TATA Steel confirms prices hike next month

DNA cited Mr B Muthuraman MD of TATA Steel as saying that they may raise steel prices next month due to spike in production costs.

Mr Muthuraman said that “There is an unprecedented increase in raw material prices. Ocean freight rates are at an all time high and other input costs are high too.”

He said that “Everyone has to play a part in containing inflation. The steel industry too played its part by reducing prices. The industry now wants the government and consumers to play their parts.”

He added that excise duty collected from the industry had doubled in 2 years because of rising steel prices and volumes. It looks like the government is pushing companies abroad to sell steel here at higher prices.

TATA Metaliks unveils CAPEX plans

DNA cited Mr HM Nerurkar chairman of TATA Metaliks as saying that TATA Metaliks is planning a substantial investment in downstream value added products in the next 5 to 6 months. These include ductile iron pipes, small and medium sized castings.

As per report, TATA Metaliks will set up a sinter plant and a foundry at the ductile iron pipe plant in Kharagpur, which it is constructing in collaboration with Kubota Corp of Japan. The plant is expected to be completed by 2010. Mr Nerurkar said that “Our investment plans will be firmed up within the next five to six months. The board of directors on Wednesday cleared INR 75 crore investments for a new sinter plant.”

He said that the company’s plans about an integrated steel plant in Karnataka but Mr Nerurkar refused to divulge details. The company is looking for 800,000 tonnes capacity integrated steel plant there. Mr Nerurkar said that “It will cater to the requirement of auto component manufacturers. We feel there is an immense scope for the foundry industry in eastern India especially when there are not many organized players with exposure to sophisticated technology.

He added that the company is also planning an expansion in Madhya Pradesh.” TATA Metaliks has applied to the Madhya Pradesh government for an iron ore and coal block.

He said that “We expect a revenue growth of 15 to 20% by the end of the current financial year. He added that the improved profitability will mainly come from value added products.”

It has reported a 31.71% up in net profit to INR 20.23 crore for the quarter ended June 2008, up from INR 15.36 crore recorded during the corresponding quarter of the previous fiscal.

RINL starts work on new BF

It is reported that Mr PK Bishnoi CMD of Rashtriya ispat Nigam Limited commenced the erection of the shell of the third blast furnace of Visakhapatnam Steel Plant, as part of its 6.3 million tonne expansion program, on July 15th 2008.

IFGL Refractories acquire Hofmann entities

IFGL Refractories Limited last week announced the acquisition of 96.16% of the share capital of Hofmann Ceramic GmbH of Germany and 100% partnership interest in Hofmann OHG of Germany. IFGL has also acquired 92% of the shareholding of Hofmann Ceramics of Czech Republic and 100% shareholding of Hofmann Ceramics Limited, UK Hofmann Ceramics Llc of the US.

Mr Pradeep Bajoria director & CEO of IFGL Refractories Limited said that the acquisition has been made through a SPV, IFGL GmbH for a consideration of EUR 7 million. The acquisition was funded by a loan of EUR 5.3 million obtained from HSBC Bank Plc, UK.

Mr Bajoria said that Hofmann entities were primarily engaged in the manufacture of ceramic filters and refractories for the foundry industry. Its operating facilities were located at Breitscheid Erdbach in Germany and in the city of Bela in the Czech Republic. The combined turnover of Hofmann entities is EUR 13.67 million.

According to the release, the acquisition of Hofmann entities will enable IFGL and its subsidiaries in Brazil, China, UK and the US which presently manufacture refractories for iron and steel industries to diversify and meet the foundry industries requirements of ceramic filters, refectories and consumables.

Stroytransgaz completes gas pipeline section in India

RIA Novosti reported that Stroytransgaz, one of Russia's largest engineering and construction companies had completed the construction of the first and second sections of a gas pipeline in India.

Stroytransgaz, which is partly owned by energy giant Gazprom, signed a contract for a project to build an East-West gas pipeline 1,386 kilometer long with India's Reliance Gas Transportation Infrastructure Ltd the project's customer in August 2006.

The Russian contractor said Reliance Gas divided the project into eight sections. Under the contract, Stroytransgaz built the first and second sections of the pipeline with a length of 147 kilometer and 102 kilometer respectively. Stroytransgaz also built six valve stations, a scraper receiver and launching station and over 300 pipeline crossings over natural and man made obstacles.

The East to West pipeline is designed to cater for the growing natural gas requirements of central, western and northern states of India. Its route starts from an onshore gas processing terminal near the city of Kakinada, passes across the states of Andhra Pradesh, Karnataka, Maharashtra, Gujarat and ends near the city of Bharuch.

PFC net profit in Q1 down by 4% YoY

State run Power Finance Corporation announced a net profit of INR 296.30 crore for the first quarter ended June 30 down by 4% YoY as compared to 2007. The firm had clocked net profit of INR 308.65 crore in the first quarter of FY 2008.

PFC’s total income up by 26% YoY to INR 1,441.60 crore in the latest quarter.

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Quest sets up metal fabrication facility for aerospace

QuEST, a leading provider of outsourced engineering services and manufacturing, announced that its wholly owned subsidiary QuEST Manufacturing is setting up a dedicated sheet metal fabrication facility for aerospace in its 300 acre Special Economic Zone at Belgaum in Karnataka in India.

According to the release, this facility would be in close proximity to machining and special processing facilities and would support both engine and structural sheet metal forming. Phase 1 of this facility would consist of sheet metal cutting, brake forming, hydro forming & fluid forming heat treatment for aluminum and assembly operations like riveting etc.

Mr Aravind Melligeri chairman & Co founder of QuEST said that “Setting up of the sheet metal processing facility will enable QuEST and its current customers to graduate towards integrated sourcing and assemblies. It reiterates our commitment to setup an ecosystem for the supply chain catering to global aerospace industry requirement. Combined with the rest of our capabilities it positions us uniquely in the aerospace industry in India.”

The release added that QuEST has appointed Mr Nicholas Belbin as an advisory board member at QuEST Manufacturing to leverage his extensive experience in aerospace sheet metal processing. He has been instrumental in establishing FMS and computerized systems for various forming processes like brake forming, hydro forming, hot forming etc. He has also written detailed specifications for forming and processing of sheet metal fabrication and assembly.

QuEST is participating in the Farnborough International Airshow 2008 UK, during which, it would be showcasing its end to end capabilities in aerospace engineering which include design and drafting modeling, analysis simulation, design automation, technical documentation, instrumentation and controls electrical wiring harness, avionics, embedded systems, manufacturing engineering, prototyping in house precision machining, sheet metal work and special processing.

Thermax bags INR 820 crore contract

It is reported that Thermax got order worth INR.820 crore for the supply of coal fired boilers for an unnamed refinery's captive co generation plant.

As per report, the refinery is expanding its capacity to process up to 35 million tonnes of crude per annum. The refinery's captive plant will consist of 2,400 MW output equivalent boilers, which will be manufactured by Thermax under technology license from US based Babcock & Wilcox Power Generation Group Inc.

Each of the boilers will have the capacity to generate 250 MW of electricity. The supply of the boilers will start 12 months from now and will be completed in 30 months.

BGR Energy bags Kali Sindh power project contract

It is reported that BGR Energy Systems bagged an EPC contract worth INR.4,900.06 crore from Rajasthan Rajya Vidyut Utpadan Nigam for the 2 x 600 MW Kali Sindh coal based power project in Jhalawar district.

As per report, the scope of work includes design, engineering and supply of boiler, steam turbine generator and complete balance of plant equipments inclusive of all mechanical, electrical, instrumentation and control systems and civil, structural and architectural works. The EPC contract will be executed over 39 months for Unit I and 42 months for Unit II.

The project will have 2 of Asia's tallest natural draft cooling towers. These cooling towers will be disigned and built by the company in house.

Gammon eying majority stake in Italian company

Project today reported that Gammon India is in talks with the Italy based power firm Sofinter to pick up a majority stake in the foreign firm.

This will be the third acquisition by Gammon in the Italian market and Gammon is looking for more than 50% equity stake in the firm.

As per the report, Gammon had acquired a majority stake in Italian turbine maker Franco Tosi Meccanica for EUR 40 million and a 50% equity stake in power sector services firm Sadelmi for EUR 7.5 million.

BMRC seeks extension of metro rail project

Project today reported that Bangalore Metro Rail Corporation has prepared an extension program to be incorporated in the first phase of the metro rail project itself to add another 5.6 kilometer extension on northern side of Bangalore and 3.2 kilometer towards southern side of the city at an estimated cost of INR.1,763 crore.

As per report, the proposal has been sent to the Karnataka government for the Cabinet approval after which it will send the proposal to the Union ministry of urban development for the final concurrence to carry out extension work. The proposal sought the Centre and state governments to provide equity of 15% each in the INR 1,763 crore worth extension work.

In addition, it also sought for subordinate debt of 10% from the Centre and 15% from the state government. In the remaining 45% the BMRCL expects 28% from Japan Bank of International Cooperation and plans to up by 17% through local financial institutions.

A similar fund structure was adopted in INR 6,395 crore worth first phase main metro rail project for which the JBIC had already cleared around INR 1,795 crore under a special rate of interest.

The main project comprising 33 kilometer under ground stretch was 6.7 kilometer and elevated structure was for 26.30 kilometer. The JBIC has funded for all under ground works, tunnels and stations including ventilation and air conditioning, signaling, train control and communication, automatic fare collection system and general consultancy services in the main project.

TAMP issues notices for Paradip port berth tariffs

BL reported that Tariff Authority for Major Ports having issued the necessary notification to the Paradip Port Trust after fixing the upfront tariffs for 2 BOT berths one for handling iron ore and the other coal the port authorities will soon approach the Public Private Partnership Appraisal Committee for final approval of the projects.

Mr K Raghuramaiah chairman of PPT said that “Once the approval is obtained, we will invite RFPs that is price bids, from the short listed firms. We hope to sign the concessional agreement with the successful bidder by December.”

According to the original estimate, the 2 berths, one for handling iron ore and the other coal together will cost close to INR 1,000 crore to INR 500 crore for the ore berth and INR 480 crore for the coal berth. Each will have the capacity of 10 million tonnes a year. The period of construction is estimated at two years.

TRF bags order from Damodar Valley

TRF Limited has informed the BSE that the company announced receipt of an order worth INR 413.85 crore from Damodar Valley Corporation for design, engineering, manufacture, supply, erection, testing and commissioning of coal handling plant on turn key basis for 2 X 600 MW Raghunathpur Power Project Phase 1.

Blue Star bags INR 104 crore contracts from DMRC

It is reported that Blue Star bagged an INR.104 crore order from Delhi Metro Rail Corporation to provide total air conditioning to 7 metro stations.

As per the report, Blue Star will provide air conditioning solutions to 7 underground stations namely Hauz Khas, Malviya Nagar, Saket, Central Secretariat, Khan Market, Jawaharlal Nehru Stadium and Jungpura and associated tunnel sections on the Central Secretariat to Badarpur Corridor of Phase II of Delhi mass rapid transport system project.

The report further added that Blue Star's work for the underground stations would include supply and installation of air conditioning systems comprising chillers, cooling towers, air handling units, fan coil units, indoor units, ducting, piping and grills among others.

The project is scheduled to be completed by January 2011.

Builders see surge in Reality rates as inevitable

BS reported that the promise of returns from escalation in real estate prices in the tier II & tier III cities across the country investors were re evaluating real estate as an asset class owing to rising risk profiles, speakers at a seminar here warned.

Mr Rahul Varma director of Bengal Shristi Infrastructure Development, a public private JV developing integrated townships in tier II south Bengal towns like Asansol, Durgapur and Ranigunj said that teal estate prices had gone from INR 1100 per square feet to INR 2700 per square feet in Durgapur in the last 2 years and looked likely to touch INR 3000 per square feet in 2009.

Mr Sumit Dabriwala MD of Calcutta Metropolitan said that developers were targeting actual users as a target category as this was the more sustainable demand category in the long run. As far as occupancy rates in residential complexes in tier II cities was concerned around 70% were actual users, while 30% were possibly investors. Dabriwala admitted that the proportion of investors in a particular project varied according to the marketing strategy of the developer.

Mr Pradeep Sureka of PS Group and president of the Confederation of Real Estate Developers' Association said that only a buyer investing in multiple residential units at the same time could be considered an investor and the proportion of such investors in tier II real estate projects was miniscule. He added that Land was cheaper in tier II and tier III cities but rising construction costs could push up prices further in coming years.

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
USD 1,184 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

EUROFER releases economic and steel market outlook

EUROFER said that in line with earlier projections, the EU economy held up well in the first quarter of 2008 amidst weakening global fundamentals. However, indications that the EU economy will lose momentum heading into the second half of the year have become stronger.

Confidence indicators cooled significantly in recent months due to deepening fears over the negative impact of the US slowdown, the global financial crisis and particularly on concerns about the impact of rising inflation on the EU economy. The latest forecasts submitted by the members of Eurofer’s Economic Committee still show GDP growth at 1.8% in 2008, but next year looks set to see a more marked slowdown to a below-trend 1.4%.

Q1’08 output growth in the EU steel using sectors was somewhat stronger than previously anticipated. However, it is also evident that activity in the steel using sectors is seen slowing compared to the very robust growth rates registered in the 2006-07 period. The deceleration is projected to intensify in the 1st half of 2009. By then, order books will be getting thinner whereas business conditions in the EU and in the international export markets will be affected by slowing global demand for capital and consumer goods. A mild rebound in activity is foreseen towards the end of 2009.

All in all, output in the steel using sectors is expected to increase by 2.5% in 2008 and 1.7% in 2009.

So far this year, the supply-demand situation in the EUsteel market was relatively well-balanced. Although in the first quarter, imports were slightly up on the Q4 ’07 level, robust end-use fundamentals enabled EU mills to regain market lost in 2006-07 due to the drastic increase in imports into the EU market. EU mills stepping up domestic deliveries resulted in a 5 percentage-points gain in market share compared to Q1’07.

Mid’08 inventory levels were generally assessed to be in line with the overall still firm downstream activity levels in the distribution chain and at end-users.

On balance, apparent consumption in the whole of 2008 is seen rising by 0.6%. First projections for 2009 signal 2% growth in apparent consumption as a result of the expected mild increase in real steel consumption and the absence of significant destocking.

This projection suggests a reduction in imports in 2008 and a slight rise in 2009. Should imports start to rise at an earlier stage or more sharply, then the supply demand situation in the EU steel market looks set to become unbalanced again.

POSCO 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, ho -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.

Nippon Steel raises SBQ plate prices

It is reported that Nippon Steel Corp has raised prices of plate used by shipbuilders and machinery makers for the third time this year to pass along surging costs for energy, ore and other materials.

Mr Masato Suzuki a spokesman for the Tokyo-based company said steel plate sold through wholesalers on an immediate delivery basis will increase JPY 10,000 per tonne on August 1st. Prices have jumped 50% since the quarter ended March, when the company said its average product price was JPY 80,200 per tonne.

Nippon SteeL raised spot plate-delivery prices by about 10% to JPY 110,000 per tonne as of June. That gain followed a JPY 20,000 increase in April.

Nucor net earning in Q2 up by 68%YoY

Nucor Corporation announced record consolidated net earnings for the second quarter of 2008 of USD 580.8 million an increase of 68% over getting a big boost from global strength in the steel market, recent acquisitions and its ability to keep prices a step ahead of rising costs.

In the second quarter of 2008, Nucor's consolidated net sales increased by 70% to a record USD 7.09 billion as compared with USD 4.17 billion in the second quarter of 2007 and increased 43% compared with USD 4.97 billion in the first quarter of 2008. Average sales price per ton increased 24% over the second quarter of 2007 and increased 19% over the first quarter of 2008. Total tonnes shipped to outside customers were 7,734,000 tonnes in the second quarter of 2008, an increase of 38% over the second quarter of 2007 and an increase of 20% over the first quarter of 2008.

In the first half of 2008, Nucor's consolidated net earnings increased 36% to a record USD 990.5 million as compared with net earnings of USD 725.9 million in last year's first half. Its consolidated net sales increased 52% to a record USD 12.06 billion, compared with USD 7.94 billion in last year's first half. Average sales price per ton increased 21% while total tons shipped to outside customers increased 26% from the first half of 2007.

In the steel mills segment, steel production increased 7% to a record 11,874,000 tons in the first half of 2008 as compared with 11,103,000 tons produced in the first half of 2007. Total steel shipments increased 9% to a record 12,068,000 tons in the first half of 2008, compared with 11,067,000 tons in last year's first half. Steel shipments to outside customers increased 5% to 10,597,000 tons in the first half of 2008, compared with 10,119,000 tons in last year's first half.

Nucor said that the increases in sales and net earnings are also attributable to the significant acquisitions made by Nucor in the last 18 months, specifically, the acquisition of Harris Steel Group, Inc in March 2007 and The David J. Joseph Company in February 2008. In addition, Nucor has used these two companies as platforms for additional acquisitions to grow the rebar fabrication and scrap businesses.

Steel majors dislike steel futures ideas

Purchasing.com reported that the CEOs of the two huge steel companies do not support the plan by the New York Mercantile Exchange to launch steel futures trading this year.

Mr Dan DiMicco chairman, president & CEO of Nucor Corp told a recent steel industry conference that futures trading was phony baloney and could encouraged unethical and illegal activity. He also has opposed the embryonic steel trading ongoing at the London Metal Exchange.

Mr DiMicco in the Reuters report said that “It is a drive by people like those on Wall Street who repackage and repackage subprime loans and basically destroy all the other good loans out there. Volatility increases with the futures markets people try to make money off of you instead of working with you. The rest of it is phony baloney.”

Mr LN Mittal chairman of ArcelorMittal told the Steel Success Strategies conference that “He sees no positive impact from a move that would only benefit traders.”

He also has opposed LME steel futures trading, which began in April. He said that “It is more for the benefits of the traders and not in the interest of the customers. When you look at price volatility, it is not reduced whether the particular commodity is in the futures or not.”

Mr Mittal said that “futures are not the solution. He repeated his often quoted view that trading has no positive impact. I don't know if trading is negative, but I am not seeing a positive impact on any product” that already is in a futures market. We have seen severe volatility in commodity pricing in spite of them being in the futures market. And 95% of the trading is done by the traders and not the companies involved.”

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.

New option for Kremikovtzi

Focus News Agency Sofia quoted Mr Petar Dimitrov minister of economy and energy as saying that a new option for Kremikovtzi steel mill has come up.

The ministers said that “The bond holders in the steel mill have proposed that Kremikovtzi not shift to the phase of declaring insolvency and its debts be transformed into property and the mill be healed and sold afterward.”

The minister noted that “The bond holders have expressed their willingness to cover the steel mill’s financing until its healing. So far the talks in this direction are in an initial stage because of the difficult way to consolidate the bond holders.”

PSI get additional contract from ArcelorMittal Canada

PSI has been awarded additional important contract by the ArcelorMittal Group Production management solution for the Canadian steel producer Dofasco.

PSI has been charged by the Canadian Dofasco Inc with the delivery of a complete Manufacturing Execution System for all production areas from hot rolling to finishing at the site at Hamilton in Ontario. Dofasco will receive a fully integrated solution for the entire process from the management level to production.

The new production management system includes the functional areas Production Execution System and Advanced Line Sequencing of the PSImetals vertical industry solution. Start of operations for the solution is scheduled for the first half of 2010.

PSImetals was selected by Dofasco to replace a large component of the legacy manufacturing systems. The scope covers hot band inventory to final finishing operations in order to simplify the business processes.

With the Dofasco MES contract, PSI has obtained an important follow up contract from a leading international company in the steel industry. Only last year did Dofasco decide in favor of a logistics system on the basis of PSImetals.

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.”

Technip wins Nigerian turnkey contract

Reuters reported that Technip had been awarded a lump sum turnkey contract worth some EUR 75 million (USD 119.3 million) by Nigerian Agip Exploration Ltd for the development of the OYO oil field.

This field is located off the coast of Nigeria in Block OML 120/121, at water depths reaching 410 meters.

An offshore installation is scheduled for the summer of 2009.

Alcoa win Global Innovation Award for Technology

Alcoa announced that it is the recipient of a Global Innovation Award from Nissan Motor Company for its proprietary vacuum die casting process and new, advanced alloys used on the GT R, Nissan’s new flagship, high performance sports sedan. The award was presented at the Nissan Global Supplier Awards ceremony held recently in Tokyo.

The GT R features aluminum inner-door and rear-seat structures made from Alcoa’s AVDC process. The inner door, which is the largest vacuum die casting in the auto industry, and the rear seat structures offer weight savings up to 35% over steel designs. The components were produced at Alcoa’s Soest in Germany plant.

Alcoa’s AVDC process provides structural engineers with the ability to build in critical reinforcing ribs where enhanced strength is required and to design in very specific details to help consolidate parts and streamline assembly.

Mr Kevin Kramer president of Alcoa Wheel and Transportation Products said that “We are honored that Alcoa’s vacuum die casting process has been recognized by Nissan for technical innovation. The blending of this manufacturing process with advanced alloys enabled us to meet Nissan’s performance requirements, particularly strength and deformation characteristics, while still keeping a high-performance body made of lightweight materials.”

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.

Reliance Steel announces public offering

Reliance Steel & Aluminum Co announced that it intends to offer 6,750,000 shares of its common stock in a registered public offering. Reliance intends to use the net proceeds from this offering, together with funds drawn under its existing revolving credit facility and borrowings under a proposed USD 250 million unsecured senior term loan facility, to fund the consideration for its previously announced proposed acquisition of PNA Group Holding Corporation as well as the related repayment or refinancing of PNA's outstanding indebtedness.

JP Morgan Securities Inc, UBS Investment Bank and Banc of America Securities LLC will act as joint book running managers for the offering. In addition, Citi, KeyBanc Capital Markets, Wachovia Securities and Wells Fargo Securities will act as co-managers of the offering.

The underwriters are expected to be granted an option to purchase up to 1,012,500 additional shares of common stock from Reliance to cover over allotments, if any.

Nucor-Yamato Steel raises wide flange beam prices

Nucor said its Nucor-Yamato JV will increase net transaction price on wide flange beam for August shipments, by about USD 72 per tonne.

Nucor will also raise its raw material surcharge by USD 488 per tonne for August deliveries, a USD 72 per tonne higher than that in the previous month. Meanwhile, the company will keep its based price level unchanged in July.

Light walled rectangular pipe and tube from China, Korea and Mexico injure US industry – US ITC

The United States International Trade Commission determined that a US industry is materially injured by reason of imports of light walled rectangular pipe and tube from China that are the US Department of Commerce has determined are subsidized and imports of those products from China, Korea and Mexico that the U.S. Department of Commerce has determined are sold in the United States at less than fair value.

As a result of the Commission's affirmative determinations, the Department of Commerce will issue a countervailing duty order on imports of these products from China and antidumping duty orders on imports of these products from China, Korea and Mexico.

The Commerce Department previously made affirmative critical circumstances determinations with regard to certain imports of this product from China. Therefore, the Commissioners who made an affirmative injury determination are required to find whether these imports are likely to undermine seriously the remedial effect of the countervailing duty and antidumping duty orders Commerce will issue. All five participating Commissioners made negative findings with regard to critical circumstances in this investigation. As a result, the countervailing duty and antidumping duty orders concerning these imports will not apply to goods that entered the United States from China prior to January 30th 2008, the date of the Department of Commerce's affirmative preliminary determination.

The Commission's public report Light Walled Rectangular Pipe and Tube form China, Korea, and Mexico will contain the views of the Commission and information developed during the investigations. The product covered by these investigations is certain welded carbon quality light walled steel pipe and tube of rectangular including square cross section, having a wall thickness of less than 4 mm. The subject merchandise is provided for in subheading 7306.61 of the Harmonized Tariff Schedule of the United States.

Vallourec & Sumitomo places orders for the construction of its blast furnace plant

Vallourec & Sumitomo Tubos do Brasil Ltda, the seamless pipe joint venture of Vallourec and Sumitomo Metals announced that they placed an rders of plant and equipment for the greenfield project at Jeceaba in Minas Gerais of Brazil. The centerpieces of the hot metal base of this plant will be two modern blast furnaces seized at 4.8 m hearth diameter each, they will jointly deliver 600,000 tonnes of hot metal per year to the steelmaking shop.

Vallourec & Sumitomo awarded the contract for the construction of these blast furnaces and important sub plants to a consortium of the Paul Wurth Group led by Paul Wurth do Brasil Ltda, Belo Horizonte, MG. The order contains: the blast furnaces’ proper with cooling system, refractories and the Single Bell Pressure Top charging system, the stockhouse, cast houses with tapping equipment, hot blast stoves plants, gas cleaning systems as well as slag granulation and dewatering facilities. Stockhouse, blast furnace tops and the casthouse areas are provided with pollution reducing de-dusting and filtering systems. Electric equipment, instrumentation and automation for all mentioned systems are part of the order to the Paul Wurth Group. Further, the application of pulverized coal injection technology is foreseen.

Paul Wurth will provide advisory services for erection of the plants and perform supervision of commissioning of all production units under its supply.

A demanding overall project schedule foresees both blast furnaces to be commissioned by early 2010.

East Asia produces nearly 26 million tons steel products in 2007

According to the South East Asia Iron & Steel Institute, Southeast Asia produced 25.87 million tonnes of steel products in 2007.

Steel imports from the area totaled 27.58 million tonnes and the exports were 9.11 million tonnes.

The apparent steel consumption was 44.34 million tonnes in the previous year and is expected to reach 47.7 million tonnes in 2008. Then the steel import will be higher than its own production. South East Asia has been a typical steel import area.

(Sourced from YIEH.com)

GCC to invest about USD 200 billion to boost energy output

Gulf News reported that Gulf Cooperation Council countries will be investing USD 160 billion to USD 200 billion to develop 14 to 20 energy projects.

Dr Abdullah Al Amiri chairman of the Emirates Energy Award told Gulf News that this amount would be invested in the next 10 to 12 years to meet the increase in the Gulf energy consumption. He said most of the investment in UAE would be for erecting utility projects like power and district cooling plants, to meet the demands in energy consumption, especially in the construction business.

Dr Al Amiri said that currently, the consumption in the UAE is growing at an average rate of 10 % annually, while some emirates like Dubai will probably reach growth of 19 % this year, adding that this will continue to reach 100 % in five years, doubling the country's consumption.

He said that the GCC countries have overcome the fears associated with any predictable decline of energy funds following the US economic recession, or a fall in oil prices. The high amount of liquidity injected into the region will secure the market against any slump. The foreign reserves available in the market, estimated at USD 455 billion in 2008, up from USD 365 billion in 2007, will further defend the market against any fall.

Dr Al Amiri said that solar energy projects are picking up speed and have potential in the UAE. However, investments in the alternative energy sector are still less. The initial cost is still expensive and we are relying on outside technology. The countries in the region are still not investing a lot in alternative energy. He added that investors, especially governments, back down when they find that the initial costs in alternative energy projects are high.

Mr Richard Banks, director of Middle East Euromoney Conferences and partner of ADIPEC said that the investments in the energy sector should be focused on renewable sources. Initiatives such as Masdar show how this is possible. He added that GCC should perhaps focus on using renewable resources to replace its consumption of its own hydrocarbon resources and free them up for export or downstream processing rather than using them for fuel or electricity generation.

According to the report, following the positive outlook on initial results and successful experiments, the GCC countries are prepared to safely invest in the energy sector as there is an increasing global trend to raise investment to cover the USD 40 billion required in the petrochemical sector by 2010. GCC petrochemical production contributes 7 % to the world's total production.

Dophin Energy to fence pipeline in UAE

It is reported as Dolphin Energy work is about to begin to fence key sections of its Al Ain to Fujairah Gas Pipeline in the UAE.

The contract for USD 19.1 million has been awarded to Al Husam General Contracting Establishment of Abu Dhabi, who will erect fencing along more than 100 kilometers of the 184 kilometers pipeline.

This program has been designed to improve security and to ensure public safety.

Turkey reaches its 2008 export target with USD 125 billion

Mr Kursad Tuzmen trade minister of Turkey' told the Anatolian Agency said that Turkey has achieved its export target within 12 months by reaching USD 125 billion.

Mr Tuzmen in an interview with Anatolian Agency said that exports of industrial products amounted to $64 billion in the first six months of 2008 and the highest rise was seen in exports from the iron steel sector with 69%.

He added that exports from the agriculture sector grew by 28% as the industrial sector rose by 36.6% and the mining sector climbed by 35.7% between January 1 and July 15th 2008

Malaysia Mining to build USD 2 billion coal power plant in UAE

Reuters reported that Malaysia Mining Corporation signed a deal worth up to USD 2 billion to build a coal fired power station in the United Arab Emirates.

According to the report, the plant would be operated by the Malaysian firm for 20 years and would be built over 40 months.

As per the report, part of the profit would go to the government of Ajman during MMC's 20 years management of the 1,000 MW plant. MMC will finance the construction of the plant.

BHEL bags INR 160 crore contracts from UAE Company

It is reported that Bharat Heavy Electricals bagged an export contract worth INR 160 crore from International Energy Resources, UAE for 2 gas turbine generating units of 42 MW each from the United Arab Emirates. These units will be mounted on barges for mobile power plants and are planned to be used in different locations.

As per report, this is the company second breakthrough in the UAE and comes close to similar order for 2 gas turbine generating units of 42 MW, each received from Al Ghail Power LLC, a company wholly owned by Ras Al Khaimah Investment Authority, Government of Ras Al Khaimah one of the 7 Emirates of the UAE.

Danube to invest AED 50 million by 2009

Danube Building Materials announced its plans to invest AED 50 million towards aluminum and glass manufacturing by 2009.

Danube said that the move is in line with the extensive growth witnessed in the aluminum market, with recent studies predicting that aluminum production in the UAE will cross 2.5 million tonnes by 2010. In addition, the investment aims to capitalize on the steadily rising price of aluminum, which rose by 23 % in the Q1 of 2008 in Dubai compared to the same period last year.

Mr Rizwan Sajan chairman of Danube Building Materials said that "Since we started our aluminum and glass division in April 2007, we have supplied high quality building materials to large and premium projects in the UAE, Oman, Bahrain and Qatar. In our analysis of the present situation, we are confident that our investment in this market will result in more business prospects for us, which will further strengthen our position in the regional market."

He added that Danube's aim is to focus on supplying the best products in response to the high demand created by the construction industry, whilst also offering customers real value for money.

EAC recommends adjustment in power tariff slabs

It is reported that Pakistan’s Economic Advisory Council has proposed reorganization of electricity tariff slabs by enhancing the lifeline category from 50 to 100 units and adjusting the remaining slabs.

In budgetary recommendations, which the Federal government is implementing, the EAC proposed that the slab for lifeline users of 50 units, who are completely protected, should be enhanced to 100 units, while users of up to 300 units should be given an adequate subsidy.

The EAC further suggests that for the last slab or users consuming more than 300 units, they should be charged market rates or overcharged for cross subsidization, reveals an EAC document available with The News.

The Ministry of Water & Power on March 1st, 2008 notified an increase of 10 % in electricity tariff for domestic users and 6 % each for commercial and industrial consumers, whereas lifeline electric power consumers, using up to 50 units per month, would be exempted from the hike in power tariff. The document said that the estimated impact for rationalizing the electricity slabs would be PKR 39 billion and it will lead to fiscal consolidation, as the country is facing looming fiscal and external deficits.

Mr Ismail Qureshi secretary Water & Power, confirming the EAC proposals said that the proposals after thorough examination would be forwarded to the cabinet for approval.

The announcement for new electricity tariff is expected during the month of July while the government can also delay the announcement as increasing electricity tariff is political one.

PSAI interested in handling captive cargo

Business Recorder reported that while Islamabad has attached a transshipment based geo strategic significance to Gwadar Port, its foreign operator, Port of Singapore Authority International seems more interested in handling the captive cargo than becoming a regional trade hub.

A three year Performance and Activities Report 2004-07 issued by the ministry of ports and shipping during the rule of Pakistan Muslim League-Q said that "Considering the geo economic imperative of the regional changes, the Ports' Master Plan studies consider an alternate to the Persian Gulf Ports to capture the transit trade of the Central Asian Republics as well as the transshipment trade of the region.”

On the contrary, sources said that the management of Port of Singapore Authority International, the concessionaire operator of Gwadar Port, was following a plan mainly focused on handling the national cargo instead of transshipment business.

Emaar net in Q2 up despite global slowdown

Reuters reported that Emaar Properties returned to profit growth in the Q2 but the largest publicly traded Arab developer said exposure to a global slowdown and inflation had offset strong property sales at home.

Emaar in a statement said that its net income in the three months to June 30th advanced 6.5% to AED 1.66 billion, missing three of four analysts’ forecasts in a Reuters net profit survey last month. It said that its revenues in the quarter were almost steady at AED 4.24 billion while gross profit gained 23.6 % to AED 1.922 billion.

The developer, with projects in 36 countries, owns John Laing Homes in the US, where new home construction is sliding as subprime crisis continued to bite.

Mr Mohamed Alabbar chairman of Emaar said that globally, the first half of 2008 was marked by recessionary trends and mounting inflation. He said that it generates most of its income from its home market, Dubai, where the economy is surging on a near seven fold increase in oil prices during the last six years that has spurred investment in the Gulf.

Chinese crude steel output in June up by 10% YoY

According to data released by China's National Bureau of Statistics, the country's crude steel output in June gains 10% YoY to 46.94 million tonnes. The figure for the first half of the year totals 263.2 million tonnes up by 9.6% YoY.

According to the statistics, pig iron production in June increased by 6.9% YoY to 43.39 million tonnes and in the first six months it scores 246.4 million tonnes up by 7.9%YoY.

The data also shows that the output of crude iron ore increased by 27% YoY from last June to 81.56 million tonnes while the figure for January to June period is 391.4 million tonnes up by 26% YoY.

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.

Canada continues AD on steel pipe nipples and adaptor fittings from China

It is reported that the Canadian International Trade Tribunal July 16th 2008 issued an order following the expiry review of its finding made on July 16th 2003, as amended on June 8th 2007, concerning carbon steel pipe nipples and adaptor fittings, in nominal diameters up to and including 6 inches or the metric equivalents, originating in or exported from the People's Republic of China.

The Tribunal found that the dumping of carbon steel pipe nipples and adaptor fittings from China was likely to result in injury or retardation. The Canada Border Services Agency will therefore continue to impose anti-dumping duties on these products.

The Tribunal is an independent quasi judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

Chinese investors eying shares of PT Krakatau - Report

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 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.

Tangshan sees H1 net profit up by 45% YoY to 55% YoY

XFN-Asia reported that Tangshan Iron & Steel Co Ltd net profit for H1 2008 is expected to rise by 45% YoY to 55% YoY because of higher profitability of its steel products and savings on raw material costs.

Tangshan Iron & Steel Co Ltd had net profit of CNY 1.16 billion during the same period last year with earnings per share of CNY 0.51.

Hengyang produced 500,000 tonnes of steel tubes in H1

In H1 of 2008, Hengyang totally produced 500,000 tonnes of steel tubes and obtained a sales income of CNY 4.17billion. The export quantity of high technology and high value added products was 99,000 tonnes taking 43% in total export volume.

In recent years, Henggang optimized the resources investment direction, optimized the export channels, enhanced the market shares of high grade and high value-added products, has made new progress. In the seamless steel pipe industry, Henggang heads the list, it becomes the large enterprise to create foreign exchange in Hunan Hengyang, even in the whole Hunan province region.

In 2007, Hengyang Steel produced over 1 million tonnes of steel pipes, up by 19% YoY and sales income was CNY6.64billion up by 30% YoY. Tubes export volume was 460,000 tonnes with a value of USD450million.

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.

Linggang gets API certification

It is reported that Lingyuan Iron and Steel Group’s steel for oil pipeline has passed the certification from the American Petroleum Institute and got API production permit.

It would help Lingyuan Iron and Steel Group to access to the international market and becomes one of the more than 800 enterprises that have gotten the API certification.

Chinese construction steel export price stable

It is reported that Chinese domestic construction steel market is quiet this week and export prices are also largely unchanged.

In Shanghai market prices for HRB335 20mm rebar is being quoted at CNY 5250 to CNY 5260 per tonne, HRB400 grade material is being quoted at CNY 5440 per tonne to CNY 5490 per tonne down CNY 10 per tonne and CNY 40 per tonne to CNY 60 per tonne from last Thursday. Commercial wire rod is at CNY 5520 per tonne that for hi-speed material remains at CNY 5800 per tonne to CNY 5820 per tonne, down by CNY 40 per tonne to CNY 50 per tonne WoW.

Taking Shanghai price for HRB335 20mm rebar as benchmark, there is set to be another round of increase following the correction as long as it is above CNY 4900 per tonne. But such adjustment is expected to sustain for a period

Export offers for rebar are about USD 1080 per tonne to USD 1130 per tonne FOB and some producers are quoting at about USD 1120 per tonne to USD 1150 per tonne FOB. Offers for BS grade rebar to Middle East are enjoying higher level of USD 1250 per tonne to USD 1330 per tonne CFR

Steel makers seem to take different attitude on construction steel exports. Some choose to control allocation for overseas market for fear of export policy change, while some strive to export as many as possible.

(Sourced from MySteel.net)

Xinyu export of high speed wire rod in H1 up by 312% YoY

It is reported that the high speed wire rod export volume of Xinyu Iron and Steel Company continues to increase and the export region and export varieties are also constantly expanding.

In the first half year of 2008, the company totally exported 165,000 tonnes of high speed wire rod up by 312.5% YoY. The products are exported to Southeast Asia, Middle East, South America, Africa, Europe and other countries.

In recent years, Xinyu Steel implemented two terms of technical transformation projects, the technology equipments and the products quality got great improvement. In 2007, its Yuanhe brand high quality carbon hot rolled wire rod got Chinese name brand enhanced the international competitiveness.

According to the steel export policy adjustment, Xinyu Iron and Steel Company further expanded the export on alloy products actively keep the Chinese name brand.

Dazhou sales revenue in 5 months cross CNY 4.11 billion

It is reported that Sichuan Dazhou Iron & Steel Group has achieved CNY 4.113 billion of sales revenue and CNY 279 million of pre tax profit in the first five months of this year up by 67.79% YoY and 71.02% YoY respectively.

As per report, the under construction 4.6 kilometers special train line would reduce the steel maker's annual traffic volume by 8 million tonnes and save transport costs of CNY 60 million and costs CNY 220 million.

Dazhou Steel was established in 1958, and now one of the top 500 of China's manufacturing industry and has formed annual production capacity of 2.5 million tonnes of iron, crude steel and finished steel respectively, 1 million tonnes of coke, 100,000 tonnes of coal chemical products and 2 million meters of composite steel tube.

Pig iron market appears weak in Yunnan province

It is reported that pig iron market in Yunnan province appears quiet in thin trading upon weak demand in recent days. Producers are now in downswing correction. Steel making pig iron is offered at CNY 4300 per tonne to CNY 4320 per tonne in Kunming and CNY 4250 per tonne to CNY 4270 per tonne in Qujin district. Casting pig iron prevails at CNY 4450 per tonne to CNY 4550 per tonne remaining unchanged, but the deals are almost none because of the insufficient output.

Lately weakening steel market results in falling price and slack business and directly affects steel producers who feel reluctant to purchase pig iron, resulting in the yielded resource unable to be transferred smoothly to the market and still staying at iron-making plants, and then falling in prices.

Some small pig-making plants have had to cut or suspend production in front of high material prices. They don't expect the situation will change in short term as the light period for steel products is still going on.

(Sourced from MySteel.net)

Update on Chinese billet export import in H1

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 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 suggested to hold the subject meeting on discussing how to stabilized the construction market in south west China.

(Sourced from MySteel.net)

Chinese 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.

Chinese 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.

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 August 29th.

Chalieco to build an alumina plant in Vietnam

Vietnam government declared that Chalieco had signed cooperation agreement with Vinacomin, the largest nickel producer in Vietnam to jointly invest in building an alumina plant in Central Highlands, Vietnam. It is learned that the annual production of the alumina project is expected to reach 600,000 tonnes.

The cooperation consists of three projects, including the design of alumina plant, equipment purchases and engineering construction. Chalieco planned to finish the alumina plant within two years.

The alumina resources reservation is expected to reach 5.8 billion tonnes to 6.3 billion tonnes, the third largest after Guinea and Australia. The Vietnamese government expressed that the major project of alumina and alumina refining plant with will be finished before 2025 to develop extensive and great alumina resources in Central Highlands of Vietnam. Previously, the Vietnamese government had announced to have 40% shares of bauxite and alumina project of Nhan Co managed by Alcoa Inc of US, which located at Dak Nong.

Chalieco is a subsidiary of Chalco, the most powerful and the only international engineering cooperation that has independent intellectual property rights and technology in Chinese aluminum industry.

TMK makes 1st shipment of pipes to Pochinki-Gryazovets pipeline

Russian pipe major TMK announced that it began shipments of K60 grade large diameter ERW 1420 mm pipes with 15.7mm to 18.7mm wall thickness and designed for operating pressures of up to 75 atmospheres. The pipes will be used in the construction of Gazprom’s Pochinki-Gryazovets pipeline.

The pipes are supplied with external anti-corrosive coating, significantly extending their service life in aggressive environments and arctic conditions, and are produced by TMK’s Volzhsky Pipe Plant. Successful testing evidenced the pipes’ high performance properties and conformity to Gazprom’s technical specifications.

By September 2008, TMK will have supplied 40,000 tonnes of large diameter pipes in accordance with Gazprom’s requirements for the Pochinki-Gryazovets project.

The Pochinki-Gryazovets pipeline will provide environmentally safe and reliable gas supplies to the central regions of Russia and will be used to transport gas from the Yamal-Nenets Autonomous District to the Nord Stream pipeline.

Founded in 2001, TMK is the largest pipe producer in Russia and one of the three global market leaders. In 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companies in more than 60 countries. TMK production facilities are located in Russia, the United States, Romania and Kazakhstan.
1. Volzhsky Pipe Plant
2. Seversky Tube Works
3. Taganrog Metallurgical Works
4. Sinarsky Pipe Plant
5. TMK IPSCO
6. TMK-Resita SA
7. TMK-Artrom SA
8. TMK-Kaztrubprom
9. TMK Oilfield Services
10. TMK-Premium Service

Update on Mechel Q1 2008 financial results

Mechel in recent released announced its Q1 2008 result

(In USD thousand)

1. Q1 2007 results have been recalculated to reflect the separate reporting for the power segment.
2. EBITDA margin is calculated as a percentage of consolidated revenues of the segment, including inter segment sales.

Q2 Update on Evraz vanadium business

Evraz in recent released announced results for vanadium operations as under

The results for vanadium business are as under

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

Mechel reports its operational results for the 6 months of 2008

Mechel OAO one of the leading Russian mining and metals companies, announced its operational results for the first six months of 2008.

(In thousand tonnes)

Mr Vladimir Polin CEO of Mechel Management OOO said “In the first half of this year, Mechel continued to demonstrate positive growth dynamics in the production and sales of its core business segments’ products, both through integration of its new subsidiaries and strong performance of its existing ones. The acquisition of Yakutugol by Mechel, cost structure optimization, and modification of the mining operation’s plan to increase coking coal production resulted in the growth of coking coal concentrate output and significantly changed this segment’s sales structure and economics. During the first half, we also continued the implementation of Southern Urals Nickel Plant’s technical re-equipment program, as well as increased production of nickel, which is an important component in manufacturing stainless steel rolled products.”

He said that “In our steel segment, Mechel continued to modernize its subsidiaries in order to reduce cost and change the mix of its commercial rolled products to increase the output and sales of its downstream products to include higher added value products, consisting mainly of hardware and long products, at the expense of lower semi finished product sales. With the integration of the Tikhvin Ferroalloy Plant acquired by Mechel in April 2008, we started production of our own ferrochrome, thus reducing our stainless steel production costs. In our power segment, Mechel increased its electric power generation volumes, based primarily on the integration of the Southern Kuzbass Power Plant, which was acquired by Mechel in 2007, and subsequent modernization of its generating facilities.”

Libala complete purchase of Alphasteel

Mr Chris Morris and Mr Mark Fry of Begbies Traynor, a leading business rescue, recovery & restructuring specialist, as the joint administrators of Alphasteel Ltd, announce the completion of the sale of the Alphasteel plant and certain other of its assets to Libala Ltd a company affiliated to Mirinvest which is controlled by Vadim Varshavsky and is an investment vehicle with interests in a number of steelmaking plants.

The deal was completed on July 14th 2008, for a consideration of approximately GBP 57 million. At this early stage it is not possible to comment in detail on future plans for the Alphasteel plant; Libala will make a further announcement on this as and when it is appropriate to do so.

Mr Mark Fry joint administrator said that “We are pleased to have completed this deal with Libala, which represents a very positive outcome for Alphasteel, and should secure the future of the plant.”

UC RUSAL announces H1 2008 results

UC RUSAL, the world’s largest aluminum and alumina producer, is pleased to announce its production and summary financial results for the first half of 2008.

Highlights
1. Bauxite mining reached 9,044,615 tonnes up by 6.5% YoY compared to the first half of 2007
2. Alumina production rose by 1.4% YoY amounting to 5,659,921 tonnes
3. Aluminum production increased by 7.8% YoY to 2,196,262 tonnes
4. Output of high value-added casthouse products increased by 13.8% YoY and its share of total aluminum production reached 52
5. Foil production increased by 11% YoY
6. Total revenues grew by 14% YoY to USD 8 billion compared to the first half of 2007
7. Revenues from sales on the Russian market increased by 16.2% YoY to USD 1.8 billion
8. Revenues from sales outside Russia rose by 13% YoY to USD 6.2 billion

In tonnes

Mr Alexander Bulygin CEO UC RUSAL said “We delivered strong growth across the entire range of our products in the first six months of 2008. Such performance is a result of our new plants reaching full capacity and the continuing successful environmental upgrade program at existing and newly acquired plants, which is the key element of our sustainable development strategy. The launch of new potrooms at the Irkutsk Aluminum Smelter, growing production at the Alscon Aluminum Smelter in Nigeria, active construction of the Taishet and Boguchansk Aluminum Smelters, as well as projects to expand our energy base will enable us to further increase the company’s production output and strengthen our competitive advantages to capitalize on the favorable conditions in the global aluminum market.”

He said that “Our success and competitiveness in the aluminum sector provides a strong platform for UC RUSAL’s further development as a global metals and mining corporation. In April, we completed the acquisition of a blocking stake in MMC Norilsk Nickel, which marked a significant step towards achieving our strategic goal.”

Russian to supply natural gas to Moldova from August

RIA Novosti reported that Russian energy giant Gazprom will supply natural gas to Moldova at USD 253 per 1,000 cubic meter from August.

Mr Igor Dodon first deputy PM of Moldova who is also the economics and trade minister said that "In the opinion of European analysts, in connection with increasing prices for energy carriers from the new year, the natural gas price could reach the level of not less than EUR 400, but the contract concluded by Moldova and Gazprom will make it possible not to raise the tariff in Moldova above the contract-stipulated level."

He added that the new price would not change until summer 2009.

In 2006, Moldova and Gazprom agreed that the price Moldovan consumers paid for Russian gas would gradually rise to an average European level.

Gazprom could sue Belarus over unpaid gas bill

RIA Novosti reported that Russian energy giant Gazprom reserves the right to take Belarus to court if the country fails to pay in full for Russian natural gas supplies.

Mr Alexander Ananenkov deputy head of Gazprom's Management Committee, met with Belarusian pipeline operator Beltransgaz general director Mr Vladimir Mayorov to discuss payments for gas supplies and transit in 2008-2011. Gazprom did not specify the size of Belarus's debt.

In December 2006, Gazprom and Beltransgaz signed a contract on gas supplies and transit for 2007-2011. The document envisioned a price of USD 100 per 1,000 cubic meters for 2007 and a pricing formula for 2008. According to the formula, Russia was supposed to sell gas to Belarus at USD 119 per 1,000 cubic meters in the first quarter of 2008, but raise the rate to USD 128 in the second quarter of this year.

Recently, Russian media cited government and Gazprom sources as saying that Belarus had been paying for gas supplies in the second quarter at the same rate as in the first quarter. As a result, the sources said Belarus owes Russia at least USD 45 million.

RZD to build container terminal in North Korean port

Interfax reported that Russian Railways and the North Korean government have set up a joint venture to build a container terminal at the North Korean port of Rajin and modernize a rail line running from Rajin. About EUR 140 million is to be put into building the terminal and modernizing the Tumangang-Rajin railway

RZD said the venture has made it possible to formalize property rights to facilities at the Rajin port, including quays and is registered in North Korea's Rason Special Economic Zone for a period of 49 years.

The Russian partner in the venture, RZD subsidiary RZD Trading House, owns 70% and the North Korean government 30% of its capital.

The container terminal to be built by the venture would be able to handle up to 400,000 TEU a year.

On April 24, RZD President Mr Vladimir Yakunin and North Korean Railways Minister Mr Kim Yong-sam signed an agreement setting principles for a pilot project to modernize the section of the Trans-Korean Railway between the Russian border and Rajin and for building a container terminal at the Rajin port. Setting up a joint venture was part of what the agreement prescribed.

UC RUSAL continues environmental upgrade of its smelters

UC RUSAL, the world’s largest aluminum and alumina producer, has announced the commissioning of a dry scrubber at its Volgograd Aluminum Smelter.

The installation, which cost the company over USD 12 million is the key element of the modernization program on this production site and is able to treat 99.5% of the total emissions level.

According to the release, the hourly pass through capacity of the new dry gas scrubber is over 250,000 square meters of gas and dust which are emitted by the reduction cells. The new unit manufactured by a Canadian contractor ensures that the minimal amount of noxious emissions go out of the chimneys or roof louvers and will replace 15 old foam scrubbers at the smelter. The new technology, which is widely used worldwide, is focused on one of the qualities of alumina, the key raw material for the smelting operations, allowing to adsorb fluorides and tarry substance. Almost 100% of the pollutants are contained and the fluorinated alumina is returned back to the process.

The release added that as part of this modernization program at VgAZ which was designed to enhance its environmental performance, all the cells have been converted to dry anodes, new filters were installed. Together with the recent commissioning of the new solid wastes storage, there are plans to redesign the jet ventilation by 2009.

The reduction of the environmental impact is a key priority for UC RUSAL. Since 2000, the production sites, which today are part of the UC RUSAL Group, have spent over USD 1 billion on their environmental initiatives. In 2007-2013, UC RUSAL will invest approximately USD 1.4 billion in a comprehensive environmental improvement program, which has been presented by the company to its aluminum smelters with the view of bringing down significantly the emissions level and provide for increased production efficiency. The program will cover the two world’s largest aluminum smelters in Bratsk and Krasnoyarsk and also smaller production facilities of the company located in Irkutsk, Novokuznetsk, Bogoslovsk and Uralsk where the company’s engineers are currently converting the process at some production areas to the pre-bake anode technology. As a result of these efforts by 2015, the company intends to reduce the emissions by 35%.

In 2007 UC RUSAL signed a memorandum of understanding with the United Nations Development Program to step up the joint efforts aimed at a greenhouse gas emissions reduction, thus becoming the first Russian company to join the UNDP for the purpose of creating a global network of the projects focused to pursue one goal which is to prevent the threat of the global warming.

US DOC puts AD duties on Belgian stainless steel plates

It is reported that the Department of Commerce has issued a preliminary determination that imports of stainless steel plate in coil from Belgium have been sold in the US at less than fair value from producers receiving subsidies from the home nation government.

A preliminary dumping margin of 12.68% has been assigned to Ugine & ALZ. A countervailing duty on the subsidy may not be assigned, though, since the preliminary subsidy rate was just of 0.48%.

The alleged trade violations were based on reviews of imports in 2006 and 2007. Commerce will publish final results in October for plate that is 10 inches or more wide and 0.19 in or more thick, annealed or otherwise heat treated, and pickled or otherwise descaled.

The initial trade complaint was filed against Ugine and ALZ by producers Allegheny Ludlum and North American Stainless and the United Auto Workers, Zanesville Armco Independent Organization and the United Steelworkers unions.

Export excellence award for IMFA

India 's largest producer of ferroalloys Indian Metals & Ferro Alloys Ltd has secured the second Runner Up position in the Minerals & Metals Sector under Large Exporters' Category of the D&B–ECGC Indian Exporters' Excellence Awards which were announced recently in Mumbai.

The D&B–ECGC Indian Exporters' Excellence Awards were conceptualized keeping in mind the growing contribution of exports to the emerging Indian economy. The five parameters considered in ranking companies included total export revenue, growth of export revenue, export revenue contribution to total turnover, net profit and growth in turnover.

IMFA is India’s largest fully integrated producer of ferroalloys with 157 MVA installed furnace capacity including a 27 MVA furnace put up by an associate company which operates under a conversion contract with IMFA backed up by a 108 MW captive power plant and chrome ore mines.

Dun & Bradstreet India is a leading provider of global business information and knowledge while the Export Credit Guarantee Corporation of India Ltd is an organization established by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.

Dongbei Special Steel develops Cr6 CR roller steel

It is reported that Dongbei Special Steel Group has successfully exploited CR6 CR roller steel. The steel variety is a high technology product with special material and complicated manufacture.

In the current domestic market, the CR roller steels are main be of Cr2, Cr3 and Cr5 series, but with the rapid development of automobile industry, the requirement on CR sheet continues to increase, so the continuous development of new roller steel is the common topic for the metallurgical and steel industries.

Since the beginning of 2008, Dongbei Special Steel Group and the domestic famous roller enterprises strengthened the technical cooperation and began to trial produce Cr6 CR roller steel. Now, the company has already started mass production.

Dongbei Special Steel and China to develop new materials for automobiles

Recently, Dongbei Special Steel Group and China FAW Group signed cooperation agreement. The two companies, both of who have national technology centers, will form a work group to develop the utilization of non quenched and tempered steel on auto production, therefore enter the market of new materials for auto production.

FAW will put Dongbei Special Steel as the research and develop and production base of non quenched and tempered steel for autos.

According to the persons in charge, the group will formed the technology centers of the companies, and will divided into five teams which will focus on developing steel for front axe, connecting rod, half-shaft, steering knuckle and turning arm, gear, bolt and so on, and a new material, of low cost, non quenched and tempered to substitute 40Gr.

Norilsk Nickel selects Tenova Pyromet for upgrading nickel slag furnaces

Tenova Pyromet announced that it has been selected by Norilsk Nickel for the upgrade of two of their nickel slag cleaning furnaces located on the Far North behind 69 parallel northerly Siberia.

Tenova Pyromet recently finalized the contract to supply Project Documentation for two Nickel slag cleaning furnaces, including Gas Cleaning Plant documentation for each furnace and set of equipment within the limits of the Project.

Abreast of developments and Tenova Pyromet’s furnace design know how will be utilized in the Project. The diameter and power input of the furnaces will be increased to allow processing of approximately 2,400 tonnes of flash furnace and converter slag per day per furnace. The purpose of the furnaces is to recover nickel, cobalt and copper from the flash furnace and converter slag streams. The furnace power rating will be increased to 30 MVA with a maximum power input of 25 MW achievable depending on process requirements and conditions. Tenova Pyromet will supply the furnace proper, including the hearth cooling system, the steel shell and refractory lining, its MAXICOOL® sidewall copper cooling system, the furnace refractory roof with support structure and its patented Söderberg electrode column.

In addition it will supply the gas cleaning plant, the secondary electrical supply system, the furnace control system, lining management system and PLC, as well as key components of the furnace feed system. Supervision during installation and commissioning is also included for in the contract. Tenova Pyromet is providing projected performance for each furnace and equipment guarantees.

The first furnace is expected to come on line during the last quarter of 2010 and the second furnace during the third quarter of 2011. With projects coming in from across the globe, Tenova Pyromet is taking advantage of its expertise and reputation for projects completed on schedule or early, meeting and exceeding emission control requirements and, above all, the supply of reliable and efficient technology and equipment.

Tenova Pyromet has extensive experience in the design and construction of smelting plants and furnaces, both in South Africa and internationally. It designs and supplies advanced technologies, products and services for the metal and mining industries.

Evraz joins race for Cape Lambert - Reports

As per media reports, Russian billionaire Mr Roman Abramovich is believed to be part of a share raid on Cape Lambert iron ore project run by the exploration and development company of the same name.

Shares in Cape Lambert Iron Ore jumped 8% to 79.5c after it said a Merrill Lynch nominee company had exercised 56 million options for a 14% stake. Cape Lambert refused to quash speculation. When asked about Mr Abramovich's involvement, a spokesman told The Daily Telegraph "I can confirm there some options have been exercised. There has been a significant stake taken by a nominee company, but we would not say who the actual holder of the securities within the nominee company is."

The share grab adds intrigue to an already international flavor to Cape Lambert's short history. Overseas investors have been falling over themselves to throw cash into the project, with Chinese conglomerate China Metallurgical Group Corporation locking in a deal earlier this year worth USD 400 million to acquire the Cape Lambert project. Cape Lambert's proposed mine sale to China Metallurgical has received all necessary approvals from Australian regulators and China's government, with Cape Lambert's shareholders set to vote on the sale on July 28.

The project is located in the Pilbara region of WA and is still in the feasibility stage, with claims the open pit mine could produce 1.5 billion tonnes of magnetite iron ore. The project may produce about 7 million metric tons of ore a year from late 2009.

Harbinger opposing Cleveland Cliffs and Alpha Natural merger

It is reported that Harbinger Capital Partners, largest shareholder in Cleveland-Cliffs Inc with 18% stake, is opposing Cleveland-Cliff's USD 8.06 billion purchase of Alpha Natural Resources Inc.

Harbinger in a filing with the US Securities and Exchange Commission said that buying Alpha is not in the best interest of shareholders. It said “The proposed transaction is not in the best interests of shareholders.”

Harbinger said that it may seek to influence Cliffs's strategy, board structure and operations as a means of enhancing shareholder value.''

Cleveland-Cliffs, North America's largest producer of iron ore, agreed to buy the coal mining company for stock and cash to add reserves of metallurgical coal as demand from steelmakers increases. The offer was 35% higher than Alpha's closing share price the day before the transaction was announced.

Second batch of Chinese coke export quota cut by 75%

Ministry of Commerce announced second batch of coke export allocations for 2008 and 32 qualified coke exporters share a total export volume of 2.39 million tonnes down by 75% from 9.62 million tonnes of first batch of export quota released in the year start.

Official with China Coking Industry Association said "The substantial cut has been well expected. Escalating coke price has already caused great pain at steel mills. It seems that they have been wrestling the first half with iron ore and the second half with coke."

Coke price remains firm despite sharp decrease on export quota, and steelmakers are widely speculating coke export tax hike, according to sources with Hebei Kailuan Group. Previously, the average fob price of coke export has once peaked at USD 690 per tonne.

Latest Customs data shows that coke export has slipped 7.5% in the first half to 7.44 million tonnes. But coke shipment has posted growth of over 24% in the second quarter, 1.34 million tonnes in April 1.66 million tonnes in May and 1.5 million tonnes in June. Beijing has put great weight on reining in excessive export of resources like coke. Therefore, market participants speculate that the authority might raise up the export duty by 5% in near future.

It is reported that the delivery to mill coke price has reached CNY 3000 per tonne on average in Handan, Hebei, CNY 3100 per tonne to CNY 3200 per tonne for most mills in Tangshan. The price of first grade coke even hits CNY 3400 per tonne. Meanwhile, second grade metallurgical coke price goes at CNY 3100 per tonne in Shanghai and leading producers in Anhui and Huaibei are asking CNY 3100 per tonne, and offer price from Shandong prevails at CNY 3000 per tonne to CNY 3100 per tonne.

BHP Mitsubishi Aliance to acquire New Saraji coal project

BHP Billiton announced that BHP Billiton Mitsubishi Alliance has entered into an agreement to acquire 100% of the New Saraji Project from New Hope Corporation Limited for a cash consideration of approximately USD 2.4 billion.

New Saraji is an undeveloped metallurgical coal resource located adjacent to BMA’s Saraji mine near Dysart in Queensland’s prolific Bowen Basin. New Hope’s total Coal Resources estimate for New Saraji is 690 million tonnes.

The purchase comprises Mining Lease Application 70383 and Exploration Prospecting Consent 837 and port user contract entitling the purchaser to 10 million tonnes per annum of capacity at the Abbott Point coal terminal as it is expanded. Completion is subject to certain third party consents and normal government approvals.

Mr Dave Murray president of BHP Billiton Coal said that "This acquisition is consistent with our strategy to accelerate growth in long life, low cost natural resources with a focus on delivering shareholder value. Based on drilling results to date, New Saraji has extensive high quality metallurgical coal resources. Subject to the results of further resource exploration and evaluation program to be undertaken by BMA, New Saraji has the potential to be developed into a large scale, high quality metallurgical coal operation. New Saraji could also potentially deliver significant synergies due to its proximity to BMA’s existing Saraji mine."

BMA is a 50:50 JV between BHP Billiton and Mitsubishi Corporation.

Chinese silicomanganese price increases on power shortages

It is reported that silicomanganese price runs on a high level with mixed offer prices at the moment. Many markets report tight spot resources supply due to tight control over electricity supply which leads to operation suspensions for many smaller mills.

As per report, mainstream offer prices prevails at CNY 13,000 per tonne to CNY 13,500 per tonne for FeMn65Si17, with some offers hitting CNY 14,000 per tonne in less power supply regions, and CNY 10,100 per tonne to CNY 10,500 per tonne for FeMn60Si14.

So far, Central China Grid has started to control power supply in certain regions in Hunan, Hubei and Henan which would affect normal productions for many silicomanganese plants. And several cities in Shanxi etc. also see severe power shortages. Offer prices in these regions are higher than average market prices.

Power supply looks set to become tighter, and the steep input costs coupled with the output disruption will continue affect the price trend for silicomanganese in the future.

(Sourced from MySteel.net)

Australia ship delays increase after iron ore price settlement

Simpson, Spence & Young Ltd said that the number of ships delayed at ports in Western Australia increased a sign that a price accord between iron ore miners and Chinese steelmakers has boosted demand for the raw material.

Simpson, Spence & Young said that vessels are being delayed an average of six days at western Australian ports, the highest so far this year.

The report said that “This would appear to be a result of a revival in Pacific iron ore chartering activity following the agreement of contract prices between Australian miners and Asian steelmakers.”

The report added that the cost of hiring ships that can sail fully loaded through the Panama canal and of carriers the next size up that must go around Chile's Cape Horn are being supported by booming global coal markets.

BHPB bid for Rio - Rio not afraid of radical defense solutions

According to Mr Michael Rawlinson of Liberum Capital, Rio Tinto could employ extreme defence strategies against the takeover bid of BHP Billiton.

Mr Rawlinson said that Rio obviously felt that the AUD 170 billion scrip bid did not adequately value the company. He said that its present public defense plan was education and its disposal program.

He added that if BHP received antitrust clearance for the bid, Rio would pursue other strategies, which could include the many other proposals that it had received.

Mr Batista terms Brazil police move as gigantic mistake

Mr Eike Batista, controlling shareholder of MMX Mineracao e Metalicos SA said that Brazil's Federal Police made a gigantic mistake when it accused the company of gold smuggling and fraudulently winning a railroad concession.

Batista during a conference call with analysts and investors said that the accusations are false and totally unfounded. The concession was a simple award to the company that made the highest bid.

Police on July 11 searched for documents at Batista's Rio de Janeiro home, as well as offices in Rio and in Amapa state. The raid caused shares of Batista's OGX Petroleo E Gas Participacoes SA, MPX Energia SA and MMX to plunge, wiping out BRR 5.22 billion (USD 3.28 billion) in combined market value in one day.

Federal authorities are investigating alleged fraud in the process to grant the 20 year concession to operate the Amapa railway in Brazil's northern Amapa state. The contract was granted to Acara Emprendimentos part of Batista's MMX Mineracao e Metalicos SA, in 2006 for BRR 814,000 and the promise to invest BRR 40 million within two years.

Shanxi will not raise thermal coal prices in H2

Interfax China reported that thermal coal prices in Shanxi Province will not increase in the second half of this year despite supply shortages and soaring prices.

Shanxi Coal Industry Bureau official said that on July 12th, however, industry insiders have said the province may find it difficult to keep prices from rising.

Ispat Industries to bag Jharkhand iron ore mining lease

It is reported that Ispat Industries Limited is poised to get the much awaited iron ore mining lease in Jharkhand. The company is believed to have already received letter of allotment from the government a few days back for a mining lease at Latua in Chaibasa, in West Singhbhum district.

As per report, the mine is estimated to contain reserves of over 100 million tonnes of iron ore with iron content of 64% to 65%. State mining department officials maintained that the company s name has been recommended for allotment of iron ore mines at Latua.

Shanxi increases coal output to ease power coal strain

According to the China Youth Daily Shanxi Province is making great efforts to organize key State owned collieries to expand coal output under the precondition of ensuring safety.

Mr Zhang Baoshun Shanxi's Party secretary said that as a leading coal production province, Shanxi will go all out to ensure power coal supply.

Shanxi's coal output hit more than 330 million tonnes in the first half of this year, up more than 40 million tonnes YoY or an increase of more than 14%. The power coal output reached 181 million tonnes up by 28.915 million tonnes YoY or an increase of 19% and accounted for 55% of the total production of crude coal in the province. Shanxi also achieved coal sales of 278.1702 million tonnes outside the province, up 24.7571 million tonnes YoY, or an increase of 10%.

Daye Iron Mine increases 14.12 million tonnes of ore reserves

It is reported that recently China's Ministry of Land and Resources approved the reconnaissance report and nailed down that Daye iron mine increased 14.12 million tonnes of ore reserves based on the primal 23 million tonnes of magnetite estimated before.

Daye ore mine started its reconnaissance work in March, 2005. After 3 years exploring, primarily estimated its capacity as 23 million tonnes. It established cooperation with scientific research institutions and universities, which gave great technical support to its reconnaissance report.

Ukraine ministry lists 120 mines for privatization

Ukraine’s Coal Industry Ministry announced that it had drafted a list of coal mines ready for privatization later this year as part of the government’s plan to reform the sector.

Mr Ivan Poltavets coal industry minister said the list includes 120 coal mines that are included in 22 different lots that will be offered for sale to foreign and domestic investors.

Dwyka Resources exercises Daguma Coal project option

Thomson Financial reported that Dwyka Resources Ltd exercised its option to acquire all of the issued shares in Asian Coal Resources Ltd.

As per report Dwyka will pay USD 1.25 million to Tomori Enterprises Ltd and issue 17.5 million shares to Tomori at GBP 0.26 a share.

Asian Coal Resources and its Philippine partner MANA Resources Development Corp in which Asian Coal holds 40% stake exercised their options to acquire a 30% stake in Daguma Agro Minerals Inc and Bonanza Energy Resources Inc holders of Daguma and Bonanza coal deposits which constitute the Daguma Coal Project.

The Daguma Coal Project comprises 10 coal blocks spread across 10 square kilometers, which Dwyka considers highly prospective, owing to the medium-calorific-value coal it has.

Logan Resources applies for coal permits south and west of Goldsource Mine

Logan Resources Ltd announced that it has made application for coal permits covering three prospective areas to the south and west of Goldsource Mines Inc's Border coal discovery in eastern Saskatchewan.

In spring of 2008, Goldsource reported results from its discovery, comprised of two diamond drill hole intersections, 1.6 kilometer apart, each of which intersected 27 to 34 meters of coal and 22 to 24 meters of which occurred as a single seam. Coal samples analyzed returned grades between High Volatile Bituminous C and Sub Bituminous A.

The nature of historic coal occurrences hosted by the Mannville Group strongly suggests widespread deposition of coal forming plant material along a broad shoreline during Mannville time. The first two groups of permits for which Logan has applied enclose areas where Upper Cretaceous rocks overlie prospective Mannville Group shoreline rocks and where existing geophysical data support the possibility of significant coal occurrences.

The third permit application encloses an area 500 kilometer to the west, where Mannville Group sedimentary rocks underlie a thin cover of glacial drift proximal to the upper contact with the overlying Colorado Group and where existing geophysical data also support the possibility of a significant coal occurrence.

Logan Resources Ltd is a mineral exploration company that specializes in acquiring, exploring and advancing early-stage Canadian mineral properties.

Sultan Mining to export coal to Switzerland

It is reported that coal producer Sultan Mining and Energy Development Corp would soon start exporting coal to Switzerland after it entered into a coal supply contract with Glencore International AG, one the world's largest suppliers of commodities and raw materials.

According to the reports, documents from the Energy Department show that the contract was signed by Sultan's subsidiary, MG Mining and Energy Corp which has ramped up production in its mine in Bislig, Surigao del Sur. Production has been sustained at over 20,000 tonnes a month despite adverse weather conditions.

Under the terms of the contract, Glencore will buy from MG Mining a total of 90,000 tonnes of steam coal for delivery between August and December this year. Glencore already buys coal from another local company, Semirara Coal Corp.

Glencore is the first to sign a supply contract among several prospective foreign buyers Sultan was eyeing. Mr Rufino Bomasang vice chairman of Sultan said that they hope to begin talks with the potential buyers soon as the company aims to start exports within the year to take advantage of higher coal prices amid skyrocketing crude oil prices.

Sultan previously entered into a supply agreement with Conal Holdings, which was planning to build a power plant in Mindanao. Sultan said the coal would be sourced from the Daguma reserve, where it owns a 12.5 % stake.

Sultan intends to start underground coal mining at its Bislig site while developing its reserves in Argao, Cebu where the coal is of the highest grade and value.

IFC to extend USD 121.8 million loan to PT Adaro

ANTARA News reported that the International Finance Corporation the World Bank’s private investment arm is committed to extending USD 121.8 million in loan to PT Makmur Sejahtera Wisesa a subsidiary of publicly listed energy