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 an 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.

SAIL will decide on price hike in August

During a CNBC-TV18's exclusive interview, Mr SK Roongta chairman of SAIL said that the company would take a call on whether to increase prices next month. He said the company hopes to maintain margins but it depends on how things unfold going forward.

While answering to the price squeeze in last three months, Mr Roongta said that “We have taken a lot of internal actions to improve productivity. Overall, sales have been higher by 6%. Domestic sales come in higher by about 10%, while those of value added products had gone up by almost 50%. As consumption comes down, our other techno-economic parameters have improved. Although we have held on to prices which were prevailing in March, this price level was much higher than the price prevailing in Q1 of 2007-08.”

On the issue of cost pressures on margins, he said that “In Q1, EBITDA margin were about 29%. We hope to maintain these, but let’s see how things unfold. In the coming quarters, we have tremendous cost pressures to contend with, especially related to imported coal, although indigenous coal cost increase has already been accounted for in Q1.”

Mr Roongta added that “We have had tremendous input cost pressures, which we have to encounter from July August onwards. Domestic prices are much lower than international prices. We will take a call with regard to prices when this commitment period ends sometime in first week of August.”

Essar starts work on pallet plant in Orissa

BS reported that Essar Steel Limited has started work on its 6 million tonnes steel project at Paradip in Jagatsingpur district.

Essar is investing INR 20,000 crore in the project. In the first phase, it is putting up an 8 million tonnes iron ore pellet plant with a 253 kilometer long pipeline from Joda to Paradip at a cost of INR 2,700 crore. Plant, pipeline and steel making facilities will be ready by 2010 and 2012.

Mr HS Sethi director of Essar Steel Orissa said that “Civil construction work has started on 104 acre now at our disposal. Instead of waiting for completion of the total land acquisition, we have commenced work on whatever land is available to us.” He added that the progress of pipeline laying work and acquiring the rest of the land was also satisfactory.

Mr Sethi said that “We have already committed INR 6,000 crore for the project. Of this, INR 4,000 crore will be used for booking equipment. Our project is well on schedule and it will come up within the targeted time frame.”

He added that “We are quite hopeful of getting the iron ore mines linkage. The state government has assured us of the required raw material supply for the pellet plant.”

Essar has applied for iron ore mines linkage for the plant. The company has an eye on Thakurani mines which is rich in high grade ores. Essar which at present has a steel making capacity of 4.6 million tonnes has also signed MoUs with the Jharkhand and Chhattisgarh governments to set up projects of 6 million tonnes and 4 million tonnes.

Costs putting pressures on SAIL margins

Bloomberg reported that Steel Authority of India Limited, while reporting its quarterly results, expressed concern on increasing input costs.

Mr SK Roongta chairman of SAIL in an interview said that “We were paying USD 98 tonnes of coking coal. That has gone up threefold to more than USD 300 tonnes. Shipments at new contract rates began in July so there will be pressure on margins.

He said that “We have been able to register growth because we increased output of value added steel and improved efficiencies. But fixed costs are increasing. We need to raise prices to maintain margins.''

He added that “You have to take into account the base effect. In absolute terms, it will still continue to be higher so there's no cause of concern. As far as India is concerned, we continue to need more and more steel. We are concentrating on ramping up our capacity.''

PSL Ltd net in Q1 up by 59% YoY

Reuters reported that Indian pipe major PSL Limited’s quarterly profit went up by half on heavy orders as soaring crude oil prices boosted demand for pipes from explorers and oil & gas transporters. As per report PSL recorded net profit of INR 260.4 million in April to June up by 59% in net sales to INR 6.5 billion.

Mr Ashok Punj MD of PSL Ltd said that an unprecedented rise in prices of crude oil makes it worthwhile for exploration companies to push the boundaries to find new deep sea deposits. He said that "With crude at over USD 140 a barrel, these marginal fields have suddenly become productive. That is the kind of pull oil prices have on pipe demand."

Mr Punj said that "We are determined to further enhance our order book position and execute it in a timely manner given our large capacity preparedness. He said that we have kept it at bay till the market settles down. Equity is not an option. We can't even defer the projects as demand is pulling our capacities."

Dr Mukherjee becomes fellow of Royal Academy of Engineering

Dr T Mukherjee group director for technology and integration of TATA Steel has been elected as an international fellow of the Royal Academy of Engineering in UK.

The academy is the national academy of engineering in UK, which brings together the country's most eminent and distinguished engineers from all disciplines.

Bharati to set up second mega shipyard near Bhavnagar

Exim News Service reported that Bharati Shipyard, a leading private sector shipbuilding company headquartered in Mumbai, has reportedly drawn up an outline of a mega shipbuilding project entailing an investment of INR 1,500 crore to be set up near Bhavnagar in Gujarat.

The amount will be invested in 2 phases for the proposed yard which would be located in the Gulf of Khambhat. In the first phase, it plans to pump in INR 600 crore and in the second around INR 900 crore. The company may also increase INR 400 crore to INR 500 crore through an initial public offering or foreign currency convertible bonds while the rest may be funded through a combination of instruments including internal accruals.

The company is planning to construct 100,000 DWT vessels and offshore supply vessels at the proposed facility. However, execution of the project and land acquisition depends on the approval of detailed project report by the state government.

Bharati manages shipyards at Ratnagiri and Ghodbunder. Bharati had last year signed a 50:50 JV with Apeejay Shipping, another large private ship owner for setting up a modern shipbuilding yard along the East Coast.

Remi Metals to induct Welspun and Widescreen as co-promoters

It is reported that steel tubular product maker Remi Metals Gujarat said that it will induct Welspun Power and Steel and Widescreen Holding as co promoters to pump in INR 43.48 crore as equity for one time settlement of its secured term loan and CAPEX requirement to BFIR.

Remi Metals Gujarat Limited said in a filing to the Bombay Stock Exchange. The existing promoters of the company will bring in INR 12.03 crore while INR 1.97 crore will be routed through financial investor. Additionally, the company will arrange to bring further debt up to INR 97.50 crore to meet the one time settlement and other requirement.

Decision to this effect was taken by the company's board of directors in a meeting held yesterday. The company had submitted its rehabilitation scheme to the Board of Industrial and Financial Reconstruction which is due to hear it on July 24th 2008.

Indian Steelmakers Directory 2008

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

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

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

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

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

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

Look at the information you'll get in the 'Indian Steelmakers Directory'

• Company name -723 entries
• Address-723 entries
• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Gangavaram Port to get commissioned soon

Exim News Service reported that Gangavaram port is scheduled to be commissioned in August or September with the completion of its first phase of construction.

The satellite port, which has been built by the private sector, will have fully mechanized 24x7 cargo handling operations. It is the country’s deepest with a draught of 21 meters and hence will be able to handle 200,000 DWT ships. It is expected to attract even super Capesize vessels.

The construction of 4 of the five berths has already been completed, as part of the first phase. It will have fully automated handling facility with conveyor belts.

As per report, Rashtriya Ispat Nigam Limited would be the biggest beneficiary as Gangavaram port is situated very close by. RINL can save up to INR 130 crore a year in freight cost, as at present it imports 4 million tonnes of coking coal and limestone through Vizag Port. The port will be expanded to handle 6.2 million tonnes of cargo by 2011 to 2012, as against the 3 million tonnes planned now.

DMRC revenues to exceed INR 2100 Crore by 2011 - ASSOCHAM

ASSOCHAM reported that revenue of Delhi Metro Rail Corporation is likely to shoot up by about 194% in next 3 years and touch INR 2100 crore as by then the DMRC would have successfully rented out most of its space along metro’s track lines for commercial utilization as well as advertisements, besides a vast majority of road traffic would have shifted on to Delhi Metro. In calendar 2007, the DMRC revenues earning stood INR.730 crore.

The aforesaid findings are arrived at a ASSOCHAM Forecast Paper on Future’s Revenue Growth of DMRC by 2011 which also specifies that Delhi Metro Revenue by 2011 would be as under

(In INR crore)

Mr DS Rawat general secretary of ASSOCHAM said that “Metro’s stations on both sides of the railway tracks would be filled with ATM machines for banking transactions and be occupied by food stalls serving tea, coffee, snacks and other beverages.”

Mr Rawat added that DMRC would earn 39% of its revenues by leasing out space to corporate for commercial use. Approximately 33% and 28% respectively by sale of tickets and space allocations for advertisers.

He said that metro’s projects would be expanded as its expansion is currently undergoing massive acceleration to generate 25,000 jobs for skilled and semi skilled workforce and become a lead body for providing employment. The jobs created by DMRC would greatly satisfy civil, mechanical, electronics and electrical engineers, besides technicians, station and train controllers, security personnel and other supporting staff.

According to ASSOCHAM estimates, Delhi and NCR’s working population presently commuting from Public Transport System and nearly 0.7 million commuters take to road transport which is cumbersome in nature. Their numbers are likely to go up by over 0.9 million by 2011.

TATA Power to take 26% stake in Dagachhu Hydro project in Bhutan

With reference to earlier announcement dated on July 21st 2008 titled "TATA Power takes 26% equity stake in 114 MW Dagachhu Hydro Electric Power Project being developed by The Royal Government of Bhutan", wherein was inadvertently mentioned that the Company had acquired 26% equity stake in 114 MW Hydro Electric Power Project being developed by the Royal Government of Bhutan, TATA Power Company Limited has now informed BSE that the Company has agreed to acquire the said stake.

TATA Power said that "TATA Power agrees to take 26% equity stake in 114 MW Dagachhu Hydro Electric Power Project being developed by The Royal Government of Bhutan."

Mr Prasad R Menon MD of TATA Power said that "This partnership consists of equity participation and off take of power by the company and TATA Power Trading Company."

As part of the partnership, TATA Power would acquire 26% stake in the project and TATA Power Trading has negotiated to purchase all the power generated from the project. TATA Power Trading will off take power from the project for a period of 25 years and the power will be delivered at India to Bhutan border Cochin Shipyard gets.

GE Shipping net profit for Q1 2008 down by 8% YoY

It is reported that Great Eastern Shipping Company’s net profit for the Q1 ended June 30th 2008 was down 8% YoY to INR 387.59 crore against INR 421 crore for the same period in 2007, because of a negative impact of INR 138.57 crore under exceptional item as per Accounting Standard 11th

As per the report, total income of the company was up by 14% to INR 992 crore, the freight and charter hire income was higher by 10%. Average earnings from crude carrier were up by 38%, while dry bulk earnings increased by 78%. Profit booked from sales of some of the older ships was also significantly higher at INR 253.92 crore.

Eastern Shipping said that pursuant to AS 11th the gains and losses increasing from the effect of changes in the foreign exchange rates on repayments of loans and revaluation of the outstanding foreign currency loans including currency swaps relating to ships acquired from a country outside India are included under exceptional item.

Mr KM Sheth executive chairman of Great Eastern Shipping in the annual general meeting said that “The company has signed a contract to build 2 new Suezmax vessels with Hyundai Heavy Industries. These ships will be delivered in 2011. He said that with the view to focus on larger ships the company will be taking delivery of four Long Range product tankers of about 74,500 DWT each over the next 9 months. The total CAPEX of the company is about USD 779 million or INR 3,350 crore as per current exchange rates. This includes 14 building new vessels aggregating 1.17 million DWT “

Mr Sheth said that “Based on this committed expansion, the company’s fleet will be about 3.77 million DWT with an average age of 8.8 years by the end of 2011 as against a fleet of 2.85 million DWT with an average age of 10.6 years today.”

Mr Manohar of RINL elected as national VP of ISTD

Mr Y Manohar director personnel of Rashtriya Ispat Nigam Limited is elected as national VP for Indian Society for Training & Development for the year 2008-09.

He has contributed extensively for the development of ISTD as Chairman of Vizag Chapter, Regional Vice President, National Council member etc.

ISTD is a premier national institution established in 1969 devoted to the cause of human resource development with international affiliations such as founder member of the major HRD network chains in the world. It has large membership of institutions and persons involved in the training and development of HR from government, public and private organizations and enterprises, educational and training institutions and other professional bodies. It has 39 chapters through out the country with the national headquarters at New Delhi.

HEC may face industrial unrest on wage revision

Ranchi Express reported that: HEC is all set to face a severe industrial unrest on the issue of wage revision of employees which is pending since 1997.

As per report, employees are working there on 1992 wage agreement and HEC has failed to revise its workers' wage since then.

The officer associations and different trade unions are repeatedly giving warning to the management for wage revision.

Last year, the central government had declared the revival plan for the company under which an agreement was reached between the ministry of heavy industries and HEC management to revise the workers' salary if the production in the company exceeded INR 300 crore to bring it into profit. Thereafter the workers started working hard and the production crossed that figure and brought the company into profit.

Steel pricing trends in India

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

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

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

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

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

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

Kerala to invest INR 120 billion to develop ports in 3 years

Mr M Vijayakumar ports minister of Kerala in response to questions in the state assembly announced that Kerala government will be investing INR 120 billion for developing ports in the maritime state within the next 3 years and the investments would be made with the participation of private parties.

He said that the state government has plans to set up a maritime board for the comprehensive development of the ports. The ports to be developed under the project include Azheekal, Kottayam & Beypore.

Detailed project reports are already in place in respect of Azhikkal and Beypore ports and the government is in search for consultants to implement the project. The federal government has included Azhikkal port in its National Maritime Development Program.

The port is proposed to be developed to the maximum possible capacity in phases and on modular basis at an investment of INR.20 billion. The Beypore port, which is the second biggest in the state after Cochin port is proposed to be developed as an all weather port through public private partnership.

Maruti profit down in Q1 despite sales increase

It is reported that Maruti Suzuki India Limited’s, maker of half the cars sold in India, first quarter profit that fell as lower taxes lured customers to its fuel efficient hatchback models.

Maruti Suzuki India Limited net income in the quarter ended June down by 6.6% to INR 4.66 billion from INR 4.99 billion a year earlier, the New Delhi based automaker said in a statement today. That beat the INR 4.39 billion median estimate in a Bloomberg survey of 11 analysts.

As per report, Maruti boosted car sales 13.5% in the Q1 as record fuel prices and lower taxes attracted more customers to its mini cars and hatchbacks. Still, auto demand in the world's second fastest growing major economy may slow this year as the central bank increase rates to cool 13 year high inflation.

The reported added that sales at the Indian unit of Suzuki Motor Corporation gained to INR 47.3 billion from INR 39.1 billion. Maruti spent INR 34.8 billion on raw materials including steel and components in the quarter up by 19% from a year earlier.

The automaker, 54% owned by Japan's Suzuki increase 4.51% to INR 647.15 in Mumbai.

L&T secured INR 244 crore contract from Sterlite energy

It is reported that Larsen & Toubro's railway division has secured a INR.244 crore contract from Sterlite Energy, a part of the Vedanta Group, to set up a dedicated railway siding for its 4x600 MW coal based power plant in Jharsuguda district of Orissa.

As per the report, L&T will be responsible for facilitating the 38 kilometer railway track that will start from the plant to the nearest rail head.

The rail line will be used to carry around 16 million tonnes per annum of coal required for the power plant. The project is scheduled to be completed within the next 16 to 18 months.

DMRC backs out of the Mumbai to Nariman Point tunnel study

Project today reported that Delhi Metro Rail Corporation, which was to conduct a feasibility study for the central Mumbai to Nariman Point tunnel, has backed out of conducting the survey. No specific reason was given for the back out.

As per the report, an engineering firm Arup has taken up the survey.

The proposed tunnel is expected to run parallel to the existing road and surface in the business district of Nariman Point.

Era infra bags contract for auto test center at Manesar

It is reported that Era Infra Engineering Limited has informed BSE that the Company has bagged a contract for construction of buildings and associated works at Manesar by National Automotive Testing and R&D Infrastructure Project valuing INR 30.98 Crore.

UP government goes for re bidding for 2 power projects

Project today reported that Uttar Pradesh government has decided to go ahead with a re bidding for the 2 mega power projects e of 1,980 MW Bara and 1,320 MW Karchana in Allahabad.

Uttar Pradesh Power Corporation had earlier decided to grant both the bids to Lanco as the tariff for power quoted by the company was the lowest among all the 9 bidders who had bid for the 2 projects. T

The UPPCL's decision was to be cleared by the energy task force before being given a go ahead by the state cabinet. However, it is learnt that, though the tariff quoted by Lanco were the lowest, they were still very high and needed to be reduced.

The cabinet has now decided that it will not invite fresh bidding for the 2 projects, but rather call for a re bidding between all the 9 contenders who had earlier applied for the projects will take place. For this process to take place, the UPPCL will now move an application to the Uttar Pradesh Electricity Regulatory Commission to seek the regulator's permission.

GAIL commences gas supplies to Trombay

It is reported that GAIL India Limited natural gas supplies to Trombay region near Mumbai began recently through its Dahej-Uran pipeline. The 40 kilometer line to Trombay is one of the several spur links connecting GAIL's main Dahej-Uran and Dabhol-Panvel pipelines to consumers.

As per report, GAIL would be transporting gas from different supply sources such as Panna-Mukta and Tapti fields through DUPL and DPPL. Other gas supply sources include regassified-LNG from Dahej and Hazira terminals in Gujarat and Reliance Industries' eastern offshore gas. Dabhol LNG terminal will also be a source when it gets completed in 2010.

GAIL said the Dahej Uran pipeline has linked two important gas markets of Gujarat and Maharashtra. The pipeline would also supply gas to various cities falling on the pipeline route such as Vapi, Valsad and Navsari in Gujarat and Bhiwandi, Kalyan, Thane and Mahad in Maharashtra. It would also connect other consumers in and around Mumbai, which include Bombay Dyeing and Bhushan Steel.

The trunk line traversing from Dahej in Gujarat to Panvel in Raigad district for DUPL and from Panvel to Dabhol for DPPL project was commissioned in July 2007 for supplying gas to the Dabhol Power plant of Ratnagiri Gas and Power Private Ltd.

Mr RP Singh appointed as director of Ispat Industries

It is reported that Ispat Industries Limited has informed BSE that the Board of Directors of the Company at its meeting held on July 19th 2008 has taken note of nomination by IFCI Limited of Mr R P Singh general manager of IFCI Limited as a Director on the Board of Directors of the Company. The appointment of Mr RP Singh as a director takes effect from July 19th 2008.

Ispat Industries Limited has been advised by IFCI Limited that the nomination of Mr RP Singh as a director shall be in place of Mr Sanjoy Chowdhury. Accordingly, Mr Sanjoy Chowdhury ceases to be a director in the Company effective from July 19th 2008.

OERC pulls up government for delay in small hydro projects

Kalinga times recently reported that passing an order on a petition filed by the developers of small hydro electric projects of under 25 MW capacity who were facing difficulties in implementation of their projects due to bureaucratic delays, the Orissa Electricity Regulatory Commission has directed the state government to take proactive and transparent steps for the smooth development of renewable energy in the state.

The commission said that in consonance with the National electricity Policy and the Electricity Act, 2003 to promote production and use of green and clean power, the OERC had fixed a target procurement of 3% from renewable energy sources of the total power purchased in 2007 or2008. This would go up by 0.5% each year till it reached 5% in the year 2011 or 2012. However this was unlikely to happen as there is practically negligible production of renewable power in the state.

The Commission said that this general lack of enthusiasm on the part of government agencies and bureaucratic hurdles was a great dampener upon renewable energy development and stifling all efforts in the procurement of such energy. It added that feasibility reports and DPRs must be carefully scrutinized, it, however, said that the inordinate delay in such scrutiny and the practice of keeping such reports without any action and response for years together was inexplicable and cannot be countenanced.

OERC said that “Care and caution cannot be the excuse for gross carelessness and inaction. Government must take steps to lay down clearance, schedules and time lines with a clear framework within which such clearances will be given in an open and transparent manner. Whilst many states have surged ahead with the development of renewables, the State of Odisha is badly lagging behind, despite the huge potential available not only in small hydel but also in wind and solar sources.”

The Commission further directed that there should be effective coordination between Water Resources Department and Energy Department for hassle free and speedy clearance of the pending DPRs in overall interest of the state and sittings of the State Technical Committee be held at regular intervals so that quick decision may be taken on the sub standard and incomplete project reports.

The Commission also directed the state Government to finalize expeditiously the guidelines for development of small hydro power projects.

IVRCL bags 5 new order contracts

BS reported that IVRCL Infrastructure & Projects has secured 5 new orders worth INR 351.21 crore for its buildings division and water division.

1. Andhra Pradesh Industrial Infrastructure Corporation for construction of research buildings complex and providing infrastructure facilities for IGCAEL at Pulivendula in Kadapa district contract value INR 98.36 crore.

2. Bangalore Metropolitan Transport Corporation for construction of traffic and transit management centre under JNNURM scheme package 4 contract value INR 79.50 crore.

3. Pride Malls, Bangalore for main civil works for the construction of shopping mall with multiplex at Bangalore with contract valued at INR 65.15 crore.

4. Municipal Corporation of Brihan Mumbai for construction of 140 MLD master balancing reservoir and associated works at Bhandup Complex contract value INR 76.20 crore.

5. Narmada Water Resources, Gujarat for pipeline from Reverse canal to various tanks of Idar Taluk & Vadali Taluk of Sabarkantha District contract value INR 32 crore.

Plate prices rise by USD 105 per short ton in US

Platts reported that standard cut to length steel plate in the US is selling for more than USD 1,330 per short tons as compared with USD 1,240 per short tons on June.

Sources at plate mills as well as buyers at processing and distribution centers said that demand for plate remains at very high levels in North America and shows no signs of falling back anytime soon.

The Platts price assessment of grade A36 carbon plate increased to a new range of USD 1,330 to USD 1,360 per short tons ex works Southeast US, reflecting the tightness of this market. The import price assessment remained unchanged at USD 1,230 per short tons CIF Houston, pending verification of any business done at higher prices for new orders.

Emboldened by fundamentals working in their favor, all major domestic producers have announced anther round of price increases beginning next month.

ArcelorMittal USA said that it would raise its carbon base price to USD 64.75 per CWT from USD 62.25 per CWT effective on August 3. It is the country's largest producer of steel plate, producing and processing all grades and sizes of plate at five US locations.

A second plate producer, Nucor, plans to raise base prices of discrete plate and coiled plate by USD 100 per short ton in August.

Claymont Steel also plans to raise its mill prices by USD 100 per short ton in August.

ArcelorMittal to increase CRNGO capacity at Saint Chely d'Apcher

ArcelorMittal has announced EUR 76 million investments to expand electrical steel production capacity at its Saint Chély d'Apcher plant in Southern France a move in line with the Group's strategy to strengthen its position in high added value steel products and solutions that contribute to lower carbon dioxide emissions.

The addition of a new 180,000 tonnes continuous annealing line will take Saint Chély d'Apcher's capacity to 210,000 tonnes per year of mostly high end non grain oriented electrical steels, which are used among others in electric engines and wind turbines. The new line is scheduled to become operational during the second quarter of 2010.

Mr Michel Wurth member of ArcelorMittal's Group Management Board in charge of ArcelorMittal Flat Carbon Europe said "This is a very exciting investment. The addition of a continuous annealing line in Saint Chély d'Apcher will help the plant better serve its customers. It comes as further proof that ArcelorMittal is actively pursuing the development of steel grades and solutions which contribute to build energy efficient and environmentally friendly equipments. And last but not least it secures the plant's future for many years".

US steel shipments in May 2008 down by 0.8% YoY

The American Iron and Steel Institute reported that for the month of May 2008, US steel mills shipped 9,008,000 net tons, a 0.8% decrease from the 9,087,000 net tons shipped in May 2007 and a 4.2% decrease from the 9,403,000 net tons shipped in the previous month, April 2008.

A year to year comparison of year to date shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 4.3%
2. Automotive down by 4.1%
3. Construction and contractors’ products down by 2.7%
4. Oil and gas up by 5.6%

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

Japanese steel demand slower than expected - Nippon Steel

Nippon Steel has revised the domestic steel consumption downward to 78 million tonnes for fiscal 2008 ending March 2009, which is 1.5 million tonnes lower than original outlook in March and flat from fiscal 2007.

Nippon Steel expects now the building demand is slower with 1 million units of housing start and 60 million square meters of nonresidential building start, which is lower than 1.08 million units and 68 million square meters respectively in original outlook.

SDI Q2 net sales up by 164% YoY

Steel Dynamics, Inc announced Q2 2008 net income of USD 210 million up by 48% QoQ from USD 143 million from Q1 of 2008. Net sales for the Q2 increased by 26% QoQ to USD 2.4 billion as compared to Q1 of 2008 compared to the second quarter of 2007, net sales increased by 164% YoY from USD 911 million to USD 2.4 billion and net income increased by 124% from USD 94 million to USD 210 million.

For the first half of 2008, both net sales of USD 4.3 billion and net income of USD 353 million nearly matched full year 2007 sales and net income of USD 4.4 billion and USD 395 million. First half 2008 results benefited from the acquisitions of The Techs, OmniSource Corporation and Recycle South.

Steel Dynamics said that earnings from steel operations continued to improve as a result of strong shipments and higher selling values. Second quarter net steel shipments of 1.5 million tons were slightly stronger than the first quarter and, excluding The Techs, were 10% higher than second quarter 2007. The Flat Roll Division showed the largest increase, up 22 percent from second quarter 2007 and up 3% from the first quarter of 2008.

It added that the steel scrap and scrap substitutes segment also provided a strong margin contribution. Demand for recycled ferrous scrap has remained strong, both from Steel Dynamics mills and from other mini mills, integrated steel mills, and foundries. Compared to the first quarter of 2008, second quarter ferrous shipments of 1.5 million net tons were up 8% and non ferrous shipments of 254 million pounds were up 6%.

Mr Keith Buss chairman & CEO of Steel Dyanamic said that "SDI's second quarter results of USD 1.05 per diluted share exceeded our June 12 earnings guidance of USD 0.90 to USD 0.95 due to the stronger than anticipated performance by both our steel and metals recycling operations. Steel Dynamics made a USD 15 million contribution to the Steel Dynamics Foundation Inc. This contribution reduced second quarter earnings per diluted share by approximately USD 0.04. The foundation will support local communities served by the company.”

Italian scrap imports drop in 2007

Italian scrap import totaled 5.24 million tonne in 2007 down by 440,000 tonne or 7.7% YoY.

The report said that shipments from Germany were 1.493 million tonne accounting for 28.5% down by 13.6% YoY. France took 1.12 million tonne, accounting for 21.4%, decreasing by 5%YoY and the two countries’ export volume accounted for 49.9% in total.

In addition, Australia increased its exports by 23.7% to Italia at 741,000 tonne.

(Sourced from YIEH.com)

Sumikin Bussan opens Ichikawa scrap yard

TEX reported that Japan's trading company Sumikin Bussan Corp has opened a captive metal scrap yard at Ichikawa city in Chiba prefecture.

The main purpose is to supply locally available ferrous scrap in seaborne cargoes to the Wakayama works of Sumitomo Metal Industries Ltd for shipment at the Funabashi central wharf in the Tokyo Bay area.

The Ichikawa yard represents what Sumikin Bussan operates as its first one in the Tokyo Bay area. It has a ground area of nearly 540 tsubo with a container house, a platform scale and a power shovel. The collection of ferrous scrap is projected at a monthly level of 3,000 tonne. Grades for collection are P&S scrap and new production scrap in bulk. At present, the collection of only P&S scrap is under way, and the first shipment to SMI's Wakayama works is expected to take place shortly.

(Sourced from TEX Report Ltd)

Domestic steel prices in Thailand expected to drop in H2

According to the Iron and Steel Institute of Thailand, the local steel prices are expected to drop in the second half of the year due to the decline of investment projects and the slowing of world economic growth.

In Thailand, the steel demand has dropped even more significantly because of the momentum of political woes adversely affected the overall economy. In order to solve this problem, Vikrom Vajragupta, director of the ISIT, urged the National, Economic and Social Development Board to conclude its upstream steel production study as soon as possible.

Currently the four leading steelmakers ArcelorMittal, Japan's Nippon Steel, JFE Steel and China's Baosteel all have expressed interest in investing in upstream blast furnaces in Thailand according to the Board of Investment.

China influencing global trends for steel

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

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

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

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

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

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

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’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.

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.

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.

Global Steel seeking sops from Philippine government

Local media 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.

US weekly crude steel production up by 2.7% YoY

American Iron & Steel Industries reported that in the week ending July 19th 2008, US’s raw steel production was 2.114 million net tons while the capability utilization rate was 88.6%. Production was 2.059 million net tons in the week ending July 19th 2007, while the capability utilization then was 87%. The current week production represents 2.7% increase from the same period in 2007.

Production for the week ending July 19th 2008 is up 1.6% from the previous week ending July 12th 2008 when production was 2.081 million net tons and the rate of capability utilization was 87.2%

Adjusted YTD production through July 19th 2008 was 60.700 million net tons at a capability utilization rate of 88.6%. That is a 2.4% increase from the 59.294 million net tons during the same period last year, when the capability utilization rate was 85.9%

District wise production for the week ending June 28th 2008
1. Northeast Coast: 175
2. Pittsburgh/Youngstown: 216
3. Lake Erie: 92
4. Detroit: 100
5. Indiana/Chicago: 507
6. Midwest: 271
7. Southern: 661
8. Western: 92
(In thousands of net tons)

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

Chung Hung increases prices

In order to respond to the rising slab price, Chung Hung Steel in Taiwan has added TWD 2,000 to TWD 3,000 per tonne in July and could continue to raise its price in August.

However, current weak demand, cheaper imports from China and slowing buying activity has led market prices to plunge by TWD 1,000, which creates a dilemma for CHS in deciding its August price list.

It is said by market analysts that the company will still raise its prices because global slab prices are remaining at high levels.

(Sourced from YIEH.com)

South Korea confirms privatization of Daewoo Shipbuilding

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 daily average primary aluminum output up in June

According to the International Aluminum Institute, daily average primary aluminum output in June increased to 70,700 tonne. The figure was 70,600 tonne in May and 67,800 tonne in June 2007.

Global original aluminum output ultimate output is 2,121,000 tonne in June. Total production in June was 2.121 million tonne, 2.189 million tonne was produced in May and 2.034 million tonne in June 2007.

Siemens and unions agree on job cut plans - Report

Reuters reported that Siemens management and labor representatives have agreed on a framework to implement job cut plans.

A Siemens spokesman declined to comment but said a statement regarding job cuts could be expected on Wednesday.

The engineering group announced earlier this month it plans to slash almost 17,000 jobs worldwide to speed up cost savings and boost margins. At the time Siemens had also said it planned to dispose of its industrial services unit SIMS but the source said the unit would now remain with Siemens and be restructured.

Outotec Oyj sells its holding of Intune Circuits Ltd

Outotec announced that it has sold its 17.9% holding of Intune Circuits Ltd an RFID (radio frequency identification) antenna producer to Savcor Group Ltd.

Outotec, UPM and Finnish Industry Investment established Intune Circuits in 2005. The company is the first mass producer in the world specialized in RFID antennas aiming for the global market.

The transaction has an approximately one million euro negative effect on Outotec's 2008 second quarter result.

Outotec to deliver a copper plant for Southern Peru Copper Corporation

Outotec to deliver a copper plant for Southern Peru Copper

Outotec has agreed with Southern Peru Copper Corporation for the delivery of a copper solvent extraction and electrowinning plant for SPCC's Tía María project in Arequipa region in Peru. The contract value is USD 150 million out of which USD 90 million is already included in Outotec's 2008 second quarter order backlog.

Outotec's scope of delivery covers basic and detail engineering, proprietary equipment and services for the construction supervision and commissioning.

SPCC's Tía María project includes the development of a new processing unit for the Tía María and La Tapada deposits. When completed in 2010, Tía María is expected to produce 120,000 tonne of copper cathodes per year.

Mr Tapani Järvinen CEO of Outotec said that "This project is the largest solvent extraction and electrowinning project in Outotec's history and it further strengthens our position as a market leader in copper solvent extraction technologies.”

Thai Canadoil orders 5 meter wide plate mill

Siemens VAI Metals Technologies has received an order from Canadoil Plate Ltd to supply equipment for a new 5 meter plate mill in Thailand.

The heavy plate rolling mill is designed mainly for the production of plates required in manufacture of high grade pipe, pressure vessels and structural steels for the energy industry. The plate mill will be able to roll finished widths of up to 4.9 meters and is scheduled to start operating in 2010.

For the new 5 meter plate mill Siemens is supplying a high pressure descaler, finishing mill stand with a maximum rolling force of 10,000 tonnes, comprising of a hydraulic roll gap control system and SmartCrown work roll bending and shifting system. A Mulpic intensive cooling system with a pre leveller, a hot plate leveller, a shearing line and a cold leveller complete the mechanical equipment supply. Siemens are also supplying the engineering for all the remaining roller tables, cooling beds, transfers and basic engineering for the required utilities.

In addition to the mechanical equipment, Siemens is supplying all the electrical equipment and the automation system, including the sensors. The roll stand is driven by two cylindrical rotor synchronous motors using Sinamics SM 150 DC link converters with a rated output of 28 MVA. The automation system includes the basic automation, the technological control systems and the process automation as well as the HMI system and a higher level production planning and control system of level 3. This solution supports all production methods for modern steel grades such as Plan View Control, thermo-mechanical and nested multiple plate rolling, to increase the productivity of the rolling mill. The system can be flexibly adapted to changes in the range of products or the quality requirements and thus offers protection for the necessary investment involved. On top of this, it plans and ensures a smooth flow of materials along the entire production process from takeover of the slabs to delivery of the customer-specified steel plates. All the components and systems used are part of Siroll PM, the integrated solution for plate mills. Siemens is also responsible for commissioning and customer training.

Located at Bangkok in Thailand, Canadoil Plate Ltd is a part of the Canadoil Group, a leading manufacturer of components for the energy industry including main transmission pipelines for the oil and gas industry as well as specialty piping components for the power and water treatment industries. The Group specializes in the manufacture of a very wide range of pipes and fittings with diameters from 1/2” to 120” in all types of ferrous and non ferrous materials. Canadoil also manufactures static equipment such as pressure vessels, reactors, filters, heat exchangers, launcher receivers and slug catchers and all of the prefabricated piping spools and modules required to create large scale industrial plants in the petrochemical, power, water treatment and mining industries.

Steel monopoly investigation results soon in Egypt

Daily Egypt Star reported the Egyptian Competition Authority denied news reports that it finalized last week findings into the steel monopoly case filed two years ago.

Mr Ibrahim Abdel Rehim press officer at the ECA said that this news is incorrect. He said that “We do not announce the dates of our meetings in advance because they can get postponed for any reason. However he revealed that the authority will hold a meeting revealing the final investigation results very soon.”

According to the report, the findings of investigations in steel monopoly charges were due last December, but have been delayed since then, which triggered speculation that Egypt's giant steel producer Ahmed Ezz one of the leading members of the ruling National Democratic Party might be using his political ties to close the current investigation.

In July 2006, the ECA began investigations on both the cement and steel sectors upon receiving a request from Minister of Trade and Industry Mr Rachid Mohamed Rachid, as suspicions of practicing monopoly and gratuitously raising prices surrounded market players. Based on thorough investigations, the ECA reported existence of a cartel among cement companies that monopolized the market, conspired to raise prices, and at times restricted production of the commodity. The authority finalized its cement investigations in 14 months as opposed to the still ongoing two year steel probe.

According to the amended version of the anti monopoly law passed by the People’s Assembly last June, monopolistic business practices are now fined between EGP 100 million and EGP 300 million. Initially, the ministry, in cooperation with the ECA, recommended a penalty between 10% or 15% of the company’s profits. However, the NDP led by Mr Ahmed Ezz vetoed the proposal and the Parliament passed the current fines. The newly passed law also did not stipulate a leniency clause that exonerates the first to report a cartel from all charges. Instead, an individual or corporate that reports price fixing allegations will be charged half the fine paid by the accused corporate.

Dolphin Energy awards Taweelah Fujairah pipeline to Stroytransgaz

Gulf News reported that Dolphin Energy Limited has awarded the construction contract for its new Taweelah to Fujairah Gas Pipeline across the UAE to Stroytransgaz PJSC of Russia. Site work will begin in the third quarter 2008.

The new gas pipeline will be 48 inches in diameter. It is to be laid over an environmentally approved cross country route, through more than 240 kilometers of desert and mountainside one of the longest and largest overland pipelines in the UAE. The value of the TFP construction contract is USD 418 million.

Eight international construction companies initially bid for the work, and technical tenders were accepted from five, which proceeded to the commercial bid stage. They were Al Jaber Energy Services of UAE, Consolidated Contractors International of Greece, Dodsal of India, Stroytransgaz PJSC of Russia and Saipem Snamprogetti of Italy.

TFP will link Dolphin Energy's gas receiving facilities at Taweelah, on the coast of Abu Dhabi, with the ADWEA Power and Water Desalination Plant at Qidfa in Fujairah. It is designed to carry significant quantities of Dolphin gas from Qatar via Taweelah directly to the UAE east coast.

Know steel prices in Middle East Asia on daily basis

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

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

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

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

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

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

UAE construction firms seeking price escalation clauses

Arbianbusiness.com reported that construction firms in the UAE are attempting to protect themselves from soaring steel prices by agreeing clauses in development contracts, passing on escalating costs to land owners.

But the companies at the forefront of the country’s massive construction boom said although projects they were involved it would be unaffected by the price rise, their overall profit margins are still taking a hit.

Mr Riad Kamal CEO of Arabtec Holding PJSC said the price hike is leading to rising costs on construction projects which had been underway for the past six months where steel was still being sourced.

Mr Kamal said that “The cost has gone up and unless we are compensated then we will suffer like everyone else. Reinforcing steel is a global commodity and we are trying with our clients to see if they will understand and compensate us for losses we have had.”

Mr Bishoy Azmy CEO of ASGC said that we are all facing shaved profit margins because of the increasing cost of major commodities, primarily steel and secondly cement and diesel, but most contractors are becoming wiser and are inserting escalation clauses which transfer the risk of rising steel prices to the owner.

Iran government imposes export tax on cement

According to a past enactment of the cabinet the Iran government will impose IRR 1 million (USD 110) tax per one tonne of export bound cement.

Stating the above, Mr Hamid Safdel director of the import export department at the Ministry of Commerce referred to paying subsidy by the government for production and supplying to the market based on global prices saying, Subsidized products have been banned from being exported.

He added that government has developed the plan for supporting domestic industries and national investments

Oiltanking invites bids for Jebel Ali tank farm expansion

MEED reported that Germany's Oiltanking has invited international contractors to submit bids by August 5th for a contract to expand its petroleum products storage terminal at Jebel Ali in Dubai.

According to the report, five companies are understood to have been pre qualified to bid for the estimated USD 30 to USD 35 million engineering, procurement and construction contract, which covers the construction of 140,000 cubic meters of new storage capacity.

The invited firms are CB&I of the US, Punj Lloyd, Larsen & Toubro and Indian Oil and Saudi Arabian Bemco.

Oiltanking's existing storage capacity is more than 740,000 cubic meters or 4.65 million barrels. It stores a range of petroleum products and chemicals.

The report said that the firm, in a JV with Dubai Multi Commodities Center Authority and Tropicana Trading DMCC, is also planning to develop a new, 500,000 cubic meters storage terminal at Dubai's Technopark Freezone. Tenders for the project will be issued to bid later in the year.

Suez Canal revenue in H1 surges

AFP reported Egypt's Suez Canal Authority recently saying that its revenue had surged in the H1 of 2008 to more than USD 2.6 billion.

A Suez Canal Authority official said that canal receipts from January to end June reached USD 2.639 billion which is a half billion dollars more than for the same period last year.

He added that the number of boats using the canal had risen to 10,497 from 9,800, adding this showed that world commerce is in good health.

The official said that in March, the authority raised fees for different classes of ship by an average of 7.1%. He added that with about 7.5% of world trade transiting the canal, which links the Mediterranean and the Red Sea, income from the waterway provides Egypt with its third highest source of foreign currency after tourism and remittances from Egyptians working abroad.

Arabtec signs 2 construction contracts worth AED 410 million

Gulf News reported that Arabtec Engineering Services LLC has received two Letters of Acceptance from the Dubai Municipality to carry out two contracts within the emirate of Dubai with a total value of AED 410 million.

According to the report, the first contract which covers the provision of irrigation for Al Aweer Farms is projected to be completed within 18 months and is valued at AED 111.5 million.

The second contract provides sewerage and storm water drainage networks, including sewerage connections for the existing plots, for Dubai Academic City and has a projected duration of 18 months with a total value of AED 298.5 million.

Mr Eng Amin Shahin MD of Arabtec Engineering Services said that Arabtec Engineering Services are delighted to have been awarded these two contracts by Dubai Municipality. We believe these two projects will complement the strong and successful relationship that Arabtec has forged with the Dubai Municipality during the last ten years.

Inflation in Oman in Q1 jumps by 10.6%

The Oman’s ministry of national economy in its latest statistical stated that for the first quarter of 2008 inflation climbed to a record 10.6% on the back of strong domestic demand, massive growth in liquidity and the continued depreciation of the Omani riyal against the currencies of the major non GCC importing countries.

The ministry said that monthly data show the increase in the Consumer Price Index to be 9.7%, 10.6% and 11.3% in January, February and March 2008 respectively. This continues the trend of accelerating CPI increases. He said that Q1 2008 saw the greatest increase from one quarter to another with a 3.8% increase in CPI in Q1 2008 compared to Q4 2007. This exceeded the previous high recorded in Q3 2007 of 3% increase compared to Q2 2007.

According to the report, CPI increased more in Oman than in most of its trading partners for which data were available in Q1 2008. Of the ten major sources of imports to the Sultanate, Saudi Arabia had the highest rate of CPI increase at 9.8% in March 2008 compared to March 2007. Yet this was below the 11.3% increase in Oman over the same period. CPI in Qatar increased 14.8% in Q1 2008, which was significantly higher than in the Sultanate.

Rent made a large contribution to CPI increases in Q1 2008 than it has ever made at 0.8 percentage points of the 3.8% increase in Q1 2008 compared to Q4 2007. In addition to the usual drivers of CPI increases, Q1 2008 saw a significant minority contribution from the transport group of products. This was driven first by increases in the price of international air tickets and second by increases in car prices.

The high increase of the WPI in Q1 2008 was driven by price increases in iron and non alloy steel and gold, accounting for 19% of the 5.4% increases. Gold has seen higher increases before but iron and non alloy steel prices increased a record 30.7% in Q1 2008 compared to the previous quarter, breaking the previous record high of 19.1% back in Q3 2002.

The Building Material Index for Muscat increased 13.8% in Q1 2008, bringing to an abrupt end the slowdown of building material price increases during 2007, when prices increased only 8.1% in 2007.

UAE to cut oil output in October and November

Reuters UAE state oil company Adnoc will reduce oil output by 150,000 to 200,000 barrels per day for 40 days in October and November 2008 for maintenance.

A Reuters survey showed that the scheduled shutdown will cut oil output from the world's fifth largest oil exporter by up to 7.5%. UAE pumped around 2.6 million barrels per day in June.

The official at Abu Dhabi National Oil Company while speaking on the condition of anonymity said that it's for 40 days, around 150,000 to 200,000 barrels per day.

He said that the work will cut output just as consumers' oil demand rises ahead of peak demand in the northern hemisphere for heating during winter.

Buyers in Japan said that UAE has offered them more oil in September to compensate for lower volumes during the maintenance.

The official added that the offshore Lower Zakum and the Umm Shaif fields would be partially shut down. Lower Zakum typically pumps at around 280,000 barrels per day, while Umm Shaif produces around 200,000 barrels per day.

New trade policy to boost shipping trade between India and Pakistan

According to experts on ports and shipping, the new Trade Policy for fiscal year 2008-09, between Pakistan and India would remarkably boost the shipping services between the two countries.

The Trade Policy, which envisages exports target of USD 22.1 billion marking an increase of 15% claims to aim at poverty alleviation, value addition, compliance with international standards, reduction in cost of doing business and diversification of products and markets.

Through it, the government besides expanding the last of importable items from India also allows import of inputs under Duties and Tax Remission for Exports scheme, diesel and fuel oil due to cheaper transportation cost, CNG buses on trial basis, machinery and equipment for mining and grinding of minerals along with spares.

However, shipping experts said that except the cool chain items the new policy had no mention of any major initiative in connection with the proposed national trade corridor improvement program an important World Bank backed long-term project aiming at reducing the cost of doing business in Pakistan.

It said that relaxation in the age of transport vehicles imports would boost the trucking industry and might increase competition in the sector, reducing the land transportation costs, the experts said. They, however, came with the advice for the government that it should be very serious in ensuring that the imported equipment is in usable zand serviceable condition.

Chinese HRC export market slowing down further

It is reported that Chinese hot rolled steel exports are still slow and there is little transaction at moment. Less demand in low season and decrease in domestic market prices are believed to be major reasons.

Domestic HRC prices are still on the decrease. On Shanghai market, commercial 4.75mm to 12mm HRC in 1500mm width is at CNY 5730 per tonne to CNY 5770 per tonne down by CNY 50 per tonne to CNY 60 per tonne WoW. That for 1800mm wide cargo is at CNY 6200 per tonne down CNY 20 per tonne from last week. However, price for commodity grade 2.75mm HRC remain flat at CNY 6250 per tonne.

Export offers for commodity grade HRC are prevailing at USD 1020 per tonne FOB but there is few contracts this week as many are afraid of possible drop in the near future. At the same time, Tangshan stainless is said to be quoting commercial HRC at a much lower level of USD 980 per tonne FOB to USD 990 per tonne FOB which is believed to be a way of striving for export orders.

Sources also mentioned that it is getting harder for steel makers to sell HRC to domestic market at such high level and they are actually more interest in exports. However, few steel mills are willing to lower price first.

(Sourced from MySteel.net)

Growth of construction steel demand not to go below 6%

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 and strip outputs is blind and should arouse concern.

(Sourced from MySteel.net)

Chinese steel plate market keeps strong growth

It is reported that Chinese steel plate market has continued to see strong growth momentum so far this year, bolstered by robust demand from down stream sectors like shipbuilding, machinery, automobiles etc. The price increase has far exceeded the output growth rate.

The shipbuilding industry has recorded the contracting order hit over 100 million DWT till the first half of this year, with order handing nearly close to 200 million DWT, almost eight times of the sector's current capacity. According to the industrial plan, China's shipbuilding capacity is to add by 50% this year to double next year and reach over 55 million DWT at least in 2010.

As a result, domestic ship plate output continues to roar up month by month this year up by 125.7% YoY to 8.41 million tonnes in the first five months up by 39 percentage points from the end of last year. Ship plate has nearly occupied half of medium plate rolling mill since the start of this year. Meanwhile, machinery sector has also posted high growth rate, with the gross industrial output value in the sector up by 29.2% YoY to CNY 3534.7billion in the first five months. Of this, engineering machinery sector has registered the fastest growth of 46.24%, while heavy mining machinery, machine tool and machine components all have risen over 35% from the year before.

Domestic steel output growth has moderated this year due to spiking input costs and stricter environmental protection regulations. Likewise, domestic steel plate production increases 22.5% YoY to 30.55 million tonnes in the first six months of this year down by 20.7 percentage points from same period of last year. And extra thick plate output growth has dropped to 6% from last year's 17.3%, thick plate down from 35.1% to 26.5%, and medium plate down from 44.8% to 23.1%.

The daily steel plate production has held steady at some 170,000 tonnes during March to June indicating limited output addition in recent months.

(Sourced from MySteel.net)

Xigang to move new special steel project to Jingjiang

It is reported that Xigang Group will settle in Jingjiang Economic Development Zone, the north of the Yangtze River and will set up a 2 million tonne of special steel enterprise.

According to the company’s plan, it will move out Wuxi city in three years and will carry out transform on irrational technical equipment, to eliminate the backward 20 tonne converter, relocate a 50 tonne electric furnace production line.

The relocation region will locate Jingjiang Economic Development Zone, covers an area of 1451.3 hectares, the planning investment of the project is CNY 4.5 billion and will mainly produce bearing steel, spring steel, alloy steel etc, the annual production capacity can reach 950,000 tonnes after the completion of the second phase of the project, it can form 2 million tonnes production capacity.

Xigang Group is the important enterprise in Jiangsu province.

Construction steel output in China in Q3 to remain subdued

It is reported that in H1 2008, construction steel production which so far has followed an upward course, would be constrained and the output could go to stabilize or even slip in the third quarter of 2008 due to following reasons.

1. Construction steel producers are cutting output. Take North China and East China as examples, Hebei has responded to the national call and closed a list of heavy polluting enterprises for ensuring good air quality for the Olympics and some big mills in East China also declared plans of cutting Jul production.

2. The construction steel price has been correcting and the cost pressure is found difficult to pass on to the end users. Further, the construction projects will be delayed in the hot summer days demand and transaction are thus weakened and feel feeble to support the prices. Also given spiking fuel and materials cost, many re-rollers would take cutting output as a mean of stabilizing the market.

3. Steelmakers and traders are faced with financial pressure amid the tight monetary policy. Experiencing the snow storm and big earthquake didn't change the curbing policy of the government in order to control over-fast growing economy. Under such circumstances, steelmakers, traders and end users are all in face of increased financial stress. And the nation's aim of preventing fixed asset investment from speedy growth would also impact the construction steel market.

As per report, to sum up the construction steel producers would be attacked by lofty production cost and shrinking market transaction, also probably, higher inventory and heavier financial stresses while entering into the third quarter. Cutting output will be an effective method to deal with such situation, but due to joint reduction in North China for welcoming the Olympics, construction steel capacity in China would be curbed and the output may decline then.

(Sourced from MySteel.net)

Xinyu Steel performance in H1 of 2008

It is reported that Xinyu Iron & Steel Co Ltd has produced 4.69 million tonnes of iron in H1 of 2008 up by 4.94% YoY, 5.64 million tonnes of crude steel up by 10.92% YoY and 5.35 million tonnes of finished products up by 13.2% YoY respectively with sales revenue of CNY 22.7 billion and profit of CNY 1.1 billion up by 30.91% and 175.3% respectively.

Xinyu Iron & Steel is target to yield 5.3 million tonnes of iron, 6.45 million tonnes of crude steel and 6.07 million tonnes of finished products in 2008 and achieve sales revenue of CNY 26 billion and profit of CNY 1.2 billion.

Currently, the mill can produce 3 million tonnes of medium plate per annum, with the ratio of high value added products hitting nearly 90%. It also ranks No 1 in terms of boiler and container plate production in the country. Its ship plate has been accredited by 9 countries classification society.

Xinyu Iron & Steel Co Ltd is a large state owned steel complex in Jiangxi province with total assets of CNY 21 billion and ranks No 23 in China's steel industry and No 56 at the global steel sector in terms of steel output last year.

Laiwu Steel rebar export in H1 2008 reaches USD 177million

It is reported that Laiwu actively arranged rebar export in 2008 and created a great deal of profit. In H1 of 2008, Laiwu Steel totally exported 239,100 tonnes of rebar with an export value of USD 177 million.

Aiming at the large difficulty for exporting the rebar, Laiwu Steel Bar plant strengthened the communication with the sales, research and trade departments, further expanded the export international market.

In the H1 2008, Laiwu Steel’s export products covered the British standard, the Japanese standard, the American Standard and the South Korea standard four criterions.

Chinese province wise crude steel output in H1 of 2008

It is reported that China crude steel product output in H1 of 2008 reached 263.19 million tonnes up by 9.6% YoY as compare to 240.12 million tonnes in 2007.

Heibei province has top among the provinces with the production of 59.56 million tonnes up by 8.9% as compared to 54.68 million tonnes in 2007.

(In million tonnes)

Ningbo develops CR Q195L steel

It is reported that on July 5th 2008, Ningbo Iron and Steel Company successfully developed CR Q195L steel.

In order to further develop new high added steel products, Ninggang metallurgical department and the steel making plant jointly made the trail production scheme for Q195L, in the period of trial production, the technology personnel handled strictly, then completed the production of Q195L, the carbon is controlled at 0.036% to 0.05%, silicon is controlled at 0.003% to 0.012%, phosphor is controlled at 0.009% to 0.013% and the sulfur is controlled at 0.009% to 0.013%.

The successful development of Q195L steel will increase new economic efficiency growth point.

Crude steel output growth to further slow down in Q3 - Haitong Securities

According to Haitong Securities, China's pig iron and crude steel output growth will be further moderated in the third quarter of this year.

China produced 46.94 million tonnes of crude steel up by 10.18% YoY and 43.39 million tonnes of pig iron in June up by 6.87% YoY respectively. The growth rates have been moderated compared with the previous three months due to the steep input costs and environmental issues. Crude ore output grew 27.14% YoY to 81.56 million tonne in the same month, indicating a mining upsurge at home stimulated by the record high iron ore prices.

Haitong Securities said that steel exports in June has decreased 340,000 tonnes from the previous month, imports also dropped 80,000 tonne, while import and export of billet steel all posts at 20,000 tonnes. Therefore, domestic supply of steel products has increased by 17.78% YoY in June far exceeding the less than 11% consumption growth rate of last year.

Haitong Securities said China's pig iron and crude steel output will be further slowed down in the third quarter due to the output disruptions resulted from Beijing Olympics. Some construction activities will also be suspended by then, however, the impact will be heavier on supply than that on demand.

Shougang Group suspends 70% of production for Olympics

Interfax China reported that Beijing Shoudu Iron and Steel Group one of China's major steel mills has suspended 70% of its production in Beijing since July 19th to reduce emissions during the Beijing Olympic Games.

Dazhou Steel gets license for earthquake resistant rebars

It is reported that recently, the HRB335E, HRB400E and 1HRB500E, three brands of rebar for anti earthquake, which are produced by Sichuan Dazhou Iron and Steel Group have passed the examination of the National Quality Inspection and Quarantine Administration and got the production license.

As per reports, it is the first enterprise to produce rebar for anti earthquake in Sichuan province.

The rebar for anti earthquake is the steel material in order to adept to the high rise buildings with high strength, high toughness and good welding.

After the 5.12 Wenchuan Earthquake, Dazhou Iron and Steel Group actively trial developed the rebar for anti earthquake. The successful development of the rebar for anti earthquake will help Dagang expand the products sales market and account for the market.

Xinjiang 1st large BF produces over 500,000 tonnes of pig iron

It is reported that the first large sized blast furnace in Xinjiang province, namely Bagang No 1 has been working well since its debut on this February 27th. It yields above 4000 tonnes of pig iron each day and up to now it has contributed a total of more than 500,000 tonnes.

As per report, the 2500 cubic meter blast furnace was the first major item after Baosteel Group acquired Xinjiang Bayi Steel as its new member. The item was funded by Baosteel with CNY 1 billion and is projected to produce 1.75 million tonnes of pig iron each year.

The furnace adopted a string of sophisticated new technologies, with equipment and environmental standards being ahead of other domestic counterparts. Besides, the technics improved operation rules in many steps and made some technical reforms based on the actual situation to ensure the smoothly running of all links.

(Source www.xjtvs.com.cn)

Zhongcai Group to set up base in Caofeidian

Zhongcai Group announced that the company will invest CNY 4.2 billion in Tangshan Caofeidian to develop the heavy equipments and new energy materials industrial base.

The released added that the base locates in the equipments manufacturing areas in Caofeidian industrial park, covers an area of 1.4 million square meters.

The official of Zhongcai Group expressed that the base will mainly produce the whole equipment which can produce 10,000 tonnes of cement every day and the lamina for the wind electricity.

Tonghua Steel sales revenue in H1 reaches 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 complexes 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.

WISCO Fangcheng Port steel project gets environmental nod

It is reported that during a 3 day consultation, Guangxi Fangcheng Port Steel Project, promoted by WISCO, passed an environmental assessment conducted by a team of 14 professionals in Nanning.

As per report, the project adopts modern production facilities and takes a series of advanced measures to prevent polluting such as CDQ, TRT, sintering and converter surplus heat recovering machines, dry purification for gas from blast furnaces and converters, dry desulphurization for smoke and gas from sintering machines, and assistant equipment. Discharges of waste gas, water, solid waste, SO2 and COD all meet the national industry policy.

Baosteel chrome free fingerprint resistant EG sheets

It is reported that in a recent evaluation in Shanghai for 100 best and 10 strongest projects with high and new technology, the chrome free finger print resistant electro galvanized sheet project of Baoshan Iron & Steel Co, Ltd has been selected into 10 strongest.

The chrome free finger print resistant electro galvanized sheet of Baoshan Iron & Steel Co Ltd is an environmental protection product that has been developed in order to fulfill EU's RoHS command about limiting 6 kinds of harmful substances in home electric appliances. This project has not only reduced the environmental pollution, but also provided the raw material satisfying EU's environmental protection requirement for electric appliances industry in China and advanced the international competition of Chinese electronic and electric appliances industries.


As per report, the selection for 100 best projects converted from high and new technology results in Shanghai was originated in 2001 and 10 strongest self innovation projects were begun to be selected from 100 best in 2005.

The projects that participates the evaluation for 100 best in 2007 should satisfy the preconditions of independent intellectual property, over CNY 50 million of sales amount, profits and increases on projects, etc. Meanwhile, the essentials, such as project capacity, increasing speed, industrialization performance, self innovation level and so on will be considered comprehensively.

In other three 10 strongest single awards added during this time, Baosteel's ultra deep drawn and formed high quality automobile sheet and pipeline steel have been selected into 10 strongest by sales amount while chrome free finger print electro galvanized plate has been selected into 10 strongest by increase.

Average steel export H1 2008 up by 22% YoY in Guangdong province

It is reported that due to macro control policies, steel export declined in H2 of 2007 in province Guangdong and it recovers this year.

According to statistics from Guangzhou Customs, province Guangdong exported 120,000 tonnes of steel in January 2008, while the quantity rose up to 223,000 tonnes in May. The average monthly growth rate was 16.8%. The export volume decreased slightly to 210,000 tonnes in June down by 5.6% MoM. Meanwhile, average export price in H1 of 2008 was USD1,038 per tonne up by 22% YoY.

Experts analyzed that the key reason for steel export rebound in Guangdong in H1 was the large price gap between international and domestic market. Meanwhile, the growth rate of international steel price was higher than it in domestic steel market. Even if with export tariff and ocean freight, there is still profit in steel export.

Marubeni supporting 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.

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.

Largest gas based power plant in operation in Beijing

Beijing Daily reported that the newly built China's largest gas fired thermal power plant is in operation in Beijing to directly service Olympic facilities in the capital.

The plant, Taiyanggong Power Plant, has the world's largest thermal power supplying CCGT unit. Its added 800 MW installed capacity may satisfy the power demand of 3400 families expanding heating areas by 10 million square meters.

In comparison with ultra supercritical coal fired units' 45% of generation ratio, the new plant can reach 58 per cent in non thermal power supplying period.

Chalco halts some output at Shanxi ventures on power

Bloomberg reported that Aluminum Corp of China Ltd may lose 30,000 tonnes of output after it halted some capacity at two ventures in Shanxi province because of a power shortage.

According to the report, Chalco's two Shanxi ventures were forced to halt production cells because of reduced power supplies. Power supplies look to remain tight in the coming months. Chalco didn't specify how long the cuts will last.

Chalco said in a statement that Shanxi Huaze Aluminum & Power Co suspended 25% of its 280,000 tonne annual capacity as of July 18th, and Shanxi Huasheng Aluminum Co stopped 22% of its 220,000 tonne capacity.

Mr Li Rong an analyst at Great Wall Futures Co said that the estimated loss is too small to ease a supply glut in China. He said that aluminum futures in London may have priced in a bigger production loss.

Aluminum jumped to a record USD 3,380.15 per tonne on July 11th after China's producers pledged to cut output by as much as 10% through September to help ease a nationwide power shortfall. The pledge came after the Shanxi government cut power to smelters, forcing Chalco and others to reduce production.

Jiangsu demolished outdated iron and steel capacities

According to the results of 2007 pollution and emission decreasing issued by Ministry of National Environment Protection, National Development and Reform Commission, Statistics Bureau and Ministry of Supervision, emission of COD and SO2 in Jiangsu in 2007 decreased by 4.9% and 8.0% respectively from those of 2006 which means Jiangsu Province has overfulfiled the target set by center government for the second time in two years in line.

According to Mr Zhu Tiejun an official from provincial bureau for environment protection, the target for 2008 in Jiangsu is control the emission of SO2 under 1.1685 million tonne down by 4.1% YoY from that of 2007, that of COD under 862,100 tonne down by 3.3% which is hard to realize.

Take the first half for example, the emission of COD increased by 33,300 tonnes and that of SO2 increased by 53,900 tons. Therefore, it is hard to absorb the increases while realize the target for decreasing. Therefore, the province takes a series of measures to secure the target, including the followings.

Adjust the production structure and demolish the outdated capacities. During the first half, Jiangsu Province closed and demolished outdated iron and steel capacities 3.262 million tons.

Steel industry launches green revolution

It is reported that as China's economic lifeline, the iron and steel industry used to be a black smoke maker and blue sky killer in the eyes of many people.

In 2007, SO2 emissions by China's large and medium sized steel and iron enterprises were estimated at 756,368 tons, down 0.51%YoY. And the discharge of industrial coal ash was 382,275 tonnes with a 2.79% decline. Otherwise, soot discharges increased 3.02% totaling 156,648 tonnes.

The Long March of environmental protection and energy efficiency for China's steel and iron enterprises is still challenging, though many in the iron and steel industry have launched a green revolution in order to improve their old image. Wuhan Iron and Steel Corp is one such environmental protection warrior.

As China's third largest steel and iron manufacturer, WISCO used to be a major polluter in Wuhan, capital of Hubei province. Many residents complained and criticized the firm, joking that sparrows would turn black after flying over WISCO's mills.

Mr Deng Qilin president of WISCO said it has been difficult for WISCO, an old enterprise which was established in 1958, to rid itself of its outdated, polluting and energy consuming manufacturing model. He said that "But by adopting new technologies and reforming the opinions of managers and staff, we continue to drive sustainable growth and develop the new growth model, which is focused on energy conservation and environment protection."

Mr Deng said "Although steel mill is located next to the Yangtze River, we still cannot waste any drop of water. He said that with comprehensive technologies and treatment plans, WISCO is expected to realize zero discharge of wastewater by 2009.

Since 2001, the company has invested more than CNY 3.25 billion in improving the area's water and air quality and the treatment of solid wastes.

Yonggang H1 sales revenue reaches CNY 14.5 billion

It is reported that Jiangsu Yonggang Group has achieved steel making of 2.09 million tonnes up by 9.42% YoY and steel rolling of 2.04 million tonnes 7.94% during January to June respectively with sales revenue of CNY 14.5 billion up by 29.46% YoY and pre tax profit of CNY 1.4 billion up by 40% YoY.

Jiangsu Yonggang has maintained the strong upward momentum at the first half. And has spent CNY 70 million to improve its production technique in the period, and has finished the technical innovation for 33 items including the reconstruction of its 1# blast furnace and the electromagnetic stirring for the 3# converter etc.

Jiangsu Yonggang has spent CNY 150 million renovating 11 items like lime plant and gas pipeline network project etc, which lessened the emission of dusty gas and energy consumption and improved recycling rate of natural gas. And its power consumption, value added energy consumption and the energy consumption out of each crude steel tonnage has fallen 13.85% YoY, 12.1% YoY and 4.79% YoY respectively.

Its Liaoning based Beipiao project also comes into full construction in the period. And the 1.2 million tonnes per year pellet project construction has completed. The first batch of 800 tonnes of pellet has been rolled out on July 3rd. And the Lianfeng Mining Co and Yongfeng Mining Co which also within the Beipiao project has produced 213,000 tonnes of iron ore and 45,000 tonnes of ore concentrate in the first half.

(Sourced from MySteel.net)

Pangang H1 profit hits CNY 848 million

China Metallurgical News reported that Sichuan based Panzhihua Iron & Steel Group (Pangang) has achieved profit of CNY 848 million and core business income of CNY 23.6 billion in H1 2008 up by 11.42% YoY and 36.67% YoY respectively. Meanwhile, it shipped out over 300,000 tonnes of products with export value of USD 265 million.

Pangang also churned out 1.47 million tonnes of HR sheet up by 5.87% YoY, 814,600 tonnes of beam and rail steel up by 2.91% YoY and 473,600 tonnes of seamless steel pipe up by 19.87% YoY respectively. Its vanadium products output has been further expanded in the time frame, with the production of vanadium trioxide and high vanadium ferroalloy reaching 29.82 million tonnes up by 4.01% YoY and 31.43 million tonnes respectively up by 109%YoY.

Pangang said that power shortage and interrupted transport resulted from the bad weather at the year start has led to 185,000 tonnes of output loss for the mill. And the May 12 earthquake also caused CNY 1.05 billion of economic loss.

China steel product export to different countries

China steel product export from different countries in June 2008 totaled 5,216,302 tonnes and the export from January to June 2008 period totaled 26,909,242 tonnes.