SAIL Q1 net profit up by 20% YoY

Steel Authority of India Ltd announced that it has posted a net profit of INR 18.351 billion for the quarter ended June 30th 2008 as compared to INR 15.251 billion for the quarter ended June 30th 2007. Its total Income has increased from INR 83.464 billion for the quarter ended June 30th 2007 to INR 114.219 billion for the quarter ended June 30th 2008.

The improvement in financial performance during the first quarter of 2008-09, despite a burden of INR 14.34 billion on account of substantially higher cost of inputs like coal, freight, ferroalloys, fuels, etc and provision for higher wage revision as well as maintaining a constant price line during May to June of Q1, was mainly due to 10% growth in domestic sales over CPLY at 2.62 million tonnes including highest ever Q1 sales of special quality steels. This helped the company register sales turnover of INR 121.83 billion with growth of 37%, during the period.

With thrust maintained on production of value added and special steels, the SAIL plants produced about 1mn tons of these items during Q1, showing a growth of 41% over CPLY.

With utilization of finishing mills at an all time high in Q1, finished steel production comprised 88% of production as compared to 84% in CPLY. Further improvement in operational efficiencies also helped to improve the company's bottom line. With 121% of rated capacity utilization of continuous casting shops, production through this energy-efficient route crossed 2 million tonnes. This helped in achievement of 5% lower specific energy consumption at 6.89 giga calories per tonne of crude steel produced.

Mr SK Roongta chairman of SAIL said that "Our strategy of thrust on production of value added and special quality steels, higher production with still better capacity utilization and continual improvement in operational efficiencies has helped the company to offset cost pressures and improve profitability in spite of holding the price line."

Indian steel price index - July 21

LPPI – Long product price index
FPPI - Flat product price index
SPI – Steel price index

(Sourced form www.steelprices-india.net)

Welspun announces Q1 results

Welspun-Gujarat Stahl Rohren Ltd has announced the following unaudited results for the quarter ended June 30th 2008

It has posted a profit after tax of INR 711.40 million for the quarter ended June 30th 2008 as compared to INR 693.20 million for the quarter ended June 30th 2007. Its total Income has increased from INR 8172.80 million for the quarter ended June 30th 2007 to INR 10967.30 million for the quarter ended June 30th 2008.

Mr BK Goenka vice CMD of Welspun said that "We take pride to be able to deliver more than what we have promised to our stakeholders with each passing quarter."

Electrosteel castings net profit in Q1 down by 48% QoQ

BS reported that Electrosteel Castings has registered a net profit of INR 15.41 crore in the first quarter ended June 30th 2008 down by 48.30% from its previous quarter net profit of INR 29.81 crore.

As per report, profit before tax declined 49.42% to INR 21.10 crore. EBITDA at INR 66.86 crore represents an increase of 50.80% over INR 44.33 crore. Turnover at INR 403.60 crore saw an increase of 51.94%.

The board has approved enhancement of investment in Electrosteel Integrated an associated company from INR 630 crore to INR 735 crore which will be required in a phased manner for increase in capacity from 1.3 million tonnes to 2.2 million tonnes for an integrated steel plant in Jharkhand.

Orissa CM asks industries to make people stakeholders in projects

Express news service cited Mr Naveen Patnaik CM of Orissa as saying that no mining or industrial activity can take place unless people impacted are co opted as stakeholders in the project. He said that project proponents must learn to communicate with the people in a transparent manner and be willing to share with them the benefits of their project investments.

He added that future of the country's manufacturing sector linked to mineral resources would depend on achieving cost effectiveness and quality standards by deploying appropriate technology.

Stating that mining has adverse impact on environment, Mr Naveen called for a cautious approach backed by technology to rejuvenate ecology and people's participation. While CM underscored issues related to impacted population, head honchos of steel companies made clear their views on delay in grant of mining leases.

Timken to supply bearings to Grasim Cement plant

It is reported Timken Company will supply bearings for critical applications in vertical rolling mills operated by India's second largest cement producer Grasim Industries Limited.

As per report Grasim Industries Limited has placed orders for large bore cylindrical and spherical Timken bearings for use at the company's plant at Tadipatri in India.

The bearings will be installed during 2009 in positions that are deemed critical for efficient operation of the vertical rolling mills. The reliability of bearings in these positions is of paramount importance because bearing failure in critical applications can cause significant equipment downtime.

EBL arranges syndicated loan for Magnum Steel

The new nation reported that Bangladeshi Eastern Bank Limited has arranged a syndicated facility of BDT 300 million medium term loan investment for Magnum Steel Industries Limited an automatic steel re rolling mill with a production capacity of 90,000 tonnes of rebars per annum.

As per report, the signing ceremony of agreements to this effect was held at Pan Pacific Sonargaon Hotel on July 16th 2008.

The participating banks are Bangladesh Commerce Bank Limited, Bank Alfalah Limited, Eastern Bank Limited, Peoples Leasing & Financial Services Limited, Social Investment Bank Limited and The City Bank Limited. EBL is the Agent and Account Bank for this transaction.

Mr Ali Reza Iftekhar MD & CEO of EBL expressed his appreciation to all lending partners for their wholehearted support towards achieving the financial close of this milestone transaction.

Mr Iftekhar also thanked the participating banks for showing their confidence on EBL and assured that EBL will continue its efforts to bring quality transactions in the market. He wished MSIL all success for the future.

No stay on construction of Mundra SEZ - Adani

Adani Group has clarified that the court has not stayed construction work as per Gujarat High Court’s recent order that no creeks near the Mundra Special Economic Zone shall be filled till August 7th 2008, its promoters the

Reacting to the inaccurate reports circulated by vested interests that the High Court has granted stay against construction activity at Mundra, Adani in a statement said that the Supreme Court had dismissed public interest litigation as withdrawn.

It said that “Certain people claiming to be fishermen had moved the PIL in the SC and obtained a stay on July 1st. When the company presented the facts to the apex court, the petitioners sought the court’s permission to withdraw the petition and a stay until they moved the Gujarat High Court.”

The release added that “The petitioners moved the High Court asking for a status quo to be maintained for construction activity in the entire Mundra SEZ. The High Court ordered notices to be issued and posted the matter for hearing on August 7, while directing that a reply be filed on or before August 4.”

Adani has also assured that the company has no intention of filling any creek.

Indian Railway freight earnings in Q1 2008 up by 22% YoY

It is reported that the total approximate earnings of Indian Railways on originating basis during April 1st to 30th June 2008 were INR. 19549.29 crore compared to INR 16561.44 crore during the same period last year registering an increase of 18.04% YoY.

The total goods earnings have gone up from INR 11036.23 crore during April 1st to 30th June 2007 to INR 13470.11 crore during April 1st to 30th June 2008 an increase of 22.05% YoY.

Update on UMPPs in Tamil Nadu and Maharashtra

The telegraph reported that 2 proposed mega power projects in Tamil Nadu and Maharashtra have cleared some major hurdles, giving much needed impetus to the government’s ambitious plan of setting up 9 such giant facilities by the end of the 11 Five Year Plan.

As per report, the Power Finance Corporation the nodal agency for the projects, is likely to soon invite bids for the Cheyyur project in Tamil Nadu, while the Maharashtra government is ready to finalize the site. Each of the power projects has a capacity of 4,000MW and requires an investment of INR 16,000 crore to INR 20,000 crore.

The report added that the power ministry cited the DMK government in Tamil Nadu had sorted out the problems of land acquisition and compensation and bidding for the request for qualification was likely to be called by the end of this month.

The Cheyyur plant will run on imported coal and provide electricity to Tamil Nadu and neighboring states. A special purpose vehicle Coastal Tamil Nadu Power Limited has been formed as a fully owned subsidiary of Power Finance Corporation.

Compensation for the displaced had delayed the project for several months. The state government had even suggested another site, but the Central Electricity Authority & Power Finance Corporation stuck to the original location. The projects are awarded through a 2 stage bidding process. Those who qualify the eligibility round place their bids on a per unit tariff basis and the project is awarded to the one offering the lowest tariff.

Officials said that the Tamil Nadu government had expressed interest in another mega power project, which the power ministry would approve if suitable land was identified and clearances obtained.

BHEL announces Q1 results

Bharat Heavy Electricals Ltd has announced the following unaudited results for the quarter ended June 30th 2008

Bharat Heavy Electricals Ltd has posted a net profit of INR 3844.10 million for the quarter ended June 30th 2008 as compared to INR 2889.10 million for the quarter ended June 30th 2007. Total Income has increased from INR 34402.40 million for the quarter ended June 30th 2007 to INR 46209.80 million for the quarter ended June 30th 2008.

GE Shipping plans USD 1.5 billion fleet expansion

DNA money reported that Great Eastern Shipping has outlined a capital expenditure of USD 1.5 billion on fleet expansion in 2009. The investment would be equally distributed on the shipping division and the offshore subsidiary Greatship India and would be funded by a mix of debt and internal accruals.

With an outlay of USD 780 million for shipping division, the company has 6 product tankers and 8 dry bulk vessels on order. The tankers will be delivered by 2009, while the bulk vessels are expected to join the fleet between 2010 or 2011.

This expansion would grow the dry bulk fleet for GE Shipping to 21. The addition of tankers would also stabilize the company's tanker fleet, which had diminished after the company sold off 5 single hull tankers.

The offshore subsidiary, meanwhile, would see an addition of 18 offshore vessels and one jack up drilling rig for USD 725 million. The company has already invested USD 200 million of this.

Mr Ravi Sheth ED of GE Shipping said that "There is a huge shortage of offshore vessels globally, leading to higher charter rates and we are growing our offshore fleet fast to take advantage of this opportunity."

Delegation asks CIL to protect environment

It is reported that a delegation of Damodar Bachao Andolan led by legislator Mr Saryu Rai general secretary submitted a MoU to Mr PS Bhattacharya chairman of Coal India Limited demanding the latter to make river Damodar free from pollution.

The delegation also demanded streamlining of drinking water, health and other civic amenities in CCL, BCCL & ECL regions.

JSW Energy and Sterlite Energy to defer IPO plans - Report

BS reported that emerging power companies JSW Energy and Sterlite Energy are believed to have deferred their public offering plans following the market slump.

The report said that JSW Energy is now planning to increase funds for capital expenditure through private placement of 5% stake to a US based private equity fund.

The report cited an executive as saying that "JSW Energy has suspended the IPO plan for the time being. We will wait for market conditions to improve before coming out with the public offering and the subsequent listing. The company has already filed the draft red herring prospectus which will not be pursued. At present, we are fully funded for the equity portion of power projects. Only one project is under implementation as of now a 2,400MW project in Orissa."

As per report, JSW is expected to increase over USD 500 million through private placement of the equity. A slew of private equity firms have approached the company for a stake. The company plans to announce the deal very soon.

Sterlite Energy, a Vedanta Group company plans to increase USD 1.6 billion loan for its Greenfield projects. Sterlite plans to increase USD 1.6 billion through a syndicated loan, which will part fund Sterlite Energy's projects here. A senior Sterlite executive said that the company has not formally talked about its IPO plan.

Mr Anil Agarwal chairman of Vedanta Group said that "We are planning a USD 1 billion IPO for Sterlite Energy in the next few months however it was too early to set a date for the IPO. I can't really give you a date but it will be in a few months time. Bankers and advisers are working on it."

JSW Energy is setting up power projects with cumulative capacity of 4,000 mw at an investment of INR 12,000 crore.

Sterlite plans to add 10,000 MW investing INR 40,000 crore in the process.

UP rejects Reliance Power bid for plants in Allahabad

BS reported that the Reliance Power Limited's bid to set up 2 power plants with a collective capacity of 3,300 MW in Uttar Pradesh with the Energy Task Force concurred with the evaluation committee's report.

The evaluation committee discussed the financial and legal aspects of the bid and reached the conclusion that the bids could be much lower enabling the provision of cheaper power.

Mr Atul Kumar Gupta chief secretary of Uttar Pradesh said that “The Energy Task Force recommended invitation of fresh bids for setting up the power plants at Bara and Karchhna in the Allahabad district. However, this has to be ratified by the state Cabinet first to take effect. This would be the third time that the state government would invite bids for the 2 power plants, which have failed to take off in spite of much fanfare with which they were initially announced.”

Mr V N Garg principal Secretary said that "A mere one paisa below the previous lowest bid makes no sense, neither does it amount to any substantial savings to the state government and power consumers."

Reliance had quoted INR 2.64 per unit and INR 2.60 per unit for the 1,980 MW Bara and 1,320 MW Karchchna plants respectively. The bids were only a paisa lower than the previous winner Lanco Infratech's bids.

The proposed Bara & Karchhna projects are based on the super critical technology and the required coal would be ferried from Singrauli, which is situated at a distance of about 600 kilometer.

SC stays Patna HC order on Tenughat Vidyut Nigam Limited

BS reported that the Jharkhand government, which had approached the Supreme Court, has managed to obtain a stay order on the recent Patna High Court ruling which had vested the ownership of Tenughat Vidyut Nigam Limited with the state of Bihar.

Mr KC Balakrishnan chief justice after hearing a special leave petition filed by the state of Jharkhand challenging the order of the Patna High Court, directed the authorities to maintain status quo in the matter till August 1st when the matter would again be taken up for hearing. Senior counsel Harish Salve, appearing for the state of Jharkhand mentioned for an urgent hearing of the case.

The union home and law ministry said that the ownership of Tenughat Vidyut Nigam Limited should go with Jharkhand after bifurcation of Bihar on the basis of its location.

PM approves grant for APGenco and BHEL project

BL reported that Dr Manmohan Singh PM of India approved a grant of INR 350 crore for the 125MW Integrated Gasification Combined Cycle project being put up at Vijayawada in Andhra Pradesh by a JV of Andhra Pradesh Power Generation Corporation & Bharat Heavy Electricals Limited.

As per report, the Technology Demonstrator project costs INR 950 crore. This is substantially higher than a conventional coal fired project of similar size which would cost between INR 500 crore and INR 600 crore.

APGenco will contribute INR 530 crore for the project and BHEL INR 420 crore. Now it is expected that the Government’s contribution of INR 350 crore would be taken as part of BHEL’s.

Global collaborations get Nepal hydel power project rolling

BL reported that USD 1.25 billion hydroelectric project is coming up in Nepal, which is being promoted by an Australian engineering firm with design and building work to be carried out by a Chinese state owned firm, while primary power evacuation will be taken up by an Indian state owned company.

As per report, the 750 MW West Seti power project coming up in Nepal is being touted as a major international cooperation success story. Over 90% of 3,251 million units of electricity expected to be generated from the project, post commissioning is set to flow into India.

The PPA for the project, which would be the largest single foreign investment so far in Nepal and marks a debut of sorts for Indian firms in Nepal’s power sector, was initialed by SMEC, the Australian project sponsor and PTC India Limited.

Mr Jairam Ramesh minister of State for Commerce and Power said that “India is starving for power, while Nepal has the second largest hydropower potential in the world. It is a win to win situation for both nations as well as for Indian companies which are finally finding a foothold in Nepal’s power sector.”

A senior PTC official said that “ADB’s involvement has been crucial in bringing the many complex project elements together. While West Seti Hydro Limited a special purpose vehicle will develop the project, the Manila based Asian Development Bank is among those subscribing to the equity capital for the project.”

Karnataka plans 2,000 MW power plants in Chattisgarh

It is reported that Karnataka has turned to Chattisgarh to meet its energy requirement. It plans to set up its own 2,000 MW pithead thermal power plant in Janjgir district and has also sought 500 MW of power from that State.

Mr BS Yeddyurappa CM has written to his Chattisgarh counterpart, Dr Raman Singh seeking speedy allocation of 2,000 acres at Godhna. The site is well connected by road and rail and gets water from the Mahanadi.

Mr Yeddyurappa said that “The acute and critical power shortage in the State. I also request your timely assistance for water allocation from Mahanadi as well as early clearance of State Pollution Control Board. Most importantly as Member State in the Coal Allocation Committee of the Government of India, your help for obtaining coal linkage from the South Eastern Coalfields would be essential for our success.”

As per the report, he also met Dr Raman Singh, who is undergoing treatment at a Bangalore nature cure hospital and formally requested 500 MW of power to which Dr Singh has reportedly promised 200 MW. Mr Yeddyurappa said his Government is keen on joint development with Chattisgarh in other fields also.

SPI - SENSEX for steel prices in India

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.

Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media’s most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

In order to provide a index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them LPPI, FPPI and SPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

LPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas FPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in the regional markets.

The pricing input is from www.steelprices-india.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.

These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.

Klockner sell Koenig Verbindungstechnik for EUR 325 million

Acting through its Swiss subsidiary Debrunner Koenig Holding, Klöckner & Co AG has signed a contract to sell Koenig Verbindungstechnik to the private equity company Capvis. The sale price totals approximately EUR 325 million, resulting in a book profit after taxes of about EUR 265 million. The transaction is subject to approval by the antitrust authorities.

KVT a wholly owned subsidiary of DKH is involved in the market of fastening systems and sealing plugs an area that is not part of the core business of Klöckner & Co AG. The planned sale was announced in the company’s report for the first quarter of 2008.

KVT, which is headquartered at Dietikon in Switzerland has a workforce of about 300 people. In fiscal year 2007, it generated sales of about EUR 120 million and earnings after taxes of around EUR 20 million. Among other things, the company for fastening systems and sealing plugs sells self clinching fasteners, riveting system, nuts as well as high-pressure fasteners used particularly in automotive technology for hydraulic applications.

Dr Thomas Ludwig, CEO of Klöckner & Co AG said that "We are intensifying our focus on our core business in Europe just as we are doing in North America. The funds generated by the sale of KVT can be used to finance the expansion of Klöckner & Co.

Siam Yamato Steel orders meltshop and section mill

Bangkok based Siam Yamato Steel Co Ltd has placed an order with Concast and SMS Meer GmbH for the supply of a minimill for the production of medium sections at its Rayong Works in Thailand. Concast will supply the steelworks with continuous caster and SMS Meer the medium section mill. The laying of the foundation stone was celebrated on January 31st 2008, commissioning of the minimill is scheduled for the second quarter of 2009.

The steelworks is designed for a capacity of 700,000 tonnes per year and comprises an 80 tonne EAF, a ladle furnace and a combination continuous caster. Various auxiliary systems such as scrap transport, dedusting and material charging is also included in the scope of supply. The whole planning of the works will be carried out jointly by Concast and SMS Meer. The plant configuration also permits hot charging of the cast billets and blooms into the reheating furnace.

The Electric Arc Furnace is equipped with the latest generation of ConSo oxygen technique to reduce the electrical energy consumption and simultaneously increase productivity. The dedusting system for the whole steelworks is designed to meet high standards of air pollution

The continuous caster is equipped with CONVEX technique and a hydraulic compact oscillation system, has five strands and provides for the production of a wide range of section sizes from 150mm x 150mm up to 230mm x 450mm. The simultaneous casting of different formats is also possible. The arrangement of the discharge equipment allows part of the production to be transported directly into the reheating furnace, while the excess blooms are discharged onto a cooling bed.

The semi continuous medium section mill from SMS Meer with an annual capacity of 400,000 tonne of finished products will be used to produce beams from 100 x 50 up to 350 x 175, as well as channels and angles. A later expansion to include round and flat formats with an increase in production will be possible in a further development stage. The plant includes a walking-beam furnace with a capacity of 130 tonnes per hour, a two-high reversing stand and a continuous finishing train with nine stands, six of which are designed as universal/two-high stands. The roll stands are modular compact stands of CS design. The stands are interchangeable and can be used alternatively as horizontal/ vertical or universal stands. Quick stand changing without the use of a crane is thus possible. The finishing section consists of a rake-type cooling bed, a nine-roller straightening machine with adjustable roller pitch, a saw line with three cold saws as well as five stacking machines, tying and loading facilities.

The scope of the order comprises the supply of the complete mechanical and electrical equipment and automation, as well as the supervision of erection and commissioning and the training of the operating personnel.

German automotive suppliers see steel contracts breached

WirtschaftsWoche citing letters it obtained reported that German automotive suppliers including Remscheid and Germany based Edscha have received letters from steel companies saying deliveries may be cut unless they accept price increases that breach previously signed contracts.

The magazine cited Mr Manfred Puhlmann CEO of Edscha as saying that “We are getting a clear message from many of our suppliers: either you pay EUR 180 more per tonne of shaped flat steel or we cannot guarantee that we can continue to supply you.” It added that “Even long term contracts hardly have relevance now.”

In an excerpt of an article to be published on Monday the magazine also said an unnamed southern German steel supplier told customers they will 'definitely' not receive steel ordered if they refuse to accept price increases.

Damage halts Bluescope's New Zealand slab mill

It is reported that Steel making was halted on Monday at BlueScope Steel Ltd's mill in New Zealand when water cooling system failure caused furnace damage.

Bluescope said that repairs will take seven to 10 days and result in the loss of 12,000 tonnes to 15,000 tonnes of steel slab production.

POSCO keen to invest on Sarawak

BERNAMA reported that South Korea based POSCO is keen on investing in Sarawak in view of the vast economic potential in the state.

Mr Yang Bong Ryull South Korea Ambassador to Malaysia Yang Bong Ryull, currently on a two day visit to the state said that detailed discussion on the investment is expected to be held soon.

He told reporters that “POSCO is showing big interest in Sarawak.”

Mr Yang said that apart from POSCO several Korean companies have also showed interest in enhancing their business ties with the public and private sector of Sarawak especially in the energy related and oil palm industries.

While the Korean community in Sarawak is relatively small with an estimated 300 Koreans in the state including those involved in small businesses and over 100 Korean students studying here, Yang said he believed that the potential was high for South Korea and Sarawak to look into areas that will bring mutual benefits.

V&M to increase tubes production

Brazil based Vallourec & Mannesmann Tubes announced that it plans to increase its seamless quenched tubes production by 40% in 2009.

Vallourec & Mannesmann said that the move is in an effort to meet strong domestic demand for pipe and it will increase its production from the current 150,000 tone per year to 210,000 tonne per year. In addition, the increasing oil and gas production trend will also boost the demand for steel pipe.

Currently, V&M produced about 550,000 tonne a year of all types of seamless tubes.

Stefana starts new rebar rolling mill

Stefana SpA, a manufacturer of bars and wire rod located in Ospitaletto, a town in the northern Italian province of Brescia, had awarded a contract to SMS Meer Germany in 2005 for the supply and installation of a complete bar mill for 120 tonnes per hour. The objective of the project named “Dream Steel” was to significantly boost production of straight bars and spools.

With its annual capacity of 700,000 tonnes, this new plant is among the rolling mills with the highest productivity in southern Europe. The product mix of the bar mill includes rebars and plain rounds with diameters from 8mm to 16mm produced with the two slit rolling method and with diameters from 18mm to 40mm produced in a single line.

The SMS Meer scope of supply included a walking-hearth furnace, the rolling line, the finishing section and two VCC® Vertical Compact Coiling lines.

The walking hearth furnace is designed for heating 160mm x 160mm square billets with lengths of 16 meters. With its dimensions, this unit ranks among the world’s largest for reheating of starting material for long product rolling mills. A connection to the existing caster allows the billets to be charged either hot or cold. The furnace includes all the necessary equipment for charging and discharging.

The rolling mill comprises 16 housing less stands consisting of six roughing mill stands arranged in horizontal and vertical configuration, and ten intermediate/finishing stands arranged in horizontal, vertical and convertible configuration. The scope of supply also included two finishing blocks each with six passes, three cooling sections for rebar quenching and self-tempering from rolling heat, two cooling bed shears and the patented HSD® High-Speed Delivery system. The HSD® system with four rotating channels allows high-speed rolling using the two-slit method in order to permit very high production rates with the smallest bar sizes.

When planning the layout of the mill, space was allowed for the future installation of a billet welder for endless rolling operation and a possible expansion for the production of wire rod.

The finishing area consists of a 90 meter long cooling bed, transport facilities, a cold shear, bundling equipment, four automatic tying machines with automatic labeling device, bundle transport ways and all the necessary utilities. All products are delivered onto the cooling bed with a final speed of up to 40 meter per second using the patented HSD® system. The entire mill has been designed and equipped, however, to allow a speed increase up to 50 meters per second in the future.

On the two VCC® lines Vertical Compact Coiler lines, consisting of cooling boxes, shears, spooling equipment, a spool manipulator, two strapping machines, transport facilities and a weighing station, rebars with diameters from 8 to 16 mm are coiled into spools at a speed of 35 m/s. When charging 16-m-long square billets, the spools have weights up to 3.2 t with a diameter and a height of 700 mm.

SMS Meer acted as system integrator, supplying all the electrical and electronic equipment, controls and software for the mill automation. Furthermore, erection and supervision of commissioning of the mill as well as training of the customer’s personnel were also part of the scope of supplies and services.

Mr Mallet to join Vallourec as CFO

World leader in the production of seamless steel tubes Vallourec announced that it has appointed Mr Olivier Mallet to take charge of an enlarged finance department along with external communications and legal matters.

The release added that on September 1st 2008 he will also take charge of the external communication, followed on September 30 by the legal department.

Doe Run Peru gets a Tenova Pyromet first

At the end of May 2008, Tenova Pyromet was commissioned by Doe Run Peru to design and supply a 15 meter slag launder, comprising water cooled copper launder sections which will convey matte and slag from the ISASMELT™ furnace to the settling furnace. The project part of the La Oroya Metallurgical Complex copper smelter modernization is well under way;

It marks the first time that the proven Tenova Pyromet slag launder design will be adapted for use with a matte and slag mixture. One of the challenges is that matte is normally more aggressive to copper elements than slag. This is due to the increased heat load and higher fluidity of the matte. Tenova Pyromet’s launders will be modified to improve their cooling capacity and to provide additional wear resistance in areas of matte impact.

The launders are set for delivery by February 2009.

The release added that “Developed and manufactured in South Africa using advanced Finite Element Modeling and Computer Aided Engineering techniques, Tenova Pyromet’s slag launders are used on Anglo Platinum’s Waterval Smelter in South Africa, BCL nickel smelter in Botswana, STL’s cobalt smelter in the Democratic Republic of Congo and BHP Billiton’s Olympic Dam works in Australia..”

Doe Run Peru has operated the La Oroya metallurgical complex since 1997, producing high quality refined metals while at the same time working to operate in a socially and environmentally responsible manner

OneSteel meets new Australian Strand standards

OneSteel, the Australian Strand supplier, has reported becoming certified to newly published standards for AS/NZS 4672. The certification was issued by the Australian Certification Authority for Reinforcing Steel.

The accreditation was authorized following an audit of the OneSteel Quality Management System, Wiredrawing, Stranding and Mechanical Testing processes.

Strand is a reinforcing product used to support concrete. The pre cast product can be used in the construction of bridge sections, while post tensioning is used to support concrete in the construction of projects such as large-scale shopping centre car parks.

Mr Geoff Lee sales manager of Strand and LR Wire of OneSteel said that “We have successfully supplied the pre cast and post tensioning market with Strand to the pre cast concrete market for most of Australia’s major road infrastructure projects for the past 40 years. OneSteel has been the largest supporter of the Australian Strand Industry, with the highest technical input and consistent quality to ensure we meet the demands of the market.”

He said that “We see this accreditation as a reflection of our commitment to our product and are pleased to be officially supplying superior product to the marketplace and the first to be compliant with the new Australian Standard.”

Mr Chris Wlodarczyk Quality Assurance and Testing Manager of OneSteel said that “OneSteel Wire’s testing includes compliance testing of every unit of manufacture, 1000 hour relaxation tests and statistical assessments of long-term quality parameters, as specified in AS/NZS 4672.”

He said that “We see this accreditation as confirmation that OneSteel has demonstrated a consistent quality product to supply the market, and, therefore our customers can be confident they will receive superior Strand.”

EU launches AD probe into Chinese aluminum foil

It is reported that the European Commission has decided to initial an anti dumping probe into imports of aluminum foil from China, Brazil and America.

The investigation was initiated following a complaint by the European Association of Metals and the commission has 45 days to decide whether to launch an anti dumping investigation.

The product allegedly being dumped is aluminum foil of a thickness of not less than 0.008 mm and not more than 0.018 mm, not backed, not further worked than rolled, in reels of a width not exceeding 650 mm, according to the latest official journal of the European Union (EU).

Aluminum foil provides a light and relatively inexpensive form of protection for food, medicine and automotive air conditioner.

Spanish scrap imports decline in 2007

According to the related statistics, Spain imported 6.308 million tonne of scrap in 2007, decreased by 1.042 million tonne or 14.2%.

Those scraps included 1.721 million tonne from France up by 1.2 YoY. Shipments from UK totaled 1.492 million tonne down by 20.1% YoY.

Russia took 1.047 million tonnes down by 27.4% YoY. In addition, Netherlands took 450,000 tonne and Portugal took 317,000 tonne.

Hoa Phat H1 profit exceeds target for 2008

Bloomberg reported that Hoa Phat Group Joint Stock Co a Vietnamese steel and real estate company net profit in the first half exceeded its full year target.

As per report Hoa Phat net profit increased to VND 848 billion (USD 50 million). But it didn't provide comparable figures for last year.

Hoa Phat expects profit to increase 15% to VND 740 billion in 2008 from VND 644 billion in 2007.

Ferrous scrap price peaking in Tokyo

JMB reported that ferrous scrap market price experiences temporally peak around Tokyo.

Some local electric furnace steel makers reduced the scrap purchase price in the week when they can get material enough to the operation under slower export. As per report they pay JPY 69,000 to JPY 71,500 per tonne for H2 grade.

Alamillo Rebar expands presence in Mare Island

East Bay Business Times reported that steel fabricator Alamillo Rebar Inc has expanded by 17,000 square feet at Mare Island near Vallejo, its second expansion in two years.

The repot said that the company now occupies 67,000 square feet, one of the largest commercial spaces on the former naval shipyard being redeveloped by Lennar Mare Island LLC.

Alamillo Rebar operates in Building 126 at 1101 Nimitz; the expansion was for additional laydown space outside. The company leased about 33,000 square feet on the island in March 2007.

According to the Fairfield office of Colliers International, the rate and term were not disclosed. But industrial space in Solano County was going for about 35 to 55 cents per-square foot a month, with older properties between 50,000 and 100,000 square feet priced at the lower end of the range.

AISI new steel campaign continues to change perceptions

With two national awards in hand and June 2008 research results indicating increases in awareness and favorability among policymakers, the American Iron and Steel Institute’s New Steel Campaign continues to make progress in re branding American steel as a hi tech, sustainable industry of the future.

In recognition of the New Steel Campaign, the Advertising Research Foundation recently honored AISI with its Silver David Ogilvy Award. The award celebrates the role of research in making good advertising better and commemorates David Ogilvy, who dedicated his life to expanding and improving the advertising industry and is also known as the Father of Advertising. The New Steel Campaign was recognized in the Governmental, Public Service, Non Profit category.

The New Steel Campaign was also recently awarded a Silver Anvil Award of Excellence in the category of Integrated Communications – Association, Government, Non Profit from the Public Relations Society of America. The Award of Excellence recognizes outstanding strategic public relations planning and implementation. In addition to receiving award recognition, the New Steel Campaign is also continuing to make strides in terms of reaching its target audience, Washington policymakers.

The tracking survey, conducted by Harris Interactive, found that over the course of the campaign, there has been a 16 point total favorable shift of perceptions related to the American steel industry, with a plurality viewing the industry as modern, clean, hi tech and globally competitive. In addition, there has been a gain of eight percent in those who cite steel as the most recycled material in the world, since the campaign launch in 2006. The research also shows that the messages that resonate most effectively with policymakers relate to the steel industry’s importance to America’s economy and national security.

The overall objective of the campaign is to close the gap between outdated perceptions of the industry and the reality of today’s globally competitive and vibrant American steel industry. The campaign includes print, online and radio advertisements aimed to educate Washington policymakers about the strides that have been made within the steel industry that today makes it a strategic asset to the nation.

Mr Andrew G. Sharkey III president & CEO of AISI said that “The June 2008 research results confirm the positive role that the campaign has been playing to make sure that Washington policymakers are reminded of the vitality and sustainability of the American steel industry. Prior to the launch of the campaign, benchmarking research showed that many policymakers viewed steel as an outdated industry and were not aware of many of the tremendous technological advances integral to today’s steelmaking. The campaign has helped to create a more positive atmosphere for the industry by turning attention toward the industry’s progress. It has also expanded awareness of the extent to which the industry has lightened its environmental footprint, something that continues as a top industry priority.”

Turner prize winner designs world biggest sculpture

The Sunday Times reported that Turner prize winning artist Mr Anish Kapoor is to is to create one of the world’s biggest sculptures by building a “Space Age” pedestrian bridge across a harbor in Hartlepool.

The paper said that Mr Kapoor’s tubular steel structure will span 520 feet and is expected to have a polished surface that reflects the bleak surroundings of the harbour. The bridge will be retractable to allow ships into port.

The bridge is one of five public sculptures due to be built in the next 10 years on Teesside and along the Tees valley by Mr Kapoor and structural engineer Mr Cecil Balmond.

South Korea may reach self sufficiency in scrap

According to the Korea Iron and Steel Association, steel inventories totaled 26.06 million tonne in 2007 reaching a peak high.

If the increasing rate of annual steel inventories stays at around the current 5.6% South Korea will reach self sufficiency in terms of scrap by 2022, if the rate stays at 3.2%.

The association indicated that scrap amounts will continue to increase by improving the technical and collection systems.

(Sourced from YIEH.com)

SembMarine wins USD 220 million rig contract

Reuters reported that Sembcorp Marine’s unit PPL Shipyard has won a contract to build a USD 220 million jack up rig for the Egyptian Drilling Company.

SembMarine in a statement said that this is the second rig that PPL is building for the oil firm, a joint venture between the Egyptian General Petroleum Corp and Denmark's AP Moeller Maersk and is scheduled for delivery in mid-2010.

It said that the first rig, under construction, is due for delivery in December 2009

Aluminum factory to be built in Lam Dong

It is reported that Viet Nam National Coal and Mineral Industries Group signed a contract with a Chinese company to build an aluminum factory in Lam Dong Province.

Under the contract, China Aluminum International Engineering Corporation Limited will be responsible for building the USD 460 million aluminum factory, the first of its kind in the Central Highlands province. The aluminum factory will be the largest project in the Lam Dong Bauxite Aluminum Complex.

The aluminum factory will have a capacity of 600,000 tonnes of aluminum per year. Factory construction should be completed within 24 months.

According to Mr Doan Van Kien chairman of the board of management of VINACOMIN, signing marked the first step in developing Viet Nam’s aluminum industry.

Mr Kien said that VINACOMIN would work with partners to discuss the construction of another aluminum plant in Lam Dong, the Nhan Co factory. Construction is due to begin in the fourth quarter.

South Korea to privatize Daewoo Shipbuilding-finance minister

Reuters reported that South Korea plans to privatize Daewoo Shipbuilding and Marine Engineering Co and other firms competing directly with private companies immediately.

Mr Kang Man soo finance minister of South Korea made the remark in a parliamentary session in response to a lawmaker's question but did not elaborate.

Global Steel seeks friendly policies and lower power rates

It is reported that Global Steel Philippines Inc is seeking more support from the government by way of lower power rates to push through with its proposed USD 1.6 billion integrated steel plant project in the country.

Mr Lalit Kumar Sehgal MD of Global Steel told reporters during the inauguration of its re opened steel plate mill in the company’s manufacturing complex in Iligan City over the weekend that “government policy must pamper foreign investments.”

He added that “Whenever a company puts up an integrated steel facility, government must also do its part. We are looking at the power rates and supply as well as the long-term policies of the country.”

Mr Sangram Mohanty vice president for corporate communications of Global Steel said that it was all about government putting in place an enabling platform to make our planned investments a reality.”

He said the company had been in constant talks with the Board of Investments and the Environment Department to see “how we can all work together.”

Mr Sehgal also in meetings with the investments board said that the company identified the various problematic areas of concern to the company. He cited that the company pays over PHP 50 million in its monthly electric bill. He said the company was seeking preferential rates being one of the biggest power users in Mindanao.

EnergySouth Midstream to Serve ThyssenKrupp and Stainless USA facility

EnergySouth Midstream announced that it has been selected to provide full requirements natural gas supply and load balancing services to the new ThyssenKrupp Steel and Stainless USA, LLC plant which is being built at Mobile County in Alabama.

The release said that “EnergySouth Midstream will expand its existing intrastate pipeline infrastructure to connect the facility and allow for deliveries of natural gas supplies.”

Mr Todd Brown vice president of Trading at EnergySouth Midstream Inc said that "We are proud to play a role in this exciting growth project for Mobile County by delivering customized natural gas supply services in an efficient and reliable manner. EnergySouth looks forward to a long and successful relationship with ThyssenKrupp.”

EnergySouth Midstream, Inc is a subsidiary of EnergySouth Inc.

Grupo Simec Q2 profit up by 69% YoY

Mexico based Grupo Simec a manufacturer and distributor of special bar quality steel products announced that its earnings for the second quarter of fiscal 2008 rose by 69% YoY helped by a 55% increase in sales.

Simec signed a deal to purchase 100% of the shares of Corporacion Aceros DM SA de CV and certain of its affiliates or Grupo San on February 21st 2008 and the acquisition was consummated on May 30th 2008. The financial statements of Simec include the operations of Grupo San since June 1.

Simec’s net profit increased by 69% YoY to MXN 925 million in the second quarter ended June 30th 2008 from MXN 547 million in the second quarter of 2007. Net sales increased 55% to MXN 9.746 billion in the second quarter of fiscal 2008 from MXN 6.287 billion for the second quarter 2007. The results for the second quarter of fiscal 2008 included the net sales generated by the newly acquired plants of Grupo San of MXN 513 million.

Sales in tons of finished steel increased 20% YoY to 817 thousand tonne in the second quarter 2008 from 679 thousand tonne in the same period 2007. Prices of finished products sold in the second quarter 2008 increased about 29% compared to the same period last year.

For the six month period ended June 30th 2008 net profit climbed by 17% YoY to MXN 1.517 billion in from MXN 1.296 billion in the prior year period. Net sales increased 36% YoY to MXN 17.035 billion in the six month period, including the net sales generated by the newly acquired plants of Grupo San of MXN 513 million as compared to MXN 12.557 billion in the same period of 2007.

Grupo Simec is a mini mill steel producer that makes an array of non flat structural steel products. The company describes itself as the largest producer of special bar quality steel in North America.

Siam Yamato Steel order minimill

Bangkok Siam Yamato Steel Co Ltd has placed an order with Concast and SMS Meer GmbH for the supply of a minimill for the production of medium sections at its Rayong Works in Thailand.

Concast will supply the steelworks with continuous caster and SMS Meer the medium section mill. The steelworks is designed for a capacity of 700,000 tonne per year and comprises an 80 tonne Electric Arc Furnace a ladle furnace and a combination continuous caster. Various auxiliary systems such as scrap transport, dedusting and material charging are also included in the scope of supply. The whole planning of the works will be carried out jointly by Concast and SMS Meer. The plant configuration also permits hot charging of the cast billets/blooms into the reheating furnace.

The Electric Arc Furnace is equipped with the latest generation of ConSo oxygen technique to reduce the electrical energy consumption and simultaneously increase productivity. The dedusting system for the whole steelworks is designed to meet high standards of air pollution control.

The continuous caster is equipped with CONVEX technique and a hydraulic compact oscillation system, has five strands and provides for the production of a wide range of section sizes from 150 x 150 mm up to 230 x 450 mm. The simultaneous casting of different formats is also possible. The arrangement of the discharge equipment allows part of the production to be transported directly into the reheating furnace, while the excess blooms are discharged onto a cooling bed.

The semi-continuous medium section mill from SMS Meer with an annual capacity of 400,000 t of finished products will be used to produce beams from 100 x 50 up to 350 x 175, as well as channels and angles. A later expansion to include round and flat formats with an increase in production will be possible in a further development
stage. The plant includes a walking-beam furnace with a capacity of 130 tonne per hour, a two high reversing stand and a continuous finishing train with nine stands, six of which are designed as universal/two high stands.

The roll stands are modular compact stands of CS design. The stands are interchangeable and can be used alternatively as horizontal/ vertical or universal stands. Quick stand changing without the use of a crane is thus possible. The finishing section consists of a rake type cooling bed, a nine-roller straightening machine with adjustable roller pitch, a saw line with three cold saws as well as five stacking machines, tying and loading facilities.

The scope of the order comprises the supply of the complete mechanical and electrical equipment and automation, as well as the supervision of erection and commissioning and the training of the operating personnel.

This mini steelworks is the most modern plant for the production of medium sections and encompasses the latest equipment and technologies. The demands of the local environmental authorities are fully satisfied. With this order, the SMS group is demonstrating its competence and leading position in the market for long products. The laying of the foundation stone was celebrated on January 31st 2008, commissioning of the minimill is scheduled for the second quarter of 2009.

Successful start up of new rolling mill for rebars and plain rounds at Stefana

Stefana SpA a manufacturer of bars and wire rod located in Ospitaletto a town in the northern Italian province of Brescia awarded a contract to SMS Meer in 2005 for the supply and installation of a complete bar mill for 120 tonne per hour.

The objective of the project named Dream Steel was to significantly boost production of straight bars and spools. With its annual capacity of 700,000 tonne this new plant is among the rolling mills with the highest productivity in southern Europe. The product mix of the bar mill includes rebars and plain rounds with diameters from 8mm to 16 mm produced with the two-slit rolling method, and with diameters from 18mm to 40 mm produced in a single line.

The SMS Meer scope of supply included a walking hearth furnace, the rolling line, the finishing section and two VCC® Vertical Compact Coiling lines.

The walking hearth furnace is designed for heating 160 x 160 mm square billets with lengths of 16 m. With its dimensions, this unit ranks among the world’s largest for reheating of starting material for long-product rolling mills. A connection to the existing caster allows the billets to be charged either hot or cold. The furnace includes all the necessary equipment for charging and discharging.

The rolling mill comprises 16 housingless stands consisting of six roughing mill stands arranged in horizontal and vertical configuration and ten intermediate/finishing stands arranged in horizontal, vertical and convertible configuration. The scope of supply also included two finishing blocks each with six passes, three cooling sections for rebar quenching and self tempering from rolling heat, two cooling bed shears and the patented HSD® High Speed Delivery system. The HSD® system with four rotating channels allows high-speed rolling using the two-slit method in order to permit very high production rates with the smallest bar sizes. When planning the layout of the mill, space was allowed for the future installation of a billet welder for endless rolling operation and a possible expansion for the production of wire rod.

The finishing area consists of a 90 meter long cooling bed, transport facilities, a cold shear, bundling equipment, four automatic tying machines with automatic labeling device, bundle transport ways and all the necessary utilities.

All products are delivered onto the cooling bed with a final speed of up to 40 m/s using the patented HSD® system. The entire mill has been designed and equipped, however, to allow a speed increase up to 50 m/s in the future.

Carlyle Group acquires 50% of TVK Shipbuilding

Carlyle Group announced that it has bought 50% of shares in the TVK Shipbuilding Industry Trade Inc in Turkey, which specializes in building chemical tankers. This investment, concluded recently and approved by the Competition Board, is the first investment made by the Carlyle Group in Turkey.

Mr Can Deldag GM of Carlyle Group Turkey indicated that their participation in the TVK is very important for the Carlyle Group and that they will work in close cooperation with the company management to ensure that the TVK is well positioned in the fast growing global shipbuilding sector. Mr Deldag pointed out that with its new facilities, strong management staff, know how, quality and efficiency, the TVK has considerable competitive advantages in many segments of the sector.

Mr Can Topsakal, the founder and chairman of the executive board of the TVK said that the Carlyle Group's partnership will boost their production capacity, ensuring high quality and rapid production capabilities. He added that when a second slipway, under construction, is completed, their production capacity will be doubled and they will start to build tankers with stainless steel tanks, which will be a first in Turkey.

The Carlyle Group is an international private equity firm managing total funds of USD 82.7 billion. The group invests in diverse sectors, including automotive, transportation, energy, industry, health, retail, technology, telecommunication and the media in Africa, Asia, Australia, Europe and North America.

Turkish rebars prices edge higher

It is reported that Turkish rebar mills are offering USD 1,380 to USD 1,400 per tonne for markets for September deliveries, except for the US and Persian Gulf areas.

Turkish mills said that July and August orders were fully booked. September shipment is almost fully booked as well. September’s price is the same as that for July and August.

Some mills and distributors with stock on hand are offering lower prices. Buyers in the UAE are slowing down their purchases except for urgent and small quantity requirements.

(Sourced from Yieh.com)

Al Mal to bid for USD 2.2 billion Tunisia Port

Reuters reported that Kuwait's Al Mal Investment Company, a firm controlled by the family owned conglomerate Kharafi Group, will bid for a multi billion dollar project in Tunisia.

Daily Al Watan citing Mr Fawzy al Jouder MD of Al Mal Investment Company reported that the firm is qualified by the Tunisian government to submit a bid to build a port under the build, operate and transfer system that could cost EUR 1.4 billion (USD 2.22 billion).

Mr Jouder said that the firm is also studying investing in infrastructure projects in Kuwait worth more than USD 377 million and is eyeing overseas investments of more than USD 200 million in the power sector. He said that the company is currently studying projects in other sectors and in different geographical locations in infrastructure, power, health and telecommunications sectors.

DP World releases update for H1 of 2008

Global marine terminal operator DP World announced that those terminals which are consolidated1 for accounting purposes reported a throughput of 13.6 million TEU for the first half of 2008 up by 21% over the same period last ear.

It said that “This increase in volumes was driven by excellent performance from our terminals in the Australia, India and Middle East regions, the latter two regions benefiting from cargo formerly destined for the US being redirected into markets in India, Middle East and Africa.”

The two Dubai ports of Jebel Ali and Port Rashid combined grew 17% to reach 5.8 million TEU for the first half of 2008.

Mohammed Sharaf CEO of DP World said that “Our consolidated terminals have made a very pleasing start to the year with 21% volume growth driven by our focus on the faster growing emerging markets along the Asia-Europe trade routes and our success in rolling out capacity in those markets which are capacity constrained and where our customers are focused. These strong volumes across all regions are expected to deliver good first half financial results well ahead of the same period last year.”

He added that “We expect to report revenue growth ahead of volume growth and stable to improving EBITDA margins for the first half of 2008. Whilst we recognize that the business has performed well in the first half of 2008, benefiting from our global portfolio and our exposure to the faster growing emerging markets on the Asia-Europe trade route, looking ahead, despite global financial and economic uncertainties, we believe we will continue to outperform the market for 2008 and expect to deliver full year results in line with expectations.”

Abu Dhabi Ship Building to offer new services

Khaleej Times reported that Abu Dhabi Ship Building Company has agreed to form a new JV company, to provide a complete range of non core naval support services like fleet management, repairs and maintenance, base management besides others, as the UAE Navy is outsourcing some of its non core logistical services, in near future.

Mr William Saltzer CEO of ADSB said that ADSB will be a strong contender for the tender to be invited, early next year, after signing an MoU for a JV with BVT Surface Fleet Limited, a UK based shipbuilder and naval service provider.

He said that the new company will offer a range of integrated logistical services like fleet management; logistics support services, naval base management, procurement of spares and training of technical staff for navies, coast guards, marine police, homeland securities organizations, special forces not only in the UAE, but in the MENA region also.

Mr Salzter said that a long term contract will help execute the project with professionally, besides giving room to the new company. He said that the JV will be the first of its kind in the region, where a locally based, world class, naval shipbuilding company has teamed up with one of the world's leading providers of through life naval support services.

Mr Abdulla Nasser bin Huwaileel Al Mansouri chairman of ADSB said that there was a huge scope for the naval services company, which was a new business. There are around 500 naval ships in the region, which gives an idea of the potential of their fleet management and other services.

He said that ADSB is already an important strategic asset for naval customers in the GCC. The chairman also said that military vessels and the equipment carried on board were complex and sophisticated requiring a high degree of support.

Iran plans investment company for shipping sector

Fars News Agency reported that a shipping and shipbuilding investment company, the first in the country in Iran is to be established by the Iranian Mines and Mining Industries Development and Renovation Organization to support and make maximum use of the capacity of domestic shipbuilding companies.

Mr Ahmad Qalehbani MD of IMIDRO said that IMIDRO has prepared facilities and infrastructure for building ships during its one decade support and investment in shipping industry bodies such as Arvandan, ISESCO and Sadra.

He added that “However, these capacities and investments have remained unused in the absence of legal support, failure to continue investment and less cooperation of shipping companies in ordering ships from domestic shipbuilders.”

Mr Qalehbani said that the company will be established to take maximum advantage of legal and financial capacities for improving the shipbuilding industry, help it meet domestic demand and step into global markets.

Amana bags contract for Tabreed Cooling Plant at Al Rigga Metro Station

It is reported that Amana Contracting & Steel Buildings has been awarded a contract to construct the Tabreed District Cooling Plant at Al Rigga Metro Station for SNC Lavalin.

The report added that due to height restrictions in the area, the 2,600 square meter facility, located at Al Rigga Union Sqaure will consist of a ground floor and 2 basements levels. The high density traffic in the area provides a challenge in that work will have to take place during off-peak times, primarily at night.

Amana Contracting and Steel Buildings is a leading regional turnkey contractor with twelve operational offices in Middle East.

Arabtec wins USD 163 million building deal from Emaar

Reuters reported Arabtec Holding saying that it had received an AED 599 million building contract from Emaar Properties.

As per report under the deal, Arabtec would design and build 550 villas for the Warson Development in Dubai.

The report added that construction of the villas will take place over 30 months. Emaar is the largest Arab developer by market value.

Chinese steel sector performance in H1 of 2008

It is reported that in H1 2008 China major metallurgical product shows a great increased, crude steel product in June 2008 reached 46.94 million tonnes up by 10.1% YoY as compared to 42.61 million tonnes in June 2007, whereas in H1 of reached 263.19 million tonnes up by 9.6% YoY as compared to 240.12 million tonnes in H1 of 2007.

Pig iron production in June 2008 reached 43.39 million tonnes up by 6.8% YoY as compared to 40.60 million tonnes, H1 of 2008 reached 246.42 million tonnes up by 7.8% YoY as compared to 228.39 million tonnes in H1 of 2007.

(In million tonnes)

(Sourced from MySteel.net)

Jinan secures largest market share for SBQ plates in China

It is reported that shipbuilding plate made by Jinan Steel successfully won the largest market share in China in H1 of 2008, with high grade shipbuilding plate representing 48.9% of the total shipbuilding plate.

The steelmaker focuses on structure adjustment, internal potential exploitation and quality improvement this year, despite snowstorms, earthquake, strained transportation and electricity supply, surging prices for raw materials and obsolete capacity elimination.

China steel product output in H1 2008 up by 12.5% YoY

It is reported that China steel product output in H1 of 2008 reached 299.97 million tonnes up by 12.5% YoY as compare to 266.6235 million tonnes in 2007.

(In million tonnes)

Wugang profit in H1 up by 20% YoY

China Daily reported that Wuhan Iron & Steel Group posted a one fifth growth in H1 profit on increased sales and cost cutting efforts.

Wugang said that its H1 of 2008 profit rose by 20.48% YoY to a record CNY 6.05 billion laying a solid foundation for its target of earning CNY 10 billion for the whole of the year. It sales revenue reached CNY 63.18 billion in the first six months up by 89.78% YoY compared to the same period last year.

Meanwhile, its crude steel production increased by 54.93% to 11.26 million tonnes. The group had earlier said that it expected to produce 22 million tonnes in 2008.

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

Shouqin starts construction of processing and distributing center

Heibei daily reported that Shouqin steel processing and distributing center project in east area of Qinhuangdao development zone has started construction on July 18th. Once completed, it will deal with some 500,000 tonnes of steel sheets and plates annually.

According to the report, this project is crucial for Qinhuangdao Shouqin Steel Machinery & Delivery Co Ltd to expand its business to equipment manufacturing and develop into an international steel company. It's also one of the major equipment manufacturing projects beside the harbor in the city.

The products made by the center will be used for pretreatment of ship building, block manufacturing of ships and heavy machinery engineering and steel structure making.

China to build 2 steel plants in Indonesia

It is reported that China Steel Resources Holding Company will build two steel factories with a combined capacity of 3 million tonne per annum in Indonesia.

As per report the construction of the steel plants will be carried out in two stages within a span of five years with the first plant to be built at Banjarmasin in South Kalimantan.

Mr Achmad Kurniadi of the Investment Coordinating Board on the sidelines of an international convention of Chinese businessmen said that "In the first stage, the steel plant to be built will have a capacity of 1.5 million tons in Banjarmasin. It will be followed by the construction of another plant with a capacity of 1.5 million tonne in the second stage.”

He said the location of the steel plant that would be built in the second stage had not yet been decided.

Mr Achmad hoped that Chinese investors attending the convention would be attracted to make their investment in other sectors such as the manufacturing and transportation sectors. He added that "The Chinese investors have looked at the mining sector in the country and we are waiting for their investments in the transportation sector as well.”

Handan Steel maintains EXW prices firm

It is reported that Hebei based Handan Steel has released its latest EXW prices for some products. Prices are maintained flat with that published on July 18th.

Common Carbon Wire Rod unchanged.
Q215 to 235A/B 6.5mm to12mm wire rod is priced at CNY 5780 per tonne
Q215 to 235A/B 6.5 to 12mm high speed wire rod at CNY 5880 per tonne.

Rebar unchanged.
HRB335 12mm rebar is offered at CNY 5910 per tonne
HRB335 14mm rebar at CNY 5860 per tonne
HRB335 16mm to 25mm rebar at CNY 5710 per tonne.

Common Carbon Medium Plate unchanged.
Price for Q235B 14mm to 25mm medium plate stands at CNY 6700 per tonne
Low alloy plate is subject to a premium of CNY 180 per tonne on the basis of that for common carbon plate.

Shipbuilding Plate unchanged
CNY 50 per tonne higher for plate with thickness of 50mm or more.
CCSA20mm shipbuilding plate is quoted at CNY 7695 per tonne.

Round Steel unchanged.

Latest EXW price for Q215mm to 235 16mm to 25mm round steel prevails at CNY 5750 per tonne.

Prices listed above are INCLUSIVE of 17% VAT, effective as of July 18th.

(Sourced from MySteel.net)

Ningbo Steel H1 2008 reach CNY 348 million

It is reported that Zhejiang based Ningbo Iron & Steel Co yielded 271,500 tonnes of coke, 1.18 million tonnes of iron, 1.21 million tonnes of billet steel and 66,500 tonnes of finished products during January to June.

Ningbo Iron & Steel Co also sold 1.13 million tonnes of billet steel, 43,700 tonnes of finished products and 378,500 tonnes of tar and granulating slag etc in the same period with total sales revenue of CNY 5.39 billion and profit of CNY 348 million.

Ningbo Steel grows from the former Jianlong Steel, a private mill controlled by Tangshan Steel, which started building from June 2003. It is also the first complex steel company in Ningbo, with construction items including steel rolling, raw material, blast furnace, coking, sintering etc. The company is expected to form 6 million tonnes per year hot rolled sheet and plate capacity.

Anyang Steel H1 sales revenue hits CNY 28 billion

It is reported that Henan based Anyang Steel in H1 2008 churned out 4.45 million tonnes of iron up 1.21 million tonnes, 5.13 million tonnes of crude steel up by 1.15 million tonnes and 4.49 million tonnes of finished products up by 1.22 million tonnes YoY respectively with sales revenue of CNY 28 billion up by CNY 13.4 billion from last year.

Anyang Steel also speed up energy saving production in the same period. In the first half, the steel mill generated 248 million KWH of electricity by using waste heat and energy, 126 million KWH more than the same time last year which lessened its power purchase costs by CNY 130 million.

The mill also gained CNY 5.69 billion of sales revenue by its non steel industry in the review period up by CNY 4.14 billion YoY.

Baosteel lightweight integrated innovation platform

It is reported that recently, the domestic first car lightweight integrated innovation platform was formally completed by Baosteel Academe.

The platform is formed with hydraulic pressure, hot striking out and laser welded pipe technologies, will have an important role on China’s auto industry green manufacturing technology.

Since 2003, Baosteel launched the pre research work of hydraulic pressure figuration, hot striking out figuration and laser welded pipe, and visited some domestic automobile producers and then formally launched the research project.

This platform has techniques design, mold development etc functions, the overall equipment reaches international advanced level, breaks through the foreign countries’ monopoly.

Terra Nostra total revenue in 2008 to go up by 86% YoY

It is reported that Terra Nostra Resources Corporation expects a 13% increase in revenue for the Q4 of this fiscal year, based on a preliminary review of production volumes and revenues provided by its joint venture partner.

As per report, Terra Nostra Resources Corporation will report revenue of approximately USD 123 million bringing its total fiscal 2008 revenue to up by 86% YoY to USD 532 million from the fiscal 2007’s revenue.

Mr Don Nicholson president of Terra Nostra said that “These preliminary fourth quarter results as reported to Terra Nostra will cap a year of planned execution of our growth strategy and increased value added down stream production.”

The US based company is a majority owner of two joint venture companies in the copper and stainless steel industries in China.

Qingdao Steel H1 sales revenue up by 42.69% YoY

It is reported that Qingdao Iron & Steel Group in H1 2008 reaped CNY 21.4 billion of sales revenue up by 42.69% YoY or CNY 6.42 billion from CNY 15 billion of the same time last year with value added tax of CNY 385 billion up by 9.7% YoY or CNY 34.04 million from CNY 350 million of last year.

As per report, the mill edged to the No 2 place in terms of value added tax from No 3 last year in local, only next to Haier Group.

Hunan Valin to issue CNY 1.5 billion in 365 day debt

XFN Asia reported that Hunan Valin Steel Tube & Wire Co Ltd will issue up to CNY 1.5 billion worth of 365 day short term debt on July 28th.

Hunan Valin Steel Tube & Wire Co Ltd in a statement said the company yield will be determined through book building on the day. It said proceeds from the bond issue will supplement working capital and help pay down bank loans.

Bank of China Ltd will be the lead underwriter.

CITIC's H1 2008 profit slowed to 13.3%

Shanghai Daily reported that CITIC Securities Co first half profit growth slowed to 13.3% as the nation's stock market slumped about 48%.

According to a statement from the Beijing based Securities Company citing unaudited figures in a mandatory profit warning that net income rose to CNY 4.8 billion in the six months ending June 30 from a year earlier. CITIC earned CNY 4.2 billion in the first half last year. The company's profit doubled in the first quarter this year.

The stock market decline is cutting earnings from commissions and proprietary trading after surging profits last year when the nation's stocks almost tripled in value. Investors traded shares in about 10 million stock accounts, or 8.5% WoW of the nation's total, in the last week of the first half compared with 19% in the first week.

CITIC's earnings per share declined 49% to CNY 0.72 compared with CNY 1.41 a year earlier after the company's total outstanding shares were diluted to about 6.6 billion as of the end of June from about 3 billion a year earlier.

Anhui Conch shares slide on coal over 4%

Reuters reported that shares in Anhui Conch, China's largest cement maker slid over 4% after investment banks downgraded the firm on fears soaring energy prices will squeeze margins for the building materials sector.

According to the report, Goldman Sachs cut Conch and rival China National Building Materials to sell from neutral, citing potential difficulties in passing on climbing coal and power prices.

Morgan Stanley last week trimmed forecasts on Conch's earnings for the same reason.

Marubeni support Chalco to build Vietnam alumina plant

Bloomberg reported that Marubeni Corp, a Japanese trader of commodities from metals to grains will provide support, including logistics and administration, to Aluminum Corp of China Ltd to build an alumina refinery in Vietnam.

Marubeni in a statement said that China Aluminum International Engineering Co, a unit of Aluminum Corp known as Chalco won a contract from state run Vietnam National Coal Mineral Industries Group to build the plant with an annual production capacity of 600,000 tonnes. It said the total contract value for the refinery is about JPY 50 billion and the plant is scheduled for completion in 2010.

Alcoa in a statement on June 24th said that that it may buy a stake in a proposed 600,000 tonne alumina refinery in Vietnam through a joint venture with Alumina Ltd. The statement said Alcoa World Alumina and Chemicals 60% owned by Alcoa is considering buying a 40% stake in the proposed Nhan Co refinery and nearby bauxite mine in southern Vietnam.

Alcoa said that if the transaction proceeds, Nhan Co will be 51% owned by Vietnam National Coal-Mineral Industries Group or Vinacomin and the remaining 9% will be controlled by other investors.

China Railway wins USD 1.55 billion rail contract

Reuters reported that China Railway Group has won a railway construction contract worth CNY 10.58 billion (USD 1.55 billion).

China Railway Group in a statement said that the value of the contract to build passenger rail links between Beijing and the northern Chinese city of Shijiazhuang is equivalent to 5.9% of its 2007 sales under domestic accounting standards.

Annual growth of construction steel demand not to stand below 6% - Mr Wu Xichun

Mr Wu Xichun Counselor of China Iron & Steel Association in the 2008 working conference of China Metallurgical Industry Planning & Research Institute talked about how to make the big steel industry more powerful.

Mr Wu said to pay attention to the effects on the steel industry's development lent by uncertainties and instabilities of home and global economy and to coordinated capacity growth of all kinds of steel product varieties.

He said that the basic national situation, annual demand growth of long steel products for construction would not stand below 6%. The condition that is quite a few steelmakers are cutting longs production capacity and expanding sheet/plate/strip outputs is blind and should arouse concern.

(Sourced from MySteel.net)

Tonghua Steel H1 sales revenue reach CNY 17 billion

It is reported that Jilin based Tonghua Iron & Steel Group Co Ltd has reaped sales revenue of CNY 17.08 billion in the H1 of 2008 with pre tax profit of CNY 2.39 billion and profit of CNY 1.35 billion.

Tonghua is one of the largest steel complex in Jinlin province and ranks No 163 in China's manufacturing industry, with annual capacity of 7 million tonnes of crude steel. The steelmaker is ambitious to achieve 10 million tonnes of crude steel capacity per annum in the coming years.

Tonghua Iron & Steel Mining Co Ltd a subsidiary of TGGC has spent AUD 13.93 million to buy a 9.99% stake in Australian IMX in January 2008 and becomes its largest shareholder.

Chinalco orders three ingot scalpers

SMS Meer has announced that Aluminum Corporation of China Chinalco China has placed an order with SMS Meer for the supply of three scalpers for aluminum ingots. The ingot scalpers will be employed in Chinalco Chinese aluminum rolling mills and are designed to meet the specific requirements of each mill, namely for the production of film and strip and for sheet production for the aviation and aerospace industry.

According to the release, the scalpers will be installed upstream of the hot rolling mill to remove the oxide skin and metallurgical impurities from the outer surface of the ingots. Scalping is performed in two steps, with the ingots being rotated by 180 ° between the scalping steps. The scalpers are equipped with a horizontal scalping head for the main surfaces and two edge scalping heads for the side surfaces of the aluminum ingots.

The released added that the use of the integrated edge scalper reduces the percentage of trimming scrap in the subsequent hot rolling process and at the same time prevents soiling of the work rolls in the hot mill. The ingot scalper is characterized by its high rigidity to guarantee the surface qualities in the μ range even with hard aluminum alloys.

SMS Meer is to supply the complete engineering for the associated transport system with roller tables, the drum type turn over device and the chip exhaust system. The exhausted scalping chips are broken into short pieces by a chip breaker from SMS Meer and can be melted down again. The scalpers are scheduled to go into operation at the end of 2009.

Chelyabinsk Steel doubles RAS net profit in H1 2008

Interfax reported that OJSC Chelyabinsk Iron & Steel Works a subsidiary of the Mechel Group posted net profit according to Russian accounting standards of RUB 6.942 billion in the first half of 2008.

OJSC Chelyabinsk Iron & Steel Works said its materials that net profit in the first and second quarters of 2008 came to RUB 2.298 billion and RUB 4.644 billion respectively.

According to the company's quarterly financial report, net profit in the first half of 2007 came to RUB 3.228 billion. Therefore, net profit in the first half of 2008 increased 115% YoY. In addition, the company said that net profit doubled in the second quarter of 2008, largely driven by price increases and positive Forex trends.

OJSC Chelyabinsk Iron & Steel Works is one of Russia's leading metal roll produces.

Severstal to sell USD 1 billion of bonds - Report

Bloomberg quoted a banker with knowledge of the transaction said OAO Severstal, Russia's biggest steelmaker is planning to sell USD 1 billion of five year bonds.

The banker who declined to be identified before the deal is completed said ABN Amro Holding NV, Citigroup Inc. and BNP Paribas SA are organizing the sale of the notes, which will probably yield about 10 percent.

According to data compiled by Bloomberg Severstal has USD 700 million of bonds outstanding, including USD 325 million due next year. The company is rated Ba2 by Moody's Investors Service, two steps below investment grade. Standard & Poor's rates it an equivalent BB.

MMK inks long term supply agreement with tube majors

It is reported that MMK has signed a long term supply agreement with local major tube manufacturers. Based on the agreement, MMK will provide steel coils and sheets by fixed price to OMK, TMK and ChTPZ.

The validity of the period is from July 1st 2008 to April 1st 2009. This long term agreement will help control and release the pressure from unreasonably rising steel prices in the Russian domestic market.

Rautaruukki to start making waste treatment containers in Russia

Rautaruukki has announced that it will expand its operations in Russia and start fabrication of waste treatment containers for the growing Russian market.

The containers are to be fabricated in cooperation with Europress Group Ltd, the leading manufacturer of waste handling equipment in the Nordic countries. Ruukki and Europress have agreed on long term cooperation in fabrication.

According to the release, the containers will be built at Ruukki’s plant in Obninsk near Moscow. The first containers built by Ruukki will be delivered to Europress in autumn 2008.

Mr Matti Turunen MD of Europress Group said that “Ruukki offers us an opportunity to focus on building and capturing the market in Russia. Ruukki’s sound expertise in materials and parts processing eliminates any need to commit our companys time and resources to these. In addition, the location of Ruukki’s service centre in Obninsk is optimal for our customers.”

Mr Olavi Huhtala President of Ruukki Metals said that “The fast growing waste management segment and the large Russian market are a combination to which Ruukki can deliver unique expertise, to the advantage of its customer. Smooth cooperation within the production chain and our local presence are reflected on the end customer, especially in the delivery speed.”

Having had a strong presence in the Russian steel construction market since 2006, Ruukki now has some 2,100 employees in Russia. A steel service centre geared towards mechanical engineering customers is currently under construction alongside Ruukki’s production plant in Obninsk. Ruukki also maintains a steel service centre in St Petersburg, as well as sales offices in Moscow, St Petersburg and several other Russian growth centers.

PSI bags 2 orders from ChTPZ Group

Together with their Russian partner Malahit, PSI has been charged by the ChTPZ Group with the supply of a warehouse and transport management system for the Chelyabinsk large tube plant as well as advanced line sequencing and production execution system for the coating line within the tube welding complex in Chelyabinsk.

Both solutions are based on the industry standard PSImetals, which has already been implemented in the course of two projects for the ChTPZ Group. The commencement of operations for the systems is planned for the second half of 2009.

The objectives of the PSImetals WTM implementation are the optimal utilization of the automatic transport devices and the warehouse of the large-tube plant as well as the optimization of the entire logistics process. With PSImetals PES, the direct exchange of information between the plant control and the enterprise software will be guaranteed.

Malahit is a Russian IT provider, which has more than 15 years of experience in the planning, development, implementation and maintenance of ERP software in the metallurgic industry. PSI had already obtained two contracts for sequencing and production execution for the ChTPZ Group plants in Chelyabinsk and Pervouralsk. With the current follow up orders, PSI is further expanding its position in the high-growth Russian steel industry.

Hyundai Motor starts production at assembly plant in Ukraine

Yonhap reported that South Korea's largest automaker Hyundai Motor Co has started commercial production at its assembly plant in Ukraine stepping up its foray into the eastern European car market.

Hyundai official said the facility at Cherkasy in central Ukraine has assembled Hyundai's small sport utility vehicle Tucson from kits imported from South Korea.

Stakhaniv Railcar H1 2008 output up by 10% YoY

According to the press service of Stakhaniv Railcar Plant, the plant increased its freight railcar output to 3,380 units up by 10% YoY in H1 2008. This helped SVGZ to be ranked the 3rd largest railcar manufacturer in Ukraine and the 5th in the CIS.

Over the period SVGZ increased the output of gondola cars to 2,546 up by 138.7% YoY and climbed to 2nd position in the CIS league table of the largest manufacturers of this highly desired type of freight car. The press service also announced that the company is considering offers from leading EU railcar manufacturers to work together.

Millenniun Capital analyst said that “The news is positive for SVGZ. Based on the H1 2008 production volumes we see that the company's earlier plans to increase the output of freight railcars to 6,600 up by 19% YoY are quite realistic. Moreover, the growing share of gondola cars to 76% currently in the plant’s output promises increased top and bottom lines. We believe that building a reputation as a leading gondola car manufacturer in the CIS and possible partnerships with the leading railcar manufacturers of the EU will add some value to SVGZ’s stock. We look positively at the stock and recommend accumulating it.”

(Sourced from Millennium Capital)

Novorossiysk Port cargo turnover in H1 up by 0.4% YoY

Interfax reported that Novorossiysk Commercial Sea Port increased cargo turnover by 0.4% YoY in the first half of 2008 to 39.2 million tonnes.

Gazprom Neft net profit in Q1 2008 up by 110% YoY

RIA Novosti reported that Gazprom Neft net profit to US General Accounting Standards increased 110% YoY to USD 1.41 billion in January to March.

According to the report, the oil producing arm of Russian energy giant Gazprom said its net profit was up 6.6% on the fourth quarter of 2007. Earnings in the reporting period rose 90% to USD 7.87 billion and 22.5% QoQ. EBITDA was up by 83.9% YoY at USD1.92 billion and up by 15% on October to December 2007.

Gazprom Neft, known as Sibneft before it was taken over by Gazprom in September 2005, stabilized crude output at 32.7 million tonnes in 2007 the same production level as in 2006. The company plans to boost annual crude output to 90 million tones to 100 million tonnes by 2020.

Gazprom owns 75% stake in the company and another 20% belongs to a consortium of Italy's ENI and Enel.

AK Steel to expand electrical steel production

AK Steel announced that its board of directors has approved a USD 21 million capital investment to further expand the company's production capabilities for high value added, grain oriented electrical steels that are currently in strong demand in both US and global markets.

The project includes installation of new production equipment at the company's Butler, Pennsylvania Works to utilize AK Steel's proprietary special annealing technology, as well as upgrades to an existing processing line at Butler. In addition to enhancing production capacity for higher quality grades of electrical steels, the project will also help improve the company's product mix flexibility. The project is expected to be completed in late 2009.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "AK Steel continues to respond to strong customer demand for our grain oriented electrical steels. This latest capital investment will help AK Steel further serve the growing domestic and international markets for some of our highest energy efficiency and highest valued products."

Mr Wainscott said that the capital investment announced today is an addition to a previously announced project currently underway at AK Steel's Butler, Pennsylvania and Zanesville, Ohio plants, which is the company's fourth project in the past four years to expand production of electrical steels.

Timken raises Q2 and full year earnings estimates

The Timken Company announced estimated second quarter 2008 earnings per diluted share of approximately USD 0.92. Excluding the impact of special items, the company estimates second-quarter earnings per diluted share of approximately USD 0.96. This compares favorably with the company’s previous estimate for the second quarter of 2008 of USD 0.73 to USD 0.83 per share, excluding special items.

The difference between reported and adjusted earnings per diluted share is due primarily to manufacturing rationalization, impairment and restructuring charges, net of tax. Second quarter performance benefited from the company’s ability to capitalize on strong industrial markets, with higher volume, improved mix and better execution more than offsetting the impact of declining automotive demand.

Mr James W Griffith president & CEO of Timken said that “We continue to build momentum as we shift the company’s profile toward attractive global industrial market sectors where demand remains at historically high levels. As we improve our ability to leverage this strong demand with business process improvements, better execution and new capacity, we expect to achieve record earnings in 2008.”

Indonesian government renegotiates nickel royalty with Inco

ANTARA News reported that the Indonesian government and PT International Nickel Indonesia are renegotiating royalty on nickel produced by the subsidiary of the Canadian based INCO Limited and an agreement is expected to be signed in September.

Mr MS Marpaung Coal Development Director said that from 1995 to June 2008, nickel royalty was based on the nickel price at the London Metal Exchange market.

He said that renegotiation is made after Inco secured the extension of its contract last month.

Mr Marpaung said that Inco proposed that royalty be based on ore production, but the proposal was rejected by the government, which wants to maintain the old system.

Latrobe Specialty Steel announces end of labor dispute

Latrobe Specialty Steel has welcomed the news that Local 1537 of the United Steelworkers approved the collective bargaining agreement negotiated Friday evening and that the twelve week work stoppage is ending.

Mr Hans Sack president & CEO of Latrobe Specialty Steel said that “I know that I speak for every Latrobe Specialty Steel employee when I say that we appreciate the return of our hourly colleagues. We have reached an agreement that enhances our competitive position. This agreement ensures five years of labor stability.”

He said that “During the twelve week strike, the company was able to serve its customers without interruptions due to the tremendous effort of the salaried workforce. They have my admiration and gratitude.”

He concluded that "Our focus now will be on creating a high performance culture and to enhance our position as a leading global metals producer. All Latrobe Specialty Steel employees will work together to further improve safety, productivity, quality and customer service.”

Kennecott to upgrade molybdenum processing facility

Kennecott Utah Copper is preparing to take advantage of the current demand for molybdenum by building its own Molybdenum Autoclave Process facility. Construction of the new facility is expected to begin in the fall and should be complete by June 2010, with the first products available by November 2010.

Rio Tinto, the parent company of Kennecott Utah, will invest USD 270 million in the construction of a 250,000 square foot multi building facility just north of the Kennecott refinery, located west of Magna in what once was known as Garfield. The new MAP facility will be built on approximately five acres along Highway 201. It will consist of an autoclave, a leeching area, a purification area, a crystallization area and a drying, packaging and warehousing area. The facility will also include an office building, a laboratory and a maintenance facility.

The MAP design includes a number of energy conservation features and an environmentally responsible technique for producing molybdenum products. A steam recovery system will be included to capture excess steam from the autoclave for use in downstream processes. The recycle system will supply about 40% of the plant's thermal requirements and emit significantly less sulphur dioxide and carbon dioxide by processing molybdenum concentrate through MAP.

In the new MAP facility, will be able to produce a higher quality of molybdenum by using a new process that was created by KUC. The new facility will have the capacity to produce 30 million pounds of molybdenum per year.

Mr Doug Stauffer project manager of the new facility said that "The benefit of the plant is that we improve recovery so we will be able to retrieve more molybdenum from our current resource. We will be able to produce a higher purity material and we will also be able to produce a metal called rhenium, which is an additional metal that we don't current produce."

During the past five years molybdenum typically a byproduct of copper production and used in metal alloy to enhance toughness, high temperature strength and corrosion resistance in steel has increased in price going from about USD 3 per pound in 2004 to more than USD 30 per pound in today's market.

Oxiana produces first nickel output from Avebury

It is reported that Oxiana Ltd has produced its first nickel concentrate at the Avebury nickel mine in Tasmania.

Oxiana said that the commissioning of the processing plant has gone to plan and the operation is now set to ramp up to full production over the next quarter to achieve an annualized production rate of 8,500 tonne of nickel in concentrate.

Oxiana said first commercial sales are expected in August from Avebury and that there is significant exploration potential around the mine with an exploration drilling program underway.

Zinifex acquired Avebury last year in its AUD 852 million takeover of junior miner Allegiance Mining NL.

Norilsk Nickel announces completion of the USD 1.5 billion syndication

OJSC MMC Norilsk Nickel announced the successful closing of the USD 1.5 billion syndicated facility which was signed on June 17th 2008. The Facility was used for the refinancing of the USD 2.5 billion short term facility provided last year by BNP Paribas and Société Générale Corporate & Investment Banking for the purposes of the acquisition by the Company of all of the outstanding common shares of LionOre Mining International Limited.

The USD 1.5 billion syndicated facility has a tenor of 3 years and structured in form of:

1. USD 750,000,000 amortizing nickel and/or copper pre export Term loan facility
2. USD 550,000,000 revolving nickel and/or copper pre export loan facility
3. USD 200,000,000 unsecured revolving loan facility.

The facility was arranged and fully underwritten by the Bank of Tokyo Mitsubishi UFJ Ltd, Bayerische Hypo und Vereinsbank AG, Calyon, ING Wholesale Banking, Société Générale, Sumitomo Mitsui Banking Corporation, The Royal Bank of Scotland Plc and WestLB AG .

SG CIB is acting as Coordinating Mandated Lead Arranger, Documentation Agent and Coordinating Structured Rate Provider.
Calyon is acting as Facility and Security Agent and Structured Rate Provider.

Commerzbank A