Mr Paswan urges steel makers to be reasonable

It is reported that Mr Ram Vilas Paswan Minister for Steel, Chemicals and Fertilizers urged the steel industry to continue to support the effort of the government in managing the inflationary trend in the country.

Mr Paswan while delivering inaugural address of the India Steel Conclave said that government does not want the industry to suffer and is concerned about the rise in the cost of the raw materials but industry should ensure that the profit levels are not disproportionate to the rise in cost of production.

He added that a fine balance has to be ensured between the consumer’s interest and the interest of the industry.

Mr RS Pandey secretary of steel while speaking at the inaugural session said the Indian government has taken several steps to help reduce the cost of production. He said that “Excise duty has been slashed by 2% in the union budget, import duty on scrap has been removed and 15% ad veloram duty has been imposed on the export of iron ore.”

Mr Pandey added that “Besides this, 44% of the steel produced is from captive mines where the cost of iron ore as a proportion of the cost of production is only 5% compared to over 30% for those depending upon spot market for their requirement of iron ore.”

Mr Pandey said that “The government and the industry will have to find a way out of the price situation. Industry has to decide a point of balance between the need of the consumers and their price expectation.”

Mr Paswan emphasizes time bound implementation of projects

It is reported that Mr Ram Vilas Paswan Minister for Steel, Chemicals and Fertilizers while delivering inaugural address of the India Steel Conclave said that Indian steel industry is on way to emerge as the 3rd largest in the world by 2015 and emphasized the need to implement all expansion programs in a time bound manner.

He said that “The ministry is closely monitoring the major steel investment projects for which an Inter Ministerial Group has been functioning under the Chairmanship of Secretary, Steel since last year. The progresses of public sector steel units are also being closely monitored.”

He added that “By the year 2012, it is estimated that India would have a steel production capacity of 124 million tonnes from the current level of 59 million tonnes. Taking into account the investments in pipeline Indian steel production capacity would be nearly 300 million tonnes by the year 2020.”

Mr Paswan said that “Such a massive investment in the steel sector will involve a number of issues to be sorted out. Steel is a highly capital intensive industry which depends upon allocation of raw material resources, land, water, environmental & forest clearances as sell as development of huge infrastructure. A part of the issues have to be looked into by the state governments concerned. In some of the states even the Rehabilitation and Settlement Policy is not framed. Land acquisition and forest clearances are the two major bottlenecks being faced by most of the Greenfield steel projects. There is also the issue of delay in iron ore mining lease to major steel producers.”

9th cargo berth of Tuticorin Port commissioned

Mr Thiru T R Baalu union minister of Shipping, Road Transport and Highways presided over a function in Tuticorin wherein the Chief Minister of Tamil Nadu, Dr M Karunanidhi dedicated the 9th Cargo Berth of Tuticorin Port Trust in the service of the nation through video conferencing facility.

This Berth has been created at a cost of INR 40 Crore.

The Minister disclosed that the government of India plans to contribute INR 789.98 crore through budgetary support for the Tuticorin Port. Out of the 24 projects planned for the Tuticorin Port under the NMDP, three have already been completed, six are under progress and five are under various stages of approval or award.

Government of India has recently sanctioned another project namely deepening the channel and basin at the Tuticorin Port at a cost of INR 538 crore to cater to 12.8 draught vessels by the port, to be completed within a period of 18 months with a budgetary support of 35% cost of project ie INR 188.30 crore.

The Minister said that with the present capacity of 20.75 million tonnes, the Tuticorin Port has handled 21.84 million tonnes and secured the 3rd place among the Indian Major Ports last year.

He noted that in the last four years, including the berth inaugurated, the port’s capacity is being augmented from 15.40 million tonnes per annum to 25.05 million tonnes up by nearly 63%.The cargo handled has increased by 57% from 13.68 million tonnes in 2003-04 to 21.48 million tonnes in 2007-08. Container traffic has increased by 77% from 0.253 million TEUs to 0.451 million TEUs.

BEML bags export orders from Tunisia and Malawi

It is reported that Heavy industrial equipment maker BEML recently has received export orders worth INR 34.50 crore from African countries.

BEML in a filing to Bombay Stock Exchange announced that the company would supply 35 equipments worth INR 21.50 crore to Tunisia and 18 equipments valuing INR 13 crore to Malawi.

BEML added that the equipment ranges from small size bull dozers to back hoes loaders, wheel loaders, hydraulic excavators.

Recently, BEML has bagged mining equipment orders from Indonesia for a value of 207 crore to increase its overseas market penetration, BEML has set up its offices in China, Malaysia & Brazil. Currently, BEML has order book of INR 4000 crore.

Patel Engineering net profit in Q1 up by 29% YoY

BL reported that civil infrastructure Construction Company, Patel Engineering has clocked up by 29.39% YoY in its consolidated net profit at INR 34.99 crore in Q1 FY 2009 as against INR 27.04 crore in the year ago period.

According to the report, consolidated incomes from operations for the reporting quarter rose 34.47% YoY at INR 558.39 crore as against INR 415.25 crore in the year ago period. Its order book position stood at over INR 6,000 crore as on June 30, it has pre qualified for new projects worth in excess of INR 12,000 crore as on June 30th.

Mr Rupan Patel MD of Patel Engineering said that “With several big infrastructure projects expected to take off in the coming months, we continue to remain bullish on the business environment.”

The company plans to focus on residential and commercial development in these metros and is in the first phase of development. The report further added that on Patel Realty, the company's wholly owned real estate development subsidiary, it currently owns development rights for more than 1,000 acres of urban land bank in Bangalore, Chennai, Hyderabad, Mumbai & Panvel.

NTPC to get INR 10,000 crore term loan from PFC

It is reported that NTPC is likely to get a term loan of INR 10,000 crore from Power Finance Corporation to finance the debt proportion of the cost of NTPC's huge projects, due to be implemented during the 11th plan Period.

According to the report, the tenure of loan will be approximately 16 years and will be borrowed at a rate of interest based on three year AAA bond yield plus 45 basis points.

NTPC plans to increase its generating capacity from 30,000 MW to 50,000 MW by 2012.

CERC approves PFC and Reliance transmission JV license

It is reported that Central Electricity Regulatory Commission has approved transmission license to Parbati Koldam Transmission Co, a JV formed by Reliance Infrastructure and Power Grid Corporation of India.

As per the report, the JV will undertake establishing, commissioning, operation and maintenance of 400 kV transmission lines for evacuation of power from Parbati II and Koldam hydropower in Himachal Pradesh.

Siemens bags INR 200 crore Sri Lanka order

It is reported that Siemens received an order of around INR.200 crore from the Ceylon Electricity Board, Sri Lanka for the modernization and up gradation of the medium voltage distribution network of Colombo.

According to the report, the scope of work of Siemens' include augmentation of a 33/11 kv substation, supply, installation and commissioning of 390 air insulated medium voltage switchgear bays, 40 compact substations, 50 ring main units and 72 low voltage distribution switchgear from its facilities in India and Germany, apart from the supply and laying of over 200 kilometers of cables.

The report added that Siemens is also delivering a Supervisory Control and Data Acquisition System for the load dispatch centre that will be equipped with Siemens Sinaut Spectrum control system. This system will gather data from 251 substations and connect them to a centralized distribution control center providing real time information at single point for effective monitoring and control of the power network.

L&T eyes INR 2000 crore JV with NPCIL

BS reported that Larsen & Toubro is planning to form a INR 2,000 crore forging venture with Nuclear Power Corporation of India as the nation pursues talks with the US for civilian atomic technology.

Mr Sudhinder Thakur ED of NPCIL said that "We have been in discussions with Larsen for the last few months for setting up a forgings venture.” However, he declined to give details.

Mr Thakur said that “India is seeking to import nuclear technology and fuel without joining the 1970 Nuclear Non Proliferation Treaty, increase nuclear power generation almost ten fold and end shortages of as much as 15 % during peak hours of demand. The government expects to generate as much as 63,000 mw nuclear power by 2030, compared with 4,120 mw now.”

He added that "We foresee a severe constraint on forgings supplies to power and other infrastructure projects in India.''

Indian flagged vessels tonnage goes down

Exim News Service cited Mr MK Banger, a marine consultant for the Maharashtra Maritime Board, as saying that the overall tonnage of Indian flagged vessels has sunk from a high of 9 million gross tonnes in 2000 to 8.84 million gross tonnes as on June 1st 2008.

As per report, the decline is being attributed mainly to the scrapping of ageing vessels and the preference for foreign flagging by ship owners.

Many national carriers, including Essar Shipping and the Shipping Corporation of India have already scrapped older vessels ahead of the delivery of newer ones which will take a few years for delivery.

Several shipping lines have started registering vessels under flags of convenience, such as with the Marshall Islands to avoid the harsh maritime policies imposed by the Union government particularly in terms of a plethora of taxes.

ACC may invest INR 150 crore in RMC business

ET reported that Associated Cement Companies is betting big on its ready mix concrete business and plans to double its RMC units to 46 in 2008. As per report the company would need to invest INR 150 crore to achieve this target.

Mr Sumit Banerjee MD of ACC’s recently said that “RMC is the future business as margins are higher compared to retail. Bulk users in the real estate business increasingly use RMC to save on time and cost overrun in projects.”

He said in order to scale up its RMC business ACC transferred this unit to a wholly owned subsidiary ACC Concrete. Last year, the company earned INR 367.02 crore from the business. However, RMC’s contribution to the company’s total business is not much. ACC posted total sales of INR 7,067 crore last year.

ACC Concrete is replicating the Holcim process of RMC solutions in India. These solutions include products which aid in construction techniques, speed of building and utilizing sustainable construction materials. Holcim, through its private subsidiary ACIL, holds 46% stake in ACC.

ACC’s total capacity is being hiked to 23.3 million tonnes per annum from 22 million tonnes per annum by 2008. It has 12 plants across the country and is the leader in eastern and north Indian markets.

Pioneer Distilleries to complete its 5 MW biogas project soon

It is reported that Pioneer Distilleries Limited work on 5 MW biogas based power project is expected to be completed by September and start commercial production from October.

As per report, Pioneer Distilleries Limited work entered into a power purchase agreement with TATA Power Trading Company Limited for the entire power generated by the plant. The PPA is valid for 10 years from commercial operation date and the applicable annual average base rate for power purchase shall be INR 4 per kWh for the first year.

CM calls for expediting pending projects of AP Genco

It is reported that Dr YS Rajasekhara Reddy CM of Andhra Pradesh while reviewing the power situation in the State ahead of the foundation stone laying ceremony of 2x800 MW Sri Damodaram Sanjeeviah Thermal Power Station at Krishnapatnam by Ms Sonia Gandhi UPA Chairperson on July 17th directed AP Genco, which is adding about 8,860 MW in 4 years, to expedite the pending projects.

Dr Reddy said that state is focusing on long term strategies for power generation. He said that “Scanty rainfall this season has resulted in acute shortage of power in the State. Therefore, the Government’s focus is on long term strategies in power sector.”

Mr Ajay Jain MD of Genco AP said that all the thermal generating stations in the State are currently running at full capacity and efforts are under way to complete new projects as per targeted deadlines.

The daily demand for power has shot up to 198 million units a day as against 145 million units to 160 million units in 2007.

Ajanta to foray into power saving instrument manufacturing

BS reported that clock maker Ajanta is set to foray into power saving instrument manufacturing. The report said that Ajanta, which has diversified into a range of businesses including compact fluorescent lamps CFL, ceramics, snackfood and e bikes is now looking at introducing range of power saving instruments for domestic use.

It said that Ajanta Manufacturing Limited plans to make an initial investment of INR 10 crore for the project.

Mr Jaysukh Patel, MD of Ajanta group said that the target audience for the product is middle class, who would have an option to cut down on power costs. According to him, the product range will be best suited for households using single phase power.

Mr Patel said that the company will use Korean technology to manufacture the units. He added that Ajanta is planning to price the power saving instruments ranging from INR 1000 to INR 2200.

Indian Steelmakers Directory 2008

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

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

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

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

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• Company name -723 entries
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• Phone number-723 entries
• Fax number -590 entries
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Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

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Steel pricing trends in India

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ArcelorMittal acquires outstanding shares in Rolanfer

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.

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 VP 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."

Nippon Steel to hike plate steel by JPY 10,000 per tonne

Nippon Steel announced on Tuesday that the firm increases the selling price of plate steel and checkered plate by JPY 10,000 per tonne for distributors for August order.

The release said that Nippon Steel increases the price by total JPY 40,000 including JPY 20,000 in March and JPY 10,000 in May. The firm tries to improve the lower price than international level when the offshore price surges under tight supply.

TenarisHydril ER connections debut in drilling with casing application

When Pemex started plans for the development of the Ixtal 3 offshore well in the Gulf of Mexico, it had a problem. Due to circulation losses and the risk of tubing getting stuck in ocean sediments the company decided to use drilling with casing technology. However, in order to avoid the possibility of collision with the Ixtal 2 well, located less than a meter away, the energy company decided to drill the first step in a traditional fashion, since drilling with casing could lessen control of the column's verticality.

As Pemex started to explore options, Mr Miguel Angel Castañeda, Tenaris Technical Sales Representative in Mexico, proposed the use of TenarisHydril ER™ connections over traditional API buttress connections. TenarisHydril ER™ advantage consists of strong torque shoulder making it highly resistant, while providing optimum joint efficiency.

Pemex opted for the alternative offered by Tenaris. For Ixtal 3, Tenaris provided K 55, 20”, 133 lbs/ft casing with TenarisHydril ER™ connections. It was the first time that TenarisHydril ER™ technology was used in drilling with casing application.

Mr Eduardo Perez Avila drilling superintendent of the engineering division of the marine department in Pemex said that "During the operation, Tenaris's casing reached the programmed 850 meters depth. It shortened drilling times compared with the conventional technique, without generating high torque. The TenarisHydril ER™ connection presented an excellent performance, achieving a time savings of at least two days.”

According to Mr Luis Conde manager of Technical Sales in Mexico, the success of the operation opens the door to future projects using this technology. From Pemex, Mr Perez Avila said that "We are satisfied with both the tube and the TenarisHydril ER™ connection in this first operation, so it will be considered for future projects.”

Worthington Q4 net sales up by 10% YoY

Worthington Industries Inc reported results for the three and twelve month periods ended May 31st 2008.

For the fourth quarter of fiscal 2008, net sales were a record USD 868.9 million up by 10% YoY as compared to USD 786.6 million last year. Fourth quarter net earnings were USD 53.9 million as compared to USD 38.2 million. Operating income for the fourth quarter included USD 4.9 million in pre tax restructuring charges, USD 1.1 million of which was non cash, primarily related to previously announced plant closures in the Metal Framing segment and professional fees.

For fiscal year 2008, net sales of USD 3,067.2 million up by 3% YoY as compared to USD 2,971.8 million. Net earnings were USD 107.1 million as compared to USD 113.9 million. Annual results were negatively impacted by USD 18.1 million in pre tax restructuring charges and plant closures.

Q4 and year end highlights

1. The Pressure Cylinders segment set a new quarterly record for net sales and units shipped and an annual record for net sales.

2. The Metal Framing segment returned to operating profitability for the quarter.

3. Equity income from nine unconsolidated joint ventures totaled USD 21.9 million for the quarter and USD 67.5 million for the year.

4. Cash provided by operating activities was USD 180.5 million for fiscal 2008 compared to USD 180.4 million for fiscal 2007, while capital expenditures were USD 47.5 million and USD 57.7 million for the same periods.

5. During fiscal 2008, the company repurchased 6.5 million common shares, reducing total outstanding shares to 79.3 million at year end. Currently 9.1 million shares remain authorized for repurchase.

Mr John P McConnell chairman & CEO of Worthington Industries said that “We are pleased with our excellent fourth quarter results and the year-over-year performance of our business segments, particularly the return to profitability in the fourth quarter for metal framing and the continued strong results from pressure cylinders. We also had record results from our joint venture Worthington Armstrong and also a very good quarter from Serviacero Worthington.”

Mr McConnell continued that “Across the company, we have been focused on cutting costs, expanding our market reach through new products and services and steering through a volatile and demanding steel pricing environment. We believe these efforts are helping us transform and strengthen the businesses, but we are aware of the uncertainty in some of our key markets and the potential for volatility in steel pricing throughout fiscal 2009.”

Philippines users look for favorable prices from Global Steel

Manila Standard reported that Philippines local industry criticized Global Steel Philippines Inc for the high prices of its steel products amid unresolved problems on quality and unreliability of supply.

As per report, majority of local downstream steel players still chose to import since those produced by Global Steel, the country’s largest steel producer, were priced almost the same and of lower quality. There is also the unresolved issue on reliability of supply and delivery commitments of Global Steel.

The report cited an industry source as saying said that Global Steel should not include the additional 4% duty as tariffs were not part of the company’s production costs. The source proposed an import parity to give the local industry a cheaper recourse when prices of imported products are going up.

As per report, Global Steel is selling CR coils at PHP 70,000 per tonne, which is at the same price level of imports for July.

The government raised in November last year the tariffs on imported hot rolled coil and cold rolled coil from 3% to 7% following confirmation that Global Steel’s steel facilities in Iligan were in commercial operations and would the local downstream industry of adequate supply of high quality products.

Novamerican Steel Q2 net sales up by 13.6%YoY

Novamerican Steel Inc announced the financial results for the Q2 ended May 31st 2008. The consolidated financial statements of Novamerican Steel Inc and its subsidiaries are included in the Quarterly Report on Form 10-Q for the quarter ended May 31, 2008, filed today with the Securities and Exchange Commission.

Novamerican Q2 results highlights

1. Net sales increased USD 28.9 million up by 13.6% to USD 241.3 million, as compared to USD 212.4 million in the pro forma second fiscal quarter of 2007.

2. Total tonnes increased by 2.4% to 401,300 tons as compared to 391,900 tons in the pro forma second fiscal quarter of 2007.

3. Direct sales tons increased by 2.5% to 232,400 of total tonnes as compared to 226,700 tonnes.

4. Gross margin increased 18.8% to USD 49.3 million or 20.4% of net sales as compared to USD 41.5 million or 19.5% of net sales, in the pro forma second fiscal quarter of 2007. The impact of exchange rates was an increase of USD 2.8 million. Excluding the impact of exchange rates, gross margin would have increased by USD 5.0 million to USD 46.5 million or 20.6% of net sales.

5. Operating expenses increased USD 15.9 million or 56.2% to USD 44.3 million as compared to USD 28.4 million in the pro forma second fiscal quarter of 2007. In addition to the USD 4.9 million restructuring charge, operating expenses included USD 3.5 million from higher depreciation and amortization associated with the purchase price allocation for fixed assets and other intangible assets, including accelerated depreciation on assets at Cambridge. The impact of exchange rates on operating expenses was an increase of USD 2.2 million. Excluding the impact of exchange rates, the restructuring charge and higher depreciation and amortization, operating expenses would have increased USD 5.3 million to USD 33.7 million.

6. Operating expenses included a restructuring charge of USD 4.9 million associated with the closure of the Cambridge, Ontario facility and the implementation of organizational changes in the replenishment, processing, distribution and sales processes. An additional restructuring charge of approximately USD 3.0 million is anticipated in the third fiscal quarter of 2008. These changes will result in approximately USD 10.0 million, net, in annual operating expense reduction, with that resulting run rate realized by end of 2008.

7. Adjusted EBITDA decreased by USD 1.7 million or 9.4%to USD 16.3 million as compared to USD 18.0 million in the pro forma second fiscal quarter of 2007.

8. Long term debt at May 31st 2008 was USD 399.8 million and cash and cash equivalents were USD 12.4 million.

Mr Corrado De Gasperis CEO of Novamerican said that "Our second fiscal quarter of 2008 continued experiencing positive momentum throughout the quarter from improved shipments and pricing, mitigated by an extremely weak automotive sector, including for us, the negative impact of the American Axle strike on General Motors. Our direct sales tons and revenue were lower than previously anticipated by about 38,000 tons. We implemented a significant portion of our organizational changes during the second quarter, including the closure of our Cambridge, Ontario facility. We anticipate having substantially all of our organizational changes concluded by the end of the third fiscal quarter, including new agreements with our supply-side trading partners. We incurred approximately $1.0 million in the 2008 second fiscal quarter for operating expenses for training, development and recruiting associated with this effort."

Esmark shares to be de listed after sale to Severstal

According to regulatory filings, Esmark Inc shares will stop being publicly traded once the steel maker's buyout by Russian conglomerate OAO Severstal is complete.

According to documents filed this week with the US Securities and Exchange Commission, when Severstal's purchase is finalized. Esmark shares will be delisted.

Esmark trades on the NASDAQ stock exchange under the symbol ESMK.

Mr Gregory Mason an US citizen based in Russia will become president of the new subsidiary. He has been COO of Severstal and CEO of Severstal International since 2004.

Nippon Steel says emissions rules may force overseas growth

Bloomberg reported that Nippon Steel Corp may be forced to increase production overseas should it be disadvantaged compared with rivals under new international climate change rules under discussion.

Mr Hideaki Sekizawa executive VP of Nippon Steel in a Bloomberg Television interview in Tokyo said that Nippon Steel may have no choice but to shift to Brazil and other overseas countries to expand output.

Nippon Steel after China, India and 14 other nations at the Group of Eight summit in Toyako, Japan last week considered long term emission cuts. The G 8 countries responsible for almost half of the world's emissions, on July 8th 2008 pledged to reduce production of heat trapping pollution by at least 50% by 2050. But they didn't specify how those cuts should be reached.

Mr Sekizawa said that the summit was held amid efforts to unite industrialized and developing nations on a treaty to replace the Kyoto Protocol on global warming after it runs out in 2012. Nippon Steel and JFE Holdings Inc, Japan's second largest steelmaker are the only mills making more than 20 million tonne of crude steel obliged to cut emissions under the current protocol, which excludes developing countries.

He said that “It is good that agreement was reached on common ground. An industrialized nations agreement to fund the transfer of environmental technologies to China and India, which aren't bound by the Kyoto protocol was praiseworthy.”

Nippon Steel opposes a proposal by Japan's Prime Minister Yasuo Fukuda to introduce emissions trading on a trial basis this year as part of a plan to cut the country's emissions of gases blamed for global warming by between 60% and 80% by 2050.

Mr Shoji Muneoka chairman of the Japan Iron and Steel said that “Setting tougher emission caps on businesses could prompt a shift of the production base to developing countries from Japan.”

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)

Panama Canal authorities decide to extend bidding deadline

It is reported that Panama Canal Authority has decided to provide an extension for the locks proposal due date after hearing what was involved from interested companies.

Panama Canal Authority in a statement said that the extension is in line with the overall timeline of the expansion project and the program remains on track. ACP has already planned for such contingencies.

The ACP said that 4 global consortia are in the running for the contract and now have until December 10th 2008, to submit bids for what will be the largest and most important project under the USD 5.25 billion expansion.

Fatal accident at the Kista Centrum construction site in Stockholm

An unfortunate accident occurred on July 15th 2008, at the Kista Centrum construction site in Stockholm, when intermediate floor structures collapsed.

The collapse caused the death of a Ruukki subcontractor’s employee, and two other people were injured. Ruukki extends its sincere condolences to the worker’s family and its sympathies to all affected by the accident.

The intermediate floor structures were installed above a street. The reason for the collapse is unknown and is under careful investigation. Ruukki is working closely with the local authorities to establish what led to the accident and how it happened.

Finnish Ruukki and its subcontractors provide delivery and installation of frame structures for the constructor of the building project.

Vietnam increases steel billet exports

It is reported that steel makers in Vietnam are increasing export of steel billets even with the shortage in domestic market, which leads production difficulties for many Vietnamese producers.

As per report, the export prices of billets are at USD 1,200 to USD 1,300 per tonne, while the domestic cost is about USD 1,000 per tonne for construction grade steel in the Vietnamese market.

Moreover, the domestic steel prices are soaring in Vietnam because steel production has been cut by 20% to 30% to save their steel ingots for export.

(Sourced from YIEH.com)

Japanese scrap price increase rate to slow down

The pace of new production scrap price rises in Japan seems to slow down.

Hyundai Steel has decreased its purchasing prices by JPY 500 to JPY 1,000 per tonne for Japanese scrap, at JPY 78,000 to JPY 78,500 per tonne FOB. The price was as high of JPY 78,500 to JPY 79,000 per tonne before.

Hyundai Steel has bought some 400,000 tonnes of scrap from America and Russia and therefore it is not in a hurry to import scrap from Japan.

Reliance Steel gets requisite consents to amend indentures

Reliance Steel & Aluminum Co announced that it has received requisite consents to amend indentures of outstanding PNA Group Inc 10.75% Senior Notes due 2016 and PNA Intermediate Holding Corp Senior Floating Rate Toggle Notes due 2013. The tender offers will expire on August 1st 2008.

Upon acceptance by Reliance, pursuant to tender offers, Holders will be eligible to receive USD 1,205.75 per USD 1,000 principal amount, for Fixed Rate Notes and USD 1,020 per USD 1,000 principal amount, for Floating Rate Notes. The addition holders will also receive accrued and unpaid interest from last interest payment date to, but not including, settlement date for tender offers.

Alstom Q1 sales up by 11%

French high speed train and industrial power plant group Alstom reported an 11% rise in Q1 sales to EUR 4.5 billion (USD 7.18 billion), meeting analysts expectations.

It confirmed its operating margin target for around 9% for the year ending March 2010. New orders were down by 14% to EUR 6.6 billion as the comparison with last year's first quarter was skewed by a large one off order.

Mr Patrick Kron chairman & CEO of Alstom said that there was no slowdown and that the company was conservative and only booked new orders when down payments had been made.

He added that the group is riding a wave of demand for big high speed train projects, such as the NTV venture in Italy launched on Tuesday and projects in Argentina and Morocco, as well as a boom in low CO2 emission electricity plants.

Mr Kron was quoted as saying in a statement that "Alstom continues to benefit from its good positioning on the growing markets of power generation and rail transportation: the level of orders recorded during the first quarter is strong, and the prospects continue to be very positive, with both the upcoming booking of the awarded projects and many new opportunities.”

Plymouth Tube completes ISO 9001 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.

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.”

Plymouth Tube Company’s Salisbury mill is a manufacturer of precision tubing for aerospace, high purity, pharmaceutical, medical and nuclear applications. Most of the top aerospace and aircraft companies are requiring their suppliers to be certified to AS9100.

New service to keep you updated with steel prices on daily basis

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

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

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

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

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

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

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

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

Directory of Tin Plate Users in India

'Directory of Tin Plate Users in India' is one of the top sources of information available on tin plate users in India. It is one of the most comprehensive and accurate directory of Indian tin plate users that have ever been published. This powerful report is your connection to the entire Indian tin plate industries sector.

Published in May 2008, 'Directory of Tin Plate Users in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing tin plate makers. This report will be extremely useful to businesses that deal specifically with companies in the tin plate industry, consumable suppliers, raw material sellers, equipment makers and others.

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

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

This report covers name and product details of 147 of Indian tin plate makers in alphabetical order as well as location wise.

Look at the information you'll get in the 'Directory of Tin Plate Users in India'

• Company name -147 entries
• Address-147 entries
• Phone number-143 entries
• Fax number -110 entries
• Email -90 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 87

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

You can order your copy to reports@steelguru.com

The Steel Market Futures Briefing

Steel Market Futures Briefing will cover billet, rebar, wire rod and related raw materials such as scrap, HBI and DRI. We believe that the upcoming launch of steel futures trading on the LME will increase the need for detailed analysis on all aspects of the long products sector.

Steel Market Futures Briefing will be the first regular research report to undertake a comprehensive analysis of the long steel products market within the context of the development of steel futures. Underlying all markets are the fundamentals of physical supply and demand, but the development of futures markets will add an extra layer of complexity.

Steel Market Futures Briefing will analyze steel raw materials (ferrous scrap and HBI/DRI), semi-finished billet and finished long products of rebar and wire rod, providing accurate, independently-sourced data on production and trade. It will examine the physical markets on a regional basis and identify likely trading arbitrage opportunities across intra-regional markets on a global level, as well as applying value analysis on the margins between raw materials, intermediate and finished products. The report will also provide price forecasts out for 12 months on a product and regional basis.

GFMS Metals Consulting is established as a leading consultancy examining base and precious metal physical and futures markets and publishes extensively on steel physical markets with its Steel Market Forecast Briefing and Steel Market Strategic Briefing, which analyze the current, short-term and medium-term markets for steel flat products. Companies can subscribe just to the regions that affect their business - North America, Europe, Asia and Emerging Markets. This approach offers subscribers the opportunity to make massive savings compared to some other newsletters that cover the sector.
Steel Market Futures Briefing offers the potential for massive costs savings compared to other information sources.

Price: USD 1485
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Global hot band prices eruption sputters on and on

The SteelBenchmarker reported that the US hot rolled band spot price for July 14th slipped 0.3% to USD 1,184 per tonne, FOB the mill, after sixteen consecutive rises totaling USD 610, World export HRB price rose 1.3% to USD 1,111 per tonne, FOB the port of export, for the fifteenth consecutive rise totaling USD 530, Chinese HRB ex works price rose 2.2% to USD 733 per tonne, after slipping last time and the Western European HRB price surged 4.2% to USD 1,204 per tonne, ex works for the eleventh consecutive time totaling USD 491.

USA
USD1,184 per metric tonne FOB the mill
Down by USD 3 per tonne from USD 1,187 three weeks ago
Up by USD 624 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 554 per tonne from the recent high of USD 630 on April 9th 2007

2. China
USD 733 per metric tonne ex works
Up by USD 16 per tonne from USD 717 three weeks ago
Up by USD 263 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 246 per tonne from the previous high of USD 487 on September 10th 2007

3. Western Europe
USD 1,204 per metric tonne ex works
Up by USD 48 per tonne from USD 1,156 three weeks ago
Up by USD 541 per tonne from the recent low of USD 663 on July 23rd 2007
Up by USD 508 per tonne from the recent high of USD 696 on June 11th 2007

4. World Export Price
USD 1,111 per metric tonne, FOB the port of export
Up by USD 14 per tonne versus USD 1,097 three weeks ago
Up by USD 561 per tonne from the recent low of USD 550 on July 23rd 2007
Up by USD 515 per tonne from the recent high of USD 596 on March 26th 2007

Sumitomo to expand special grade tube output

JMB reported that Sumitomo Metal Industries tries to expand the output capacity and to develop new products at Steel Tube works at Amagasaki in Hyogo.

As per report the firm expands the steam generator tube output capacity by 30% to annual 770 to 780 tonnes in the year. The firm also expands the annual output capacity of high alloy oil well tube by 10% by fiscal 2011 ending March 2012 from current 19,000 tonnes to meet strong worldwide demand.

Taiwan exports of rebar and H beam drop in June

According to Taiwanese customs, exports of rebar totaled 18,000 tonnes in June 2008 dropped by 31% MoM.

Exports of H beam were 53,000 tonnes, decreased slightly by 3%; exports of angle bar dropped sharply by 63% to 2,200 tonnes from previous month.

At the same time, Taiwan imported 485 tonnes of H beam, only accounts for 15% of that in May. And most of them were imported from Japan.

It is remarkable that the imports of angle bar soared up to 4,757 tonnes in June, increased by 154% from last month.

ABB appoints Mr Joseph Hogan as new CEO

The Board of Directors of ABB Ltd announced that Mr Joseph M Hogan has been appointed as CEO of the ABB Group. Mr Hogan is currently CEO of GE Healthcare, the global leader in medical diagnostic technology and biosciences and is a member of the GE Senior Executive Council. He will join ABB on September 1st 2008.

Mr Hubertus von Gruenberg chairman of ABB said that “Following our extensive search over the past months, the Board of Directors is very pleased with Joseph’s decision to take on this exciting role. His proven international track record as a highly successful leader at one of the world’s most respected technology companies will be a great contribution to the Company as we continue to focus the organization on excellence in everything we do.”

Mr Gruenberg said that “The Board and I would also like to thank Michel Demaré for his many contributions to ABB in this transitional period. We are very pleased with the direction of the Company under Demaré’s guidance.”

Mr Hogan said that “I am honored to become ABB’s CEO. I am deeply committed to ABB’s drive to increase energy efficiency and industrial productivity for its customers. I look forward to leading the Company to the next stage of its development and success together with the team at ABB.”

Hyundai Mipo wins USD 180 million ship order from Europe

Reuters reported that South Korean shipbuilder Hyundai Mipo Dockyard had won a KRW 179.1 billion (USD 179.9 million) ship order from an undisclosed European company.

Hyundai Mipo in a filing with the Korea Exchange said that it will build two automobile carriers and deliver them to the company by the end of 2012.

POSCO to starts USD 1.4 billion steel plant in South Korea

It is reported that South Korea's POSCO had started construction of a KRW 1.4 trillion (USD 1.4 billion) plant to boost annual steel production by 2 million tonnes by 2010.

The new steel plant at its Pohang hometown, in the southeast of the country, will be used to produce billet, hot-rolled steel products and ship plate, which has seen demand far outstrip supply thanks to the booming shipbuilding industry.

POSCO in a statement said that "The new plant will not only help ease steel shortages but also reduce costs and boost profits, as it will mainly produce high value-added products adding the new project will contribute 410 billion of operating profit from 2010.”

It said that the new plant with 3 million tonnes of capacity, will boost POSCO's total crude steel capacity in its Pohang steel complex to 17.6 million tonnes per year.

Khuzestan Steel to suspend slab exports

Iran’s Khuzestan Steel has been requested by the government to stop exporting slab, in order to relieve soaring slab prices due to tight supply at home.

Iran’s steel mills have relied on importing slab source for a very long time; Khuzestan is the only slab manufacturer in Iran, supplying 2.2 million tonnes per year of slab for the domestic market and the remainder for export.

Iran imported around 4 million tonnes slab during the period from March 21st 2007 to March 20th 2008 with yearly demand being 8 million tonnes.

Strong demand from Middle East to keep global steel prices up

Analysts said that, in the near future, global steel prices will continue to rise continuously, triggered by hectic infrastructure construction in oil-producing countries of the Middle East.

Analyst said that the volume of consumption of steel in the Middle East area accounts for 3.2% of the world total and 58.2% of Middle East steel consumption depends on imports.

Besides, steel mills would not drop their prices before operating costs would be reduced by falling iron ore and oil prices.

(Sourced from YIEH.com)

OPEC predicts lower demand for oil in 2009

It is reported that OPEC has predicted that the world demand for its crude will fall from the current level of 32.3 million barrel per day to 31.2 million barrel per day in 2009.

The Organization of Petroleum Exporting Countries in its monthly report said that a drop in demand for its crude, the first major decline since 2002, would lead to significant build in inventories in 2009. It said that combined with increasing OPEC capacity, this should further ease market conditions and likely help moderate prices.

The organization said it expected world oil demand to increase by 1.03 % to 87.71 million barrels per day with most of the growth in the transport fuel sector.

The report said that OPEC also revised its forecast for world oil demand growth in 2008 for the fourth time this year from 1.28 % to 1.20 %, saying demand would rise to 86.81 million barrel per day, up from 85.78 million barrel per day in 2007. However, the report added that high fuel prices, the US economic slowdown and a warm winter could result in a further drop in world oil demand growth.

Pakistani builders demand ban on export of cement

Daily Times report quoted Pakistan’s Association of Builders and Developers as saying that the government should ban the cement export and allow its import, so that the menace of the cement price hike could be controlled in the country.

Mr Hafeez ur Rehman Butt former chairman Association of Builders and Developers said that the cement manufacturers are doing an unrealistic price hike without any reason and any justification. He said that “The price of 50 kilogram bag was around PKR 200 to PKR 220 in February 2008 but now the prices are almost double and have reached to PKR 380 to PKR 400.”

He said that we have a surplus of cement in the local market but the manufacturers have created a fake shortage of cement in the local market by exporting it on large scales.

He added that the government increased GST from 15% to 16% and FED from PKR 750 to PKR 900, but the manufacturers have increased prices unrealistically and now they stood at PKR 380 to PKR 400. In the federal budget 2008 or 2009, the government has imposed PKR 50 as federal excise duty on a square foot of the constructed houses if the government did not reduce it then the housing industry would have to face more difficulties.

NTPC plans to bid for thermal plants in Oman

Project Today reported that NTPC is planning to explore an investment option in Oman and currently is in talks with Oman Power & Water Procurement Co, Omani Electricity Regulation Authority and Public Authority for Electricity & Water.

According to the report, NTPC is also having discussions with two prominent Omani private industrial houses with diverse business interests namely Zubair Corporation and Omar Zawawi Establishment.

Oman government has decided in principle to set up coal based power plants in the upcoming industrial port city of Duqum. The generation capacity will be in the range of 1000 to 1200 MW.

OPWPC is expected to award the contract through an international competitive bidding process and the tenders are expected to be invited before end 2008.

Bahrain First Energy Bank launches drilling company

Khaleej Times reported that Bahrain based First Energy Bank has announced the formation of a new USD 3 billion offshore drilling and services company MENAdrill.

As per the report, launched with strategic partners Gulf Finance House and ADWOC and strategic and technical advisors PFC Energy International and Noble Denton, MENAdrill plans to be one of the largest companies of its kind in the Middle East, Asia & North Africa and is designed to capitalize on ever increasing hydrocarbon prices and the resulting robust demand for oil and gas drilling services.

MENAdrill headquartered in Bahrain will focus on offshore exploration and development drilling in the GCC, North Africa & South East Asia. The company aims to have over 20 rigs operating within 3 to 5 years and is in the process of acquiring a leading drilling company with a number of rigs already working in the region and others under construction.

MENAdrill's diversified drilling portfolio will include jackup and semisubmersible rigs capable of drilling in shallow, medium and deep water as well as land rigs and it will also provide project management services.

Mr Esam Janahi CEO of First Energy Bank said that "With the oil price regularly reaching record highs and reserves steadily decreasing, we saw a first class opportunity for a new company to bring together the skills know how and investments required to drive the industry in the region and set a new benchmark in drilling operations. By penetrating this high entry barrier industry with its high margins, MENAdrill will be able to deliver outstanding returns to its investors."

He said that "The largest European and South American reserves are offshore. In the Middle East, Africa and Asia offshore reserves are not fully explored. MENAdrill is positioned to capitalize on the heavy global investment in finding and delivering new resources and has set the cornerstone for a leading offshore drilling regional operator."

Laing O'Rourke profit up by 64% on Middle East rail demand

Bloomberg report Laing O'Rourke Group, Britain's biggest closely held builder as saying that full year profit climbed 64% driven by significant new business in Dubai and a rail contract in Saudi Arabia.

Dartford Southeast England based company recently said that earnings before interest and tax in the year through March was GBP 87.7 million compared with GBP 53.5 million. Sales gained 21% to GBP 4.24 billion.

MR O'Rourke finance director of Iain Ferguson said today Laing O'Rourke, which is overseeing the construction of an 80,000 seat Olympic stadium and athletes village for the 2012 games in London, currently has an order back log of more than GBP 10 billion. A construction boom in Abu Dhabi and Dubai and demand from rail clients in Australia & Saudi Arabia is helping to cushion the builder against a potential economic slowdown.

He said that “As we enter an economic environment not experienced for many years and with difficult financial markets, we can be satisfied that the groups order book is at record levels. The economic climate, particularly in Europe is worse than 12 months ago and shows little sign of improvement.''

Laing O'Rourke Group said that revenues from Laing O'Rourke's Middle East and Asian operations gained 24% to GBP 420 million with a JV in India beating the company's targets. Laing O'Rourke's rail business also beat management expectations. Projects include building and maintaining the Pilbara Railway for iron ore explorer Fortescue Metals Group Limited in Western Australia and a contract win in Saudi Arabia.

APM Terminals & PSA win terminal license in North Morocco

The Mediterranean Special Agency reported that MOROCCAN port authorities have granted licenses to 2 shipping consortiums.

Moroccos main port agency said that the Danish led consortium of APM Terminals which includes the Moroccan conglomerate, Akwa Group was awarded Terminal 3 of Tangier Med with capacity of 3 million TEU.

As per report, Singapore state owned PSA International consortium was granted Terminal 4 with capacity of 2 million TEUs. The group includes Moroccan state maritime firm, Marsa Maroc and SNI an investment company controlled by Morocco’s royal family.

The Mediterranean Special Agency said that APM Terminals led consortium plans to handle 8 million TEUs by 2013 and position Tangier as its biggest port complex in Africa.

Jordanian inflation reaches 13.3% in first half of 2008

Jordan Times reported that inflation rate for the first half of 2008 reached 13.31% as the consumer price index up by 136.61 points from 120.56 points during the first half of 2007.The rise was mainly the result of the increase in the prices of fuel, electricity, transport, dairy and poultry products, cereals and cooking oil, Petra.

According to data obtained from the Department of Statistics the higher prices of the mentioned principal products was coupled with a decline in telecommunication charges. The price of one barrel of crude oil was sold at over USD 147 on the international market while the price of oil is expected to remain within the USD 130 per barrel to USD 150 per barrel during the 2009, thus stoking more fears of higher inflation rates.

Other statistics showed the industrial production index, which measures real production output also up during the first five months of 2008 compared to that recorded during the same period in 2007. The rise was empowered by an increase in the output of manufacturing industries by 5.5% electricity by 10.3% and mining industries by 1.5%.

As per report, exports and re exports up during the first five months of 2008 up by 18.5% YoY and 49.5% YoY respectively while imports went up by 32% YoY compared to those recorded in the same period in 2007. As such, the trade deficit recorded at the end of June reached JOD 2,891.3 million compared to JOD 2,096.5 million for the same period in 2007.

Pakistan proposes changes in agreements with power companies

Daily Times reported that the government has proposed changes in the standardized agreements for power sector to mitigate the risk of change in law and afford protection to the foreign lenders and project companies.

Senior official at Ministry of Water and Power said that government of Pakistan will indemnify full compensation of losses to the project company and its lenders against changes in law in Pakistan affecting the legality or enforceability of implementation agreement, power purchase agreement or Government of Pakistan Guarantee.

The official added that the GoP Guarantee shall continue to be governed by law of Pakistan and courts of competent jurisdiction including courts of England, shall adjudicate disputes arising between GOP and Project Company under the GOP Guarantee.

According to the report, the ministry has proposed to the government that a choice may be given to the lenders between laws of Pakistan and England with respect to direct agreements like IAs and PPAs, which may contain an indemnity to the effect that in case the IAs and PPAs or the GoP Guarantee becomes unenforceable, illegal or invalid due to change in law. In these cases the government of Pakistan indemnifies the project company or the lenders for any cost or loss or liability resulting from such unenforceability, illegality or invalidity, which amount shall equal that would have been received under IA, PPA or GOP Guarantee.

The report quoted the official explaining that the implementation agreement, power purchase agreement and GOP Guarantee shall continue to be governed by the laws of Pakistan. The ministry in response to governing law for direct agreements and Sovereign Guarantee under the 2002 Policy for Power Generation has submitted these proposals for approval and enforcement.

World Bank approves USD 0.5 billion package for Pakistan

Pakistan Business reported that the World Bank has approved by USD 500 million emergency packages for Pakistan to help it overcome economic crisis.

The Bank mission conveyed the decision of accepting Pakistan’s request for disbursement of USD 500 million emergency packages during a meeting with Mr Syed Naveed Qamar Finance Minister of Pakistan held on July 14th.

The mission informed the minister that the World Bank will present the emergency package to its board in August and subject to the board approval release the fund by mid September.

Mr Syed Naveed Qamathe Finance Ministry of Pakistan said that 3 member WB delegations called on the Finance Minister on July 14 to review Pakistan strategy for coping with severe economic crunch. Pakistan had requested the Bank for loan under emergency package to support its depleting FOREX reserves and reduce budget deficit.

The official claimed that the mission expressed satisfaction over the steps taken by the government for offsetting pressure on its economy such as cutting down subsidy on oil, gas and electricity rates. The mission expressed confidence that the government will strictly follow the existing policy of eliminating subsidy regime and introduce a market based approach for all sectors of the economy.

The official said that the World Bank's support of USD 500 million will restore other donor’s confidence in Pakistan economic policies and pave way for getting more funds from other donors for different development projects. It would also brighten the chances to secure much needed USD 1.5 billion from the World Bank during next one year.

Steel users in Middle East Asia

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

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

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

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

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

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

NDRC reviews Chinese steel industry performance

According to NDRC, China's steel industry has been trying to offset the additional cost by improving management and innovation and pushing forward technical upgrade and emission reduction. Over all, the industry held on a steady growing trend.

Performance

1. Steel output grew steadily, yet at a slowed rate. In January to May, the nation's steel production hit 216.11 million tonnes up by 18.63 million tonnes or 9.4% YoY, 10.5 percentage points down from the comparable figure of last year; steel product output recorded 218.67 million tonnes up by 27.37 million tonnes or 12.5% down by 11.4 percentage points.

2. Steel product export declined while the value increased. Export of steel products went down prominently due to the tax change and RMB appreciation. In January to May export of steel billet came to 110,000 tonnes down by 96.9% YoY while that of finished products lost 20.8% to 21.71 million tonnes. The export value gained 10.3% to USD 19.8 billion.

3. Steel Price rose fast. By end-May, the composite steel price index was 156.86 points up by 31.49 points or 25.1% from the year start or up 43.52 points or 38.4% YoY. To be specific, the longs price index stood at 164.75 points up by 50.05 points or 57.4% YoY while the flats posted 155.94 points up by 37.73 points or 31.9%. The price rise is considered conditionally reasonable, since the demand has kept strong boosted by fast-growing fixed asset investment and economy, the materials and fuels prices have rocked up across the board, and the international market's soundness also gives a push.

4. Profitability remained on a high level. The Industry's profits kept a high growth from last year's. The metallurgical sectors earned CNY 142.6 billion up by 50.8% YoY up by 12.2 percentage points from January to February.

5. M&A picked up and the industry layout tended to be reasonable. Shandong Province witnessed combination of Jinan Steel Group and Laiwu Steel Group. Hebei also set up a bigger steel group by further regrouping Handan Steel and brought the capacity to 31 million tonnes per year. Beijing nodded Baosteel's integrating Guangdong steel enterprises, while WISCO stepped into substantial stage to take over the mill in Guangxi. The picture is getting clearer with setting up of Caofeidian Jingtang item, Yingkou Bayuquan project and approval for Fangchenggang's.

Some points still need attention in development

1. On export, shipping out of steel products still stepped up MoM standing at 3.11 million tonnes, 4.15 million tonnes, 4.77 million tonnes and 5.56 million tonnes from February to May, while May export figure exceeded the average of last year's. Additionally, there was a tendency that exemption of export tax for alloyed product was utilized by the exporters who ship out common bar & rod and sections, leading to big surge in export of so called alloyed rod &bar and sections. Sheet/plate export was in the same case.

2. On investment, the steel industry continued last year's rebounding trend. Fixed asset investment in the steel industry recovered in 2007 by a growth rate of 12.2% after five years of consecutive speedy growth during 2001 to 2005 followed by a minus in 2006. In January to May 2008 the ferrous metals smelting and processing industry completed investments of CNY 96.55 billion up by 22.45 YoY 17.5 percentage points higher than last year's comparable figure.

3. On energy saving and emission reduction, first, the keynote steelmakers' per ton steel making comprehensive energy consumption increased this January to April, though it has been coming down in past years, to 628.2 Kilogram coal equivalent from 623.4 Kilogram coal equivalent in the same period of last year. Second, emission of sulfur dioxide also grew 1.43% YoY.

4. On M&A, the ongoing programs are mostly inside a province, which is difficult to lead to optimized resource allocation in the nationwide range. Compared with the developed nations, China's steel industry remains low concentrated with a huge number of small and scattered-distributed enterprises. Objectively speaking, the industry is unable to take the initiative in adjusting output and holding on pricing power. There is still serious blind, repeated construction, the self reliant innovative capability is low and it's hard to ensure supply of the materials.

(Sourced from MySteel.net)

Xiangtan Steel commissions second wide plate mill

It is reported that Valin Group Xiangtan Iron and Steel Group Co Ltd hot commissioned its second 3.8 meter wide plate mill set up with a total investment of more than CNY 1.7 billion.

The mill has an annual design capacity of 1 million tonnes with actual output exceeding 1.2 million tonnes.

Coupled with the first 3.8 meter double stand mill launched in October 2005, Xiangtan Steel’s total wide plate capacity has crossed 3 million tonnes per year.

Shenhua output in H1 up by 17%

It is reported that Shenhua Energy produced 17% more of coal in the first half of 2008, as it raced to meet shortfalls in the world's fourth largest economy.

Shenhua Energy produced 89.6 million tonnes of coal in the first six months and its coal sales rose by 17.7% YoY to 115.1 million tonnes in the same period. However, its exports slid by 13% YoY to just 10.6 million tonnes in the six month period.

The state run firm has said it planned to keep 2008 exports flat, holding back the fuel, which fires three quarters of the country's power capacity for use at home.

Chinese Steel plate export offer remain high

It is reported that export offers for Chinese steel plate remain at high levels 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 in September or October shipment.

(Sourced from MySteel.com)

2008 China Steel International Trade Summit

CBI China is organizing “2008 China Steel International Trade Summit” on September 23rd to 25th 2008 at Asia Hotel Beijing China.

Domestic steel market has adjusted itself to the new tariff rate after the first tough quarter. The second quarter sees the export rebound to a steadily increasing phase. However, a flood of severe events from home and abroad tosses the steel export market into another round of uncertainty during the next half of the year.

A series of important events such the earthquake in Wenchuan and the upcoming Olympic Games greatly affect the supply and demand balance. As the most important steel exporter, China’s export quantity will be thereby affected. Steel export will warm up again considering the yawing price gap between home and abroad as the global market is faced with steel shortage.

It is absolutely that the supply and demand unbalance will be a sure common concern for the global steel market in the second half of 2008.

Export policy will possibly be further adjusted; the tighter monetary policy will be publicized; global demand for steel is increasing steadily; the economic downturn in EU and US effects on global market; trade protectionism invites trade fraction; the reconstruction plan in the quake devastated Wenchuan; the producing cut during the 2008 Olympic Game.

All the above issues will be thoroughly discussed in “2008 China Steel International Trade Summit”.

To know more about conference, please send a mail at events@steelguru.com

NDRC approves WISCO Kunming Caopu Project

It is reported that WISCO’s Kunming Steel has received the approval about the construction of Caopu project from China National Development & Reform Commission and the company would develop the project in Caopu new area.

Caopu Project is an important result of strategic mergers of WISCO and Kungang. The aim is to form a key production base of CR silicon steel, auto sheet and high quality engineer structure steel in China.

It is expected that Kungang should produce 6 million tonnes of crude steel, 5.75 million tonnes of pig iron and 6.3 million tonnes of finished steel products in this year.

Sales income may be more than CNY 30billion, while total profit could be over CNY 1.5billion, both of which would make a new high in history.

Chengdu Xinjin commissions PPGI project

It is reported that Chengdu Southeast Steel Structure Company’s first batch of PPGI from newly installed color coating line was produced recently.

The total investment of the project is CNY 100 million with an annual production capacity of more than 120,000 tonnes after it is in full production, the yearly production value can reach more than CNY 1.14 billion.

As per reports, the project started to be constructed at the second half year of 2007, it overcame the power cut due to the snowstorm and earthquake, put into production on schedule.

Chinese HDG exports slows down

It is reported that exports of Chinese hot dipped galvanized steel exports are getting difficult due to softening prices and anti dumping investigations. Export tonnages for August or September shipment probably would see small decrease.

According to MySteel, domestic market prices are still on the decrease. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7460 per tonne to CNY 7480 per tonne that for 0.5mm HDG by private steel makers is at CNY 7680 per tonne down by CNY 100 per tonne and CNY 70 per tonne respectively from last Thursday. The downward adjustment is expected to go on in July unless it could exceed CNY 7600 per tonne.

Export quotation for 1.0mm HDG Z120 by tier two steel mills is at USD 1150 per tonne to USD 1170 per tonne with transaction price at USD 1145 per tonne to USD 1155 per tonne FOB.

(Sourced from MySteel.net)

Shandong based steelmakers to bear cost increase of CNY 15 billion

It is reported that production cost of steel makers in Shandong province soared by at least CNY 15 billion due to the rising iron ore prices.

According to Department of Foreign Trade & Economic Cooperation of Shandong province and the provincial State owned Assets Supervision and Administration Commission, this province is expected to yield 55 million tonnes of pig iron this year and import some 70 million tonnes of iron ore. Calculating based on CNY 6.9 per USD, the incremental cost resulted from rocketing ore price will climb up to CNY 15.18 billion to CNY 17.08 billion.

Jigang Group Co Ltd will consume imported iron ore about 9 million tonnes, with a cost increase of CNY 2.3 billion while Laigang Group, another leading steel producer in Shangdong has to undertake a cost hike of CNY 930 million based on its contract volume of imported iron ore of some 105 million tonnes.

EU to launch AD probe against Chinese aluminum foil

China Knowledge reported that the European Commission has decided to launch an anti dumping probe against aluminum foil imports from China, Armenia and Brazil, in response to a complaint lodged by the EuroMetaux on May 28th 2008.

The commission said that excessive influx of aluminum foil from China, Armenia and Brazil has caused substantial damages to Europe's aluminum foil industry.

It will investigate imports of aluminum foil with a thickness of not less than 0.008 mm and not more than 0.018 mm, not backed, and not further worked than rolled, in reels of a width not exceeding 650 mm, imported from the three countries.

Then EU anti dumping investigation normally takes a year to complete; investigations have to be completed within 15 months after which the EU governments have the final say on whether to impose definite anti dumping duties. The commission may impose provisional duties, which may last for six to nine months, during the investigation period.

EU has already launched several anti dumping investigations against Chinese steel, wire rods and candles. China's Ministry of Commerce has reiterated it expects the Commission to resolve the issue through negotiations and cooperation, without resorting to anti dumping measures.

Guangdong steel pipe exports in H1 down by 31.2%% YoY

It is reported that Guangdong's steel pipe exports dropped dramatically in the first six months of this year owing to anti dumping duty and countervailing duty investigations launched by the US and AD investigations initiated by EU.

Statistics from Guangzhou Customs show that Guangdong exported 180,000 tonnes of steel pipe during January to June valued at USD 210 million down by 31.2% YoY and 39.8% YoY respectively

The province exported 18,000 tonnes to the US and 2,000 tonnes to EU down by 74.5% and 84.7% respectively. Exports to Hong Kong also lost 38% to 35,000 tonnes. In the meanwhile its exports to the Association of South East Asian Nations gained 51.5% to 42,000 tonnes, that to Malaysia surged 660% to 27,000 tonnes and that to Iraq roared 746% to 23,000 tonnes.

China's steel industry has become a severely afflicted sector of AD and CVD cases initiated by the US and EU in recent years.

World Scrap Metal Congress 2008

Terrapinn Pte Ltd is organizing “World Scrap Metal Congress 2008” on November 3rd to 5th 2008 at International Pudong Shanghai, China.

Running for the 4th year, World Scrap Metal Congress continues to provide a highly exclusive platform where international ferrous and non ferrous scrap metals sellers and traders meet buyers from the East.

This year, over 20 leading Asian ferrous and nonferrous scrap metal buyers will be presenting their procurement strategies and demand forecast for the next 5 years. This is a unique opportunity for scrap metal suppliers and traders to find out what Asian buyers are looking for.

In addition, for the first time at this event, custom regulators from Europe, US, China and India will be addressing the latest import and export polices that will impact your business. This will be the only event that offers you the unique opportunity to meet and discuss strategic issues with authorities from the biggest import and export markets in the world and identify how your business might need to evolve to meet future challenges and opportunities.

To know more about this conference, please send a mail at events@steelguru.com

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.

China auto import growth slows down in 5 months of 2008

According to General Administration of Customs, growth in China's auto imports slowed down in the first five months of this year, thanks largely to a compulsory coding system for standardizing vehicle purchase from abroad.

The customs said between January and May, China bought 171,000 motor vehicles from abroad, a growth of 59% YoY on the same period of last year. The arrivals were valued at USD 6.26 billion up by 74.9%. The import growth rates, however 15.7 percentage points lower than the first quarter level.

The total imports included 71,000 motor vehicles bought from Japan, up by 100% and 57,000 from the European Union up by 54%. The growth rates were 19 percentage points and 13 percentage points, respectively, lower than the first quarter level.

The January to May period saw off road vehicles imports soar 91% to 87,000 units nationwide or 50.9% of the total auto arrivals. The growth rate was 32 percentage points higher than that for the total imports, while the proportion was up from the 42.4% level a year earlier.

China car imports went up 29.6% to 65,000 units or 38.2% of the total down by 8.7 percentage points.

Nangang exports high speed spring steel wires to Germany

It is reported that, Nanjing Iron and Steel Company United Company firstly exported large quantities of 38 Si7 high speed spring steel wire to the foreign country.

As per reports, the 556 tonnes of 38 Si7 high speed spring steel wire were exported to Germany, after processing by Germany, the products will be used in the construction of domestic important railway project-Wuhan to Guangzhou railway passenger transport line.

The high speed spring steel wire belongs to higher value added high end product and mainly be used in the construction of high speed railway. This batch of 38 Si7 high speed spring steel wire produced by Nanjing Iron and Steel Company is the first large order aiming at German customers.

Shanxi Guanlu starts trial production at new aluminum facility

Interfax China reported that Shenzhen listed Shanxi Guanlu Co Ltd recently commenced trial production at its 12,000 tonnes refined aluminum facility in northern China's Shanxi Province.

An official with Shanxi Guanlu's board secretariat office said that "The first batch of 34 electrolytic cells are in operation, while the remaining 32 cells will be utilized gradually until the whole facility comes online in the first half of 2009."

He said that "Although the company is currently under pressure from a slight power supply shortage, we are prioritizing the operation of the new facility, which is estimated to produce 4,000 tonnes of refined aluminum in 2008."

China influencing global trends for steel

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

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

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

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

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

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

Color coated steel sheet producing base in Southwest China launched in Chendu

It is reported that with the first batch of color coated steel sheet launched off from the production line of Chengdu Dongnan Ganggou Co Ltd, the largest color coated sheet producing base in Southwest China put into operation finally.

As per report, with total investment about CNY 100 million, the project which started to construction in mid 2007 and took about 10 months to complete can yield 120,000 tonnes of color coated steel sheets, valuing over CNY 1.14 billion.

The project adopts advanced technician in production line. High automation reduces labor cost. When it is in full capacity, merely 11 skillful workers are enough to operate the production line.

Chinese steel billet export in H1 fall

It is reported that China's steel billet export falls accumulatively from January to June though single month export and import volume keeps balance in June as 20,000 tonnes each.

China exported 20,000 tonnes of steel billets in June up by 10,000 tonnes YoY and 100% MoM. China exported 130,000 tonnes of steel billets in H1, dropping 4.24 million tonnes on the basis of the 4.37 million tonnes created in the same period last year.

China imported 20,000 tonnes of steel billets in June, neither increase nor reduce comparing with the previous time. The total imported tonnage is 100,000 tones decreasing 40,000 tonnes YoY.

According to the date, China is still the steel billet net exporter in 2008, yet the net export tonnage reduces 99.29% from 4.23 million tonnes shipped out in the first half years of 2007.

Shuigang Group held discussion to stabilize construction market in South West China

It is reported that Shuigang Group invests Chengdu Steel, Chongqing Steel, Dazhou Steel, Kunming Steel and other steelmakers in south west China to participate a subject meeting held on July 15th.

Currently, rainy weather in south west China dilutes the terminal demand for construction steel and further softens the steel price in domestic market as well. Partial traders compete forcing down price. The market drags in discount flu.

Citing disorder is spreading in the market, Shuigang Group suggest to hold the subject meeting on discussing how to stabilized the construction market in south west China.

(Sourced from MySteel.net)

Xinxing Pipes to build large steel mills in Xinjiang

It is reported that Xinxing Pipes Group lately announced a plan of strategic development in Xinjiang area, which says a list of steel enterprises will be built there to generate a target sales income CNY 50 billion per year.

As per report, Xinxing Pipes wants to construct mills for producing 1.8 million tonnes centrifugal cast oil tube mill, 1.36 million tonnes quality steel for manufacturing, 200,000 tonnes high carbon ferrochrome, 1 million tonnes HR stainless steel coil and wire rod every year.

Chinese GDP in H1 2008 up by 10.4% YoY

According to the National Bureau of Statistics, China's gross domestic product grew 10.4%YoY to CNY 13.06 trillion in the first half of 2008.

The Bureau said the growth rate was down by 1.8% YoY, or down by 0.2% than the first quarter of this year.

PPI in H1 2008 up by 7.6% YoY

China National Bureau of Statistics said the producer price index for China's industrial products during H1 2008 up by 7.6%YoY.

The Bureau said the growth of PPI, which measures the value of finished products when they leave the factory, is up by 4.8% YoY.

The PPI in June up by 8.8% MoM as compared with 8.2% in May.

CPI in H1 2008 up by 7.9% YoY

According to China National Bureau of Statistics, China's consumer price index, the main gauge of inflation in H1 2008 up by 7.9% YoY.

The Bureau said the figure, compared with 7.1% in June, 7.7% in May, 8.5% in April and a nearly 12 year high of 8.7% in February was broadly in line with most forecasts.

HK and Singaporean investors eying shares of Krakatau – Finacial director

Xinhua cited Mr Fazwar Bujang finance Director of PT Krakatau Steel as saying that investors from China's Hong Kong and Singapore are interested in buying shares of Indonesian largest steel producer of Krakatau Steel Inc.

He said that the company has completed its road show to Singapore and Hong Kong recently to meet with the investors there. He added that the company was open for the domestic and foreign investors.

Mr Fazwar Bujang said "The Krakatau Steel can accept domestic and foreign investors. The fact that recently the foreign investors have dominated our capital market. He said that the company was targeted for the initial public offering in October this year.”

Mr Fazwar Bujang said that the split of the share between domestic and foreign investors would be determined further.

In 2007 Krakatau Steel Inc, posted a net profit of around IDR 370 billion. In the first quarter of 2008 alone, the figure already reached IDR 400 billion.

Shanghai Electric sees H1 2008 net loss of CNY 560 million

XFN-Asia reported that Shanghai Electric Power Co Ltd expects a first half net loss of CNY 560 million mainly due to higher coal prices, as well as rising financing costs.

As per report, in the H1 of 2007, the company booked a net profit of CNY 211 million or CNY 0.135 per share.

The company is due to release audited first half financial results on Aug 29.

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.

Voestalpine yet to decide on steel mill in Black Sea region

Bloomberg reported that Voestalpine AG, Austria's biggest steelmaker, is yet to decide whether to build a steel mill in Ukraine.

Mr Peter Schiefer a spokesman of Voestalpine said that the company seeking access to the Black Sea is choosing between Romania, Bulgaria, Ukraine and Turkey and a decision will be taken this year.

According to Ms Maryna Soroka a spokeswoman of Ms Yulia Timoshenko PM of Ukraine, Voestalpine had agreed to build a EUR 5 billion plant in the former Soviet State. She made the comments after meeting Austrian Chancellor Mr Alfred Gusenbauer.

Update on Evraz results for steel operations for Q2 of 2008

Evraz Group SA in recent released announced its Q2 2008 steel operational results

Russia

In ‘000 tonnes

Europe

In ‘000 tonnes

North America

In ‘000 tonnes

South Africa

In ‘000 tonnes

ArcelorMittal Kriviy Rih has fulfilled investment obligations

BBC reported that the ArcelorMittal, the owner of the Kriviy Rih based steel plant in Ukraine, has fulfilled all the investment obligations the company committed itself to when purchasing Kryvorizhstal.

ArcelorMittal released a statement after the State Property Fund of Ukraine said that the agreement on the Kryvorizhstal sale should be revoked due to failure to fulfill its commitments.

ArcelorMittal said that they provided the State Property Fund with all the documents which show that all the investment obligations were observed.

The release added that “Kiev has not sent any official claims to the plant owners yet.”

The State Property Fund asked the cabinet to allocate almost UAH 73 million to pay for taking ArcelorMittal to court in a bid to revoke the Kryvorizhstal purchase agreement.

Ukraine increases steel production output in H1 2008

According to State Statistics Committee of Ukraine, Ukraine produced 22.75 million tonnes of steel products in January to June 2008 period as compared to 21.734 million tonnes during January to June 2007.

The committee said that the country increased production of pig iron to 18.526 million tonnes from 18.013 million tonnes from a year ago. Besides, production of rolled steel increased to 12.506 million tonnes from 12.272 million tonnes.

Ukraine produced some 42.8 million tonnes of crude steel in 2007.

Ukraine industrial production down by 2.5% MoM

Ukrainian Journal Staff reported that, industrial production in Ukraine up by 5.2% YoY in June 2008 compare