TATA BlueScope orders for coating lines for Jamshedpur

Siemens VAI Metals Technologies received an order to engineer, supply, erect and commission a color coating line and a hot dip zincalume line from TATA BlueScope Steel Ltd. These two lines will be installed at Jamshedpur in India. The color coating line is to start production at the end of 2009 and the hot dip zincalume line in 2010.

The hot dip zincalume line will have an annual production capacity of 250,000 tonnes and the color coating line will be able to handle 150,000 tonnes of steel per year. For both the processing lines, Siemens is to engineer and supply all the mechanical and electrical equipment as well as the basic and process automation. Siemens is additionally responsible for the installation work and will supervise commissioning.

The design is based on optimized synergy of equipment between both lines. Main key equipment will be manufactured and tested in the Siemens VAI workshop at Montbrison in France. The contract execution will be led by combined Indian and European teams to ensure seamless cooperation with the customer teams.

TATA BlueScope Steel Ltd is a 50:50 JV of TATA Steel Limited and BlueScope Steel Ltd of Australia. The company is currently building a production complex at Jamshedpur in the state of Jharkhand in India, for the manufacture of high quality surface treated steel for use in the building industry.

TATA Steel Global plans to list on LSE

Live Mint reported that India’s largest private steel maker TATA Steel Limited plans to list TATA Steel Global Resources Limited, the holding company for its steel and raw material assets outside India on the London Stock Exchange to raise funds for acquiring iron ore and coal mines.

As per report it will also use the funds to repay part of the debt it took to buy Corus Plc. The report added that “Preliminary work on listing TATA Steel Global has begun at Bombay.”

Mr Koushik Chatterjee CFO of TATA Steel said that “We will reorganize our group structure to unlock shareholder value over the next 6 months to 12 months for growth in raw material assets and new market strategies.”

He added that “We are looking at an overseas group structure below TATA Steel to create the appetite for acquisitions. Since it would require capital, we are looking at various options.”

Heavy rains depress long product prices at Kolkata

There is decline in the prices of input materials, semis and long product in the last 4 days at Kolkata due to heavy rains resulting in dip in construction activity in the region.

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

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Inclusive of ED and VAT
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On the contrary the price for HRC, 2.5 mm in tube making grade the prices have gone up by INR 3000 per tonne due to supply side constraints

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

(Sourced from www.steelprices-india.com)

12 major ports record 8.8% rise in throughput in Q1

BL reported that in the first quarter of the current fiscal April to June 2008 or 2009, the traffic throughput in 12 major ports posted 8.8% growth at 133.88 million tonnes as compared with 122.99 million tonnes in the corresponding period of 2007-08.

Volume Change

Volume in million tonne

During the period under review, in volume terms, Kandla port continued to occupy the number one position with a total traffic throughput of 18.26 million tonnes, thus posting 17.74% growth. However, in terms of growth, Jawaharlal Nehru port topped the list with 18.8% at 14.97 million tonnes though volume wise, it was number3.

In volume terms, Visakhapatnam, with a throughput of 17.05 million tonnes ranked number 2nd and in terms of growth, Tuticorin up by 18.42% at 5.48 million tonnes. However, in volume, Tuticorin ranked 10th. In terms of growth, Visakhapatnam was 6 at 12.18% and Kandla 3rd at 17.74% followed by Paradip 17.3% and Mormugao 16.15%.

In volume, Paradip ranked seventh with a throughput of 11.3 million tonnes and Mormugao eighth with a throughput of 10.21 million tonnes.

In volume, Chennai ranked fourth at 14.6 million tones, followed by Kolkata 13.75 million tonnes. However, Chennai posted 6.72 % growth, while Kolkata a meagre 2.86%. Ennore posted 8.08% growth at 3.07 million tonnes.

The 3 ports namely, New Mangalore, Mumbai and Kochi, posted negative growth. For New Mangalore, the decline was highest 8.91% at 8.14 million tonnes, followed by Mumbai 5.63% at 13.12 million tonnes and Kochi 1.3% at 3.8 million tonnes.

Long products at Chennai see correction in first 10 days of July

Subsequent to the assurance given by steel majors that they would not increase prices in short term on July 3rd 2008, log product prices have seen major correction at Chennai market as compared to high on July 1st 2008

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

The downward trend is attributed to sever dip in scrap prices in the region.

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Inclusive of ED and VAT
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(Sourced from www.steelprices-india.com)

Pencil ingot starts recovery at Mandi Gobindgarh

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This has also resulted in recovery of prices of patra

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

(Sourced from www.steelprices-india.com)

Raipur steel market starts recovering

It is reported that after correction in the first 9 days in July 2008, the steel market has started recovering at Raipur.

Input materials

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

Feed materials

Price in INR per tonne
Inclusive of ED and VAT
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Long products

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

(Sourced from www.steelprices-india.com)

SC vacates stay on Adani SEZ

PTI reported that in a major relief to Adani Group, the Supreme Court vacated the stay order that stalled work at its INR 7,400 crore multi product Special Economic Zone in Gujarat.

A bench headed by Chief Justice K G Balakrishnan, while dismissing the petition of fishermen as withdrawn, asked the Adani Group not to fill the creeks.

The apex court, on a plea by fishermen that the project would affect their livelihood and flora and fauna in the region, had last week directed the parties to maintain status quo with regards to all activities taking place on the land.

It had also issued notice to the ministries of commerce, and environment and forest, the Gujarat government, Mundra Ports and Special Economic Zone, the Adani group and others.

Mundra SEZ, established under the SEZ Act of 2005, is proposed to come up in about 6,000 acres of land with a total investment of INR 7,400 crore.

New service for steel prices in India

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

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

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

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

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

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

SAIL RSP drive for fitness

In its endeavor to improve the quality of life of the residents of different sectors of the steel city, Rourkela Steel Plant has developed the fifth ‘fitness path. The plant was inaugurated by Mr BN Singh MD of RSP.

As per report this fitness path cum children’s park has been developed in an old park that was lying in a dilapidated condition. Apart from construction of the fitness path, several steps were taken for the beautification of the park. These included revamping of the boundary walls, cleaning and white washing, installation of a see-saw, repairing of the swing, the slide and sitting arrangements.

The salubrious surrounding and serene ambience of the park will undoubtedly attract not only the fitness enthusiasts but will also encourage others to adopt a healthy life style.

Similar fitness paths have been developed earlier at Sector-19, Sector-6, Sector 13 and Sector-22.

RSP has adopted a multi pronged strategy to improve the quality of life of residents of the steel township. The focus is on the expectations of the residents that include convenience, comfort, safety and aesthetics. Apart from construction of fitness paths the other jobs taken up in this direction are repair and maintenance of residential buildings and market buildings, improvement in illumination of Ring road and street roads and special focus on tree plantation and development of parks.

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. 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

BEML secures export orders worth INR 2.07 billion

It is reported that Bharat Earth Movers has bagged orders worth INR 2.07 billion to export hydraulic excavators, rear dump trucks and bulldozers to Indonesia.

As per the report, 1 order for 93 equipments valued at INR 1.58 billion is from Indonesia Fajar Bumi Sakti for deployment at its open cast coal mines. The 2nd order for 34 equipments worth INR 490 million is from Singapore’s Far East Resources & Mining Company for their coal mines in Indonesia.

BEML plans to establish a sales office cum repair facility and spares depot at Balikpapan in Indonesia in 3 months to provide 24x7 after sales support to its customers.

BEML is focusing on increasing market penetration in Asia Pacific, West Asia and Africa. BEML plans to achieve a sale of INR 36 billion in 2008 or 2009.

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

India and China trading up by 45.6 YoY

According to latest statistics from Indian commercial department, India & China trade volume in the first 11 months of 2007 or 2008 fiscal year recorded USD 33.77 billion up by 45.6% YoY.

Among this, the export to China gained USD 20.16% billion to USD 8.96% billion accounting for 6.27% of the total export of these country. China has become Indian third biggest export destination.

The 5 major items for export to China contain iron ore, other ores, non ferrous metal, plastics and asphalt felt products and dye.

Iron ore in particular took by 92.14% of the country's total export of this resource, as equal as 45% of total export to China.

Era Infra announces formal entry into power sector

Era Infra Engineering Ltd, which is primarily in business of construction & development of Highways, Railways, Power Plant, Airports, Urban Infrastructure and Housing etc, has informed BSE that it is now expanding its horizon in power sector.

The release said that “In pursuance of this objective, the company is going to establish a thermal power plant of 1200 MW in the State of Madhya Pradesh. In this pursuit the company has initiated relevant steps and procedures for obtaining various clearances and permissions from concerned departments.”

Era Infra has, in this regard entered into an agreement to sell for the purchase of land in Madhya Pradesh on July 8th 2008.

Sterlite and union reach agreement for Asarco

The unions representing the workers of ASARCO LLC and Sterlite Industries Limited, a subsidiary of Vedanta Resources plc and a party to an agreement to acquire substantially all assets of ASARCO, jointly announced that they have reached agreement on the terms of the collective bargaining agreement that would go into effect once the proposed acquisition is approved by the bankruptcy court overseeing ASARCO's chapter 11 case.

The new collective bargaining agreement, which fully retains all existing worker benefits, contains terms that are designed to ensure that ASARCO's operations will be improved and made more competitive. There are also strong commitments to ensure that Sterlite invests in and operates all of ASARCO's existing operations. The parties have also agreed that the term of the current agreement expiring in 2010 will be extended by three years to 2013.

Mr Anil Agarwal chairman of Sterlite said that “We regard our employees as a vitally important part of our business and are extremely happy to have concluded a mutually satisfactory agreement with ASARCO's representatives. We look forward to working with the unions and ASARCO's highly-skilled employees. Sterlite is also pleased that it has been granted bid protections by the bankruptcy judge, which represents another important milestone in the acquisition process."

Mr Terry Bonds chairman of the ASARCO Union Negotiating Committee. Said that "The unions are pleased that an agreement has been reached with Sterlite. We believe that Sterlite, with its strong experience in the copper business, will strengthen ASARCO's operations for the long term benefit of all stakeholders, including its employees.”

Mr Joseph Lapinsky CEO & president of ASARCO said that "This reflects the confidence and commitment of Sterlite and bodes well for the long term growth of ASARCO.”

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

Meghalaya rail project to commence shortly

IRIS reported that the Indian railway ministry has set in motion plans to bring Meghalaya into the India railway map. A proposal to construct a 141 kilometer railway line from Byrnihat on the Assam to Meghalaya boundary to Shillong has been cleared by the ministry.

Mr R Velu state minister of railways said that the preliminary survey and processing have already started and the ground work is likely to begin in 2009, once land is acquired.

He added that the North East Frontier Railway has to negotiate the altitude by providing tunnels and contour lines to lay the track. The project is part of the 24 projects undertaken by the NF railway in the northeast in the 11th Plan.

According to the report, 2 other lines, one connecting Dudhnoi in Assam to Mendipathar in Meghalaya and another connecting Azara and Byrnihat will also come up simultaneously.

Shortfall in SCI ordering for vessels

BS reported that India's largest sea carrier Shipping Corporation of India has been able to place orders for only half of its planned order for ships estimated for the 11th 5 year plan as shipyards across the globe are overbooked and have a long waiting list.

As per report SCI has placed orders for less than INR 7,000 crore of vessels as against a planned investment of INR 14,000 crore earmarked for the plan ending in March 2012.

Mr S Hajara chairman & MD of SCI said that "So far, we have placed order for 28 ships costing around USD 1.6 billion. We are planning a Greenfield shipyard in the current financial year with a domestic or foreign partner."

He added that “Indian flag carriers have been losing out on shipping orders as they lack vessels. These carriers have the first right of refusal to carry domestic cargo. Still, they could cover only 14% of the domestic cargo business.

Mr Vikram Suryavanshi said that "Shipyards are full and the unavailability of second hand vessels would impose a big challenge for acquiring new vessels."

He said that out of the 28 ships of 2.4 million DWT capacity booked so far, the company is expecting the delivery of 2 container carriers and 1 very large crude carrier in October 2008. Most of the remaining orders will be delivered from 2009 onwards.

Construction starts at engineering cluster at Nashik

BS reported that phase one of an engineering cluster set up by Nashik Industrial Co operative Estate under the Industrial Infrastructure Upgradation Scheme has commenced.

As per the report, this project will be fully operational within a year, for which NICE has formed a Special Purpose Vehicle titled as ‘Nashik Engineering Cluster'.

In the first phase, the CAD/CAM/CAE training centre activities have commenced at NICE premises with an aim to pass on benefits of the scheme immediately to the industries.

The phase II will provide Rapid Prototyping, CNC Machining Centre, Specialized Heat Treatment, Inspection/Testing facility, Calibration Centre and other common facilities.

Maharashtra Industrial Development Corporation has allotted 4 acre plot in its Ambad areas. The building for engineering cluster project will be completed within a year. The total project cost for is around INR 67 crore of which INR 50 crore will be contributed by the central government while NICE and Nashik Municipal Corporation will contribute INR 9.26 crore and INR 8 crore respectively.

Around 1,650 engineering and electrical industries have scattered in and around Nashik. Considering the strong base of engineering & electrical industries and with an aim to make local SMEs globally competitive, Nashik Industrial Co operative Estate took initiative to form engineering cluster at Nashik. The industries from Nashik district, Jalgaon, Dhule and Ahmednagar will also avail the facilities of engineering cluster.

Indian shipbuilders expanding on overseas demand for vessels

BS reported that Indian shipbuilders are expected to invest INR 20,000 crore in the next five to six years to enable them grab the growing demand for ships from Japan, Korea and China. Indian shipbuilding yards have started posting good profits in the past four to five years on the back of strong demand for new ships from international operators. The scarcity of shipbuilding yards in these countries up to 2012 will help Indian shipbuilders increase their market share globally.

Today the global market leaders in ship making are China, Korea, and Japan, with China commanding a 35% market share. India's share of the global shipbuilding market is expected to increase to 5% by 2020 from the current 1%.

Mr Ray Stewart CEO of Pipavav Shipyard Ltd said that traditionally, Indian yards focused on the small and medium segments but the current orders are dominated by offshore supply of boats and bulk carriers. In the last 18 months, orders worth around USD 1 billion for building Panamax vessels have come to India.

He said that “Profitability of the yards too has gone up mainly because price of ships has doubled in the last four years. In 2006, the price of a ship increased to USD 45 million from USD 20 million.” He further added that "If the government gives back the subsidies it withdrew last August, the industry can do better.”

The central government is also planning to set up two shipbuilding yards, one each in west and east coasts, with an investment of USD 1.57 billion. The proposed investments will not only increase capacity, but will also put India on the global shipbuilding map along with other competitors in the region.

Mumbai sea link lanes increased from 6 to 8

It is reported that Maharashtra Cabinet's committee on infrastructure has decided to enhance the scope of Mumbai Trans Harbour Link project connecting to Sewari and Nava Sheva. Now the project will have 8 lanes instead of earlier plan of 6 lanes. This will increase the cost of project from INR 6,000 crore to INR 7,700 crore.

Mr Anil Deshmukh PWD minister said that "The CCI has decided to give the responsibility of raising the funds for the project to the Mumbai Metropolitan Regional Development Authority and executing it to Maharashtra State Road Development Corporation. If everything works according to plan by April or May in2009, we will be in position to give work orders for Engineering Procurement and Construction contract."

The CCI also accepted the proposal by the MMRDA on how to recover the cost incurred on the project. Under the plan, besides levying of toll on vehicles impact fee will be levied on the real estate transactions in areas which will see escalation in the prices because of the construction of the MTHL and commercial exploitation of areas near MTHL will be also allowed to MMRDA.

The MMRDA, which has cash reserves of around INR. 10,000 crore, will contribute INR 2,400 crore for the project and also take the responsibility of paying back the debt which will be raised to fund the project.

Indian Railway FDC sees huge cost blow out

BS reported that with prices of inputs like steel and cement sky rocketing in the last 2 years, the Dedicated Freight Corridor Corporation of India Limited will have to put in an additional INR 11,000 crore to fund the ambitious eastern and western freight corridor project.

As per report, the initial investment envisaged by RITES Limited in its feasibility study report submitted in 2006 was INR 28,181 crore for constructing nearly 2,762 kilometers long rail corridor. However, the project cost has now gone up by a staggering 40%.

The prices of steel have increased by 77% from INR 26,951 per tonne in 2006 to INR 47,800 per tonne in 2008. Similarly the prices of cement up went by 44% from INR 163 to INR 235 per 50 kilogram bag. These 2 commodities together constitutes nearly 40% of the total input cost of the project.

Mr Kuljeet Singh partner Ernst & Young said that "This is not an unusual thing. It is happening across the sectors. But when it comes to government funded project, the initial study report may ignore the future inflation or may incorporate a nominal 3% to 4% inflation level. With this kind of cost escalation, the financing stream will have to be expanded. And getting a proper funding system in place in time will be quite challenging for the railways."

A senior official of Dedicated Freight Corridor Corporation of India Limited said that "The proposal to electrify the western corridor route comprising 1,483 kilometer from JNPT to Dadri alone has put an additional burden of nearly INR 2,000 crore on us. But we are confident of raising sufficient amount from various multilateral agencies."

The Indian Railways are still negotiating with Japan International Cooperation Agency, which had shown interest in financing a portion of the 700 kilometer route between Rewari and Baroda on the western corridor. For the remaining portion of the eastern and western corridors, the committee constituted by the World Bank to conduct a financial feasibility study had finished its task and submitted its report to the World Bank.

EU steel user body concerned with soaring steel prices

Orgalime the European engineering industries association said that European steel producers seem determined to squeeze the European lemon, announcing additional massive price increases that further threaten the competitiveness of the European steel processing industry and the whole supply chain including metal transformation, machine building, shipbuilding and manufacturing of marine equipment, car suppliers and household producers, inevitably leading to higher prices.

It added that “With decisions by the European Commission on current anti dumping proceedings still pending, Chinese and other independently traded exports into Europe have practically stopped, leaving the European steel producers to write their own blank cheques. Even with on going contracts, price hikes have led European steel producers to put pressure on European consumer industries to pay extra.”

Mr Adrian Harris secretary general of Orgalime said that “The effect of these price increases, at a time of shortage of EU sourced steel, will cascade through the supply chain, reducing Europe’s competitive edge and leaving European industry and therefore consumers to foot the bill. This is an unacceptable strategy from the European steel producers who are using anti dumping proceedings to achieve short term gains at the expense of the rest of manufacturers and of consumers in Europe.”

Mr Harris said that whilst steel demand in Europe has remained high, the steel producers’ strategy to lodge anti dumping proceeding to prevent imports from Chinese steel is already paying off. Indeed European steel producers have in practice already succeeded in disrupting normal steel trade flows by independent traders and practically stopped Chinese and other steel imports into Europe.

He added that “I said last October 2007 when the anti dumping proceedings looked imminent that it just does not make sense to hit the competitiveness of the EU’s metalworking and mechanical engineering SMEs, which provides over 7 million jobs throughout the EU, to protect the interests of an industry, which, through its increasingly global development and lack of investment in new capacity in Europe, now only provides 250.000 jobs in a few European countries. For us matters are simple: our companies must have access to the supplies of steel they need at competitive market conditions. If our traditional suppliers in Europe can provide these, all the better. If not, we need to find alternatives for our companies to be able to continue manufacturing here or move production to other locations”.

He concluded that “Despite the rise in global costs of iron ore, energy, transport and environmental obligations the price of European steel against the rest of the world seems unnaturally inflated. This must be a concern to policy makers at a time, when they are trying to bring inflation under control.”

Orgalime is the European federation representing the interests at the level of the EU institutions of the European mechanical, electrical, electronic and metal articles industries as a whole. Orgalime’s member federations directly or indirectly represent some 130,000 companies of an industry which employs some 10.9 million people. The companies which are overwhelmingly small and medium sized enterprises cover a broad industry cross section in terms of product, market segment and geographical spread. The engineering industry is the largest industrial branch in the EU, with a turnover in the order of EUR 1,813 billion per year. The industry accounts for some 27% of the EU’s manufactured output and a third of manufactured exports.

Klockner concludes sale of Namasco to Samuel

Klöckner & Co announced that it has concluded the sale of its Canadian subsidiary Namasco Ltd to Samuel, Son & Co Ltd. The sale has been approved by Canadian antitrust officials.

The primary business of Namasco Ltd is processing flat rolled metal products for the North American automotive industry. The focus on OEM-accounts in automotive is not one of the core businesses at Klöckner & Co Group.

Dr Thomas Ludwig CEO of Klöckner & Co AG said that "By divesting ourselves of Namasco Ltd, we are focusing on our strengths. Particularly since we acquired the US companies Primary Steel and Temtco Steel, we have become one of the leading providers of high quality heavy plates in North America.”

Kobe Steel sells its NA steel powder business to Hoganas

Kobe Steel Ltd has reached agreement to sell the business of its US based subsidiary Kobelco Metal Powder of America Inc to North American Höganäs Inc, a subsidiary of Sweden's Höganäs AB. The agreement was signed on July 9th 2008 at Pennsylvania in USA.

The agreement calls for KOMPA, located at Seymour in Indiana to shift production and marketing of its steel powder to North American Höganäs over a brief period as customers transition to the material made by the subsidiary of the Swedish group. During this period, KOMPA will produce steel powder products under consignment from North American Höganäs. KOMPA expects to cease powder production in spring 2009 upon completion of transitioning its customers' requirements to North American Höganäs.

To support the smooth transition to North American Höganäs, KOMPA and North American Höganäs will form a new company called KHTech Inc. This joint venture company will provide technical services and sales support primarily to KOMPA's Japanese customers in the United States as well as to its other current US customers. KHTech shall be owned two-thirds by North American Höganäs and one third by KOMPA.

Ferrous shredded scrap up again for July in US market

Platts reported that US ferrous scrap prices are rising in July 2008 after falling in June 2008 and despite recent softening in Europe, pushing the Platts price assessment of shredded scrap delivered to Midwest mills to a range of USD 590 to USD 610 per long ton or a midpoint of USD 600 per long ton.

Still in short supply, prime scrap again led the way upward, fetching USD 875 per long ton to USD 900 per long ton, while cut grades including plate and structural and heavy melting grades followed prime increasing to USD 550 per long ton to USD 600 per long ton.

Platts reported following recent scarp related transactions
1. Shredded scrap for USD 605 per long ton, local delivery including USD 10 freight
2. Prime bundle and busheling for USD 890 per long ton FOB yard
3. Plate and structural for USD 600 per long ton FOB
4. Shredded scrap at USD 600 per long ton delivered
5. Prime at USD 890 to USD 910 per long ton

MEPS sees continued firmness for flat products

UK based MEPS said that “The world average carbon flat products price continued its inexorable rise in June. The increase was slightly above our expectations as the mood in Asia changed when it became clear that the iron ore settlement by mills in the region would be higher than originally anticipated.”

MEPS added that “Demand remains rather flat in the EU and US. However, the import threat continues to decline in both geographic areas. Consequently, supply is tight and substantial price increases are being imposed on customers on a monthly basis.”

MEPS said that “A similar picture has been noted in the long products sector, with price hikes of almost 55% since January. Rapidly rising scrap costs led to significantly higher selling values in the EU. A similar picture was recorded in the North American and Asian markets but the gains were slightly lower.”

For flat products MEPS said that “The higher than expected iron ore contract settlement in Asia has prompted us to upgrade our forecast for global steel prices over the next twelve months. We now envisage average transaction values in that region moving to figures above our previous projections. These rising values will almost certainly limit the potential for escalating export sales to the west in the short/medium term. As a result EU and US steel prices are likely to stay stronger for longer. Furthermore, with the expectation of steadily rising selling values in Asia and fewer exports to the industrialized nations the anticipated price correction in early 2009 is likely to be less severe.”

For long products MEPS said that “The substantial hike in the iron ore price settlement for Asian mills will push up steelmaking costs in China and other Asian countries. This, in turn, is likely to reinforce the high scrap prices in a global market which is already showing signs of shortfall. Long products selling values are, we believe, nearing their summit in this cycle in the EU and North America. Further gains are probable over the next six months in Asia. We now forecast the average world long products price at a slightly higher figure of USD 1070 per tonne into the final quarter. It is also now expected that the price correction around the turn of the year will be less dramatic. The price increase in the world average long products price through 2008 is now expected to be almost 63%.”

Klockner H1 operating income up by 60% YoY

Klöckner & Co achieved a result during the first half of 2008 that significantly exceeds market expectations, despite a cooling global economy. The preliminary operating result totals EUR 310 million, about EUR 115 million above the same figure last year of EUR 195 million.

Klockner said that the driving forces behind this increase of nearly 60% were mainly the successful transformation of price increases for steel products into higher gross margins and the contribution of acquired companies. The preliminary operating result for the second quarter is about EUR 200 million, nearly 100% above the previous year’s level of EUR 103 million.

Dr Thomas Ludwig CEO of Klöckner & Co AG said that "Following the extremely successful first half of 2008, we expect to achieve results during the second half of the year that will exceed last year’s level. For the entire year, we expect to generate an operating result that surpasses the present market expectation of about EUR 480 million.”

SSI plans to build BF

Bangkok Independent Newspaper reported that hot rolled steelmaker Sahaviriya Iron and Steel plans to build an upstream steel blast furnace in the very near future. The project will take three years to complete and when finished will have a production capacity of 7.5 million tonnes a year.

Mr Win Viriyaprapaikit president of Sahaviriya Iron and Steel said that "Once we receive an environmental impact assessment and win tax incentives from the Board of Investment, we will start our investment immediately. The longer we postpone our investment project, the less competitiveness we'll have in the future after Vietnam completes its largest steel blast furnace."

He said that the Thai government and public authorities should understand the need for the Kingdom to establish an upstream steel blast furnace to reduce steel imports, worth THB 400 billion a year, as well as to secure the raw materials used in making steel.

According to the report, SIS should take advantage of the fact that the top four steel companies have submitted letters of interest in setting up smelting plants in accordance with BoI criteria.

Mr Win Further said that these four companies cannot draft specific plans, because they still must wait to see the government's policy regarding the Southern Seaboard and BoI privileges. Hence, the sooner we operate our smelting plant, the more competitive we will be.
Earlier, SIS received BoI approval for the project, but the company failed to start it, because of financial problems and strong resistance from the local community. However, SIS has become the leader in a consortium with Sino International Heavy Industry Technology, the project's turnkey service provider. In addition, it is negotiating with Chinese commercial banks and the Export Import Bank of China for THB 50 billion worth of loans for its first phase, which will have a production capacity of 5 million tonnes a year.

Permits required for steel imports and exports in Vietnam

It is reported that Vietnam Steel and iron imports and exports will require permits under a new Ministry of Industry and Trade decision issued Wednesday.

The temporary practice is designed to improve the monitoring of the domestic market.

The ministry’s Export-Import Management Departments will issue licenses within three days of applications being received from businesses that want to import or export steel and iron.

Glencore and Bolivia in talks for Vinto tin smelter

Bolivian news agency ANF reported that Swiss metals trader Glencore International and the Bolivian government are advancing on an agreement regarding the Vinto tin smelter, nationalized last year and the company's Colquiri and Porco tin mines.

The newspaper quoted Mr Alberto Echazú mining minister as saying that we are wrapping up the details for a definitive agreement that covers all three operations and eliminates the possibility of mediation or other legal measures.”

He added that among the main points holding up the talks is the question of how much Bolivia will pay Glencore as indemnity for the February 2007 expropriation of Vinto.

According to the report, the government has convinced Glencore to accept the creation of 50:50 JVs with state miner Comibol at Colquiri and Porco but the two sides still must define a figure to compensate investments the Swiss company has made in all three assets.

The smelter produces 800 tonne per month of tin but aims to reach 1,000 tonnes per month this year through modernization initiatives. It is also undergoing a diversification plan aimed at treating other minerals such as zinc, copper and bismuth.

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.

Vietnam steel productions and consumption increases in H1

VNA reported that Vietnam production and consumption of steel have increased in the first half of the year despite rising steel billet prices.

According to Vietnam’s Ministry of Industry and Trade, steel industry produced 1.96 million tonnes of steel and sold 1.83 million tonnes in the period up by 6.7% YoY and 8.2% YoY respectively.

The ministry said, however that June saw a record decrease in steel sales with only 250,000 tonnes sold a drop of 60,000 tonnes from May, due to falling demands in the rainy season and the government’s budget tightening measures to fight inflation.

The world and domestic steel markets have been suffering from sharp rises in billet prices, which rose from USD 760 per tonne -USD780 per tonne to USD 1,000 per tonne – USD 1,150 per tonne over the past six months as a result of Chinese policy to limit billet export.

Chung Hung Steel to cut HR output in Q3

According to spokesman of Chung Hong Steel, it plans to cut hot rolled coil output by 5% to 10% to 180,000 tonnes per month in the third quarters of this year due to the soaring slab prices.

He said the hot rolled coil produced at present could not gain profit due to the current high slab price.

It is reported that Chung Hong Steel has already cut 16% to 20% output for the second quarter to 190,000 to 200,000 tonnes, lower than the normal 220,000 to 240,000 tonnes for each month.

As per report, China Steel Corp, the parent company of Chung Hong Steel stopped supplying slabs to Chung Hong Steel for the third quarter due to its No 1 blast furnace stopped operation.

CHS raises steel prices again

Taiwan’s Chung Hung Steel has announced to raise its domestic price list for July by TWD 2,000 to TWD 3,000 per tonne as expected and China Steel Corp has also increased its price.

In terms of export market, CHS increases its CR price by USD 80 per tonne for August shipments and CSC raises the third quarter price by USD 200 to USD 230 per tonne.

Currently CSC’s export price to Southeast Asia is being quoted between FOB USD 1,200 to USD 1,205 per tonne and CHS’s price is around FOB USD 1,210 to USD 1,225 per tonne. Besides, downstream mills are expected to follow the step to hike price of flat products.

Ahmsa to build 400MW coal fired plant

BNamericas reported that Mexican steelmaker Altos Hornos de México is in the process of seeking authorization for the construction of a 400MW coal fired plant in Mexico's Coahuila state.

Mr Francisco Orduña Mangiola a spokesman of Ahmsa told BNamericas that the plant will use fluidized bed technology and will be used to provide energy to the company's steel operations.

The spokesperson said that once all permits are in hand, construction of the plant should take roughly two years, adding that Ahmsa wants to be able to replace as much petroleum and third-party electricity supply as possible with self-generated energy.

Mr Orduña said that Ahmsa will also take advantage of the gases released by coal. When coal is coked, methane gas is released, we trap and utilize that methane gas to make energy.

HDG market experiencing high volatility in EU market

It is reported that although price of hot dip galvanized steel in EU kept rising, market participants still felt nervous about the future of the market as a result of weak demand, and an EU anti dumping duty on China’s imports.

It said that many European buyers hesitated to place orders from China and would rather purchase materials locally in view of a shorter delivery time and low risk.

The participants in EU GI market anticipated that the price slipped in the near future, but GI price kept rising conversely mainly because of increasing raw material cost. No wonder, steelmakers even don’t know where the price will go in the near future.

Ruukki develops direct quenched steel

It sir ported that Ruukki has developed an unrivalled direct quenching method for rolling steel. The result is that customers’ products are lighter, more wear resistant and cause less environmental impact.

High strength steels have long been used in lifting, handling and transportation equipment to make equipment lighter and thus increase payload. High strength steels have traditionally been made using a method involving separate heating and quenching.

Ruukki’s active product development and collaboration with customers have resulted in direct quenched steels, which are considerably more wear resistant and stronger than traditional structural steels. Other benefits include lower energy consumption and thus environmental loading, as well as improved steel quality and shorter delivery times.

Ruukki’s direct quenching method developed at the Raahe Works in Finland has taken Ruukki to the cutting edge in the production of hard and high strength steels, even by international standards. Strong growth in demand for special steels shows that the products are meeting customer needs.

Investments of around EUR 100 million have been made in steel production and the rolling mills at the Raahe Works to ensure production capacity and high product quality also meet considerably greater demand than at present. The latest stage in the investment program is a direct quenching unit for plates, which started up in 2007. However, production equipment alone does not ensure good end results. Direct quenching also calls for good process control and expertise on the production line, in product development and throughout the order to cash process.

EC meets Polish treasury minister for shipyards state aid

It is reported that European Commissioner for Competition Ms Neelie Kroes met Polish Treasury Minister Mr Aleksander Grad in Brussels on July 9th2008 to discuss state aid to the shipyards in Gdynia, Gdansk and Szczecin on the basis of the restructuring plans submitted recently by the Polish authorities.

Ms Kroes again underlined that, under EC state aid rules, the restructuring plans must
1. Ensure the long term profitability of the shipyards
2. Include adequate compensatory measures to limit the distortion of competition caused by the aid.
3. Be financed to a large extent from the companies' own resources.

Ms Kroes expressed serious doubts that the plans submitted comply with these requirements. The Commissioner made clear that the Commission intends to take a decision as soon as possible on the aid for the shipyards.

The Commission has to apply the same approach to the Polish shipyards as to shipyards in other Member States. The European shipbuilding sector went through a painful process of restructuring in the 1990s. For example, similar strict conditions were applied in the restructuring of German shipyards accompanied by a significant reduction of shipbuilding capacity. The German yards are now economically viable.

ABB signs USD 61 million frame agreement with Petrobras

ABB, the leading power and automation technology group has signed an exclusive USD 61 million frame agreement with Petrobras to supply process automation systems and related services to eight oil refineries in Brazil over the next five years.

Under the agreement ABB will supply its extended automation System 800xA for process automation with integrated substation automation functions, software and hardware, upgrades of existing installed ABB control systems, as well as other project management and engineering services. The agreement includes USD 29 million for engineering services.

ABB’s process automation technology will help Petrobras expand production at its refineries, maximize energy efficiency and optimize maintenance and operation costs. It will also help produce fuels with lower sulfur content, which have fewer emissions than other fuel blends.

Mr Veli Matti Reinikkala head of ABB’s Process Automation division said that “This important agreement underscores ABB’s commitment to providing the leading-edge technologies and services our customers need to compete and thrive in today’s global environment. As our petrochemical customers expand their operations to meet strong demand, we help them to achieve these targets while improving their overall productivity and energy efficiency.”

Brazil based Petrobras is an integrated energy company with activities in oil exploration, production, refining, marketing and transportation. Petrobras represents one of the largest installations of ABB automation systems within the petrochemical industry.

Pakistan Steel Mill hikes flat product prices for July

Pakistan Steel announced to increase its prices for hot rolled coil, section steel, heavy plate, cold rolled coils, galvanized coils, pig iron and coke and the new price will be effective on July 9th 2008.

As per report the company has raised its price as under
1. HRC to around USD 899 per tonne to USD 950 per tonne
2. CRC will be increased to USD 936 per tonne to USD 974 per tonne
3. Plate will be hiked to USD 709 per tonne to USD 840 per tonne.

Kibar Holdings begins building steel plant

It is reported that Turkey's Kibar Holdings has started to construct its 2 million tonnes per year flat products complex.

The plant and equipment is set to trial run in end 2009 and production to be scheduled in the first half 2010 but still wait for the permit of the hot strip mill and cold rolling mill.

As per report, the first stage will involve a USD 500 million investment in 2 million tonnes per year hot strip mill and 1 million tonnes per year cold rolling mill. The second stage is a USD 200 million investments in a 500, 000 tonnes per year galvanizing and pre painting line.

(Sourced from YIEH CORP)

Steel prices in UAE up by 15 %

Gulf Times reported that steel prices in the UAE have risen about 15 % so far this month as a construction boom in the GCC oil exporter has drained the building materials market.

Dealers said that a tonne of reinforcing steel bar fetched around USD 1,550 up from around USD 1,350 in the last week of June. An executive from a Gulf steel producer said he expected prices to hit USD 1,650 a tonne by the end of the month.

A Sharjah based trader said that prices of steel and other construction materials have not eased, even for a single week, since the beginning of the year and I don't see any signs of a downward trend. What we have now is limited supplies of steel, higher demand from construction contractors and costs of manufacturing steel at origin are going up due to inflation in these countries.

As per the report, global rebar consumption reached 218 million tonnes in 2007. Around 65 % to 70 % of consumption comes from the Middle East and Asia while the highest consumption per capita is in the UAE.

Know daily steel prices in Middle East Asia

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

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

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

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

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

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

Raymond to build infrastructure facilities in Saudi Arabia

It is reported that the Al Khobar based Raymond International Group has won contracts totaling more than USD150 million to build infrastructure facilities in Saudi Arabia.

As per report, the first contract involves the modification of boilers at the Ghazlan power plant to increase its overall power generating capacity. The work will be carried out with France's Alstom. The client is Saudi Electricity Company.

Raymond has won two further contracts to supply and apply corrosion resistant linings and coatings on more than 1,000 kilometers of steel water pipelines. The client is the Saline Water Conversion Corporation. It has also signed a contract with the local Saudi Polymers Company to install a large diameter glass reinforced plastic pipeline as part of the National Chevron Phillips petrochemicals complex in Jubail.

Samsung Heavy to deliver biggest LNG tanker to ExxonMobil

Bloomberg reported that Samsung Heavy Industries Company will deliver the world's biggest liquefied natural gas tanker to ExxonMobil Corp's venture in Qatar in August, adding capacity to the market for the cleaner burning fuel.

Mr CH Park executive VP for project planning recently in Busan, a port city where Samsung was contracted to make 11 tankers each of 266,000 cubic meter capacity the tanker, said that Mozah will supply gas to customers in the US and the UK at lower costs.

He said that the vessel can hold almost twice the amount of LNG as conventional tankers while it can save 30 % of transportation costs. Overall, it's 50 % more cost efficient than a traditional tanker.

Mr Park said that the price of a Q Max increased to USD 400 million currently from USD 300 million in 2005 when Samsung's yard was booked for the ship because steel and raw material prices have raised. A Q Max holds enough LNG to power South Korean households for more than two days.

Mr Park added that, for Samsung, the world's second largest shipyard, LNG vessels account for 30 % of revenue. Mozah took 15 months to build after the company cut steel in April 2007 and will be named on July 11th. He said that equipped with slow diesel engines that work more efficiently than steam turbines, these super sized tankers burn less fuel and produce 30 % less emissions compared with a typical tanker.

The Q Max has a re liquefaction plant that returns evaporating gas back to the storage tanks, maximizing the fuel cargo at the discharge port. Traditional tankers typically lose 0.15 % of cargo a day during a voyage.

Steel Building Systems to set up rebar plant in Abu Dhabi

Metal Worker reported that Adelaide based Steel Building Systems is going to take advantage of the high demand for housing construction materials in the Middle East. Starting with a plant in Abu Dhabi in 2009, the company expects to build nine plants in the region.

According to the report, the demand for housing in the booming Middle East is said to have driven the price of reinforcing steel. The venture is therefore expected to net the company USD 150 million worth of business.

Steel Building Systems is the purveyor of the Supaloc system which involves engineering BlueScope G550 high tensile TrueCore steel with computer aided design, resulting in high accuracy and precision.

5 firms bid for Ras Laffan and Mesaieed pipeline contract in Qatar

MEED reported that bids from at least five international contractors were submitted on July 6th for a major contract to build a gas pipeline between Ras Laffan and Mesaieed.

According to the report, the bidders for the estimated USD 200 million engineering, procurement, installation and construction contract are
1. Punj Lloyd of India
2. Larsen & Toubro of India
3. Dubai based Dodsal
4. Egpyt's Petrojet
5. Italy's Saipem.

The project, known as the strategic gas pipeline involves the installation of a 32 inch diameter carbon steel twin pipeline over a distance of 140 kilometers.

L&T is in line for another smaller gas pipeline project after submitting the low bid earlier this year. L&T's offer of QAR 450 million was enough to beat the three other bidders.

Turkey to add 16,500MW of Hydroelectric Power

Bloomberg cited Mr Veysel Eroglu Environment Minister of Turkey as saying that the country will build hydropower stations with a combined capacity of 16,500 megawatts within the next five years.

Mr Eroglu added that the generators will be built by non government companies at a total cost of about USD 25 billion and will play a key role in ensuring Turkey's energy security.

Mr Kemal Unakitan Finance Minister of Turkey said that the government is determined to remove obstacles to investment by local and international companies in Turkey's energy industry.

United Arab Shipping to fund acquisitions of new ships

MEED reported that Gulf International Bank is working on arranging up to USD 2 billion worth of debt for United Arab Shipping Company to fund the acquisition of new ships and the continued expansion of the business.

According to the report, the debt will be split between a USD 500 million corporate facility that is expected to be completed by mid July and a USD 1.5 billion ship acquisition facility that should be completed later in the year. The deal has been increased in size from the USD 400 million initially sought by the firm.

The report also added that, the USD 500 million loans for the Kuwait based company will have tenure of five years and is expected to be priced at 200 basis points over the London interbank offered rate with fees of between 100 and 125 basis points.

Six regional institutions are expected to form the banking group for the facility, including banks from Bahrain, the UAE and Saudi Arabia.

Saudi Land Bridge to oversee the USD 5 billion project

MEED reported that Saudi Arabia's Council of Ministers has licensed the establishment of a joint stock company to oversee the USD 5 billion Saudi Landbridge project.

According to the report, the Saudi Land Bridge Company will take over as the client on the project from the Saudi Railways Organization, once the winning consortium to develop the rail link is named later this year.

Riyadh has set up the new company to lead the project as a result of a conflict of interest arising from the SRO's position as both client and the owner of an existing stretch of track between Riyadh and Dammam. The SRO staff who had been working on the landbridge project will join the new company.

The report added that the Tarabot Consortium, led by Arabian Company for Power and Water Development, has been named as preferred bidder for the project, which will link Jeddah on the west coast with Dammam to the east through Riyadh.

ER-BAKIR modernizes CONTIROD® copper rod plant

ER BAKIR, Elektrolitik Bakir Mamulleri AS at Denizli in Turkey has placed an order with SMS Meer GmbH for the modernization of its existing CONTIROD® copper rod plant.

The aim of the comprehensive modernization measure is to increase the output from currently 18 tonne per hour to 30 tonne per hour of copper wire rod in the future. The modernization of the plant is scheduled for summer 2009.

The CONTIROD® plant was commissioned in 1999. SMS Meer’s modular design concept now makes it possible to easily integrate additional components into the line. For example, additional burners will increase the melting capacity of the shaft furnace, the energy efficiency will be improved by raising the height of the existing shaft furnace and a new higher-performance charging system will be installed to meet the higher melting capacity.
Further activities will include the modification of the HAZELETT twinbelt caster for a larger casting cross-section. At the same time, the fundamental principle of the solidification of the melt in a straight line with the associated benefits for the product quality will be retained. Two additional mill stands will be installed in the rolling mill to handle the larger casting cross-section.

During the course of the modernization, the electrical equipment of the CONTIROD® plant will be equipped with the latest PLC equipment. Process monitoring will be optimized to ensure a consistently high product quality. The new system components will also ensure the long-term availability of spare parts, a major advantage on the rapidly changing market for electrical automation.

Chinese steel export import in H1 of 2008

China customs said on its website that China exported 5.22 million tonnes of finished steel products in June 2008, down by 6.1% from May's 5.56 million tonnes.

China exported 26.94 million tonnes of finished steel products in the first six months down by 20.2% YoY.

In 10,000 tonnes

In 10,000 tonnes

In 10,000 tonnes

New PPGI line starts production at Tangshan Steel

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 thickness in 820 mm to 1250mm width 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 to 0.5mm thick PPGI in 1200mm width 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.

Analysis of Chinese steel exports scenario

According to market analysts China's finished steel export has surprisingly fallen to 5.22 million tonnes in June down by 6.1% from May's 5.56 million tonnes. Therefore, Beijing might not rush into any imminent export tax adjustment.

Mr Xu Xiangchun senior analyst of Mysteel said that “Beijing would take steps once domestic steel prices roar up sharply and the steel export touches the benchmarking line of 6 million tonnes.”

He added that “However, domestic steel prices have not shown sign of steep run up following corrections. And the June export is expected to decline as a result of plummeting shipment to Vietnam and domestic output cutback during the Olympics. Therefore, new export tax change looks set to be postponed.”

China's finished steel export has started to rebound swiftly during March to May after hitting a record low in February and set a new high of 5.56 million tonnes in May up nearly 16.4% from April. The rapid export bounce has fanned concern about export tariff change.

A host of analysts have suggested that China's steel export volume be capped within 10% to 12% of the country's crude steel output. If so, the steel export in May has already touched the ceiling of 12%. Some industrial insiders estimate that the if June steel export exceeds 6 million tonnes and accounts for 12.6% of the steel production given annualized crude steel output reaches 47.62 million tonnes, the annualized steel export is likely to surpass the upper limit of 12%.

Another steel analyst predicts that China's high steel export is here to stay and new export tax change might come within this year. And the steel export won't slump drastically in the short term following the new tax give such huge price spread with international market. Meanwhile, HR alloyed bar and rod shipment has soared by 264% YoY in the first five months as steel exporters have taken advantage of the loophole in the tax policy. Therefore, the authority might adjust the export tax on certain steel alloy products in the future.

Market analysts said that the export tax would help erase the long time image of cheap Chinese steel products. And the government could increase tax revenue and curb steel export as well. Moreover, higher export tariff is set to keep more supply to domestic market and help alleviate the price run up and ease inflation pressure.

(Sourced from MySteel.net)

China facing threat of tariffs on steel pipes in EU

It is 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 Defense 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.

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 Steel 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.

Chinese domestic HDG price soften but 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)

Chinese domestic construction steel price slightly slow down

It is reported that Chinese domestic construction steel market is quite slow this week and export offers are largely unchanged. Domestic market prices are still in adjustment and the dull period is expected to maintain for at least 2 weeks to 3 weeks.

Shanghai market prices
1. HRB335 20mm rebar- CNY 5260 per tonne to CNY 5270 per tonne
2. HRB400 20mm rebar - CNY 5500 per tonne to CNY 5530 per tonne
3. Commercial wire rod is at CNY 5520 per tonne
4. Hi speed wire rod - CNY 5860 per tonne to CNY 5870 per tonne.

Export offers for rebar with boron are about USD 1140 per tonne FOB to USD 1180 per tonne FOB and some small producers are quoting at about USD 1100 per tonne FOB.

Most suppliers wish to export rebar to Middle East Area to earn more profit since the landed price is about USD 1300 per tonne to USD 1350 per tonne CFR Dubai.

(Sourced from MySteel.net)

China influencing global trends for steel

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.

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Chinese 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.

Liuzhou distribution center to start operation by 2008 end

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 1 million 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)

Baotou Steel posts record output for H1 of 2008

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 4.449 million tonnes of merchant billet and steel products up by 10.63%.

Baotou Steel produced following volumes in H1 of 2008

In tonnes

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.

Dongfeng Motor to increase 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)

Maanshan Iron and Steel upgraded to outperform -Macquarie

XFN-Asia reported that Macquarie has upgraded China's Maanshan Iron and Steel's Hong Kong listed shares to outperform from neutral with strong steel prices offsetting the company's rising raw material costs.

Macquarie said sharp rises in spot hot-rolled coil prices in China have created a strong potential upside for the company's earnings. It said that "We anticipate that we will see further steel price forecast increases so we believe there continues to be upside risk."

Macquarie added that the company's share price has fallen substantially in recent weeks, with iron ore and coking coal prices soaring, making Maanshan the cheapest stock in our Chinese steel universe. It has raised its earnings forecast for the company by 4% for 2008 and 3% for 2009 to reflect sharp steel price rises and new raw material assumptions.

Macquarie's target price for Maanshan Iron and Steel remains unchanged at HKD 5.10.

ZPMC received USD 2 billion orders in H1 2008

It is reported that Shanghai Zhenhua Port Machinery Co Ltd, a world's No 1 heavy terminal machinery manufacturer, received USD 2.03 billion worth of orders during the first half of 2008 up by 32% YoY over USD 1.54 billion in the same period of 2007.

As per report, Zhenhua Port Machinery Co Ltd has obtained orders for 27 dual 40 feet container cranes which are self developed products of the company with high added value and higher technical content.

Zhenhua Port Machinery Co Ltd, which is integrating Shanghai Port Machinery Plant another crane giant in the country, has hold USD 7 billion orders in hand. After the integration, it will occupy the entire domestic market and 78% of the international market.

It is expected to achieve its 2009 production goal of USD 5 billion, USD 3 billion from port machinery products and USD 2 billion from offshore heavy industrial products.

NLMK orders for single stand CR reversing mill for Lipetsk

Novolipetsk Steel announced that it has entered into a contract with SMS Demag, the German company, to acquire a one stand reversing cold-rolling mill. The mill has an annual capacity of 350,000 tonnes, and the contract is worth over EUR 29 million. The new equipment will be supplied within five months.

According to the report, the facility is designed to process strips of high-strength carbon steels and will ensure production of a new steel product applicable in the automotive and construction industries.

The release added that the mill installation at the site in Lipetsk is scheduled for 2011 as part of Phase 2 of NLMK’s Technical Upgrading Program.

The main objectives of Phase 2 of NLMK’s Technical Upgrading Program for 2007 to 2011 include
1. Increase crude steel output from 9 to 12.4 million tonnes per annum.
2. 100% self-sufficiency in key raw materials.
3. Higher finished flats output from 5 to 9.5 million tonnes per annum as a result the refurbishment of NLMK’s existing rolling facilities and the acquisition of new rolling assets.

NLMK said that total investments into the 2nd stage of NLMK’s Technical Upgrading Program will exceed USD4.0 billion by 2011.

Nippon Steel to increase rail prices for Russian Railways

It is reported that Japanese Nippon Steel will engage in price talks with Russian Railways on rail price for 2009 shipments.

As per report, RZD's managements will visit Nippon Steel next week to discuss the issue. In the end of 2007, Nippon Steel won a 20,000 tonnes order of heat treated rails from RZD and now both of them agreed to continue their business relationship in 2009.

RZD purchases around 50,000 tonnes to 60,000 tonnes of rail per year.

(Sourced from YIEH CORP)

Khartsyzsk Pipe H1 2008 production down by 61.5% YoY

It is reported that Khartsyzsk Pipe Plant manufactured 21,000 tonnes of pipes in June which is half of the May 2008 output. In H1 2008 production is down by 61.5% YoY.

According to Millennium capital analyst “The lack of long term orders continues to weigh down on the company. The spot market cannot give them a sizable volume of sales and production. Even if the company wins the tender for the Central Asia China pipeline project, this event will not compensate them for the loss of the Russian market. We do not see the market drivers which can switch our view on Khartsyzsk Pipe from NEGATIVE to any other, because the last one simply died quietly.”

(Sourced millennium capital)

Q1 preliminary results for power segment of Mechel

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 with USD 5 million in the corresponding period of 2007 and operating income is expected to exceed USD 27 million an increase of approximately 670% over USD 3.5 million in the first quarter of 2007.

3. EBITDA in the power segment in the first quarter of 2008 is expected to amount to not less than USD 30 million approximately eight times higher than the USD 3.7 million reported in the first quarter of 2007.

4. EBITDA margin rose to more than 11% in the first quarter 2008 compared to 9.1% in the first quarter 2007.

Mr Vladimir Polin CEO of Mechel said that “Electrical power volumes generated in the first quarter of this year far exceed those of 2007 primarily based on the inclusion of the Southern Kuzbass Power Plant into Mechel’s structure. During last year we made a number of acquisitions in the power business and this year we took steps to develop the power assets management structure by consolidating of power-generating facilities to our OOO Mechel-Energo subsidiary.”

Mr Igor Zyuzin said that “Our anticipated financial results for the first quarter of 2008 demonstrate the effectiveness of Mechel’s integrated business model and strategy, as well as a market environment that has continued to be favorable, as well as our investments aimed at productivity enhancements and increased output of high value added products. In the first quarter we also moved forward with our plans to start construction of a railroad to Elga coal deposit. The commencement of operations at this deposit will enable Mechel to strengthen its position as one of the world’s coking coal market leaders. We believe that the record profit performance and our operational progress have created a strong foundation for Mechel to achieve good results for the full year.”

Jiuquan Steel to set up JV with Kazakhstan's IMR

China Knowledge reported that Jiuquan Iron and Steel Group has secured approval from Gansu Provincial People's Government to set up a joint venture with Kazakhstan mining company International Mineral Resources in order to gain access to Kazakhstan's rich iron ore reserves, according to industry reports.

According to the report, Jiu Steel will pay CNY 30 billion in the form of assets for a 51% stake in the joint venture while IMR has agreed to pay CNY 10.373 billion for the remaining 49% stake. IMR would supply iron ore at prevailing market prices to Jiu Steel in the future. The cooperation agreement will have a long tenure of 50 years.

Jiu Steel China 16th ranked steel maker will contribute its entire steel production assets and mines, as well as its holdings in its Shanghai-listed unit, Gansu Jiu Steel Group Hongxing Iron and Steel Co and in another firm, Yuzhong Iron and Steel Co to the joint venture.

Mr Mordashov buys shares in German TUI

Reuter reported that Mr Alexei Mordashov Russian billionaire has bought 4 million shares in German tourism and shipping firm TUI from Fiesta Hotels and Resorts

TUI said recently that Fiesta had sold its shares for EUR 17.50 each.

Mr Mordashov already owns 10% in TUI.

Mr Putin to monitor foreign investments

RIA Novosti reported that Mr Vladimir Putin PM of Russia has been appointed as chairman of a government commission to monitor foreign investment in Russia.

Mr Putin's deputy will be First Deputy Prime Minister Mr Igor Shuvalov while Mr Igor Artemyev head of the Federal Antimonopoly Service has been appointed executive secretary.

Other commission members include Deputy Prime Ministers Mr Igor Sechin, Mr Sergei Ivanov and Mr Sergei Sobyanin, Federal Security Service Director Mr Alexander Bortnikov and Economic Development Minister Mr Elvira Nabiullina as well as other ministers and government officials.

Any deals involving foreign investment in so called strategic enterprises will be subject to approval by the commission.

Gazprom could obtain Ukrainian oil licenses in Libya

RIA Novosti reported that Russian energy giant Gazprom could obtain licenses to oil and gas deposits in Libya previously offered to Ukraine's national company Naftogaz Ukrainy.

According to Kommersant, Ukrainian Naftogaz Ukrainy and Libya's National Oil Corporation signed a production sharing agreement in October 2004 on four deposits with estimated reserves of around 110 million tonnes of oil and 30 billion cubic meters of natural gas.

The paper said that the deal specified that Naftogaz would invest a minimum of USD 57.5 million in prospecting. However, the Ukrainian company has only invested a mere USD 16 million to date and suspended the development of deposits from early 2008.

The paper said Mr Alexei Miller CEO of Gazprom held a meeting with Libya's leader Mr Muammar Qaddafi on July 9th to discuss the possibility of developing a mutually advantageous long term partnership between Gazprom and the energy-rich North African country.

The paper said in particular, Miller offered to buy all of Libya's natural gas, oil and liquefied natural gas exports at competitive prices. It said Naftogaz and Gazprom have declined to comment on this information.

Bogdan Automobile H1 2008 output in line with production plan

It is reported that Bogdan Automobile Plant produced 41,369 cars in H1 2008 up by 63% as compared to H1 2007. The biggest contribution to these numbers was made by Hyundai and Kia.

Millennium capital analyst said “We think that the key point in this POSITIVE news is that the numbers are in line with Bogdan Automobile's production plan of 100,000 units for 2008.”

(Sourced millennium capital)

Rosneft to produce up to 213.15 million barrel off Vankor in 2015

RIA Novosti cited Mr Igor Sechin Deputy Prime Minister of Russia as saying that Russia's state owned Rosneft will produce 11 million barrels of oil at the eastern Siberian Vankor field in 2008 and up to 213 million barrels in 2015.

Vankor oil will be pumped through a 550 kilometer pipeline currently under construction. The Vankor-Purpe pipeline will have a capacity of 20 million metric tons and will be connected to the East Siberia-Pacific Ocean pipeline.

Mr Sechin who is also the chairman of Rosneft's board said that the government was considering the proposal of independent oil producers to establish an independent oil refinery in the country.

Mr Sechin said that "The construction of an independent oil refinery for supplies to the domestic market is being considered. He said that independent gas producers would be producing 215 billion cubic meters of natural gas a year by 2015.”

Vanco to appeal Ukraine license ban at Stockholm tribunal

RIA Novosti reported that a subsidiary of the US oil company Vanco will appeal a decision by Ukraine's government to revoke its license at the Stockholm arbitration tribunal.

Mr Yevgeniy Korniychuk first deputy justice minister of Ukraine said that "I learned that Vanco Prykerchenska has applied to the Stockholm arbitration tribunal."

According to the report, Vanco International signed a 30 year production sharing agreement with former premier Mr Viktor Yanukovych's government in October 2007 covering the Prykerchenska area just south of the Crimean peninsula. Under the deal, the company received a 65% stake and Ukraine 35% at the prospecting and development stage. The sides were to go 50 to 50 with the launch of commercial production.

Vanco International eventually transferred its rights to the Black Sea shelf development to its subsidiary, Vanco Prykerchenska Ltd which started to prospect hydrocarbons at the Prykerchenska bloc from the fall of 2007. However, the Ukrainian government said this mo