangsheng director of Long Jian Road & Bridge Limited have signed the agreement.
Mr Singh said that "The contract envisaged execution of the work in difficult mountainous terrain and harsh climatic conditions. It involves construction of 15 bridges, 280 culverts and 6.5 kilometers high retaining walls, 5.5 kilometers of covered foot path and 30 rain shelters on the 80 kilometers road."
He said that the widening of the road will benefit fruit and vegetable growers of the fertile Shimla district. He added that "The project will be completed within the specified period of 36 months."
L&T outbids BHEL for AP power project
ET reported that Larson & Toubro has outbid BHEL for supply of main power equipment for a proposed 1,600 MW power project in Andhra Pradesh.
As per report, against a bid of about INR 2,000 crore placed by BHEL, L&T bid just over INR 1,500 crore.
The project being developed by Andhra Pradesh Generation Corporation at Krishnapatnam would be the first project in India based on 800 MW supercritical thermal generation sets. The total cost of Krishnapatnam project is about INR 8,000 crore.
Mr Jairam Ramesh union minister of state for power said that "The Krishnapatnam project would be the first contract given to a non BHEL domestic manufacturing company. It is a very significant development that would kick start L&T’s own power equipment manufacturing program. India needs to step up manufacturing to keep pace with its ambitious capacity addition program and an additional domestic manufacturer here would definitely help."
Indian cement sales in May up by 7.9% YoY
According to the Cement Manufacturers’ Association, India’s cement sales in May 2008 have grown up by 7.9% YoY as an increased focus on infrastructure projects has pushed up demand for the building material in India. Cement sales grew to 167.67 million tonne from 155.26 million tonnes in the previous year.
Cement sales of Aditya Birla group rose by 0.8% YoY in May 2008 to 2.66 million tonnes while its production grew up by 2.5% YoY to 2.70 million tonnes. The Birlas’ cement production comes from flagship Grasim Industries and UltraTech Cement, with a combined capacity of more than 31 million tonnes.
ACC said that its January to March 208 quarter sales rose by 7.1% YoY to 5.29 million tonnes. April 2008 production totaled 1.77 million tonnes while sales was 1.74 million tonnes. ACC has the capacity to make 22.4 million tonnes of cement a year.
Shree Cements said that its May 2008 sales grew up by 20.3% YoY to 556,000 tonnes.
Ispat to buy 40% stake each in 3 overseas mines of Global Steel
BS reported that Ispat Industries will buy a 40% stake each in three overseas mines of Global Steel Holdings. Global Steel owns 70% stakes in iron ore mine in Brazil and two coal mines in Columbia and Mozambique.
Global Steel is setting up 3 special purpose vehicles for isolating financial and regulatory risks. Ispat will purchase the stakes in these SPVs, which are held by Global Steel.
The iron ore mine has an estimated reserve of 500 million tonnes while the coal mines hold reserves of 120 million tonnes.
Adhunik Metaliks subsidiary Orissa Manganese & Minerals to go public
It is reported that Adhunik Metaliks Limited has decided to take its wholly owned subsidiary Orissa Manganese & Minerals public.
AS per report, the initial public offer, to be launched in the next 4 to 6 months, is expected to unlock value for Orissa Manganese and the promoters are looking to mop up INR 200 to INR 250 crore from the share sale.
It is reported to have 80 million tonnes of iron ore and 50 million tonnes of manganese reserve. Orissa Manganese has begun the mining of manganese recently, while iron ore production is expected to begin later this year.
Adhunik had bought Orissa Manganese for INR 60 crore sometime back.
JSPL inks MoU with Bihar for thermal power plant
The Telegraph reported that Jindal Power Limited has signed a MoU with the Bihar government for setting up a 2,640 MW coal based power plant. Mr Sushil Maroo director of Jindal Power and Mr Aditya Swaroop energy secretary of Bihar have signed the MoU.
The final site of the project would depend on the availability of coal blocks and water.
JPL commissioned 500 MW of 1,000 MW project in the year 2007-08. The third and fourth units of 250 MW each were likely to be commissioned in June and July 2008 respectively.
It is also in process of setting up 2 power plants in the Dumka and Godda areas of Santhal Pargana where the company had been allotted coal blocks.
TATA Steel may shift titanium project from Tamil Nadu
BS reported that TATA Steel is considering the option of shifting its INR 2,500 crore titanium dioxide projects to Andhra Pradesh or Orissa as it has failed to initiate the process of land acquisition in Tamil Nadu even as a year has gone by since the announcement of the project.
Mr S Asokan head of the project said that "We will talk to the Tamil Nadu government first before taking a decision. The mining project, which was announced in June 2007, needs an estimated 10,000 acres of land. However, the state government has failed to help the company in the land acquisition process."
Initially, sections of the local population, particularly those with strong political leanings, accused TATA Steel of attempting to acquire agricultural land for mining. TATA Steel is now facing trouble in acquiring land since small pieces of land aggregating to its needs are scattered among several hundred owners.
Triveni Engineering inks agreement with TGM Turbinas
Triveni Engineering & Industries Limited recently announced that it has signed an agreement of understanding with TGM Turbinas Industria e Comercio Ltda of Brazil, wherein both parties are undertaking to make all their best efforts to conclude a license agreement for the manufacture and sale of impulse and reaction steam turbines of 25 to 45 MW at its Bangalore facility.
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.''
European FeSi users oppose AD on Chinese imports
It is reported that European FeSi users have expressed their objection to the anti dumping duties on imports from China, Egypt, Kazakstan, Russia and Macedonia.
Producers in Russia and Kazakstan agree EU intends to impose AD duties as it fails to correctly calculate the negative influences brought by other factors.
Besides, European importers believe the duties are based on the false estimation of EU benefits and EU has not checked the objections.
As international FeSi market shoots up, all the supports and functions of the AD duties will be proven wrong.
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.
Krosaki to buy Magnesita stake - Report
Bloomberg reported that the largest Brazilian producer of refractory tiles, Magnesita Refratarios SA will sell a stake to Krosaki Harima Corp as part of a plan to issue as much as BRR 186.4 million (USD 114.3 million) of new shares.
Magnesita in a statement said that it will sell as many as 9.64 million voting shares for BRR 19.34 each. Krosaki will buy 5.74 million of the shares, equal to 3% of Magnesita's outstanding capital and controlling shareholder GP Investments Ltd will have 30 days to exercise its right to acquire a bigger stake.
Mr Adriana Fernandes Magnesita investment relations manager said that “This operation aims to consolidate Magnesita's partnership with Krosaki which has been providing technological transfer to Magnesita for more than 20 years.”
Mr Fernandes said that Magnesita may expand its production capacity beyond the current 590,000 tonnes a year as Brazilian steelmakers, the biggest buyers of the tiles, boost output to meet domestic demand.
Matesi asks for collective contract like Sidor
BNamericas reported that employees at Venezuelan iron briquette manufacturer Matesi have asked the government to draw up a collective contract similar to the one recently signed with steelmaker Sidor and steel tube manufacturer Tavsa.
A union leader told BNamericas that "We are part of Sidor and now that negotiations are finished with Tavsa we believe it's fair to expect similar treatment.”
In early May, the government agreed to raise Sidor salaries by VEB 53 a day (USD 24.70) which, according to Venezuela's President Hugo Chávez will increase operating costs at the recently nationalized company. Later, employees at steel tube manufacturer Tenaris and its subsidiary Tavsa reached an agreement to boost salaries by VEB 55 per day.
The leader added that Matesi employees have been negotiating their collective contract since last year without success.
The Matesi plant, located in Venezuela's Guayana region, has production capacity of 1.5 million tonne per year and was purchased in July 2004 for USD 120 million by Venezuela's Materiales Siderúrgicos a company formed by Tenaris and Sidor.
Taiwanese rebar prices continue to rise.
A main rebar mill in southern Taiwan has announced to increase prices this week by TWD 600 per tonne on its rebar. Consequently rebar new price is increased from TWD 31,700 per tonne to TWD 32,300 per tonne.
Taiwan’s long product prices soared as a whole last week and continue its upward trend. The price of rebar has been rose by TWD 700 per tonne last week, as the price was between TWD 31,200 per tonne and TWD 31,700 per tonne.
(Sourced from YIEH.com)
Dragon Steel increases prices of H beam and billets
Taiwan’s Dragon Steel has also announced its new price for June, followed by Tung Ho Steel.
Dragon Steel decided to raise its price of H beam by TWD 2,800 to TWD 3,000 per tonne. The price of billet will be raised by TWD 2,400 per tonne. However Dragon’s price is still lower than market price.
Tung Ho Steel has raised its H beam prices by TWD 3,000 per tonne. The company’s benchmark prices have been raised from TWD 32,500 to TWD 32,800 per tonne to TWD 35,500 to TWD 35,800 per tonne.
(Sourced from Yieh.com)
French steel exports in Q1 of 2008 up by 8.2% YoY
According to the French Steel Federation, French exports of steel products to third countries in the first quarter rose by 8.2%YoY to 159,000 against the same period last year.
The federation said that flat products export increased by 7.1% to 136,000 tonnes, long products up by 15% to 23,000 tonnes.
The federation added that import in France dropped by 59.5% to 32,000 tonnes and that of long products fell by 33.3% to 14,000 tonnes compared to the same time of last year.
Japanese steel product imports in April up by 41% MoM
It is reported that Japan imported 824,000 tonnes of steel products in April up by a 40.8% MoM compared to March 2008 and down by 2% YoY
Among them, imports of common steel products totaled 317,000 tonnes. South Korea was the main provider with 196,000 tonnes, Taiwan took 57,000 tonnes and China provided 44,000 tonnes.
Yung Kong Galvanizing board approves equipment purchase
Malaysian Yung Kong Galvanizing Industries Berhad announced that its board of directors has approved to purchase manufacturing facilities amounting to MYR 2,695,500 from a related party, Chuanmeng Design & Decor Sdn Bhd.
The manufacturing facilities consist of 27 sets of roll forming machines with supporting equipments to produce roll formed sheets of various profiles and accessories and 1 unit of forklift.
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.
AK Steel announces July surcharges for electrical and stainless steel
AK Steel has advised its customers that an USD 820 per ton surcharge will be added to invoices for electrical steel products shipped in July 2008.
July 2008 surcharges for the broad range of stainless steel products that AK Steel produces can be found on the company's web site at www.aksteel.com. Due to continued increases in raw material costs, AK Steel will add a new surcharge for copper, effective with shipments on June 29th 2008.
AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the May 2008 purchase cost used to determine the July 2008 surcharges.
Northwest Pipe bags USD 19 million order from Don Kelley
Northwest Pipe Company announced that it has received a letter of intent from Don Kelley Construction Inc to supply pipe for the Lewis & Clark Regional Water System.
Northwest Pipe will supply approximately 57,000 feet of 54" steel pipe valued at approximately USD 19 million for an engineered and custom fabricated piping system. The pipe is expected to be manufactured in the Company's Saginaw in Texas division with delivery scheduled to begin in the third quarter of 2008.
The release added that “The Lewis and Clark Rural Water System developed a groundwater supply adjacent to the Missouri River and a water treatment facility in southeast South Dakota near Vermillion. Treated water will be piped to member municipalities and rural water systems. When complete, the project will provide safe, reliable drinking water to approximately 200,000 people in South Dakota, Minnesota and Iowa. The Lewis and Clark Rural Water System represents a unique regional approach by the three states to address common problems with area water resources in a more effective and cost-efficient way than each state could do alone. This supplemental water supply will allow the Water Service Area to maintain the existing quality of life and will sustain the present rate of growth in the Water Service Area.”
Hitachi Metals targets JPY 1 trillion sales by 2015
JMB reported that Hitachi Metals targets around JPY 1 trillion of consolidated sales in or after fiscal 2015 ending March 2016 through sustainable growth effort in 2 step 3 year plans.
As per report Hitachi Metals tries to expand the business opportunity in USA, China and Asian countries. The firm also launches new products with high performance and environmental friendly property for the next growth.
AISI releases 2007 Annual Statistical Report for NAFTA
The American Iron and Steel Institute, the primary source of statistical information on the North American steel industry announced the release of its 2007 Annual Statistical Report.
The 126 page book, the most comprehensive reference of its kind for the American steel industry, provides statistical data for the United States steel industry plus a variety of selected statistical data on the Canadian, Mexican and world steel industries.
The ASR has proven to be an indispensable reference tool for the industry, media, academia, steel analysts and others who are interested in tracking steel industry trends. The most popular charts, in terms of inquiries received by the Institute, include Selected Statistical Highlights on shipments, apparent supply, imports, employment and raw steel data over a 10 year period; Selected Financial Highlights on income and cash flow data; Shipments by Products and Markets over a 10 year period; Raw Steel Production and imports and exports data.
NAFTA charts, which are included as part of a series for the seventh consecutive year, were compiled from US Department of Commerce, Bureau of the Census, Statistics Canada and CANACERO data. The charts show raw steel production, steel mill product shipments and imports and exports data.
The report is the longest running statistical publication series in all of manufacturing, dating back to 1868. The ASR has been published without interruption since 1914.
S&P assign BB rating to CSN on positive watch
Standard & Poor's ratings services placed its BB corporate credit rating on Brazilian steel maker Companhia Siderúrgica Nacional on positive watch.
S&P cited improving cash flow protection measures that may allow it to comfortably finance its aggressive capital expenditures program in the next several years.
S&P noted that production at CSN's proprietary iron ore mine, the Casa de Pedra mine is expected to firmly ramp up from 2008 under a sanguine price and market environment which will contribute to CSN's cash flow diversity and resilience.
S&P added that the positive watch also reflects improving market and economic conditions in Brazil, that allows CSN to tap the market to refinance existing debt maturities and finance expansion plans.
Voestalpine shares increase after higher profit forecast
Bloomberg reported that Austria's biggest steelmaker Voestalpine AG rose the most in eight days in Vienna trading after Steubing AG forecast profit will increase on higher demand.
As per report Voestalpine rose as much as 3.2% after Steubing analyst Mr Michael Broeker said that earnings before interest and tax will increase to EUR 1.13 billion from EUR 1.01 billion a year earlier.
Sources said that “Voestalpine benefits from higher demand from its key clients in the automotive, mechanical engineering and energy related industries. Notably in special steel, capacities will be extended to meet growing demand.''
Nucor announces 140th consecutive quarterly cash dividend
The board of directors of Nucor Corporation declared the regular quarterly cash dividend of 32 cents per share on Nucor's common stock.
In addition to the 32 cents per share base dividend amount, Nucor's board approved the payment of a supplemental dividend of 20 per share for a total dividend of 52 cents per share.
This cash dividend is payable on August 11th 2008 to stockholders of record on June 30th 2008 and is Nucor's one hundred forty first consecutive quarterly cash dividend.
The supplemental dividend of twenty cents per share is based primarily on Nucor's continued strong results. The payment of the supplemental dividend in any future period will depend upon many factors, including Nucor's earnings, cash flows and financial position.
Japanese steelmakers to supply more steel to automakers
JMB reported that Japanese integrated steel makers try to increase the steel supply for automakers.
As per report, Japanese steel makers are studying potential higher output to keep stable supply when automakers are accepting around JPY 28,000 per tonne of price hike for fiscal 2008 started April from previous year.
The supply is estimated to increase by around 200,000 tonnes in April to September 2008.
US ITC retains AD duty on wire rod except from Canada
The US International Trade Commission determined that revoking the existing countervailing duty order on carbon and certain alloy steel wire rod from Brazil and the existing antidumping duty orders on imports of that product from Brazil, Indonesia, Mexico, Moldova, Trinidad and Tobago and Ukraine would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time, but that revoking the existing antidumping duty order on imports of that product from Canada would not.
As a result of the Commission's affirmative determinations, the existing orders on imports of carbon and certain alloy steel wire rod from Brazil, Indonesia, Mexico, Moldova, Trinidad and Tobago and Ukraine will remain in place.
As a result of the Commission's negative determination, the existing order on imports of that product from Canada will be revoked.
The Trade Commission said that “With respect to Brazil, Indonesia, Moldova and Ukraine, all six Commissioners made affirmative determinations. With respect to Trinidad and Tobago vice chairman Shara L Aranoff and Commissioners Charlotte R Lane, Irving A Williamson and Dean A Pinkert voted in the affirmative; Chairman Daniel R Pearson and Commissioner Deanna Tanner Okun voted in the negative. With respect to Mexico, Vice Chairman Aranoff and Commissioners Okun, Lane, Williamson and Pinkert voted in the affirmative; Chairman Pearson voted in the negative. With respect to Canada, Chairman Pearson, Vice Chairman Aranoff and Commissioners Okun and Williamson voted in the negative; Commissioners Lane and Pinkert voted in the affirmative.”
Vale reaffirms plans to build steel mill in Pará
BNamericas reported that mining giant Vale is committed to building a new 2.5 million tonne to 5 million tonne per year steel mill in northern Brazil's Pará state regardless of whether it secures a partner.
Mr Roger Agnelli president & CEO of Vale said that the project is still in the feasibility study phase. He added that at the First Brazilian Steel Gathering organized by steel institute IBS in Rio de Janeiro.
Mr Agnelli said that "We are building a plant with or without partners. Northern Brazil also needs steel."
Mr Agnelli also mentioned that Brazil as the best place to produce steel today due to its abundant iron ore mines. Vale is the owner of the Carajas iron ore mine, which churns out some 100 million tonne per year.
Sidor hires 890 external workers - Report
BNamericas reported that Venezuelan steelmaker Sidor has added 890 subcontracted employees to its payroll as part of a collective contract agreement reached with the government in May.
Mr José Meléndez secretary of Venezuela's steelworkers union Sutiss told BNamericas that "This is to comply with the specifics of clause 97 of the collective contract which establishes that 1,300 employees must be incorporated within one month.”
He explained that however, the agreement does not call for all of Sidor's external workers to be contracted. Only the ones directly involved in the production process will be integrated.
In May, Sutiss signed the collective contract with Venezuela's government for employees at Sidor where they received a pay raise of VEB 53 per day (USD 24.70), among other improvements.
Nisshin Steel to join Nippon and JFE on pipe test data fabrication
Reuters reported that Japan's fifth biggest steelmaker Nisshin Steel Co said that it would make an announcement on improper testing for its stainless steel pipes at today.
Nippon Steel Corp and JFE Holdings Inc last week confirmed that that they had fabricated strength data on their steel pipes.
Malaysian builders call for removal of import duty on cement
Bizedge.com reported that Master Builders’ Association of Malaysia while has called for the removal of the 10% levy imposed on imported cement.
Mr Patrick Wong president of Master Builders’ Association of Malaysia said the levy could only mean higher costs for the construction industry. He said that “This 10% tax does not make sense, as it contradicts the Asean Free Trade Area rule, where cement will only be taxed at 5% and 0% come 2010.”
He added that “Portland cement, which is no longer under price control, makes up the bulk of cement used in the local construction industry, hence the removal of the levy would help reduce our costs. This is unlike the liberalization of the steel industry which does cover many categories of steel.”
Malaysian government has recently lifted the ceiling prices for cement.
Sumatec gets contracts from Petronas subsidiary
Bizedge.com reported that Sumatec Resources Bhd subsidiary Sumatec Engienering & Construction Sdn Bhd has secured two contracts totaling MYR 69.98 million from Petronas subsidiary Malaysian Refining Company Sdn Bhd for works related to the Melaka Refinery PSR-2 revamp project.
Sumatec said that the contracts involve the steel structure fabrication and erection and general civil, piling concrete foundation, pavement and other associated works.
Shandong imposes price control for thermal coal on Yanzhou
Reuters reported that China's No. 3 coal producer by market value Yanzhou Coal Mining Co Ltd announced that the government of its home province of Shandong had introduced a temporary price cut for some thermal coal in the next three months. The move aims to ensure power supply in the booming eastern province during the summer peak season for usage.
Yanzhou supplies Shandong's power generators with coal on a contractual basis but the government has told the province's coal mines to supply an extra 2.56 million tonnes each month in July, August and September at a CNY 10 per tonne discount to the June price, whereas the spot thermal coal price is around CNY 650 per tonne now, about 25% higher than the contract price
Yanzhou said that the lower price would apply to about 1.5 million tonnes of its production, implying a total reduction in revenue of about CNY 15 million yuan.
Yanzhou's total revenues of CNY 15.1 billion in 2006
Siemens plans to sell 3 part euro bond -Bankers
Reuters reported that German engineering conglomerate Siemens is planning to sell a benchmark three part euro bond.
A banker familiar with the sale said that it would consist of a long 3 year bond, a 6 year bond and a 10 year bond, with pricing expected later on Wednesday.
Deutsche Bank and Goldman Sachs are joint book runners, with BNP Paribas and Royal Bank of Scotland as joint lead managers.
The bond will be issued via Siemens Financieringsmaatschappij NV, guaranteed by Siemens AG.
US ITC to Institutes investigation on certain auto parts
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 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
2. LKQ Corporation of Chicago
3. US Autoparts Network, Inc of Carson
4. Jui Li Enterprise Co. of Taiwan
5. YCC. Parts Manufacturing Co Ltd of Taiwan
6. TYC Brother Industrial Co Ltd of Taiwan
7. Taiwan Kai Yih Industrial Co Ltd of Taiwan
8. TYG Products, LP of McKinney
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 and the ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation.
Newell Recycling to build a new shredder in Georgia
Newell Recycling announced that it has been granted final approval and received all necessary permits to build and operate a shredder facility at the Savannah in Georgia area. The facility is expected to be opened by the end of this year.
Newell Recycling of Savannah, LLC is expected to initially employ 75 people in Garden City, with plans for around 100 employees once the plant is fully operational. It said that the Savannah operation, the company’s third shredder plant and eleventh location overall will feature a 6000 horsepower Newell MegaShredder
The company held a grand opening at the 40 acre site the middle of last month. The company has made an initial investment of USD 17 million and has asked for no tax abatements. In keeping with the corporate tradition of environmental responsibility, Newell Recycling is preserving many specimen trees on the site, while planting nearly 100 new trees on the property.
(Sourced from Recycling Today)
Doosan Heavy bags major power plant equipment order from Thailand
It is reported that South Korea's Doosan Heavy Industries & Construction Co Ltd has secured an order worth USD 820 million to supply equipment for a coal fired power plant in Thailand.
Doosan Heavy Industries in a filling to stock exchange said that the contract from Thailand's Gheco One Co Ltd a joint venture between French utility Suez's unit and Thai developer Hemaraj will last until October 2011.
The 700 MW power plant is to be located in Thailand's Rayong Province.
USW signs pact with ArcelorMittal on health and safety issues
The United Steelworkers announced that it has reached a groundbreaking agreement with ArcelorMittal to improve health and safety standards throughout the company. The global agreement covers ArcelorMittal workers represented by unions throughout the world.
In addition to recognizing the vital role played by unions in improving health and safety conditions, the unprecedented agreement establishes universal minimum standards at every site the company operates. Many safety improvement measures such as plant specific joint management union health and safety committees are standardized, and training and education programs are instituted in order to immediately address current health and safety issues in North America and elsewhere in the company.
The agreement also included the creation of a joint management union, global health and safety committee that will target plants in the group in order to work to dramatically improve their performance.
Mr Leo W Gerard president of USW International said that "This agreement is an obvious signal to companies everywhere that unions are vital to safe and healthy workplaces. It is the most important issue for our members and we are pleased to be able to come to this agreement with the world's number one steel company."
Mr LN Mittal CEO of ArcelorMittal said that "This agreement will build on the work that we have already undertaken in the company. Health and safety is our number one priority and in signing this agreement we hope to set a new benchmark for the industry."
The USW represents 850,000 workers in North America. Approximately 20% of them work in the steel industry.
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.
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.
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.
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.
Saipem receives offshore contract for Sequoia field
MEED reported that Burullus Gas Company has awarded Italian oil field services company Saipem a contract for the development of Egypt's Sequoia field, located offshore from the Nile River Delta.
The contract follows the award by Burullus of a USD 400 million offshore expansion package to Saipem in August 2006 and a contract to provide offshore drilling services on its West Delta Deep Marine concession in the Mediterranean in December 2006.
Saipem said that the contract covers the engineering, procurement, installation and commissioning of the sub sea development system for the Sequoia field in water depths of 70 to 570 meters, along with a new 22 inch gas export pipeline. The work will be completed in the second half of 2009.
Burullus is a JV of the UK's BG Group, Egyptian Natural Gas Company and Malaysia's Petronas.
(Sourced from MEED)
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.
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.
Harbor Engineering and Hyundai Industry to submit bids for Ras al Zour project
MEED reported that two companies have submitted bids for the 2,400MW Ras al Zour captive power plant project. The bidders for the lump sum turnkey engineering procurement and construction contract are China Harbor Engineering Company and South Korea's Hyundai Heavy Industries.
China Harbor plans to procure six 350 MW turbines from its compatriot Harbin Turbine Company for the plant, while HHI would use four 600 MW turbines from Siemens China.
The 54 month long contract also includes a 3.4 million gallon a day reverse osmosis desalination plant. An award is expected by the end of July 2008.
The USD 3 billion oil fired captive power plant will serve an integrated aluminum complex at Ras al Zour on the Gulf coast. Saudi Arabian Mining Company and Canada's Alcan are the clients.
(Sourced from MEED)
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.
OPEC to invest USD 160 million 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.
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.
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.
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.
L&T may bid for new Muscat airport project
It is reported that Larsen & Toubro Limited is planning to bid for building a new airport in Muscat.
Mr KV Rangaswamy president of L&T's construction division said that "The government of Oman is in the process of inviting bids and we will be submitting bids. The contract could be worth up to INR 30 billion. We will look for foreign airport modernization contracts and Greenfield airports as and when they come up."
L&T, which has built two new airports in India, is also involved in modernizing the Delhi and Mumbai airports.
Muscat's current international airport can handle 4.2 million passengers, while the new one planned 15 kilometers away would have a capacity for 12 million passengers that would eventually go up to 48 million.
6 killed in under construction building collapse in Ajman
PTI reported that the bodies of six Indian workers, killed when an under construction building collapsed on them in the UAE, have been pulled out. Police said that the rescue units with the aid of sniffer dogs recovered the bodies of all the six Indian workers who went missing after the collapse.
The victims were working with Seidco General Contracting, which was building the Laguna Beach Hotel in Ajman emirate of the UAE. The accident occurred on Monday when the workers had gone to plug a leakage in the concrete ceiling of the basement of the building.
Police said that "The workers, all carpenters, were trying to add more support to the columns that hold the ceiling when the freshly laid concrete and steel pipes collapsed.”
Colonel Ali Abdullah Alwan chief of Ajman Police said that 11 officials of the construction company have been detained for questioning.
Essar eyeing for major investments in Pakistan
It is reported that Essar Group has expressed its keenness to invest in Pakistan's economy, especially in the energy, steel and shipping sectors. The offer was made by Mr Sashi Ruia chairman of Essar Group during a meeting with Mr Yousuf Raza Gilani prime minister of Pakistan, who said Pakistan is open to business and foreign direct investment.
Mr Gilani said that almost all sectors of Pakistan's economy allow FDI, which is fully protected under the country's laws and there is no discrimination between foreign and local investment as no government sanction is required in either case. He added that "Since Pakistan is deficient in electricity, it would welcome investment in power generation, especially in developing the Thar coal reserves."
Mr Ruia told Mr Gilani that Essar group has made investments across the world and would be keen to invest in energy, steel and shipping sectors.
Mr Asif Ali Zardari co chairman of Pakistan People's Party, whose party heads the ruling coalition, has been pushing for greater business ties with India to drive economic growth within his own country. He recently offered to set up economic zones along the border with India and to source gas and fuel supplies for India. Mr Zardari has also suggested that India and Pakistan could collaborate to exploit the Thar coal reserves in Sindh province for generating power that could be supplied to both countries.
Contractors halt projects to protest rising costs in Turkey
Today's Zaman reported that contractors affiliated with the All Contractors Federation have halted their ongoing projects to protest sharp hikes in steel and iron prices in recent months.
Mr Tahir Tellioğlu president of TMF said that the contractors who are part of the federation, which has around 30,000 members in eight cities, had stopped their construction projects on June 1st 2008 and would not resume until June 15th 2008.
He added that they had decided to halt ongoing projects at a special general assembly meeting as a reaction to the neutral stance adopted toward the high prices by both the ruling and opposition parties.
He also said that the contractors are also protesting recent moves by the Housing Development Administration of Turkey, which they say is becoming a professional company that aims to maximize profits, contrary to its major duty of producing low cost houses for low income groups.
Dana Gas and Emirates launch common user gas pipeline
Dana Gas and Emirates General Petroleum Corporation have jointly inaugurated Middle East's first common user gas pipeline, located in Sharjah.
Dana Gas and Emarat each have a 50% stake in the construction, ownership and operation of the pipeline. Phase I was completed in May 2006 and has since been delivering gas to the SEWA power station at Hamriyah.
The main pipeline of the joint Hamriyah Gas Pipeline Project is a 48 inch gas pipeline that connects the Sharjah gas hub at Sajaa to the fast growing industrial area at Hamriyah and covers a distance of 32 kilometers, with a capacity of 1 billion cubic feet per day. The new 48 inch pipeline is now ready to receive gas supplies from Sajaa and deliver them to the premises of the 3 end users at Hamriyah.
Mr Rashid Al Jarwan GM of Dana Gas said that "This strategic partnership has set an example for further regional co operation."
Mr Jamal Abdul Rahman Al Medfa acting GM of Emarat said that the project has a great deal of importance for Emarat and is in line with the company's strategic plan.
It may be noted that Dana Gas and Emarat, along with the 3 end users namely Federal Electricity & Water Authority, Sharjah Electricity & Water Authority and Dana Gas affiliate Crescent Natural Gas Company, agreed in January 2006 to build and use the pipeline.
Steel price caps and cement export bans effective in Egypt
Daily Star Egypt reported that Mr Hisham Talaat Moustafa chairman of General Section of Real Estate Investment has lauded Egypt government’s recent decisions taken to cool rapidly spiraling prices.
Mr Moustafa said that "I believe the government introduced effective procedures to contain the relentless leaps in prices of construction material including the cement export ban and steel price caps."
He pointed out that after the government banned cement exports, prices slid back to around EGP 500 per tonne as compared to the previous EGP 700 to EGP 800 per tonne. He added that "The same is true for steel, placing price limits on wholesalers and retailer has helped push prices down."
It may be noted that, since the beginning of the year, a series of upsurges raised construction costs in Egypt some 30% pressured by continued spikes in input costs such as iron ore, scrap metal, billets and coal.
Record high price leaps brought steel prices to roughly EGP 7,800 per tonne and cement to nearly EGP 800 per tonne. Hikes in production prices have prompted the ministry of trade & industry to ban cement exports in late March 2008. The government also amended last April customs duties and lifted tariffs on cement and steel.
Mr Moustafa said that GSREI would not overlook escalating prices in steel and cement that will eventually affect not only the building and construction industries, but also domestic economy and society in general. He particularly named Al Ezz Steel Rebars prices as being cheaper than international ones despite angry accusations the heads of the two companies exchanged in April over their respective annual financial results.
Aramco raises LPG prices to record high for June shipment
Saudi Aramco has raised prices of cargoes loading in June 2008 to a record after global crude oil benchmarks climbed to all time highs last month. It increased the price of propane cargoes by USD 50 or 6% MoM from a month ago to USD 895 a tonne.
Aramco raised the price of butane by USD 60 or 7% MoM to USD 920 a tonne from a month earlier.
Aramco sells LPG under one year contracts and individual cargoes for immediate delivery. The cargoes are sold free on board, requiring the buyers to pay for shipping costs.
Turkey may re invent coal if oil and gas prices continue to soar – Report
Mr Hilmi Guler energy & natural resources minister of Turkey said that Turkey might re invent coal if oil and natural gas prices continue to soar. He added that "Not only developing but also developed countries may be affected by the rising oil prices."
Mr Guler underlined importance of other energy resources such as wind, solar, water, geothermal and energy efficiency and said that Turkey would use those resources. He added that Turkey is working on new projects on energy independence that might be an example for other countries.
Kuwait plans to produce 1 BCFD of gas by 2015
Mr Mohammad al Olaim oil minister of Kuwait has declared that Kuwait is to start its production of free gas from its gas fields. He added that production will start with a 50 million cubic feet per day of non associated gas and will increase to 175 million cubic feet 10 days later.
He said that Kuwait ultimately plans to boost daily production to 1 billion cubic feet per day of gas by 2015. Plans had been to start in late December 2007, but were stymied by technical hurdles. He added that besides free gas, Kuwait will also be producing 50,000 barrels per day of light oil and condensates.
In March 2006, Kuwait announced the discovery for the first time of 35 trillion cubic feet of free natural gas and about 10 billion barrels of light oil in its northern oilfields.
DNV wins 50% market for new vessels on order
It is reported that classification agency DNV Maritime has won 50% of Middle East and Indian market for new vessels on order or being built. It sets classification rules for ships, verifies compliance and issues survey reports and certificates.
Cash rich oil companies are driving the demand for offshore support vessels of various types, of which DNV has classified 300 currently on order worldwide.
Mr Eivind Grostad senior VP & regional manager of DNV Maritime said that "The regional offshore sector is exceptionally buoyant. We have 125 offshore support vessels currently being built to DNV class in local shipyards such as Drydocks World, Seaspray and Nicocraft as well as at Hindustan, Bhrati and Mazagon on the Subcontinent."
Besides the offshore support vessels, DNV has received a number of recent orders from local owners that include very large crude carriers for Vela International, chemical carriers for the United Arab Chemical Company and bulk carriers for Shipping Corporation of India. And the Abu Dhabi National Tanker Company has ordered several Aframax tankers.
Oman inks MoU with Port of Salalah for container berths
Oman Observer reported that Omani government has signed a MoU with Port of Salalah for the construction and operating of 3 additional deepwater container berths, which will give the port a total of 9 berths totaling 3,555 meters in length.
Mr Gary Lemke CEO of Port of Salalah said that "The signing of this MoU is a clear indication of the government's intent to be at the forefront of regional port development and will enable the Port of Salalah to keep up with the growing demands and allow us to meet our customer expectations as a modern and efficient terminal."
As per report, berths 7, 8 and 9 are the first stage of terminal two and will encompass 1,350 meters quay wall and add additional 3 million TEU to the annual capacity. Berth 7 is expected to be operational in the first quarter of 2011, with berth 8 and 9 scheduled for completion in 2012.
Terminal 1 comprises 6 berths along 2,205 meters of linear berth operated with 17 super post panamax gantry cranes. Additional 8 super post panamax cranes and 4 mobile harbor cranes are on order. With the delivery of the new equipment, the capacity of berth 1 to 6 increases from 4.5 to 6 million TEU. The completion of Berth 7 to 9 will take the annual capacity of the port to 9 million TEUs with a total berth length of 3,555 meters.
Lafarge and Asiacell plan major investment in cement plant in Iraq
Reuters reported that France's Lafarge and Iraqi partner Asiacell is planning to invest around USD 550 million to raise cement capacity in Northern Iraq to help meet a shortage in the region.
Mr Faruk Mustafa Rasool chairman of Asiacell said that Lafarge already has a 65% stake in an existing 7,500 tonne a day plant at Bazyan in Iraq's Kurdish region. He added that "We will build a second line with capacity of 7,500 tonnes a day and the cost would be similar to the USD 550 million spent to build the first line."
Iraq has been working for the past 3 years to bring foreign investors to invest as much as USD 2 billion in its cement factories, but political interference and instability has delayed the effort.
The Iraqi cement industry's total annual production, from 17 factories, is between 4 million and 5 million tonnes, a fraction of its capacity of 25 million tonnes. Iraq imports around 6 million tonnes a year of cement from neighboring Syria and Lebanon to cover consumption.
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.
Chinese HRC export offers shooting up
It is reported that Chinese steel makers have shot up export offer for hot rolled steel coil again citing the robust domestic market prices. The substantial rise in ex works price for Q3 is believed to be the major reason for this increase.
Steel producers have been raising Q3 price successively. Wuhan Steel lifted its HRC price by CNY 400 per tonne and there is an extra of CNY 100 per tonne for thickness under 3.5mm and width above 1300mm.
On Shanghai market, price for commercial 4.75mm to 12mm HRC in 1500mm width has risen to CNY 5850 per tonne to CNY 5900 per tonne and that for 1800mm wide at CNY 6200 per tonne. SPHC 2.5mm HRC goes at CNY 6500 per tonne.
Most export offers for commercial 4.75mm to 12mm HRC has exceeded USD 1000 per tonne FOB this week. A tier two steel maker in North China is offering its SS400 HRC at USD 1030 per tonne FOB up by USD 40 per tonne to USD 50 per tonne from mid May.
(Sourced from MySteel.net)
Chinese steel majors adjust production for quake relief
It is reported that in order to meet the urgent demand for galvanized plate and color coated sheet for building movable houses in the quake hit areas, major steel makers in China have actively adjusted their production, focusing on producing color coated sheet.
China's largest steel maker Baosteel has put all of its three color coated sheet production line into full load production, producing 600 tonnes of sheets daily on average, the peak level of the production line. It has suspended the export of color coated sheet and maintained the price unchanged to ensure the supply, despite of the big rise of raw materials and fuels. In a bid to not touch off a price wave of rolled steel, Baosteel Group has also decided to delay the release of its price adjustments in the coming quarter, which had been scheduled for May 20th 2008.
Another large steel maker, Wuhan Iron and Steel Corporation is working on producing 20,000 tons of color coated sheets to support the reconstruction of the quake hit areas.
Meanwhile, Panzhihua Iron and Steel Corporation, the large steel make located in Sichuan has gradually resumed production since May 22nd 2008. With the gradual recovery of Pangang's production capacity, the price hike of rolled steel triggered off by the quake in Sichuan will be obviously checked in the near future.
Panzhihua Steel to get loans to rebuild quake affected zones
Bloomberg reported that Anhui Conch Cement Company and Panzhihua Iron & Steel Group will receive loans from Bank of China Ltd to aid rebuilding efforts in areas stricken by the country's strongest earthquake in 58 years.
China third biggest bank said formal agreements for credit lines will be signed tomorrow, Beijing based Bank of China but terms weren't disclosed.
Conch company officials including Executive Director Mr Guo Jingbin were in a shareholder's meeting this morning and unavailable for comment.
The report added that Panzhihua Steel southwest China's biggest steelmaker had to halt production at two units after the May 12 earthquake damaged factories and killed workers.
Bank of China said on May 26th 2008 granted a CNY 30 billion credit line to Deyang, Sichuan based Dongfang Electric to restart production after the earthquake caused CNY 5 billion of damage at one of its factories.
Chinese pipe exporters to quit US market
It is reported that most Chinese pipe exporters have to give up the US market as US Department of Commerce announced to impose astonishing retaliatory duty.
DOC has decided to levy a 700% import duty on standard pipes from China including a record high 615% countervailing duty. China's Shuangjie Group got a CVD of 615.92% besides an anti dumping duty of 85.55%. DOC also announced to impose separate rates on other 31 Chinese exporters.
The International Trade Commission is scheduled to make its final injury determination on or about July 14th 2008. However, as the CVD is based on Chinese government, enterprises can hardly prepare any defense.
Mr Zhong Qing chief counsellor of Beijing WTO Affairs Center said CVD investigation mainly involves the government, including taxation, land use, infrastructure and so on and China is less experienced in this aspect,
US said it decided to impose the high duty because these companies withdrew their participation and did not cooperate to the best of their ability in these investigations. But most Chinese enterprises believe further responses would be of no avail, given the US unreasonableness.
Valin Lianyuan to produce plate for train carriage
It is reported that Valin Lianyuan Iron and Steel has successfully produced 300 tons of plate for train carriage whose all performances can meet the user’s demand, it indicated that the company has the ability to produce train carriage plates by batch.
The plate for train carriage produced by Valin Lianyuan Iron and steel got the authentication from the Certification Center of Ministry of Railway, in February this year.
Valin Lianyuan Iron and Steel joins Baosteel, Pansteel, WISCO and Anshan Steel, who have this production license.
At present, the company is organizing technology and research personnel to improve the product’s performance, and make preparation for large batch production.
Baosteel joins R&D center of Colorado Mining Institute
It is reported that recently, Baoshan Iron and Steel formally joined in the United States Colorado Mining Institute’s advanced steel technology and product research center and become the first domestic steel enterprise that has joined in the center.
The center was established in 1984, with focus on the steel production and technology, has close cooperation with many global well known companies. The members are mainly from steel mills, auto plants, heavy equipment companies, suppliers etc including Mittal, POSCO and United States AK etc.
After joining into the center, Baosteel can share its research results, equipments and other resources, as well as participating in the research and development projects and undertaking some research work.
Fushun Special Steel buys fixed assets of group
It is reported that Fushun Special Steel Company purchased fixed assets including Fushun Hongji Refractory Company and environmental reconstruction project of Fushun Special Steel Corporation.
The purchase price is based on the assessed net capital. As of October 31, 2007, the assessed value in the capital purchase is CNY 47,311,490.09. Fushun Special Steel spends CNY 47.311 million to buy the above capital.
Tiantie takes trial for auto crossbeam steel TT510L
It is reported that Tiantie successfully produced 50 coils of TT510L auto crossbeam coiled sheet with a total weight of 1,087 tonnes.
As per report there are four specifications including width of 1.35 meter and 1.34 meter and depth of 6.5mm and 6.75mm. After the examination by technology center the capacity of is better than TT510L and is approaching to TT610L.
Auto crossbeam steel is one of the popular types of steel in the market and has higher profit margins and technical difficulty compared with the past hot-rolled products.
Brazilian Espirito Santo governor Mr Harton visit Baosteel
It is reported that Mr Paul Harton Governor of Espirito Santo, Brazil recently visited Baosteel. Mr Xu Lejiang Chairman, Mr He Wenbo President, Mr Zhao Kun Vice President and Mr Dai Zhihao etc of Baosteel Group Corporation met the delegation. Baosteel also inked "Letter of intent on shipping terminal project" with VALE which accompanied the delegation
As per report, the business visit of the delegation led by Governor Mr Harton to Baosteel was for the purpose of in depth exchange with Baosteel on the construction of Baosteel Victoria Iron & Steel Company Limited and its supporting shipping terminal, etc.
The "Letter of intent on shipping terminal project" specifies that the shipping terminal project after its construction is completed will provide raw material loading and unloading and product delivery etc service for Baosteel Victoria Iron & Steel Company Limited.
During the meeting, Mr Xu Lejiang said that thanks to the support of Brazilian Government and Espirito Santo Government, Baosteel Victoria Iron & Steel Company Limited is progressing in an orderly way. Baosteel appreciates very much the support given by Espirito Santo to the project of Baosteel Victoria Iron & Steel Company Limited. The development of this project will not only bring opportunities to Baosteel but also contribute to the development of local Brazilian economy.
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 power supplies in general will meet demand that is expected to grow around 12% from last year, though shortages will occur in some areas.
Mr Yu said shortfalls will emerge in east China, central China and some provinces in the sout