TATA Steel to start work on Kalinga Nagar project soon

PTI reported that TATA Steel, which has been facing opposition from local people to its proposed Greenfield project at Orissa's Kalinga Nagar, announced that it will start the construction at the site soon.

Mr B Muthuraman MD of TATA Steel on the sidelines of inauguration of the Institute of Mathematics and Application in Bhuwneshwar said that "We will start construction of the plant at Kalinga Nagar soon.”

He said the company has already procured equipment and machineries worth INR 6,000 crore from Germany, China and other countries for its proposed 6 MTPA steel plant at Kalinga Nagar.

TATA Steel has proposed to set up the plant with an investment of INR 15,000 crore has and signed MOU with the state government way back in 2004 for setting up its plant, it could not proceed due to opposition from the people.

Indian Steel: Opportunities and Strategic Options

CONTENT

Topics
1. Indian steel: an introduction to its structure and growth
2. Capacity: crude and finished steel: growth trends by major producers and segments.
3. Production trend analysis, crude and finished steel, for major producers and segments.
4. Consumption trends by products and in different regional markets.
5. Detailed status of the steel market in India, by products and with specific details such as size and shapes for HR Coils, CR Coils and Sheets, Galvanized sheets, Rebars, Sections, Wire Rods and Plates.
5. New investments in steel: latest status of the projects.
6. Expected production of steel year wise till 2015, by products. Different scenarios.
7. Latest forecasts of annual steel demand by products till 2020.
8. The alloy and stainless steel market: trends in investment, production, consumption.
9. Forecast of alloy and stainless steel demand till 2020.
10. Specific opportunities in alloy and stainless steel.
11. Steel price trends and short term forecasts.
12. Costs of production of steel in India: past trends and forecasts.
13. The iron ore factor in Indian steel. Advantages and opportunities.
14. Details of captive mines with Indian steel producers and new prospecting and mining leases granted to them.
15. Coal and energy issues for the Indian steel industry: how is the industry placed today?
16. What is the impact of the rise in raw materials prices on major Indian companies or segments of the industry?
17. How are the merchant pig iron and sponge iron producers shaping up?
18. What is the steel scrap scenario? Estimates of domestically generated scrap and imports.
19. What are the M&A opportunities in Indian steel?
20. India’s external trade in pig iron, sponge iron, steel, iron ore and coal. What is the future for each of them?
21. Strategic Options and Recommendations

130 pages with more than 70 charts and tables

Scheduled for release on 1st September 2008

Price on release: USD 5000 or equivalent in INR
Advance booking price: USD 4000 or equivalent in INR (valid till 31st July 2008)

You can order your copy to reports@steelguru.com

Bramhani gets environmental clearance for steel plant

The Hindu reported that the Union Ministry of Environment and Forests IA Division has accorded environmental clearance to Bramhani Industries Limited on July 8th for setting up an integrated steel plant of 4 million tonne per annum capacity along with a captive power plant of 120 MW at Bramhani Hills in Jammalamadugu mandal.

Land issues delay JSPL & JSW plants in Jharkhand

DNA reported that the proposed Jharkhand plants of JSW Steel and Jindal Steel and Power have been delayed due to land acquisition issues.

Mr RP Singh CEO of JSW Steel Jharkhand said that “The Company has obtained all mandatory clearances, including those related to coal, iron ore mines and water. The only problem at this point is the acquisition of 6,500 acre for the project.”

He said that as per the MoU JSW signed with the Jharkhand government the construction of the steel plant should have started by now. Mr RP Singh said that “We will be able to meet the phase I deadline of 2011 only if we start construction by January in 2009. We hope to complete the land acquisition by then. He said that in the Chhota Nagpur area, the Chhota Nagpur Tenancy Rule is applicable as the region has a lot of tribes. The Chhota Nagpur Tenancy Rule overrules the land acquisition rule and that is creating problems for the company.”

JSW’s 10 million tonne plant is scheduled for completion by 2014.”

Jindal Steel and Power Ltd needs 3,100 acre for the project and so far, it has already acquired 600 acre from the government and 150 acre from villagers. The remaining 2,350 acre, however, has proved elusive.

Mr Avijit Ghosh VP of JSPL said that “I am not denying that there has been a delay in the process. It is taking longer than we expected and we are trying to expedite the process.”

He added that the negotiations with villagers were on to acquire the remaining land. He said “Land owners are not very keen on parting with their land. But we are trying to persuade them. It’s not an easy process and we have to be patient. We hope to complete the acquisition process by next year.”

JSPL plans to set up a 6 million tonne blast furnace and a 1,000 MW power plant for an investment of INR 15,000 crore. In the first phase, a 3 million tonne furnace would be set up by August 2010 and another 3 million tonne would be added by 2012.

JSW hires Indian Council for Forestry Research for EIA

The Telegraph reported that JSW Steel Limited has employed the Indian Council for Forestry Research & Training for an environmental impact assessment. Representatives of JSW Steel Limited & ICFRE recently presented terms of reference for carrying out the assessment with the Union ministry of environment and forests appraisal committee in New Delhi.

Mr RP Singh CEO of JSW said that “The entire 999.9 hectare area in Ankua falls under the Saranda forest reserve. The assessment by a reputed agency and the same vetted by a special committee of the ministry is necessary.”

He said that mining activities in the forest would take a toll on bio diversity and issues of water and noise pollution would arise and the effect of mining in the area has to be minimized.”

JSW Steel Limited is one of the few companies to start projects in the state. Earlier, the company was issued a prospective license for iron ore reserves. Later, it applied for a mining lease that got cleared by the state government and the Centre.

Indian steel majors pushing own retail outlets

ET reported that Indian steel majors such as TATA Steel, Essar Steel and JSW Steel are aggressively looking at expanding on the retail front to eliminate middlemen and help users get quality steel at fairer and transparent prices.

As per the report, TATA Steel has opened 6 Steel Junction stores in West Bengal. The company will open 20 additional stores in Jharkhand, Orissa and West Bengal by the end of the year and have a pan India presence by 2010. Various steel products ranging from furniture to utensils, lifestyle products, safes, almirahs and hardware items are sold at steel junction outlets.

Similarly, Essar retails flat steel products through a chain of 80 steel hypermarts spread across major steel consuming regions such as Gujarat, Maharashtra, Madhya Pradesh, Delhi, Haryana, Punjab, J&K, Himachal Pradesh and Chhattisgarh. The company plans to add new product categories such as long steel, structural steel and tubular steel to existing range of flat products at its stores.

JSW Steel is also opening its stores in many states.

Welspun update for Q1 2008

Welspun Gujarat Stahl Roh has recently declared its first quarter results by reporting profit of INR 71.1 crore n net sales of INR 1,090 crore. Welspun Gujarat Stahl Roh expects revenue in the July 2008 to September 2008 quarter to grow by 40% to 50% on heavy orders from both India and overseas.

Mr Akhil Jindal president of Welspun said that "It is almost USD 2 billion worth of orders that we have bid for. I am sure they would be coming sooner or later. We went to Algeria, we went to Europe. We are looking at Europe in a big way. I am sure our next set of orders should come from Europe."

Highlights for the quarter include
1. The company has order book of INR 7200 crore.
2. Interest cost has risen due to the loan borrowed for down stream projects.
3. The company has liquid assets in terms of cash or cash equal worth INR 1000 crore.
4. The company has total inventory of INR 54,000 tonnes.
5. Raw material and energy cost has increased.
6. Company's US plant will be fully operational in November or December.
7. It exports more than 90% of its output.
8. It is planning to invest INR 800 crore in 2008.

Eastern Railway freight traffic in Q1 up by 9.35% YoY

BL reported that in first quarter of the current fiscal Eastern Railway handled 11.994 million tonnes of originating freight traffic up by 9.35% YoY over 10.968 million tonnes handled the same period of last fiscal.

The report added that freight earnings during the period posted 15.01% growth at INR 635.04 crore. Total earnings during the period amounted to INR 980.62 crore, thus registering 10.19% growth.

BHEL forecasts profits to grow by more than 25% in 2008-09

Bloomberg reported that Bharat Heavy Electricals Limited forecasts that its profit and sales will increase more than 25% this fiscal year as it expands factories to build generators and turbines. Its profit reached INR 28.6 billion in 2007-08 on sales of INR 193.6 billion.

Mr K Ravi Kumar CMD of BHEL in an interview in New Delhi said that this is based said new capacities are coming in and its vendors have also increased their capability.

He said that BHEL, with INR 950 billion of orders at the end of June, has enhanced annual capacity to make equipment that can generate 10,000 megawatts of electricity from 6,000 megawatts last year. Capacity will increase to 15,000 megawatts by 2009 and 20,000 megawatts by 2011.

Kolkata Port to call bids for 16 million TEU capacity terminals

Exim News Service reported that cost estimates of Kolkata Port Trust’s proposed container terminal at Diamond Harbor on the Hooghly are reported to have more than doubled to INR 12.3 billion and KoPT will soon seek requests for bids for the 1.6 million TEU capacity terminal that is projected to achieve 1.1 million TEUs in its very first year of operation.

The project proposal which originally called for 2 phases with provisions for handling both dry bulk cargo as well as containers has since been revised by a committee and it will now be built in just 1 phase with 4 ship handling piers and 2 barge piers, 120 acres for yard space and back-up land.

Dr AK Chanda chairman of KoPT said that the container terminal will be built as a public private partnership on a build operate and transfer basis.

As per report, the West Bengal government will provide 23 hectares for the terminal, private owners 16 hectares and the Ministry of Defense and the Director General of Lighthouse and Lightships the rest of the land necessary.

Indian government spends only 7 million on Nano tech research

ASSOCHAM recently reported that the Indian government funding for the research and development in the Nano technology sector is mere 7 million dollars even while smaller countries such South Korea is spending around 233 million dollars.

Mr Sajjan Jindal president of Assocham said that "India is also lagging behind in the global nanotech based scientific publications, despite the growth it is witnessing in its Nano technology sector."

As per report, the figures appear dismal as compared to that of the developed countries such as Germany that spends 395 million dollars, France 301 million dollars and UK 180 million dollars on Nano technology.

Foster Wheeler in talks with BGR Energy for boiler manufacturing

BL reported that the global engineering and construction contractor and power equipment supplier Foster Wheeler Corporation is in talks with Chennai based BGR Energy for a possible collaboration for manufacturing power plant boilers in India.

Mr BG Raghupathy MD of BGR Energy at a recent press conference said that the company is in talks with a large multinational company for collaboration for producing power boilers. He did not mention Foster Wheeler.

He said that the MNC had supplied the boiler for a 460 MW project in Poland of the circulating fluidized bed combustion type and thus Foster Wheeler fits the description as it has supplied the boiler for the 460 MW Lagisza project in Poland, the biggest CFBC boiler ever to be supplied in the world.

Foster Wheeler’s expertise is in CFBC technology. CFBC boilers can burn any type of fuel such as a combination of imported and indigenous coals, lignite and refinery residue. Foster Wheeler which has supplied equipment for over 110,000 MW of capacity across continents has a back office in India for design work.

Non major ports to dominate Indian ports scene

ET reported that non major ports or state ports will have more say in the emerging Indian shipping and port scenario.

Even though ports in general have shown substantial growth in the last couple of years, experts cited it is the non major ports that stand out in any study. Not only that they are in large numbers, thanks to various developments, their performance levels have surpassed that of many of the major ports.

Till today if major ports continued to handle the bulk of traffic of the country that need not be case tomorrow as minor ports have been significantly increasing their share over a period of time. By notching up a higher growth rate non major ports, irrespective of their lower base have outperformed many of the major ports.

As per report, the major ports are handling around 74% of the traffic while remaining 26% is handled by minor ports. But the total cargo volume handled by major ports has increased from around 157.5 million tonnes in 1992 to 463.8 million tonnes in 2007 and the share of non major ports in cargo traffic has increased from less than 10% in 1990 to current level of 26%.
Going forward, the port traffic is estimated to reach 960 million tonne by 2013 or 2014. Cargo handling at all major ports is projected to grow at 7.7% per annum till 2013 to 2014 with other ports growing at a faster rate of 8.5% compared to 7.4% for the major ports. Considering the high capacity utilization rate at major ports, the minor ports are expected play major role in improving port infrastructure and adding further capacity.

According to some port analysts, some of the state port departments are more proactive than central ministry of shipping in promoting port projects. The new ports are being developed as built operate transfer, built own operate transfer, built own operate share transfer. All these developments are bringing in huge private investments to new ports. Out of total investment of INR 55,000 crore & 67% of investment is envisaged from private players in major ports. For building the additional capacity of 340 million, the investment of INR 3,300 crore is expected in non major ports.

The total capacity addition requirement at major ports is estimated at 100% of existing capacity of 510 million tonnes, while at non major it is estimated at 150% of existing capacity of 230 million tonnes.

Electrosteel Castings increases equity to INR 635 crores

Electrosteel Castings Limited has informed BSE that its board at its meeting held on July 21st 2008 has accorded its consent towards the enhancement of the investment in equity of Electrosteel Integrated Limited an associate Company from INR 630 crores to INR 735 crores, which will be required in a phased manner for increase in capacity from 1.3 million tonnes per annum to 2.2 million tonnes per annum of integrated steel Plant in Jharkhand.

Hyderabad metro rail project cost revised

Project today reported that the government has once again revised the Hyderabad metro rail project cost from the INR 9,696 crore to INR 11,814 crore due to the increasing traffic density in the city. The project cost has been revised for the fourth time by the Union government. Meanwhile, the Hyderabad Metro Rail has postponed opening of financial bids due to revision of project cost.

When the detailed project reports were prepared by the Delhi Metro Rail Corporation in 2003 the project cost was INR 6,746 for 2 corridors Chaitanyapuri to Miyapur and Secunderabad to Falaknuma. Later, it was decided to add another corridor from Habsiguda to Hi Tec City. The project cost was revised to INR 8,482 crore and the corridors were extended to 77 kilometer from 67 kilometer. The metro corridor was extended up to Nagole from Habsiguda and Shilparmam from Hi Tec City. As a result of this the cost has increased to INR 9,696 crore.

Hyderabad Metro Rail officials had proposed 219 coaches for metro trains on all 3 routes namely LB Nagar to Miyapur, JBS to Falaknuma and Nagole to Shilparamam based on traffic projections for 2008. Since the traffic flow scene has changed drastically in the last 5 years the Centre has decided to take traffic projections till 2013 by when the metro rail project is expected to be completed and increase the number of coaches in the trains.

Though traffic experts have recommended 372 coaches for all the 3 corridors, the central government has sanctioned 327 coaches.

New Holland Tractors to invest INR 250 crore in India

Project today reported that New Holland Tractors India a Fiat Group company will invest over INR.250 crore to 18 new tractors in the next 3 years. A total of 30 new tractors will be made available from the current 12 by 2011.

As per report, the company will also expand the current installed capacity of 30,000 units to 40,000 units by 2011. The company currently offers tractors between 35 horse power and 75 horse powers.

Malaysian UEM Builders to invest in infrastructure projects in India

It is reported that United Engineers Malaysia Builders, the wholly owned subsidiary of Khazanah National Berhad, has evinced interest to invest in infrastructure projects such as expressways, real estate and waste management projects.

UEM has already made investments of over INR 300 crore since its presence in India for the last 18 years. UEM has completed over 700 kilometer of roads with an investment of over INR 2,300 crore in UP, Karnataka, Kerala, Bihar, West Bengal, Gujarat, Andhra Pradesh, Tamil Nadu and Maharashtra.

Thermax announces Q1 results

Thermax Limited announced the following unaudited results for the quarter ended June 30th, 2008.

The Company has posted a net profit of INR 637.091 million for the quarter ended June 30th, 2008 as compared to INR 560.119 million for the quarter ended June 30th, 2007. Total Income has increased from INR 6763.031 million for the quarter ended June 30th, 2007 to INR 7271.543 million for the quarter ended June 30th, 2008.

The Group has posted a net profit after minority interest of INR 584.222 million for the quarter ended June 30th, 2008 as compared to INR 556.312 million for the quarter ended June 30th, 2007. Total Income has increased from INR 7238.800 million for the quarter ended June 30th, 2007 to INR 7829.940 million for the quarter ended June 30th, 2008.

Dalmia cement unit to set up new plants

Reuters reported that Dalmia Cement Bharat Limited recently said that its unit, Dalmia Cement Ventures Limited, would set up cement plants in phases with a total annual capacity of 10 million tonnes.

As per the report, Dalmia Cement current operates a 3.5 million tonnes per annum cement plant in the southern state of Tamil Nadu and is setting up 2 new plants in Andhra Pradesh and Tamil Nadu of 2 million tonnes each.

Power ministry to push for storage based hydro power projects

BS reported that Union power ministry is planning to give priority to storage based hydel power projects that involve building of dams instead of run of the river projects which harness the flow of the water to produce power for faster capacity addition to meet the growing energy needs of India.

Mr Anil Razdan union power secretary of India in a conference held by an industry body in New Delhi said that "Storage hydro projects are the way forward to achieve sustainable development of energy. There should be a greater emphasis on tapping the potential of storage hydro projects rather than run of the river projects."

Mr Razdan said that even run of the river projects that are commissioned are facing problems like silting which result in stalling of power generating equipment. For example, Teesta power project in Sikkim was not operational for one month because of high levels of silting in the water.

He added that run of the river projects have a limited scope of operation and generally lead to agitations by the local population due to gradual drying up of the water bed citing the Bhagirathi Bachao Andalon and urging the states to take required steps for the promotion of storage projects.

Industry expert said that "In storage projects, there is a better management of resources which facilitates the diversification of water resource to other purposes also like irrigation and drinking water supply."

Amalgamation of Sesa Goa is extended

Sesa Goa Limited has informed BSE the validity of Scheme of Amalgamation of Sesa Industries Limited with the Company has been extended up to October 31st 2008.

POSCO to set up new plate mill to add SBQ capacity

It is reported that POSCO is planning to spend KRW 1.8 trillion (USD 1.78 billion) on building a plant that would produce heavy steel plates to meet rising demand from shipbuilders.

POSCO in a statement said that the plant, whose construction is scheduled to be completed by July 2010, will have the annual production capacity of 2 million tonne of heavy plates used mainly for shipbuilding.

It said that once the plant starts production in 2011, POSCO's annual output of heavy plates will rise to 7.25 million tonne from the current 4.3 million tonne making the company the biggest manufacturer of the product.

POSCO estimates that South Korean demand for heavy plates will rise to 16 million tonnes in 2011 from 10.7 million tonne in 2007, while the nation's output will increase 88% to 13 million tonne over the same period. It said that consequently, South Korean shipbuilders will face a 3 million tonnes shortage of steel in 2011.

Nippon Steel halts Kamaishi Works after quake

Reuters reported that Nippon Steel Corp had stopped steel output at its Kamaishi Works in northern Japan for inspections after a strong earthquake jolted the area.

A Nippon Steel official at the Kamaishi Works said that it had also shut a 149 MW coal fired power plant at the facility for an inspection. The company supplies all the power output from the plant to Tohoku Electric Power Co.

The official said that it was not immediately clear when the company would restart the steel and power output operations at the facility.

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.

Corus to increase UK structural sections prices

Corus said that demand from the Construction sector remains strong in most key geographical markets. Consequently, Corus Construction & Industrial will increase the UK basis price of structural section by GBP 60 per tonne, effective to dispatches from September 28th 2008.

Corus Construction & Industrial said that this change will be reflected in the published price contained in Price List 5. An addendum to Price List 5 will be issued in September.

LME steel billet spot trading starts today

On Thursday July 24th 2008 spot or cash trading will be available, marking the end of the launch period for both the Mediterranean and Far East LME steel billet futures contracts.

The first cash dates falling due provide the steel billet industry with access to valuable daily spot reference prices, and offers market participants the full flexibility of a range of daily trading dates out to 3 months.

Steel billet futures can now be traded every business day out to 3 months, then weekly, every Wednesday of the week, months 3 to 6, then monthly, every 3rd Wednesday of the month, months 7 to 15.

Since launch the contracts have traded over 110,000 tonnes with a turnover in excess of USD 110 million.

BMZ planning flat products plant

It is reported that the largest steel plant of the Republic of Belarus, Byelorussian Steel Works, is looking for partners to build up a new production plants for flat steel at home.

As per report BMZ has started the negotiations with its potential cooperation partners in Russia, Germany and South Korea.

The estimated project cost is around USD 2 to USD 2.5 billion and the project is expected to be approved by the government in 2009 and will be completed in next 5 to 6 years.

US HR transaction prices for July remain flat MoM

Purchasingdata.com is posting an early July transaction price for hot rolled steel sheet in the Midwest at USD 1,068 per ton. This price average is just 1% higher than the USD 1,052 price average for June although it is 96% higher than in December 2007.

As per report, although some market researchers are estimating July bookings at prices in a USD 1,074 to USD 1,080 range, but transactions actually are being reported this week as low as USD 1,060 for deliveries within four weeks.

Interestingly, the mills still are looking for a consensus on future hot rolled pricing: Nucor now has an August list price of USD 1,120 per tonne for hot rolled sheet while reference prices for US Steel and ArcelorMittal in September are USD 1,100. All of these proposed prices are less than expected earlier, which supports the view that many buyers at original equipment manufacturing firms and service centers have gone on vacation.

In fact, some market analyses suggest hot rolled sheet prices could fall to USD 900 per tonne by December due to the seasonal fourth quarter slackening in demand.

One buyer said that the tentative nature of future pricing as evidence that sheet prices may have peaked. He said that “The price increase could prompt some to buy in advance, but I think we are pushing the enveloper.”

Mr Corrado De Gasperis CEO of Novamerican steel service center said in his quarterly earnings statement that recent monthly price increase by the steel mills appear relatively weaker than prior increases. He and other analysts say that the initial spike in prices were pinned to cost increases and then by allocations of supply as the mills boosted exports. However, there has not really been a surge in exports and now are slowing because of the strengthening dollar.

Sidor operating on PDVSA funds

BNamericas reported that Venezuelan steelmaker Sidor, which is in the midst of being nationalized by President Mr Hugo Chávez is operating with money loaned by state oil company PDVSA.

Mr Pedro Rondón board member of Sidor said that "Everything the Venezuelan state has done at Sidor since nationalization, from a huge celebration party to a bonus payment for each employee, has been with PDVSA resources.”

He said that in early June, Sidor incorporated 890 external employees to payroll as part of an agreement that calls for the inclusion of 1,300 new employees. All employees have received the bonus, which is part of the latest collective contract.

Mr Rondón also said that “Although the company is paying the amount agreed upon with employees in the collective agreement established in May, the document has not been signed nor has it been recognized by the corresponding organizations such as the comptroller, the public prosecutor or the attorney general.”

He added that the situation is the result of delays in transferring 59.7% of Sidor's shares from the Ternium group to the Venezuelan government. He said that "The employer has to sign the contract and that has not been established yet because the shares haven't been transferred. So no decisions have been made.”

Danieli to build metal R&D centre in Thailand

Bangkok Post reported that Danieli Far East Co, a subsidiary of Italian based Danieli C Officine Meccaniche SpA, is proceeding with a 100 million investment to expand its existing facilities into the group's regional production, design and research centre in Thailand. Investment in the R&D facility is projected at over 3 million.

Mr Boonnarg Mockmongkonkul CEO of the Thai unit of the world's leading metalworking machinery, equipment and system designer said that the new facilities in Thailand would include the group's first overseas research and development centre.

Mr Boonnarg said that the group selected Thailand as its overseas R&D and design centre due to the availability of supporting facilities and skilled human resources.

He added that the new R&D centre will focus on developing advanced steelworks machinery technology and solutions to serve worldwide demand

Northwest Pipe Q2 net income up by 47% YoY

Northwest Pipe Company reported record sales, earnings and backlog for the second quarter of 2008. Sales in the second quarter ended June 30th 2008 were USD 112.1 million as compared to USD 101.9 million in the same quarter of 2007. Net income in the quarter was USD 8.4 million up by 47.36% YoY as compared to USD 5.7 million in the second quarter of 2007.

Water Transmission Results
Revenues for the Water Transmission Group were USD 74.9 million in the second quarter of 2008 compared to USD 73.0 million in 2007. Gross profit in 2008 was USD 14.8 million or 19.7% of sales, compared to USD 15.2 million or 20.8% of sales in 2007.

Mr Brian W Dunham president & CEO of Northwest Pipe said that "The Water Transmission Group's performance was solid throughout the quarter. Margins declined slightly compared to recent quarters, mainly due to increased raw material costs, but sales increased sequentially.”

Tubular Products Results
The Tubular Products Group's sales were USD 37.2 million in the second quarter of 2008 as compared to USD 28.9 million in the second quarter of 2007. Gross profit for the quarter was USD 9.8 million or 26.4% of sales as compared to USD 3.6 million or 12.5% of sales for 2007.

Mr Dunham said that "The Tubular Products results are clearly outstanding. In spite of continuing concerns of a slowing economy, we have seen strong demand from the energy, agriculture and construction markets. Our costs are obviously higher due to increasing raw material costs, but the market has been strong enough so far to support prices that offset these cost increases."

Over the past three months, the Company announced the following major projects:

1. USD 22.0 million Prairie Waters Project for the City of Aurora, Colorado

2. USD 19.0 million for the Lewis and Clark Regional Water System in South Dakota

3. USD 10.6 million energy products order for domestic gas gathering pipe and pipe for a storage tank farm in Ghana

4. USD 8.0 million for the Alternative Intake Project Pipeline for the Contra Costa Water District in California

Northwest Pipe Company manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of applications including construction, agricultural, energy, traffic and other commercial and industrial uses.

Ferrous scrap price records first drop in 9 months in Osaka

JMB reported that ferrous scrap market price decreased around Osaka for the first time since October 2007 after the price dropped around Tokyo due to slower export shipping.

The dealers around Osaka try to increase the shipment for the local makers when they expect the price could decrease from more than JPY 70,000 per tonne level for H2 grade.

Japan reduces GDP forecast to 1.3% for current fiscal

It is reported that Japan’s government has revised its GDP growth forecast for the fiscal year to next March down from 2% to 1.3%.

AS per report, the inflation rate in Japan likely rose to a 10 Year high. And core inflation climbed 1.9% in June compared with the same period last year after rising 1.5% in May.

Japan’s weaker economic outlook has mainly been driven by rising energy and raw material costs, a US economic slowdown and a stronger yen

US commerce secretary appoints new members to Manufacturing Council

US Commerce Secretary Carlos M Gutierrez announced the new membership of the U.S. Manufacturing Council, including a new chairman and vice chair.

The release added that Mr Fred Keller chairman & CEO of Cascade Engineering will serve as the new chairman of the Manufacturing Council. Mr Kellie Johnson president of ACE Clearwater Enterprises will serve as the vice chairman. The members of the Council include:

1. Mr Dean Bartles vice president & GM of General Dynamics Corp
2. Mr John Cantlin president of Lifoam Industries
3. Mr Daniel DiMicco chairman, president & CEO of Nucor Corp
4. Mr Daniel W Holmes Jr chairman of Morrison Products, Inc
5. Mr William Jones president of Penn United Technology, Inc
6. Mr Peter Kamenstein president of Kamenstein a Division of Lifetime Brands Corp
7. Mr James McGregor president of Morgal Machine Tool and Ohio Stamping and Machine
8. Mr Michael Nowak president & CEO of Coating Excellence International
9. Mr Jason Speer vice president & GM of Quality Float Works, Inc
10. Mr Harding Stowe president & CEO of RL Stowe Mills Inc
11. Mr Edward Voboril chairman of the Board of Analogic
12. Ms Della Williams president & CEO of Williams Pyro Inc

Mr Gutierrez said that “The Manufacturing Council is a strong voice for the private sector. The Council focuses on issues that are critical to manufacturing competitiveness, including improving innovation, lowering energy costs and preparing a skilled workforce for the jobs of the future. I look forward to working closely with the Council to ensure that the U.S. manufacturing sector competes on a level playing field in the world marketplace for generations to come.”

The Manufacturing Council was established to ensure regular communication between the federal government and manufacturing sector. The Council works directly with the Commerce Department to advocate, coordinate and implement policies that seek to strengthen U.S. manufacturers’ competitiveness worldwide. The newly appointed council consists of 14 private-sector executives who reflect the diversity of industry, size of company and geography.

Singapore defers many projects on higher costs

According to Mr Mah Bow Tan Singapore National Development Minister, Singapore is deferring a further USD 1.3 billion of construction projects as material and labor costs rose as much as 5% in the first quarter.

Mr Mah said that this brings the total value of public sector projects deferred in the city state to SAD 4.7 billion. He added that building costs rose 30% in 2007 and labor and equipment prices jumped by 19%.

Mr Mah said that “Projects that are essential to meet Singapore's economic and social needs, such as key infrastructural development, will proceed as planned. We will continue to monitor the situation closely and work with the key industry stakeholders such as developers, builders and quantity surveyors to mitigate the cost increase as much as possible.''

He added that prices of materials used in construction such as steel bars and concrete have risen to record highs because of global demand increasing fuel costs. Singapore is building two casino-resorts that will cost more than USD 3 billion each, as well as an extension of its subway system and a SAD 1.2 billion sports facility to boost economic growth.

Mr Mah said that government will continue to monitor the situation and work with the construction industry to mitigate the cost increase as much as possible.

US Steel Mon Valley works to dedicate new training hub

It is reported that United States Steel Corporation will dedicate a new Mon Valley Works Training Hub on July 24th 2008.

The fully renovated, state of the art facility, which is located on a portion of the property once occupied by the company's Duquesne Works, will serve as the primary training site for all Pittsburgh area Mon Valley Works employees.

Western Extrusions orders aluminum extrusion press

Texas based Western Extrusions Corp has placed an order with SMS Meer for the supply of a 75/80 million aluminum extrusion press. The Schloemann front loading press has an extrusion force of 8,000 t and a billet charge weight of up to 630 kilogram and is the largest machine of this kind that SMS Meer has built to date in North America. It will be used for the production of high quality extruded aluminum profiles for the transport and automotive industry.

The extrusion press ordered from SMS Meer will be built as a shortstroke front loading press. In the meantime front loading presses have established themselves as the standard on the extrusion press market. The advantages of this design are the compact, sturdy frame and the short cylinder strokes with the associated high productivity thanks to short idle times and the high product quality thanks to the centric loading of the aluminum billet inside the press. The new extrusion press is scheduled to go into operation in spring 2010.

Western Extrusions is thereby expanding its product spectrum and strengthening its market position. The company was founded back in 1979, is still family owned even today and has 600 employees. Western Extrusions is one of the leading producers of extruded profiles for use in the construction sector, transport and industry. Western Extrusions is, for example, one of the largest manufacturers of aluminum seats for sports stadia.

Tenova HYL signs agreement with General Holding for second ENERGIRON DR module

Tenova HYL announced that it has completed the licensing agreement and work is now underway for the second ENERGIRON direct reduction plant at the new General Holding Corporation facility at Abu Dhabi in UAE.

GHC is currently building a new steelmaking complex that will produce 1.4 million tonne per year of long products. The complex is being installed at Mussafah and includes a 1.6 million tpy ENERGIRON DR plant being supplied by Danieli and Tenova HYL.

The ENERGIRON plant is part of a turnkey steel mill complex for which Danieli is the EPC contractor. The DR plant will transport hot DRI to the electric furnace meltshop using the highly successful HYL HYTEMP Pneumatic Transport System.

The second stage of the GHC project, now under construction too will be a copy of the first stage, including a new DR module and HYTEMP System. Startup of the first stage of the GHC complex is expected in early 2009 and completion of the second stage project is planned for 2011. Upon completion, GHC will have 3.2 million tonne per year of hot DRI capacity for steelmaking.

ENERGIRON is the innovative direct reduction technology jointly developed and marketed by Tenova HYL and Danieli & Co. Through more than 50 years of research and development and industrial application, the technology has evolved into what is today the most flexible and economical direct reduction technology in the industry.

Modernization of the foundry at Diehl Metall Messing

Diehl Metall Messing, Röthenbach an der Pegnitz of Germany has placed an order with SMS Meer for the supply, erection and commissioning of a new vertical continuous three strand caster for the production of brass billets. With this investment, Diehl Metall Messing plans to replace the existing two strand caster and hence safeguard the long term competitiveness of the company.

The new continuous caster will satisfy modern production demands and is characterized by a high degree of automation and minimum maintenance. In order to minimize the standstill time between dismantling of the old plant and the start up of full production again, erection and commissioning of the new plant will be carried out during the works closure in summer 2009.

Diehl Metall Messing is a subsidiary of the Diehl Group with its worldwide activities and with an annual capacity of 125,000 tonne of brass bars, hollow bars and profiles is one of Europe’s leading manufacturers in this segment.

Claymont Steel announces extension of expiration date

Claymont Steel Inc announced that the expiration date for its previously announced cash tender offer for any and all of its outstanding 8.875% Senior Notes due 2015 has been extended to August 1st 2008. The early tender on July 24th 2008, remains unchanged. The Company has elected to forego its option to settle Notes validly tendered prior to the early tender date on an early settlement date.

Except as described above, all other terms and conditions of the tender offer remain in full force and effect. Consummation of the tender offer is subject to the satisfaction or waiver of certain conditions, including but not limited to a financing condition. Consummation of the tender offer is not conditioned upon receipt of any minimum principal amount of the Notes.

RBS Greenwich Capital is acting as dealer manager for the tender offer. The information agent and depositary for the tender offer is DF King & Co Inc.

Gulf Finance to create steel giant in the MENA Region

It is reported that Bahrain's Gulf Finance House GFHB.BH would set up a USD 5 billion steel firm with partners to help meet growing demand for construction materials in the region. HadeedMENA aims to plug the shortfall in domestic steel production in Middle East and North Africa.

Gulf Finance in a statement, without clarifying whether the production would take place at one or more plants, said that Hadeed MENA would have initial capacity of 8 million tonnes of steel per year for the next four years.

The project will deliver a capacity of 8 million tonnes of steel per annum in the next four years, and target to reach 12 million tonnes in the future, serving 15% of total regional needs and become one of the key steel producers in the MENA region.

HadeedMENA will operate in a number of locations across Asia and Africa, serving both upstream and downstream requirements in the marketplace. Upstream production will be located in countries rich in iron ore and coal, while downstream activity will focus on countries with exceptionally high demand across the GCC and MENA region.

Other partners in the venture are Emirates International Investment Co, Khaleej Development Co, Q-Invest and First Energy Bank. Leading technical partners and market advisors include MN Dastur and Gulf Organization for Industrial Consulting.

Mr Esam Janahi chairman of Gulf Finance House said “We intend to differentiate ourselves by taking a top to bottom approach to the value chain. It will focus both on upstream productions for steel billets as well as the downstream manufacturing for steel re bars and structures. The company is currently in the final negotiation stages for a number of partnerships and acquisitions that we will be able to announce in the near future.”

Iranian angle prices soaring on short supply

It is reported that due to the increased demand of angle bar, the current price of angle bar has surpassed the price of I beam in Iran as demands for angles is driven by strong construction boom.

As per report, Iranian distributors are selling angles in size of 30mm x30mm to 120mmx120mm at USD 1,500 per tonne to 1,600 per tonne on EXW basis, which is about USD 80 per tonne higher from last week and USD 165 per tonne from four weeks ago.

Iran imported around 1.2 million tons of I beam during the period from March 20th 2007 to March 19th 2008 up by 3 times than the same time last year.

(Sourced from Yieh.com)

Libya to double cement output by 2011

According to Libya government official that its government is planning to expand cement production to 15 million tonnes by 2011 from 8 million.

Mr Khalifa Ahmed al Badr, head of the state owned National Mining Corporation said that the Tripoli government awarded licenses to four foreign companies out of 24 applicants earlier this month to set up cement related operations to exploit natural resources including iron ore, lime and clay.

He said that these natural resource sites are offered for exploitation by investors via tenders on the same way as we do with oil and gas because we give a priority to develop the cement industry.

Mr Badr did not name the four foreign firms which won the licenses to operate in Libya but said these companies have to form partnerships with Libyan firms whether state owned or private ones. Mr Badr said that the National Mining Corporation fixed the minimum share of the Libyan side in the partnership operation at 50%. He also added that the bid winners have also to pay LYD 25,000 as upfront payments.

Libya said earlier in 2008 that it planned to spend LYD 150 billion on public works including building schools and renewing water and sanitation systems over the next five years.

Section steel prices slide in southern Europe

It is reported that the demand for section steel from Turkish mills for middle and small size remains weak in southern Europe.

As per report, the price of section steel with size of 140mm or less was being quoted at TRY 1,610 to TRY 1,710 per tonne (USD 1,354 to USD 1,439) EXW Turkey.

The export price for August shipments was FOB USD 1,350 to USD 1,360 per tonne last week and that of flat steel was quoted at USD 1,360 to USD 1,370 per tonne FOB.

Drake & Scull International to enter into Saudi Arabia

Business 24-7.com cited Mr Khaldoun Rashid Tabari CEO of Drake & Scull International as saying that his company is entering the Saudi Arabian market for the first time after winning a major contract in partnership with a company in the kingdom.

Mr Khaldoun Rashid Tabari said that “We will soon announce a USD 200 million project, which was won in a joint venture between our sister company in Abu Dhabi and a Saudi company.” He said that it will be the first time Drake & Scull has operated in Saudi Arabia.”

He said that “DSI is also currently tendering for five jobs in the GCC and is looking at partnerships. There will be a construction boom in Saudi Arabia similar to what we have seen in China and India. We want to be there.”

Mr Khaldoun Rashid Tabari said that “The growth curve in Saudi is still at an early stage and it thus holds tremendous potential. It is like a sleeping giant let us not underestimated Saudi Arabia and its 20 million people. Any company that wants to be successful has to have some foresight. It is a no brainier to be in Saudi Arabia at the moment. If we are talking about the high growth curve in Dubai, in terms of construction, then Saudi is at an early stage.”

He added that “The growth in population, the average income per person with the petrodollars these factors are going to have a huge impact on the economy. We are already feeling it now. The trend will be to build and build more. We have identified what we want to do there and are far into our plans. And we will continue to build on that.”

Krishnapatnam Port set to boost trade with GCC

Zawya.com reported that the newly opened Krishnapatnam Port in Andhra Pradesh, built by the Navayuga Group which has infrastructure development projects in the UAE, will open a logistics corridor for GCC companies to expand their ties with India. The newly port will boost the country's trade with the GCC countries.

Mr Antony David GM of Navayuga Engineering Company said "Recent statistics from the Abu Dhabi Customs Administration confirm that India is one of the UAE's top three re export destinations. He said that trade between the two countries is growing and Krishnapatnam Port will play a key role in further strengthening links."

Mr David said "These figures indicate the rising demand for logistics support in India which Krishnapatnam, as the country's largest private port, will deliver. He said that with the opening of the first phase the port can handle 14 million tonnes of iron ore, 7 million tonnes of coal and two million tonnes of general cargo per year with a maximum ship size of 65,000 deadweight tonnage."

According to the report, total capital expenditure on the port amount to INR 120 billion and with an eventual cargo capacity of 125 million tonnes, it will be one of the largest container terminals in the country. The first phase includes four berths, each of which are 300 meters long and can handle four vessels. 7 more berths will be added when the second phase is completed shortly and eventually there will be 41 berths with a total quay length of 12.5 kilometers. The port will eventually be able to handle up to seven million 20ft equivalent units per year.

Al Waha Maritime acquire 49% stake in GMMOS Group

Zawya.com reported that Al Waha Maritime, a subsidiary of Waha Capital, has acquired a 49% stake in GMMOS Group. The acquisition follows an agreement between Waha Capital with private equity firm Abraaj Capital.

Under the agreement, Al Waha Maritime had acquired 40% of the strategic investment from investors exiting the co investment vehicle, and the remaining 9% was acquired from Abraaj Buyout Fund II.

Abraaj said in a statement recently that proceeds from the sale of the 9% ABOF II stake will be applied towards reducing the cost of the original Abraaj Capital investment.

Mr Samer Al Haj CEO of Waha Capital said that this acquisition is in line with our strategy to build a significant regional maritime business alongside other businesses from our base in Abu Dhabi. He said that this is the first step in the long term business development program for Waha Maritime, our newly created subsidiary. Waha Maritime is keen on identifying acquisition and JV opportunities in the wider Gulf region

Mr Arif Naqvi vice chairman & CEO of Abraaj Capital said that as one of the leading suppliers to the offshore industry, GMMOS Group is uniquely positioned to meet the needs of companies active in offshore exploration and development in the Gulf and Caspian regions.

Samudra Shipyard delivers houseboat to Arab client

BL reported that it was an adventure of sorts for a team from the Kochi based Samudra Shipyard when it had to negotiate high waves along a crowded Abu Dhabi port to deliver a houseboat constructed by them to a buyer there.

As per report the team was led by Mr S Jeevan CEO of Samudra Shipyard and the boat was built at a cost of INR 1 crore, including freight charges. The boat was taken aboard a cargo ship from Kochi. It had to sail almost 80 nautical miles through the choppy sea, he said.

Houseboats are ideal for placid backwater travel but they are not seaworthy. Left with no option, the team decided to go ahead with the journey. The sea was rough, with waves rising to a height of four to five feet. The boat rolled and pitched, had to negotiate their way through the crowd of ships entering the port. The team also encountered technical snags like locating the route through GPS as these equipment flashed instructions in Arabic.

Mr Jeevan noted that the company is in the process of constructing sport fishing boats for Sweden a houseboat for a celebrity client in the Caribbean and regular house boats for the Kerala market.

Diar Real Estate invites bids for Doha Convention Centre

MEED reported that local developer Qatari Diar Real Estate Investment Company has invited selected companies to bid by September 7th for the contract to build the Doha Convention Centre, which will include the country's tallest building. It is one of several high rise schemes planned for Doha.

According to the report, the Doha Convention Centre & Tower project is worth USD 600 million. The centerpiece of the project will be a tower that will be at least 400 meters high and have a built up area of 180,000 square meters. It will contain a hotel, apartments and shops.

As per the report the built up area of the convention centre will be 100,000 square meters. The US' Murphy Jahn prepared the concept designs for the project. US based Turner Construction International was appointed as the project manager in 2006.

The project, which will be located close to the convention centre on Doha Corniche, involves the construction of a 55 storey building with four levels of parking and a total built up area of 140,000 square meters. Bahrain based Projacs is the project manager.

Canada announces AD and subsidy values on Chinese pipes

On July 21st 2008, the President of the Canada Border Services Agency made final determinations of dumping and subsidizing pursuant to paragraph 41(1) (a) of the Special Import Measures Act with respect to certain carbon steel welded pipe originating in or exported from the People’s Republic of China.

The products covered are commonly identified as standard pipe, in the nominal size range from 1/2 inch up to and including 6 inches (12.7mm to 168.3mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively.

The Canadian International Trade Tribunal is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by August 20th 2008. Provisional duties will continue to apply until this date. The Statement of Reasons regarding this decision will be issued within 15 days.

Margins of Dumping and Amount of Subsidy

1. WAMD - Weighted Average Margin of Dumping (As a % of export price)
2. WAMS - Weighted Average Margin of Subsidy (As a % of export price)
3. Amounts of subsidy in CNY per tonne

Chinese HDG export offers on downward trend

It is reported that there have been less Chinese hot dipped galvanized steel export activities since early July as Chinese domestic market prices have seen evident drop in last two weeks and export offers are also softening.

Domestic market prices are still on the decrease. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7400 per tonne that for 0.5mm HDG by private steel makers is at CNY 7580 per tonne down by CNY 60 per tonne and CNY 100 per tonne respectively from last Wednesday. The downward corrections are expected to spread into next month.

Export quotation for 1.0mm HDG Z120 by tier two steel mills is at USD 1130 per tonne to USD 1150 per tonne FOB. By comparison, offers by tier one steel makers are at around USD 1160 per tonne to USD 1170 per tonne FOB for 1.0 HDG Z120. Transaction prices are said to be USD 20 per tonne to USD 30 per tonne lower and steel makers are more willing to negotiate on export prices as long as there is real order.

(Sourced from MySteel.net)

2008 China Steel International Trade Summit

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

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

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

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

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

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

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

World Scrap Metal Congress 2008

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

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

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

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

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

EU to take a call on AD duties on Chinese HDG

SBB reported that the investigation into imports of hot dip galvanized steel from China into the European Union will be on the agenda of the European Commission’s next anti dumping committee meeting this week.

AS per report, EC will inform representatives of EU member states on the current state of the investigation and consult on ways in which to proceed.

The options are either to discard the case, pursue the imposition of provisional anti dumping measures or extend the investigation.

China steel exports to different countries in H1

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

(In tonnes)

(Sourced from MySteel.net)

Jiangsu demolishes outdated iron and steel capacities

According to the results of 2007 on pollution and emission decreasing i from 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 over fulfilled 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 tonnes. 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 tonnes.

Chinese steel industry launches green revolution

In 2007, SO2 emissions by China's large and medium sized steel and iron enterprises were estimated at 756,368 tonnes 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. 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.

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. With comprehensive technologies and treatment plans, WISCO is expected to realize zero discharge of wastewater by 2009.

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 in during January to June 2008 up by 9.42% YoY and steel rolling of 2.04 million tonnes up by 7.94% 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 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.

Chinese pig iron export to different countries in H1 of 2008

China pig iron exports from different countries in June 2008 totaled 35,806 tonnes and the export from January to June 2008 period totaled 183,527 tonnes.

In tonnes

(Sourced from MySteel.net)

Taiyuan Steel foraying into energy business

China Securities Journal reported that Shanxi Taiyuan Iron & Steel Co Ltd has decided to build Shanxi Taigang Group Energy Co Ltd which means the steelmaker has further sped up the development of energy related industry.

The new company's business will cover coal exploitation, coal washing and dressing, coal bed gas development and waster heat and waster energy utilization and will attend the consolidation in Shanxi's coal industry after its establishment.

Taiyuan Steel boasts unique advantages to develop energy industry. And it has gained billion tonnes of quality coking coal resources at Linxian, Lvliang with the support the local government.

The coal mine can be built to a 6 million tonnes per year large scale washing cleaned coal mine, and is also one of the largest coal mines in the country in terms of reserves and production.

The coal mine, once put into operation will reap at least CNY 3 billion of profit per annum with potential value of approximately CNY 100 billion. And it will also provide low cost quality coking coal resource to Taiyuan Steel after its completion.

Gansu conducts energy consumption audit on key firms

According to statistics during the first five months, energy consumption of added value per CNY 10,000 among 209 key industrial enterprises in Gansu who consume more than 10,000 tonnes of standard coal including metallurgy rose more than 2% YoY.

14 state monitored key firms consumed 6.5768 million tonnes of standard coal up by 11.4%.

The local government sent 5 inspection teams to conduct an energy audit over 164 enterprises consuming more than 10,000 tons of standard coal in the province from July 17 in a bid to realize a target of reducing 4.5% of energy consumption within this year.

Egang profit in H1 up by 182% YoY

It is reported that Echeng Iron and Steel Company Ltd realized sale income of CNY 6.692 billion in H1 2008 up by 69.11% YoY and profit of CNY 241 million up by 182.16% YoY.

Through product mix adjustment and improving, Egang strengthened the production of high quality and high grade steel, and made progresses on new product development, and improved the product quality.

The company is targeting at a profit of CNY 500 million for 2008.

Hanggang sales revenue in H1 reaches CNY 35 billion

It is reported that in the first half year, Hanggang Group posted CNY 35 billion sales revenue and CNY 1.19 billion net profit.

Of which, Banshan base realized CNY 10.03 billion sales revenue up by CNY 1.046 billion, sold 20.288 million tonnes of steel up by 2.291 million tonnes up by 12.73% YoY.

China facing pressure to raise fuel and electricity prices

According to Financial and Economic Affairs Committee of the National People's Congress, China is under strong pressure to raise fuel and electricity prices.

It said last month's price increases of 16% for gasoline and 18% for diesel will add 0.5 percentage point to annual consumer inflation.

The committee said after the price hike, domestic fuel prices are equivalent to about USD 90 a barrel in crude oil costs, though international crude prices of late have hovered around USD 140 per barrel. It said the latest electricity price increase is also far from sufficient to end losses of power producers due to rising coal prices, which are market oriented.

China hiked electricity prices by 4.7% effective July 1st 2008.

Chinese scraps import from different countries

China scraps steel product import from different countries in June 2008 totaled 199,315 tonnes and the import from January to June 2008 period totaled 1,438,525 tonnes.

In tonnes

(Sourced from MySteel.net)

Minmetals expect its H1 2008 net profit to rise by 100%

It is reported that Minmetals Development Co expected its H1 2008 net profit to show a rise of at least 200% buoyed by expansion of its business.

The firm, controlled by China Minmetals said that its earnings were boosted by the acquisition of a steel plate producer in northeast China through a rights offer. It booked a net profit of CNY 385.05 million in the first six month of 2007.

As per report, the estimate for the first half was based on unaudited figures. Listed Chinese companies are required to issue preliminary estimates if they expect earnings for rise or fall more than 50%.

Minmetals Development said detailed first half figures would be released in its interim report.

Jigang Group to issue CNY 1.5 billion in short term debt

It is reported that Jigang Group, parent of Jinan Iron & Steel Co Ltd plans to issue CNY 1.5 billion worth of 365 day debt on July 28th.

Jigang Group in a statement said the yield will be determined through a bookbuilding. It said proceeds from the bond issue will supplement working capital.

Industrial and Commercial Bank of China will be the underwriter for the issue.

Hebei Steel Group in H1 2008 produced 15.56 million tonnes of Steel Products

According to China local Metallurgical Industry Association, Hebei Iron & Steel Group has churned out 15.04 million tonnes of pig iron, 17.29 million tonnes of crude steel and 15.56 million tonnes of finished products in the first half of this year, up by 1.96 million tonnes, 2 million tonnes and 1.65 million tonnes respectively.

Hebei Iron & Steel Group also yielded 2.58 million tonnes of pig iron, 3.02 million tonnes of crude steel and 2.74 million tonnes of finished products in June. The steel group has reaped desirable outcome for product mix improvement amidst stable output growth. And produced 780,600 tonnes of extra heavy plate, 1.03 million tonnes of heavy plate and 246,000 tonnes of heavy sections in the time frame, up 111,500 tonnes, 67,300 tonne and 12,300 tonnes respectively over last year.

Hebei Steel Group, as a result of merger of Tangshan Steel Group and Handan Steel Group has officially started operations since the end of Jun. And the steel group's crude steel capacity has reached 31m tons per annum, overtaking that of Shanghai-based giant Baosteel and accounting for 29% of Hebei's total crude steel output.

Local Metallurgical Industry Association predicts the group's crude steel capacity would reach 35 million tonnes for this year.

(Sourced from MySteel.net)

Desheng Steel's H1 2008 sales Revenue up by 75% YoY

It is reported that Yunnan-based Desheng Iron & Steel Co Ltd has achieved sales revenue of CNY 2.85 billion in H1 of 2008 up by 75% YoY or CNY 1.22 billion from the same time last year, with value added tax of CNY 134 million up by 118.6% YoY or CNY 72.41 million over last year.

Desheng Steel was founded in August 2000 and now is the largest privately owned steel enterprise in Yunnan province, with annual production capacity of 1.5 million tonnes of iron and crude steel respectively.

Sinosteel Futures sets office in Chongqing

It is reported that Sinosteel Futures Co Ltd a subsidiary of Sinosteel recently sets division of business in Chongqing. In order to make well preparation for its Steel product futures which is hopefully to be unveiled at the end of this year, Sinosteel appoints Sinosteel Future to layout sale departments around China.

Mr Li Tao GM of Chongqing sale department said that "Up to now, we have set 6 offices in Beijing, Shanghai, Dalian, Wuhan, Nanjing and Chongqing."

Sinosteel Future's sale department is reported as the tenth futures sale department in Chongqing currently.

NDRC approved ore port project for VLOC in Lianyungang Port

It is reported that China's National Development and Reform Commission has approved a project of building 250,000 tonne ore port for very large ore carrier in Liaoyungang Port.

As per report, with one unloading berth and the supporting facilities, the project is designed to gain a capacity of unloading and storing as 120 million tonnes in initial stage and then as 150 million tonnes in future.

The project attracts about CNY 1593 million investments. After completion, the new port will largely release the transporting pressure in Lianyungang Port.

General Steel announces 99% of Maoming Hengda Steel

General Steel Holdings Inc announced that it has acquired 99% of Maoming Hengda Steel Group Ltd a steel products processor located at Maoming city, Guangdong province in China's southern coastal region.

General Steel Holdings entered into the purchase agreement with Hengda on June 25, 2008. Through its subsidiary, Qiu Steel Investment, Ltd General Steel paid MYR 50 million cash to purchase the company from private parties.

Mr Wang appointed as chairman of the Board of Ningxia Heng Li Steel

Ningxia Heng Li Steel Wire Rope Co Ltd announced that the Company has named Mr Wang Dongming as Chairman of the Board to replace Mr Zhang Jinghua.

Mr Chen Wenduan appointed as GM of China Steel Structure

China Steel Structure Co Ltd announced that it has appointed Mr Chen Wenduan as GM in the Company, replacing Mr Su Xuanjiu effective August 1st 2008.

Sichuan Hongda sees H1 net down by 95% YoY

Reuters reported that China's Sichuan Hongda Co net profit in H1 2008 would fall at least 95% YoY to 98% YoY due to a shutdown caused by a devastating earthquake in May.

China's Sichuan Hongda Co in a statement filed to the Shanghai Stock Exchange said that the company's operations have not yet fully returned to normal after the earthquake on May 12 forced its subsidiaries in southwest China's Sichuan province to halt production.

The statement said the quake caused direct economic losses of CNY 160.2 for the company. It said a sharp decline in zinc prices in China has also eroded the company's profit margin.

Zinc futures on the Shanghai Futures Exchange have tumbled, with the price of the most-active contract down 46% over the past 12 months.

Masteel reduced ex work price of H sections for August

Masteel announced that its ex work price of H-sections for August on July 21st and the price decreased.

Price of 200x200H reduced CNY 200 per ton to CNY 4820 and CNY 5639 per tonne including taxes. Price of 400x400H reduced CNY 50 to CNY 5570 per tonne and CNY 6517 including taxes.

One merchant in Shanghai said the sales since July dropped due to the high temperature impacts the project construction and the tight capital pressure of downstream enterprises.

Market price of small sections in Shanghai dropped recently, price of 200x200H dropped by CNY 50 per tonne than July 9th and the mainstream price was CNY 5550 per tonne and some offered the price of CNY 5550 per tonne. Market price was still higher than ex work price even steel mills reduced price.

Therefore, merchants are not willing to sell goods in low price. Some merchants believe price this week will drop again and they are eager to collect capitals during the order time.

Square billet market in Tangshan down slightly

It is reported that Square billet market price dropped slightly on July 23rd in Tangshan. The mainstream quotation at the current market has dropped by CNY 30 per tonne. Price of carbon 150 billets in Tangshan at present was CNY 5350 per tonne, CNY 5400 per tonne for triangle 165 billets and CNY 5500 per tonne for low alloy billet.

As per report, billet delivery of most steel mills in Tangshan was not good due to the environment protection and transportation restriction during Olympic Games. The billet demand also slowed down than earlier. Steel mills faced great pressure to reduce price gaining more orders. Square billet market in Tangshan predicted to have a slight adjustment later.

Russia plans to raise export tax on scrap

Reuters cited Russia high level government source as saying that Russia plans to raise export tariffs on steel scrap to EUR 120 to EUR 130 per tonne to prevent a potential deficit as steel makers build more plants to run on scrap. The source told reporters that "We forecast a deficit as a result of the implementation of all the projects. A tariff that is too low allows for distortion of competition.”

Russia currently applies a tax of 15% or minimum EUR 15 per tonne on exports of scrap used to make steel.

He added that “Russia did not yet have a scrap deficit but Russia, as a net steel scrap exporter, is consuming more domestically as the booming construction sector demands more steel. Processors supply major steel makers including Severstal and Magnitogorsk Iron and Steel Works.”

The government source said steel scrap demand in Russia would increase by 10% next year and forecast it would continue to grow at similar rates in the few years that follow. He said he did not foresee a significant reduction in steel scrap exports as a result of the higher tariff, which is currently being reviewed within government.

UralSib Financial Corp metals analyst Mr Dmitry Smolin said of the plans to raise export tariffs "In the long term, it creates favorable conditions for constructing mini mills.”

Mr Smolin estimated Russia collected around 30 million tonnes of scrap a year of which around 6 million tonnes are exported. He said that "The wave of new mini-mills and growing demand for construction materials will lead to additional consumption of scrap. This situation could potentially turn Russia into a net importer of scrap."

TMK Oilfield Services Division increases its production capacities

In early July, 2008 Oilfield Services Division launched tubing production line at its facilities in the city of Buzuluk in Russia, enhancing its ability to provide the customers with a set of services both for maintenance and repair and production of high-tech tubular goods.

The existing processing line used for tubing repair was upgraded to be able to produce new tubing. The line annual capacity amounts to 11,000 tonnes of pipes.

Mr Sergey Agaphonov CEO of TMK Oilfield Services said that “An increase of TMK’s production capacity in the oil and gas fields is in line with the Company’s strategic goal to provide a full range of high-tech products and services for oil and gas industry.”

OOO “TMK Oil Field Services” was set up in 2008 to manage TMK’s assets located in key Russia’s oil and gas regions.

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

NLMK complete its buyout of the minority shareholding

Novolipetsk Steel announced that it has completed its buyout of the minority shareholdings in OJSC Dolomit, OJSC Stagdok and OJSC Altai-koks. As a result, NLMK now owns 100% of the charter capital of these companies.

As previously announced on May 23rd 2008 in accordance with the Russian legislation, NLMK posted a mandatory offer to the minority shareholders of Dolomit, Stagdok and Altai-koks to purchase their ordinary shares.

As part of the buyout, NLMK acquired

1. 2.0205% of Dolomit charter capital, obtaining 100% control over the enterprise. The price of the acquired shares amounted RUB 913 .26 per share. The total amount paid to the shareholders reached RUB 22,834,239.78.

2. 2.5629% of Stagdok charter capital, obtaining 100% control over the enterprise. The price of the acquired shares amounted RUB 3,981.56 per share. The total amount paid to the shareholders reached RUB 28,137,684.52.

3. 1.5646% of Altai-koks charter capital, obtaining 100% control over the enterprise. The price of the acquired shares amounted RUB 15.14 per share. The total amount paid to the shareholders reached RUB 234,075,709.58.

According to the release, the buyout of Dolomit, Stagdok and Altai-koks shares will enable NLMK to more efficiently manage these subsidiaries.

MMK expects H1 net above USD 1 billion

Interfax citing Mr Viktor Rashnikov chairman of MMK as saying that Magnitogorsk Iron and Steel Works expects H1 2008 net profit to exceed USD 1 billion.

Mr Rashnikov also said that H1 of 2008 revenues could increase to USD 5.3 billion and EBITDA to USD 1.4 billion.

Its first half 2007 revenues were USD 4 billion and EBITDA USD 1.2 billion.

MMK, which operates Russia's largest single steel plant in the city of Magnitogorsk, increased crude steel production by 8.3%YoY in the first six months of 2008 to 7.02 million tonnes.

Mechel seals domestic quarterly coking coal supply contracts

Mechel OAO announces that it has concluded long term contracts to supply coking coal to a number of Russian customers and expects to secure additional contracts in the future.

The released said that Mechel has concluded agreements on supplying coking coal to major Russian steel plants for a fixed price for the third quarter of this year.

It said that “Signing such agreements increases the transparency and predictability of the market and has benefits for both coking coal producers and consumers.”

Currently, Mechel is considering the possibility of concluding even longer term contracts on the domestic market.

Severstal short listed for supplying pipe to Nord Stream

Severstal announced that its subsidiary Izhora Pipe Mill and CherMK’s LPTs-3 plant have received official notice of being included in the short list of potential suppliers of pipe products for the Nord Stream Project having received certification for compliance with the DNV-OS-F101 standard.

In May 2008, Izhora Pipe Mill and LPTs-3 both underwent the certification needed for participation in the tender for construction of the Nord Stream’s second phase. Tests involved checking of start-to-finish pipe production technology, including strip production. The most complex pipe schedule, with a maximum wall thickness of 34.6 mm, pipe diameter 48 was certified compliant. Such pipes will be laid in the Russian section of the gas pipeline, stretching from Vyborg, Russia. As the testing of these pipes proved to be successful, certification also extends to pipes with a smaller wall thickness also envisaged by the Project.

In the course of testing, both participants produced a batch of 20 semi finished plates and pipes to be certified. LPTs-3 and ITZ demonstrated consistency of technology and reproducibility of properties in the production of each plate and accordingly each pipe.

Mr Anatoly Kruchinin CEO of Severstal Russian Steel division and CherMK said “This is a result of the well-balanced operations at our plate rolling and pipe production facilities. Severstal, unlike many of its peers, produces large diameter pipe using its own rolled metal products and is fully provided with all necessary feedstock. Unified quality management standards, a short order processing route, localization of plate rolling and pipe production on a single site all minimize production risks, enable us to develop new technologies faster than our competitors and make us a more reliable and flexible supplier.”

Mr Oleg Urnev CEO of Izhora Pipe Mill said “This certification opens up bright prospects. Izhora products have been found to be in compliance with the stringent requirements imposed on pipes to be laid in extreme Baltic seabed environments. Moreover, Izhora is located in close proximity to the gas pipeline area the Gulf of Finland water area which offers additional advantages, reducing transportation costs for our potential client.”

Rautaruukki to open a new sales office in Kazakhstan

Rautaruukki has opened a new sales office in Kazakhstan and now has operations in 25 countries. Expanding the sales network into Kazakhstan will enable Ruukki to improve the quality of its customer service and shorten