5 unions withdraw from proposed strike

It is reported that the Five Labor Federations of Major Port Trusts & Dock Labor Boards have withdrawn their strike notice proposing to go on strike on or after July 16th 2008. As per report, these unions reached an agreement with the Management on their principal demands after several round of discussions over the past few days.

The representatives of Labor Federations and Management met with Mr Thiru TR Baalu minister of shipping, road transport & highways, last week to resolve the dispute. On hearing from both the sides, the minister had given clearance to the following

1. Merger of 50% DA with Basic Pay with effect from 1st January, 2007 as per the guidelines issued by the Department of Public Enterprises. In the event of any favorable change in the Policy of the Government in future with regard to the date of effect of 50% DA merger with the Basic Pay for Public Sector Enterprises, the issue will be reviewed accordingly.

2. The payment of one-time lump sum adjustable advance calculated @ 13.5% of the existing Basic Pay as on January 1st 2007 (before 50% DA merger) with effect from January 1st 2007 to June 30th 2008. The amount will be paid within one month from the date of settlement. This amount will be adjusted at the time of disbursement of arrears of Pay and Allowances arising out of next long term wage settlement, due from January 1st 2007.

3. The standard wages for computation of Productivity Linked Reward shall be raised from INR 2,500 per month to INR 3,500 per month with effect from April 1st 2006, as per the provisions contained in PLR settlement dated 10th April, 2007. The orders in this regard would be obtained and issued as early as possible.

As a sequel to the Minister's approval, the Chief Labor Commissioner conducted the final conciliation meeting between the Management and the Labor Federations to settle these demands. A Settlement to this effect was signed by Indian Ports Association and Labor Federations.

The above measures will give a great relief to the workmen of Major Port Trusts and Dock Labor Boards of arrears and hike in the pay also. As a result the strike notices served by the Labor Federations have been withdrawn. All the Labor Federations have appreciated the position taken by Mr Baalu and for understanding the issues raised by the Port and Dock Workers and welcomed the positive attitude of the Ministry as well as the Management of the Port Trusts.

NMDC to face land issues for steel plant in Chattisgarh

The Indian Express reported that state run mining giant NMDC’s ambitious 3 million tonnes INR 15,000 crore integrated steel project in Chhattisgarh, for which it is likely to sign a MoU soon, would face delays in acquiring land due to impending elections in the state.

As per report, NMDC officials have been told by Chhattisgarh officials that land acquisition is a sensitive issue in the tribal dominated state and it may not be possible to acquire land for the PSU’s ambitious project pending completion of elections in the state.

The sources said that “The chief secretary of Chhattisgarh was again approached personally on June 15. He stated that in view of the coming elections, the state government finds it difficult even to agree to an in principle approval for land acquisition and for this purpose a go slow approach is required.”

As per report, NMDC has been told to re locate its project site from Dilimili to Nagarnar where it already has 1,000 acres of land and would need 3,000 acres more for the project. NMDC has identified 2,000 acres of land in the eastern part of its existing land and is pleading with the state to acquire the land which is inhabited by both tribals and non tribals. Besides, the project would need various clearances, including environmental clearance.

However, the state government had conveyed its willingness to enter into a MoU with NMDC for the project, which too now seems to be a distant dream. In addition, the state government is yet to pledge allocation of Bailadila IV iron ore deposit to NMDC, in the absence of which the entire proposal to set up the plan is likely to be jeopardized.

TATA Steel to seek help from human rights activists

ET reported that TATA Steel has decided to seek help from social and human rights activists to win the confidence of tribals opposing its proposed steel plant at Kalinga Nagar.

The official sources said that TATA Steel has formed a Grievance Redress Group, which comprised Orissa's former DGP Mr AB Tripathy and social activist Mr Tulasi Munda and Mr AV Swamy.

Mr Tripathy chairman of GRG and who also worked as a reporter for National Human Rights Commission in Orissa said that "I have given my consent to be part of the GRG formed by TATA Steel.”

Mr Tulasi Munda, highly rated among the tribal community, could play the role of peace broker between the company and agitating tribals.

A senior official in the State Industries Department said that TATA Steel had already informed the state government about the GRG.

Mr HM Nerurkar COO of TATA Steel's who attended a meeting with Union Steel Secretary Mr RS Pandey said that the company would set up its plant after getting positive approval from the locals.

POSCO clarifies on deadlines for land acquisition

HT reported that South Korean steel behemoth POSCO has not set any deadline for the Orissa government to acquire land for its proposed INR 51,000 crore steel project in Orissa. POSOC said that "The Company has not set any deadline to the government."

POSCO senior official of India said that the company needs 4,004 acres for the proposed plant. The total land requisitioned by the company, 3,586 acres belongs to Orissa government while the rest to private owners. The total land owned by the government, about 2,963 acres is deemed forest land, for which a forest diversion plan has been prepared and has moved through various government channels. It is awaiting final approval from a Supreme Court committee.

The official said that the POSCO total iron ore requirement is pegged to the tune of about 600 million tonnes for a span of 30 years after the proposed plant reaches optimum production capacity of 12 million tonnes.

Orissa Government is scheduled to give a final hearing to 16 more applications for Khandahar Mines on July 26th before recommending it to the Centre. The mine is estimated to have an iron ore reserve of about 160 million tonnes.

Government rules out the merger of HSCL and SAIL

Statesman News Service report Mr Juel Oram Sundergarh MP & BJP national VP recently claimed that Mr Ram Vilas Paswan the Union minister of steel, chemicals and fertilizers has informed that the government has ruled out the merger of Hindustan Steelworks Construction Limited and Steel Authority of India Limited

Mr Paswan has informed the MP that "The merger is not possible as there is no synergy of operation between the 2 units.”

In a recent communiqué to Mr Oram, the Union minister has said that his ministry has already submitted a note of proposal for revival and restructuring of HSCL to the Board for Reconstruction MP of Public Sector Enterprises. The said proposal is aimed at strengthening the financial condition, manpower and management structure of the company, which will also take care of the problems presently being faced by the staff of HSCL.”

As per report, the main demands of the HSCL employees were enhancement of retirement age from 58 to 60, release of daily allowances, leave encashment and restoration of suspended fringe benefits such as LTC & LLTC. The employees also demanded the posting of engineers at the Rourkela unit of HSCL claiming that since the last 2 years, no recruitment has been made at HSCL, Rourkela in spite of heavy input of modernization packages.

Madras HC issues notice on relocating Chennai steel market

ET reported that a division bench of the Madras High Court has issued notice to the state home secretary & industry secretary seeking why the iron & steel market in the heart of the capital was not shifted to the neighboring Tiruvallur district despite a 1999 government order.

The bench comprising judges Mr PK Mishra & Mr M Satyanarayanan, was reacting to a public interest litigation filed by Traffic Ramaswamy, a regular litigant on matters concerning public life in Chennai.

As per report, the iron & steel market, situated within a kilometer of Fort St George, the seat of power here is also barely 400 meters away from the former vegetable wholesale market, which was shifted a few years ago to the north western suburbs.

IFGL may shift unit to Chennai

BS reported that IFGL Refractories which recently acquired Hofmann group of companies is likely to bring feeder manufacture under Hofmann in Italy to Chennai.

Mr Pradeep Bajoria director of IFGL Refractories said that “The move would result in savings to the extent of 30%. Hofmann has 2 foundries in Germany & Czech Republic. However, there is no plan to shift the facilities to India.

He said with the acquisition of Hofmann, IFGL stepped into the foundry sector. IFGL plans to start filter manufacturing for foundry in Rourkela. He added that "We have land available in Rourkela and later if need be it can be shifted to Pune or Kandla."

Mr Bajoria said Hofman was acquired by IFGL for EUR 7 million. IFGL's turnover in 2007-08 was INR 378 crore and profit after tax was at INR 28.5 crore. IFGL GmbH, the special purpose vehicle a 100% subsidiary of Monocon International Refractories UK had been formed to acquire 96.16% of Hofmann Ceramics GmbH and 100% of Hofmann OHG, Germany.

JSW Steel in talks with Brazilian firm for iron ore assets

NDTV reported that after acquiring mines in Chile & Mozambique, JSW Steel is in talks with a Brazilian company Bahia Mining to buy iron ore assets.

Bahia Mining is estimated to have about 2 billion tonnes of iron ore reserves and is owned by Mr Pramod Agarwal, who recently sold 50% of Bahia Mining to Kazakhstan based company Eurasian Natural Resources Corporation.

Mangalore stevedores concerned over proposed strike

BL quoted the Association of New Mangalore Port Stevedores as saying that the proposed strike of the Federation of Major Ports Labor Unions from the midnight of July 15th will affect both the export & import trade and the common man.

Mr M. Shekhar Pujari President of New Mangalore Port Stevedores said that “Numerous importers & exporters are ready with definite shipment plans according to their letter of credit or contract terms. In case these shipments are not cleared or handled in time, the loss to trade would cross thousands of crores of rupees. Apart from this, industries concerned, transport vehicles & railways and all employed by these would be affected as a result of this strike.”

Mr Pujari said “The strike will further worsen the situation and make life of the common man miserable. In this background, any strike, go-slow or disruption of normal work at this port will only harm the interests of the people of Karnataka from whom these laborers are benefiting all these years. He added that requested the authorities to intervene to prevail upon the labor unions not to resort to any strike at New Mangalore Port.”

He said that the Union Ministry of Shipping should prevail upon the Federation of Major Ports Labor Unions to withdraw the strike call, especially at a time when the India is facing high inflation. He added that the country is already facing a high rate of inflation.

As per report, if work gets affected due to the strike it will unnecessarily cause inconvenience to the vessel owners, charterers, steamer agents and stevedores and shipping trade as they will have to incur huge losses by way of daily running costs of the vessel and demurrages.

Mr Pandey to be new Petroleum Secretary

PTI reported that petroleum ministry will have a new secretary, with Mr RS Pandey replacing present incumbent Mr MS Srinivasan who retires on July 31st 2008.

Mr Pandey a 1972 batch IAS officer from the Nagaland cadre is at present the Steel Secretary. He will have a 17 months stint as the Secretary, Ministry of Petroleum and Natural Gas.

Mr Srinivasan has been at the helm of affairs at the Petroleum Ministry for two and a half years now.

Kolkata Port to invite bids for consultants for Haldia jetty

Project Today reported that Kolkata Port Trust is likely to soon invite bids for the appointment of a consultant for the proposed riverine jetty at Haldia dock. The proposal in this regard is to be placed before the Board of Trustees of the port shortly.

As per report the selected consultant will be responsible not only for the preparation of the detailed project report but also for the total execution of the project. The jetty to cost around Rs.100 crore, will be located on the riverfront near the third oil jetty outside the impounded dock system and will have an initial capacity of 1.5 million TEUs.

The final work order by the Kolkata Port Trust will be issued in January 2010 and the commissioning is targeted by July 2011.

Venezuela to announce Sidor valuation in 1 month

BNamericas reported that the Venezuelan government will announce within one month how much it will pay Ternium as indemnity for the 59.7% stake the group owned in steelmaker Sidor before the government nationalized it.

Mr Hugo Chávez president of Venezuela's president was quoted by international press as saying that "In order to assess Sidor, you have to count every tube, every screw and how much that is truly worth, and in one month the actual definitive price of what will be paid to Ternium will be set.”

According to press reports, the parties may have already agreed on a price of USD 1.65 billion, slightly less than the USD 2 billion that was being negotiated.

Ternium in a recent statement said that the deadline for negotiating the conditions under which all or a large portion of Ternium's share of Sidor will be transferred to Venezuela has been extended to August 18th 2008. Ternium added that "Venezuela, acting through state heavy industry holding company, CVG, has assumed operational control of Sidor. But Ternium has not yet transferred its ownership interest in Sidor to Venezuela."

In 2007, Sidor produced 4.2 million tonnes and sold 3.9 million tonnes of steel products, an 8% increase over 2006 and 63% higher than sales in 1998, the same year Ternium gained control of Sidor through privatization.

Japanese steel majors seeking USD 300 hike for plate exports

JMB reported that Japanese integrated steel makers could increase the flat steel export price for October to December 2008 period aggressively when they cannot meet the strong demand.

As per report the steels including Nippon Steel and JFE Steel start the negotiation in late July preparing to offer more than USD 300 per tonne hike for plate steel compared with first half of fiscal 2008 started April and around USD 100 sheet steel from July to September 2008.

ArcelorMittal to build two steel factories in Indonesia

The Jakarta Post reported that ArcelorMittal plans to build two steel factories in Indonesia with a total investment of USD 6 billion.

M Lutfi head of the Indonesia Investment Coordinating Board said that "ArcelorMittal have come to us and discussed a plan to build two steel factories in Pasuruan, East Java and in Banten province.”
He said that ArcelorMittal had already purchased 100 hectares of land in Pasuruan on which to build a steel factory and that it was still seeking an appropriate site in Banten.

He added that "Each factory is expected to produce two million tonnes of steel.”

Mr Lutfi further added that the Luxembourg based company would return next week to further discuss the plan.

Nippon Steel unit to move into offshore oil and gas business

It is reported that Nippon Steel Engineering Co is bolstering its operating structure in a bid to win contracts spanning everything from design to construction of crude oil and natural gas processing facilities at sea.

As per report Nippon Steel Corp unit plans to win complete orders for marine central processing platforms, which extract carbon dioxide, mercury and impurities from crude and natural gas drilled from the seabed. To do so, it has beefed up the functions of an Indonesian subsidiary that handles sales and engineering in Southeast Asia and it will begin undertaking some design operations and such work as heat and pipe wear analyses that have been outsourced to date.

On top of upgrading a Thai plant, the company has also been hiring local engineers experienced in building central processing platforms.

Indonesia defense commission backs PT Krakatau IPO plan

Reuters reported that an Indonesian parliamentary commission urged the government to sell a stake in the country's largest steel maker, PT Krakatau Steel, through an initial public offering in a bid to protect national interest.

Krakatau Steel which has assets worth an estimated IDR 11 trillion (USD 1.20 billion), is one of 37 Indonesian state firms slated for privatization this year to help fund a widening budget deficit.

Mr Theo Sambuaga chairman of the defense and foreign affairs commission of Indonesia said that selling the shares through an IPO would ensure state ownership of strategic industries that support production of security and military equipment. He said that "The commission agrees with the government that efforts to increase funds for Krakatau Steel should be done by an IPO and not strategic sales to retain state ownership of strategic industries.”

The government has decided to sell the firm's shares through an IPO but the plan still needs to be approved by parliament. The defense and foreign affairs commission's recommendation suggests the plan may get the green light from parliament.

The government wants to keep a majority stake in Krakatau Steel, which produced 2.25 million tonnes of steel products in 2007 or about 30% of Indonesia's total steel demand. The government has said it is aiming to sell a maximum 40% stake in the firm.

HIG Capital acquire DynaSteel Corporation

HIG Capital LLC, a leading global private equity firm, announced that its affiliate has acquired DynaSteel Corporation.

DynaSteel specializes in engineering and fabricating complex, customized high precision carbon steel and specialized alloy systems used primarily in air quality control systems.

DynaSteel established in 1970, fabricates large scale, high precision, complex air handling systems for the power, cement, petrochemical and other industries. From three strategic locations in Memphis, Tennessee, Natchez and Iuka, Mississippi, the Company is able to leverage its unique waterway access to deliver integrated solutions to its customers. Customers value the ability to receive modularized systems via barge, enabling Dyna Steel to provide a cost effective and low risk solution.

Mr Jim Russell CEO of Dyna Steel Corporation said that "We are pleased to work with HIG to leverage their experience growing private businesses. The recapitalization of Dyna Steel allows us to continue growing our customer base across multiple end markets and expanding our facilities and gives us the flexibility to support our customers as they keep up with ever tightening environmental regulations."

Mr Richard Stokes of HIG Capital said that "We are excited about Dyna Steel's prospects, and intend to actively support the Company as it builds on its well-deserved reputation. We have great confidence in the management team as operators and believe that the partnership between Dyna Steel and HIG will facilitate and expedite our collective goal to grow the Company to a position as the pre eminent provider of high quality fabricated air quality products."

Salzgitter acquires a 5.8 % stake in Norddeutsche Affinerie

Salzgitter AG and Norddeutsche Affinerie AG announced that they have agreed to investigate medium to long term opportunities to cooperate for example in the fields of production technology, research and development as well as in procurement and sales for the benefit of both companies.

In conjunction with this activity, Salzgitter AG acquired a 5.8 % stake in the share capital of Norddeutsche Affinerie AG.

Dr Bernd Drouven CEO of Norddeutsche Affinerie AG said that “I am pleased about the commitment of Salzgitter AG, which knows our business very well as an industry related company. We feel it will be particularly useful to be able to have a cooperation with a reciprocal transfer of know how in various sectors, for example in research and development.”

The Norddeutsche Affinerie Group is the largest copper producer in Europe and the world leader in copper recycling. We produce some 1 million tonnes of copper cathodes and more than 1.2 million tonnes of copper products each year. We have 12 sites in 7 European countries with a total of about 4,700 employees.

AK Steel to increase price of carbon steel by USD 50 per ton

AK Steel announced that it will increase spot market prices for its carbon steel products by USD 50 per ton effective with new orders scheduled for delivery on September 1st 2008 and later.

AK Steel said that the price increase is in response to increasing global demand for carbon steel products, as well as the need to recover increases in steelmaking inputs.

California Steel Q2 sales up by 28% YoY

California Steel Industries, Inc announced second quarter results for the period ended June 30th 2008. California Steel said that sales revenues for the quarter are USD 431.1 million on shipments of 432,771 net tons, resulting in net income of USD 44.2 million. Its YTD sales revenues are USD 800.3 million, resulting in net income of USD 53.8 million.

Sales revenue for the period is 28%YoY as compared to Q2 of 2007. Net income was also higher than second quarter 2007's result of USD 8.2 million. EBITDA is USD 80.3 million in second quarter 2008, also higher than the USD 24.4 million result of second quarter 2007. YTD EBITDA is USD 106.9 million, higher than the same period 2007 of USD 37.1 million.

Mr Vicente Wright president & CEO of California Steel said that "CSI realized strong margins during this quarter. Unlike the international market, today's economic conditions in the United States are reflected in somewhat softer shipment levels. However, CSI's continued focus on cost controls throughout the company enabled us to report these results.”

He continued that compared to first quarter 2008's sales of USD 369.2 million, net sales in second quarter 2008 are 17% higher. Shipments are 7% lower in second quarter 2008 than in first quarter 2008, down slightly from 464,962 tons. Net income in second quarter 2008 is more than four times first quarter 2008's net income of USD 9.6 million.

Metals USA reports record Q2 result

Metals USA Holdings Corp announced record breaking results for the quarter ended June 30th 2008 which exceeded its previous record results posted in the second quarter of 2004.

The Company recorded net sales for the second quarter of USD 593.1 million, a USD 112.2 million increase from the USD 480.9 million recorded during the second quarter 2007. Adjusted EBITDA for the quarter ended June 30th 2008 was USD 92.6 million, a 104% increase from the USD 45.5 million recorded in the second quarter 2007 and more than 60% higher than the Company's previous record posted for the second quarter 2004. Adjusted EBITDA is a non-GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business.

Metals USA Holdings recognized depreciation and amortization expenses during the quarter of USD 5.8 million. Operating income, the GAAP measure that we believe is most comparable to Adjusted EBITDA, was USD 83.4 million for the second quarter, USD 44.0 million higher than the same period last year. Interest expense for the quarter was USD 19.9 million. Net income was USD 39.8 million, compared to USD 11.7 million recorded for the second quarter 2007, a USD 28.1 million increase.

Mr Lourenco Goncalves chairman, president & CEO of Metals USA Holdings said that "Despite the slowdown in the economy and historically low shipments from the service center industry this year, Metals USA produced our best quarter ever. We believe such a strong accomplishment was a direct result of our ability to gain market share and, at the same time, achieve price increases down the chain."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat rolled steel, non ferrous metals and building products markets.

Kobe Steel develops energy saving power generator

Kobe Steel Ltd said that it has developed a compact power generator using exhaust steam. The device, which has a maximum output of 132 kilowatts, turns its screws by using exhaust steam generated through industrial waste combustion.

Users of the device, if they operate the machine for 6,000 hours per year, will be able to reduce their annual carbon dioxide emissions by 440 tonnes compared with use of electricity generated by thermal power plants.

The device, called Steam Star can also be adopted by plants using steam as a source of heat in the manufacturing process, including those processing foods, paper pulp and wood materials.

Kobe Steel plans to add new models with higher outputs. The company aims to receive orders for 300 units in fiscal 2011 ending in March 2012.

ThyssenKrupp to buy back shares

On the basis of the authorization granted by the Annual General Meeting on January 18th 2008, the Executive Board of ThyssenKrupp AG resolved on July 14th 2008 to purchase on the stock market up to 10,500,000 shares of the Company, representing around 2% of the capital stock.

ThyssenKrupp said that the purchase price paid per share excluding incidental purchase costs may not be more than 5% higher or lower than the Company's share price determined by the opening auction in the Xetra trading system on the day of trading.

The buyback is to be handled independently and uninfluenced by the Company by an appointed bank in compliance with the safe harbor provisions.

ThyssenKrupp said that on completion of the buyback, together with the shares repurchased in summer 2006 and spring 2008 ThyssenKrupp AG will hold around 10% of the Company's shares which it can use as an acquisition currency, in particular for strategic acquisitions.

Esmark SeverStal deal details

AP reported that Mr J James Bouchard CEO and Mr Craig Bouchard president of Esmark will walk away from the sale of Esmark with a combined USD 9.8 million.

Documents filed with the Securities and Exchange Commission show the Mr James Bouchard will cash out his stock for USD 2.3 million and leave with a total of USD 5.9 million and Mr Craig Bouchard has USD 1.3 million cash out, plus another USD 1.6 million.

It said that nine members of the board of directors will cash out stock valued at just under USD 1 million.

Russia's OAO Severstal is buying Esmark. The Wheeling, West Virginia-based company has operations in 20 states, including a plant in Greensville County in Virginia. Severstal is paying USD 760 million for Esmark, plus the assumption of debt and loans. That puts the total value of the deal at USD 1.25 billion.

US Weekly crude steel production increase by 1.1%YoY

American Iron & Steel Industries reported that in the week ending July 12th 2008, US’s raw steel production was 2.081 million net tons while the capability utilization rate was 87.2%. Production was 2.059 million net tons in the week ending July 12th 2007, while the capability utilization then was 88.6%. The current week production represents 1.1% increase from the same period in 2007.

Production for the week ending June 28th 2008 is up 1.5% from the previous week ending June 21st 2008 when production was 2.076 million net tons and the rate of capability utilization was 87.0%.

Production for the week ending July 12th 2008 is down by 0.8% from the previous week ending July 5th 2008 when production was 2.096 million net tons and the rate of capability utilization was 87.8%.

Adjusted YTD production through July 12th2008 was 58.586 million net tons at a capability utilization rate of 88.6%. That is a 2.4% increase from the 57.235 million net tons during the same period last year, when the capability utilization rate was 85.9%.

District wise production for the week ending June 28th 2008
1. Northeast Coast: 183
2. Pittsburgh/Youngstown: 218
3. Lake Erie: 90
4. Detroit: 99
5. Indiana/Chicago: 478
6. Midwest: 259
7. Southern: 657
8. Western: 97
(In thousands of net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months

Hyundai Motor to raise car prices by 2% in August

Reuters reported that Hyundai Motor Co is raising car prices at home and abroad by 2% to cope with rising prices of steel and other raw materials.

Hyundai, the world's No.5 auto maker along with its affiliate Kia Motors Corp said it would increase all car prices for the local market by an average 1.9% and lift prices for overseas markets by an average 2.0 from next month.

Hyundai said in a statement that "With weak car markets in the second half, the price hike is feared to dampen the markets further. But it is difficult to endure the situation without price raises.”

It said steel plate prices have jumped some 60% since the start of the year and other costs have gained about 20%, adding that raw material prices were expected to increase further.

Hyundai raised prices for some export models including the Elantra sedan, earlier this month.

Nissan to raise prices of Forklifts in Japan on materials costs

Bloomberg reported that Japan’s 3rd largest automaker Nissan Motor Co will raise domestic prices on its forklifts by 4.8% to 6.5% to pass on higher costs for steel and other raw materials.

Nissan in a release said that the new prices will be effective from July 15th 2008 today. Prices for an engine based forklift will rise to JPY 2.53 million (USD 24,000) from JPY 2.39 million.

MARAD lands contracts for more vessels to be scrapped

The US Department of Transportation’s Maritime Administration announced that it has sold two obsolete ships to American salvage companies for more than USD 1 million each.

The sale of the vessels from the James River Reserve Fleet each exceed the agency’s ship disposal program’s earlier price of USD 1,151,727.

The vessels sold were the Kalamazoo, which has been sold to Esco Marine, Inc at Brownsville in Texas, for USD 1,465,726 and the Truckee which was sold to Bay Bridge Enterprises LLC at Chesapeake in Virginia for USD 1,231,328.

Maritime Administration also announced that three other obsolete vessels also were sold. The sale price of the three totaled close to a combined USD 1.5 million. It said that three other obsolete governments owned ships are also being sold for a combined price of nearly USD 1.5 million.

The Nitro has been sold to Esco for USD 446,726; the Gulf Merchant also was sold to Esco for USD 476,726 and The Rigel has been sold to All Star Metals LLC at Brownsville in Texas for USD 469,626.

With the sale of the five vessels Maritime Administration has 30 ships remaining to be disposed of in the James River fleet and less than 20 at Maritime Administration Beaumont Texas fleet.

Metso to build Fisker Karma hybrid car in Finland

Reuters reported that Finnish engineering group Metso Oyj’s car manufacturing unit Valmet Automotive had signed a letter of intent with US hybrid car producer Fisker Automotive to build the Karma hybrid car in Finland.

Metso in a statement said that deliveries of the four door hybrid sports sedan are set to start in the fourth quarter of next year, with production volume projected to reach 15,000 a year. But it gave no financial details.

Valmet will stop making Porsche's Boxter and Cayman models in 2012 after Porsche AG decided not to extend the manufacturing deal they have had since 1997.

CMC buy assets of RPS and affiliates in expansion of rebar fabrication

Commercial Metals Company announced that it has entered into a definitive agreement to purchase substantially all the operating assets of Reinforcing Post Tensioning Services Inc, Regional Steel Corporation, and RPS Cable Corporation based at Claremont in California.

Reinforcing Post Tensioning Services is a fabricator and installer of concrete reinforcing steel, post tensioning cable and related products for commercial and public construction projects with facilities in Fontana and Tracy, California and Las Vegas, Nevada with annual capacity of approximately 150,000 tons.

Completion of the acquisition is contingent upon regulatory approval and satisfaction of other closing conditions which are expected to be finalized within 60 days. At closing, the acquired assets will operate as part of the CMC Americas Fabrication and Distribution segment.

Mr Murray McClean president & CEO of Commercial Metals Company said that "This acquisition is part of our ongoing strategic expansion of CMC's downstream steel fabrication operations.”

Mr Russell Rinn executive vice president of Commercial Metals Company & president of CMC Americas added that "The addition of the outstanding RPS/Regional Steel team to the existing CMC team in California and Nevada will further enhance our ability to provide the best solutions and best service for our customers in these important markets. We are excited to have this dynamic group become a part of our CMC family."

Taiwan to ban GI imports from China

In order to avoid China’s GI products with lower prices, Taiwan Steel & Iron Industries Association has requested the government to impose a temporary ban on China’s GI imports.

Currently, GI product from China is transacted at USD 935 per tonne which is USD 131 per tonne lower than Taiwan mills’ price on average.

Due to administration procedure, the restriction law is expected to be approved in August and will be enforced in early September.

(Sourced from YIEH.com)

Plymouth Tube completes ISO 9001: 2000 and AS9100 REV B certification audit

As a result of successfully completing a recent audit, Plymouth Tube Co’s Salisbury Mill has earned the AS9100 Rev B registration to complement its already existing ISO9001:2000 registration, with no major non conformances found during an extensive audit.

The audit was conducted in accordance with requirements of SAE AS9104 Rev A and the registration process was completed by PRI Registrar, which is accredited by the ANAB to perform AS9100 / ISO 9001:2000 certification audits for clients.

Plymouth Tube Company’s Salisbury mill is a manufacturer of precision tubing for aerospace, high purity, pharmaceutical, medical and nuclear applications. The aircraft and aerospace industries value a manufacturer who is ISO 9001:2000 and AS9100 certified; due to the requirements the certification holds in the respect of maintaining an environment of improvement, communication, strong customer focus as well as growth in the field. Most of the top aerospace and aircraft companies are requiring their suppliers to be certified to AS9100.

Mr Steve Bohnenkamp vice president of sales & marketing of Plymouth Tube Company said that “We are pleased to have the AS9100 certification as it reinforces the quality procedures that we follow to ensure that our customers receive a high performance product. Our people at Salisbury have worked very hard at achieving this recognition.”

ArcelorMittal acquires outstanding shares in Rolanfer Recyclage SA

ArcelorMittal announced that it has acquired the outstanding 60% of the shares in Rolanfer Recyclage SA which now gives it 100% control over the company.

Rolanfer is based at Yutz in France near Thionville on the border with Luxembourg and operates a shredder at the port of Illange. It specializes in the processing and recycling of scrap metal products including incinerated scrap, shredded scrap and demolition scrap.

The bulk of its production is delivered to ArcelorMittal sites in Luxembourg. This acquisition will assist in securing the supply of scrap metal to ArcelorMittal operations in the region.

In 2007 Rolanfer's gross turnover was EUR 13 million and it shipped approximately 86,000 tonnes of scrap metal for the year and currently employs 24.

Euro Finance to set up 1.8 million tonne steel plant near Kiev

Siemens VAI Metals Technologies received an order from the Ukrainian based scrap trader Euro Finance Limited for the supply of a minimill at a new production facility at Byelaya Tserkov near Kiev in Ukraine.

The project includes an electric arc furnace, a ladle furnace, a billet caster, a long product rolling mill in addition to auxiliary facilities. The minimill will boast a production capacity of 1.8 million tonnes per year and is scheduled to go into operation in mid 2011.

Siemens VAI Metals Technologies received contracts for the engineering and supply of process equipment for the new minimill, including a 120 tonne capacity Simetal Ultimate EAF with a tapping weight of 120 tonnes, a twin station 120 tonne ladle furnace, an eight strand billet caster and a wire rod and bar rolling mill. The supply also includes an alloying system, dedusting system, cranes and other mobile equipment, laboratories in addition to the related electrical and automation systems. Advisory services for erection, start up and commissioning will round off the scope of supply.

The Simetal Ultimate EAF will be a high performance furnace capable of melting 1.8 million tonnes of scrap each year. Low to medium carbon, low alloyed and alloyed steel grades will be produced. Single bucket charging will be practiced which will shorten tap to tap times by several minutes. The furnace will also be equipped with refining combined burners, oxy gas burners and PC lances to accelerate initial melting and enable post combustion.

The twin station ladle furnace with 120 tonne capacity vessels will serve for the fine adjustment of the steel composition as well as to adapt the final temperature of the steel as required for casting. The 18 bin alloying system will supply the EAF, the ladle during tapping as well as the ladle furnace.

The treatment capacity of the dedusting plant will approximately 1,720,000 Nm3 per hour and the clean-gas dust content will be less than ten mg/Nm³. Primary offgas from the EAF (270,000 Nm3/h) as well as secondary fumes generated during EAF melting, tapping, charging and deslagging will be exhausted and cleaned by the dedusting system. Furthermore, emissions from the ladle furnace, material-handling system and other auxiliary systems will be extracted and treated.

The eight-strand billet caster will be capable of casting 1.8 million tonnes of billets per year in 125mm and 150mm square formats. Each strand will be equipped with Dynaflex oscillators for the flexible adjustment of the mold-oscillation parameters as well as with Diamold high-speed casting molds. Level 1 and Level 2 process optimization packages will also be supplied.

The continuous rolling mill train with a nominal rolling capacity of 800,000 tons per year will be a combined wire rod and bar rolling mill. It will be comprised of ten mono block stands for the rolling of wire-rod at speeds of 105 meters per second to diameters of 5mm to 16mm and 20 stands for bar rolling at speeds of 18 meters per second. The rolled bars will be comprised of rounds with diameters of 10mm to 40mm millimeters, rebars with diameters from 8 to 40 millimeters and square bars with diameters between 10mm and 40 millimeters.


Euro Finance Ltd is the leading scrap supplier in the Ukraine. The company owns a network of scrap collection and processing companies located in the Ukraine and Russia and also owns companies in Switzerland and the UK. Their main business activities focus on the purchase, preparation and sale of steel scrap to steel producers in the Ukraine as well as to foreign companies. Because of high scrap export taxes, Euro Finance Ltd. decided to build a new minimill in order to produce and sell billets and rolled products to take advantage of new business opportunities. This investment will enable the company to expand its production and marketing activities for high quality billets and long products.

3 Turkish shipyards closed down on labor safety violations

Todays Zaman reported that after inspectors from the Labor and Social Security Ministry prepared their reports on shipyards at Tuzla in plagued with work related accidents and deaths. As per report, Şaban Kasap Şahin Teknecilik, Mengi Yay Yatçılık Corporation and GESA Gemi Corps received closure notices that will remain in place until their infrastructure and job safety are improved.

According to the report, equipment used at these three shipyards is considered hazardous to employee safety; the inspections also criticized the work hours and system in place as unhealthy.

A commission comprising the managers from the Tuzla shipyards, inspectors of the Labor and Social Security Ministry and representatives of both employees and employers decided on July 9th to close these shipyards until the safety violations mentioned in inspectors' reports have been taken care of. The shipyards contacted the commission after receiving the closure notices to inform it that any problems the inspectors might have found have been fixed. The shipyards will reopen once inspectors revisit and certify the sites as safe.

Mr Faruk Çelik Labor and Social Security Minister said his ministry has held a close eye on the shipyards in an effort to get rid of safety hazards. He said that the ministry's inspectors are still working in the region, but noted that inspections are not the sole solution.

Mr Çelik said that everyone, from employee and employer associations to ministries has a job to do in order to improve working conditions at shipyards. The minister noted that there are some problems that even these associations and ministries cannot fix and that meetings such as a recent one attended by representatives from many groups and held under the leadership of Mr Recep Tayyip Erdoğan Prime Minister are important.

GCC GDP growth seen at 6.4% for 2008

The report forecast that real GDP growth rate of Gulf Co operation Council region will rise by 1.1 % to 6.4 % this year, while the region's nominal GDP is projected to cross USD 1 trillion mark this year. The nominal GDP is likely to jump from USD 812.7 billion in 2007 to USD 1,001 billion this year.

Merrill predicted that inflation in the Gulf region would jump by 3.7 % this year to average around 10.4 % against 6.7 % in the previous year.

According to the report, the GCC countries' current account surplus would surge by around 10 % to 36.2 % of GDP this year.

The bank sees GCC countries, home to around 40 % of the world's proven oil reserves and 25 % of natural gas reserves, a safe haven for investment amid the ongoing troubles in financial markets and weakening global economy. Despite the high inflation threat, the global bank sees GCC a success story as the oil windfall continues to boost infrastructure spending; reliance on petrodollar is diminishing; and sovereign wealth funds' investment income is gradually substituting oil revenues.

Merrill said the regional countries have accumulated USD 750 billion over the past five years in current account surpluses and with oil prices around USD 140 per barrel, they are likely to receive another USD 360 billion in 2008 in their external surpluses which is around USD 1 billion a day.

Despite the recent easing in fiscal policy to fight inflation through unorthodox policies such as higher wages and subsidies, and lower import tariffs, GCC are prudent in their fiscal spending, saving 70 % of its oil windfall.

Al Ghurair & ETA consortium inks deal with NOC of Libya

The Star Consortium comprising of the Al Ghurair Investments’ subsidiary TransAsia Gas International and ETA Ascon Star Group’s Star Petro Energy, have successfully concluded a deal with the National Oil Company of Libya to set up a JV company to own and upgrade its Ras Lanuf refinery.

The companies had signed a JV framework agreement in February earlier this year confirming their intentions to form the JV Company which has now been concluded after signing of the Shareholders Agreement. The shareholder agreement was signed by Dr Shukri Ghanem, Chairman of National Oil Corporation of Libya, and Mr Abdullah Ahmad Al Ghurair, Chairman Al Ghurair Investments and Star Consortium.

The proposed JV Company will be incorporated and registered in one of the free zones in Dubai, with offices in Ras Lanuf, Tripoli and Dubai. The consortium is considering the DMCC, among the free zones in UAE, to set up the JV. The company will be a 50:50 JV between the Star Consortium and NOC.

The up gradation project which is estimated to cost USD 2 billion will take five years to complete and would start immediately. It will involve revamping and refurbishment of the existing plant to increase capacity and improve efficiency as well as upgrading and expansion of the refinery, using state of the art technology to improve the quality of products to meet latest international standards.

Mr Abdullah Ahmad Al Ghurair said “This deal with Libyan National Oil Company is a major achievement for TransAsia Gas International, which clearly demonstrates its capacity to carry out work on large scale refinery projects. By winning this JV contract, the company has moved one step closer to becoming a fully integrated energy company. We are confident that and the Star Consortium, including TransAsia Gas International, would meet the expectations of our JV partners.”

Mr Syed Salahuddin MD of ETA Ascon Star Group said “Star Petro Energy is proud to be part of the Star Consortium in the deal with Libyan NOC to revamp one of its refineries. We will contribute our best of efforts to make this project a role model for other UAE companies seeking to spread into North African markets.”

UAE government plans four power plants in Ras Al Khaimah

It is reported that four electricity plants with a total capacity of 740 MW are to be built by the Ras Al Khaimah Government. According to the report, the first plant at Al Hamra with a capacity of 120 MW, will cost AED 440 million and will become operational in November.

Dr Khatir Massaad economic advisor to the government and CEO of Ras Al Khaimah Investment Authority said plans for a 2,000 MW plant to meet the needs of the emirate's future expansion are being studied. He said that we have imported the necessary equipment, some of which is ready for installation. We will start installation in the next two weeks.

As per the report, an 80 MW plant at Al Ghail Industrial City and another with a capacity of 40 MW at Al Hamra will be ready for operation in June 2009. The combined cost of both plants will be USD 120 million. And the fourth plant, with a capacity of 500 MW is due to open in September 2010.

Dr Massaad said the Ras Al Khaimah Government had appointed international consultants to set up of the power stations. The plants will be entirely owned by the government, which will charge customers the same as the Federal Electricity and Water Authority.

Dr Massaad further added that "We are keen to attract not just investment but long term investment. We make economic feasibility studies of each application as we do not want our investors to lose but to make profits and benefit from continual growth. We advise investors about the types of businesses that would guarantee long term capital growth. The country is witnessing a property boom and as a result many people wish to invest in building materials. We suggest them not to do so as the needs of the local market are already being met. Investors are advised to consider exporting to other markets and not just selling in the local market."

UAE GDP growth likely to be at 7.2% for 2008

A new Merrill Lynch report said that the UAE's real GDP growth rate is projected to slow down to 7.2% this year against 7.4% in the 2007.

The forecast by the world's leading financial and advisory company is in line with the UAE's Ministry of Economy statement recently that real GDP grew by 7.4% in 2007.

The report said the UAE's nominal gross domestic product growth is expected to rise from last year's USD 190 billion to USD 237.5 billion in 2008. It, however, forecast that inflation in the UAE will rise this year to average around 12.1% against 11.1% in 2007.

The Merrill report said the country would post fiscal balance of 35% of GDP this year compared to 29.2% in 2007. The UAE's account balance is likely to jump from last year's 19.5% to 34% of GDP this year.

Cement prices in Pakistan hit record high

Dawn reported that cement prices of various brands hit a record peak of PKR 355 to PKR 395 in Pakistan after the budget as the same was available at PKR 290 to PKR 310 before. In May the price had been hovering around PKR 240 to PKR 270 per 50 kilogram bag.

AS per report “Falcon cement at the retail side was available at PKR 370 to PKR 380 as compared to PKR 350 last week. In April it was sold at PKR 290. The Lucky cement price is tagged at PKR 355 to PKR 360 as compared to PKR 330. In April Lucky cement was available at PKR 275. Even Javedan and State cement are available at PKR 350 as compared to PKR 290 in April.”

A cement dealer said that the manufacturers are creating artificial shortage by supplying very low quantities in the local market and exporting huge quantities. He said that it seemed that there was no authority or the government to check the monopoly of the manufacturers. He added that the cement prices were supposed to rise by PKR 10 per 50 kilogram bag after the imposition of federal excise duty and one per cent additional sales tax but the cement makers increased the prices of their free will.

A leading cement manufacturer said that his company had increased the rate only to PKR 325 per 50 kilogram bag from PKR 300 after the budget with increase in FED, impact of gas tariff hike, coal price increase and rupee dollar parity.

He said the dealers had been seen charging PKR 380 to PKR 395 for Falcon cement without any reason as its price at retail should range between PKR 350 to PKR 360 per 50 kilogram bag. He added that even the paper bags price also surged to Rs16.60 per bag from PKR 13.30 after the budget.

The manufacturer said that local sales during 2007-08 surged to only 22 million tonnes from 21 million tonnes in 2006-07. However, the industry exported seven million tons of cement to various countries as compared to 3.5 million tonnes in the year before.

Suez Canal revenue in June up by 31% YoY

Suez Canal, the waterway that carried a 10th of global seaborne trade in 2007, said that its revenue gained 31% in June as the number of ships and tonnage increased. Income climbed to USD 471.4 million, from USD 358.8 million a year earlier.

The Suez Canal Authority in a statement said that as many as 1,819 ships, including 288 oil tankers, carrying 76.3 million tonnes of goods transited the canal in June 2008 as compared with 1,657 vessels carrying 66.8 million tonnes a year earlier.

It said that Egypt raised the toll for crossing the canal by an average of 7.1% starting in April to take advantage of an increase in seaborne trade from Asia.

The 139 year old waterway, which was nationalized in 1956, generated revenue of USD 4.2 billion for the fiscal year to June 30th 2008, 17% more than a year earlier.

Turkish flat product market weakens last week

It is reported that Turkey’s domestic steel flat product market remained stable last week. However, local demands are projected to turn slow since the long vacation of August in Europe is approaching.

Most of Turkish steel flat exports to EU are used in steel pipes, automotive and machinery industries and those industries have lower the production due to vacation.

On the other hand, many European traders are holding off from buying from Turkey because the largest steel flat producer Erdemir has not announced its new price yet.

Cement price fixed at AED 18 per bag in Doha

Khaleej Times reported that 41 cement manufacturers and distributors have agreed with Mr Mohammed Ahmed bin Abdul Aziz Al Shihhi Minister of Economy to sell most sought after building material-cement at AED 18 per bag at stores within the city limits.

However, AED 19 per bag will be charged by cement outlets located outside the city limits. However the cement industry has also committed to increase its daily production from 150,000 bags to 250,000, to ease off the demand crisis in the country.

Mr Mohammed Ahmed bin Abdul Aziz Al Shihhi, Undersecretary at the Ministry of Economy, showed his satisfaction over the agreement with the cement manufacturers and dealers, saying it will benefit the economy. He said that it is outcome of a MoU signed in the month of May with cement manufacturers to regulating prices. He added that the agreement will prevent cement distributors and agents from raising prices without any justification, besides ensuring timely delivery of the commodity at an appropriate price.

Mr Al Shihhi further added that the agreement will contribute to market stability, and also root out monopoly situation, which was affecting construction industry. He asked the cement manufacturers to remain committed to the prices agreed, hinting at stern action against violators. He also asked the customers to register their complaints regarding over charging the prices at the Ministry of Economy.

Pakistani firm inks wind power MoU with China

According to the company sources, in order to promote alternative energy especially with wind generation a Pakistani enterprise has signed a memorandum of understanding with China’s one of the world top wind turbine manufacturers.

Mr Tariq Sayeed chairman of Planet Energy and Mr Khurram Sayeed Executive Director, whereas Goldwind Science and Technology was represented by Mr Wang Xiangming its Vice President were resent at the signing of the MoU. MoU was signed at Urumqi in China.

The Planet Energy Limited has signed the MoU with Goldwind Science and Technology, China’s largest and one of the world’s top 10 wind turbine manufacturers, for purchase of turbines for its planned 50MW wind farm with the option of increasing it to 150MW.

6 vessels to dredge Port Rashid site in Dubai

Emirates Business reported that 6 vessels will be deployed to carry out dredging work at the Port Rashid redevelopment in Dubai. Work is expected to start soon after the developer awarded the AED 2.2 billion contract to a joint venture set up by Dredging International and Boskalis Westminster Middle East.

As per report, Dredging International will be the managing partner and the work will be executed in a partnership. The companies will use some of the biggest trailing suction hopper dredges in the world. The work will include a sizeable amount of land reclamation including the construction of a breakwater and shore protection.

A total of 86 million cubic meters of sand will be dredged for the reclamation of 540 hectares. There will be a new cruise terminal with 3.4km of quay walls.

A senior official of Dredging International in Dubai told Emirates Business the companies formed the joint venture to share resources. He said that "Most of the existing vessels are involved with one activity or the other and we require about six hopper vessels for the Port Rashid assignment. Both companies will share resources to successfully complete the project."

The official said "We have started setting up the site office. Construction work is expected to start immediately and will be completed in three phases by end 2010."

This is the fifth major contract Dredging International has won recently in the region. The others are the Pearl of the Gulf project in Qatar, Al Raha Beach development in Abu Dhabi and Al Marjan and Al Dana Islands at Ras Al Khaimah.

Iran and China trade to hit USD 30 billion this year

Tehran Times reported that Mr Zhai Jun Chinese Assistant Foreign Minister estimated the Iran China trade value to hit USD 30 billion by the end of 2008.

In his meet with Mr Seyed Mohammad Ali Hosseini Iranian deputy foreign minister for parliamentary and international affairs, the Chinese official expressed satisfaction over the growing trend of bilateral economic ties.

According to the report, the value of trade between the two countries stood at 12 billion dollars at the end of the fifth month of the current year, he said adding that the figure is expected to reach 30 billion dollars by the year end.

Mr Jun noted that statistics show the volume of trade between Iran and China has increased by 57 % within the first five months of the current year compared to the correspondent period in 2007.

Pakistan seeks investment in hydropower projects

It is reported that the policies of the present government are highly investment friendly and it would welcome foreign investments in hydro power projects, which are vital to cope with the growing challenge of energy shortages in the country.

Mr Syed Yousuf Raza Gilani PM of Pakistan said this while talking to Mr Wang Shaofeng Vice President of China International Water and Electric Cooperation, who called on him at the Prime Minister House along with a delegation recently.

The CIWEC vice president offered 80 % investment of the cost supplies credit against sovereign guarantee in order to complete the 1,100 MW Kohala hydro power project at River Jhelum which is at feasibility design stage by Wapda. The remaining 20 % would be borne by the Pakistan government.

Mr Wang Shaofeng offered 100 % investment by his CIWEC in 500 MW and above hydropower projects on build operate transfer basis anywhere in Pakistan. As per the report, the prime minister appreciated the offer and said the government would give due consideration to these offers.

Saudi Arabian oil production capacity by 2010

It is reported that Saudi Arabia will not be able to pump more than 12 million barrels per day by 2010 and its sustainable production level will be only 10.4 million barrel per day reported.

As per report, Saudi Aramco will be limited to sustained production of just 12 million barrels a day in 2010 and will be able to maintain that volume only for short, temporary periods such as emergencies. Then it will scale back to a sustainable production level of about 10.4 million barrels a day.

As per the report, the increased capacity is part of the kingdom's policy to maintain idle capacity of around 1.5 to 2 million barrels per day to ensure it can quickly meet any emergency shortages and is not necessarily intended to be used on a long term basis.

Saudi Arabia said that it will pump 9.7 million barrels per day this month, its highest rate in over three decades and 550,000 barrels per day more than in May, and pledged to keep pumping at that level for the rest of the year if customers demand the extra oil.
Saudi Arab, the world's biggest exporter, last month had said that it is on track to boost capacity to 12.5 million barrel per day by the end of next year and that it is ready to add another 2.5 million barrel per day in the coming years in a bid to tame roaring prices fuelled in part by growing fears over limited global supplies.

Oman doubles allocation for Duqm Port and Dry Dock project

Gulfnews.com reported that the Omani government has almost doubled its allocation for the Duqm Port and Dry Dock project to allow for the development of a world scale maritime gateway on the sultanate's southeastern coast.

According to the report, the initial investment in developing the marine infrastructure for the giant port and ship repair yard complex has gone up from OMR 368.9 million to OMR 700 million. The additional allocation will go towards expanding the overall capacity and size of the port to make it suitable for supertankers and mega sized chemical carriers.

As per the report, an international consortium of contractors is currently developing the marine infrastructure for the port project, covering the dredging and reclamation components, as well as construction of breakwaters and quay walls. However, with the latest allocations, the scope of their contract has been further enlarged to enable the creation of a deepwater port that can accommodate a major shipbuilding yard in the future.

The report said that the enlarged port will now feature extended breakwaters, deepwater berths of 18 meters, a considerably lengthened quay wall to accommodate chemical and liquids carriers, and a deepened access channel.

The report further added that the Omani government hopes to capitalize on Duqm's proximity to international and regional sea lanes to attract all manner of ships that require maintenance, repair and dry docking services.

Lootah BC bags gas distribution pipeline deals in Abu Dhabi

MEED reported that the local Lootah BC Gas has won two contracts to build and convert gas pipelines in and around Abu Dhabi city, totaling about AED 145 million. The larger of the two contracts, worth about AED 75 million, covers the installation of gas distribution pipelines at Yas Island.

As per report, the work involves laying 15 to 20 kilometers of pipes to provide gas to the planned Formula One race track on the island. It also includes pressure reducing stations and desulphurization facilities.

The report added that the second deal worth about AED 70 million, involves conversion of existing gas pipelines to carry liquefied petroleum gas. The contract, known as NGD 7, also calls for the connection of the LPG pipelines to local petrol stations.

Lootah will carry out the contract in a JV with Abu Dhabi based QEnergy, itself a JV between Lootah and Abu Dhabi's Al Qudra Holding. The client is local property developer Aldar.

Chinese mills profit in H1 of 2008 up by 50.8% YoY - NDRC

According to China’s National Development & Reform Commission, Chinese steel industry has continued to post robust growth in January to may 2008 bolstered by rising steel prices. The sector has realized a total profit of CNY 142.6 billion in the period up by 50.8% YoY from same time of last year and the growth rate gains 12.2 percentage points from that of January to February.

According to Shanghai Securities News, China's steel output amounts to 216.11 million tonnes in the first five months up by 9.4% YoY or 18.63 million tonnes from the year ago. However, the growth rate dips 10.5 percentage points on YoY comparison. Meanwhile, steel export has dropped considerably as a result of export tax adjustment and strengthening yuan.

The report also reveals that steel exporters are inclined to circumvent the new export tax policy. For example, commercial wire rod & bar and angle & section shipment has fallen 45.9% and 37.9% in the first four months respectively due to the export duty, while those tax-free alloyed bar and section export has soared 170.9% YoY and 240.6% YoY respectively. It's the same case with steel plate export.

Domestic steel price has risen swiftly in the first half, with steel price index up 31.49 points or 25.1% from the year start to 156.86 in late May. The price rally has been underpinned by high growth rate of national overall economy and fixed-assets investment and spiking raw materials prices as well. The benchmark ore price rises 65% to 71% and coke price doubled to CNY 2400 per tonne. Moreover, surging international steel price has also lent support to domestic price. By the end of May, international steel price index jumps to 268, up by 55.5% YoY from same time of last year, 17.1 percentage points higher than domestic price rally.

NDRC said that investment in iron and steel sector has shown sign of rebounding in the first five months. Steel investment has increased 22.4% YoY to CNY 96.55 billion in the review period, gaining 17.5 percentage points from the growth rate of last year.

Steel mills have stepped up efforts in consolidation while leading mills are scrambling to set up Greenfield plants in coastal regions. However, M&A in the sector are mostly restricted within the same province; therefore, the mills would have limited capability to optimize the resource deployment across the country.

Baosteel to acquire 8% stake of Zhanjiang Port

It is reported that China's top steelmaker Baosteel will purchase 8% stake of Zhanjiang Port Group. Analysts point out this move is to make preparation for the steel maker's Zhanjiang steel project in transportation.

Mr Fu Yuning chairman of China Merchants Holdings Company Limited said Baosteel has bought 8% of Zhanjiang Port Group.

CMHI last year invested CNY 1.6 billion for a 45% stake in the group with the rest 55% going to Zhanjiang State owned Assets Supervision and Administration Commission. He said that BaoSteel’s move will dilute Zhanjiang Port Authority's share to 52% and CMHI's stake to 40%.

An insider from the port group confirmed the news and said that the project is waiting for government approval when approached by reporters yesterday. He also disclosed the two shareholders would jointly transfer 8% share to Baosteel, but he declined to reveal the details.

Baosteel said that it would lead several small shareholders to buy the stake and would gain 8% itself. Industry analysts believe Baosteel's move is to ensure smooth transportation for its Zhanjiang project.

Chinese HRC export market remain weak

It is reported that Chinese export market for hot rolled steel coil remain slow this week and there have been less contracts at the current high price level.

Domestic HRC prices are still in downward adjustment. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 5800 per tonne to CNY 5830 per tonne up CNY 40 per tonne from last week. That for 1800mm wide cargo goes at CNY 6220 per tonne a decrease of CNY 20 per tonne. However, price for commodity grade 2.75mm HRC has increased by CNY 80 per tonne to CNY 6180 per tonne.

Export offers for commodity grade HRC by tier two steel makers are prevailing at USD 1020 per tonne to USD 1040 per tonne FOB and those by tier one producers are at USD 1050 per tonne FOB up.

(Sourced from MySteel.net)

Chinese domestic prices for rebar likely to fluctuate

It is reported that rebar prices have turned stable since early July 2008. Downstream demand for rebar has come back when plum rain came to an end at the start of July.

Mr Liang Taigeng GM of Shanghai Hualei Enterprise Co Ltd said that rebar price in Shanghai would remain in fluctuation and tend to rise slightly.

As per report, long heavy rain has exerted adverse effect on construction and it led to drop in rebar demand. But now buyers have come back to market and there has been more demand than last month, especially HRB400 28mm or 32mm rebar.

1. Demand from construction industry has turn better despite high temperature. High speed railway, subway, and tunnel construction are still in the process and there would be no decrease but increase in demand in this summer.

2. Higher cost is bolstering the further increase in steel price. Chinese steel makers have to raise price to offset the increasing cost and there is almost no room for drop in market prices.

3. High international market price is supporting rebar exports. The great price gap between overseas market level and Chinese ex works prices has led to robust exports and it is in the interests of the booming of domestic market.

4. No pressure of oversupply due to cut and suspension in output by some steel producers in North China. Those steel mills are required to reduce production so as to help improve the quality of air surrounding Beijing where Olympic Games is to be held in early next month. Most of the tonnages they cut are construction steel production.

Therefore rebar price in Shanghai are going to remain in a dull period but would go up slightly in the next two to three weeks.

(Sourced from MySteel.com)

Chang Jiang to order 6 bulk ships for USD 248 million

Bloomberg reported that Chang Jiang Shipping Group Phoenix Co will order six bulk ships for CNY 1.7 billion on rising use of inland and coastal waters for cargo shipments.

Wuhan, Hubei province based company in a statement to the Shenzhen Stock Exchange said that the 45,000 DWR vessels will be delivered between March 2011 and December 2011. Each ship is expected to make a profit of more than CNY 26 million.

Mr Fu Yuning chairman of shareholder China Merchants Holdings Co said that China wants to move more coal, grain and other goods by sea and river as this is cheaper, less polluting and more reliable than road haulage. Shanghai Port China busiest eventually aims to move 30% of domestic cargo via the Yangtze River.

Wugang 6 months 2008 profit up by 20.5%YoY

China Daily reported that Wuhan Iron & Steel Group posted a one fifth growth in first half profit on increased sales and cost cutting efforts.

Wuhan said its January to June 2008 profit up by 20.5% YoY to a record CNY 6.05 billion from a year earlier, laying a solid foundation for its target of earning CNY 10 billion for the whole of the year.

Wugang's sales revenue reached CNY 63.18 billion yuan in the first six months up by 89.8% YoY compared to the same period last year. Meanwhile, its crude steel production increased by 54.9% to 11.26 million tonnes. The group had earlier said that it expected to produce 22 million tonnes in 2008.

Wugang said it is also doing its utmost to cut costs mainly by using more home-produced iron ore to fend off price hikes of overseas iron ore as well as other raw materials.

Huaigang's H1 profit hits CNY 664 million

It is reported that Jiangsu Shagang Group's Huaigang Special Steel Co in H1 2008 has churned out 1.34 million tonnes of iron up by 57.5% YoY, 1.47 million tonnes of crude steel up by 56.3% YoY and 1.31 million tonnes of finished products up by 52.1% YoY.

Shagang Group's Huaigang Special Steel Co produced 1.8 million tonnes of sintered ore up by 103.3% YoY, 409,400 tonnes of coke up by 111.8% YoY and 172.6 million KWH of electricity up by 81.5% YoY during the same period.

Huaigang reaped gross industrial output value of CNY 6.87 billion up by 107.9% YoY sales revenue of CNY 7.64 billion up by 66.1% YoY and pretax profit of CNY 1.03 billion up by 152.6% YoY in the review period out of which profit gains CNY 664 million up by 174.3% YoY.

Sangang Group realized H1 profit of CNY 1 billion

It is reported that in the first half year, Sangang Group kept good situation for development, the main economic indictors continued to keep advanced level.

The Group totally produced 2.723 million tonnes of steel, realized sales income of CNY 13.63 billion up by 172.8%YoY and realized net profit of CNY 1.016 billion up by 159.3% YoY.

Hanggang posts 13% growth in H1 of 2008

It is reported that during the first six months of 2008, Hanggang Group realized sale income CNY 35 billion and profit of CNY 1.19 billion , including CNY 10.03 billion of sale income from Banshan Iron and Steel base, which is CNY 1.046 billion more from that of the same period in 2007, accounting 71.64% of the year plan.

During the first half of 2008, the company had sold steel products 2.029 million tonnes, increasing by 229,100 tonnes, 12.73% from that of the same period in 2007.

Scrap market runs stable in Liaoning

It is reported that scrap market runs stable in Liaoning province of China recently, but resources were still in shortage and some steel mills could not gain delivery.

Scrap purchasing price of Dongbei Special Steel Group remained at CNY 3800 to 4080 per tonne and CNY 4070 per tonne for heavy scrap in Linyuan Iron and Steel Group. Price of heavy scrap in Benxi Iron and Steel Group was CNY 3600 to 3830 per ton.

At present, scrap resources in the market were still in tight supply and the inventory of local steel mills is not good. Steel mills are not willing to improve scrap purchasing price due to the weak steel demand and the slight turnover. Conversion pig iron market since last week becomes weak.

US ITC ruling advances China steel nail anti dumping case

It is reported that the US International Trade Commission has voted unanimously to advance an anti dumping case against steel nails from China.

Commissioners voted 6-0 that US producers have been materially injured by Chinese steel nails sold in the United States at less than fair value, paving the way for the Commerce Department to issue a final anti-dumping duty order.

The petitioners are Davis Wire Corp, Gerdau Ameristeel Corp, Maze Nails, Mid Continent Nail Corp, Poplar Bluff, Treasure Coast Fasteners Inc, and the United Steelworkers union.

Scrap price move up in Shandong

It is reported that scrap market ended smooth running recently in Shandong and some steel mills have raised up scrap purchase prices by CNY 80 per tonne to CNY 100 per tonne.

1. Laiwu Steel lifted prices by CNY 80 per tonne, leaving latest prices at CNY 4150 per tonne for No 1 heavy scrap, CNY 4110 per tonne for No 2 heavy scrap and CNY 4068 per tonne for medium scrap.

2. Juneng Special Steel raised up prices by CNY 100 per tonne, pushing latest price to CNY 4010 per tonne for heavy scrap, CNY 3950 per tonne for first grade charging quality scrap.

3. Other mills' prices stay unchanged. And most of them report increasing pressure in stock replenishment.

As per report, the overall scrap price rise in Jiangsu has lent support to the price advance in Shandong. However, local pig iron price appears to be weak at the moment. And Laiwu Steel has lowered pig iron purchase price by CNY 40 per tonne further yesterday to CNY 4790 per tonne.

(Sourced from MySteel.net)

Datang power generation in H1 up by 11.08% YoY

Reuters reported that Datang International Power Generation Co Ltd generated 62.2529 billion kilowatt hours of power in the first half of 2008 up by 11.08% YoY from a year ago. Total on grid power generation increased 10.96% YoY during the six months period to 58.5987 billion kWh.

Datang said an increase in capacity of its operational generating units had led to the rise in power generation during the period. It said new installed capacity increased by 3,812 megawatts during the first six months of 2008 compared with the year ago period.

Given the shutdown of the power generating units at Xia Hua Yuan Power Plant with a capacity of 200 MW, the company's had a net capacity increase of 3,612 MW.

Aluminum price to move up amid copper price falls back

According to China Ministry of Commence domestic aluminum price has started to move up since July affected by the industry consolidation in international market and the electricity price rise at home, while copper price has decreased for three straight months since April.

The ministry said domestic aluminum price vibrates at the range of CNY 18,500 per tonne to CNY 19,000 per tonne at the moment. And price for A00 aluminum ingot gained 2.6% in the week ended July 6th from the previous week and advanced 2.5% from June start.

Average price for 1# copper stood at CNY 63,153 per tonne last month down by 1.5% from that in May.

Official from ministry of commerce said copper transaction appears to be slack at the moment as down-stream buyers are mainly sitting on the fence. That together with the traditional dull season in August and September will put copper price under downward pressure in the future.

The global economy recession resulted from sub-prime debt crisis in US also weighs on copper prices. And the weakening construction industry in the country will inevitably press down copper demand.

Chinese Steel plate export offer stay at high level

It is reported that export offers for Chinese steel plate remain at high level this week.
Domestic plate prices are largely unchanged. On Shanghai market, commercial 16mm plate by Yingkou steel is being quoted at CNY 6600 per tonne to CNY 6650 per tonne, commodity grade 16mm to 20mm plate by Chunye and Feida steel are tagged at CNY 6100 per tonne to CNY 6120 per tonne flat with last Friday.

Quotations by tier one steel mills are at around US1270 per tonne to USD 1300 per tonne FOB as base and there is not much export volume. They normally export commercial plate to long term customers and set aside few tonnage for spot export business.

Those by tier two steel makers are USD 1140 per tonne to USD 1160 per tonne FOB end September shipment. Tianjian is quoting its commercial plate at USD 1160 per tonne to USD 1165 per tonne FOB and Hebei Jiye is offering at USD 1130 per tonne to USD 1140 per tonne FOB. Average contract price is USD 1130 per tonne to USD 1135 per tonne FOB. While such tier three steel mills as Changda and Yicheng is quoting commodity grade plate at USD 1090 per tonne FOB. Contract price is a little lower at USD 1080 per tonne FOB.

Ship plate by tier two steel mills are between USD 1360 per tonne to USD 1370 per tonne FOB as base, while those by tier one producers have jumped to USD 1400 per tonne up September or October shipment.

Vietnam imports USD 5.8 billion worth of Chinese goods

Xinhua reported that Vietnam spent over USD 5.8 billion importing Chinese goods, including steel, machines, fertilizers, cloth and petroleum products in January to April 2008 period.

Vietnam’s Trade Information Center under the Ministry of Industry and Trade said between January to April, Vietnam imported more than 1.8 million tonnes of steel products worth over USD 1.3 billion, nearly USD 1.2 billion worth of machines, equipment, tools and spare parts,and USD 433.3 million worth of cloth from China.

According to Vietnam's statistics, the two way trade between Vietnam and China rose to 15.85 billion dollars in 2007 from 10.42 billion dollars in 2006.

TMK premium connection successfully tested

TMK one of the world’s top three oil and gas pipe producers announced that its TMK-GF premium casing connection series was successfully tested for horizontal oil and gas well applications.

According to the release, TMK Premium Service, a division of TMK specializing in the production and supply of premium connections to the oil and gas sector, tested the high performance GF casing connection series at Novatek’s Sterkhovoye field in the Yamal-Nenets Autonomous Region.

The release added that, produced at TMK’s TAGMET R&D centre, the TMK -GF connections encountered pressures of 190 atmospheres during casing operations in the well and retained excellent gas tightness under high bending loads.

TMK-GF is a Premium connection with extra gas tightness properties used for the construction and operation of highly deviated and horizontal wells and especially designed for application in corrosive environments. As demonstrated during testing, its metal to metal seal offered excellent gas tightness, even under the most severe stresses, and seal integrity was maintained even after numerous make ups and break outs.

In addition to the TMK-GF series, TMK-Premium Services produces TMK-PF, TMK-FMC, TMK-TTL and TMK-CS Premium casing connections and TMK-FMT Premium tubing connections.

OMK proposes import duty cancellation on plates

It is reported that the Ministry of Economic Development and Trade of Russia received a proposal from Russian steel pipe maker United Metallurgical Company about the import duty cancellation on plates.

As per report, OMK revealed that the current domestic HR plate production is in short and cannot satisfy the demand for pipe maker.

Russia's other steel pipe maker will provide other proposal to see how to solve the problem before September 1st.

SPF plans to sue ArcelorMittal Kriviy Rih

As per reports in local media, Ukraine’s privatization agency, the State Property Fund announced that it will seek to sue ArcelorMittal for not fulfilling commitments undertaken after purchasing Ukrainian steelmaker Kryvorizhstal.

As per reports, SPF has submitted a letter to the government asking UAH 72.7 million that it says it needs to conduct the lawsuit.

ArcelorMittal and the government recently did not comment on the letter.

But analysts said the request for the money will probably be rejected as Ms Yulia Tymoshenko Prime Minister has been at loggerheads with Ms Valentyna Semeniuk the head of the SPF for the past six months. Ms Tymoshenko has persistently sought to replace Semeniuk who is backed by Ukraine’s biggest opposition groups, over disagreements on the pace of privatization in Ukraine.

The lawsuit would probably also not be supported by Mr Viktor Yushchenko President of Ukraine who has previously praised the Kryvorizhstal privatization in 2005 as the showcase of Ukraine’s efforts to attract major foreign investors.

Ms Semeniuk has previously accused ArcelorMittal of failing to upgrade in 2006 and 2007 coking plants No 3 and No 4 and the desulfurization workshop, as part of the original commitments.

Evraz releases its Q2 2008 operational results

Evraz Group SA released its Q2 2008 operational results

Product wise results for steel segment are as under

In ‘000 tonnes

NLMK releases trading update for Q2 2008

Novolipetsk Steel announces the following regular trading update for Q2 2008.

Novolipetsk

In million tonnes

NLMK's Danish subsidiary DanSteel A/S

In million tonnes

VIZ-Stal

In million tonnes

Stoilensky GOK
Q

In million tonnes

Altai-koks

In million tonnes

Maxi Group

In million tonnes

1. The sharp increase in slab and rolled products sales volumes in Q2 2008 is mainly attributable to the change in export contracts transition to an FOB supply basis in Q1 2008. As a result of this transition, there was increased inventory of metal products at ports in Q1 2008 from NLMK’s production site. These products, as well as Q2 deliveries, were sold in Q2 2008. The production volume of products, delivered from NLMK’s production site, amounted 2.5 million tonnes in Q2 2008, which corresponds to the Q1 2008 level.

2. The strong increase in pricing for NLMK’s metal products reflects the global steel market trends. In Q2 2008, all the products delivered by NLMK saw prices continuing to rise. This trend could primarily be observed in pig iron, slabs and hot rolled steel due to high demand worldwide.

3. Also, high demand caused DanSteel A/S to increase production of heavy plates.

4. Transformer steel production at VIZ Stal in Q2 2008 remained at the level of Q1 2008. Both of NLMK Group’s transformer steel production facilities, NLMK and VIZ Stal, were fully loaded. Market trends for rolled products drove the prices for VIZ Stal products higher.

5. Despite the fact that the bulk of Stoilensky GOK’s output was supplied in Q1 and Q2 at fixed prices, the decrease of the USD to RUB exchange rate, as well as redistribution of product sales volumes to the third party sales markets drove the prices increase for iron ore concentrate and sinter ore. Iron ore concentrate supplies were slightly reduced due to a decrease of NLMK pig iron production and sales.

6. Altai Koks increased coke sales volumes due to growing demand in core sales markets, especially Russia, including NLMK, and other CIS countries. Shortages in the coal market caused the increase in average prices for coal concentrate and significant growth of coke production costs. Moreover, in Q2 2008, the high quality coking coal market was tight and this undersupply caused a certain decrease in coke produced by Altai Koks. A number of contracts for coke supply are signed quarterly. This, coupled with a lower quality of coke, did not allow Altai koks to fully capitalize on the coke price growth.

MMK H1 steel output up by 8% YoY

MMK announced its operational Trading update and H1 2008 results under Russian Accounting Standards

Key Operational Highlights

1. Steel output in H1 2008 increased by 8%YoY to 7,015 million tonnes as compared to H1 2007
2. Commercial steel products output increased by 8% to 6,434 million tonnes
3. Significant growth in prices for MMK’s entire product line
4. International pricing environment and strong domestic demand lead us to expect same price levels for Q3 2008

Mr Victor Rashnikov chairman of MMK’s board of directors said that “We are satisfied with our achievements for the first half of 2008. We continue to consistently strengthen our presence in the Russian market. It is the markets of Russia and CIS with which we connect our ambitious plans, reflected in our large scale investment program. The current level of steel prices within Russia and globally confirms optimistic expectations for the year.”

He added that “We are continuing to follow our strategy of securing raw material supplies through new and ongoing projects, including the development of our own iron ore base and the Prioskol iron ore deposit and expansion of our partnership with Belon.”

Mechel Q1 income up by 162.2% YoY

Mechel OAO a leading Russian integrated mining and metals group announced financial results for the first quarter ended March 31st 2008.

Highlights
1. Revenues increased 64.1% YoY to USD 2.3 billion
2. Operating income increased 112.3% YoY to USD 0.64 billion
3. Net income increased 162.2% YoY to USD 0.55 billion or USD 1.20 per ADR /diluted share

(In USD billion)

Mr Igor Zyuzin CEO of Mechel said that “Our final results for the 2008 first quarter came in as we expected, and reflect strong operational and financial performance. Conditions in the markets we serve continue to be favorable and are driven by a combination of growth factors. We are very pleased to have reported record revenue and we remain focused on the successful execution of our operating strategy.”

MirInvest concludes Alpha Steel buy

Interfax cited Mr Vasily Storozhuk general director of MirInvest's as saying that Libala Limited, an affiliated company of MirInvest which represents the interests of the Estar Holding co owner, Duma member Mr Vadim Varshavsky and the company's management, has bought from Alphasteel a mini mill steel works in the United Kingdom which is capable of producing around 2 million tonnes of rolled steel per year.

He said that the deal was struck on July 14th 2008. Mr Storozhuk did not specify the amount of the deal.

MirInvest, a Russian investment company acquired the right to buy the plant after winning the tender late last May and signing a purchase deal in early June 2008.

EastOne postpones Interpipe share sale

Ekonomicheskie Izvestia cited Mr Gennadiy Gazin CEO of EastOne as saying that EastOne LLC postponed an initial public offering of shares in Interpipe.

Mr Gazin said that the share sale by Ukraine's biggest producer of steel pipes used by oil and gas companies was delayed due to market volatility. There is no need for us to rush.

He added that the company is going to decide on the IPO after evaluating the market in September.

OGK-4 net profit in 2007 down by 70.59% YoY

RIA Novosti reported that the Russian wholesale power generating company OGK-4 net profit calculated to International Financial Reporting Standards down by 70.59% YoY in 2007 to RUB 1.58 billion.

OGK-4 said revenues in the reporting period grew 20% to RUB 31.436 billion

OGK-4 has a total installed generation capacity of 8,630 MW and incorporates five thermal power plants one in Western Siberia, one in the Far East, two in central Russia, and one in the Perm Territory in the Urals.

Gazprom and Iran ink oil and gas cooperation memo

RIA Novosti quoted business daily Kommersant said Gazprom and the National Iranian Oil Company have signed a memorandum of cooperation in oil and gas production and transportation.

The paper said the memorandum was signed recently during negotiations in Tehran between Mr Alexei Miller CEO of Gazprom, Mr Gholamhossein Nozari Iranian Oil Minister and Mr Seifullah Jashnsaz MD of NIOC.

According to Kommersant, Tehran has offered Russia a full package of projects to develop oil and natural gas fields, build processing facilities and transport oil from the Caspian Sea to the Gulf of Oman.

The paper said the document, which stipulates the creation of a joint venture for oil and gas projects, is set to give Gazprom a foothold in Iran, which has the world's second largest gas reserves, totaling 28.13 trillion cubic meters after all the major global energy companies have given up cooperation with the Islamic Republic. However, the paper said analysts are cautious about the prospects of cooperating with Iran, as the issue involves complex and delicate factors.

The country is under three sets of United Nations Security Council sanctions for its refusal to halt uranium enrichment, and the United States and Israel have refused to rule out military strikes if Tehran continues with its nuclear program, widely suspected to be a cover for a weapons production.

Mr Valery Nesterov an analyst from Russia's Troika Dialog brokerage, said "A very negative political atmosphere has been formed around Tehran, due to which France's Total the last foreign company, quit the country. But if Russia drops its attempt to consolidate its positions in the country, it will cede this market to Japan, India and China."

At the same time, Mr Mikhail Korchemkin director of East European Gas Analysis said the memorandum was a purely political document. He said that "Iran has no partners left after Total's withdrawal. Meanwhile, Gazprom needs additional gas volumes to honor all its obligations. He added that the agreement between Gazprom and NIOC will exist only on paper until the political situation changes radically.”

Donbass Fuel & Energy of Ukraine secure EUR 50 million loan

Bloomberg reported that Donbass Fuel and Energy Co, Ukraine's biggest coal producer attracted a EUR 50 million loan to purchase more coal assets and stakes in energy-generating and energy-supplying companies.

Donets based company said Erste Bank der Oesterreichischen Sparkassen AG organized the so-called stand-by loan.

Russian Railways plans direct link to Iran through Azerbaijan

RIA Novosti reported that Russia's rail monopoly is developing a trilateral project with Azerbaijan and Iran to build a direct rail link between Russia and Iran

Russian Railways said in a statement jointly with Azerbaijan, RZD "is developing a trilateral project to build a railroad to connect Qazvin, Rasht and Astara, which is aimed at establishing a direct railway route between Russia, Azerbaijan and Iran and attract new cargoes to the International North-South Transport Corridor."

According to the report, RZD signed its first contract with Iran's railways in late March 2008 to upgrade a 46 kilometer railroad between Tabriz, Iran's fourth largest city and Azarshahr. The parties are also considering involving RZD in other infrastructure projects in Iran.

Update on Evraz results for steel operations for Q2 of 2008

Evraz Group SA released its Q2 2008 steel operational results

Russia

In ‘000 tonnes

Europe

In ‘000 tonnes

North America