SAIL RSP posted record output in first quarter

It is reported that Steel Authority of India Limited’s Rourkela Steel Plant has ended April to June 2008 quarter with the best ever production figures of hot metal, crude steel and saleable steel.

During April to June 2008 quarter, RSP produced 0.544 million tonnes of hot metal up by 8% YoY, 0.512 million tonnes of crude steel up by 11% YoY and 0.492 million tonnes of saleable steel up by 13% YoY.

In June 2008 alone, RSP's output of hot metal stood at 1, 84,325 tonnes, crude steel at 1, 73,390 tonnes and the production of total saleable steel at 170,176 tonnes.

RSP also achieved its best ever performance in finishing units like hot rolled coils, hot rolled plates and cold rolled non oriented silicon steel during April to June 2008 quarter. It recorded a production of 383,901 tonnes of hot rolled coils out of which the figure for hot rolled coils for sale stood at 187,479 tonnes. Production of hot rolled plates and CRNO was 76.276 tonnes and 20,923 tonnes respectively.

RSP also posted an impressive growth in the production of other finished products like pipes from both ERW pipe plant and SW pipe plant as well as cold rolled products like CR sheets and coils, tin plates and galvanized sheets. Following the completion of capital repairs of major units, RSP is now geared on the growth mode aiming for significantly higher targets in all areas of operation as compared to 2007-08.

Long product prices start recovering in Mumbai

It is reported that long product prices at Mumbai started recovering on July 9th after recent downslide despite weakness in feed materials

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

TATA Steel makes it to Fortune 500 list

BS reported that TATA Steel has made it to the Fortune 500 list even as India's largest corporate Reliance Industries climbed 63 places up to 206th rank. Companies qualify to the list on the basis of their revenues.

The report added that TATA Steel has also been named as the company with the highest revenue growth of over 353% YoY due to the consolidation of Corus' revenues with its balance sheet. Among all the Indian companies, Mr Mukesh Ambani of Reliance Industries is ranked second after government owned Indian Oil. Bharat Petroleum, Hindustan Petroleum, ONGC and State Bank of India are the other Indian companies that figure on the list.

US based retail chain Wal-Mart continued to remain the world's biggest corporate with revenues of USD 378 billion. Exxon Mobile and Royal Dutch Shell are also at the top of the global list with revenues of USD 373 billion and USD 355 billion respectively.

Long product prices continue on downward trend in Chennai

It is reported that long product prices continued on downward trend at Chennai

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT
Change is DoD

The slide in long product prices is supported by continued weakness in HMS

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT
Change is DoD

(Sourced from www.steelprices-india.com)

POSCO and ArcelorMittal to miss project schedules - Report

BL reported that, two of the largest steel projects in India namely ArcelorMittal in Jharkhand and POSCO in Orissa, are unlikely to take off before 2010 because both the projects have not been able to acquire any land, either for their plants or for their mining operations.

According to official sources, a major cause of delay in land acquisition is due to objections raised by NGOs at public hearings. As things stand now, the projects will only make some progress in the next 1 year, hence the companies will not be able to stick to their original production targets.

The source said that "It will take 4 years from the beginning of ground preparation till the new Greenfield plant commences production. So even if the company begins work today it will be mid 2012 when the production will start."

It may be noted that the MoU between POSCO and Orissa government was signed in June 2005, while the ArcelorMittal entered into an agreement with the Jharkhand government in October 2005. After inking the MoU, POSCO had announced that it would start constructing the plant in 2007 and would commence production in 2010.

Ship plate cuttings at Alang start price recovery

It is reported that plate cuttings originating from ship breaking operations ate Alang in Gujarat, used for Rerolling, have started price recovery after loosing huge grounds in first 8 days of July.

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT
Change is DoD

(Sourced from www.steelprices-india.com)

Mr Baalu reviews the performance of Ennore Port

It is reported that the Ennore Port Limited has planned a total investment of INR 2,700 crore in the Eleventh Five Year Plan on various new projects under the National Maritime Development Program. This includes the private investment to the tune of INR 1,300 crore on a world class container terminal of one kilometer long continuous Quay capable of accommodating three mainline vessels of 8,000 TEUs.

Mr Thiru TR Baalu Union Minister of Shipping, Road Transport & Highways directed the EPL that the container terminal project should be pursued on a fast track by the Port so that the first container terminal in the Port comes into operation at the earliest.

Keeping in view the new iron ore terminal under construction, the Minister advised the EPL to coordinate with the Southern Railways for the early commencement of the new Puthur-Atthipattu broad gauge railway line approved by the Government recently at a cost of INR 446 crore, for which the EPL would contribute INR 223 crore as its share of 50%.

The Minister was informed that Phase-I capital dredging undertaken by the Ennore Port currently at an investment of INR 91 crore has progressed 45%. Under this project, the berth area of the three new BOT projects, viz., marine liquid terminal, coal and iron ore terminals, will be deepened to 15 meters.

The EPL has also planned to invest INR 440 crore for providing a depth of 16 meters at its new container berths and also to further deepen the iron berth to 18 meters along with enhancing the depth in the basin to 19 meters and the entrance channel to 20 meters.

Mr Chaturvedi new CMD of Power Grid Corporation

Hindu reported that Power Grid Corporation has got a new man at the helm of affairs with Mr S K Chaturvedi Director (Personnel) of NHPC taking over as its chairman & MD next month.

Mr Chaturvedi has held other important positions earlier also in Power Grid, Steel Authority of India Limited and National Thermal Power Corporation.

WB to allow Chinese firms for power plants EPC contracts

IANS reported that West Bengal would offer engineering procurement and construction contracts to any company which emerges as the lowest bidder irrespective of the country of origin of the winner as long as it adheres to specifications.

Mr Mrinal Banerjee state power minister said that "We will offer EPC contracts for installing power plants to any company that turns out to be the lowest bidder irrespective of the country of origin of the winner as long as they adhere to specifications. We will not differentiate between China’s DongFang or for that matter any Chinese or Russian or US-based company. We have now decided to set up 4 super critical units of 660 MW each, 2 each at Bakreshwar and Sagardighi."

Mr Banerjee said that "It is not that Chinese equipments are inferior because they emerge the lowest bidder or because their equipment break down during installations. There have been instances where Bharat Heavy Electricals Limited’s critical components have also broken down or there has been tube leakage in units where equipment had been supplied by this company."

West Bengal Power Development Corporation Limited’s new unit at Sagardighi is still un operational as cracks developed in the turbine blade. The component had to be sent to China, where it was manufactured. Chinese company DongFang Electric Corporation is building this project.

Meanwhile, Central Electricity Authority has formed a technical committee to look into the quality aspects of plants and equipment supplied by Chinese equipment suppliers like DongFang Electric Corporation and Shanghai Electrical for setting up power plants in India.

Directory of Autoparts Makers in India

'Directory of Autoparts Makers in India' is one of the top sources of information available on auto part makers in India. It is one of the most comprehensive and accurate directory of auto part makers in India.

Published in May 2008, 'Directory of Autoparts Makers in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian auto part makers. This report will be extremely useful to businesses that deal specifically with companies in auto part makers segment.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian auto part makers, this directory will save you time and effort in finding the information you need.

This report will enable you to profile auto part makers in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

This report covers name and product details of 431 of Indian auto part makers in alphabetical as well as location wise order.

Look at the information you'll get in the 'Directory of Autoparts Makers in India'

• Company name -431 entries
• Address-431 entries
• Phone number-431 entries
• Fax number -418 entries
• Email -403 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 241

Price: USD 625 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Chhattisgarh will generate 40,000 MW a year - Mr Raman

Mr Raman Singh chief minister of Chhattisgarh recently announced that Chhattisgarh will earn INR 100 billion per annum from power sales from 2011 when the state's power generation will reach a record 40,000 MW.

Mr Singh added that "Chhattisgarh has signed MoUs with various companies for setting up power plants in the state to produce 42,000 MW a year." He added that the new plants would begin production by 2011.

He further added that "Chhattisgarh has potential to feed 35,000 MW to 40,000 MW power to India for the next 100 years based on its present coal reserves. The state will start selling power to other states by 2011 and that will help it earn INR 100 billion per annum."

Mr Pandey receives United Nations Public Services Award

ET reported that Mr RS Pandey Union Steel secretary was given the United Nations Public Services Award in New York in the last week of June 2008.

He earned the laurel by successfully implementing a community enabled program to improve delivery of public services in Nagaland where he was chief secretary in 2002 to 2004.

Indian Railways Q1 freight traffics up by 9.42% YoY

Indian Railways have carried 202.99 million tonnes of revenue earning freight traffic during April to June 2008 quarter up by 9.42% YoY as against 185.51 million tonnes actually carried during April to June 2007 quarter.

During the month of June 2008, the revenue earning freight traffic carried by Indian Railways was 65.26 million tonnes up by 7.81 YoY as against 60.53 million tonnes carried during June 2007.

Indian Steelmakers Directory 2008

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008' is one the top sources of information available on steel making companies in India! 'Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferroalloys, consumable suppliers, raw material sellers, equipment makers and others.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order.

Look at the information you'll get in the 'Indian Steelmakers Directory'

• Company name -723 entries
• Address-723 entries
• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Update on Pipavav Shipyard plans

BL reported that Pipavav Shipyard is planning to hire around 50 Japanese professionals for its upcoming shipyard in Gujarat and has roped in Mr Mikito Shirai as head of planning & production engineering. He was a senior engineer at IHI, one of Japan’s largest shipbuilding companies. There are four senior Japanese managers as well.

Mr Ray Stewart CEO of Pipavav Shipyard said that the additional 50 Japanese professionals will be mainly working on the shop floor. He added that "We have not decided to hire the Japanese professionals it yet. If we did, it will purely be a temporary measure to help during the initial phase of production and to assist with training of our permanent staff."

Mr Stewart said that the name of Pipavav Shipyard may be changed to highlight the bigger strategy of the company than just building ships. The name change is still an embryonic idea and we have not progressed yet. The business strategy is to have 4 legs to stand on commercial shipbuilding, ship repair, offshore fabrication and naval ship new building and repair.

Located on the west coast of India, adjacent to major sea lanes between the Persian Gulf and Asia, the construction of the INR 2,371 crore Pipavav Shipyard is likely to be completed by October 2008. On completion, the shipyard is expected to have the capacity to build and repair vessels of up to 400,000 DWT. It will be capable of ship construction and repairs for a range of vessels of different sizes and types, as well as the fabrication and construction of products such as offshore platforms, rigs, jackets and vessels for oil and gas companies.

According to the company’s draft red herring prospectus filed with SEBI, Pipavav Shipyard has agreements with 3 international ship owners for the construction of 26 Panamax bulk carriers of 74,500 DWT each for delivery from 2009 to May 2012, including options for 4 ships which have been exercised.

Hinduja Foundries to raise INR 250 crore for CAPEX

BL reported that Hinduja Foundries Limited is planning to raise INR 250 crore to support its CAPEX program spread during the next 18 to 24 months. It would raise the money either through equity or other options, including GDRs, depending upon market conditions.

Hinduja Foundries has also drawn up an INR 350 crore investment plan to enhance capacity from the present 152,000 tonnes to 236,000 tonnes in the next 2 to 3 years. It reported a turnover of INR 451.42 crore in 2007-08 fiscal as against INR 395.24 crore in the previous year.

Indian shipping industry seeks cut in taxes - Report

ET reported that the objective of imposing a tonnage tax instead of corporate tax on the Indian shipping industry may have been lost. As per report, a host of new taxes including fringe benefit tax and service tax have increased the tax payouts of shipping companies diluting the benefits of shifting from a corporate tax regime to a tonnage tax regime.

Under the tonnage tax system, shipping companies pay a 3% tax on book profits as opposed to the earlier system of a 33% corporate tax. The shipping ministry has asked the finance ministry to reduce service tax and FBT. It has also asked the ministry to withdraw the corporate tax on tonnage tax reserve. Even though the industry is supposed to pay 3% tonnage tax, it lands up paying 9% tax due to FBT and service tax which contribute additional 5% to 6%.

The government had introduced tonnage tax in India in 2004 in line with international practices replacing the corporate tax structure and reducing the tax liability of the industry. However, it had made it mandatory for the industry to pool in 20% of its book profits towards a reserve for fleet expansion and modernization called the tonnage tax reserve.

In addition, the government charges a minimum alternate tax on profit from sale of ships. Since buying and selling of ships is an integral part of the business, the industry has been pleading for treating this income as part of tonnage tax income and therefore paying tonnage tax.

Indian Steel: Opportunities and Strategic Options

CONTENT

Topics
1. Indian steel: an introduction to its structure and growth
2. Capacity: crude and finished steel: growth trends by major producers and segments.
3. Production trend analysis, crude and finished steel, for major producers and segments.
4. Consumption trends by products and in different regional markets.
5. Detailed status of the steel market in India, by products and with specific details such as size and shapes for HR Coils, CR Coils and Sheets, Galvanized sheets, Rebars, Sections, Wire Rods and Plates.
5. New investments in steel: latest status of the projects.
6. Expected production of steel year wise till 2015, by products and different scenarios.
7. Latest forecasts of annual steel demand by products till 2020.
8. The alloy and stainless steel market: trends in investment, production, consumption.
9. Forecast of alloy and stainless steel demand till 2020.
10. Specific opportunities in alloy and stainless steel.
11. Steel price trends and short term forecasts.
12. Costs of production of steel in India: past trends and forecasts.
13. The iron ore factor in Indian steel. Advantages and opportunities.
14. Details of captive mines with Indian steel producers and new prospecting and mining leases granted to them.
15. Coal and energy issues for the Indian steel industry: how is the industry placed today?
16. What is the impact of the rise in raw materials prices on major Indian companies or segments of the industry?
17. How are the merchant pig iron and sponge iron producers shaping up?
18. What is the steel scrap scenario? Estimates of domestically generated scrap and imports.
19. What are the M&A opportunities in Indian steel?
20. India’s external trade in pig iron, sponge iron, steel, iron ore and coal. What is the future for each of them?
21. Strategic Options and Recommendations

130 pages with more than 70 charts and tables

Scheduled for release on 1st September 2008

Price on release: USD 5000 or equivalent in INR
Advance booking price: USD 4000 or equivalent in INR (valid till 31st July 2008)

You can order your copy to reports@steelguru.com

Foundation stone for Daikin AC equipment unit in Rajasthan

Projects Today reported that foundation stone for Daikin Air conditioning India's air conditioning equipment production base at the New Industrial Complex Majrakath in Rajasthan is scheduled for July 10th 2008.

The project will be implemented in a phased manner and will manufacture multi split type commercial use air conditioning equipment and chillers. The first phase will entail an investment of INR 160 crore and will have a production capacity of 20,000 units of variable refrigeration volume and 1,800 chillers annually.

Rajasthan State Industrial Development & Investment Corporation has allotted 40 acres of land for the project.

The plant is likely to be completed and commence production by September 2009.

RIL inks agreement with Perupetro

PTI reported that Reliance Industries Limited has signed an agreement with Peru's Perupetro to jointly explore for oil and gas in Peru.

As part of the deal with Pan Andean, Reliance will incur all exploration costs through commercial discovery. Following a commercial find of an agreed size, Pan Andean will reimburse Reliance for its share of the exploration cost.

Mr Cesar Gutirrez president of Perupetro said that "We will be formalizing the agreements reached in these past weeks. Also, in the coming days we will provide details of the joint exploration venture which focuses on areas that hold oil and gas potential." He added that the two firms are likely to bid in a Peruvian government auction of 22 oil blocks with hydrocarbon potential.

Mr PMS Prasad CEO & president of Reliance Industries said that it had signed an agreement to take 90% in block 141. Pan Andean will hold the remaining 10% in the block.

Earlier this year, Reliance acquired a 90% stake in an oil block in the region of Puno in Peru from Irish company Pan Andean Resources.

TATA Power may divest assets to part finance CAPEX

BL reported that TATA Power may consider divesting various holdings or assets to part finance its capital expenditure program. TATA Power has said that it will bring in own funds to the extent of INR 6,000 crore. Of this, internal accruals will account for INR 2,900 crore and preferential issue to TATA Sons INR 1,900 crore.

TATA Power’s subsidiaries include Nelco, whose business is structured around automation and control and network systems with an operating income of INR 197 crore, TATA BP Solar, in which TATA Power has 49% and BP has 51% with March 2008 revenue of INR 910 crore and a transmission joint venture with Power Grid Corporation of India.

The debt portion of INR 18,000 crore will come from domestic banks, financial institutions and foreign loans through external credit agencies and multi lateral agencies such as Asian Development Bank and International Finance Corporation. IFC has extended an INR 1,800 crore 20 year loan to TATA Power for its 4,000 MW ultra mega power project at Mundra in Gujarat. Likewise, ADB has provided a loan of INR 350 crore for TATA Power’s wind power project in Maharashtra.

TATA Power has projected its installed generation capacity to go up from 2,389 MW to nearly 13,000 MW by March 31st 2013. Most of this capacity addition will come through between 2010 and 2013. It hopes to complete the Mundra ultra mega power project by 2012 as against 2014 according to bid conditions. It has achieved financial closure for the INR 17,000 crore project with lenders including the IFC and ADB.

According to the presentation, it has qualified for about 8,000 MW of bidding based generation projects while its captive power capacity will grow in tandem with TATA Steel’s requirements. It is exploring opportunities in both the independent power producer and merchant power producer models depending on coal mine allocation, besides looking at possibilities of setting up coal-bed methane projects. It will also increase its generation from renewable energy sources.

TATA Power has acquired equity interest in coal mines in Indonesia and has incorporated a special purpose vehicle in Singapore to own ships to meet its shipping requirements mainly coal and also for trading in fuels.

Daily steel prices at the click of mouse

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

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

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

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

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

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

Nippon Steel to adjust Oita production for BF repairs

Nippon Steel Corp is contemplating starting an adjustment of production from its Oita works in October while stockpiling slabs there to prepare for repairs on the Oita No1 blast furnace costing JPY 40 billion, in the spring of 2009.

As per report Nippon Steel plans to reline the Oita No1 blast furnace for 67 days from March 7 to May 13 next year, during which time the hot strip and heavy plate mills at the Oita works are due to undergo repairs as well. On the agenda are repairs on the hot strip mill for two weeks in March and those on the heavy plate mill in May.

The Oita No1 blast furnace will have an enlarged inside volume of 5,775m3 after the repairs, representing the world's largest blast furnace as in the case of the Oita No2 unit.

The relining of the Oita No1 blast furnace is scheduled to take 67 days, which will result in a virtual production loss of 670,000 tonnes in total if lost production amounts to 10,000 tonne per day.

The repairs are forecast to result in lost shipments of steel products totaling 1,000,000 tonnes, thereby having a more impact on NSC's steel exports than on its domestic shipments.

Chinese steel nails injuring US industry - US ITC

The United States International Trade Commission determined that a US industry is materially injured by reason of imports of certain steel nails from China that the US Department of Commerce has determined are sold in the United States at less than fair value.

All six Commissioners voted in the affirmative.

As a result of the Commission's affirmative determination, the Department of Commerce will issue an antidumping duty order on imports of this product from China.

The Commerce Department previously made an affirmative critical circumstance determination with regard to certain imports of this product from China. Therefore, the Commissioners who made an affirmative injury determination are required to determine whether these imports are likely to undermine seriously the remedial effect of the antidumping duty order Commerce will issue. All six Commissioners made negative findings with regard to critical circumstances in this investigation. As a result, the antidumping duty order concerning these imports will not apply to goods that entered the United States from China prior to January 23rd 2008, the date of the Department of Commerce's affirmative preliminary determination.

JFE may increase output of SBQ plates

It is reported that JFE Holdings Inc may boost plate production to meet demand from shipbuilders that have vessel orders backlogged into 2012.

The Nikkei report said that JFE, Japan's biggest producer of shipbuilding steel will raise production to 6.5 million tonnes a year by fiscal 2011.

The Nikkei reported that JFE may increase output of steel plate under the next mid term plan. But a decision hasn't been made yet. JFE will spend about JPY 30 billion (USD 280 million) to boost output 10% in three years.

It said that increasing demand for plate has allowed Japanese mills to raise prices for the material, helping offset a surge of as much as 97% this fiscal year for iron ore and a tripling of coking coal prices.

JFE and bigger rival, Nippon Steel Corp. are making more steel as economic growth in China drives demand for ships to deliver commodities including iron ore and oil. Trade between Asia and South America rose more than 20% in each of the past five years and growth will remain in the double digits in the coming five years.

Nippon Steel in July last year said it would spend JPY 20 billion to expand annual output of steel used in ships by 11% to meet rising demand for oil and liquefied natural gas tankers. The expansion would raise output to 600,000 tonnes a year at its Oita mill on Japan's southernmost main island of Kyushu.

Corus announces plate price increase for UK

Corus has announced that it will be increasing the price of reversing mill plate by GBP 80 per tonne as a result of robust global demand in all key plate consuming market sectors.

Corus in a statement said that the price change will apply to all newly booked UK deliveries of reversing mill plate dispatched from August 3rd 2008.

Mr Martin Maley director commercial for construction & infrastructure at Corus Long Products, said that “This rise has come about because demand is so robust. It is also an opportunity for us to reflect in our UK prices where prices have got to elsewhere in the European Union.”

Vietnam to cap fuel and steel prices to curb inflation

Bloomberg reported that Vietnam one of Southeast Asia's fastest growing economies, won't raise prices of essential goods including fuel and electricity this year in order to curb inflation.

According to Mr Bui Xuan Khu deputy minister of trade and industry, companies supplying the products, which also include coal, fertilizer and steel, will have to ensure sufficient stocks to avoid any sudden price increases.

Mr Xuan Khu said that the move comes amid reports of losses by state owned enterprises because of price controls and spiraling inflation. Consumer prices accelerated to 26.8% from a year earlier in June, the fastest rate since 1992. The trade deficit widened to USD 14.8 billion for the first half, up from USD 5.2 billion a year earlier.

Mr Hoang Trung Hai deputy prime minister said that the country needs to maintain a trade deficit of less than USD 20 billion and an export growth rate of at least 28% in 2008 in order to curb inflation by the end of 2009.

Carpenter completes sale of Rathbone Precision Metals

Carpenter Technology Corporation announced the completion of the sale of its Rathbone Precision Metals business to Treci Srl controlling company of Calvi Holdings, Srl.

The sale occurred on June 30th 2008 on a cash and debt free basis for a price of USD 17.5 million.

Rathbone is engaged in the business of designing, manufacturing and selling precision formed shaped components in a variety of alloys in the United States and certain other countries.

Directory of Electrical Steel Users in India

'Directory of Electrical Steel Users in India' is one of the top sources of information available on electrical steel users in India. It is one of the most comprehensive and accurate directory of electrical steel users in India.

Published in May 2008, 'Directory of Electrical Steel Users in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian users of electrical steel. This report will be extremely useful to businesses that deal specifically with companies in the electrical steel segment.

This report will enable you to profile electrical steel users in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

This report covers name and product details of 340 of Indian electrical users in Alphabetical order.

Look at the information you'll get in the 'Directory of Electrical Steel Users in India'

• Company name -340 entries
• Address-340 entries
• Phone number-338 entries
• Fax number -317 entries
• Email -300 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 190

Price: USD 625 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

ArcelorMittal publishes Corporate Responsibility report

ArcelorMittal announced the publication of its inaugural Corporate Responsibility Report for the year ending 2007: Taking Responsibility for Transforming Tomorrow.

Following on from the publication of a Corporate Responsibility review in January 2008, ArcelorMittal has published a more detailed report describing the approach and objectives over the coming years to address new challenges for the steel industry. The report is based around ArcelorMittal's four pillars of corporate responsibility: Workplace, Environment, Communities and Governance.

Highlights of the report include:

Workplace
1. USD 216 million invested in safety measures in 2007
2. Reduction in lost time incident rate on the previous year
3. Rolled-out new safety standards, 'golden rules' and behavioral safety audit program
4. Doubled the ArcelorMittal University budget in 2008 supported by new training, development and performance management initiatives.

Environment
1. USD 306 million invested in environmental measures in 2007
2. Increased level of environmental management certification across the Group
3. USD 214 million investment for Research & Development in 2007, including products for the renewable energy market
4. Increased use of High Strength Steels for construction and automotive sectors delivering savings in carbon dioxide emissions.

Communities
1. Socio-economic studies completed for our Greenfield projects in India
2. Social action program underway in Liberia and Senegal
3. In 2007, the ArcelorMittal Foundation supported 587 projects with a monetary value of USD 47.9 million.

Governance
1. New corporate responsibility committees and governance structure in place
2. Continued training in the Group Code of Business Conduct for all employees
3. High rankings in 2007 external metals and mining investor relations studies recognizing good shareholder dialogue.

Mr Gonzalo Urquijo member of ArcelorMittal's Group Management Board in charge of Corporate Responsibility said that "This new report underlines our commitment to making Corporate Responsibility an everyday part of the way we do business. The process of annual reporting will help provide greater transparency and accountability to our key stakeholders, including our employees, customers, investors and more broadly the communities in which we operate."

Iron ore price negotiations - SSI to ink pact with Rio, BHP and Vale

Dow Jones reported that Thai steel maker Sahaviriya Group expects to sign iron ore purchase agreements with three major producers in the third quarter of 2008 to secure raw material supply for its planned THB 90 billion (USD 1.5 billion) smelter.

Mr Win Viriyaprapaikit acting president of Sahaviriya Group said that Rio Tinto Ltd and BHP Billiton Ltd and Brazil's Vale do Rio Doce will supply a total of 8 million tonnes of iron ore a year to Sahaviriya Iron & Steel Co for at least seven years.

Mr Win said that Australian iron ore producers will provide around 70% of the total, with the balance from Vale. The iron ore price will be negotiated on a year on year basis.

Sahaviriya Iron & Steel plans to build Thailand's first smelter, with an annual capacity of 5 million tons a year. Mr Win said that the plant, which will take two years to build, is expected to start construction in the fourth quarter of this year.

Steel price increase inevitable - VSA

It is reported that Vietnam Steel Association has officially asked the Ministry of Industry and Trade to allow its members to raise steel prices.

In the document it sent to the ministry the association said that "Steel price increases prove to be indispensable as ingot steel prices are skyrocketing.”

The association said that in fact, some southern steel producers have raised their sale prices already. Pomina, for example, has raised the sale price from VND 16.426 million per tonne to VND 17.45 million per tonne, while Vinakyoei has raised the price from VND 16.55 million per tonne to VND 17.5 million per tonne. Other steel producers are offering steel at VND 17 million per tonne on average.

Southern steel producers said that they now have to import ingot steel at high prices. Vietnam Japan Company, for example, has signed a contract to import ingot steel at USD 1,180 per tonne, while finished steel is selling at USD 1,000 per tonne.

Mr Pham Chi Cuong chairman of Vietnam Steel Association said that Vietnam Steel Association pledged to keep steel prices in place until the end of June 2008, if the ingot steel price did not exceed the USD 900 per tonne threshold. At the time of the commitment, ingot steel was at USD 810 per tonne, while the sale prices offered by northern producers were at VND 15.2 to VND 15.4 million per tonne and the prices offered by southern producers were at VND 15 to VND 15.3 million per tonne. However, as the ingot steel price has been skyrocketing, some steel producers had to raise their sale prices in May 2008.

Mr Cuong said that "Raising steel prices proves to be unavoidable. Steel mills cannot buy ingot steel at USD 1,300 per tonne and then sell finished products at USD 1,000. However, Mr Cuong confirmed that the steel price will not increase sharply, because the purchasing power is low in the rainy season. In the past three months, VSA members sold only 260,000 tonnes of steel a month, a decrease of 60,000 tonnes compared to previous months.

Mr Cuong added that "The sale prices will be decided by the market.”

Bangladesh to formulate long term steel policy

The Daily Star cited Mr Feroz Ahmed commerce Secretary of Bangladesh as saying that the government is going to formulate a long term policy for the steel products with a view to keeping the market stable.

Mr Masadul Alam Masud general secretary of the Bangladesh Rerolling Mills Association, who attended the meeting, confirmed about the government move to formulate such a policy.

Mr Masud said the local market of steel fluctuates due to the absence of a long term policy and sudden government intervention is not adequate to smoothen business as the market of the item changes in accordance with the international market. He said that “So we need a market-driven policy involving all the stakeholders for a stable market.”

Mr Masud said that “However, we will submit our fresh opinions very soon to the commerce ministry, although we had also submitted such opinions earlier. He suggested that the government should have a strong monitoring mechanism to control the market. He added that 40 grade rod was selling at BDT 65,000 to BDT 68,000 per tonne while the rate of 60 grade rod was BDT 72,000 to BDT 73,000 recently at retail level.”

Mr Alihossain Akberali chairman & MD of BSRM said at first the government should focus on supply of gas and power to the factories because this industry is energy dependent. Praising Lauding the government's decision on opening up the import of scrap vessels for all, he said such policy will help cut any price manipulation through monopolizing the market. He opined that a long term policy was needed at least two years ago for the sector.

Mr Tanveerul Haque Probal president of Real Estate and Housing Association of Bangladesh when asked said their opinions with regard to the long term policies for steel and re rolling business will be submitted within a week. He said the real estate sector is the worst-affected sector for the frequent fluctuation of steel and rod price both in the local and international markets.

ArcelorMittal SA to increase production at plant

Reuters reported that ArcelorMittal South Africa is aiming to increase production at its Newcastle plant by the fourth quarter of 2008.

ArcelorMittal SA in a statement said that the recent refurbishments to the plant, which cost around ZAR 300 million (USD 38.55 million) are expected to increase production.

The statement added that "ArcelorMittal South Africa aims to produce 5,132 tonnes per day by the fourth quarter of 2008, up from the pre reline current 4,660 tonne per day.”

The steel firm added that it expects production to increase by a further 5,440 tonnes per day by the end of 2008. It said that the repairs will extend operations at the plant until 2011, when it will begin a ZAR 20 billion expansion project at the sinter plant.

One man killed at Savannah port

AP reported that a longshoreman at the Savannah port died after being crushed by steel pipes that tumbled off a forklift. Authorities said that the worker, identified as 69 year old Mr Lee Fluker was killed yesterday morning.

Mr Bret Bell a city spokesman said that an initial police investigation shows Mr Fluker was working on the dock as steel pipes were being unloaded from a ship and carried away by forklifts.

The spokesman added that as one of the forklifts made a turn, the pipes it was carrying struck Mr Fluker and knocked him into the path of another forklift. The operator of the second forklift stopped suddenly, causing steel pipes to fall and crush the longshoreman.

Georgia Ports Authority police and the federal Occupational Health and Safety Administration are investigating.

Japanese steels majors see downturn for sheet steel market

JMB reported that Japanese integrated steel makers started to be cautious for potential oversupply of domestic sheet steel market.

They try to find the trend with very slow domestic building activity and slower automobile export to USA while the domestic supply is still tight thanks to strong demand for Japanese manufacturers.

The steel makers could reduce the supply for some applications depending on the demand activity.

US heavy structural imports see hefty decline in June

According to data issued by US Census Bureau, US import license applications for heavy structural dropped by 41% MoM to some 41,000 tons in June 2008 compared to May 2008.

Imports from Taiwan decreased to 57 tons from 20,000 tons in May. Besides, imports from Mexico and Canada were 12,200 tons and 8,800 tons respectively.

(Sourced from YIEH.com)

Hanjin wins USD 196.5 million order from Europe

Reuters reported that South Korea's Hanjin Heavy Industries Co had received a KRW 201.1 billion (USD 196.5 million) order to build two bulk ships for an unidentified European shipper.

Hanjin in a filing with the Korea Exchange said that the vessels would be delivered by the end of December, 2010.

Lupatech to invest USD 5.6 million in Gavea Sensors

Brazilian metal parts maker Lupatech reported that it has signed a deal with Rio de Janeiro based Gavea Sensors to buy BRR 9 million (USD 5.58 million) worth of stake in Gavea.

Lupatech in a statement to São Paulo's Bovespa stock exchange said that the transaction will be put to a shareholder vote during a general assembly to be called in the coming days. It said that the deal is in line with Lupatech's strategy of expanding its line of highly technical products and services focused on the oil, gas and flow control markets.

Rio Grande do Sul state based Lupatech makes manual and automated ball valves and supplies products to the automobile and oil and gas industries.

Keep tab on steel prices on daily basis

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

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

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

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

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

Mr N Sharma of SteelGuru.com said that “We have been receiving requests from Steel Trade Today subscribers for domestic steel prices during the last 3 years of SteelGuru’s operations. The volatility in the steel market in last 6 months to 8 months also propelled us to put it up quickly.”

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

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

MEA crude steel production in January to May 2008

According to a release from international iron and Steel Industry, Middle East production of crude steel in January to May 2008 period total 6.959 million tonnes up by 9.7% YoY as compared to 6.343 million tonnes in January to May 2007 period.

In ‘000 tonnes

In ‘000 tonnes

Construction costs in GCC up by 50% in H1 of 2008

It is reported that the real estate development sector currently faces several challenges, chief among which is the lack of contractors who are able to deliver projects on time and to specification, due to a severe shortage of skilled labor and the soaring cost of building materials.

According to the report, inflationary pressures in the GCC have increased the cost of building materials price, leading skilled and unskilled laborers to leave the country and resulting in a labor shortage that has fuelled soaring building costs in the region.

Ms Eng Salwa Malhas vice executive president for Al Mazaya Holding operations said building material prices have increased by 50 % on average, and even more in the case of certain materials. She added that delay in project delivery is not caused by a lack of reliable contractors, but by the inability of those contractors to find skilled laborers and by the rising cost of building materials. Changes in steel and cement prices mean that there delays in project delivery are inevitable.

The costs of building in the Gulf region increased at an estimated rate of at 30 % in 2007 alone and a further 50 % in the first half of 2008.

OPEC output up in June 2008

It is reported that OPEC production rose to a 22 month high in June 2008, cutting into spare capacity thus limiting the group’s ability to respond to major supply disruptions.

As per report output by the OPEC 10 members, excluding Angola, Ecuador and Iraq, rose to 27.81 million barrel per day. And OPEC 12 output, excluding Iraq, reached 30.21 million barrel per day, slightly higher on the month.

It said that Saudi Arabia increased output to 9.45 million barrel per day to offset shortfalls in Nigerian supply. Saudi production is at its highest since April 2006, when rebel attacks shut in around 500 k b/d of Nigerian supply, around 700k b/d of Nigerian output is currently shut in. Saudi Arabia has sustainable capacity of 11.3 million barrel per day and will add 500k b/d of Arab Light to this when the Khursaniya project starts up this year.

Kuwait oil lifespan could prolong to 115 years

According to a new book released by Kuwait Oil Company, the lifespan of Kuwait's oil fields could prolong to 115 years if state of the art technologies are tapped.

The book said Kuwait's confirmed oil reserves are 101.5 billion barrels, citing British Petroleum figures in 2005. It said that Kuwait's daily oil output is 2.415 million barrels according to February 2007 statistics, the lifespan of oil fields is 42,029 days or 115 years.

The book also said that the continuing development of oil technologies could lead to more oil explorations and extractions, thus prolonging the lifespan of oil fields.

On the future of oil prices, the book stressed that oil producing and consuming countries should work together in order to fend off a looming oil price war and concomitant negative ramifications on the global economy.

Qatar's natural gas production rises by 17.9% in 2007

According to the 2008 BP Statistical Review of World Energy, Qatar's natural gas production touched 59.8 billion cubic meters in 2007 from 50.7 billion cubic meters in 2006 up by 17.9 %.

The review further showed that the country's proven reserves were at 904.06 trillion cubic feet at the end of 2007, accounting for 14.4 % of the world's total.

The review concluded that the Middle East oil consumption as a whole showed an average growth of 4.4 % in 2007 as regional and global production fell for the first time since 2002.

Iran put inflation rate for fiscal year 2008 at 21%

Tehran Times Economic Desk reported that Central Bank of the Islamic Republic of Iran put the inflation rate for the fiscal year ended June 20th 2008 at 20.7 %.

According to a CB report, the country’s liquidity amounted to some USD 174 billion by April 18th 2008.

Mr Pashaei Fam deputy governor of Iran’s Central Bank attributed 80 % of the current inflation to the high liquidity. He said that the inflation rate will reduce to 16 % if liquidity is curbed.

Steel users in MEA can improve bottom line

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

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

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

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

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

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

Chinese steel plate export offer further increase

It is reported that export offers for Chinese steel plate are raised again despite flat domestic market prices. Strong overseas demands are expected to bolster the high export price level.

On Shanghai market, commercial 16mm plate by Yingkou steel is being quoted at CNY 6600 per tonne to CNY 6650 per tonne, commodity grade 16mm to 20mm plate by Chunye and Feida steel are only tagged at CNY 6100 per tonne to CNY 6120 per tonne which compares with CNY 6750 per tonne and CNY 6280 per tonne to CNY 6300 per tonne one month ago.

Export offers have been further raised this week. Tianjin steel shot up quotation for commercial 14mm to 40mm plate to USD 1160 per tonne to USD 1165 per tonne FOB by end September or October shipment. There has been an increase of USD 40 per tonne to USD 45 per tonne from last month. Another similar tier two steel maker in Hebei province is quoting is commercial plate at USD 1140 per tonne FOB. However, there is said to be few transaction at the updated levels at moment

(Sourced from MySteel.net)

Tanggang crude steel output in H1 up by 23.3% YoY

It is reported that overcoming all negative impacts of the transportation, power restriction and equipments maintenance brought by the snowfall in south, Tanggang worked hardly to strengthen production organization, further consolidate all fundamental management, stable growth of products output.

As per report, Tanggang’s produced 7.8365 million tonnes of iron up by 30.18% YoY, 8.142 million tonnes of steel up by 23.32% YoY, 6.6882 million tonnes of steel products up by 10.55% YoY.

WISCO H1 2008 profit up by 20% YoY

Wuhan Iron & Steel Group Corp announced in H1 2008 it produced 12.71 million tonnes of pig iron up by 55.44% YoY, 11.25 million tonnes of billet steel up by 54.79% YoY and 10.61 million tonnes of steel products up by 58.08% YoY respectively. Sales revenue and profit rise by 89.78% YoY and 20.48% YoY compared with the same time of last year. All figures above are hitting the record high.

According to the released, WISCO faces great pressures and challenges since the start of this year, reflecting the wild price rise in iron ore, coal, transportation and oil which together bring about a cost increase of CNY 10 billion.

The released added that, the company sticks to the strategy of direct supply to end users and the ratio is as high as 80%, supported by the expanding capacity and fast correction of products mix. It also energetically markets its ten strategic products including saloon car steel sheet, steel for construction and oriented silicon steel.

Wuhan is engaged in mass production of CR saloon car steel sheet, it consolidates the brand of its steel for construction such as bridge steel, heavy rail and vessel steel, as well as X80 pipeline steel especially, has been successfully shipped to serve projects of West-East Natural Gas Transportation , Central Asia Pipeline and Southwest Pipeline. In addition, high end products like tire cord steel and high strength cold heading steel have been over fulfilled, strongly upholding the company' H1 outstanding performance.

Handan Steel develops 9 new grades in H1 of 2008

It is reported that Handan Steel has obtained great progress in new products exploitation in H1 of 2008 and has totally produced 310,600 tonnes of new products, including 377,200 tonnes of ship steel and 41,000 tonnes of Q345E and Q460C low alloyed medium plates.

In the period from January to June, Handan Steel has cumulatively exploited nine new specifications, including Q235BZ15, Q345BZ15, Q345CZ15, Q345GJBZ25 and X42 pipeline steel medium plate, 610L auto steel beam, Q345qD bridge steel coiled sheet, X70 pipeline steel and SPHC-CP auto fittings picking sheet.

Anshan Steel ties up with 3 global leaders in H1 of 2008

It is reported that Anshan Steel has cooperated with several world's top enterprises in some non steel sectors since this year.

Anshan Steel signed an agreement with Vesuvius China on July 5th to jointly found an equally funded refractory materials company. Vesuvius International will provide patents and technologies for free to forge the joint venture to a leading actor in China's refractory materials industry. Vesuvius International now owns over 70 manufacturing units and more than 40 sales and service centers in 35 countries and it has 11 R&D centers in Europe, the US and China mainland.

As per report, one month ago the steelmaker set up strategic cooperation partnership with Belgium's Bekaert. The two sides then inked an agreement one week later to equally build a joint venture in Chongqing's Shuangqiao Industrial Park to deal with steel cord yarn for tyre. Bekaert is a multinational company and is a leader in development, manufacturing and sales of steel wire, steel cord yarn and advanced materials.

The steelmaker further tied up with GE in Jun end to raise its competitiveness in low voltage apparatus manufacturing and assembling. GE is the largest diversified company in the World's Top 500.

China Steel Industry Forecast till 2012

China Steel Industry Forecast till 2012 is the latest market analysis by RNCOS on the world’s largest steel producer, China’s steel industry. This analysis gives an overview of the global steel industry and discusses the Chinese steel industry in detail, including production and consumption pattern, type of steel products, and major exporting–importing countries. It also studies the growth drivers, opportunities, challenges, and future outlook of the industry.

China’s steel industry is among the world’s major industries and is registering the fastest growth rate not only in terms of production but consumption also (China is the world’s largest steel consumer). The country expanded its steel-making capacity to meet the demand of its rapidly growing economy. Basically, strong economic growth and cheap production base are the major driving forces for rise in steel consumption.

The steel industry of China has been witnessing phenomenal growth since the last few years. In 2006, total crude steel production in the country reached 422.7 Million Metric Tons. China accounted for approx 34% of total global crude steel demand in 2006. Government support and economic growth is propelling growth in the Chinese steel industry. During the period 2000-2006, demand for steel in China grew at a CAGR of 19.18%.

This section provides the overview and key financials of players like Shanghai Baosteel Group Corporation, Anshan Iron & Steel Group, Wuhan Iron & Steel, Shougang, Jinan Iron & Steel Co. Ltd., Alison Group etc.

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Number of Pages: 80

Price: USD 1100
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Chongqing Steel and Tianjin Pipe form JV n Chongqing

It is reported that Chongqing Iron and Steel Group recently entered into a preliminary agreement with Tianjin Pipe Group to establish a joint venture that will produce steel pipe in southwestern China's Chongqing Municipality.

According to the agreement, Chongqing Steel will buy a 33% stake in the joint venture, which has registered capital of CNY 200 million while state controlled coal miner Zhongliangshan Coal and Power Co Ltd will buy a 17% stake.

According to the report the iron ore development joint venture will construct a 3 million tonnes iron ore mining and selecting facilities as well as a 1.6 million tonnes pellet plant and a 300,000 tonnes coalmine, which together require investment of approximately CNY 1.4 billion and are scheduled to commence production by 2012.

An official with Chongqing Steel Group's press department, surnamed Mr Yu said "Chongqing Steel Group intends to enhance its current weak steel pipe operation through cooperation with Tianjin Pipe Group, China's largest steel pipe producer, while Tianjin Pipe Group is focused on access to the under developed market in western China. However, so far, both sides haven't nailed down any details regarding the joint venture plan."

Mr Yu said "The joint venture will be located in the district of Changshou in Chongqing, where the entire facilities of Chongqing Steel Group will be relocated. As relocation work is still at a very early stage, the steel pipe facility is unlikely to come online in the near future."

Chongqing Steel Group's ongoing relocation work aims to boost annual output capacity from 3 million tonnes to 8 million tonnes including 3.5 million tonnes of medium plate. Completion is scheduled for 2010.

Angang ink strategic agreement with China Construction Bank

It is reported that Liaoning based Angang has signed a strategic cooperation agreement on comprehensive financial services and supports with China Construction Bank recently in Beijing.

As per the agreement, China Construction Bank will offer an intentional credit line of CNY 15 billion to Angang. And the two will also start cooperation in credit extension, investment and financing etc.

As per report, Angang has already tied up with the Industrial and Commercial Bank of China, Agricultural Bank of China, China Development Bank and the Export and Import Bank of China etc. earlier, which will provide strong financial support to its globalization and output expansion.

CCB is the first one among the four domestic leading commercial banks to achieve overseas listing.

Angang joins Yingkou port in consolidation

Liaoning Daily reported that Angang Group lately signed a strategic agreement with Yingkou Port Co, not only to cooperate in logistics, but also by cross shareholding jointly operate the Yingkou port ore dock and Bayuquan steel dock.

According to the report, the two parties aim to realize win to win by complementing each other, sharing resources and mutually beneficial collaboration. Apart from the strategic agreement, they also inked two contracts on jointly funding and operating the two docks.

In the iron ore dock company, Yingkou Port Liability Company Limited will hold the controlling stake of 60% with the balance equally taken by Yingkou Port Co and Angang Group, while in the steel dock company, Angang Group will take the lead, followed by Yingkou Port Liability Company Limited in a scale of 6:4.

As reported, they are confident to make a high efficient and low cost logistics chain for Angang Group with startup of the Bayuquan project.

(Sourced from MySteel.net)

Steel sector to receive strengthened clean production check

Chinese Ministry of Environmental Protection recently issued a formal notice on further enhancing clean production check of the keynote enterprises, specifying that all layers of environmental protection authorities should strictly abide by the accounting method on clean production based COD and SO2 emission reduction according to two trial documents.

The notice said the environmental protection administrations should spend no less than 10% the special fund in keynote enterprises' clean production check and evaluation. In particular, thermal power, steel, non-ferrous, electro-galvanizing, papermaking, construction materials, petrochemical, food, pharmacy, brewing, printing and dying are the major polluting sectors concerned, while Huaihe, Liaohe, Haihe, Taihu, Dianchi and Chaohu will be the target areas for closer supervision.

It also said the clean production check results for keynote enterprises will be published in future. The enterprises with higher pollutants emission than regulated or using and discharging toxic and deleterious materials for and during operation will receive special surveillance. Any resistances in clean production check, evaluation and failure of passing the check will be exposed to the public and fined.

(Source: CAIJING.COM.CN)

China State Shipbuilding plans to raise USD 1 billion

According to China State Shipbuilding Co Ltd in a statement sent to Shanghai Stock Exchange, plans to raise up to CNY 7.4 billion by issuing convertible bonds and warrants. The firm aims to issue no more than CNY 3.7 billion in convertible bonds and CNY 3.7 billion in warrants, to raise funds for eight major shipbuilding projects

The statement did not give further details or timeframe.

Sinotrans and Yangtze agree on logistics merger

Reuters reported that Chinese logistics giant Sinotrans has agreed to merge with China Yangtze Transportation.

Nanjing Tanker and Changjiang Phoenix 000520.SZ said in statements that the merger is still subject to approvals from China's state assets regulator and other related government departments.

According to the report, if the merger goes ahead the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing, as Beijing spurs consolidation of a large but fragmented sector.

Analysts have said the deal would open opportunities for Sinotrans' listed units Sinotrans Ltd and Sinotrans Shipping Ltd to buy assets from their state parent in the future, though it was not expected to have an immediate impact on the listed firms.

Concrete projects in Beijing to be halted before July20

Beijing Evening News quoted Beijing Municipal Environment Protection Bureau as saying that the major comprehensive treatment tasks now have been accomplished and enterprises that have not finished yet will be shut down during the Games.

According to the Bureau, all measures that come to ensure air quality during the Games are now being carried out smoothly. Since July 1st earthwork and concrete casting projects have been gradually ceased and will be completely stopped before July 20. Besides, traffic restrictions will be conducted to help ease congestion and reduce pollution during the Olympics.

EPA nod must for 14 sectors for listing in China

According to China's State Environmental Protection Administration, enterprises in 14 industries that fail to pass the state environmental protection examination are not allowed to apply for going public or financing through increasing stake.

These sectors include thermal power, steel making, cement, electrolytic aluminum, coal, metallurgy building material making, mining, chemical, petrochemical, pharmacy, light Industry, textile and tanning.

Enterprises to be listed need to accept a series of checks and requirements, including that major pollutant emission must be curbed under the national and local emission standards, enterprises must claim pollutant emission license according to related terms and meet the requirement of the license

According to State Environmental Protection Administration, for the listed companies looking for financing again, there are three additional checks they have to face. The financed capital will not go to undermine the environment both practically and potentially; it will help improve the environment; and it can not step into the backward capacities, technology and products, which the government has asked to wash out, with a view to promoting the industrial structure correction.

This is the environmental protection department' first knock down move guiding the listed and to be listed enterprises, hopefully to alter the situation that the local governments simply prefer the economic earnings at the cost of environment.

(Source Shanghai Securities News)

Chengdu to build the railway container center

It is reported that recently, the first railway establishment project- Chengdu railway container center after the Wenchuan earthquake was formally started to be constructed. After completion, its largest throughput can reach 26.26 million tonnes every year

As per reports, Chengdu railway container center will locate in Chengdu Qingbai river district Chengxiang town, it is one of the 18 container centers programmed by the Ministry of Railways. After full operation, it will connect with Guangzhou, Shanghai, Beijing, Zhengzhou, Xi'an, Wuhan, Kunming, Chongqing etc 55 railway centers.

The project covers an area of 2,140 acres, with a total investment of CNY 758,57 million, and the construction period is 18 months. Its shareholders include France CMA CGM Group, Israel ZIM Logistics Company, Germany Railway Group, China Railway Container Transport Corp Ltd etc.

Yonggang Group rebar sells well in overseas market

It is reported that Jiangsu Yonggang Group successfully produced rebars as per BS 4449 Grade 460B and Grade B500B for exports to Middle East, Malaysia, Singapore and other countries.

Jiangsu Yonggang Group made improvement on the product technology and started production of these grades in June 2008.

Jiangsu Yonggang Group is one of the largest construction steel production bases in East China, its Lianfeng brand hot rolled ribbed rebar, hot rolled wire rod etc are all long welcomed by the domestic market by high quality and good after sales service.

Ore price hike weighs on Chinese auto industry

It is reported that the overall 85% price hike for 2008 term contract ore together with the rising oil price has pushed up steel prices to a record high, leaving domestic auto manufacturers in dilemma for whether to promote sales to drive up market demand or raises up prices to offset the profit loss.

A salesperson from Southeast-Motor said "Oil price has gone up last week, striking a heavy blow on the already sluggish market and became the largest bearish factor. And the rampant iron ore price rise has intensified the condition.”

As per report, steel accounts for 70% of the raw materials for making automobiles. And some domestic auto producers have unveiled Mar that auto industry's aggregated profit has been reduced by 3% to 5% calculated on the 65% ore hike settled with Vale. And the much higher overall 85% price hike agreed with Rio and BHP will apparently erode the profit margin further.

Mr Zhang Xiaodong PR manager of Geely said "We will not raise sales price at the moment though cost increased, but we will never lower our price. He said that we must try hard to cover the rising cost, and improve our technology."

Many domestic auto makers have declared that they will not lift sales prices at the moment, but try hard to absorb the incremental costs internally.

China domestic steel prices influencing global trends

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

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

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

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

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

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

Auto makers to fight steel surcharges - WSJ

According to Wall Street Journal, citing people familiar with the matter some auto makers are threatening to fight surcharges steelmakers are trying to impose on agreed supply contracts in a bid to curb the impact of spiking steel prices and bolster their weak finances.

They told the paper that the auto makers are looking to fight the additional charges in court, saying that financial terms of a contract cannot be altered. It did not say which auto makers planned such action.

The paper said both sides agree that the price in the next cycle of negotiated contracts will be significantly higher than in previous contracts, owing to higher costs for raw materials such as iron ore and higher energy prices.

Auto companies, reeling from rising fuel and raw material prices, the credit crunch and the housing market downturn, are trying to cut costs and shore up capital levels while steel prices have soared as increased demand from rapidly developing economies like India and China is outstripping supply.

Tangshan Steel's color coating production line starts operation

It is reported that with total investment of CNY 150 million and designed by Japan's Nippon Steel, Tangshan Steel's color coating production line was put into formal operation last month with annual capacity of 150,000 tonnes.

As per report, the line's products specs is 0.3mm to 1.2mm*820 mm to 1250mm with the highest running speed of 120 meters per minute.

The production line has rolled out 2,000 tonnes of products so far with specs of 0.45mm t0 0.5*1200mm and has been delivered to Shanghai market. And the line is expected to produce 5,000 tonnes per month in the second half of this year.

(Sourced from MySteel.net)

Liuzhou Steel's H1 sales revenue breaks CNY 20 billion

It is reported that Guangxi based Liuzhou Steel churned out 2.72 million tonnes of iron, 3.03 million tonnes of crude steel and 2.92 million tonnes of finished products in the H1 of 2008 exceeding the comparable rates of the same period last year with sales revenue of CNY 21.2 billion up by 62.86%.

Guangxi based Liuzhou Steel exported steel products of 302,400 tonnes in the same period with export value of USD 235 million.

As per report, price has soared 71% to 96.5% for imported iron ore; 45% for pig iron and 40% for scrap in the first half and price for coal also more than doubled, which lead to record high input costs and drag down profit margins for steel sector. And Liuzhou Steel's six blast furnaces all have been suspended for a period of time due to coal shortage in the review period.

Guangxi based Liuzhou Steel has imported 3.67 million tonnes of iron ore in the first half despite the transport difficulty, which lowers its purchase cost by CNY 265 million. The steel mill rolled out over 1 million tonnes of HRC in the first half. Meanwhile, the mill has poured a total of CNY 2.48 billion for technological improvement. Achieved core business income of CNY 19.2 billion and non steel revenue of CNY 2.09 billion up by 58.79% YoY and 113% YoY respectively.

China's consumer confidence index shrinks in Q2

It is reported that China's consumer confidence index dropped in the second quarter reflecting an expected cool down in the country's economy.

The National Bureau of Statistics said the index fell 0.7 percentage points from the previous quarter to 94.1. The index was also 2.7 percentage points lower than in the same period last year.

The Index which measures consumers' outlook toward employment, the economy, regular income, stock market and quality of life was released following the disclosure of a slightly lower entrepreneurial confidence index and a lower business climate index, both YoY figures for the second quarter.

China's business climate index dropped 8.6 points to 137.4 points from last year's second quarter, while the entrepreneurial confidence index dipped 8.3 points to 134.8 from the same period last year.

China exports 5.22 million tonnes of steel products in June

Bloomberg cited China customs office as saying thast China exported 5.22 million tonnes of steel products in June.

The customs said the steel shipment fell 20% to 26.9 million tonnes in the first six months from a year ago.

China faces threat of European tariffs on steel pipes and tubes

Bloomberg reported that the European Union threatened to impose tariffs on steel pipes and tubes from China to protect EU producers from cheaper imports.

According to the report, the EU began an inquiry into whether Chinese exporters of seamless pipes and tubes sell them in the 27 nation bloc below cost, a practice known as dumping. The probe covers pipes and tubes of circular cross-section and an external diameter not exceeding 406.4 millimeters.

The European Commission, the EU's executive arm in Brussels said that the investigation will determine whether the product is being dumped and whether this dumping has caused injury. The commission has nine months to decide whether to impose provisional anti dumping duties for half a year and EU governments have 15 months to decide whether to apply definitive levies for five years.

The commission said that the new dumping inquiry stems from a May 28 complaint by the Defence Committee of the Seamless Steel Tubes Industry of the European Union on behalf of producers that account for more than half of EU output of the product. Officials of the industry group couldn't immediately be reached for comment.

The EU is already trying to stem imports of Chinese goods ranging from frozen strawberries to ironing boards. China, the world's most populous country, faces EU anti-dumping duties on about 40 products more than any other nation.

Liuzhou distribution center to start operation in the end of 2008

According to China’s Development and Reform Commission, WISCO's Liuzhou Distribution Center project has started construction at Liubei district of Liuzhou in Guangxi province.

A related official with the commission said that "The project was kept in record two months ago and now is under construction. He said that the first phase item will put into service in the end of this year and the second, late next April. Covering an area of 36,000 mm, the project specializes in processing and distribution of CR, galvanized and tinning products, silicon steel and stainless steel coils and sheets/plates and is projected to have a processing capacity of 150,000 tonnes annually.”

Liuzhou, one of China's auto parts production bases, assembled 610,000 cars in 2007 and will accomplish 1m before the end of the 11th Five Year Plan. The needed CR automobile steel product in the city is registered over 400,000 tonnes each year.

(Source: Chutian Metropolis Daily)

Dongfeng Motor mends its pace to cooperate with WISCO

It is reported that Mr Kimiyasu Nakamura chairman of Dongfeng Motor Company Limited visited WISCO lately and had a talk with the general manager of the leading steelmaker Wangling about their cooperation.

The report quoted Mr Wang as saying that the two companies have wide cooperative areas and he hopes they can work together more deeply. He said that WISCO is one of the important strategically cooperative partners. He expects the two companies can accelerate their cooperative pace in cutting cost through technology improvement and business affairs.

(Source: www.xinhuanet.com)

Domestic HDG price soften where export offer stable

It is reported that Chinese domestic hot dipped galvanized steel sheet/coil price is still in a dull period and it has slipped further this week. While export quotations are largely unchanged and some steel mills have yet announced new prices.

On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7550 per tonne to CNY 7580 per tonne, price for 0.5mm HDG by private steel makers is at CNY 7750 per tonne down by CNY 30 per tonne to CNY 50 per tonne from last week. The downward corrections are going to continue unless it could exceed CNY 7600 per tonne.

Export Quotation for 1.0mm HDG Z120 by tier two steel mills remains at USD 1160 per tonne to USD 1200 per tonne with transaction price at USD 1150 per tonne FOB to USD 1160 per tonne FOB.

(Sourced from MySteel.net)

Baotou Steel hits record output

It is reported that during the first half of 2008, Baotou Steel produced 4.5807million tonnes of pig iron up by 6.39% YoY 4.673 million tonnes of crude steel up by 10.08% and 4.4496 million tonnes of merchant billet and steel products up by 10.63%.

Baotou Steel produced 1.3391million tonnes of hot rolled wide strip during the same period, 722,700 tons of cold hard coil, 359,600 tonnes of skin-pass coil, 170,700 tonnes of galvanized strip, 36,000 tonnes of cold rolled sheet, 396,400 tonnes of seamless pipe, 71,100 tonnes of OCTG and 405,600 tonnes of rails.

Baotou Steel achieved an average BF utilization coefficient of 2.053, up 0.004, a charged coke ratio of 432.68 kilogram, a BF coal injection ratio of 119.45 kilogram, blending iron ore concentrates grade of 65.54%, up 0.09age points, comprehensive iron ore concentrates grade of 65.93% and converter continuous casting ratio of 98.39% up 0.97age points.

Interpipe launch new coating line for oil and gas pipes

Ukraine’s leading steel pipe and railway wheels producer Interpipe has announced the opening of a new production line at Interpipe NMPP mill.

The new line gives Interpipe the capacity to produce pipes with an external anti corrosive 3 layer coating for both seamless and welded pipes up to 530 mm for oil and gas transportation. Total investment in the project has reached USD 8.5 million.

According to the release, the new equipment was supplied by the Dutch company Selmers Technology BV a global supplier of pipe blasting and coating plants and pipe logistics.

The released also added that the new line’s production capacity is 400 square meter per hour, which is the maximum line capacity for this type of pipe in Ukraine. At the moment, the mill can produce pipes with an anti corrosive 3 layer coating according to the following standards including DSTU 4219-2003, DIN 30670, GOST R, API 5L, ASTM.

Mr Aleksey Slyusarev Director of Production and Investments at Interpipe said “The issue of quality is a top priority for pipes used in oil and gas transportation. Interpipe’s investment in new production facilities confirms its commitment both to quality and to serving our customers’ needs. Pipes from the new line will meet the highest requirements in terms of reliability and life span.”

Alchevsk to invest 2007 income for modernization

It is reported that shareholders of Alchevsk Steelworks decided at their AGM held on July 4th to redirect USD 60 million net income for 2007f or its modernization program.

Mr Taras Shevchenko GD of ALMK said that the company will start to pay dividends no sooner than when the major reconstruction is done.

It is building a PCI unit, blast furnace #2 and a new converter as the main projects for 2008's planned USD 0.8 billion in CAPEX.

Management also announced that the plant generated USD 174.2 million in H1 2008 which was achieved thanks to robust steel output growth up by 37.7% YoY and an increase in the share of high value added products which compensated for the rise in prices for iron ore, coke and gas. As for the whole year, the management targets output growth of 47.5% and pre tax income of at least USD 288.7 million.

Millennium Capital analyst said that “The observed financial and operational performance of ALMK is sound and we believe it will manage to reach its 2008 income targets. At an effective income tax rate of 32%, USD 288.7 million in pre tax income yields USD 193 million in net income.”

(Sourced Millennium Capital)

OMK Vyksa production update for H1 of 2008

It is reported that OMK’s Vyksa Metallurgical Plant produced 123,101 tonnes of pipes in June 2008 and 741,616 tonne sin January to June 2008.

Large diameter pipes accounted for 63,715 tonnes in June 2008 and 362,532 tonnes in for January to June 2008.

Update on Mechel mining segment preliminary results

Mechel in a recent announcement on mining segment for 2008 announced the following

1. Mining segment revenue from external customers in the first quarter of 2008 is expected to exceed USD 850 million up by 105% from segment revenues of USD 409.3 million in the first quarter of 2007.

2. The mining segment net income in the first quarter of 2008 is expected to amount to over USD 300 million up by 170% YoY compared to net income of USD 107 million in the corresponding period of 2007.

3. Gross profit is expected to exceed USD 600 million up by 110% YoY compared to gross profit of USD 280.6 million in the corresponding period of 2007.

4. Operating income is expected to exceed USD 410 million up by130% YoY compared to operating income of USD 176.6 million in the first quarter of 2007.

5. Mining segment EBITDA in the first quarter of 2008 is expected to be not less than USD 510 million up by 150% YoY compared to EBITDA of USD 198.3 million achieved in the previous year’s first quarter.

6. EBITDA margin is expected to increase to more than 49% YoY in the first quarter of 2008 compared with 34.4% YoY in the first quarter of 2007.

Mr Vladimir Polin CEO of Mechel Management Company said “Our anticipated financial results for the mining segment, which will represent another record for the Company, are due in part to the acquisition of Yakutugol at the end of 2007. Compared with the corresponding period in 2007, coal production in the first quarter of 2008 rose over 60%. Furthermore, coking coal production was the main driver of our performance, with production increasing 94% compared to the first quarter of last year. Segment results were also positively affected by increased capacity in Mechel’s Port Posiet terminal operation, where capacity in the 2008 first quarter was increased by over 50% due to operational improvements. We also benefited from a favorable price environment for coal products due to the fact that significant demand and supply imbalance appeared in consequence of environmental and infrastructural problems. The mining segment saw coal pricing growth over the past six months, and looking forward we anticipate the existing price environment to continue given infrastructural restraints in the market. We also expect to benefit from the results of our capital expenditure program, gradually increasing mining segment production volumes and continuing to achieve strong results throughout the year.”

ITZ pipes meet specs for Bovanenkovo-Ukhta pipeline project

Mr Anatoly Kruchinin GD of Severstal announced that the pipes by Izhora Pipe Mill have successfully been proof tested to meet the conditions of the Bovanenkovo-Ukhta gas main system construction tender.

Those pipes are made of K 65 HR from Severstal. He said that specified K 65 strips and pipes production begins from July 2008.

Bovanenkovo-Ukhta gas transmission facilities construction is a key element in Yamal Peninsula’s fields exploiting and transmission of the extracted gas. The gas transmission network is a part of whole gas transportation system of Russia. The length of transmission corridor from Bovanenkovo to Ukhta is nearly 1,100 kilometer. It is expected to be commissioned in Q3 2011.

Interpipe NITR solves power issue for new mill

It is reported that Interpipe Nizhnodniprovskiy Pipe Plant and the Italian company Danieli agreed to build on NITR's premises an arc furnace plant called Interpipe Steel with a capacity 1.32 million tonnes per year.

As per report, the project's estimated cost is USD 610 million. The only remaining problem electric power supply has been solved and the plant will be supplied by an underground electric cable line.

Analyst for Millennium capital said that “We hope this is the final resolution of the problem and it will not resurface with the advent of a new Ukrainian government as has happened before. We consider this news as POSITIVE for NITR.”

(Sourced Millennium Capital)

Ukrtransnafta oil transit in H1 2008 down by 16.7% YoY

Interfax reported that Ukrainian gas transport monopoly Ukrtransnafta reduced oil transit through pipelines on Ukrainian territory by 16.7% YoY to 17.168 million tonnes in the first half of 2008 compared to the same period of 2007.

Ukrtransnafta pumped a total of 21.035 million tonnes in the first six months of 2008 down by 21% from the first half of 2007. It transported 3.866 million tonnes of oil to Ukrainian refineries in January to June down 35.7% YoY from a year earlier.

Ukrtransnafta is the operator of the Ukrainian oil transport system. Naftogaz Ukrainy manages 100% of the company's shares.

RusHydro net profit amount to RUB 16.7 billion in 2008

Interfax cited Mr Sergei Yushin RusHydro's financial director and a member of the management board RusHydro may post a net profit of RUB 16.7 billion in 2008 under Russian accounting standards.

He said that revenue could amount to RUB 64 billion "Those figures are from the unadjusted statement. We can provide a more exact forecast of net profit after the completion of the spring melt."

RusHydro combines more than 25 gigawatts of generating capacity and controls around 15% of Russia's electricity market. It consolidated the last of its assets on July 1st, when it absorbed the Irganai HPP, Nizhne-Terek Cascade and two interim holdings spun off from RAO UES.

Ukraine PPI remains high in June

According to the State Statistics Committee, Producer Price Index inflation was 4.2% MoM in June. Cumulative PPI inflation was 29.4% in 6 months 2008.

The highest growth was seen in metallurgy prices 6.6% MoM though it decreased compared to April and May prices. Utilities prices rose at double the average rate. Also, prices of coke and oil producers increased by 4.6% mainly due to an oil products price rise of 5.2% MoM in June.

Despite the government's success in restricting CPI inflation, PPI continued its steady growth in June 2008. This was mainly related to world oil price growth which, first of all, contributed to the high cost of domestic production of petrochemicals and added to the cost of transportation. Metallurgy price growth was stimulated by the increase in world prices for steel, as the main part of domestic metallurgy production is export oriented.

The hike in utilities prices was explained by the increase in prices for electricity related to electricity demand pressure as it became a more attractive energy source compared to natural gas. We expect that oil price growth will continue in subsequent months, thus fuelling PPI to 2.8% MoM to 3.0% MoM in July and around 45% YoY in 2008.

(Sourced from Millennium capital)

Rail carrier PGK ships 31.2 million tonnes of freight in H1 2008

Interfax reported that OJSC First Freight Company, Russia's leading freight operator shipped 31.2 million tonnes of freight in the first half of 2008. PGK began operating late last year.

According to the report, in the first half it carried 10.3 million tonnes of petroleum cargo, 8.7 million tonnes of hard coal, 6.7 million tonnes of cement, 2.1 million tonnes of construction freight, 1.7 million tonnes of ores, 0.6 million tonnes of iron and steel, and over 1.2 million tonnes of other freight.

Russian Railways owns 100% of PGK. The company was formed in July 2007 with charter capital of RUB 86.6 billion. PGK began to independently operate its train car fleet in November. The company currently owns over 200,000 wagons, 75,000 tanker wagons, 47,000 open box wagons, 15,000 flat wagons, 14,300 box wagons and about 49,000 wagons of other types.

Updates on steel prices on daily basis

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

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

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

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

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

Mr N Sharma of SteelGuru.com said that “We have been receiving requests from Steel Trade Today subscribers for domestic steel prices during the last 3 years of SteelGuru’s operations. The volatility in the steel market in last 6 months to 8 months also propelled us to put it up quickly.”

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

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

Update on Mechel power segment preliminary results

Mechel in a recent announcement on power segment for 2008 announced the following

1. Revenue in Mechel’s power segment is expected to exceed USD 190 million increase of about 10 times over revenue of USD 19.1 million in the first quarter of 2007. It is expected that net income for the segment will amount to approximately USD 15 million an increase of more than six times net income of USD 2.5 million reported in the first quarter of the last year.

2. Gross profit is expected to exceed USD 100 million compared