Indian Coal Industry Outlook till 2012

“Indian Coal Industry Outlook till 2012” is the new market research report by RNCOS on one of the earliest fossil fuels used by the mankind, coal. India has been relying on coal for its energy requirements since long and this report provides extensive research and objective analysis on the extensive coal sector in India.

It reviews the performance of the Indian coal industry in recent years and focuses on the driving factors, future prospects and issues associated with it. Detailed data and analysis given in the report will help investors to comprehend the rapidly changing dynamics of the coal industry.

The Indian coal industry is the fourth largest in terms of coal reserves and third largest in terms of coal production in the world. But despite its huge resource base, till date, India has not been able to minimize its coal deficit.

Coal has been recognized as the most important source of energy for electricity generation and industries such as steel, cement, fertilizers and chemicals are major sectors of coal consumption. So in order to satisfy the coal demand, the Indian coal industry needs more investment and private players to raise its production level. The coal washeries have to take bigger role in the industry to produce less moisture and ash based coal to sustain in strict environment regulations.

Some of the salient points are
1. Coal requirement for the power utility will grow at a CAGR of around 10% during 2007-08 to 2011-12.
2. Private coal washeries have rapidly increased the production of washed non coking coal in India during 2002-03 to 2006-07.
3. High coking coal demand by the Indian steel industry and low reserve base has boosted the import of coking coals.
4. Coal demand from the Indian cement industry looks bright and it is expected that coal requirement by the industry will rise steadily from 2007-08 to 2011-12.
5. Coking coal requirement in steel production is expected to touch over 85.34 million tonnes in 2011-12.

The report provides the overview and financial information of prominent players in the Indian coal sector like Coal India Ltd, Singareni Collieries Company Ltd. & Neyveli Lignite Corporation Ltd.

Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, industry news and developments, and through access to more than 3000 paid databases.

Date of Published: Feb '08
Single User PDF Format: USD 1100
Multi-User License: USD 2000
Hard Copy: USD 1400
CD-ROM: USD 1400
No of Pages: 75

You can order your copy to reports@steelguru.com, who will send you an invoice for the report

Indian per capita use of steel reaches 43.4 kilograms in 2007

According to a release from International Iron and Steel Industry, India’s per capita use of apparent steel in 2007 reached 43.4 kilogram up by 9.6% YoY as compared to 39.6 kilogram in 2006

(Volume in kilogram)

(Sourced from IISI)

SAIL steps up availability of steel in domestic market in India

Steel Authority of India Limited has achieved best ever Q1 performance in many areas while maintaining its thrust on production to meet the growing demand for steel in the domestic market during April-June 2008. In the month of June'08, SAIL's domestic sales stood at 1.11 million tonnes, which is 36% higher as compared to June' 07. Total sales during Q1 went up to 2.65 million tonnes.

With thrust continuing on maximizing the production of special steel/value added items, SAIL produced a million tonnes of such products during Q1, which is highest ever for any quarter, up by 41% over CPLY. This included 0.193 million tonnes of 90-UTS rails for the Indian Railways, the highest ever in any Q1.

Sales of TMT bars and HR coils have respectively been 74% and 20% higher in June '08 as compared to June '07. The company also registered highest ever Q1 sales of special quality steels with an overall growth of 49% over CPLY. Prestigious orders from the Indian Navy were booked for DMR-249 grade A/B plates during the period.

TATA Steel may begin work at Kalinga Nagar plant in a month

BS reported that TATA Steel, proposing to set up an INR 15,400 crore, 6 million tonnes integrated Greenfield steel plant at Kalinga Nagar in Orissa, hopes to start the construction work of the project within a month.

As per report, it has shifted about 700 families out of 1200 families to be displaced by the project in an effort to clear the site for start of work.

Mr B Muthuraman MD of TATA Steel said that "The process of shifting the displaced families is going on and we hope to start the construction of the Kalinga Nagar plant soon." He added that it could be within a month and it has sought the assistance of the Orissa government in this regard.

TATA Steel has already placed orders worth INR 6000 crore for the Kalinga Nagar project, it has not been able to start the construction due to the resistance of local tribals. The state government is reported to have assured the company to provide required assistance to start the project as soon as possible.

Meanwhile, TATA Steel is started offsite steel fabrication for hot strip mills in an area leased out from the state owned Industrial Development Corporation near Jajpur Road to reduce the construction time for the project. Besides, the construction of the incoming material section yard is almost complete.

SAIL improves techno economic parameter in Q1

It is reported that Steel Authority of India Limited has achieved further improvement in key techno-economic parameters during April to June 2008 quarter.

Its energy consumption at 6.88 giga calories per tonne of crude steel and reduction in coke rate are some of the parameters, where improvement has been recorded.

Production through the energy efficient continuous casting route crossed 2 million tonnes, which is highest ever quarterly performance, with 121% of capacity utilization.

Converter lining life also touched a new peak of around 7,500 blows at Bhilai Steel Plant against the earlier record of 6,316 blows.

Update on SAIL modernization and expansion plans for Q1 of 2008

Implementation of SAIL's modernization & expansion program has been commenced for major packages of IISCO Steel Plant, Salem Steel Plant and of BSL's new Cold Rolling Mill.

Capital projects which got completed in Q1 include Installation of Hot Metal Desulphurisation Unit and Coke Oven Gas Holder at Rourkela Steel Plant, 50 MW power facilities for Oxygen Plant at Bokaro Steel Plant and Coal Dust Injection in Blast Furnace 3 at Durgapur Steel Plant.

Environmentalist to oppose water supply to TATA Steel plant in Bastar

BS reported that environment activists are gearing up to protest against the Chattisgarh government's move to supply water from Indrawati River for constructing the plant and meeting the demand of water at the initial stage of TATA Steel’s proposed steel plant in Bastar region.

Mr Sharad Verma president of Bastar Society for Conservation of Nature said that "Any move to give water from Indrawati to the proposed TATA steel plant will be strongly opposed." He added that the society is collecting all details before drawing up a strategy.

Mr Verma said that “Indrawati is considered the lifeline of Bastar as it is a holy river for tribals. The river originates from Rampur Ghumal village in Orissa's Kalahandi district. But a major part of the river flows in Chhattisgarh. About 43% of the tribals in the interior parts of Bastar depend on Indrawati for their livelihood as the river is a major source of irrigation, fisheries and drinking water. The existence of the river is itself at stake as its course is returning to Orissa and merging with Jora nullah instead of entering the Bastar region."

He said that "Water level recedes fast after the monsoon and at many places, Indrawati gets dry as the natural flow diverts into Jora nullah near the state border and returns to Orissa. If TATA draws water, it would set a new precedent as the National Mineral Development Corporation would also demand water from Indrawati for its proposed sponge iron unit coming up in the area."

Mr Manoj Varu deputy secretary at department of water resources said that the TATA plant would get water from Indrawati for 3 years. It would be requiring 4 million cubic meters of water a year.

Meanwhile, Mr Krishna Nandan TATA's project in charge in Bastar, said that "Water from Indrawati would be used only as a stop gap as the company would get water from Sabri for routine use."

SAIL inks MoU with SCI

It is reported that Steel Authority of India Limited had signed a MoU with Shipping Corporation of India to promote a JVC to facilitate import of coking coal for SAIL on July 1st 2008.

SAIL and SCI will hold 25% each in the JVC and the remaining share capital will be held by other strategic partners, who are yet to be identified.

The JV firm will primarily provide various shipping related services to SAIL for importing coking coal and may also participate in world wide dry bulk shipping trade.

Indian car sales in June up by 8% YoY

BS reported that the sales of India’s leading car makers including Maruti Suzuki, Hyundai Motors, M&M, TATA Motors and Honda Siel have gone up by 8% YoY in June 2008 as compared to the same period last year, despite the hike in car prices, increase in excise duty on bigger cars and spiraling inflation.

Details of car sales in June 2008

As per report, the five car makers together sold 160,000 vehicles in June 2008 as compared to 148,000 units in June 2007. Had it not been for the negative growth of TATA Motors, the sales of other four manufacturers would have grown by 15% YoY in the same period.

Maruti Suzuki sold 61,247 vehicles in June 2008. Consumers, however, opted for its mid sized and bigger cars rather than smaller versions. It witnessed a staggering 48% in the A3 segment, including Dzire and SX4, despite hiking the prices by INR 15,000. On the other hand, the sales of Maruti 800 fell by 13% YoY from 6214 units in the corresponding period last year. The sales in the A2 segment, comprising Alto, Swift, Zen and Wagon R, grew by a measly 0.3% YoY in June 2008.

Hyundai Motors registered a sales growth of 45.3% YoY at 40,182 units in June 2008. The domestic market accounted for 21,881 units and exports stood at 18,301 units. It witnessed a 57% YoY growth in the A3 segment, selling 6272 units of Accent and Verna in June 2008 as compared to 3983 units in June 2007. Hyundai, however, witnessed a decline in A5 sales. It sold 47 units of Sonata in June 2007 as compared to 67 units in June 2007. In the SUV segment, it sold merely 4 units of Tucson as compared to the 21 units in June 2007.

TATA Motors continued to see a decline in sales. The sales of passenger vehicles fell 1% YoY to 54,525 units in June 2008 from 56,066 units in June 2007. The sales of flagship Indica came down by 26% YoY to 25,676 units. However, the big car Indigo saw a strong growth of 81% YoY at 13,052 units.

Stanley Works plans expansion in Madhya Pradesh

BS reported that US based hand tools maker Stanley Works is planning expansion in Madhya Pradesh and will shortly open its exclusive showrooms in Indore to strengthen its hold in tool distribution market in India.

Mr Kuldeep Bhardwaj GM of Stanley said that "The plan is to target two industrial areas of Pithampur near Indore and Mndideep near Bhopal. Madhya Pradesh is a very important market for us and we are aggressively targeting the upcoming automobile and pharmaceutical industry which is in a becoming stage."

He also said that Stanley tools are the most cost effective, since they are made of highest quality product. The continuous and fast growth of the Indian manufacturing and automotive repair business made this proposition apparent to our customer.

Stanley is an S&P 500 company and holds a record of continuous dividend payouts for 129 consecutive years.

CESC to pay 40% dividend for 2007-08 fiscal

BL reported that the board of directors of CESC Limited has recommended a dividend of 40% on the paid up share capital of the company for the year ended March 31st 2008.

CESC has earned an income of INR 2,904 crore in 2007-08 fiscal up by 12.8% YoY as against INR 2,573 crore in 2006-07 fiscal. The net profit in 2007-08 fiscal stood at INR 627 crore down by 1.5% YoY as compared with INR 637 crore in 2006-07 fiscal.

BGR Energy beats BHEL to bag TNEB order

It is reported that Chennai based BGR Energy Systems Limited has won an INR 3,100 crore engineering, procurement, construction contract from Tamil Nadu Electricity Board for building a single unit of 600 MW coal based power project at Mettur in Tamil Nadu.

BGR Energy has won the contract over Bharat Heavy Electricals Limited, which was the only other bidder in the international tender. The balance of plant will be produced in house by BGR Energy. The project includes the installation of a gas insulated substation, which will also be imported.

Mr BG Raghupathy CMD of BGR Energy said that the value of materials and services provided in house is about INR 1,500 crore.

The project is to be commissioned within 39 months, with penalties for delay, but no incentives for earlier production.

With this order, BGR Energy’s order book doubles to INR 6,000 crore, which includes 4 balance of plant contracts and various jobs in oil and gas sector.

ABB to power Delhi International Airport

It is reported that ABB has won an order worth USD 77 million for design, supply, installation, testing and commissioning of electrical products and systems for the new Terminal 3 building at Indira Gandhi International Airport in Delhi. ABB’s solutions are part of a modernization project to prepare the airport for the Commonwealth Games in 2010.

Scope of the order includes 11 kilovolt panels, distribution transformer, low voltage panel, cabling, wiring, conduits, light fixtures, bus ducts and uninterruptible power supply for dependable backup power if primary power is lost. SCADA provides local and remote control capability for immediate access to real-time network information, as well as easy connectivity to other systems in the electrical network. ABB will also provide electrical infrastructure and control systems for T3, which is currently under construction. ABB’s intelligent power distribution management system, SCADA, will be used to monitor and control the terminal’s entire electrical network.

Mr Peter Leupp head of ABB’s power systems division said that "Airports are exceptionally demanding work environments that require extremely reliable power supplies. ABB’s comprehensive range of energy efficient electrical products and systems will ensure reliable power distribution and control of power."

Delhi airport’s state of the art terminal T3 will cover an area of 520,000 square meters with capacity to handle 25 million passengers, and is scheduled to be operational by March 2010.

Stone laid for Narla Tata Rao thermal power station

Projects Today reported that Mr Jairam Ramesh union minister of state for commerce & power has laid the foundation stone for a 125 MW integrated coal gasification combined cycle power unit at Vijayawada in Krishna district of Andhra Pradesh on July 1st 2008.

The plant also known as Narla Tata Rao Thermal Power Station is a JV of Bharat Heavy Electricals Limited and Andhra Pradesh Power Generation Corporation. The power plant will come up at a cost of INR 950 crore and is scheduled for completion by 2011.

Metro rail project in Navi Mumbai

Projects Today reported that Navi Mumbai Municipal Corporation has submitted proposals for metro rail and monorail projects to Mumbai Metropolitan Region Development Authority.

The proposal has been drafted by the NMMC in consultation with Maharashtra government’s infrastructure arm City and Industrial Development Corporation. NMMC has proposed metro rail corridors between Mankhurd in Greater Mumbai and Panvel near Navi Mumbai which mainly proposes to connect the island city with the new airport.

NMMC is of the view that, the metro rail and monorail projects are highly required for the city as there are two SEZs are coming up in and around Navi Mumbai. Also, the upcoming proposed international airport near Kalamboli, and the central business district in Belapur which houses government as well as corporate houses. The proposed projects will give a boost to the transportation facility and ease the traffic.

TATA Motors gives a tough outlook

Mr Ratan Tata chairman of TATA Motors said that higher rates will hit performance and warned that it is driving into a rough patch.

He added that "There will be an enormous and unprecedented increase in material costs in steel, tyres, and the like and there will be the impact of tighter money supply with higher interest rates."

Mr Tata said that the other major challenges would be to manage the completion of the Singur plant, introduction of Nano and absorbing the cost of acquiring Jaguar and Land Rover.

He pointed out that while TATA Motors registered significant growth last financial year, it lost market share and was unable to exploit its full market potential due to inadequate deliveries of power trains and components from major suppliers.

Pratibha Inds bags INR 179 crore contract from Lanco Hills

Projects Today reported that Pratibha Industries has secured a contract worth INR 179.72 crore from Lanco Hills Technology Park for construction of Mall Podium of 4 basements upto ground level.

The total constructed area shall be 1,522 million square feet and the work order is to be executed within 15 months.

LJP to reopen chemical fertilizer plant in Talcher

SNS reported that Mrs Shibani Sengupta state president of Lok Janashakti Party has visited Sambalpur district of Orissa to check the availability of chemical fertilizers for farmers during peak seasons and also announced the re opening of the fertilizer plant in Talcher soon.

She interacted with the farmers, who informed her that they had to buy fertilizers at a higher price from the open market

Mrs Sengupta said that "I came to know that the farmers not only purchase fertilizers at high prices, they also do not get it in time. I will place the matter before the ministry."

She said that her party intended to re open the fertilizer plant at Talcher soon, seeing the plight of the poor farmers. She added that "Proposal for its re opening has been submitted to the finance and planning ministry. We are just waiting for their approval."

India finalizes oil & gas cooperation agreement with Cuba

India and Cuba have finalized India Cuba Hydrocarbon Agreement for cooperation in the oil and gas sector. This emerged at an hour long meeting between Mr Murli Deora union minister of petroleum & natural gas and his Cuban counterpart Ms Yadira Garcia Vera at Madrid on the occasion of 19th World Petroleum Congress.

Recognizing the need for such a mechanism for facilitating further cooperation between the two countries, the two sides agreed that Mr Deora would visit Cuba for signing the agreement which could coincide with spudding of oil wells by ONGC Videsh in its exploration block in Cuba.

Mr Deora recalled the long standing friendly relations between the two nations and emphasized that the process to further cement ties should be carried forward in the backdrop of ventures finalized in recent years. OVL acquired interests in 9 exploration blocks in Cuba including 100% in two blocks. The contracts for these blocks were signed in 2006. He expressed keen interest of the Indian companies to participate in both upstream and downstream projects in Cuba which have good potential to fructify.

Ms Garcia Vera invited investment in the planned new refinery project on the west coast of Cuba. She said that the project is slated to have a capacity of 1.5 million barrels a day. Further Indian companies could also participate in the capacity expansion and up gradation of the existing refineries. Showing keen interest in the proposal, Indian side explained that India has set up refineries which produce latest grade environment-friendly fuels of Euro III and Euro IV standards. Besides domestic markets, these products also cater to export markets including the US and Europe.

Mr Deepak Gupta joins as new secretary of MNRE

It is reported that Mr Deepak Gupta has taken charge of secretary of union ministry of new & renewable energy. His earlier posting was as special secretary in ministry of health & family welfare.

Mr Gupta also worked in the ministry of human resources development, water resources, commerce & industry and ministry of textiles. He also worked with World Health Organization.

GVK BHP consortium won bids for 7 exploration blocks

Projects today reported that GVK BHP Billiton consortium has emerged as the winners of 7 deepwater exploration blocks off the west coast of India. GVK Oil & Gas, a subsidiary of GVK Power & Infrastructure Limited is the lead partner in the consortium.

It may be noted that India government had put on offer 57 oil and gas blocks of which 19 were deepwater blocks, 9 shallow water blocks and 29 on land blocks. It had received 181 bids for 45 blocks, with 7 deepwater blocks, 2 shallow water blocks and 3 on land blocks not receiving any bids. Around 96 companies have bid in the seventh round. While 19 blocks received single bid, 26 attracted multiple bids.

Evaluation of the bids will be undertaken by centre and the blocks are expected to be awarded within 2 months. The entire process would take about 2 months from bid receipt to the award of contracts and the contracts are expected to be signed by September 30th 2008.

GSPC emerged as winner in 11 blocks in NELP-VII

BS reported that Gujarat State Petroleum Corporation has emerged as provisional winners in as many as 11 blocks in the 7th round of New Exploration Licensing Policy.

It may be noted that GSPC is aiming to pump in over USD 100 million initially for exploration of these blocks 8 of which are offshore. In all 96 companies submitted bids for the 45 blocks, with 19 of them receiving single bids and 26 others attracted multiple bids.

Of the offshore blocks, GSPC has bagged one block in KG Basin which is adjacent to its existing block KG-17 well, which is one of the most significant discoveries for the company. It had for the first time struck oil and gas in the same well. Of the 8 offshore blocks, GSPC has bagged 3 in Mumbai and 2 potential blocks in Cambay basin.

GSPC has pumped in over INR 2000 to INR 2,500 crore on exploration of KG Basin in the last one year or so. ONGC GSPC has bagged 3 deepwater blocks and GSPC consortium has won 1 on land block. Also, GSPC with ONGC as partner has won one block in Kerala Konkan region.

It is also planning to hit the capital markets by coming out with an IPO by September 2008 to part finance the proposed development of GSPC's Deendayal gas field in KG Basin. GSPC along with Adani has also announced plans to build a 5 to 10 million tonnes per annum liquefied natural gas terminal at Mundra port by 2013.

Aditya Aromedic starts commercial production of bio diesel

BS reported that Gujarat based Aditya Aromedic & Bio Energy Private Limited has recently started commercial production of bio diesel from Jatropha. The good news is that bio diesel marketed by the company is cheaper than the fossil diesel sold by oil marketing companies in India.

Registered in 2005, Aditya Aromedic started commercial production of bio diesel from Jatropha 3 months back. The production capacity of its plant located in Navsari district of South Gujarat is 17,000 liters per day. In a quick span of 3 months, it has developed a sizeable clientele in Ahmedabad, Nadiad, Vadodara, North Gujarat and other major cities such as Mumbai and Delhi.

Mr Dharmendra Parekh chairman of Aditya Aromedic said that "With the soaring crude prices, fossil fuels are going to get dearer in days to come. Bio diesel produced by our company is sold at a price of INR 38.90 per liter in Navsari, while the prices of regular diesel in the same area are around INR 39.20 per liter. Once the company scales up its production, the bio diesel cost may come down."

Having made an initial investment of INR 5 crore, Aditya Aromedic is now looking at a major expansion drive. Apart from Navsari, it already has bio diesel depot near Mehsana in North Gujarat. Soon, it plans to roll out bio diesel pump, which would be the first bio diesel pump in India.

Domestic pricing trends in India

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

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

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

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

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

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

Ennore Port shortlists 6 firms for container terminal

BS reported that Ennore Port Limited has shortlisted 5 consortiums and 1 individual company to build its proposed container terminal at an estimated cost of INR 1,300 crore.

As per report, around 40 companies had shown interest but only 5 consortiums and 1 company were shortlisted for request for qualification. These companies will now go to the next stage, which is request for proposal. The consortium companies are

1. NYK Line, Evergreen Marine, Hyundai Marine with ZIM Port

2. Group Maritime JCBSL with Obrascon Huarte Lain SA, GE Mauritius International Holdings and Eredene Holding Capital

3. Sterlite Industries along with Eurogate and KG Mota Engle

4. Gammon Infrastructure Projects with Dragados Servicious, Portuarilou Logistics and Leighton Contract India Limited

5. Larsen & Toubro with John Keels Holdings

The only company to bid for the terminal on its own is APM Terminals BV.

Some of the international bidders who are out of the race include Dubai government owned DP World, PSA International of Singapore, Mundra Port and SEZ with Neptune Orient Lines and GVK Power and Infrastructure along with Mitsui and Company.

Mr S Velumani CMD of Ennore Port said that "Work on the project would commence in the next 6 months. The terminal is likely to start operations by mid 2011. The project will be built on the public private partnership model. "He added that it is also planning to build a four lane road linking the new terminal with NH-V. The National Highways Authority of India has prepared the project report and is awaiting the shipping ministry's clearance. The new terminal will come with 125 acres of container yard adjoining the kilometer wide berth.

Mr Velumani said that once the terminal starts operations, it will be able to simultaneously handle three mainline vessels with capacities of 8,000 TEUs each, as well as four feeder vessels. He added that the terminal is expected to handle around 1.5 million TEUs in its first year of operations.

TATA Steel team completes Mt Kilimanjaro expedition

TATA Steel has announced that its nine member expedition team, led by legendary Ms Bachendri Pal, successfully climbed the World's tallest free standing mountain Mount Kilimanjaro. As a part of TATA Steel's centenary celebrations, the team created history when they completed 19335 feet climb on June 29th 2008.

The Indian team had left for Tanzania on June 23rd 2008 and after four days of training in which they were informed about the challenges of taking up the Machame route for the expedition, they began their journey on June 28th 2008 and completed it within 24 hours.

On the team’s arrival in Tanzania, they were informed about the challenges of taking up the Machame route for the Expedition. They were discouraged from taking that path. However, the determination of the all women team led by an equally steadfast and courageous leader, Ms Bachendri Pal was unaltered and the team did not falter to take up the route decided earlier. A brilliant display of resilience and tenacity inspite of facing high altitude sickness and acclimatization problems because of low oxygen, the team stuck together. A felicitation was organized for the team on behalf of The African Government to acknowledge their spirit of adventure.

Ms Bachendri Pal, leader and chief of TATA Steel Adventure Foundation
Ms Lovely Das, Ms Rajal Patel, Ms Sushma Bissa, Ms Parul Sah, Ms L Annapurna, Ms Premlata Agarwal, Ms Chetna Sahoo, Ms Anita Soren.
Ms Christina John Mlowe joined the team in Tanzania. She is a Tanzanian National working in TATA Africa sales unit.

TATA Steel Centenary Indo – African Expedition to Mt Kilimanjaro is a tribute to the glorious 100 years of TATA Steel by TSAF. It re enforces the philosophy of the company which believes that Sports is a way of Life at TATA Steel. Ms Bachendri Pal takes up challenging assignments of this nature with an all women team and it is always supported by TATA Steel. It strongly believes in women empowerment and since its inception has left no stone unturned to promote adventures like this.

The team is scheduled to arrive in New Delhi on July 6th 2008. The team members are as follows

Umicore to spend USD 10 million on India zinc firm

Belgian metals and specialty materials maker Umicore has announced that it will spend USD 10 million to buy and make investments in Anandeya Zinc Oxides Private Limited in India.

Umicore, in a press statement, said that "The transaction is subject to certain standard closing conditions and is expected to be completed by early August 2008."

GVK ups stake in Gautami Power to 51%

GVK Power & Infrastructure Limited has informed BSE that its subsidiary Gautami Power Limited has allotted 10,60,09,912 equity shares of INR 10 each at par to GVKPIL against the share application money already invested by the company.

As a result, the equity stake of the GVKPIL in GPL has been increased from 44.97% to 51%. With this development, GPL has become a subsidiary of the company with effect from July 1st 2008.

New Mangalore Port workers to join nationwide strike

BL reported that port and dock workers in New Mangalore will join the nationwide indefinite strike of port and dock workers, which is scheduled to begin on July 16th 2008.

Mr Ramachandra Gowda joint secretary of All India Port & Dock Workers’ Federation said that the representatives of the 5 recognized federations of port and dock workers, who met in Mumbai on June 26th 2008, have decided to serve a notice of strike on the port authorities concerned seeking the implementation of understanding reached at the level of Bipartite Wage Negotiating Committee.

He said that "The management of Indian Ports Association had agreed in the meeting with the recognized federations to extend benefits of the amendment made by the central government in the Bonus Act liberalizing the eligibility limit and definition of pay for calculation of bonus to port and dock workers." He added that the shipping ministry has not taken any decision in this matter even after 6 months.

Mr Gowda said that several other issues such as merger of 50% of dearness allowance with basic pay with effect from January 1st 2005; filling up of vacant posts and implementation of consensus report of the sub committee constituted by the ministry to look into the grievances of the federations on the cadre restructuring report of the officers are also pending with the ministry for several months.

It may be noted that, on March 29th 2008, Bipartite Wage Negotiating Committee took a decision to pay 13.5% of the basic pay as interim relief to port and dock workers with effect from January 1st 2007. Though this was submitted to the ministry in April 2008 for its approval, it is still pending with the ministry.

PSL lines up USD 60 million CAPEX plan

BL reported that PSL Limited has lined up a capital expenditure program of USD 60 million to ramp up its production capacities of its units both in India and overseas over the next 12 to 18 months.

Mr Ashok Punj MD of PSL said that the expansion was being taken up at a cost of about USD 30 million and was expected to be completed by the middle of 2009. The unit primarily caters to West Asia and North African markets, but with the expanded capacity it would look for new markets in Iran and Iraq.

He added that "The high crude prices have led to the resumption of operations of a string of marginal fields that were closed down in the past when crude prices were at USD 40 mark. Now these fields were being re-opened and hence there is a sharp rise in demand for transportation of oil and gas."

As part of its expansion, it is increasing the capacity of its Sharjah manufacturing unit from the present level of 75,000 tonnes a year to 300,000 tonnes a year. It is taking up the expansion of the Sharjah unit in the wake of a sharp rise in demand for pipeline transportation of oil and gas, with crude prices touching the USD 140 a barrel mark.

PSL is currently setting up a 300,000 tonne plant near Mississippi in through its subsidiary PSL North America LLC. It expects the plant to be operational in the second quarter of the current fiscal.

Mr Punj said that plant will be primarily catering to the market that extends from New Orleans to Alabama, which is the Katrina relief zone. The PSL plant near Mississippi is being set up at a cost of USD 103 million, out of which USD 25 million is equity and the rest is being funded through local municipal bonds that carry a 30 year repayment period.

In India, PSL is expanding its Visakhapatnam unit from the present 75,000 tonnes to 300,000 tonnes at a cost of about USD 20 million. This is in the wake of GAIL (India) announcing two major cross country pipeline projects from Kakinada, near Visakhapatnam.

RINL focus on value added steels

BL reported that Rashtriya Ispat Nigam Limited is continuing its thrust on value added steels during the current financial year as in 2007-08 fiscal.

During April to June 2008 quarter, it produced 503,000 tonnes of value added steel, which is 72% of its production of saleable steel of 700,000 tonnes. There is a sales growth of 43% YoY. The sales turnover during April to June 2008 quarter was INR 2,744 crore as against INR 2,023 crore, registering a growth of 36% YoY.

Government to meet steel producers over retail price rise

PTI reported that Indian government has convened a meeting of steel producers to discuss trade distortions and review restrictions on steel exports, as retail prices of the alloy have started showing an upward trend.

Mr RS Pandey union steel secretary said that "Though primary producers have not raised prices, steel prices have shown an upward movement in June at retail level. It is a matter of concern."

Mr Pandey said that, during tomorrow's meeting, the government may ask them to ensure that dealers passed on the benefits of the frozen price line to end consumers. He added that "The retail prices of steel had declined by about 14% in May 2008 but as per the latest data, prices have risen by nearly 10% across various steel products in June. The bottom line is that if primary producers like SAIL, TATA Steel, JSW, RINL and others have not increased prices, the rates should not go up in retail as well."

He said that, despite a price increase in retail level, the domestic steel prices are ruling down by INR 10 to 15,000 per tonne over the international prices and this was achieved only due to various measures taken by the government in recent months.

Mr Ravi Khetarpal new CMD of Bharat Dynamics

Bharat Dynamics Limited has a new man at the helm of affairs with Mr Ravi Khetarpal taking over as new CMD.

Mundra Port – Updates

Mundra Port & Special Economic Zone Limited, in a recent press release, said that "We understand from media reports that an exparte stay has been granted by Supreme Court against carrying out construction activities in SEZ at Mundra. We are awaiting the papers from Supreme Court. We have complied with various procedures and formalities for setting up SEZ at Mundra and will submit the details to the Supreme Court shortly with a request to vacate the exparte stay. The port at Mundra is operating normally."

Godawari Power inks MoU with Chhattisgarh for cement plant

It is reported that Godawari Power & Ispat Limited has signed a MoU with Chhattisgarh government for setting up of a cement plant comprising of 2 million tonnes per annum capacity of cement and 1 million tonnes per annum capacity of clinker along with power plant of 50 MW capacity. The total cost of the project is envisaged at INR 628 crores.

The project shall be implemented through a special purpose vehicle to be incorporated in due course after allotment of limestone mines by the state government.

Shree Precoated press release on FY 08 results

With reference to the earlier announcement dated July 1st 2008 regarding "Shree Precoated announces Consolidated FY 08 results", Shree Precoated Steels Limited has now informed BSE that since Jolly Brothers Private Limited Company, yet to commence the operation and no separate profit & loss account is prepared. Therefore the above consolidated result be treated as a stand alone also.

The figures for the standalone audited results & consolidated for the year ended March 31st 2008 are reproduced below

Shree Precoated has posted a net profit of INR 2455.20 million for the year ended March 31st 2008 up by 16.7% YoY as compared to INR 2102.90 million for the year ended March 31st 2007. Total income has increased from INR 16787.20 million to INR 19641 million, up by 16.9% YoY.

Mr Sudhir Srivastava appointed as senior VP of Metso Minerals

Metso Minerals announced that it has appointed Mr Sudhir Srivastava as senior VP of Metso Minerals India, with immediate effect. He will also continue to be a member of Metso’s construction business line management team and be responsible for the construction Asia market area.

In his new role as senior VP, Mr Srivastava’s responsibilities extend across all aspects of business. He will be in charge of developing Metso Minerals’ business in India, implementing strategy in current lines of business and preparing the ground for new ones to be launched. He will represent the company in all business and social forums and would also be responsible for the growth and expansion of manufacturing units, supply chain, quality assurance and human resources.

Mr Srivastava said that "India is a priority market for Metso and our business has grown rapidly in the past 5 years. Metso stands in the thick of India’s exciting infrastructure development and we wish to be part of this growth by offering our technological expertise, extensive service support, world class manufacturing facilities and strong after market support."

Recently, Metso announced it has bagged new orders worth INR 112 crore to supply an iron ore induration machine to Global Supplies Limited, another order worth INR 73 crore to supply an iron ore induration machine to JSW Steel Limited and an order of INR 45 crore to supply equipment and basic engineering to Bharat Mines & Minerals Ispat, respectively.

NHRC probe into human rights violation at POSCO steel site

SNS reported that National Human Right Commission has initiated a preliminary probe into alleged violation of human rights of people living within the proposed POSCO steel plant site.

Mr Damodar Sarangi a special official of the NHRC visited the district yesterday and interacted with officials and few villagers. During his visit, he had a discussion with Jagatsinghpur district collector Mr Pramoda Kumar Meherda, SP Mr RK Sharma, additional district magistrate of Paradip Mr Dillip Mohanty, district rehabilitation officer Mr Surjeet Das, special land acquisition official Mr Nrusingh Swain. He also visited a few villages like Dhinikia, Govindpur, Nuagaon and Gadkujang and interacted with people belonging to both the pro and anti POSCO factions.

Over the last 2 years resistance movements have resulted in innumerable clashes, ostracisation of villagers and abduction. Schools have been used as camps for policemen and also to hold meetings at the cost of education. Many have allegedly fled their village to safer places and are staying with relatives due to intermittent clashes between pro and anti POSCO groups.

It is learnt that a Delhi based NGO had moved the NHRC in this regard while the Kujan Bar Association had also submitted a memorandum to the State Human Rights Commission.

Top 10 corporate taxpayers of India

It is reported that, with a slowdown in the economy, rising inflation and eroding profits, there is tremendous pressure on companies across sectors. The worst hit is the oil companies as crude prices are zooming to record highs.

But there is a silver lining amidst the gloom, especially for the government. With the tax coffers filling up like never before, thanks to more taxes being paid by India’s top performing companies, the government can breathe at least a little easier.

Despite incurring heavy losses, India's oil companies are the top taxpayers. The top 10 corporate taxpayers in India are

In INR Crore

SPML ties up CH Karnchang for airport projects

Subhash Projects & Marketing Limited has tied up with Thailand's CH Karnchang to bid for airport projects in Indore and Raipur.

The up gradation cost of both the airport is estimated to be around INR 300 crore each. The final bid is expected to be in place by September 2008.

Ineos, Mitsui in race for equity stake in Dahej project by ONGC

BS reported that at least a dozen companies, including foreign firms, have expressed interest to pick up a stake in ONGC Petro Additions Limited, ONGC's mega petrochemical complex in Dahej.

Ineos, Mitsubishi Chemicals and Japan's Mitsui Chemicals are among the multinational companies in the fray for a stake in the INR 12,500 crore OPaL, which is considering an equity tie up with Petronet LNG.

According to sources, it is also in talks with a couple of oil and gas PSUs, including Indian Oil Corporation and overseas financial institutions like the West Asia based QIP group.

ONGC holds a controlling 26% equity share in OPaL, which is evaluating a number of partners and the proportion of the equity tie up will be less than 26%. The upcoming petrochemical complex is an anchor tenant in the upcoming Dahej Special Economic Zone, which is spread over 1,700 hectares.

The petrochemical complex will come up on 500 hectares with a 55 acre ethane and heavier hydrocarbons extraction unit adjacent to it. Over 90% of the work on ONGC's C2+ extraction plant is expected to be commissioned by this year. The unit will act as a feedstock provider to the petrochemical complex.

Essar nets INR 200 crore for Esmark bid pullout

BS reported that Essar Steel has been compensated with USD 45.3 million for withdrawing its bid for US steel maker Esmark.

Russian metal giant Severstal, the successful suitor, paid Essar USD 25 million as a termination fee and a loan cancellation charge of USD 20.3 million.

The Essar sources said this is the amount received by the company as a break-up fee and exercise of warrants attached to the loan provided to Esmark, which is now being bought by Severstal.

Mangalore port stake in SEZ

BS reported that New Mangalore Port Trust has evinced interest in picking up around 10% stake in Mangalore Special Economic Zone Limited in an effort to become a partner in the project.

MSEZ is a special purpose vehicle floated by Oil & Natural Gas Corporation, Karnataka Industrial Area Development Board, Infrastructure Leasing & Financial Services and Kanara Chamber of Commerce & Industry to develop a multi product SEZ at Mangalore.

MSEZ Limited has an equity capital of INR 50 crore. While, ONGC has 26% stake in the project, KIADB has 23%, IL&FS holds 49% and the remaining 2% is held by KCCI.

Mr ISN Prasad MD & CEO of MSEZ Limited said that "NMPT approached us recently and expressed interest in picking up stake in MSEZ. Among the existing equity holders, KIADB, which holds 23% stake, has agreed to divest 10% of their stake to NMPT. While, there is no objection by other equity holders in the company, NMPT needs to take an approval from the Union ministry of shipping."

He said NMPT has already received an in principle approval by the union ministry of shipping. However, the ministry has asked NMPT to furnish the details of the project and the exact involvement of NMPT in the SEZ before giving the final approval. He added that "Once the ministry gives its final consent, the proposal will be placed before the Union cabinet for further approval. The whole exercise is expected to be completed very soon."

Mangalore SEZ project is the first such project being developed on the coastline of Karnataka, wherein it is expected that at least INR 50,000 crore will be invested in the next 5 years. The project is being developed in an area of 4,000 acres, of which already 1,900 acres have been acquired. Presently, 450 acres land has been allotted to Mangalore Petrochemicals Limited. Another 85 acres land has been given to Indian Strategic Petroleum Reserves for building an underground reservoir for storing crude oil at an investment of INR 1,500 crore.

JSW Steel Q1 2008 crude steel output up by 22% YoY

JSW Steel Limited has posted crude steel production of 976,000 tonnes in April to June 2008 quarter up by 22% YoY but flat rolled products output fell by 12% YoY.

The hot rolled coil and plate output fell as its hot strip mill was shut for 17 days in June 2008 for modernization.

Top 80 steel producing companies in 2007

International Iron and Steel Institute, in a recent report, has unveiled the ranking of top 80 steel producing companies in the world with comparison to their ranking and output in 2006.

(Volume in million tonne)

(Sourced from IISI)

Global products steel price in June up by7% - MEPS

UK based MEPS said that “US transaction prices continue to spiral upwards, although recent increases are more moderate. Nucor has announced a relatively small rise of USD 30 per ton for August deliveries. Service centers are keeping inventories at minimum levels as their sales activity is slow. End users, who are suffering because of the weakening economic climate are maintaining very low in house stocks and purchasing only for their immediate needs. Nevertheless, supply is vastly reduced. There is a lack of imports, caused in part by high sea freight rates and a weak US dollar.”

MEPS said that “In Canadian mills order intake is still strong and that they are operating at full capacity, despite concerns over manufacturing industry suffering due to high steel costs. Imports and future permits for overseas steel remain low and this reduced pressure has helped the local producers. Distributors' inventories are declining. Steelmakers expect that steel values will climb even further as the scrap situation fully impacts the market.”

MEPS added that “In China, most stripmill product prices continued to move upwards following our May research. However, more recently, some weakness has developed. Nevertheless, our figures are still above those of a month ago. Baosteel has revised prices for the third quarter in a positive direction, although there has been no formal announcement. Excellent sales to the automakers are helping to keep supply tight in Japan. Foreign steel is more expensive than domestically produced material. Quayside stocks of imported flat products, at end May, were 8.1% higher than in the previous month the first increase since September 2007. Export business continues to perform well.”

MEPS said that “South Korea's POSCO will lift most product prices for domestic sales, effective July 1, in response to soaring raw material costs and the higher prices of domestic and overseas competitors. Re-roller, Hyundai Hysco, also hiked values for cold rolled and coated steel, in a similar time-frame, having recently agreed a massive increase for its imported hot rolled feed. In Taiwan, CSC has announced a series of price rises for domestic deliveries in period three. The average advance is around TWD 4500 per tonne, which is lower than buyers' expectations. Demand generally is strong. Further expansion is anticipated in the final quarter.”

MEPS added that “Polish customers have accepted another price escalation as third quarter deliveries are finalized. In the Czech/Slovak markets demand is booming. Producers are talking of more expensive steel because of their higher costs. Overall, supply is tight, especially at the distribution level. End users are buying only for their immediate requirements and, therefore, service centers are keeping stocks on the low side. The relentless upward movement in West European prices continues. Customers are obliged to accept the higher third quarter values demanded by local producers. Values of imported strip are still increasing although less material is entering the region. There is relatively little steel from China due to the pending anti dumping investigations. Output from domestic mills appears to be restricted.”

(Sourced from www.meps.co.uk)

Olympic Steel plans for new processing facility in Ohio

Olympic Steel Inc announced that it has entered into an agreement to purchase a 62,000 square foot processing facility at Dover in Ohio. The closing of the transaction is expected to occur later in the third quarter of 2008, subject to the satisfaction or waiver of customary closing conditions. The facility is expected to be operational during the fourth quarter of 2008.

Mr Michael D Siegal chairman & CEO of Olympic Steel said that "We are pleased to announce the addition of a new satellite facility in Ohio. A key component of our strategy is to be closer to our customer base. This new facility will allow us to better serve original equipment manufacturers in Central Ohio and the adjoining states. We are extremely thankful to the State of Ohio, the Tuscarawas County Commissioners and Port Authority, and the City of Dover for their efforts in supporting this approximately $5 million investment project.”

Olympic Steel founded in 1954 is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 15 facilities.

CMC acquires assets of ABC Coating companies and affiliates

Commercial Metals Company announced that it has completed the acquisition of substantially all the operating assets of ABC Coating Company of Texas Inc of Texas, ABC Coating Co Inc of Colorado, Banner Rebar Inc of Colorado and Toltec Steel Service, Inc of Illinois. The acquisition also includes Texas based Rebar Trucking, Inc and the 50% interest of the ABC Coating of North Carolina joint venture with CMC in Gastonia and ABC Coating Tennessee of Nashville.

ABC Coating companies established in 1978 are involved in rebar fabrication and epoxy coated reinforcing bar servicing the southwest, Midwest and Southeast US with approximately 250 employees. All six locations will become a part of the CMC Americas Fabrication and Distribution segment.

Mr Russ Rinn executive vice president of CMC & CMC Americas President said that “We are excited about bringing this group of companies into the CMC family. The geographical and product line expansion will enable us to offer additional value-added services to our customer base. Their outstanding team of employees who exemplify the drive and leadership of the company's founder, Don Benge will provide additional strength to our Company.”

Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.

Bekaert workers strike over plant closure plans

Reuters reported that Belgian workers at steel cord and wire manufacturer Bekaert staged a 24 hour strike on Wednesday in protest at the Belgian company's plans to reorganize its steel cord operations.

As per report, around 2,000 blue collar employees stopped production at a number of plants across the country.

The company, whose products reinforce tyres and concrete, announced last week it planned to close a plant in the eastern town of Lanklaar, affecting 136 jobs, and transfer production from another plant in the western town of Waregem.

POSCO orders for SMS and slab caster for new plate mill

Siemens VAI Metals Technologies has received an order from the POSCO for the installation of a new Greenfield steel mill at its production site at Gwangyang in South Korea. The project will be implemented in consortium with POSCO E&C and POSCON.

The first slab is scheduled to be cast on the new caster in May 2010, which will be rolled to plates in a new plate mill also under construction

The project scope includes engineering and the supply of key components, systems and technological packages for an LD converter, RH degassing plant and slab caster.

Siemens Metals Technologies will provide engineering and key equipment for a 250 tonne LD converter and offgas system, an RH degassing plant and a 2 strand slab caster with a nominal casting capacity of 3.2 million tonnes of slabs per year. The converter supply includes the maintenance free VAI Con Link suspension system, converter tilting unit with drive, an oxygen valve stand for the LD lances and slag stoppers for minimized slag carry over during tapping. The dry type converter offgas treatment system will be designed to cool and dedust up to 200,000 meter cube of offgas per hour in accordance with the strict Korean environmental standards. The 250 ton RH degassing plant will reduce the hydrogen and nitrogen gas content of the liquid steel to acceptable values as required for the production of high quality plates.

The 2 strand slab caster with a casting bow radius of 9.5 meters will be capable of casting slabs with thicknesses of 250mm and 300mm millimeters and in widths ranging from 1,400mm to 2,400 mm. The caster will be equipped with a wide array of technological packages. This includes DynaFlex for the online flexible adjustment of the mold oscillation parameters, SmartMold with its cassette type mold design that allows the copper plates to be quickly exchanged and LevCon 2 for improved automatic mold level control. A SmartBender will be installed as the first segment in the strand support system to enable fast slab-thickness changes to be carried out. Advanced caster segments of the type SmartSegment will enable the online and fully automatic adjustment of the slab thicknesses. DynaGap SoftReduction technology will allow the strand taper in the area of final solidification to be dynamically adjusted for improved internal strand quality. The Level 2 Dynacs secondary cooling system featuring dynamic strand-cooling management ensures ideal cooling conditions according to the respective steel grade.

Japan offering HRC at USD 1,070 FOB to Vietnam

It is reported that Japanese steel mills were offering their export price at USD 1,070 per tonne FOB to Vietnam market for the third quarter shipments. But the tonnage will be reduced by 40% than last quarter.

As per report, the price that Japanese mill are offering to Vietnam is the highest among Southeast Asian countries.

Workers file lawsuit against Sidor for non payment of profits

BNamericas reported that employees at Venezuelan steelmaker Sidor have filed a suit against the company to demand payment of their share of profits from 2002 to 2007.

According to Mr Pedro Rondón a Sidor board member and representative of class B shareholders, the employees presented the commercial court with the suit and there are other employees that have been seeking payment for unfulfilled commitments since 1998.

Mr Rondón said that the legal complaint is based on the labor law which states that employees gain a share of company profits. The decision to take legal action was made after the government did not respond to employee requests. Mr Rondón said that "By doing so, we hope to regulate the company from a legal perspective."

The report said, through the other suit that the employees plan to file regarding unpaid benefits, they will demand that accumulated debts to workers be paid by the Ternium group and that the amount be discounted from the compensation the Venezuelan state agrees to pay for nationalizing the company.

According to local press reports, the Venezuelan government and Ternium are finalizing compensation negotiations since Mr Hugo Chávez president of Venezuela decided to nationalize the Sidor plant in April. The amount could come to USD 2 billion.

Tenova receives FAC for walking beam furnace at the Arcelor Mittal Poland

Tenova LOI Italimpianti Genoa has successfully received the FAC Certificate for the Arcelor Mittal 450 tonne per hour walking beam furnace of the new MSPKK Hot Strip Mill located at Krakow in Poland in the very short period of only four months from the start up.

The scope of Tenova contract, included in Siemens VAI package, was engineering, supply and supervision services for erection & commissioning.

CCS could reduce global CO2 emissions by one third - BCG

According to a report released by US based Boston Consulting Group, Carbon capture and storage technology has the potential to reduce by one third the total global emissions of carbon dioxide from stationary.

The report said that the group's analysis determined that if the 1,000 largest fossil fuel burning power plants and industrial facilities began using CCS technology by 2030, more than one third of estimated total global emissions of CO2 would be reduced. Such a development would allow utilities to upgrade, rather than shut down, large fossil fuel based generation facilities.

The group said that while the high cost of CCS technology has slowed deployment, a stable carbon price of EUR 30 per tonne which could be achieved with government subsidies, would have the technology pay for itself, Boston Consulting said. An initial subsidy of EUR 100 billion during a ramp up period would enable development of CCS to proceed as the carbon price stabilized.

The consulting firm said that most efforts to mitigate global warming have focused on improving energy efficiency and deploying renewable resources, and while both are necessary, they are not likely to be sufficient to contain increasing global carbon emissions.

Taiwan HDG imports drop in May

According to related documents issued by the Customs, Taiwan imported 27,758 tonnes of hot dip galvanized steel products in May 2008 decreased by 31.5% MoM.

The import price on average was at TWD 27,900 per tonne up by TWD 900 per tonne. China was the main supplier at 14,495 tonnes and the import price was TWD 28,500 per tonne on average.

At the same time, Taiwan exported 103,181 tonnes of hot dip galvanized steel products, up slightly by 4% MoM. The export price on average was at TWD 29,040 per tonne up by TWD 1,150 per tonne from April.

(Sourced from YIEH.com)

Votorantim Metais secures USD 336 million from BNDES for new mill

BNamericas reported that Brazil's federal development bank BNDES approved a BRR 540 million loan for the implementation of steelmaker Barra Mansa's second mill in Resende near Rio de Janeiro.

The BNDES financial assistance equals 45% of BRR 1.2 billion investment.

Owned by Votorantim Metais, the new mill is projected to produce 1 million tonnes per year in long steel products and the project will provide 700 new direct jobs.

The report further added that the new semi integrated mill is already being built and is expected to be operating by 2009 to supply Brazil's heated construction sector with wire rods, billets and concrete reinforcing bars.

Since 2002, Barra Mansa has been upgrading its production facilities. Grupo Votorantim revamped the company's rolling mills, and between 2003 and 2006 built a new ingot line.

CSC updates for June 2008 production

Taiwanese steel major China Steel Corporation has given the following update on production during June 2008

In tonnes

In million TWD

CSC said that the shipments for June declined MoM due to semiannual stocktaking of our customers and unfair weather. However, higher ASP contributed a lot to accumulative revenue which has achieved record high.

IEA cuts global supply growth forecast

According to the International Energy Agency, global oil supplies are forecast to grow more slowly than expected over the next 5 years, taking spare capacity to ‘minimal levels’ in 2013, despite weaker demand growth.

IAE in its latest Medium Term Oil Market Report said that it has cut its supply forecast by 2.7 million barrels per day to 95.33 million barrels per day in 2012, with output from non OPEC countries expected to be 1.4 million barrels per day lower than previously thought at 50.68 million barrels per day. Non OPEC supply is expected to reach 51.1 million barrels per day in 2012, up from 49.9 million barrels per day in 2008.

IAE said that declining output from maturing oilfields, as well as delays and cost overruns at new sites would lead to lower than expected growth in supplies. Global demand is projected to rise an average 1.6% per annum or 1.5 million barrels per day, until 2013, but supply growth would drop to 1 million barrels per day from 2010. Some 90% of the demand growth is expected to come from Asia, South America and the Middle East, reflecting rising wealth and growing populations. However, higher prices and slower economic growth is expected to impact global demand. Spare capacity is set to rise from 2.5 million barrels per day in 2008 to over 4 million barrels per day in 2009 before falling in 2013 to about 1 million barrels per day.

ArcelorMittal eyeing Indonesian cable maker Jembo

ANTARA News reported that publicly listed cable maker PT Jembo Cable Company is included in the list of companies, the world's largest steel maker Arcelor Mittal wants to acquire.

A company source told the newspaper Investor Daily that ArcelorMittal, which has failed to acquire a stake in the state owned steel company PT Krakatau Steel, will buy Jembo at premium price including through secondary market.

The paper reported that good performance recorded by Jembo in the first half of the year have pushed up its share prices and attracted buyers. It said that a number of local and foreign investment managers have also indicated interest in the shares of Jembo.

JPMorgan starts Gerdau at overweight

It is reported that JPMorgan started coverage of Brazil's largest steelmaker Gerdau with an overweight recommendation.

JPMorgan in a research note to clients said that "Gerdau is uniquely positioned to benefit from an improved pricing environment, given that it has not only added capacity but it is also the only Latin producer with spare capacity to accommodate thriving domestic consumption and with improved pricing, its US exposure is no longer a major concern.”

In addition, JPMorgan set a 2008 year end price target of USD 31.00 for Gerdau's American Depositary Receipts and BRR 54.00 for the company's Brazilian shares.

Gerdau is JPMorgan's top pick among Latin American steel producers. The US bank said that "Given Gerdau's growth prospects and its unique position to benefit from the positive industry environment, in our view Gerdau deserves to trade at a premium to peers.”

Reliance Steel begins cash tender offers to buy PNA Group senior notes

Reliance Steel & Aluminum Co announced that it has commenced cash tender offers to purchase any and all of the outstanding PNA Group Inc 10.75% Senior Notes due 2016 and any and all of the outstanding PNA Intermediate Holding Corporation Senior Floating Rate Toggle Notes due 2013 as well as related consent solicitations to amend each of the indentures governing the Notes.

There is outstanding USD 250,000,000 principal amount of the Fixed Rate Notes and USD 170,000,000 of the Floating Rate Notes. The tender offers and consent solicitations are being conducted in connection with Reliance’s agreement to acquire the outstanding capital stock of PNA Group Holding Corporation, a national steel service center group and the parent company of the issuers of the Notes.

The completion of the tender offers and consent solicitations are not conditions to completion of the Acquisition or the financing thereof. The tender offers will expire at 5:00 PM on August 1st 2008.

Citi has been retained to serve as the sole Dealer Manager for the tender offers and the consent solicitations.

Domestic steel price trends in India, China and MEA

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

In order to provide such information 3 web sites have been launched
1. www.steelprices-india.com
2. www.steelprices-china.com
3. www.steelprices-middleeast.com
These portals provide domestic pricing information for benchmark steel products in each category at select location in India, China and Middle East on a regular basis 5 days a week. Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available to give a sense of alternates.

The prices are displayed on daily, weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. A calculator to convert domestic prices into comparative CNF and vice versa is also provided, which takes into account all duties and expenses. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.

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

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

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

Erdemir export offers for July 2008 production

It is reported that after being absent from the export market for a number of months, Erdemir organized an export tender for July 2008 output. It had set a base price of USD 1120 per tonne FOB for HR coil and USD 1150 per tonne for CR coil but only small volumes to Italy and central Europe were sold.

As per report, with some weakness in the domestic construction market as well as the arrival of Isdemir output later in Q3, Erdemir will be a more active supplier to the export market for the rest of the year and may have to be more aggressive in its discounting.

BHEL bags USD 485 million thermal power contract in Syria

It is reported that Indian power equipment giant Bharat Heavy Electricals Limited has received a contract worth USD 485 million from Public Establishment of Electricity for Generation & Transmission of Syrian ministry of electricity for a 400 MW Tishreen thermal power plant extension project.

BHEL's scope of work in the contract includes design, engineering, manufacture, supply, erection and commissioning of main plant equipment with associated auxiliaries, balance of plant & electricals, besides state of the art controls & instrumentation and civil works.

The work order is expected to be completed in 33 months.

Iranian mineral exports exceed USD 2 billion in 2 months

Mehr News Agency reported that Iran has exported USD 2.185 billion mineral and industrial products in the first 2 months of the current Iranian year. According to the ministry of industries & mines, the ratio of mineral industrial exports to non oil exports in the mentioned period has been 88.8% YoY.

As per report, during this period 81.1% of the total mine and industry exports were in four groups of mine products worth USD 748.8 million over 34.3%, chemical industry products USD 677.3 million over 31% regular metals USD 183.6 million over 8.3% and plastic material USD163.8 million and 7.5% of the total amount.

In the aforementioned period the highest volume of exports went to 5 countries namely UAE, China, Iraq, India and Japan.

Sumitomo becomes lowest bidder for Ras Azzour IWPP tender

It is reported that the Sumitomo Consortium has offered the lowest bid at the bid opening session on June 29th 2008. Sumitomo Corporation participated in the Ras Azzour IWPP tender in Saudi Arabia which closing date was June 28th 2008 jointly with Malaysian independent power project developer Malakoff Corporation Berhad and Saudi Arabian conglomerate Al Jomaih Automotive Company.

As per report, the project involves the newly construction of a crude oil firing conventional thermal power plant with a capacity of 850 to 1,100 MW and a desalination plant with a daily capacity of 1 million tonnes at Ras Azzour located in the eastern part of Saudi Arabia the operation of the new power and desalination plant and the sale of electricity and water to Water & Electricity Company under Ministry of Water & Electricity of Saudi Arabia for a duration of 20 years.

The total project cost is estimated approximately USD 6 billion including the cost of constructing a new facility. The Sumitomo Consortium will start negotiation with the Saudi Arabian government and target to sign the power and water purchase agreement with WEC to sign the EPC contract with the contractors and to conclude the loan agreement with the international banks by the end of fiscal year 2008.

The new plant is scheduled to be completed and start the commercial operation in the summer of 2012.

UASC place order for 9 ships with Samsung Heavy

United Arab Shipping Company has announced that the signing of a new building contract for nine 13,100 TEUS ships with Samsung Heavy Industries. The contract constitutes the biggest containership new building order ever placed by a GCC owned company and is valued in excess of USD 1.5 billion.

As per report, the first of the 9th sisters will be delivered to UASC in October of 2010 and the rest will follow in short order with the last vessel being delivered in the 4th Quarter of 2011.

Mr Sheikh Ali Al Thani chairman of board of directors of UASC said that "I welcome Samsung Heavy Industries represented by Mr Jing Wan Kim president & CEO to Dubai to sign this important contract. We are very happy to have chosen Samsung Heavy Industries to build these very large container ships for UASC. You were chosen from a long list of highly reputed and skilled shipbuilders and the contract before us is the fruit of long and hard negotiations between our two companies. I wish to thank you and your team for the professional attitude shown throughout this process and feel comfortable that our order is in good hands. Your reputation for high quality and on time delivery precedes you."

UASC currently operates a fleet of 41 fully cellular container vessels with 3 more being delivered still in this year and 10 more in 2009 by the time the 9th A13 have been delivered the fleet will comprise more than 60 modern container ships able to carry approximately 270,000 TEUS.

Iran to privatize 230 state run companies by mid March

Mehr News Agency quoted Mr Gholamreza Kord Zanganeh chairman of the Iranian Privatization Organization as saying that 230 state run companies will be privatized by the end of current Iranian calendar year.

He said that the shares of 177 companies were offered in Tehran Stock Exchange in last Iranian year noting that the country’s stock exchange value has been doubled within the past 1.5 years increasing from USD 33 billion to more than USD60 billion.

Oman Cables and Takamul set up OAPIL

It is reported that Oman Aluminum Processing will sign an agreement today covering the purchase of hot metal as feedstock from Sohar Aluminum for its proposed downstream project at Sohar.

OAPIL is 51% owned Oman Cables Industry SAOG a leading manufacturer and exporter of high quality cables while Takamul Investment Company an investment vehicle promoted by the state owned Oman Oil Company has a 49% stake.

Today’s agreement will mark a new milestone in OAPIL’s plans to develop a 48,000 tonnes per year capacity aluminum rod and electrical conduction manufacturing plant in Sohar. The state of the art plant, which will be built in a special Metals Park within Sohar Industrial Estate will be the first of its kind in the Sultanate.

OAPIL is the latest in a series of new downstream projects that will benefit from the supply of hot metal from Sohar Aluminum’s newly commissioned USD 2.4 billion smelter at Sohar. The JV is expected to formalize a deal for the supply of feedstock from Sohar Aluminum for the next 10 years.

Earlier in March 2008, Takamul’s first investment venture, Salzburg Aluminum Sohar LLC commenced production of aluminum busbars at its Sohar facility Takamul formalized a partnership with India’s Future Metals Private Limited to set up an aluminum rods extrusion plant at Sohar with hot metal feedstock from Sohar Aluminum.

Backed by Austria’s Salzburg AG which has a 70% stake in SAG Sohar, the factory’s annual output of 25,000 tonnes is earmarked for under-construction smelters in the region and around the world. Sohar Aluminum, the main feedstock supplier for these projects has pledged up to 60% of its total liquid metal output of its 350,000 tonnes per year for downstream industries.

Sohar Power to open IPO for subscription soon

According to the company’s prospectus the initial public offering of independent power producer, Sohar Power Company will open for subscription. SPC is offering 9.73 million shares at an offer price of OMR 1.370 per share which include a nominal value of OMR 1 and a premium of 350 baisa.

The minimum application should be for 100 shares and thereafter multiples of 100. BankMuscat is the issue manager and financial adviser for SPC’s IPO which will close subscription on July 31st 2008. The promoters of SPC including Suez Tractebel are divesting 35% of their holding in the company which has a paid up capital of OMR 27.3 million.

As per report, the OMR 13.33 million worth share offer of Sohar Power which is open for both Omanis and foreigners is for complying with a contractual commitment with the government.

As per report Omani shareholders of SPC include National Trading Company, Zubair Corporation, .WJ Towell & Co, Ministry of Defense Pension Fund and Sogex Oman. STPR is diluting 10% of their holding in SPC while Omani partners are divesting 5% each in the power company. The power project meets the energy needs of northern Oman especially from large gas-based ventures coming up in Sohar.

Presently, SPC is 55% owned by Suez group, Belgium’s top utility company through its wholly owned subsidiary Suez Tractebel Parts and Repairs FZE. Suez Tractebel is one of the world’s top independent power producers with a power generating capacity running to over 30,000 MW and operations in more than 100 countries.

The project consists of a 585 MW combined cycle gas fired power plant and 33 million gallons a day water desalination plant. The first phase with a generation capacity of 360 MW started operations since April 2006, while the second phase was commissioned a year later. It was funded by a syndicate of international and local banks. SPC took USD 620 million term loan from lending institutions. The financing package consisted of USD 549.89 million facility and OMR 27 million performance bond facility from a local bank.

DTZ Qatar named leasing agents for Tornado Tower

Mr Said Abu Odeh director of operations and business development at Qatar Investment Projects & Development Holding Company said that DTZ Qatar, a part of the DTZ International Group of Companies, has been appointed as the sole leasing agents for the Tornado Tower. He added that “DTZ were appointed based on their extensive experience of leasing commercial office space as well as for their in depth knowledge of the local and regional market.”

As per report, the tower provides state of the art business accommodation including flexible floor plates a specially designed lighting system on the façade created by well known light artist Mr Thomas Emde 24 hour security access, high speed lifts, ample car parking over three covered basement levels and exclusive facilities such as a fine dining restaurant and a health club.

Mr Nick Witty deputy MD of DTZ’s Middle East Operations said that “We are absolutely delighted to be involved in a project of this caliber Tornado Tower has been designed to the highest international standards with the needs of the occupier in mind. The many smart features and various amenities make this tower one of the best commercial schemes in Qatar.”

Tornado Tower located in West Bay offers 58,029 square meter of office accommodation Qatar incorporating high quality finishes throughout the building which has been designed by Munich based architects SIAT CICO JV.

Emaar and Capri to develop SAR 7.5 billion mixed use project

Khaleej Times reported that Emaar Economic City has entered into a partnership with Capri Capital Partners to develop a SAR 7.5 billion mixed use project in the King Abdullah Economic City.

Mr Joseph Kilar COO of Emaar EC and Mr Quintin E Primo III chairman & CEO of Capri Capital Partners have signed the agreement in Jeddah recently making Capri the first international real estate investment firm to develop a mixed use project within KAEC.

As per report, the 200,000 square meters project will feature two luxury five star hotels premium office towers a retail center condominium towers and a world class convention centre and adjoining hotel. Capri is currently in negotiations with the parent companies of the Waldorf Astoria and St Regis hotels to operate the two luxury hotels. The project was one of the mega initiatives launched by Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz during his recent visit to KAEC.

Mr Kilar said that "Our partnership with Capri will lend momentum to the pace of development of King Abdullah Economic City while complementing other development initiatives underway.”

Mr Fahd Al Rasheed CEO and board member of Emaar EC said that “The partnership with Capri one of the world’s leading real estate firms with several prestigious projects to their credit, reiterates KAEC’s status as a global investment destination hub. This extra ordinary mixed use development is envisaged as a metropolitan style commercial, retail, residential and luxury hospitality offering.”

ONGC Videsh short listed for oil field development in Iraq

BS reported that ONGC Videsh Limited is one of 41 global oil corporations short listed by the Iraq government to develop its oil fields.

A senior official with ONGC said that "We are confident of getting one block at the minimum. There may be risks in Iraq, but you cannot afford not to be in Iran's oil sector."

China's Sinopec and CNPC are among the other short listed companies. US based ExxonMobil, Royal Dutch Shell, British Petroleum and France's Total are among others that have already been given contracts to develop several of Iraq's oil fields.

Iraq plans to offer various short and long term contracts to global oil companies through which it hopes to increase oil production to 4.5 million barrels per day by 2013 from the current 2.5 million barrels per day, which is around 3% of total world production.

Steel prices in Middle East Asia

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

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

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

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

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

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

Gulf shipping firms fuelling shortage

Gulf News reported that Gulf shipping firms are on an historic buying spree for new ships that is raising fears of a looming glut on the high seas.

The latest this week was a USD 1.5 billion AED 5.5 billion order from United Arab Shipping Company, which is jointly owned by several Gulf countries, for nine large container vessels. The order is reportedly the fourth largest ever made in the shipping industry.

Surging global trade and intense demand for commodities such as iron ore, coal and grains is straining the current fleet of container and dry bulk ships worldwide. The global commodity boom has sent daily hire rates for ships to record highs, pushing orders for new ships to unprecedented levels.

UASC said its order was motivated by the need to cut fuel costs and match the investments of its rivals in the cut throat container ship business.

Mr Jorn Hinge deputy CEO of UASC said that “There is always a risk for overcapacity. But if you don’t participate with the same assets, it is difficult to compete in the long run.”

UASC’s new ships are due to be delivered in late 2011 and used between Asia and Europe, where strong growth helped global container trade rise 20% in 2007.

Encouraged by the growth of regional ports such as Jebel Ali, and the oil boom that has brought prosperity throughout the region, shipping firms based in the UAE have opened their wallets in record numbers.

Mr Scott Jones CEO of Emirates Ship Investment Company said that “There are probably about 3 or 4 shipping companies that have placed billion dollar orders in the last 12 months alone.”

Eships’s investment profile is much lower, with USD 175 million worth of orders for a converted transshipment vessel and small liquefied petroleum gas tankers. The record orders have created an extraordinary backlog. New dry bulk carriers are on order for an overall capacity of 253 million DWT or 60% of the current capacity on the water.

The record orders have created concerns in an industry that has long suffered from boom and bust business cycles. Some worry tha