Orissa to report progress on steel projects to PMO

Asia pulse reported that Orissa government is likely to place a report on progress made in the steel sector including INR 51,000 crore POSCO India project in the state at a review meeting to be held at the PMO tomorrow.

Mr Ashok Dalwai Orissa's Steel & Mines Secretary said that "We are ready to attend the review meeting at the PMO tomorrow. He also claimed that 28 companies out of 46 that signed agreements with the state government to produce steel it has already started partial production.”

He said that the government would place the report before the PMO on the progress made in different projects, including the 12 million tonnes per annum POSCO India project proposed to set up near Paradip.

Mr Dalwai said that "Even as only 7 million tones per annum extra steel had been added to the previous steel production, many projects were progressing well to meet the target. He said that Orissa had been asked to attend the review meeting because it was one of the states with enormous potential in steel sector.”

Mr Pradeep Kumar Amat Orissa's Steel & Mines minister said that "Orissa will roughly contribute about 20% of India's steel production by 2020, the total targeted steel production of 290 million tones per annum in India up by 2020, Orissa would produce over 50 million tones per annum by the time. We will certainly meet the target in stipulated time, he adding mega projects like ArcelorMittal Essar, Jindal and others were doing well.”

According to the report, Orissa added only 7 million tones per annum of steel in the past 4 years, though it had signed the MoUs to produce an extra 74.66 million tonnes steel annually with an investment of INR 1,97,025 crore.

Inflation soars to a fresh high of 11.89% on rising prices

It is reported that inflation raced to a fresh high of 11.89% for the week ended June 28th 2008, on the back of surging food and commodity prices. The 10 years benchmark yield crossed 9.5%. Inflation trend continues to remain higher and is expected to touch 11.9% next week ended July 4th 2008.

According to the report, inflation had already soared to 11.63% for the week ended June 21st 2008. Sadly, there is no respite in sight from this soaring inflation. Finance ministry officials have already said that inflation could inch up to 13% before making a slow descent.

Experts too are of the opinion that double digit inflation is here to stay for some more time but could trend down in September 2008. With prices of crucial commodities like steel likely to up further, inflation is expected to stay over 11% before it peaks around September 2008.

It is estimated that steel and steel products used in industries like auto, housing, white goods, capital goods are contribute almost 21% to inflation. Cement prices are expected to remain soft. It is the 20th consecutive week that the inflation rate has been above 5.5%, the central bank's target for the end of the fiscal year in March 2009.

Mr P Chidambaram finance minister said that the government is relying on monetary policy to cool demand and calm prices. On June, the central bank raised its main lending rate by 75 basis points and increased banks' reserve requirement by 50 basis points to contain inflation expectations. Its next scheduled review is on July 29th but it can act before then.

Major ports likely to be affected by strike

BL reported that functioning of all major ports is likely to be affected from July 16th 2008 with the minister for Shipping, Road Transport & Highways, Mr TR Baalu declining to accept demands of port workers in a meeting in New Delhi recently.

According to the report, the demands included grant of 13.5% interim relief with effect from January 1st 2007 amendment to settlement on liberalizing the definition of pay and eligibility limit for productivity linked reward effective from fiscal 2007 as decided by the Cabinet and merger of 50% dearness allowance with basic pay with effect from January 1st 2005.

Since the talks have failed, the federations are left with no option but to direct the port and dock workers at all the major ports to go on strike from July 16th 2008, the five federations stated in a release.

The federations said that “Viewed with grave concern a totally negative and retrograde approach adopted by the ministry of Shipping virtually rejecting the agreements arrived at between the port management and the federations particularly when ports are autonomous bodies and Central Government does not give any subsidy or financial assistance to the working of the major ports.”

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

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Umicore to build car catalyst plant in India

Reuters reported that Belgian metals and specialty materials maker Umicore will build an automotive catalyst factory in India.

Umicore in a statement said that "The investment will involve the development of a Greenfield site with a production capacity allowing to equip approximately 1.5 million cars yearly.” But it did not give a value of the investment.

NALCO production in Q1 down by 1.8% YoY

Reuters reported that India's state run National Aluminum Co Ltd’s aluminum production for the quarter ending June 30th 2008 fell by 1.8% YoY to 86,979 tonnes, but was in line with quarterly targets.

NALCO's alumina production during the quarter increased by 1.3% to 392,900 tonnes as compared to 387,800 tonnes April to June 2007. It sold 84,980 tonnes of aluminum in the first quarter to June as compared to 77,195 tonnes in the year-ago period. It sold 222,883 tonnes of alumina in the first quarter of 2008-09 as compared with 207,796 tonnes in first quarter of the previous fiscal.

Mr CR Pradhan CMD of NALCO told Reuters that "This was as per the target. We do not go by last year's production we go by the rated production and quarterly target.”

He said that “Last month, it faced a coal shortage and anticipated it would cut production. But while the problem had affected output, the company had managed to meet its quarterly target.”

NHPC and J&K inks JV on three power projects

BS reported that National Hydroelectric Power Corporation and Jammu & Kashmir have signed an agreement on equity share in 3 major power projects over the river Chenab in Doda and Kishtwar districts of the Jammu region.

According to the report, J&K government has floated Chenab Valley Corporation for the purpose. The equity share will be 49:51, with 49% for the state and 51% for the NHPC. The projects are 1,000 MW Pakal Dul project in Kishtwar, 600 MW Keru project and 520 MW Kawar project in Doda. The Power Finance Corporation will fund these projects.

NHPC has also provided an additional amount of INR.200 crore on the request of J&K government for the completion of Baglihar power project on the Chenab in Ramban district of Jammu.

Era Group takes KPMG to reorganize its strategic business

It is reported that Era Group is planning to reorganize its businesses into fewer entities to derive operational synergies. The Group currently has 7 strategic business units which will be reduced to 3 for which it has appointed KPMG to advise on the restructuring.

As per report, the Era seven strategic business units are construction and contract, engineering, procurement and construction, ready mix concrete, equipment management and leasing, real estate development, pre engineering building, entertainment zone and food courts.

Suzlon to pay INR 590 crore to clients for blade defects

BS Reported that Suzlon Energy, one of the top five wind power equipment makers in the world is planning to set aside INR 590 crore for paying damages to its US clients who are facing output losses due to defective blades installed by the company.

Mr Kirti Vagadia CFO of Suzlon during the Nomura Asia Equity Forum in Singapore said that Suzlon will compensate customers John Deere Wind Energy & Edison Mission Energy for output losses because of cracked turbine blades.

He said that "We have made a cumulative provision of INR 590 crore in the balance sheet as of March 31st 2008. We are giving availability compensation to John Deere & Edison under the contractual terms.''

According to recent reports, Suzlon's turbines installed at wind farms of John Deere were not producing enough power due to technical issues such as inability to adapt to the US power grid. Suzlon had supplied over 250 wind turbines to John Deere.

Bureau of Energy Efficiency and PTC sign pact

BL reported that Bureau of Energy Efficiency and Power Trading Corporation of India Limited signed a MoU which intends to leverage the financial and technical strength of PTC and also provide financial support to carry out contract audit. The MoU was signed by the Dr Ajay Mathur DG and chairman of BEE and Mr Tantra Narayan Thakur MD of PTC.

An official statement said that the MoU provides a framework for partnership between BEE & PTC for implementing program by providing technical expertise in the form of energy audits and finance by PTC, without any financial burden on BEE.

The MoU will also establish the Energy Efficiency Financing Platform that seeks to overcome barriers of financing by sharing risks and capacity up gradation of financial institutions among others.

The MoU allows PTC to undertake energy efficiency projects on performance contracting model to demonstrate its effectiveness as a viable business model. PTC will undertake these projects in various sectors such as Government buildings, commercial buildings, hospitals, municipalities and agriculture.

As per the report, the objective of EEFP is to create a mechanism to mainstream financing of energy efficiency projects. EEFP will provide the necessary instruments like aggregated energy efficiency projects, bankable DPRs and other risk mitigation measures to enhance the comfort for tenders. EEFP is being positioned as a platform to overcome barriers that have stunted financing to the energy efficiency projects.

Karnataka plans to double its power grid

BL reported that slipping into severe power shortage following a weak monsoon Karnataka Government has decided to ask the centre to double the allocation from the southern power grid to 30%.

According to the report, Tamil Nadu, Andhra Pradesh and Kerala have been allocated 30% from the southern grid. With virtually no power project having come up in recent times, the State’s power demand had gone up. Besides initiating measures to increase power generation from thermal plants at Bellary and Raichur, the Cabinet decided to buy more power from private power producers. The private companies produce 80 MW power in the State.

With a new generation plant set up for its captive steel plant by JSWS Steel Limited, the State Government is hopeful of augmenting the supply from the private source to meet the shortfall in power.

ArcelorMittal launches new clean technology venture

ArcelorMittal announced the launch of a new clean technology venture capital fund with an initial clean technology investment of USD 20 million in Miasolé and a new carbon fund as part of its commitment to finding solutions for environmental challenges, including climate change.

1: Clean Technology Venture Capital Fund
ArcelorMittal will be working with leading venture capital firms including Bessemer Venture Partners, Khosla Ventures and Kleiner Perkins Caufield & Byers to help finance clean technology innovation through the fund.

The objective of the fund is to support the commercialization of clean energy technologies, which will help in the reduction of greenhouse gas emissions. In particular, the fund will focus on ventures that have relevance for the steel industry and its customers. The fund is managed by a team from ArcelorMittal Flat Carbon Americas and its investment decisions are taken by a six person Investment Committee chaired by Mr Lou Schorsch CEO of ArcelorMittal FCA.

The Fund has today made its first investment of USD 20 million in Miasolé, a California-based pioneer in the development of versatile thin-film solar panels that is also backed by Bessemer Venture Partners, Kleiner Perkins Caufield & Byers and Vantage Point Venture Partners.

Miasolé is manufacturing new solar products that utilize less semiconductor material than today’s legacy silicon modules and boasts the highest lab efficiencies of any thin film solar material. Miasolé has developed unique high volume manufacturing processes that enable efficient production of Copper Indium Gallium Selenium solar products on a flexible stainless steel substrate. This technology dramatically lowers the installed cost of Photovoltaic systems and will enable renewable energy from the sun to replace carbon generating fossil fuels.

2: Carbon Fund
ArcelorMittal also announced that it has created a new carbon fund in order to strategically engage in the carbon market and promote climate friendly solutions that are relevant for the steel industry. The fund, which has an initial investment commitment of EUR 100 million (USD 157 million) is currently looking at investment opportunities in renewable energy, energy efficiency, methane capture and greenhouse gas reducing technologies all of which have the potential to generate carbon credits under the Kyoto Protocol. ArcelorMittal intends to use the carbon credits received from these Clean Development Mechanism and Joint Implementation projects for compliance in the EU Emissions Trading Scheme.

Dongkuk Steel wins control of Ssangyong

Bloomberg reported that South Korea’s Dongkuk Steel Mill Co won the bid for Ssangyong Engineering & Construction Co and will purchase a stake worth about USD 282 million to enter the construction business.

A group led by Dongkuk Steel was chosen as the preferred bidder for a 50.07% stake in Ssangyong Engineering, beating Namyang Construction Co which buys and sells distressed assets. An agreement is expected to be signed in about a month after further talks.

Dongkuk Steel which gets almost half its annual revenue from making construction steel wants to diversify its business through the acquisition to reduce its dependency on steel. The stake is worth KRW 283.2 billion. Dongkuk Steel offered to pay KRW 31,000 for each share of Sssangyong Engineering, valuing the stake at KRW 462 billion.

Mr Moon Jeong an analyst at Daishin Securities Co in Seoul said that “The acquisition will help Dongkuk Steel move into construction as well as expand overseas. Dongkuk Steel is looking to build steel mills abroad and having a construction unit will help that plan.''

Dongkuk Steel aims to boost annual sales of Ssanyong Engineering to 6 trillion won by 2020, taking it to the fifth position from the 13th in South Korea.

Samjong KPMG Advisory Inc and Socius Co are arranging the sale

POSCO sees steel price strength continuing in H2

South Korea's POSCO said that current strength in global steel prices would continue for at least two to three quarters, driven by strong growth in Asia.

Mr Hwang Eun yeon a senior VP of POSCO said that "Despite concerns about weak consumer spending, steel heavy industries such as the auto and shipbuilding sectors are showing solid growth and current price strength is likely to continue at least two to three quarters.”

CSC may name Mr Ou as new chairman - Economic Daily

The Economic Daily News reported that Taiwan’s China Steel Corp. may name Mr Ou Chin der as its new chairman to replace Mr Lin Wen yuan.

Mr Ou who currently is CEO at Taiwan High Speed Rail Corp is one of the candidates for the China Steel position.

Kremikovtzi breaks deal with ArcelorMittal - Horizont

Bulgaria’s state radio station Horizont citing trade union chief Mr Lyubomir Pavlov reported that Kremikovtzi AD broke a supply agreement with ArcelorMittal.

Horizont said that Kremikovtzi signed a supply agreement with Vorskla Steel, owned by Ukrainian billionaire Mr Konstantin Zhevago, after midnight last night.

Nippon Steel hikes H Beam by 15%

Nippon Steel announced on July 10th 2008 that it increases the selling price of H beam up by JPY 15,000 per tonnes or near 15% for distributors for July order.

Nippon Steel increased the price by total JPY 45,000. The firm tries to cover higher cost for iron ore, ferroalloy, ferrous scrap and ocean freight through the first hike in 3 months.

Columbia to meet own steel needs in short term

According to Mr Edgar Jiménez an analyst at brokerage Stanford Bolsa y Banca, Colombia will be able to produce and supply its own steel and be able to export large volumes of surplus in the short term.

Mr Jiménez told BNamericas that the forecast is based on several factors, primarily the entry of Brazilian companies Votorantim and Grupo Gerdau into controlling shareholder roles at Colombian steelmakers Acerías Paz del Río and Diaco, respectively.

He added that "Things are going well and I believe that in the very near future one or two years max the steel sector will be a major player in the country's exports.”

The analyst said that Colombia has all of the resources necessary for vigorous steel production and it only lacked the investments, which have arrived at the right time.

Mr Jiménez also feels it was good business for Votorantim to take control of APR since the Brazilian firm came into a company where much work was needed and Votorantim are in a position to do it."

APR is located in central Colombia's Boyacá department, an area with all of the natural resources the steel sector needs like iron ore, lime and coking coal.

Votorantim plans to invest USD 70.2 million in APR during 2008 to improve productivity, explore iron ore and coal reserves, and address environmental issues to make the company more competitive.

European wire rod & rebar prices drop by EUR 10

It is reported that European wire rod and rebar prices have slipped further by EUR 10 tonnes. Dropping scrap prices and decreasing buying activity are the main reasons behind.

As per the report, current prices of rebar are being contracted at EUR 840 per tonne to EUR 860 per tonne for August 2008 shipments, when the prices were at EUR 840 per tonnes to EUR 870 per tonne last week. Wire rod prices have dropped to around EUR 830 per tonne to EUR 850 per tonne.

(Sourced from YIEH.com)

Ilafa meet with Chinese steel association

BNamericas reported that Latin American Iron & Steel Institute visited the China Iron & Steel Association as part of a MoU signed by both organizations in early 2008.

Mr Juan Manuel Lesmes regional secretary of Ilafa told BNamericas that "During this first meeting in China, it was suggested that both parties share statistics so that each organization Ilafa & CISA can learn about the other group's production. He added that “The groups also drew up plans for future collaboration.”

The organizations signed an agreement in January 2008, to achieve a better exchange of information between both institutions to promote fair trade and participation in seminars.

According to Ilafa figures, Latin America churned out 70.8 million tonnes of crude steel in 2007, up by 12.6% over 62.9 million tonnes produced in 2007, while primary iron output up by 3.2% in 2007 to 61.8 million tonnes.

Tokyo Steel shares drop

Nikkei newspapers report that Japan's biggest maker of steel girders, Tokyo Steel Manufacturing Company first quarter loss ended in June 30 2008, due to soaring scrap iron prices.

As per the report, currently the operating loss at the parent level is about JPY 500 million but had a JPY 8.5 billion operating profit a year earlier.

Rautaruukki to slash 207 jobs in Finland and Hungary

It is reported that Rautaruukki's engineering division, Ruukki Engineering, has finished employer-employee negotiations initiated in May 2008 to improve profitability. The negotiations concerned the division's Hungarian unit Ruukki Tisza Zrt where better profitability is being sought by cutting overheads and by improving organizational functionality.

In Finland, negotiations concerned senior salaried employees in the division's Tampere, Hämeenlinna and Helsinki units. The aim is to remove overlapping at the group, division and unit levels.

At Ruukki Engineering's Hungarian unit Ruukki Tisza Zrt a new enterprise resource planning system will be introduced as part of efficiency improvement measures. The deployment of Ruukki's common systems and working methods at the unit will reduce overlapping work and simplify administrative structures. It has been agreed to cut the number of white collar jobs by a total of 190 during the course of this year and the next. During the first phase, which takes place in July 2008, the number of administrative staff will be reduced by 108, when the new organizational structure and processes are introduced. The next phases will take place in October 2008 and January 2009.

At the moment there are 275 white collar employees at the Hungary unit.

A total of 60 senior salaried employees were subject to the negotiations in Ruukki Engineering's Finnish units in Helsinki, Tampere and Hämeenlinna. When the negotiations began, it was estimated that 25 jobs would be affected. As a result of negotiations 17 white collar jobs in division administration will be cut. Some of the persons affected will be offered new jobs at Ruukki. The negotiation result also includes retirement agreements and terminations of seven contracts. The measures will begin immediately and be completed during the autumn.

Ruukki Engineering launched a program to improve productivity and profitability across the division in February 2008. The measures aim at improving the division's operating profit by EUR 20 million in 2008. In the same context, Ruukki Engineering adopted a new organization and management model to support divisional growth and profitability. The new management model clarifies financial and operational responsibilities and improves the use of resources.

POSCO Engineering to be listed on main bourse

South Korea's stock market operator said that it would allow POSCO Engineering & Construction and Daewoo Capital to go public as they meet the requirements for listing.

The Korea Exchange in a statement said that the two companies will be listed on the main bourse through the initial public offerings.

POSCO Engineering & Construction, the construction unit of South Korea's top steel maker POSCO, applied for an IPO on May 22, seeking to raise up to KRW 1.17 trillion (USD 1.1 billion).

POSCO Engineering & Construction posted 205.8 billion won in net profit in 2007, up from KRW 194 billion the previous year.

CAP to propose USD 550 million capital increase

Reuters reported that Chile's biggest steel and iron ore producer, CAP would propose a USD 550 million capital increase through a stock issue at an extraordinary meeting on August 4.

CAP which has been expanding its iron ore production and is considering increasing its steel output as prices rise on booming Asian demand, also said it planned to spend about USD 1.6 billion on expansions.

NSK to build R&D center in China

It is reported that Japanese NSK, the world’s second largest bearing manufacturer is enlarging its market share by setting up NSK Research & Development Company Limited in Kunshan China.

As per report the construction was started on July 8th 2008 and the new Research & Development Company will cost an investment of total JPY 4.4 billion and expected to put into production during the summer of 2009.

NSK is seeking to accelerate its business in China with plans to expand its Chinese business scale to JPY 100 billion in 2010.

Salzgitter denies stake in Norddeutsche

Source close to Salzgitter saying that Salzgitter has not bought a stake in Europe's biggest copper producer, Norddeutsche Affinerie.

In an un sourced report first published on Thursday by German daily Die Welt wrote that the German steelmaker had bought A TEC's 9% stake that the Austrian industrial group confirmed it had sold that day to an unidentified party.

World primary Al ingot demand in 2008 to rise by 9.5%

According to revised outlook by Sumitomo Corporation, world primary aluminum ingot demand will increase by 9.5% to 41.31 million tonnes in 2008 from 2007.

Sumitomo said that the supply will increase by 9.3% to 41.695 million tonnes. The supply exceeds demand for 2 years in a row but the oversupply will be 385,000 tonnes, which is 800,000 tonnes less than original outlook.

Sumitomo expects the 3-month future price at London Metal Exchange could be USD 2,800 to USD 3,700 per tonne for second half of the yea

Chinese steel exports to Middle East Asia in 5 months of 2008

In tonnes

Dolphin Energy to start work on Al Ain Fujairah pipeline

Khaleej Times reported that UAE based Dolphin Energy is scheduled to commence work on fencing key sections of its Al Ain to Fujairah Gas Pipeline.

The news paper said that the construction contract is valued at USD 19.1 million and has been awarded to Al Husam General Contracting Establishment of Abu Dhabi, who will set up fencing along more than 100 kilometers of the 184 kilometer pipeline.

It added that some 40 kilometers of guard rail will be installed as a security barrier at the Fujairah end of the pipeline and the work will be completed by the end of the current year. In addition to this, pedestrian and vehicle crossings will also be laid out along the fence, for public use and completion of this element of the contract is scheduled for September 2009.

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 twin belt 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.

Total SA postpones plan to invest in Iranian gas project

BS reported that Total SA, Europe's third largest oil company, postponed plans to invest in a project linked to Iran's South Pars gas field as pressure mounted on the country over its nuclear ambitions.

Ms Patricia Marie a spokeswoman for Total in Paris said that "As of today, we cannot invest in Iran as we would like to.

She confirmed comments by Mr Christophe de Margerie CEO to the Financial Times saying the company is stepping back from a plan to develop Iranian gas reserves. She said that total is putting plans on hold. We cannot immediately invest in Iran because we would be accused of certain things. This does not put into question our desire to go there."

Ms Marie said for now, Total is putting plans on hold. "We cannot immediately invest in Iran because we would be accused of certain things. This does not put into question our desire to go there."

ConocoPhillips joins ADNOC in development of Shah Gas Field

Menareport reported that ConocoPhillips and Abu Dhabi National Oil Company have signed an Interim Agreement to develop the Shah Gas Field in Abu Dhabi

Under the Interim Agreement ConocoPhillips and ADNOC will jointly share the ongoing cost of front-end engineering and design and project mobilization for the Shah Gas Field development. Final project agreements are expected to be completed by year end.

Mr Jim Mulva chairman & CEO of ConocoPhillips said that "ConocoPhillips is pleased to establish a major presence in Abu Dhabi and is honored to participate with ADNOC in this world-class gas development. Our extensive experience in the development of high sulfur gas fields and ability to employ state-of-the-art technology complements our strategy to invest in projects that expand our global presence and help meet the growing demand for energy around the world.”

He added that this large scale project involves the development of natural gas condensate reservoirs within the Shah Gas Field, located onshore approximately 180 kilometers southwest of the city of Abu Dhabi. The project will involve the construction of a new one billion cubic feet/day natural gas processing plant at Shah, new natural gas and liquid pipelines and sulfur-exporting facilities at Ruwais in UAE.

UAE oil consumption grew by 7.7% in 2007

According to the recently released 2008 BP Statistical Review of World Energy, UAE posted one of the GCC's highest oil consumption growth rates during 2007.

The 7.7% increase to 450,000 barrels per day is one of the highest growth rates in the Middle East and significantly above the 10 year average reflects the Federation's continued strong economic growth and mirrors a worldwide trend of increasing demand from emerging markets.

The UAE was the GCC's second largest oil producer in 2007, with output averaging 2.915 million barrels per day equivalent to 3.5% of total global production. The country's proved oil reserves of 97.8 billion barrels make up 7.9% of the world's total and at current production levels would last 92 years.

On a regional level, Middle East oil production fell by 1.8% to 25.2 million barrels per day on the back of OPEC production cuts in late 2006 and early 2007. The decline was partially offset by a 7% increase in production from Iraq. The 350,000 drop in OPEC production was noticeable on the global oil production total, which fell by 0.2% or 130,000 barrels per day to 81.5 million barrels per day.

Middle East proved oil reserves stood at 755 billion barrels or 61% of the world total, while global proved oil reserves amounted to 1.24 trillion barrels.

BP said that "This year's Statistical Review shows the world's energy markets continue to deliver reliable energy supplies despite high and volatile energy prices, although continued weakness in oil supply and increasing emerging market demand also highlight the challenges that industry faces in maintaining secure energy supplies.”

JGC to build USD 500 million plant in Algeria

Reuters reported that Japan's second largest plant engineering company has won a USD 500 million order from Sonatrach in Algeria's state owned oil company, to construct a crude oil and natural gas treatment plant.

The Nikkei newspaper without saying where it got the information reported the plant, to be built in Algeria's Rhourde Nouss district, will be completed in 2011.

The paper said that JGC will handle the design and procurement of equipment, while wholly owned unit JGC Algeria will construct the factory. The paper added that crude oil and gas will be separated at the plant and shipped through pipelines to oil refineries and gas treatment facilities.

Abu Dhabi buys 90% of Chrysler Building

The Wall Street Journal reported that an Abu Dhabi sovereign wealth fund has purchased a majority stake in the Chrysler Building, an iconic New York City skyscraper.

As per report Abu Dhabi Investment Council will take a 90% stake in the tower's ownership for USD 800 million. Tishman Speyer Properties, a New York landlord, will retain the remaining ownership piece and will manage the property.

The report said that ADIC purchased its share mostly from a fund managed by Prudential Real Estate Investors, a unit of insurance company Prudential Financial Inc. The fund included European investors, especially Germans. ADIC also purchased a piece of the tower from Tishman Speyer, which previously owned a quarter of the building.

Abu Dhabi's price for 90% of the tower would value the building at about USD 890 million, or USD 742 a square foot. It contains roughly 1.2 million square feet of office and retail space.

The 77 story Art Deco tower is one of the most recognizable images on New York's skyline and was the tallest building in the world when it was built in 1930 to house Chrysler Corp., before being supplanted by the Empire State Building.

Chinese exports hit by sluggish demand in SEA

According to deputy secretary general of China Iron & Steel Association, however, Chinese steel shipment to one of the traditional major destinations Southeast Asia, like Vietnam, has plummeted in Jun due to seasonal dull demand.

He said that “Meanwhile, retreating domestic steel output growth has also led to steel export decline in June. In the first four months of this year, slower Chinese steel production growth has clipped worldwide crude steel output increase down 3.5 percentage points. And the outbreak of Sichuan quake has stimulated domestic steel demand and reduced steel export.”

He added that "In fact, the overly high steel export in May is partially resulted from steel export fever as steel exporters are desperate to rush out steel shipment amid flying rumor of 10% to 15% hike on steel export duty as of June 1st 2008.”

According to latest Customs data China's finished steel export has surprisingly fallen 340,000 tonnes from May to 5.22 million tonnes in June down by 1.14 million tonnes and 17.9% YoY from same time of last year. The June export tonnage has beaten the market expectation that the export volume is likely to hit over 6m tons in the month.

Chinese HDG export price go down further this week

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.

According Mysteel on Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7500 per tonne, price for 0.5mm HDG by private steel makers is at CNY 7700 per tonne down by CNY 50 per tonne to CNY 70 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 to USD 160 per tonne FOB.

(Sourced from MySteel.net)

Baosteel jumps to the 259th place in Fortune 500

According to the new ranking of 2008 Fortune 500 released by Fortune magazine on July 9th 2008, Baosteel, China's top steel giant advances by 48 places from last year and leaped onto the 259th with an operation earning of USD 29.94 billion and profit of about USD 2.86 billion in 2007.

It is the fifth consecutive year for Baosteel to rank in the Fortune 500.

In 2007, Baosteel had to face the great pressures from the rocketing crude fuel price s and freight rate, while being exposed to the increasingly fiercer market competition due to the steel capacity surplus at home as well as international steel giants' infiltrating Chinese market.

In front of such situation, the steel producer has taken a range of measures to optimize the managerial process and adjust product mix to reduce production cost. In addition, its newly established key projects that are listed in the 11th Five Year Plan have been successfully put into operation. It also makes efforts to give birth to more quality products with high added value and the multivariate industry is progressing steadily and soundly.

In 2007, Baosteel's sales revenue gained 27.57% YoY to CNY 227.715 billion with profit rising 59.29% YoY to CNY 35.65 billion.

Shougang Group to cuts output by 70% for Olympics

Xinhua reported that Beijing Shougang Group is fulfilling its commitment to cut output and pollution by 70% for the Olympic Games.

Mr Zhu Jimin president of Shougang Group said the Beijing plants of the group have slashed monthly production to 200,000 tonnes in the third quarter. He said that "This is about 29% of our normal output."

Mr Zhu said this year's output cut will put the group's Beijing plants in the red and slash the group's annual profits by at least CNY 2 billion. He said that the losses would hopefully be offset by the group's new steel projects, notably its new plant in Caofeidian, an islet in the neighboring Hebei Province that will turn out 4.85 million tonnes of steel a year after its first phase starts operation in October. In two years, the new plant will be producing up to 10 million tonnes a year.

Mr Zhu said "We will also exploit our advantages in other sectors. These will include tourism, entertainment and other tertiary industries. He said that we'll be responsible for our shareholders and will protect their practical and long-term interests."

He added that further output cuts in the third quarter will hopefully bring down emissions of the three major pollutants by 70% compared with last year.

Shougang founded in 1919 is widely considered the flagship of China's heavy industry. With its production base just 17 kilometer west of Tian'anmen Square in central Beijing, it has long been blamed for causing heavy pollution as the plant's chimneys belch out thick clouds of smoke.

Chinese trade surplus in H1 down by nearly 12%

According to General Administration of Customs, China's trade surplus dropped to USD 99.03 billion in the first half of this year down by 11.8% from the same period of last year.

Analysts said the fall was partly a result of China's policies to tame surplus but was also in part because of the rising prices of energy and resources.

Mr Li Jian an expert with the Academy of International Trade and Economic Cooperation under the Ministry of Commerce said "The trade surplus decline in the first half was broadly in line with market expectation."

The June export growth further slowed from May by 10.5 percentage points and the import growth was 9 percentage points lower. The export slowdown led the June trade surplus to USD 21.35 billion down by 20.66% YoY from the same month last year.

Mr Li said middle and small sized enterprises are faced with extremely difficult situations. He said that "The accelerated appreciation of the yuan fund shortage, continued price rises of raw materials, and labor cost increases have forced more and more enterprises into financial loss or bankruptcy."

Trade with the European Union China's largest trade partner rose 27.7 % to USD 202.14 billion in the first six months.

Xianggang posts CNY 1 billion profit for the first half

According to the finance report from Xiangtan Iron and Steel Group, the group realized a profit of more than CNY 1 billion during the first six months of 2008, making up the losses caused by the snow disaster at the beginning of 2008.

Xianggang almost stopped production during the snow disaster. To make up the losses, the company put more attentions on the strategic products.

On 9th April, first batch of 180 tonnes of wire rod for steel wire cord and 300 tons of wire rod for bead wire ring was delivered to the largest steel wire cord producer in the world, Bekaert Company.

The wide plate is another product with high profitability in Xianggang. In April, high grade pipeline steel, X70 steel was utilized in the gas transportation project in Middle Asia; the first batch of plate for offshore oil project was delivered to CNOOC. The high grade plate for engineering machineries was developed in May.

Till now, the wide plate from Xianggang has made fame among the consumers, and the sale prices are only lower than those of Baosteel. On 28th June, the second 3.8 meter wide plate production line launched production, which lifted the wide plate production to 2 million tonnes per year or so, accounting 90% of the output of plate and sheet.

Hebei steel industry shifts toward coastal area

State-owned Hebei Iron and Steel Group opened at Shijiazhuang yeasterday with a registered capital of CNY 20 billion. The new group, incorporated Tangshan Steel and Handan Steel will see an output rise from 31 million tonnes per year to 50 million tonnes per year by the end of 2009.

Mr Luo Bingsheng deputy vice president of CISA said the debut of the new group may help boost the centralization degree of Hebei’s steel industry, which is the dominant industry in the province. He said that in 2007, Hebei produced over 100 million tonnes of steel, the 6th consecutive year topping the output lists of crude steel, pig iron, steel products and iron ore nationwide. The focus of the steel industry in Hebei will gradually switch to coastal area.

By the end of 2020, the province will squeeze 80 million tons of steel capacity.

Huaneng Group H1 power output up by 22.96% YoY

XFN-Asia reported that Huaneng Group generated 184.9 billion kilowatt hours of electricity in H1 2008 up by 22.96% YoY.

Huaneng Group said of the total thermal coal power output grew 22.37% to 178.2 billion KWH, hydropower output was up by 36.06% at 6.23 billion KWH while wind power output surged 132.07% to 509 million KWH. It added that the company's electricity production in the first half accounts for around 11% of the country's total.

Huaneng Group is the parent of Huaneng Power International.

Baosteel Institute develops welding technology for X80 pipes

It is reported that Baosteel Institute has recently completed industrial trial production of big diameter X80 butt welded pipe associated immersed arc welded wire.

In recent years, the welded steel demand in China’s construction, shipbuilding, oil, bridge etc industries is increasing, with the coming out of Baosteel’s high grade pipeline steel, heavy plate, and new stainless steel products, the welding materials supporting them have higher requirements.

Baosteel Institute established Welding and Surface Technology Institute in October 2006. Up to now, 10 kinds of welding materials have applied for the national invention patents and also used in CCTV new site project and Shanghai Yangshan Port projects etc.

E Steel developed 9 new steel products in H1 of 2008

According to the news release by Esteel, it carried out trial production for 27 new items in H1 of 20087 by undertaking 336,900 tonnes of trial production and successfully developed 9 new products.
DCO3、DCO4、GCrl5 and 70 hard wire etc 9 new species products.

Shanghai AJ, Cheung Kong and Shougang to form JV

Shanghai AJ Corp, Shougang Holding Ltd and Cheung Kong Holdings will form a joint venture to purchase 120 million new shares of Shanghai AJ. No financial details were provided

Shanghai AJ in a statement filed with the Shanghai Stock Exchange, said that Shougang Holding will own 70% of the joint venture, while Mr Li will hold the remainder.

Shanghai AJ added that the joint venture has promised to participate in the restructuring of its securities unit Aijian Trust. Shanghai AJ holds a 98 pct stake in Aijian Trust, which has registered capital of CNY 1 billion.

The venture will pay cash to acquire no more than 49% of Aijian Trust, becoming its second largest shareholder after the restructuring.

China CNPC H1 crude output up by 466,700 tonnes

Xinhua reported that China National Petroleum Corp domestic crude oil output up by 466,700 tonnes in the first half over the same period a year earlier.

CNPC, parent of PetroChina said its production had met 50.03% of the full year target despite the worst snowstorm in more than five decades from January to February and the massive Sichuan earthquake on May 12. Meanwhile, natural gas output increased 4.6 billion cubic meters, up by 17.6% from a year earlier.

The state-owned oil giant added its overseas crude and gas output had met 50.4% and 54% respectively of its full year target. It didn't give absolute and comparative figures.

In 2007 the company produced 107.65 million tonnes of crude and 54.2 billion cubic meters of gas domestically.

Chinese FDI grows by 107.9% in despite quake impact

Xinhua reported that foreign direct investment into southwest China's Sichuan Province grew 107.9% in the first half despite the impact of earthquake in May.

Sichuan Provincial Commerce Department statistics show that foreign businesses invested USD 1.8 billion in Sichuan from January to June. The statistic shows that the province approved 184 new foreign funded businesses in the first six months down by 12.8% YoY. But the contractual capital stood at USD 4.2 billion up by 207.5%.

A commerce department spokesman said the May 12 quake inflicted heavy losses to Sichuan, but the province's productive capabilities, material foundation and economic fundamentals did not suffer fundamental damages. He said that "After the quake, many foreign businesses still pay attention to Sichuan's development, eye the investment environment here with optimism, and increase their investment."

Mr Kenneth Macpherson MD of Diageo Greater China said Sichuan was recovering and developing, and the quake did not make him lose confidence in the province. He pledged to continue to invest in Sichuan.

Anshan Iron issues CNY 4 billion in 365 day debt

It is reported that Anshan Iron & Steel Group Corp, parent of Angang Steel Co Ltd has issued CNY 4 billion worth of 365 day debt.

Anshan Iron & Steel Group Corp said in a statement that the yield was set at 4.83%. It said that the proceeds will be used to supplement working capital. The Industrial and Commercial Bank of China is the underwriter of the issue.

Chinese aluminum mills to cut output by 5% to 10%

It is reported that 20 Chinese smelting producers have agreed to cut aluminum output by 5% to 10% since this month to support the primary aluminum price and reduce electricity consumption.

According to figures from World Bureau of Metal Statistics show the news boosted the outlook for softening overcapacity, and aluminum price have hit a new record again yesterday in international market, the second time triggered by Chinese output cutback. The world has seen 458,000t of aluminum supply glut in the first four months.

Insiders close to source said the output of China's leading 20 aluminum producers, including Aluminum Corp of China in May accounts for 71.3% of the nation's total output in the month. And it's still unknown how long the cutback plan will continue.

Sempra Metals said China produces some 1.3 million tonnes of primary aluminum per annum and cut 5% to 10% output means 600,000 tonnes C 1.2 million tonnes disruption which is enough to change the current global supply and demand situation.

And senior official from Liberum Capital said aluminum products boast minimum market risks and it's widely expected the price would continue moving up.

Aluminum price has doubled in past five years due to the input cost rise. And energy costs account for some 30% to 40% in aluminum production.

NLMK to get USD 1.6 billion loan

It is reported that a banking source said Novolipetsk Steel will imminently sign a USD 1.6 billion syndicated loan, which was increased from USD 1.5 billion after raising an oversubscription.

As per the report, the five year amortizing pre export financing pays a margin of 120 basis points over the London interbank offered rate and is secured by export contracts.

Mr Usmanov joins Udokan copper race

Reuters reported that Metalloinvest, the Russian miner half owned by billionaire Mr Alisher Usmanov has submitted a bid to develop the huge Udokan copper field and may be joined by state firm Russian Technologies if it wins the tender. The deadline for registering bids has been set for Friday July 11th and the auction will be held on September 17th.

Several companies have already submitted bids, including Norilsk Nickel, Russia's largest copper miner, and Strikeforce Mining and Resources Ltd, the mining arm of billionaire Mr Oleg Deripaska's Basic Element Company.

State owned Russian Railways is leading a bid as the head of a consortium called Russkaya Med, or Russian Copper, that includes No. 2 Russian copper producer Urals Mining and Metals Co and state debt and pension fund agent Development Bank.

Onexim Group, the investment vehicle of billionaire Mr Mikhail Prokhorov has also submitted a bid.

Mr Prokhorov re elected as chairman of Polyus Gold board

Interfax reported that Mr Mikhail Prokhorov has been re elected as chairman of the board of directors at Polyus Gold.

A source at Prokhorov's Onexim Group told Interfax the new board chairman met with company management immediately after his election to discuss the company's development strategy.

Mr Prokhorov will also head the strategy committee created in May 2008. An independent director, Mr Valery Braiko was named to chair the audit committee, and another independent director, Mr Robert Buchan was appointed head of the personnel and compensation committee.

Aside from Mr Prokhorov, Mr Braiko and Mr Buchan, the members of the new board elected at the shareholders' meeting on June 26th are
1. Lord Patrick Gillford
2. Mr Yevgeny Ivanov
3. Mr Andrei Klishas
4. Mr Valery Rudakov
5. Mr Yekaterina Salnikova
6. Mr Yevgeny Yarovikov.

Serbia to review deal on sale NIS Oil Company to Gazprom

RIA Novosti reported that Serbia is set to review a deal to sell Russia a stake in its national oil company, including pricing, almost six months after it was signed.

According to the report, a protocol on the sale of a 51% stake in Naftna Industrija Srbije to Gazprom Neft, the oil arm of Russian energy giant Gazprom for EUR 400 million and investment in the modernization of the company's facilities worth at least EUR 500 million was signed in Moscow on January 25th.

Mr Mladjan Dinkic who also holds the position of a deputy prime minister said Serbian negotiators would put the country's interests first and show no indulgence considering all market factors before making any decision. He said the negotiations would focus on protecting the environment and the price offered by Gazprom for the state owned NIS assets. He added that "We will try to do all we can in Serbia's interests."

Russia and Serbia are also bound by an agreement on the South Stream gas pipeline, under which a 400 kilometer will be built in Serbia for Russian natural gas transits and supplies to the Balkans.

Bohdan Corporation increase bus exports

It is reported that the Bohdan Corporation exported 1,097 buses in January to May, that exceeded supplies of the same period of 2007 by over twofold. The export share in the total sale volume made up 62.4% over five months.

As per report, export supplies of buses were carried out to Russia, Georgia and Azerbaijan, while in January to May 2007, Russia and Belarus led in export supplies.

KRAZ sold it trucks in Saudi Arabia

It is reported that Mr Fomenko General Director of the export wing of KRAZ reported that the company has sold its first trucks in Saudi Arabia. The certification of KRAZ products according to GSO Standards opened the door to the Middle Eastern market for KrAZ.

Mr Fomenko also announced the company's plan to open a KRAZ assembly plant in Cuba. At first the shop will work as a repair depot and will change into an assembly workshop in the very near future. KRAZ plans to use Cuba as a base from which to sell its trucks to neighboring countries such as Panama, Venezuela and Nicaragua.

KRAZ has long known that diversifying its export geography to decrease its dependence on the Russian market. We evaluate this news as POSITIVE.

(Sourced Millennium capital)

Gazprom and Azerbaijan to start talks on gas sales

RIA Novosti reported that Gazprom and Azerbaijan have agreed to start talks on Azerbaijani natural gas sales to the Russian energy giant.

Mr Alexei Miller CEO of Gazprom said "Azerbaijan could become one of the countries selling natural gas to Gazprom, even though the country bought gas until recently, adding that the company was seeking to buy the largest possible volumes of gas at market prices.”

Mr Miller said Thursday the forecast had been raised. "By the end of 2008, gas in Europe will cost USD 500 per 1,000 cubic meters. He said that oil prices go past USD 250 per barrel, the natural gas price would exceed USD 1,000 per 1,000 cubic meters. He added that such high prices would not be an unnatural phenomenon for the market, as some individual Gazprom contracts had at certain times already exceeded the figure.”

Mr Rovnag Abdullayev president of the State Oil Company of Azerbaijan said earlier that the South Caucasus republic was studying Gazprom's offer to buy Azerbaijani gas at market prices along with proposals to supply natural gas for the Nabucco and Trans-Adriatic gas pipeline projects.

Azerbaijan is considered as a potential natural gas supplier for the Western-backed Nabucco project designed to bypass Russia and pump up to 30 billion cubic meters of natural gas annually from Central Asia to Europe via Azerbaijan, Turkey, Bulgaria, Romania, Hungary and Austria.

Tensions mire Kazakh oil potential

Kazinform reported that the strained relationship with energy rich Kazakhstan and world oil giants overshadows the renewed international interest in the country's vast reserves.

Analysts consider Kazakhstan's Kashagan oil field in the northern Caspian Sea to be the largest outside of the Gulf region with an expected 13 billion barrels worth of recoverable oil. The date for exploitation of this field, however, experienced delays over technical and political issues, pushing the operational deadline from 2005 to 2013.

According to the report, Kashagan could bring as much as 1.5 million barrels of crude to the market per day, but Italian energy firm Eni, which is charged with operating the field said hydrogen sulfide and high pressure created unexpected delays in extraction. Furthermore, a row between Kazakhstan and international oil firms over shares and pricing mechanisms resulted in a decision by the Kazakh government to revoke the Eni deal once the field comes online.

Kazakhstan moved recently to expand its pipeline capacity in lieu of the potential reserves, however, and the increased estimates regarding the natural resources in the Caspian region put Kazakhstan at the center of the new world energy market.

Federation Council approves accord on Russian-Kazakh oil and gas JV

Interfax reported that the Federation Council has ratified a Russian-Kazakh intergovernmental agreement on the creation of a joint venture on the basis of the Orenburg gas processing plant to produce hydrocarbons in Russia's Orenburg region and the Karachaganak field in Kazakhstan.

According to the report, the main condition set in the agreement is the signing of long term no less than 15 years commercial contracts providing for the purchase and processing of gas extracted from the Karachaganak field in the amount of no less than 15 billion cubic meters a year, as well as the sale of the processed gas on the Kazakh market and its exclusive export by Gazprom.

The processing of Karachaganak hydrocarbons proceeded until now based on direct agreements signed by the affiliates of authorized organizations.

Nickel use in stainless steel may drop 9.5%

According to metals research firm Heinz H Pariser, stainless steel makers, who consume more nickel than any other industry, may use 9.5% less of the metal in 2008.

Mr Heinz Pariser in a speech at a Metal Bulletin conference in Johannesburg said that “Production of nickel free stainless steel is taking place more and more. Nickel prices are unrealistically high.”

Mr Pariser said that “Nickel is more than double the price it was five years ago, even after slumping 55% since trading at a record USD 51,800 a tonne in May 2007. Nickel use in stainless steel may slip to about 715,000 tonnes in 2008.”

Mr Pariser said that “Higher chrome prices have so far had a minor impact on stainless steel prices.”

He added that “World stainless steel production may rise by a 10th next year to 33.6 million tonnes from about 30.4 million tonnes this year.”

Import price of Chrome ore at Tianjin port

Import price of chrome at Tianjin port is under

Price in CNY per MTU

(Sourced from MySteel.net)

Norilsk quality control and environmental meets international standards

OJSC MMC Norilsk Nickel reported successful compliance certification of its Corporate Integrated Quality Control and Environmental Management System. The compliance audit was carried out by the independent certification authority Bureau Veritas Certification at the Company’s Head Office in Moscow and the Polar Division site in Norilsk.

QEMS operation in its current format was introduced in June 2007. During this period the integration of quality management and environmental aspects has improved, vertical sector based management has proved its efficiency and corporate audits have become an element of daily routine.

Mr Vladimir Shlykov head of the audit team said in the final statement that MMC Norilsk Nickel’s Corporate Integrated System has become a mature, efficient and rapidly developing management system.

Mr Jacques Rozenberg Deputy General Director of MMC Norilsk Nickel said management’s representative responsible for the implementation of international standards ISO 9001 and ISO 14001 in the three years of the system’s existence, the scope of certification has been significantly expanded through integration of processes and procedures, development of a process model, and integration of additional business units such as Nadezhda Metallurgical Plant and others.

In 2008, in addition to the previously obtained accreditation with national certification authorities of the United Kingdom and Germany, Norilsk Nickel’s QEMS was certified by the US national certification authority ANAB

Belvedere discovers new mineralized zone at Hitura nickel mine

Canadian listed junior Belvedere Resources announced further assay results from ongoing diamond drilling at the company's 100% owned Hitura Nickel Mine in Central Finland.

The Hitura intrusive complex is 1.3 kilometer long and consists of three tectonically separated intrusive bodies, Hitura North, Mid and South. All mining activities to date have been concentrated on the North Hitura intrusion. This phase of drilling has been focused on the Mid Hitura intrusion as part of an extensive exploration program to develop new areas for mining in Mid and South Hitura.

Drilling Highlights
1. R 1964 61.49m @ 0.59% Ni, 0.17% Cu
2. R 1969 19.32m @ 0.69% Ni, 0.19% Cu

Mr David Pym CEO of Belvedere Resources said that "This new discovery in Mid Hitura underlines our belief in the development potential at Hitura. The new zone may indicate the continuity of mineralization from North Hitura into Mid-Hitura of the very thick eastern ore zone which constitutes a large portion of the current reserve base of the mine. "

New 303 SS solid precision ground Shafting from QBC

Quality Bearings & Components announced that a new line of 303 stainless steel solid precision ground shafting. Identified as the BBSHAF Series, these shafts are stocked in 3 diameters,1247", .1872", and .2497". They are available in lengths ranging from 1" to 36". They feature 1/64" x 45 degrees chamfer at both ends and straightness of .0004 per inch. Quotes plus online orders are available at our new QBC eStore.

Quality Bearings & Components has in stock: miniature bearings, plastic bearings, rod end bearings, spherical bearings, pillow blocks, sintered bronze bushings, radial ball bearings, thrust bearings & washers, sleeve bearings, needle bearings, inner races, roller clutches, guide wheels & rail systems, linear ball bearings, inner and outer ring spacers and shafting. QBC stocks both inch and metric sizes.

Quality Bearings & Components also provides custom made bearings and shafting to the customer print. We also offer on site relubing of bearings in a certified class 1000 clean room.

Sinosteel wins control of Midwest

Bloomberg reported that Sinosteel Corp, China's second largest iron ore trader won control of Midwest Corp after more than half of the Australian producer's shareholders accepted its AUD 1.36 billion offer.

According to a notice sent to the Australian stock exchange July 11th Sinosteel which has offered AUD 6.38 cash a share for Perth based Midwest now owns 50.97% of the stock.

Murchison Metals Ltd last week dropped its rival offer for Midwest and has said it will not accept Sinosteel's offer for its 9.95% stake in Midwest.

According to Bloomberg data, the acquisition is the largest overseas metals takeover by a Chinese company. Steel mills in China, the largest buyers of iron ore, are seeking to secure alternative supplies amid concern BHP Billiton Ltd's proposed takeover of Rio Tinto Group would create a company controlling almost half the Asian iron-ore market.

Thermal coal touches USD 200 per tonne mark

It is reported that export price for thermal coal at Australia's Newcastle Port, the benchmark price for Asia has achieved USD 200 per tonne for the first time hitting a new record.

Analysts from Citic Securities believe international price keeps rising, spurred by surging crude oil price and deteriorating short supply. Citic Securities added that due to floods in Australia, short electricity supply in South Africa and snowstorms in China, coal price in Asia reaches record highs.

Citic Securities said on July 12th prices for high quality mixed coal from Shanxi broke CNY 1000 per tonne at Qinhuangdao Port. It said that "But the price is still much lower than that in international market. Domestic coal price may climb further."

Mr Zhao Tiechui director of State Administration of Coal Mine Safety, has vowed to strengthen industrial structure adjustment, accelerate the construction of large scale coal bases, raise industry concentration and encourage M&As. China is ambitious to limit small coal mines within 10,000 by 2010.

Mr Wang Shuai analyst for Orient Securities said outputs of small mines kept rising during the past two to three years yet the situation changed since this year. Small mines contribute some one third of China's total output yet most of them have suspended or cut productions. But large scale state owned mines fail to cover the supply shortage.

He said that on the other hand, coal demand now posts strong uptrend as many power plants start operation.

NMDC to push for better ore price

BL reported that National Mineral Development Corporation will push for a better price for its iron ore with Japanese steel mills & South Korean steelmaker POSCO during negotiations scheduled for the end of the month 2008.

Mr Rana Som C MD of NMDC said that “Though the dates have not yet been finalized, officials have said that the meeting could be either on July 26th or 28th with Japanese steelmakers followed by meeting with officials of POSCO.”

He said that “This time the negotiations are going to be totally different. On previous occasions there were no talks, but a standard increase as applicable to everybody was effected. This time since the price of the ore is being decided depending on the country of origin and because our ore is of very good quality we are hopeful of getting a good deal.”

Mr Som said that “We expect the increase to be similar to what the Australian companies have got because of the good quality of ore that we mine.”

He said that the negotiations would also be a benchmark for determining the price rise for iron ore that is supplied to the domestic steel companies such as Essar Steel, Rashtriya Ispat Nigam Limited & Ispat Industries.

National Mineral Development Corporation sells high grade fines at INR 1,783 a tonne and lumps at INR 2,500. In comparison, the price private miners demand is determined by the price prevailing in the spot market, which is at INR 4,500 to 6,000 a tonne.

Shougang Peru workers may strike again

Reuters reported that workers plan to go on strike Monday at iron ore miner Shougang Hierro Peru.

A union leader said that workers were on strike at the mine last week for a nationwide mine walkout and they still have complaints that the Chinese company should address.

World coal fired power plant capacity to increase by 60%

According to latest forecasts in “Coal Fired Boilers: World Analysis and Forecast” published by the McIlvaine Company, World coal capacity is expected to reach approximately 2,500 GW by the end of 2020, an increase of nearly 60% from 2008.

The report said that East Asia will lead the way with the biggest total gain in capacity, while West Asia will enjoy the largest percentage growth, approximately 300%.

The report said that coal capacity in Western Europe is presently more than double compared to West Asia, but by 2020 the capacities are projected to be nearly equal. East Asia will operate nearly half of the world's coal-fired power plant capacity by 2020. China is already the world's largest operator of coal-fired plants. It passed the US in total capacity two years ago. In 2007, China started construction of new coal-fired power plants with a net capacity of 93,000 MW.

The projected capacity through 2012 is based on the specific plant plans which are tracked by McIlvaine in its World Power Generation Projects. Capacity projections for later years are based on the odds assessment for important future events.

Pipavav commissions environnent friendly coal yard

Gujarat based Port Pipavav has recently commissioned a state of the art environmentally responsive coal handling facility. It is capable of storing nearly 250,000 tonne of coal.

Pipavav said that the newly designed coal yard ensures that coal can be handled and stored efficiently and safely, without adverse impact on any other cargo.

Mr Ashley Din Ning CFO of Gujarat Pipavav Port Ltd said that “At Port Pipavav, we handle substantial amounts of fertilizer and cotton. It is critical to ensure that these and other sensitive cargo types are not contaminated by coal dust at the port.”

He said that the new coal facility includes an integrated system of two electric level luffing cranes and a mobile conveyor system leading to the coal yard. The main conveyor system is designed to handle coal to be unloaded from ship and stacked in the coal yard.

Mr Din Ning said that it is 1.2 kilometer long and divided into three segments with two traveling trippers in stack yard. The conveyor system has a rated handling capacity of 2,000 tonnes per hour. The most striking feature of the facility is a well-planned and designed co al yard, which prevents and controls the coal dust from escaping the yard thus avoiding contamination to any other cargo type.

Exxaro Coal workers to go on strike over wages

It is reported that the largest mining trade union in South Africa, the National Union of Mineworkers is determined to strike at Exxaro Coal, Sishen Iron Ore and De Beers if their wage demands aren't met in hard times for workers.

Mr Lesiba Seshoka a NUM spokesperson said that the union, which claims to represent the majority of workers at these organizations, has declared disputes with the companies at the Commission for Conciliation Mediation and Arbitration that will open the door for strikes if the Commission can not resolve the disputes.

He said that the union knew from experience that the mining companies wouldn't move on their wage offers unless the unions embarked on strikes. NUM was set on halting these companies' operations this year if they did not comply with demands as workers were hit hard by inflation.

The NUM is negotiating wage increases with mining companies that are not members of the SA Chamber of Mines this year as it tied up two year wage agreements with member companies last year.

Mr Seshoka said about 10,000 workers at Exxaro belonged to the union which had negotiation power on the basis that the majority of workers at these companies belonged to it.

The NUM is demanding a 13.5% increase in wages for this year from De Beers which has offered workers 11% for two years , while it says Sishen Iron Ore is also refusing "to deliver" on wages.

Panjiang to acquire coal mine assets from parent

It is reported that Guizhou Panjiang Refined Coal Co will buy all of its parent's mining assets for CNY 7 billion which will boost profit fivefold.

Liupanshui, Guizhou province based company in a statement to the Shanghai stock exchange said that Panjiang Refined Coal will sell as many as CNY 318 million denominated shares to parent Panjiang Coal Power Corp to pay for four mines and other assets. It said that China's coking coal prices have doubled this year as the government closed small mines and demand from steelmakers rose. Panjiang Refined Coal increased prices for its products by 25% this month from June.

The statement said the assets would generate a profit of at least CNY 555.6 million in 2008 and CNY 747.7 million in 2009. Panjiang Refined Coal's profit rose 19% to CNY 96.6 million in 2007.

China Metallurgical Baoye take stake in Henan northern mining

China Metallurgical Group Corporation announced that the China Metallurgical Baoye Construction Company purchased 51% stock right of Henan Lushi County northern mining company.

It is the first time for China Metallurgical Baoye Construction Company is getting involved in the development of iron ore fields.

The exploitation products of Northern Mining Company mainly include iron, copper, zinc, gold, sliver, molybdenum etc 11 kinds of metal resources. China Metallurgical Group is one of the key enterprises of China’s overseas investment in ferrous and non ferrous metals.

OMDC to sell 384,000 tonnes of iron ore fines

Bloomberg reported that Orissa Mineral Development Corp an unit of state owned Bird Group is seeking buyers for 384,000 tonnes of iron ore fines.

According to a tender document, buyers have until July 21st 2008 to submit offers for the purchase.

Scottish Power signs coal deal for Longannet

It is reported that Scottish Power and Scottish Coal signed a largest coal contract in Scottish history, in a move that could create more than 100 jobs.

Under the five year deal, likely to be worth up to GBP 700 million, Scottish Coal will supply fuel to Scottish Power's Longannet power station in Fife. The amount of coal to be supplied will depend on the demand for electricity but it is understood it could be two million tonnes per year.

Scottish Coal operates nine opencast mines across the central belt and plans to bring its mothballed Broken Cross site, in South Lanarkshire, back into operation to cope with the demand. The firm said it already had planning permission to extend the existing mines.

Mr Brian Staples deputy chairman of Scottish Resources Group owner of Scottish Coal said that "It is very pleasing to see Scottish coal, mined by a Scottish workforce, being bought by a Scottish company to meet Scotland's electricity demand."

Mr Alex Salmond Scotland's first minister said “The agreement meant a secure future for the Scottish coal industry. It is a further milestone to secure important natural resources of Scotland for generations to come."

Scottish Power said it had previously imported foreign coal because of the high sulphur content of the Scottish fuel. Scottish Power burns between four and six million tonnes of coal a year at Longannet and Cockenzie power station, in East Lothian. The company said it was able to use Scottish coal at its Longannet station following a GBP 170 million refit. The station's flue gas desulphurisation equipment, installed this year, will remove 98% of the sulphur dioxide from the emissions of three of its four power units.

Cockatoo Coal reserve exceeds 100 million tonnes in Surat Basin

ABC News reported that exploration company Cockatoo Coal has increased the expected yield from its prime deposit in the Surat Basin to more than 100 million tonnes.

Mr Mark Lochtenberg MD of Cockatoo Coal said that the company is now testing to see what sort of washing plant will be needed for the Guluguba deposit, between Miles and Wandoan. He added that the company is yet to determine how much it will need to invest before production can begin.

He said that "We have not done detail studies at this stage. We are still an exploration company, we're extremely confident that we will be going into production in at Guluguba and in other places in the Surat Basin, and it's probably dangerous for me to say, but certainly several hundred million dollars at Guluguba itself."

Mr Lochtenberg added that production would not be able to start until the 'missing link' rail line is built.

Napocor invites bids for 65,000 tonne coal

Reuters reported that Philippines' largest power producer National Power Corp, sought offers from previous suppliers to supply 65,000 tonnes of coal for its Pagbilao plant.

According to a notice, Napocor has solicited bids from four Indonesian producers, after it earlier failed to secure bids due mainly to high prices.

Napocor said that the budget for the high performance Pagbilao coal would be set two days before the bid submission and opening on July 16, based on published market rates such as globalCOAL.

It added that delivery of the coal for the 728 MW Pagbilao plant, south of the capital, is slated for September 11 to 20.