JSW Steel to acquire United Coal by August

BS reported that JSW steel is likely to complete the deal for acquisition of US based United Coal within August 2008. The market has widely speculated that the deal is expected to cost anywhere between USD 1.5 billion USD 2 billion.

Mr Sajjan Jindal chairman of JSW steel said that "We are in discussion and the bidding process is on. We hope to sort of finalizing the deal within August 2008."

Mr Jindal said that "We will be quite aggressive to acquire United Coal. Apart from United Coal, we are looking at Australia for acquiring coal mines."

A privately held firm United Coal is a metallurgical coal company that owns mines in Virginia and Kentucky having a total reserves of 165 million tonnes.

IJM Corp starts welded wire mesh plant in Hyderabad

Bernama reported that IJM Corporation commissioned a MYR 16 million (INR 21 crore) welded wire mesh manufacturing facility in Hyderabad. The project undertaken through IJM's subsidiary IJM Steel Products Private Limited is located in Isnapur near Hyderabad capital of Andhra Pradesh.

The facility would operate with 1 production line initially with a production capacity of supplying 12,000 tonnes of welded wire mesh per annum.

Mr Datuk Krishnan Tan CEO & MD of IJM Corporation said that "Welded wire mesh for concrete reinforcement is new to the Indian construction industry. The manufactured product comes to the site ready for immediate onsite installation, contributing to higher productivity and better quality control. We are confident that MMW is set to revolutionize the infrastructure and the real estate industry in India which builds close to 1.5 million housing units a year."

Mr Tan said that the company planned to double its production capacity within the next 3 years at the Isnapur plant and has plans to set up a similar facility in Mumbai.

He further added that "We have signed up IJM Infrastructure Limited as our first customer. We wanted to first use our welded wire mesh product at our ongoing housing projects a 120 acre project in Vijayawada and a 42 acre residential project in Nagpur to create confidence among the Indian customers. We expect the Hyderabad facility to garner revenues of INR 35 crore in 2008."

Siemens to make metro train coaches in India

BL reported that engineering and electrical goods major Siemens may soon set up a facility to manufacture coaches for trains and metros in India, thereby launching a completely new business segment in the country.

According to report, the Indian arm of the German company has nearly completed the acquisition of land at Aurangabad in Maharashtra to put up a Greenfield plant for the manufacture of engineering goods including rolling stock. The report said that the Siemens intends to begin with the manufacture of metro coaches, it adding that work on developing the land which is adjoining the Skoda plant in the Shendra industrial estate in Aurangabad.

The initial financial outlay of the new factory part of what is pegged as a mega project is understood to be around INR 500 crore. It is not clear whether this investment will be made by Siemens India or as foreign direct investment from the German parent Siemens AG.

Ms Kavita Ghatge VP corporate communications of Siemens Limited said that “We are intensifying our presence in India. We already have a significant presence in Aurangabad with 2 manufacturing facilities, 1 for high voltage switchgear and the other for low voltage switchgear. We are looking at Aurangabad as a location for supporting our expansion and growth plans in the Industry sector, which includes transportation.”

The Siemens Transportation Systems business unit has been building trains for nearly 150 years and is a leading manufacturer of complete metro systems. In India the division supplies equipment to the railway coach factories at Chennai & Kapurthala and also offers solutions for the railway sector in the field of automation, traction equipment and electrification.

L&T Q1 net up by 33% YoY

India's Larsen & Toubro Ltd posted a 33% rise in quarterly net profit, beating forecasts, helped by strong demand from the engineering and construction sector.

L&T which has operations ranging from manufacturing to software services, reported a net profit of INR 5.02 billion in the fiscal first quarter ended June 2008 as compared with INR 3.77 billion rupees reported a year ago.

L&T in a statement said that it has been riding a building boom as the country revamps crumbling infrastructure such as airports, roads, ports and power plants.

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NTPC plans 2,000 MW Nuclear power units

BS reported that joining the growing list of companies trying to tap the opportunity that is bound to arise out of a possible Indo US nuclear deal NTPC has drawn up plans to enter nuclear power generation by setting up a 2,000 MW project.

In a report submitted to the ministry of power NTPC said that it would operationalize the project within the next decade in 2 phases of 1,000 MW each.

The official of NTPC said that “Power generation from nuclear plants is a part of our corporate plan, which was earlier called National Thermal Power Corporation with a mandate to run coal or gas based power plants.”

According to report, NTPC has initiated discussions with the Atomic Energy Commission for identifying nuclear fuel availability. Thereafter, NTPC would locate the nuclear plant said the same official on condition of anonymity.

Update on JSPL power projects

It is reported that Mr Jairam Ramesh minister of State of Commerce and Power after visiting the 1000 MW OP Jindal Super Thermal Power Plant at Tamnar near Raigarh in Chattisgarh being put up by Jindal Power Limited said that India’s first mega power project in the private sector is all set to go fully commercial by August 15th 2008.The time taken from the commercial operations of the four power units from zero date is 36 months which is a record in India. T


The INR 4300 crore power complex which has 4 units of 250 MW each supplied by BHEL is already feeding over 800 MW into the grid. Jindal Power Limited is now embarking on a massive expansion program involving the addition of another 2500 MW at Tamnar itself and an additional 2500 MW in Dumka in Jharkhand.

Mr Navin Jindal vice CMD of JSPL has already prepared a vision document for the company that envisages a capacity creation of 35,000 MW in another 20 to 5 years time. He said that “JPL was very keen on expanding into hydel power and nuclear power as well. JPL is prepared to enter into JV with state governments or other PSUs to expand its hydel portfolio.”

Sterlite Industries wins support to buy Asarco

BS reported that Sterlite Industries has secured the support of the US state legislators, local officials of Arizona State and workers for its proposed acquisition of copper maker Asarco. The legislators and local officials rejected estranged parent Grupo Mexico as future owner and suggested Vedanta Resources the promoter company of Sterlite in its place.

Asarco is based out of the south western state of Arizona and had filed for bankruptcy protection under Chapter 11th wherein the company is seeking to reorganize and nurse itself to better financial health.

Opponents including members of United Steelworkers a trade union in the US have lined up to bash Grupo and picketed Asarco’s mines and other facilities around Southern Arizona. The workers of Asarco’s mining operations plan to walk off the job if the company is handed back to a Mexico City conglomerate.

The president of American Federation of Labor and Congress of Industrial Organizations Mr John Sweeney issued a statement recently condemning Grupo Mexico and endorsing Sterlite’s bid for Asarco. Bucking the anti Vedanta sentiments of environmental NGOs and members of Congress, Mr John Sweeney urged the US Justice Department and the Attorneys General from 22 states to support the bid by Sterlite for Asarco.

The reported said that “When Asarco was controlled by Grupo from 1999 to 2005, the company unilaterally cut health care benefits for 100 of retirees and disability benefits for other employees. Grupo Mexico has stripped Asarco of its most valuable assets.”

On May 31st, Sterlite emerged as the lead bidder with USD 2.6 billion offer to buy Asarco’s operating assets. But Grupo which has vowed to fight the Sterlite’s Asarco purchase had proposed a USD 4.1 billion revival package. Under the proposal, the company would put up by USD 2.7 billion, use USD 1 billion which Asarco has on hand and then put in further USD 440 million if needed.

Karnataka to set up maritime board

BL reported that the maritime activity along the 300 kilometer long Karnataka coast is all set to get a boost, if the announcement of the Karnataka Government on the establishment of a maritime board is any indication. Mr BS Yeddyurappa CM of Karnataka said that the State will establish Karnataka Maritime Board.

Mr JP Menezes president of Kanara Chamber of Commerce and Industry and a marine surveyor said that “Establishment and implementation of the board will bring Karnataka on par with other maritime States. He added that this is the best thing that could have happened to the Karnataka maritime constituency.”

Mr P Tamilvanan chairman of the New Mangalore Port Trust said that establishment of such a board will help boost the maritime activity in the State.

Mr Shekar Pujari president of the Association of New Mangalore Port Stevedores said that such a board will create more job opportunities. Minor ports in the State will get a boost and the trade will see further improvement. Mr K Narasimha Prabhu president of KCCI said that the establishment of the Karnataka Maritime Board is 1 of the oldest demands of the KCCI. The proposal in the State Budget is a welcome move in this matter.

It is to be noted that the Karnataka maritime constituency consists of 1 major port and 10 minor ports. New Mangalore Port is the only major port of the State. The 300 kilometer long Karnataka coast line consists of minor ports such as Karwar, Belekeri, Tadri, Honnavar, Bhatkal, Kundapur, Hangarkatta, Malpe, Padubidri and Old Mangalore.

Railways supplies passenger coaches to Tanzania

Golden Rock Railway Workshop has won another feather in its cap when 23 refurbished MG passenger coaches were flagged off to Tanzania. The coaches along with 2 refurbished meter gauge diesel locomotives were flagged off by Mr Raj Kamal Rao member of Railway Board at a function held at the workshop premises.

Refurbished at a cost over INR 5 crore the coaches have been provided with air brake system for better braking power, fire retardant upholstery, enhanced buffer couplers, improved PVC flooring and UIC vestibules among other passenger friendly features.

Mr Rao said that the workmanship of the technical personnel of the workshop and underscored the need to adopt new technologies in the backdrop of technological changes. He added that substantial amount had been sanctioned to the workshop for its modernization plan.

Mr V Carmelus chief mechanical engineer of Southern Railway said that the coaches and locomotives would exemplify the quality of Indian Railways.

Mr S Rangarajan chief Workshop manager of Golden Rock Railway Workshop said that the workshop had made a mark on the export front, he adding that efforts were on to ramp up the capacity of the workshop to manufacture 1,000 wagons a year.

OTPCL plans thermal power plant in Angul

Project monitor reported that Orissa Thermal Power Corporation Limited a 50:50 JV between state owned entities Orissa Hydro Power Corporation Limited and Orissa Mining Corporation has initiated the process to set up a 2,000 MW thermal power plant in Angul district.

According to GR Panda manager who is part of the project implementation team, OTPCL would require about 2,000 acres out of which only 300 acres is private land. He said that "We will not have much problem in land acquisition since major portion of the land belongs to the state government. The land acquisition process would be over within 6 months."

As per the report, OTPCL has recently identified 1 site near Rengali hydroelectric power station in Angul district. Water linkage for the project is readily available near the proposed site. Meanwhile, the company has received coal allocation from the Centre at 2 coal mines namely Baitarni West & Mandakini B. According to the company, the estimated coal reserve is 500 million tonnes.

OTPCL has recently invited bids for infrastructure development at the project site. The selected developer would be required to prepare detailed feasibility report, finalize site for the project, preparation and approval of ToR, EIA & EMP obtaining approval for land acquisition and carrying out R&R activities and other statutory clearances. The developer will also require to prepare infrastructure and water management plan, basic engineering, manpower planning, logistics for coal handling and ash management plan, among other responsibilities.

According to the OTPCL official, bids will be invited for selecting civil and EPC contractors only after completing the above process which is expected to end within 12 months. He said that "We are already in talks with BHEL

Mr SS Dalpati chief GM of OTPCL’s part of the new thermal power project team said Projectswire over phone that the power from the new 2,000 MW project would be diverted to state owned Gridco and that there was no tie up with other parties or states for power purchase.

Great Eastern to lay gas pipe in Asansol

Bloomberg reported that Great Eastern Energy Corp, a producer of coal bed methane gas in India, reached an agreement with Steel Authority of India Limited for the right to continue laying a gas pipeline to Asansol in India.

Great Eastern Energy Corp said that “2 more right of way agreements with the government are outstanding and are expected to be completed shortly.''

Meet on welding and painting technology

It is reported that the Confederation of Indian Industry organized a conference on welding and painting technology that threw light on the emerging trends in the 2 fields.

During the conference speakers underlined the fact that the 2 fields were of great importance to the industrialized Karur town that has a huge population of bus body building activity.

The Convener, CII Automotive Panel Mr P Thangaraju outlined the theme of the meet. Mr A Raja senior deputy GM of Welding Research Institute delivered the special address detailing the salient features of modern day welding and the recent advances made in the field. It said those technical sessions which were organized as part of the meet touched on aspects such as welding productivity, cost effective welding and cost reduction.

PTC India Q1 profit up by 58.67% YoY

PTC India announced a phenomenal increase in its standalone net profit for the Q1 ended June 2008. During the quarter, the profit of the company up by 58.67% YoY to INR 188.50 million from INR 118.80 million in the same quarter last year.

PTC India’s net sales for the quarter increase marginally 3.85% to INR 12,030.99 million while total income for the quarter increased marginally 4.49% to INR 12,206.75 million when compared with the prior year period.

(In INR million)

PTC India said that during the quarter, interest cost increased 2.58 times to INR 8.51 million while depreciation cost increased 2.11 times to INR 15.18 million over previous year period. Shares of the company closed at INR 76.2. The total volume of shares traded was 613,980 at the BSE.

BEL mulls INR 1,500 crore JV in solar energy space

BS reported that Bharat Electronics is planning a major investment in the solar energy space in a tie up with another PSU of Bharat Heavy Electricals. This will be the first major facility for manufacturing a raw material for solar panels by BEL which is a leading manufacturer of solar panels in the country.

BEL is in the process of setting up a Greenfield facility to produce 2,500 tonnes of polycrystalline silicon the main raw material for making solar panels at an investment of INR 1,500 crore. This translates into 250 MW of power.

Mr C Nageshwara Rao GM of BEL said that "We have held preliminary discussions with BHEL for setting up by 50:50 JV company to execute this project. We expect this project to take final shape in the next few months and the plant needs around 2 or 3 years to start production." The details of the JV are currently being finalized.

He said that BEL is also in the process of identifying a suitable location for the plant. He added that "We need to set up this plant at a place where there is non stop supply of power at lower prices as this is a power intensive sector."

He said that the proposed polysilicon material manufacturing facility will be an integrated unit that will produce polysilicon ingots, wafers, solar cells, modules and solar panel systems. The company, besides exports will mainly sell the solar systems to government agencies that are engaged in the popularization of solar energy. Currently, BEL is exporting solar cells to countries like Germany, France and Italy. While there is a demand for 100,000 solar cells per month BEL is exporting 50,000 solar cells.

Currently, BEL has an installed capacity for 5 MW solar cells per annum at its Bangalore complex where the modules are manufactured. It is also in the process of expanding this capacity to 30 MW per annum at an investment of INR 100 crore. BEL is currently importing solar grade polysilicon wafers from Germany and Japan at an estimated USD 6.5 per wafer.

Unitek Borri plans production unit in Kerala

BL reported that Unitek Borri a JV between Kerala based Unitek Power Solutions and Borri Industrial Power Solutions of Italy is setting up a manufacturing unit in the state at an investment of INR 30 crore.

Mr John Zachariah MD of Unitek Power Solutions said that the facility will be set up in Pazhanganad near Kochi for manufacturing entire range of power electronic equipment. Borri is looking India as a hub to supply products as the cost of production is soaring in the European market.”

He added that Unitek and Borri came to an understanding that all products manufactured in Italy for the Indian market will be known as Unitek Borri. He said that both the companies have signed an agreement in June 2007 to market Borri products in the Indian market. Within a short span, the products established themselves in the Indian peninsula.

TATA Projects forms JV with EIL

BL reported TATA Projects and Engineers India have formed a JV to undertake projects in the hydrocarbon sector.

As per the report, MoU for forming the proposed company was signed in July 2007, but the venture TATA Engineers India was incorporated in mid July 2008. The JV will have a start up equity capital of INR 10 crore equally shared by the 2 partners. The headquarters will be in Noida near New Delhi.

In the JV, Engineers India will bring to the table its expertise in refinery engineering and procurement while TATA Projects will chip in with its capabilities in project management. The proposed venture will initially pursue opportunities in the refinery sector.

GSPC rejects HPCL proposal for stake in Mundra LNG terminal

It is reported that Gujarat State Petroleum Corporation has rejected an informal EoI from Hindustan Petroleum Corporation for a 50% stake in the proposed 5 million tonnes per annum to 7.5 million tonnes per annum LNG terminal at Mundra.

Gujarat State Petroleum Corporation had previously invited Essar to pick the residual 25% stake in the project, but later on Essar had informally expressed its disinterest in entering the venture at the existing location. This was followed by a proposal from HPCL to enter the JV.

As per the report, GSPC holds 50% controlling stake in the project and the remaining 25% participatory interest will be held by Adani Group while a third partner is yet to be identified by the JV. In case of non availability of a third partner, the JV may offer the residual 25% stake to public or financial institutions at a later date.

In Early July 2008, GSPC launched a detailed feasibility study of the project and the proposed report is expected to be ready by 30th September 2008. Negotiations are also in an advanced stage with a few companies for LNG supplies. The LNG terminal is slated to be commissioned in 2012.

JK Cement posts 31.18% fall in profit for June 2008 qtr

IRIS reported that JK Cement disclosed a steep drop in its standalone net profit for the quarter ended June 2008. As per report during the quarter the profit of the company declined by 31.18% YoY to INR 361.33 million from INR 525 million in the same quarter in 2007.

JK Cement’s net sales for the quarter increased 5.25% YoY to INR 3,435.24 million, while total income for the quarter increased marginally 4.99% YoY to INR 3,443.76 million when compared with the prior year period.

(In INR million)

JK Cement said that during the quarter, the interest cost increased 11.56% YoY to INR 101.52 million while depreciation cost increased 30.87% YoY to INR 119.09 million over previous year period.

Hindalco Q1 net up 16.4%

Reuters reported that India's top aluminum maker Hindalco Industries Ltd beat forecasts with an unexpected 16.4% rise in quarterly net profit.

Hindalco in a statement said that it reported a net profit of INR 6.97 billion (USD 165 million) in its fiscal first quarter ended June 30th 2008 as compared with INR 5.99 billion a year earlier.

Indian crude steel production in Q1 up by 1.8% YoY

In million tonnes
Main Producers

In million tonnes

Secondary producers

In million tonnes

SAIL

In million tonnes

(Source – JPC)

Major fire breaks out at Yawata Works of Nippon Steel

It is reported that a fire broke out Nippon Steel Corp’s plant at its Yawata Works at Kitakyushu in southwest Japan. There are no reports of injuries.

A spokesman said the fire, which was discovered at 6:37 AM apparently began at a conveyer belt before spreading to the building.

AS per reports, TV footage showed flames shooting out from smokestacks and other parts of the plant and an aerial shot showed the entire plant shrouded in thick black smoke. TV announcers said fire trucks were at the site fighting the blaze.

Nippon Steel said it is unclear how much or what kind of impact the fire would have on operations at its Yawata Works, one of the firm's main steelmaking plants with crude steel production of 4.01 million tonnes in 2007. Yawata Works, which makes a range of products such as bar steel, steel pipes and steel sheets, has about 2,950 employees.

Malaysian builders call for ban on steel exports

It is reported that many property developers and contractors have urged Malaysian government to impose a temporary ban on the exports of steel and allow it to be imported to stabilize rising prices and meet growing local demand.

Although there is currently no serious shortage of steel in Malaysia, industry players fear that this situation might not hold on for too long as there are currently many projects being undertaken by the public and private sectors. They also claimed that some steel traders and suppliers were manipulating steel prices.

Mr Ng Kee Leen president of Master Builders Association of Malaysia said that it was important that the government allowed all steel bars that met the Malaysian standard MS146 or its equivalent the BS4449 standard to be imported tax free. As it is, he said not a single steel bar had been officially imported since the government lifted the ceiling price of steel about two months ago.

Mr Leen said that “The government must fully liberalize and clarify the process and procedure in the importation of steel.” He added that international steel traders have lost confidence in Malaysia as they found the process and procedure of importing steel vexing.

He said if the government did not take action now, more than 140 related industries including the tin mining, timber, electrical, air conditioning and joinery industries might collapse.

Malaysia consumes some 2 million tonnes of steel per year or about 150,000 tonnes a month. Steel prices have soared from about MYR 3,000 per tonne two to three months ago to MYR 4,200 per tonne depending on the term of payment.

Japanese ferrous scrap price in downward trends

JMB reported that ferrous scrap price dropped around Osaka for 2 weeks in a row when local steel makers get more scrap arrivals. Local electric furnace steel makers reduced the purchase price by JPY 500 to JPY 1,000 to JPY 71,000 to JPY 72,000 per tonne for H2 grade last week, which was JPY 1,250 or 2% lower than recent peak.

ABB eyeing for big automation acquisitions - Report

Reuters reported that Swiss engineering group ABB sees room for large acquisitions in the automation sector.

Mr Michel Demare interim CEO of ABB said that it had been wise to leave its USD 6 billion cash pile untouched in recent months, when stock prices slid and made previously highly valued targets more affordable. He added that "Big acquisitions will be more related to automation than energy. In automation, the oil, gas, metals and minerals sectors are seeing very strong growth. ABB's good fortune is that we are much more oriented to those industries than to construction and consumption."

Mr Demare said that ABB has a number of small and medium sized acquisitions in the pipeline and that larger transactions were also possible. He added that "Our strategy to put on hold those larger deals is paying off. Valuations are coming down and some of the larger transactions may become attractive from a shareholder value point of view as the prices have come down."

It may be noted that ABB, which sells equipment to utilities and to oil and gas companies, has been shielded from the worst of the global credit crisis because demand for power infrastructure has been very resilient in emerging markets like China and India.

MAN blames power supply shortages for steel sector decline

It is reported that the Manufacturers Association of Nigeria has blamed the Power Holding Company of Nigeria for the slump in steel production in the country.

Mr Felix Okojie chairman of Steelman Nigeria Limited said that "The installed capacity of the steel industry in Nigeria is 3 million tonnes of iron rods. The national demand is about 650,000 tonnes. This means the Nigerian steel industry can cater for the West African sub region. Unfortunately, Power Holding Company of Nigeria has hindered such development because most of the surviving steel companies are producing at less than 30% of installed capacities."

He implored the Power Holding Company of Nigeria to give regular power supply to the industry, noting that cement manufacturing industries already enjoyed 24 hours power supply from Power Holding Company of Nigeria. He added that "The steel and cement industries, complement each other."

Mr Jide Mike director general of Manufacturers Association of Nigeria said that the manufacturing sector is the engine of growth of any economy. Manufacturers Association of Nigeria had plans to establish independent power plants so that its members could have adequate and cost effective power supply. He added that "It has been registered and a board is already in place. It will take about three years to build the proposed plant."

US manufacturing exports see surplus with FTA countries

Mr Carlos M Gutierrez US secretary of commerce announced new US commerce department data showing that the United States is running a trade surplus in manufactured exports with our 14 free trade agreement partners.

He said that "In the January to May 2008 period, the trade balance in manufactured goods rose to a USD 2.7 billion surplus with our FTA partners from a USD 12.3 billion deficit during the same period last year. The US manufactured goods trade balance improved 122% with our FTA partners, but only 6% with non FTA partners in the first five months of 2008."

Mr Gutierrez said that “These figures show that our FTAs are succeeding and that Americans benefit from open markets. Our trade balance with FTA partners has swung from a deficit to a surplus proving that open markets are a key ingredient to the competitiveness of U.S. manufacturing and the health of the US economy. Last year, manufacturing accounted for 62% of America’s record USD 1.6 trillion exports in goods and services.”

This improvement in the trade balance is due to the increasing competitiveness of US manufactured goods. Since 2002, FTAs have helped US manufactured exports grow steadily and at a faster rate than imports 63% as compared to only 42%, respectively through May 2008.

Toyota may raise prices due to steel cost pressures

Jiji Press reported that Toyota Motor Corporation is considering raising prices in Japan of its Prius gasoline electric hybrid car and luxury models.

As per report, Toyota Motor is expected to raise prices by 1% to 3% on average due to soaring costs of raw materials such as steel. It is likely to make a final decision as early as August and start introducing new pricing by the end of 2008.

It will be the first time for Toyota to raise its vehicle prices without model changes since 1992, when the company increased prices for some commercial vehicles. Toyota seems to be finding it easy to raise the prices of the Prius and luxury models because their sales are apparently less vulnerable to a price increase than other lineups including smaller cars.

The Prius is in short supply because of its strong demand. Higher materials prices take a heavier toll on the Prius than on other models because the hybrid car uses a lot of rare metals, of which prices are rising steeply.

Nippon Steel develops technology to extract hydrogen from garbage

Nikkei business daily reported that Nippon Steel Corporation has developed a technology to produce hydrogen from garbage, which could help municipalities lower home and office waste disposal costs by 20%.

As per report, Nippon Steel researched and tested the technology together with Kyoto University and the University of Kitayushu, with support from the ministry of economy, trade and industry.

The report added that Nippon Steel aims to sell the equipment to municipalities. The hydrogen gas extracted could be used for fuel cells to power cars and factories, while the ash residue could be used to create cement.

Konecranes UK secures supply order from Siemens

It is reported that Konecranes UK has been awarded two contracts worth GBP 1.77 million by Siemens AG to supply three identical cranes for two combined cycle gas turbine plants with an aggregate capacity of 860 MW on its Emile Huchet site in France and Rijnmond II, a turnkey combined cycle power plant located in the Netherlands.

The cranes for these contracts are rated at 370/20/2t SMD at 28 meters span. It will deliver and erect the two French destined cranes, while the one for Rijnmond II station is to be erected by a local service organization. The cranes are fully equipped with DynA Invertor variable speed control on all motions and are radio controlled.

All hoists feature ControlPro Monitors where the unit monitors the hoist operation, providing overload detection, brake wear monitoring and calculates the crane hoist duty allowing 100% planning of maintenance activities to suit the actual duty. The unit also stores and records the number of cycles, overload attempts and temperature trips.

They are also fitted with overload protection, thermistors, ultimate limits on each hoist as well as the normal operating limit switches, travel and traverse limit switches, along with girder and trolley platforms, festoon cables, floodlights, panel lighting and panel heating.

The French plant operator is Spanish energy giant Endesa, while the Dutch site is operated by InterGen.

Daewoo International Q2 net dips by 23% YoY

Daewoo International Company has posted net profit of KRW 29.9 billion in April to June 2008 quarter down by 23% YoY as against KRW 38.7 billion in April to June 2007 quarter due mainly to a weaker local currency. Sales soared by 39.8% YoY to KRW 2.75 trillion, while operating income surged by 62.8% YoY to KRW 46 billion.

A company official said that "Daewoo International suffered a setback in the second quarter bottom line as the won's slide against the US dollar increased the burden of its foreign-debt payments."

Vietnam kicks off construction of its largest alumina plant

VNA reported that Vietnam Coal & Minerals Industrial Group has kicked off the construction of Vietnam's largest alumina plant in Bao Lam district in the Central Highlands province of Lam Dong on July 26th 2008. The plant is part of the Lam Dong bauxite and aluminum complex which has a total investment of USD 687 million.

Total investment for the plant alone is put at USD 466 million. It is designed to turn out 600,000 tonnes of alumina a year in the 2007 to 2010 period. The plant's capacity is scheduled to be 1.2 to 1.8 million tonnes of alumina from 2015 onwards.

The plant is built by China Aluminum International Engineering Company, winner of the EPC contract which includes designing, equipment supply, construction and installation, training, operational instructions and hand over. Construction of the plant is due to be completed within 24 months.

The plant will use raw material like bauxite ore at the Tay Tan Rai Mine in Lam Dong province, which has an estimated reserves at 67 million tonnes.

First ScotRail and Transport Scotland to upgrade train fleet

Transport Scotland, the national transport agency for Scotland and First ScotRail, the rail operator, have placed an order with Siemens Mobility for the supply of 38 Desiro UK type electric multiple units.

The order is worth over EUR 300 million and also includes maintenance and spare parts service.

For Siemens’ Rolling Stock Business Unit, this is the first train order ever received from Scotland. And it will raise the number of units in the Desiro fleet in Great Britain to a total of 354.

The 38 new trains are due to enter passenger service in December 2010 and initially operate between the cities of Ayr and Glasgow. They will be built at the Siemens plant at Krefeld-Uerdingen in Germany.

Cognex Corp secures multi million sale order from CSC

Cognex Corporation recently announced that it has received a multi million dollar sale order for 7 Cognex SmartView surface inspection systems from Taiwan based integrated steel manufacturer China Steel Corporation, representing the largest single order that Cognex's Surface Inspection Systems Division has ever received.

Cognex's surface inspection systems use proprietary, high performance machine vision hardware and software to automatically detect, visualize and classify defects on a wide variety of high value added materials, such as metals, paper and plastics.

The SmartView systems would be used to perform automated quality inspection at China Steel's manufacturing plant at Kaohsiung in Taiwan. China Steel plans to use the Cognex systems to inspect steel at multiple stages of the manufacturing process, such as during pickling, galvanizing, annealing, and tension leveling, to ensure that the product meets rigorous quality standards.

Cognex is the world's leader in the machine vision industry, having shipped more than 400,000 machine vision systems, representing over USD 2 billion in cumulative revenue, since the company's founding in 1981. In addition to its corporate headquarters in Natick, Massachusetts, Cognex also has regional offices and distributors located throughout North America, Japan, Europe, Asia and MEA.

Japanese steel firms adjust pricing practices – Report

Nikkei reported that Kobe Steel Limited and other steelmaking and plant engineering companies are changing the way they charge clients to better reflect the rising cost of basic materials.

As per report, Kobe Steel is hammering out the details of a pricing framework with autoparts suppliers under which a surcharge would be applied every 3 to 6 months to reflect the cost of the ferrochrome used in such specialty products as springs and gears.

It added that Kobe previously had not revised prices based on the cost of any given material, but imported South African ferrochrome has more than doubled in the past year and is expected to rise further.

The report said that Sanyo Special Steel Company also plans to tie prices to the cost of scrap iron. Plant construction firms such as JGC Corporation and Toyo Engineering Corporation traditionally have set prices when they receive orders. But considering the sharp fluctuations in the cost of steel and fuel, they now aim to finalize the price on orders later, when key components and materials are procured.

MCCI plans to reopen 3 plants next year

Philippine Daily Inquirer reported that metal smelter MCCI Corporation is planning to ramp up ferronickel exports starting next year after it finishes upgrading its plants in the Visayas and Mindanao southern regions.

MCCI Corp said that it expected to export as much as PHP 25 billion worth of ferronickel in the 5 year period starting 2009. It added that it would restart the commercial operations of its integrated ferronickel smelter projects in Manticao town in the southern province of Misamis Oriental, Iligan City in nearby Lanao del Norte province and in Danao City in the central Philippines province of Cebu by 2009.

These plants were built at a cost of PHP 2 billion. In the first year of operations, their production volume is projected at 1.61 million pounds of ferronickel and export sales at PHP 718.93 million. Up to 11.44 million pounds worth PHP 5.37 billion would be exported in the second year and 13.71 million pounds worth PHP 6.38 billion annually in the third to fifth years.

It may be noted that the board of investments has upgraded the MCCI project to pioneer status after the department of science & technology endorsed it to be highly feasible as the Philippines’ first pyrometallurgical smelter plant for ferronickel.

The upgrade entitles MCCI to a 6 year income tax holiday plus 2 years for bonus and extension years. Its former non pioneer status allowed it a 4 year income tax holiday plus a conditional 2 year extension. Having pioneer status allows MCCI to import capital equipment duty free and exempt it from export taxes in the first 10 years of operations.

US flat rolled steel prices up, but analyst sees lower Q4 prices

According to market sources surveyed, the prices of both domestic made hot rolled and cold rolled coil gained in the US, as several of the lower end bargains of last week evaporated.

As a result, the Platts reference price of HRC increased to a midpoint of USD 1,075 per tonne ex works Indiana, while the CRC midpoint also gained USD 7.50 to a midpoint of USD 1,150 per tonne ex works.

Transaction prices on Monday were still considerably below most announced mill base prices for September deliveries, which range from USD 1,100 to UASD 1,160 per tonne ex works depending on the producer, tonnage and other parameters.

Mr Rodrigo Vazquez an analyst with Harbor Intelligence, expects sheet steel prices to soften in Q4. He explains that continued economic weakness in the US could further erode end user buying activity, slowing demand for steel.

He forecasts that for 2008, the US will show an overall steel demand decline of 3.6%. He asserts that the indicator is a proven guide for steel price turning points and its annual change rate has historically suggested a spot price trend one or two quarters forward.

Commercial construction may get worse – Bonnell

Platts reported that the US non residential, commercial construction market may get worse before it improves next year as it typically lags the hard hit residential construction market, particularly on the retail side.

Mr Duncan Crowdis president of Bonnell Aluminum said that "We do not see things improving down the line. I can't think of anything fundamental wise that would make any significant change in the next 5 months. But next year, the commercial market will improve and we are obviously building for that."

Mr Crowdis said that "We have been around long enough to know that markets go up and down. The commercial construction market is down now and it's difficult, but it will come back up again, maybe in late 2009. We anticipate the non residential business to slip off next year, but when it comes back, we will have a press rearing to go for that. We expect a soft landing in commercial."

Bonnell Aluminum expects commercial demand to be down by 5% to 6% both this year and next year. It has a relatively balanced position across many markets.

Metals X reopens Renison tin mine in Tasmania

It is reported that tin and nickel miner Metals X has reopened the Renison tin mine in Tasmania in response to the recovery in tin prices.

Mr Peter Cook MD of Metal X said that commercial production is currently underway. He added that “We firmly believe that, in the ensuing year, we will see tin prices consistently trade above USD 25,000 a tonne and with the continuing deficiency in supply demand balance, we could see tin approach levels well into the USD 30,000 by 2010.”

It may be noted that the 8,500 tonne Renison mine went on care and maintenance in October 2005 after tin fell below USD 6,000 a tonne on the London Metal Exchange. Prices have since boomed to levels around USD 22,300 a tonne.

Metal X plans to expand Renison in 2010 with a tailings re treatment project.

Tenaris secures solid presence in Colombia

Tenaris has established a solid presence in Colombia as drilling activity in the country has expanded rapidly in the past few years. Over the past year, Tenaris renewed a long term agreement with Ecopetrol and obtained a contract with Oleoductos de los Llanos Orientales SA to provide materials for a crude oil pipeline extending over 250 kilometers.

Tenaris has maintained close business ties with Ecopetrol since November 2005. The ongoing success of the relationship and the boost in Tenaris' product and service offer plus its local production capacity through the TuboCaribe mill in Cartagena prompted the state energy company to sign a new long term agreement in November 2007.

Mr Gustavo Martin commercial director of Tenaris said that “With this long term agreement we eliminate the need for Ecopetrol to rely on large inventories to support its intense drilling activity and begin handling the provision of materials in a just in time scheme as we do with Pemex in Mexico or with Repsol YPF in Argentina.”

In this context, Tenaris inaugurated a yard in El Centro, Santander department and is planning to expand its presence in other regions of the country to provide customers with better services.

For Ecopetrol's projects, Tenaris will be providing large diameter welded pipes from its mill in Pindamonhangaba and welded pipes from its welded mills in the United States to meet the needs of the customer's operations schedule.

For the Llanos Orientales SA, Tenaris will provide large diameter welded tubes manufactured at its mill in Brazil and coated in Cartagena. The pipeline, which will transport oil from fields in Rubiales and Pirirí in Meta County to the station distribution in the Casanare County, is estimated to begin its operations during the second half of 2009.

Japanese steel industry expects higher cost of raw materials

Mr Shoji Muneoka chairman of Japan Iron & Steel Federation said that Japanese steel industry's cost could increase by JPY 3.5 trillion for raw materials and energy for fiscal 2008 started April from fiscal 2007 due to higher settlement price for Australian iron ore.

Meanwhile, Mr Mimura Akio president of Nippon Steel said that the cost could increase by JPY 500 billion from original estimate in early May 2008 though the cost is unsettled for part of iron ore and coal along with market price for ferrous scrap and freight.

Ampco Pittsburgh Q2 net income up by 14% YoY

Ampco Pittsburgh Corporation has posted net income of USD 11.6 million in March to June 2008 quarter up by 14% YoY as against USD 10.2 million in March to June 2007 quarter. Revenue rose by 16% YoY to USD 102.7 million from USD 88.7 million.

Ampco Pittsburgh said that demand for its rolling mill rolls continues at unprecedented levels and the order backlog of its forged and casts rolls segment grew during the quarter. But export shipments were lower than planned because of the lack of availability of shipping containers, special equipment and cargo ships.

For the year to date, Ampco Pittsburgh made profit of USD 21.8 million up by 11.2% YoY as compared with profit of USD 19.6 million. Revenue rose to USD 200.5 million from USD 176.5 million.

PT Krakatkau refuses to cooperate with ArcelorMittal

Xinhua reported that Indonesian steel producer PT Krakatau Steel Inc has refused to cooperate with ArcelorMittal in building steel factories in West Java and East Java provinces.

Mr Fazwar Bujang director of Karakatau Steel said that previously, ArcelorMittal had seriously asked Krakatau Steel for cooperating on the steel production. He added that "They have many times asked for meeting to discus a JV."

It may be noted that Indonesia has decided to privatize Krakatkau Steel in an effort to boost the production capacity. The country planned to conduct an initial public offering of the shares of Krakatau Steel by up to 35% by the end of 2008.

Madar Holding to expand rebar processing capacity in Dubai

Arabianbusiness.com reported that Madar Holding has set its sights on expansion as it seeks to take advantage of the construction industry boom in the Gulf.

Madar Holding is already operating at 80% capacity at its processing plant in Dubai Investment Park only 14 months after opening. The factory, which prepares rebar steel for the construction industry, features a cut and bend facility enabling straight steel bars to be cut to length and bent to shape, as well as a facility to make wire mesh used for concrete reinforcement. The plant sources its reinforcement steel mainly from Turkey, Qatar, Saudi Arabia, China and Sudan.

Mr Sameh Hassan CEO of Madar said initially it would be concentrating on adding a second run at its Dubai plant to enable it to increase its current annual capacity of around 300,000 tonnes of steel.

Mr Hassan said Madar was for the most part unaffected by the downturn in the global economy thanks to the UAE’s thriving construction industry. He added that the boom is still here in the UAE. The concern is in the US market but it affects us indirectly from Turkish exports as the Turks can find better prices in the US for their steel. But the Chinese are coming into the market and the Ukraine is available so it is not a concern.

Mr Hassan added that “We are traders so we do look for the best product for our customers but there’s no scarcity of steel there’s a lot of availability. Our mission is to deliver the best service for customers and 80% of our orders are delivered within 24 hours.”

Madar Holding is a subsidiary of the Saudi Arabian owned Alfozan Group, since establishing in the region three years ago Madar has set up facilities in Qatar, Bahrain, Jordan, Syria and Sudan. It is also partners in a plant in Saudi Arabia which is planned to be up and running by the end of the year. In addition, it has three other hubs in the UAE for storage of steel.

Construction projects in GCC reach USD1.8 trillion

KUNA reported that the value of construction projects being executed in the Gulf region is well over USD 1.8 trillion,

According to a study revealed in the latest issue of local "Investors Magazine," demand on ready concrete structures, steel, and brick coating is to increase many times next year as the construction boom continues to start going down by 2010.

The study based on data by Duabi based Proleads research company said that the region is the most active in the world at present in terms of construction and development projects.

The report also indicated expected hike in demand on all material used in the construction and development sectors.

The magazine recalled some major projects being executed in the region including King Abdullah Economic City project in Saudi Arabia, at a cost of USD 54 billion, Abdelaziz bin Mousaed Economic City, also in Saudi, at cost of USD 53 billion, and Khalifah City in Abu Dhabi at a cost of USD 40 billion.

Kalpataru bags Nimr to Salalah pipeline contract

MEED reported that India's Kalpataru Power Transmission is low bidder at OMR 19.3 million (USD 50.7 million) for the contract to build the Oman Gas Company gas pipeline network in southern Oman.

AS per report, Kalpataru's bid is marginally lower than the next best offer of OMR 20.5 million from Gulf Petrochemical Services & Tradin and OMR 25 million from Larsen & Toubro. Five other local and international contractors participated in the bid.

The engineering, procurement and construction contract covers the construction of a 150 kilometer long pipeline between the Nimr field and the port city of Salalah.

Two other parts of the project are currently out to bid. Bids are due by August 11th 2008 for the EPC contract to build a new compressor station at the Nimr field. Bids are also due by July 27th 2008 for the contract to build the scheme's new control room.

The gas will be used as feedstock for the Salalah methanol plant and the Salalah independent power project.

OPEC sees record robust growth in MEA in 2009

Khaleej Times reported that the Middle East's economy is set for robust growth next year and strong economic activity is pushing oil demand up in the Middle East.

The report says that Middle East oil demand growth is forecast to top 0.29 million barrels per day in the Q3 of the year. Saudi Arabia's oil demand is set to grow by 0.18 million barrels per day in the Q2 to average 2.3 million barrels per day.

According to the report the demands for gasoline and diesel consumption and also for industrial fuel are on the rise and are expected to continue to show gains for the rest of the year. Transport, construction and petrochemical sectors will be the main drivers behind the strong Middle East oil demand next year.

The OPEC report expects world oil demand to grow by 0.9 million barrels per day in 2009, averaging 87.71 million barrels per day which is 0.1 million barrels per day lower than in the current year. The Organization for Economic Cooperation and Development and non OECD oil demand growth of 1.2 million barrels per day will account for all of next year's demand growth.

As per the report higher energy costs and taxes, energy conservation, efficiency, alternative fuel and other factors are the main reasons for the moderate growth of next year's oil demand. World oil demand growth has been on a strong move for the past 20 years averaging 1.2 million barrels per day however, new price structure and slower world economy are shifting oil demand toward weaker growth worldwide.

The report said that declining OECD oil demand will affect total world oil demand which will make the 2009 the lowest since 2002. Oil demand in OECD Europe is expected to be almost flat. The OECD Pacific will show a slight decline due to the slower oil demand in Japan.

Due to slowing US economy and relatively high retail prices, North America's oil demand is forecast to fall by 0.2 million barrels per day in 2009 to average 25 million barrels per day.

Dheeraj awards AED 80 million contract to Sharaf Foundations

Dheeraj East Coast LLC, one of the leading Dubai based real estate developers announced the award of AED 80 Million piling and shoring contract to Sharaf Foundations.

According to the report, the contract has been awarded for enabling works on the projects in Culture Village & Business Bay. The three projects in the Cultural Village include the purely residential property propositions Cascade Ville and Cascade Manor along with a mixed use development The Estate. In the Business Bay, the projects include two commercial projects, Corporate Bay and the DEC Business Towers. All the five projects were launched to a tremendous investor and buyer response.

Mr Dheeraj Wadhawan MD of Dheeraj East Coast said that “Our selection of Sharaf Foundations was preceded by a strict and assiduous round of scrutiny of the bids against international benchmarks of quality. We were looking for a company following international standards but with a solid work history and in terms of resources in Middle East itself due to the various operational requirements that are peculiar to this region. In Sharaf Foundations we have found a partner whose management has successfully completed more than 50 projects across Dubai, Abu Dhabi, Oman and Qatar, and bring to board specialized and widely experienced teams of engineers that combine accurate knowledge of the Middle East soil conditions along with a deftness for operating the latest technologies.”

Mr Gabriel Elahyani CEO of Sharaf Foundations commenting on the tie up with DEC said that “This project is another opportunity for us to showcase our extensive experience in ground works and our top of the line technologies, which have earned us the trust of our high profile clientele across the region. This contract gives us an opportunity to work with a dynamic and successful real estate developer like DEC and we will deliver the expected level of excellence and efficiency in the ground works of all the three projects.”

WB reports surge in FDI in GCC

According to the World Bank report, foreign direct investments during 2005 to 2007 were more than eight times the FDI flow into the GCC during the previous nine years. As per report capital flows into Gulf oil producers have rocketed to nearly USD 59 billion over the past three years. Of this, the major portion went to Saudi Arabia, which received around USD 43.1 billion. Foreign funds inflows into the UAE hit a high of USD 19.4 billion in the past three years.

Saudi Arabia and the UAE, which have the bulk of the investments, have been locked in reforms to diversify their oil reliant economies by opening up most of their sectors, privatizing public enterprises and expanding their industries. Their combined FDI of USD 62.5 billion surpassed the total FDI in the GCC and the whole Middle East and North Africa.

The report explained that some countries recorded negative growth in FDI inflow. It showed that Kuwait was the main victim as it recorded higher capital outflow during the past three years, standing at around USD 19.1 billion, which depressed the combined Gulf FDI.

Qatar, which recorded the highest economic growth rate in the region over the past few years because of surging LNG exports, ranked third with FDI totaling around USD 10.7 billion. Oman recorded relatively small FDI inflow, while Bahrain, one of the most liberal economies in the Middle East, attracted around USD 3.9 billion. But there was a capital outflow of nearly USD 100 million in 2005.

The World Bank attributed the sharp rise in FDI in the GCC and some other Arab countries to reforms and high economic growth due to the surge in oil prices. Higher growth was also recorded in some oil importing Arab nations because of reforms. It said that sustained economic growth in conjunction with economic diversification and ongoing reforms and privatizations attracted large FDI flows to Mena.

Dubai Aluminum achieves major production milestone

Mena Report reported that Dubai Aluminum Company Limited, the world’s seventh largest producer of high quality primary aluminum, achieved a major production milestone, having produced its ten millionth cumulative tonne of hot metal mid July this year.

According to the report the company began operating with three potlines offering an initial production capacity of 135,000 tonnes per year at its inception in 1979. Eight years later, in 1987, the first million cumulative tonne of molten aluminum was produced. The five million milestone was reached in 2001. The total production yield has now been doubled in less than seven years.

As per the report the accelerated production growth rate reflects a series of six expansion projects, the last of which was completed in February this year, which has seen the smelter complex grow to nine potlines with a combined production capacity of approximately 950,000 tonnes per year. At the same time, a commitment to advancing technologies has enabled DUBAL continually to produce more primary aluminum than the plant’s design capacity.

Mr Abdulla J M Kalban CEO of DUBAL commenting on this most recent milestone said that this outstanding achievement is in line with the vision of His Highness Mr Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, the UAE Minister for Finance & Industry and Chairman of DUBAL, to make our company one of the foremost players in the global aluminum industry. It is also a credit to his guidance and leadership.

Mr Kalban attributes the achievement to a combination of factors, the most important being progressive and visionary management and a motivated workforce that persistently goes the extra mile. He said that last year, DUBAL produced approximately 890,000 tonnes of molten aluminum in total, representing a 12.6% increase on the prior year alone. In 2009 we are targeting 970,000 tonnes.

He adds that the growth trend is indicative that DUBAL’s ambitious vision to become the world’s fifth largest producer of primary aluminum by 2015, by producing 2.5 million tonnes of the metal per year is both realistic and achievable. Especially as the company has already begun to invest laterally in the development of green field smelters in the Middle East or North Africa region as well as in the upstream aluminum industry, so as to secure DUBAL’s future alumina requirements.

Middle East is one of the fastest growing aluminum industry hubs in the world. According to expert industry analysts, the region produced 7% of the 38 million tonnes of the metal produced in 2007. Moreover, they maintain that the region has the potential to produce up to 10 million tonnes of the 60 million tonne annual consumption predicted for 2020.

Abu Dhabi Islamic Bank finances cement plant in Sudan

Abu Dhabi Islamic Bank one of the region’s leading Islamic banks announced the financial close of a bridge facility for the construction of a cement manufacturing unit in Sudan. A signing ceremony has been held in Beirut where senior representatives of Abu Dhabi Islamic Bank, Bank Audi and Al Takamul Cement finalized the agreement. Pharos Investment Banking acted as advisors to Al Takamul and ASEC.

The six month facility will be taken out by a USD 130 million medium term facility, the terms of which are currently being finalized and has been arranged on a club basis together with Bank Audi sal Audi Saradar Group of Lebanon.

The cement manufacturing unit is to launch by the last quarter of 2009 and will have a production capability of 1.5 million tonnes per annum.

Mr Tirad Mahmoud CEO of ADIB commented that ADIB has a proven track record in providing finance for basic industries. Our ability to structure sophisticated Sharia'a compliant financing deals with other banking partners, as well as our commitment to facilitating regional development, is highly attractive to corporate customers looking for a partner who can understand their vision and share in the associated risks.

Mr Abdalla El Ebiary MD of Citadel Capital based in Egypt said that ADIB has provided us with a top class service throughout our transaction discussions. It was important to us to have an Islamic finance partner involved to reflect our common values across our negotiations and resulting agreement.

Al Takamul is the cement manufacturing arm of ASEC Cement Holding Egypt, a growing cement production group in the Middle East and Africa created by Citadel Capital and a group of leading regional co investors.

Iran and Kazakhstan to boost coopration in power sector

Tehran Times reported that Iran’s Power Industry Syndicate and Kazakhstan's Electricity Grid Operating Company have signed a memorandum of understanding to boost cooperation. Mr Mohammad Parsa chairman of Iran’s Power Industry Syndicate and Mr Satkaliyev Almasadam Maidanovich president of KEGOC signed the MOU.

According to the signed MOU, the Iranian side is supposed to export technical engineering services and electrical equipments to Kazakhstan.

As per the report, Iran’s Power Industry Syndicate will also provide the ground for Kazakh companies to take part in Iran’s power section privatization and the Kazakh side is supposed to help Iranian companies to take part in Kazakhstan power industry’s bids.

The report added that co operation in power saving, reducing electricity dissipation over power transmission and distribution lines, study and investment in renewable energy resources such as wind and solar energies and technology exchange are among the MOU’s other stipulations. The two sides also expressed hope to have joint investments in one another’s power industry.

Emmsons International forms coal JV with ETA Star

Reuters reported that Emmsons International Limited has signed an agreement with Dubai's ETA Star International LLC to form a coal mining and marketing JV.

Emmsons in a statement said that the two partners will set up two companies in Dubai and a third in Indonesia.

UAE investors eye stake in Deutsche Bahn

The Peninsula reported that Mr Hartmut Mehdorn CEO and Mr Diethelm Sack CFO of Deutsche Bahn recently met institutional investors in Dubai and Abu Dhabi about taking stakes in the rail operator.

A spokesman for the German rail operator, which is pushing ahead with plans for a stock market listing later this year, declined to comment on the report, which will appear in today’s edition of Der Spiegel magazine.

The report quoted Bahn sources as saying the representatives from both banks and investment funds were very interested in obtaining stakes in the IPO, which is expected to be Germany’s biggest flotation since 2000.

Mr Mehdorn has previously said that Russian investors were interested in obtaining a stake. The government expects the IPO to raise between EUR 5 billion and EUR 8 billion.

Dubal Q2 output up by 8.3%

Gulfnews reported that state owned smelter Dubai Aluminium Company’s Q2 output rose 8.3% YoY to 237,630 tonnes due to higher regional demand.

Mr Khalid Bu Humaid GM of Dubal said that "Our targeted production for 2008 remains approximately 950,000 tonnes.” He added that “Our production rose on higher demand for aluminium in the region and globally."

Mr Bu Humaid said that around 22% of Dubal's output last year was consumed in the Middle East, making it the company's third largest market after Asia and Europe.

The Middle East Economic Digest in March said that the Gulf Arab oil exporting region, basking in windfall oil revenue from a more than six fold rise in oil prices, is witnessing a construction boom with more than USD 2 trillion worth of projects either announced or underway, t

Apart from hydrocarbons, aluminium is one of the largest industries in the UAE. In 2007, Dubal produced 889,548 tonnes of extrusion billets and foundry alloys, used mainly in construction, transport and electrical industries.

RAK FTZ reports big growth

TradeArabia News service quoted Ras Al Khaimah Free Trade Zone Authority reporting significant growth in the H1 of 2008, with 847 companies registered during the period.

The authority said that total of registered companies with RAK FTZ reached 4,773 by end of June, making it one of the fastest growing Free Trade Zone in the region.

RAK FTZ companies contribute an estimated capital of AED 10 billion to Ras Al Khaimah economy. Future investments of AED 1 billion are also underway or being planned.

Since 2005, the number of companies registered in the free zone increased from 1,362 to 4,773. The growth was more than 300%. Significant companies that make up the largest part of the RAK FTZ portfolio are trading, IT services and consulting companies. The free zone has also seen growing interest in the manufacturing sector as well.

Mr Oussama El Omari CEO of RAK FTZA said that “These results can be attributed to the free zone’s reputation in the market and our satisfied clienteles as we continue our efforts to build an ideal business and industry environment at RAK FTZ.”

As part of RAK FTZA strategy to continue improving their services and remain competitive, two new liaison offices at Cologne in Germany and at Istanbul in Turkey have opened in the H1 of 2008 to attract more foreign businesses and strengthen trade and industrial coordination in each country. In addition, a new business centre and commercial liaison office in New York is underway.

RAK FTZA also signed a memorandum of understanding in February with Ras Al Khaimah Chamber of Commerce to enhance commercial and economic cooperation between the two departments.

Work on Jordanian water project to begin in August

The Jordan Times citing the Mr Raed Abu Saud Minister of Water and Irrigation reported that work on a project to provide Jordan's capital with 100 million cubic meters of water will start August 3rd 2008.

The newspaper said that the cost of the project, which will be complete by 2012, has increased from JOD 622 million (USD 878 million) to JOD 702 million because of rising steel and oil prices and a weakening dollar.

According to the newspaper, Tukish’s GAMA is carrying out the Disi Water Conveyance Project.

EUR 2 billion for Shahriar refinery

Mehr News Agency reported that more than EUR 2 billion will be invested to complete Shahriar refinery in the city of Tabriz.

Mr Seyed Hassan Ghasemzadeh project manager of Shahriar refinery explain that “When the refinery becomes operational, 150,000 barrels daily will be added to Iran’s refining capacity and 70,000 barrels to the country’s gasoline production capacity. The refinery aims at increasing oil products production and improving the quality of the products.”

He further added that “Lowering gas oil’s sulfur content, complying gas oil with EURO-V standard and constructing an FCC unit are among the salient features of this project.”

Baosteel may take over Pangang

The China Times cited a well known source as saying that on the directives of the state owned Asset Supervision and Administration Commission, Baosteel has visited Pangang which is located in Southwest China, indicating a possible combination between two state owned steelmakers.

According to CISA authority, the state owned Asset Supervision and Administration Commission is unsatisfied with Pangang's performance and intended to have Baosteel to acquire it in consideration of their strong complementation. He said that “Baosteel has started to approach Pangang a period before and sent people there for investigation, but the whole thing has yet to be nailed down.”

Mr Chen Xingui deputy GM of Pangang said that Baosteel had visited Sichuan and some mills under Pangang previously but he is unaware of the recomposing issue.

Mr Hu Hao Central china securities steel analyst told the China Times that if the reform happens between Baosteel and Pangang, resource and capital will be the most important links. He said that in six aspects, the two sides would be complementary

1. Pangang's possession of rich vanadium-titanium magnetite and Baosteel's coking coal

2. Baosteel can make up capital shortage for Pangang's development

3. Baosteel's advanced management can be applied in Pangang to solve the problems featuring an old state-owned enterprise

4. Baosteel can rely on Pangang's resources to develop high-end construction while Pangang could have its product mix completed as well

5. Baosteel's technical advantage can give a push to the Sichuan-based partner

6. Southwest market can be better developed and seized through regrouping of the two

Chinese HRC export prices likely to dip further

It is reported that Chinese hot rolled steel export offers are expected to see further decrease in the coming weeks.

Domestic HRC prices are still on the decrease. On Shanghai market, commercial 4.75mm to 12mm HRC in 1500mmwidth was at CNY 5670 per tonne to CNY 5700 per tonne down by CNY 70 per tonne from last week. That for 1800mm wide cargo was at CNY 6150 per tonne down by CNY 50 per tonne week on week. However, price for commodity grade 2.75mm HRC has risen by CNY 50 per tonne to CNY 6300 per tonne

Export offers for commodity grade 5mm to 12mm HRC are prevailing at USD 1000 per tonne to USD 1020 per tonne FOB down from USD 1030 per tonne FOB up in the first half of July. An East China based steel maker even has cut its offer by to USD 990 per tonne to USD 1000 per tonne FOB for shipments to South Korea.

(Sourced from MySteel.net)

200,000 firms involved in steel distribution business in China

Xinhua net reported that during a recent private economic development forum held in Shanghai it was revealed that there are more than 200,000 steel distributing companies in china, including some 1000 large ones and that the steel trading industry needs exaltation in concentration ratio.

As per report, Shanghai is forging a steel trading hub in Baoshan and aims to build it into one of the nation's major centers for China steel price index releasing, steel trading and services.

According to Mr Huan Yushan former vice president of China Federation of Industry & Commerce, China's steel distribution realm is interwoven by state, private and foreign owned enterprises, which complete on the market. He said that “A low concentration ratio yet proves unfavorable when the economy and investment growth meet disturbing factors, which could shake the steel market and price and bring steel traders great risks.”

Baosteel Medium Heavy Plate Co restarts exports after relocation

It is reported that Medium Heavy Plate Branch of Baosteel has recently completed the first export contract.

In order to support the construction of Shanghai Expos, Heavy Medium Plate Co totally moved from Pudong to Luojing. As a result, the supply to foreign consumers has been interrupted for almost one year.

Heavy plate roller project was commissioned in this March. The company has got authentications from nine ship’s classification societies and has signed the first export contract with South Korean consumer on more than 5,000 tons of ship building steel.

Growth rate of steel output in Hebei Province dips in H1

According Mr Wang Dayong secretary general of Metallurgical Industry of Hebei province, Hebei firstly saw its growth rate of crude steel and pig iron lower than 10% in eight years and growth for crude steel firstly lags behind the country's average level.

The statistics showed that in the January to June period, the province produced 59.56 million tonnes of crude steel, 59.0 4 million tonnes of steel products and 58.68 million tonnes of pig iron rising by 8.92% YoY, 18.13% YoY and 9.28% YoY respectively.

Hebei still remained the country's first place for steel contribution but the sales to output ratio was about 99.23% for the province an increase of 0.72% YoY from the same period of last year.

In addition, the country's control of steel products for export had obvious effect in Hebei. In the first half of this year, about 4.45 million tonnes of steel products were exported from the province down by 17.14% YoY, earning some USD 3.7 billion gaining 31.86% YoY. The average price for one tonnage of exported steel product increased 59.13% to USD 831.36.

Tangshan Steel inks long term COA to transport iron ore

It is reported that Tangshan Steel inked a 15 year contract of affreightment with Shandong Far East Shipping Group upon which the latter will transport a total of 27 million tonnes of iron ore for the mill from Australia and Brazil.

As per report, the cooperation came after continuing record levels of ocean freight rates occurred due to an acute imbalance between strong demand on dry bulk cargo transportation and actual shipping capacity as well as soaring oil price in the international market. Both companies have agreed on a pricing policy based on “actual cost + rational profit”.

Anshan CRM rolls JV starts operations

It is reported that the 50:50 JV, financed by an engineering technology company Shanghai TRUSTECH and Anshan Iron and Steel, Anshan TRUSTECH has launched operations.

After launching operation, Anshan TRUSTECH could repair more than 5,000 rollers per year for Angang, and provide services in time, securing a smooth production of Angang.

This means Angang will have the cold rolling rollers repaired at a lower cost without the transportation fee, and can save costs by several million Yuan per year.

Chinese GDP in Q3 to grow by 10%

Xinhua reported that a consensus estimate from 17 Chinese and foreign institutes forecasts that China's gross domestic product will grow 10% and the consumer price index will rise 6.1% during the third quarter down by 0.1 percentage points and 1.7 percentage points, respectively from the second quarter.

Mr Lu Feng a professor at Peking University and one of the forecasters said "The government's tight monetary policy is beginning to work to bring down inflation with the quickened pace of Renminbi appreciation and a slowdown in money supply and GDP growth."

Mr Song Guoqing another Peking University economist said "The dramatic increase in demand since last year was driven by money supply growth. However, statistics released in June showed a steady downward trend in money supply.”

He said that "Besides, a large portion of the 'hot money' is deposited in banks to profit on interest rate and foreign exchange rate differentials. Plunging stocks have caused wealth losses. These are being translated into a slower pace of fund circulation."

Mr Song Guoqing said that "Considering changes in the pace of fund circulation and money supply, the growth rate in overall demand is expected to continue slowing."

China's GDP grew 10.6% in the first quarter and 10.1% in the second, with 10.4% growth for the first half of 2008. The CPI stood at 7.9% in the first half.

Lueyang Steel rebar project starts operation

China Metallurgical News reported that Shanxi Lueyang Iron & Steel Corp's new steel bar project was put into operation on July 24th which can produce 12 mm to 40mm round bar and rebar.

As per report, the deadly May 12th Wenchuan quake has wholly crippled the steel mill's operation and caused direct loss of CNY 160 million. However, the mill has resumed production since June 5th 2008 and the start up of its expanded iron making 1# blast furnace on June 12th has pushed daily steel output from 1,300 tonne to 2,000 tonne an increase of some 50% from the pre quake level.

Lueyang Steel is a large steel complex in Northwest China's Shanxi province, with annual crude steel output of 1 million tonnes and sales revenue of over CNY 3 billion. Its key products are pig iron, continuous casting billet, round bar and rebar.

Huadian shuts down 13 power generators

XFN Asia reported that Huadian Corp, the parent of Huadian Power International shut down 13 smaller and less efficient power generators with a combined capacity of 788,000 kilowatts in the first half.

Huadian Corp in a statement said that coal consumption for 1 KWH of electricity decreased by 7.46 grams in the first half.

China plans to shut down 13 million KW worth of coal fired generating capacity this year, as part of an effort to hit national energy saving and pollution reduction targets.

In the 2006 to 2010 period, the government plans to reduce energy consumption per unit of GDP growth by 20% and emissions of major pollutants by 10%.

China Metallurgical bags refractory contract from Anshan Steel

It is reported that recently, China Metallurgical Baosteel Technology Baojiuhe Company in Anshan City and Anshan Iron and Steel Company signed a contract for supplies of refractory for Anshan Steel’s Bayuquan blast furnace project.

As per reports, 6 suppliers participated in the bid.

Yantai Lubao Steel Pipe posts better performance in H1

It is reported that Yantai Lubao Steel Pipe Company has posted record performance in the first half of this year with output and sales volume achieving 58% and 53% of annual target respectively.

Its sales of strategic products during January to June 2008 also achieved the annual target of 64%, among which, sales of competitive products targeted at 107%, hit the best record in history.

Jiangshu wind farm to start next year

Interfax China cited an official with the Jiangsu Province Macroeconomic Research Institute as saying that China's first large scale off grid wind power project is due to begin trial tests next year in Jiangsu Province, three years earlier than previously planned.

The goal of the project is to utilize wind resources in the coastal areas of Jiangsu. However, the generated power will not be fed into the national power grid but instead, will be directly transmitted to local industrial consumers, especially those related to the seawater desalination and metal smelting sectors.

Mr Gu Weidong dean of the JMRI, which is in charge of the design and research of the project, said that "The research process for this project has been much quicker than we previously anticipated. He said that results of next year's trial tests will be submitted to the central government for final approval.”

According to Mr Gu the project will direct power generated by a wind farm located on a 24,000 square kilometer sandbank in Jiangsu. However, details of the farm's installed capacity and construction plans have not yet been released.

He said that "Domestic power companies, such as China Longyuan Electric Power Group Corp., China Huadian Corp., and China Power Investment Corp have all invested in the wind power project."

According to the National Development and Reform Commission, Jiangsu has seven wind power projects, with a combined installed capacity of 1,500 megawatts, near its coastal areas that are due to come online by 2010.

Baosteel set up a specialty committee for planning the group

China Securities Journal reported that Baosteel has set up a speciality committee for planning the group company's steel development, studying and evaluating the proposed projects.

Mr Li Haiping vice general manager of the group's listed unit said the committee will direct at the group's merger and acquisition and building new steel bases, working on the planning and dealing with the relation with related industries.

He said that it's very important for Baosteel to shape a sound planning system to meet the demand for promoting a new round of development and second undertaking of the company, when its layout is broadening from a region to across the nation and even the whole world.
As per report, the committee will include 25 expert members from the group, Baoshan Iron & Steel Co, the major steel branches and subsidiaries and relevant domains, led by He Bowen, general manage of the group. The committee aims to plot overall development strategy of the steel business, organize and demonstrate the orientation of products and production lines of the new projects and in the acquisitions.

Liuzhou Steel's import and export values Surge in H1

It is reported that Guangxi based Liuzhou Steel has witnessed strong growth momentum in import and export values in the H1 of 2008 with total import/export value up by 67.14% YoY to USD 623 million, accounting for 63.06% of the total self run import/export value of Liuzhou city.

As per report, the steelmaker has reaped export value of USD 203 million in the period an increase of 50.95% YoY over the same time of last year and ranks No 1 in the top 50 enterprises in local in terms of export value; import values hit USD 420 million up by 76.29%, representing 79.43% of the total import value of the local city.

The steel mill has adjusted its export destinations in the first half due to the financial crisis in Vietnam, its largest trade partner and increased exports to Italy, Saudi Arabia and Jordan etc.

The mill's export value has hit a monthly record of USD 52.43 million in June.

(Sourced from MySteel.net)

Fosun plans to build 10 million tonnes per year steel base in Lianyungang

China Business News reported that Fosun Group, one of China's largest privately owned blocs is reportedly planning to build 10 million tonnes per year steel base in Lianyungang, a port city of Jiangsu Province. An initial item of 4 million tonnes is being reviewed for advice.

According to the report, if approved by the National Development & Reform Commission, the province's largest steelmakers would build various steel projects in Lianyungang with a tonnage of up to 20 million tonnes. Fosun is expecting to construct a maximum of 10 million tonnes per year by its subsidiary Nanjing Iron and Steel United Co Ltd in which it has a stake.

With a capacity of 6.5 million tonnes crude steel right now, Nanjing Iron & Steel United Co, Ltd is hoping to add a medium plate line and bring the capacity up to 8 million tonnes. This line would be set up in Lianyungang if the steel base is approved there; besides another 2.5 million tonnes other products will be built in the initial project.

Lianyungang is qualified to base the new steel capacities, as a port city, and the plotted Xuwei development park can hold 20 million tonnes at most, leaving Shagang, Huaxi Steel and other big producer chances apart from Fosun. To equip the steel base, a 250,000 tonnes iron ore dock is under construction, slated for operation next year adding to the existing 150,000 tonnes.

Monthly steel export in Shandong province rebounds

According to the Customs of Qingdao, Shandong exported 2.37 million tonnes of steel products in the H1 of 2008 valued at USD 2.2 billion down by 33.4% YoY and 2.3% YoY respectively. Export average prices presented an up moving trend and the volume started rebound since March.

The blooming export business for steel products was effectively checked since last July upon the government's policies. The figure dropped to below 300,000 tonnes in February 2008 and then showed rally month by month, hitting 591,000 tonnes in June the highest level since last August. Meanwhile, the average price climbed up evidently to over USD 1000 per tonne in June.

The rally of steel export was chiefly triggered by the increasing price gap between domestic and overseas markets as well as the expectations about the government's further policy correction of steel product.

The export fever for steel products is an impetus for blind expansion of the country's steel industry, resulting in growing demand for and rising dependence on imported materials such as iron ore and will make steel exporters face upgrading trade risks. Since this May, the United States, the EU and Mexico raised anti dumping and anti subsidy investigation applications for steel products from China.

(Source: www.dzwww.com)

Huainan mining to become the largest Energy Company

It is reported that Anhui Huainan Mining Group will become the largest energy company in the southern part of Yellow River after five years development. The group aims to yield 90 million tonnes of raw coal per annum by 2012.

Huainan coal mine is one of the five largest coal mines in the country, with total reserves representing 74% of Anhui province and 50% of East China's total reserves.

Sinotrans Shipping H1 net profit up by 231% YoY

XFN-Asia reported that Sinotrans Shipping Ltd first half net profit rose 231% YoY to USD 190.82 million on strong growth in its dry bulk and container shipping businesses.

Sinotrans Shipping Ltd revenue rose by 79.5% to USD 234.41 million with dry bulk shipping revenue up by 94.2% at USD 209.16 million and container shipping revenue rising 46.4% to USD 7.24 million. Revenue from oil tanker shipping service however was down by 1.5% at USD 17.2 million due to a decrease in tonnage as a result of disposal of a single hull very large crude oil carrier.

Sinotrans said revenue from charter hire income of its dry bulk shipping rose 89.1% to USD 168.0 million due to an increase in charter hire rates for dry bulk shipping amid strong demand for shipping of raw materials such as iron ore and coal. Average daily charter hire rate in the dry bulk shipping business increased from USD 20,142 to USD 37,409 up by 85.7%.

Sinotrans Shipping Ltd expects the dry bulk shipping business to remain relatively robust in the second half of the year, helped by robust demand in China for imported iron ore, coal and crude oil.

WSP Holdings acquires Steel Manufacturing Company

WSP Holdings Limited, a leading Chinese manufacturer of API and non API seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction and other pipes and connectors, announced that Wuxi Seamless Oil Pipes Company Limited has signed an agreement with Hebei Bishi Industry Group Co Ltd to acquire 100% equity ownership of Tuoketuo County Mengfeng Special Steel Co Ltd a wholly owned subsidiary of Bishi.

According to the released, WSP China will pay CNY 276.8 million in cash for the acquisition of Mengfeng. Payment will be made in two installments. The first installment of CNY 141.2 million has been made and the second installment of approximately CNY 135.6 million will be made in December 2009.

The released added that WSP China plans to spend a capital expenditure of an estimated CNY 50 million to upgrade Mengfeng's production technology and continue construction of a new iron production line. Plans call for crude steel production capacity to be expanded to an estimated 800,000 tonnes per year, and iron production capacity to be developed which will eventually reach an estimated 450,000 tonnes per year.

Mr Longhua Piao chairman & CEO of WSP Holdings said that "This acquisition is part of WSP Holdings' plan to become a vertically integrated business. Purchase of Mengfeng gives us the ability to produce steel billets, ensuring that our OCTG manufacturing has access to adequate supplies of raw materials. We expect that Mengfeng will eventually supply 70% of the steel billets used by WSP China. Ownership of iron and crude steel production facilities allows us to expand our metallurgical research and develop specialized alloys for use in high-end non-API OCTG products. He said that steel billets account for over 80% of our OCTG production costs. This upstream acquisition should help us stabilize the supply, quality and cost of an important raw material, providing us with competitive advantages in the domestic and international OCTG markets."

WSP Holdings develops and manufactures seamless Oil Country Tubular Goods including seamless casing, tubing and drill pipes used for on shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors. Founded as WSP China in 1999, the Company offers a wide range of API and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions. The Company's products are used in China's major oilfields and are exported to oil producing regions throughout the world.

Datong Coal Industry H1 net profit up by 155% YoY to 205% YoY

XFN-Asia reported that Datong Coal Industry Co Ltd net profit growth during January to June is expected to increase by 155% to 205% YoY due to soaring coal prices as well as expanded production.

The report added that in H1 of 2007, the company booked a net profit of CNY 244.36 million.

The company is due to release audited first half financial results on August 25th.

Cosco and Yantian to acquire into Fuzhou port

The South China Morning Post reported that Hong Kong listed Cosco Pacific a subsidiary of the Cosco Group is in talks to bring a partner into its plan to take a 30% stake in the operations of Fuzhou Port.

According to the report, Cosco signed a letter of intent with Fujian Provincial Communication Transportation to acquire an equity interest in the port last year.

Sources said that Cosco plans to join with Shenzhen state owned port manager Yantian Port Group, with Cosco buying a 20% stake and Yantia acquiring 10%.

Fuzhou Port has been chosen by China's Ministry of Communications to conduct trial runs of direct transport links between the mainland and Taiwan. Fuzhou handled 330,000 TEUs of trial direct-link cargo last year.

Taiyuan Steel to cut EXW prices for August

It is reported that market rumor is circulating that Taiyuan Steel may cut the ex-works prices considerably for August 2008 productions. In detail, price for CR 300 series might be lowered by CNY 1,500 per tonne and price for HR might be lowered by CNY 1,000 per tonne while price for 400 series may hold steady. The news has yet to be confirmed by the steelmaker.

As per report, Taiyuan Steel is a super large steel complex in China and a stainless steel producer with the greatest capacity and most advanced equipment of the world. The mill has churned out 9.29 million tonnes of crude steel last year, out of which, stainless steel production reaches 2.02 million tonnes; with business income of CNY 100.3 billion and pre-tax profit of CNY 9.6 billion.

The mill is ambitious to vault into the World Top 500 Enterprises by 2010 and doubles its current business income to CNY 200 billion by 2015.

(Soured from MySteel.net)

Anyang Steel successfully rolled out European standard S355MC cold formed steel

It is reported that recently, Anyang Iron and Steel Company’s second rolling mill successfully developed European standard S355MC cold formed steel, according to the report, all the technical parameters are in line with the national standards.

The successful development of the European standard S355MC cold formed steel further expands the research on the varieties, confirms Anyang Steel’s double high products.

Jigang and Linuo carry out strategic cooperation in solar energy

It is reported that, Jigang Group and Linuo Group which is a leading enterprise in solar energy industry signed strategic cooperation agreement in Jinan to together to promote the new material and new technology’s utilization in solar energy industry.

As per reports, the two sides have carried out cooperation in solar energy, organic chemicals (paint) and new energy industry. In this cooperation, Linuo Group will carry out deep research and development in solar energy by using the Jigang Group’s research and technology, personnel etc.

The insiders believe that the solar energy is the renewable energy, and will gradually instead of the conventional energy. The cooperation between Jigang Group and Linuo Group will be helpful to the development of domestic solar energy industry.

Jinan Steel marks 50th anniversary

Jinan Steel commemorated its 50th anniversary on July 1. During the past 5 decades, the mill had produced 86 million tonne of steel, 83.41 million tonne of pig iron, 72.57 million tonne of steel products, achieved sales revenue of CNY263.2 billion, profit and tax of CNY 30.2 billion, profit of CNY 15.1 billion and contributed a CNY 31.9 billion-worth wealth to the country, including CNY 19.3 billion of profit and tax and CNY 12.6 billion of added value in the state-owned assets.

The mill has now edged into China’s top 10 largest steelmakers with an annual capacity of more than 12 million tons.

Ronggang 220 KV transformer substation put into operation

It is reported that recently, Rongcheng Iron and Steel Group 220 KV transformer substation successfully put into operation, it is the largest user transformer substation in the south region of Tianjin.

The operation of the transformer substation can greatly ease the electricity load in the south of Tianjin, plays important role in the use of electricity.

As per reports, the transformer substation covers an area of 22.275 million square meters, and the total investment is CNY 190 million. It can load 110,000 kilowatts for the original plant and load 30,000 kilowatts for the high-speed wire rod project, load 14,000 kilowatts for the converter, totally can load 1.54 million kilowatts.

Chinese rebar export price declines in Southeast Asia

It is reported that Chinese price of rebar with a diameter more than 16mm declines in USD 1,000 per tonne to USD 1,050 per tonne, CFR in Singapore. An importer indicated that the quotation from some steelworks is USD1,070 per tonne but there are requires. It is realized that due to strict examination by Customs, steelworks do not supply any rebar with boron.

As rebar price is over high and the price begin to slip, consumers still hold a “wait and see” attitude. The price of rebar was around USD1,050 per tonne to USD 1,070 per tonne, CFR four weeks ago.

A trader from Singapore believed that rebar price for shipment in end September or October may recover. However, the offer from Chinese steelworks is still falling down now.

Masteel heavy shaft wheel sells well in Australia

It is reported that after the successful development of 40 tonnes heavy shaft wheel in 2007, Masteel rapidly opened the market in Australia and up to July 2008 it exported about 6000 pieces of 40 tonne heavy shaft wheels to Australia.

As per report, the heavy shaft wheel is a potential product in domestic and foreign markets, China’s first coal transportation railway Daqin Railway used Masteel’s wheel. This year, the total contract volume of Masteel to Australia has reached 15,000 pieces.

At present, Masteel wheel is producing 3200 pieces of Q 970 wheel that will be exported to Australia.

Huaigang begins to construct oil well pipe and butt welded pipe project

It is reported that Huaigang Special Steel Co under Jiangsu Shagang Group started the construction of oil well pipe and butt welded pipe project on July 28th. The project is the second phase technology alteration project in “11th five-year” plan.

The investment in oil well pipe project is CNY 2.9 billion and it w