Input material prices in Mumbai see major correction

Mumbai

Price in INR per tonne
Including RD and VAT
Delivery FOT

(Sourced from www.steelprices-india.com)

ArcelorMittal applies for land in Jharkhand

PTI reported that ArcelorMittal has requisitioned over 11,000 acres of land from Jharkhand Government for setting up its proposed steel plant and resettlement colony in the State. The move comes within days of the Jharkhand Government announcing it’s much awaited Rehabilitation and Resettlement Policy.

S per report, ArcelorMittal has applied for about 8,800 acres for its steel plant and over 2,400 acres for the resettlement colony.

Mr KK Khandelwal secretary of industries department of Jharkhand told PTI that "The company has applied for land to the deputy commissioners of Gumla and Khunti districts, where it proposes to set up the plant.”

Official sources said nearly 75% of the land requisitioned by ArcelorMittal belongs to private owners spanned across 14 villages, while the rest is owned by the government. Official added ArcelorMittal has managed to skip the entire forest area falling in the vicinity of its proposed project site.

Long product prices see major dip in Mumbai

Price in INR per tonne
Including RD and VAT
Delivery FOT

(Sourced from www.steelprices-india.com)

ISPI - Barometer for steel price trends in India

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.
Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media’s most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

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

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

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

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

Rebar prices crash by INR 2000 per tonne in NCR in last 2 days

New Delhi and NCR

Price in INR per tonne
Including RD and VAT
Delivery FOT

(Sourced from www.steelprices-india.com)

Flat product prices show mixed trend in Mumbai

Price in INR per tonne
Including RD and VAT
Delivery FOT

(Sourced from www.steelprices-india.com)

Bhushan Steel Limited Q1 net up by 35.19% YoY

Bhushan Steel Limited reported a substantial rise in standalone net profit for the quarter ended June 2008. During the quarter, the profit of the company rose 35.19% to INR 1,326.80 million from INR 981.40 million in the same quarter last year.

The company posted earnings of INR 31.24 a share during the quarter, registering 35.18% growth over previous year period. Net sales for the quarter jumped 40.70% to INR 13,197.90 million, while total income for the quarter rose 36.61% to INR 13,213.50 million, when compared with the prior year period.

(In INR million)

Bhushan Steel said that during the quarter, interest cost increased 3.84 times to INR 556.30 million while depreciation cost rose 17.29% to INR 529.90 million over previous year period.

Adityapur based auto ancillaries facing steel price pressures

The telegraph reported that sheet metal units based in the Adityapur Industrial Area and are facing the brunt of increasing prices of steel.

In the last 3 months, 2 units have downed shutters and more are expected to follow if market fails to improve in the near future. While Prakash Industries closed down 3 months back, another sheet metal based industry, Manjeet Auto closed down recently. But there are 50 other units who could be headed that way if things don’t improve.

Adityapur Small Industries Association sources claimed the number of sheet metal industries that have closed down in recent months could be more than a couple. Many small units located there had already opted out due to rising costs of raw material.

As per the report, most of the sheet metal based industries their products are used by automobile manufacturers in Adityapur are TATA Motors’ ancillaries. The annual production turnover of this industry stands at around INR 250 crore.

Mr Bikas Mukherjee industrialist & founder of the Singhbhum Industries Association said that “The price rise has been consistent and frequent leading to loses in most of the units. It is tough for manufacturers to get corresponding hikes from consumers on finished goods when there is such frequent hikes in cost of raw material. Any further rise in prices of sheet metal will add to the woes of the sheet metal industry here.”

Mr Gurdas Rai the association general secretary said that “We are only aware of units registered with us. There may be many small units in the region that were not able to bear the brunt of rising prices and have downed their shutters. This apart, big players like Caparo have also entered the field.”

L&T Q1 profit up by 33%

Larsen & Toubro, India’s biggest engineering company, said that its Q1 profit rose by 33% YoY as the oil-rich West Asian nations invested in factories, roads, ports and refineries.

L&T in a statement said that its net profit in the three months ended June 30th 2008 climbed to INR 502 crore or from INR 377 crore and sales rose by 53% to INR 6,900 crore. L&T said that its segment profitability has improved during the quarter in line with the higher margins realized on the company’s major business lines. Profit after Tax for the quarter at INR 502 crore grew by 33% YoY.

L&T’s Engineering & Construction Segment reported healthy growth in its Order Inflows during the quarter at INR 10516 crore registering an increase of 28% over the corresponding quarter of the previous year. The share of international orders booked during the quarter was 13% of the segment’s total Order Inflow. E &C segment sales for the quarter ended June 30th 2008 at INR 5545 crore grew by 59% YoY.

L&T’s Electrical & Electronics Segment reported a modest growth in its Order Inflows and Sales, despite the sluggish demand prevailing during the quarter. The segment sales revenue at INR 578 crore for the quarter increased by 7% YoY.

L&T’s Machinery & Industrial Products Segment achieved gross sales of INR 634 crore during the quarter, registering a healthy increase of 50% over the corresponding quarter of the previous year. The segment realized higher operating margins for the quarter due to improved performance by Valves, Industrial Machinery & Welding Systems businesses. Construction & Mining Equipment business continued to perform well during the current quarter.

L&T said that the robust order book of the Company provides healthy sales growth visibility over the next 1 to 2 years. Considering the importance of sustaining investments in critical sectors like infrastructure, power, hydrocarbon etc., the Company is optimistic of achieving growth in order inflows in the near to medium term. The Company will continue to look out for investment in growth enhancing opportunities. The Company’s focus on strategies and measures to counter inflation and changing economic conditions are expected to help sustain the profitability of its various businesses.

Indian Steel: Opportunities and Strategic Options

The new report on Indian steel from Steel and Natural Resources Research, authored by Dr AS Firoz, Strategy Consultant, comes out with findings completely different from the popular growth stories told about the short and mid term potential of steel demand growth in the country. The report, yet to be officially released, blames much of it to the uncertainty in the policy regime and deep structural weakness in the economy.

The report says that India may see a drop in steel demand in the coming two years. The annual growth rates in finished steel consumption are likely to be 5.5% in 2008-09 and about 4.5% in 2009-10. This is in sharp contrast to the forecasts made earlier when growth rates were expected in the range of 9% to 12% for these two years. Demand growth for stainless and alloy steel also will remain far below potential. The study has predicted significant change in the structure of the market in the next 10 years from the earlier forecast scenarios with changes in the growth trends for specific products.

The report further goes on to project a rather pessimistic scenario in respect of production growth as new projects start ups have been significantly delayed. While the Brownfield expansion projects of the private companies and RINL are on course, SAIL, the study finds, is way behind the schedule.

The new supply and demand conditions in the market will leave their expected impact on the external trade. Imports will remain far above exports this year, but, the situation will start changing from 2009-10. Exports of steel, especially flat products will sharply rise to turn the country into a net exporter of steel once again.

The study forecasts prices of steel to come under pressure with weakening of demand and not so much due to government actions. With rising costs of coking coal, the integrated mills will see their margins eroding. Higher costs of other inputs such as iron ore, non-coking coal and ferroalloys will hit the secondary sector hard.

The steel companies will also find it hard to mobilize resources for their new projects, the report concludes.

130 pages with more than 70 charts and tables

Scheduled for release on 1st September 2008

Price on release: USD 5000 or equivalent in INR

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

You can order your copy to reports@steelguru.com

Essar Power plans 500 MW power plant in Bhutan

It is reported that Essar Power is planning to set up a 500 MW hydel power plant in Bhutan on BOOT basis or is likely to jointly do it with the Bhutan government. The project is estimated cost of over INR 4,000 crore.

As per report, the foreign direct investment rules in Bhutan allow any overseas firm to set up a wholly owned company for implementation of a large size power project. But the Bhutanese government is likely to be interested in keeping a minority stake in the proposed project.

The report added that in that case, Druk Holding and Investment will be the investment vehicle for the Bhutanese government and Essar's fund infusion will depend on the equity structure of the project.

Orissa to approve 3 aluminum projects

SNS reported that three project proposals including aluminum smelter and captive power plant by NALCO were cleared by a committee headed by Mr Ajit Tripathy chief secretary of Orissa. As per report, these proposals will now be put up to the high level committee headed by chief minister for his final approval.

The projects include a joint venture between Dubal Alumina Company & L&T, NALCO and RSB Metal Tech Pvt Ltd. A ferromanganese plant proposal of Bajaj Steel & Industry was also cleared.

Few other aluminum project proposals including that of the IMFA Group which had made a presentation since long, did not figure at the meeting.

Briefing reporters, Mr Tripathy said that "The Dubal Aluminum Company and L&T propose to set up a 3 million tonne alumina plant in Rayagada district and a 0.44 million tonne capacity aluminum and captive power plant of 1080 MW at Jharsuguda. It involves an investment of 19,668 crore and will provide employment to over 11,000 people.”

He informed that "Nalco is to set up a smelter of 0.5 million tonne per annum capacity at Brajrajnagar and a captive power plant of 1260 MW with a total investment of over INR 16,345 crore.”

The RSB MetalTech Pvt Ltd intends to invest INR 680 crore in setting up a alumina plant in Rayagada district as well as a smelter and captive power plant in Dhenkanal district.

Indian Steelmakers Directory 2008

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

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

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

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

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

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

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

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

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

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

You can order your copy to reports@steelguru.com

Operations at Gangavaram port may begin in August

BL reported that Krishnapatnam port it is the turn of the Gangavaram port near Visakhapatnam to begin commercial operations. The multi purpose port that could handle ships of 200,000 DWT is being taken up in a public private partnership mode.

The phase 1 of the project would go on stream with 5 berths with an annual capacity of 35 million tonnes. Of the 5 berths, 3 would be handling general cargo and one each for iron ore and coal. This would be the second port after Krishnapatnam that could handle mother ships giving a boost to the East Coast’s shipping strengths.

As per report, the Greenfield Gangavaram port was to start commercial operations well ahead of Krishnapatnam port. But issues such as rehabilitation and weather have pushed it back.

A senior government official said that Mr DVS Raju and others held 64%, Warberg Pincus the global private equity investment firm had 25% the Andhra Pradesh Government picked 11%.

The INR 2,600 crore phase 2 work for which work had begun simultaneously would have 9 berths more giving the port a capacity of 75 million tonnes.

Monnet Ispat Q1 net up by 52% YoY

It is reported that Monnet Ispat & Energy Limited reported a net profit of INR 70.32 crore for the Q1 of the current fiscal up by 52.7% YoY as compared to INR 46.04 crore recorded in the same quarter last fiscal. The company’s total income was INR 383.30 crore up by 61% YoY.

The report added that Monnet Ispat & Energy Limited MIEL has taken over the management control of Chhattisgarh based Rameshwaram Steel & Power Private Limited by acquiring 97% equity at a cost of INR 36.13 crore besides taking over liabilities of INR 49 crore.

According to Mr Sandeep Jajodia vice chairman & MD of Monnet Ispat & Energy Limited, “In the coming years, the company will be more focused on the energy business. In the future, 55% of the revenues will come from the energy business and the rest from steel.”

As per the report, Monnet has increased its total power generation capacity for captive use to 150 MW during the quarter and added another 0.50 million tonnes of sponge iron capacity during the period making it the second largest coal based sponge iron producer in the country.

Cochin Shipyard executing project on vessel conversion

BL reported that the public sector Cochin Shipyard Limited is at present executing a project for converting a fishing vessel into a seismic survey ship.

The work is for a Norwegian oil exploration firm based in Singapore and the scheduled delivery of the ship will be by the end of September.

CSL official said that the vessel will be used for under sea oil exploration and this is the first time that an Indian yard is constructing such a vessel. They said that the prospects for building conversion of this type of vessels are very high in the future and CSL is hopeful of getting more such contracts in the near future.

The seismic survey ships are equipped to detect large scale geological characteristics of seabed and are helpful in exploration of oil and natural gas. The vessels are used by major oil companies to analyze the waves in the seabed to detect petroleum resources.

Teesta power units synchronized with grid

BL reported, the two of Teesta Stage V Power Station at Balutar in East Sikkim units were synchronized with the grid at 7:15 PM on July 25th 2008 and the third one was synchronized at 9 AM on July 26th 2008.

A press release said that heavy rain accompanied by abnormally high levels of silt in the river water, in May, June and early July, had compelled complete shut down of the power station from June 12th 2008. It also said that the silt deposition altered the course of river and caused damage to the river banks at various places in and around the Dikchu town.

The release said that the repair work has been undertaken on a war footing and has been completed within shortest possible time keeping in mind the requirements of the local people.

According to the release, the second phase of the repairs, to further increase the height of the protection walls, will be taken up soon to take care of the safety and security of the people living in and around the Dikchu and Fidang villages.

Bharati Shipyard Q1 net up by 33.5% YoY

It is reported that India's Bharati Shipyard Limited posted a 33.5% YoY increased in Q1 net profit, benefiting from the performance of its Dabhol Greenfield shipyard and has won a repeat UAS 67.86 million order from Norwegian Offshore Shipping I Limited.

Bharati Shipyard in a statement said that for the June quarter, the shipbuilding company's net profit increased to INR 296.8 million from 222.3 million a year earlier, while total revenues grew 39.5% YoY to INR 2.05 billion. Its order book stood at INR 48.7 billion comprising 51 vessels.

BOC India registers growth of 27.5% in January to June

BOC India reported a turnover of INR 287.25 crores for the H1 year registering a growth of 27.5%. The net profit for the same period was INR 42.71 crores. Results for its quarter ending June 2008 were also up significantly with the turnover at INR 145.9 crores and a net profit of INR 16.9 crores. The Company reported that it saw growth across all its businesses with significant growth coming in from strong sales to Steel, Automobile Ancillaries and Healthcare markets.

According the release, during the second quarter ended June 30th 2008 it recorded a turnover of INR 145.9 crores as against a turnover of INR 106.8 crores for the same quarter in the previous year. During the quarter under review, the total turnover of the Gases business segment was up by 24% driven by strong growth in all the segments. Increased focus on current projects in the Projects Engineering Division led to a substantial growth in the turnover during the current quarter when compared to the period ended June 30th 2007.

Mr Srikumar Menon finance director of BOC India Limited said that "The opportunities pursued in the new sectors have begun to show encouraging results. These have been ably complemented by the strong growth in our core businesses of gas sales, solutions and engineering."

The release added that the division has also focused on construction of the 1800 tonnes per day ASU at Bellary which is scheduled to be commissioned by the Q4 of this year.

Sterlite Industries Q1 net up 77.66%

It is reported that Sterlite Industries India Limited has posted a net profit of INR 357.93 crore for the Q1 ended June 30th 2008 as compared with INR 201.46 crore during the same quarter in 2007.

The reported added that Sterlite Industries India Limited total income for the quarter has decreased to INR 3,142.60 crore from INR 3165.85 crore in the same period last year.

Nippon Steel restarts Yawata BF after blaze

Bloomberg reported that Nippon Steel Corp has restarted the blast furnace at its Yawata works at 7 AM in Japan's Fukuoka prefecture after shutting it yesterday because of a fire.

Steel production was halted at Nippon Steel Corp's Yawata Works complex in Kitakyushu when a fire broke out Tuesday morning at several points along a gas pipe outside a coke factory.

According to a Yawata Works official, the blaze, which broke out around 6:45 AM, did not spread to the building and no injuries were reported. Police said they believe that a conveyor belt about 30 meters high fell and damaged the gas pipe, leading to the fire. The conveyor belt was used to transfer coal into the furnace.

US Steel posts double net profit for Q2

United States Steel Corporation announced that its net income more than doubled in the second quarter, as increased demand and higher prices pushed the company's financial results to historic highs.

Its second quarter net income soared to USD 668 million up from USD 302 million in the year ago quarter. Revenue was up by 60% YoY to USD 6.74 billion from USD 4.22 billion in the second quarter of last year.

Mr John P. Surma chairman and CEO of US Steel said that “We recorded the highest quarterly sales and net income in US Steel's history during the second quarter as all three reportable segments posted record results, reflecting strong operating performance and favorable global pricing dynamics."

US steel imports in June dip by 12.3% YoY

AIIS reported that based on preliminary reporting total US steel imports in June 2008 were 2.67 million tons as compared to 2.5 million tons in May 2008 up by 6.9% MoM but down by 2.3% YoY. The data show that imported semi finished products decreased by 4.7% YoY in June 2008 as compared to June 2007.

According to year to date figures, imports decreased 10.9% compared to 2007 or from 17.82 million tons in 2007 to 15.87 million tons in 2008. For the year to date period, semi finished imports decreased from 3.30 million tons in 2007 to 3.29 million tons in 2008, a 0.5% decrease.

In ‘000 short tons

In ‘000 short tons

Mr Dave Phelps president of AIIS said “Imports arrived in the US markets at a modest pace in June, as the factors limiting imports strong markets overseas, high freight rates and the weak dollar continued to impede the import side of supply.”

He said that “June arrivals kept pace with the overall average for the first half of the year, around 31 million tons to 32 million tons annualized.”

Mr Phelps added that “In the context of high prices, the domestic industries strong profitability along with more price increases announced for September for some products, recent decisions on injury under our trade laws are suspect. This is an industry that does not need protection. Trade cases against steel serve only to endanger further steel consumers’ viability. High and rising prices in the US market for some products suggest that conditions for imports could improve later in the year.”

Pig iron prices show downward trend - Report

It is reported that, suffering from the dropping steel scrap prices, international pig iron prices are following along in the downward slide.

Taiwan mills are currently receiving quotations of about USD 900 per tonne CNF Taiwan port. This is about USD 100 per tonne lower than the previous peak price level of USD 1,000 per tonne.

However, Taiwan mills have expressed their view that the price is still too high to buy and they are adopting a wait and see attitude, in expectation that the price will keep falling.

(Sourced from Yieh.com)

Ecuador inks JV with Venezuela for steel supply

It is reported that Ecuador is planning to set up a JV with Venezuela for supplying steel.

Mr Hugo Chavez President of Venezuela said that "In Venezuela there are iron and steel. Let us make another JV could be called Aceros del Sur, it is necessary."

The move is being made in order to cope with exorbitant global steel price. They hope to supply steel at a favorable price by controlling cost through leaguing.

Decision on Kremikovtsi insolvency case in 2 weeks

Sofia District Court has announced that it would make the decision about the insolvency case of Kremikovtsi in 14 days.

During the Court's session one of the lawyers of the side that has requested declaring the mill insolvent stated that Kremikovtsi had debts in the amount of over BGL 1 billion.

Bulgaria's economy minister had stated Monday that he was expecting approval of the mill's insolvency by the Court, which will finally make the sale of 71% of the mill to an strategic investor possible. At the same time the trade unions at the mill have once again declared that they supported the insolvency as the better solution for the future of the mill.

According to trade union representatives the postponing of the insolvency case would lead to the closure of the mill because such postponement would further delay the issuing of a complex environmental permit for Kremikovtzi. The deadline for the permit is October 23rd 2008.

The insolvency claim has been filed with the Court by one of the companies of the Ukrainian businessman Mr Konstantyn Zhevago along with several other businesses.

In addition, last week Kremikovtzi shareholders won their case in London and with that the mill's loan of EUR 325 million plus interest becomes immediately due, making Kremikovtzi total debt over BGL 2 billion.

US H1 scrap exports soar by 68.3% YoY in 5 months

US H1 scrap exports totaled 2.178 million tons from January to May 2007 period up by 68.3% YoY.

Among them, Turkey was the main export destination with 806,000 tons with an increase of 24.8% YoY. Shipments to South Korea reached 416,000 tons, a 2.4 times higher. Moreover, Taiwan increased its imports of American H1 scrap by 2.2 times, at 209,000 tons.

US Steel takes Mr Sutherland on board

United States Steel Corporation announced that Mr David S Sutherland has been elected to the company's board of directors to serve as a Class II director until the next Annual Meeting of Stockholders, which is expected to be held on April 28th 2009.

Mr. Sutherland, 59, retired as president and CEO of the former IPSCO Inc, a leading North American steel producer, in July 2007 after spending 30 years with the company and more than five as President and CEO.

Mr. Sutherland is a former chairman of the American Iron and Steel Institute and served as a member of the board of directors of the Steel Manufacturers Association, the International Iron and Steel Institute, the Canadian Steel Producers Association and the National Association of Manufacturers.

A native of Moose Jaw, Saskatchewan, Mr. Sutherland earned a Bachelor of Commerce degree from the University of Saskatchewan and a master's degree in business administration from the University of Pittsburgh's Katz Graduate School of Business.

Tenaris established solid presence in Colombia

It is reported that 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.

China influencing global trends for steel

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

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

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

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

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

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

US flat rolled steel prices edge up a bit

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.

(Sourced from Platts.com)

Cognex Corp secures multi million 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 auto parts 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.

Commercial construction may get worse in US - 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.

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 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.

Sumitomo Q2 profit up by 52% YoY

Sumitomo Corporation has posted a profit of JPY 78.1 billion in March to June 2008 quarter up by 52% YoY as against JPY 51.4 billion in March to June 2007 quarter as demand rose for metals, construction equipment and ship leasing.

Sumitomo is benefiting from stakes in overseas coking coal, copper, nickel and manganese mines as demand in China and the Middle East drives up prices. Surging global steel production forced Asian mills to pay threefold more for coking coal in the year started April while prices for iron ore almost doubled.

Net income at the mineral resources and energy unit led gains, soaring more than fivefold to JPY 16.9 billion. Australian coal and Indonesian copper projects contributed to the gains, and the company had reported a JPY 14 billion evaluation loss on hedging in the first quarter last year.

Profit at the metals products unit jumped by 28% YoY to JPY 9.5 billion in the quarter from a year earlier. Transportation and construction systems increased by 15% YoY to JPY 9.2 billion, while infrastructure gained 11% YoY to JPY 5 billion.

Australian Steel Design Awards winners announced

The winners of the Australian Steel Design Awards for Victoria and Tasmania were announced on July 25th 2008 at the Crown Palladium.

The Steel Fabricators Award was won by Structural Challenge for their entry on the new Nigel Peck Centre for Learning, while the PlanIT Design Group got the Steel Detailers Award for their Melbourne Convention Centre redevelopment.

The Architectural Steel Design Award for a Large Project went to Cox Architects & Planners’ entry on the National Institute of Circus Arts building, while the Small Project category was won by Studio D’Ambrosio for their Under the Moonlight House at Mount Hotham.

The Structural Engineering Steel Design award was given to the Connell Wagner submission for Stage Two of the Melbourne Sports and Aquatic Centre. The Metal Building Product Design Award was won by Suters Prior Cheney Architect’s Boroondara Sports Complex.

The awards are part of the first ever national steel awards program held by the Australian Steel Institute. The awards aim at highlighting the standard of design and execution achievable with the aesthetics of steel and the Australian industry’s capabilities and efficiencies. The state awards were presented in seven categories.

US weekly crude steel production up by 4.1% YoY

American Iron & Steel Industries reported that in the week ending July 26th 2008, US’s raw steel production was 2.142 million net tons while the capability utilization rate was 89.8%. Production was 2.059 million net tons in the week ending July 26th 2007, while the capability utilization then was 87%. The current week production represents 4.1% YoY increase from the same period in 2007.

Production for the week ending July 26th 2008 is up by 1.4% from the previous week ending July 19th 2008 when production was 2.114 million net tons and the rate of capability utilization was 88.6%

Adjusted YTD production through July 26th 2008 was 62.842 million net tons at a capability utilization rate of 88.6%. That is a 2.5% increase from the 61.353 million net tons during the same period last year, when the capability utilization rate was 85.9%.

District wise production for the week ending June 26th 2008
1. Northeast Coast: 181
2. Pittsburgh/Youngstown: 215
3. Lake Erie: 93
4. Detroit: 108
5. Indiana/Chicago: 504
6. Midwest: 265
7. Southern: 679
8. Western: 97
(In thousands of net tons)

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

Japan nonferrous metals CAPEX up by 34% in F2008

Japanese nonferrous metals industry increases the capital expenditure by 34.3% YoY to JPY 310.34 billion for fiscal 2008 started April from fiscal 2007. The industry increases the expenditure for smelting, aluminum, rolled copper and electric wire.

South Korea to cancel import tariffs on aluminum ingot

The South Korean government has announced to abolish import tariffs on aluminum ingot from August 2008.

It is the second time that the government is trying to lower prices of such imported materials amid rising commodity prices in global markets. South Korean aluminum ingot import tariff is 1%.

But it has remained import duties of 1% on crude oil and liquefied natural gas in an effort to curb energy consumption and fears of reduction of the government's tax revenues.

The ministry of strategy & finance said in a statement that the tariff removal will cost the government around KRW 150 billion.

Alcasa reactivates furnace for recycled material

BNamericas reported that Venezuelan aluminum reducer Alcasa has reactivated a furnace for smelting recycled material which was only operating at half speed.

A spokesperson of Alcasa said that "Employees rebuilt the furnace and saved the company a huge amount of money. The rebuilt furnace will be able to smelt 45 tonnes per months of recyclable material. And it will start being used for what it was made to do take advantage of aluminum waste that was being lost."

In mid July 2008, Alcasa reached full installed capacity of 207 tonnes per day on production line 3 by getting all 180 of its cells operating. The line produced 70,606 tonnes of aluminum in 2007. It churned out 180,086 tonnes of aluminum in 2007. Sales came to 175,644 tonnes including 110,383 tonnes to the domestic market and 65,261 tonnes for export.

Alcasa is 92% owned by state heavy industry holding company CVG and the remaining 8% is in the hands of US based Alcoa.

GrafTech Q2 2008 profit beats market estimates

Graphite electrodes manufacturer GrafTech International Limited has posted a better than expected quarterly profit, helped by growth in both its segments, and raised its full year revenue outlook, citing solid demand from its steel end markets.

GrafTech’s for the March to June 2008 quarter, net income was USD 53.7 million as compared with USD 65.0 million in the year ago period. Revenue rose by about 25% YoY to USD 319.5 million, coming above analysts' average expectation of USD 296.6 million. Sales at the engineered solutions segment grew by 27% YoY, while revenue for the industrial materials segment rose by 25% YoY.

For the full year, the company forecast a sales growth of about 20% to 22%, up from its prior estimate of 16% to 18%. Analysts were expecting USD 1.18 billion. GrafTech posted revenue of USD 1 billion for fiscal 2007. It sees operating income growth of about USD 320 million to USD 330 million, up from its prior forecast of USD 310 million to USD 320 million.

OneSteel Market Mills opens Constistretch facility at Mayfield

It is reported that the opening of OneSteel Market Mills Constistretch facility at Mayfield will deliver the company’s steel in concrete customers an improved and safer product.

Mr John Barbagello business GM of OneSteel Market Mills said that "More than USD 10 million capital investment was originally approved on the basis of improving our value proposition to our customers and the mitigation of price fluctuations in vanadium alloy, an input in the steelmaking process. What we have ended up with, however, is a process that creates a cost effective and superior product compared to imported competition."

Mr Barbagello said that "In the Contistretch process, steel reinforcing bar is stretched to achieve the properties as specified by the Australian Standard. Prior to the introduction of this technology, we added significant alloys in our Steel making processes to achieve the same outcome. The Contistretch technology is the first of its kind in Australia and is made by renowned German manufacturer, Koch, who has installed more than 60 units worldwide."

He further added that "The development of the facility has created 16 new jobs at OneSteel, including 3 leadership roles and 13 operating roles. The initial plan is to utilize the new process on a 3 shift operation across 5 days. Under initial production estimates, the facility will produce 125,000 tonnes per annum of high quality, spooled, reinforcing bar. However, the merger of OneSteel with Smorgon has created possibilities for increased production."

POSCO eyeing No 2 spot with Gwangyang steel plant

Korea Times reported that a hot rolled steel product is under process at POSCO’s Gwangyang Plant in South Jeolla Province. Seeing the clean stream of water and 3 filled roads approaching POSCO's Gwangyang Steel Works, one may underestimate the size of what's ahead. But the massive molten steel splashing action taking place at the heart of the mill quickly overrides the preconception.

As per report, the mill, which is 5 times the size of Yeouido, houses 5 blast furnaces, 3 hot rolled and 4 cold rolled strip steel plants and 2 steel making plants, among other major production and storage facilities, with almost 7,000 workers operating machines day and night.

Having kicked off as the second of POSCO's integrated steel mills in 1982, the steel plant now outstrips Pohang Steel Works in terms of size and production capacity.

Mr Lim Jong dae the superintendent of one of two steel making plants in Gwangyang said that growth over the past two decades has been immense. He added that "The mill significantly grew in size and the realm of products it covers."

He stressed that Gwangyang's growth is positive because, unlike other steel plants, it maintains utmost safety measures and upholds strict housekeeping standards to maximize efficiency and minimize the possibility of accidents. He added that "The work can be extremely laborious at times, but POSCO workers have an incomparable pride for being part of the nation's first ever steel maker that revved up South Korea's economy.''

Most recently, POSCO announced plans to increase crude steel output by 29%, aiming to overtake Nippon Steel Corporation as the world's No 2 steel group. Production may rise from the current 31 million tonnes to 40 million tonnes in 2011. It also broke ground to build a heavy plate plant in Gwangyang.

POSCO is gearing Gwangyang's focus on manufacturing heavy plates for shipbuilding, automotive steel, high strength structure steel, API line pipe steel and other value-added strategic products. With the new plant, POSCO is targeting to beat out Japan's Nippon Steel and JFE Holdings Inc. to become the world's largest producer of heavy plates, an essential supply need for shipbuilding.

POSCO's production of heavy steel plates will rise by 38% to 7.3 million tonnes by 2011 with the new plant due for completion in July 2010. South Korea's demand for heavy plates will rise to 16 million tonnes in 2011 from 10.7 million tonnes in 2007, while the output is expected to jump by 88% YoY to 13.1 million tonnes over the same period.

Tagoloan steel plant feared to back down

It is reported that, after the temporary stoppage of Hanjin Heavy Industries & Construction Corporation's operations at the Phividec Industrial Estate in Tagoloan, Misamis Oriental, an adjacent steel plant is feared to back down.

Mr Vicente Emano vice mayor of Tagoloan is wary that the steel plant may lose their desire to continue their investment since Hanjin is their number one potential client. The steel plant is located at Nabulod in Tagoloan.

Mr Emano said that he would still push for the return of Hanjin in the province. He added that if authorized by President Mr Gloria Macapagal Arroyo, he is willing to travel to Seoul to convince the investors to proceed with the plans to put up a plant in Misamis Oriental.

He believes that Hanjin's pull out was a big loss for the province and the city. He said he would exhaust all means to bring back Hanjin.

MAL Aluminum buys 10 year concession rights in Montenegro

MAL Hungarian Aluminum has acquired 10 year concession rights for an undisclosed price to conduct bauxite exploration and extraction operations in Montenegro. It has been given access to a 17.4 square kilometers area of western Montenegro.

MAL expects to extract 150,000 tonnes of bauxite annually from the concession beginning in 2010.

Bids invited for Kuwait oil pipeline

Arabianbusiness.com reported that state owned Kuwait Oil Company invited bids from seven Grade 1 local contractors by August 19th for a contract to build a new oil pipeline.

As per the report the pre qualified companies are
1. Arabi Enertech
2. Al Khadda International General Trading & Contracting Company
3. Almeer Technical Services
4. Combined Group
5. Heavy Engineering Industries & Shipbuilding Company
6. Mechanical Engineering Contracting Company
7. United Gulf Construction Company.

Running in southeast Kuwait, the pipeline will be 3.8 kilometers long. The engineering, procurement and construction contract covers the installation of the 20 inch diameter pipeline complete with all associated civil, mechanical, piping, electrical, instrumentation, cathodic protection and corrosion monitoring works.

Keep tab on 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.

Apollo Metalex bags Hadid Hama steel plant contract in Syria

Syria Steps citing an unidentified official at Syria's Ministry of Industry reported that India's Apollo Metalex Ltd won a EUR 21.7 million (USD 34.1 million) contract to expand Syria's Hadid Hama steel plant.

The report said that the plant's annual capacity will rise to 288,000 tonnes from 65,000 tonne.

Gulf GDP to cross USD 1 trillion mark in 2008

Gulf Times reported that the combined size of Gulf Arab economies will surge past USD 1 trillion in 2008 on an oil price windfall, while non oil sectors underpin real growth above 5% across the region.

According to the poll of 14 economists the nominal GDP of Saudi Arabia, Qatar four other Gulf oil producers will mushroom by almost a third this year to USD 1.08 trillion from USD 821.1 billion in 2007 that reflects a more than tripling in nominal gross domestic product since 2002 in the world’s biggest oil exporting region.

Chinese HDG exports to Middle East to increase

It is reported that amid week domestic demand, China’s steel mills and exporters have gradually lifted exports of GI and PPGI products to the Middle Eastern region.

Currently, the price of hot dip galvanized steel sheet to Middle East from China is much lower than that from Japan.

As per report China exported some 290,000 tonne of HGI to Middle East in 2007.

China’s exports to Middle East of steel products, such as GI, PPGI, carbon steel plates and slabs, are expected to surge dramatically in September, because demand from Middle East for steel is comparatively higher than other regions.

(Sourced from YIEH.com)

GGICO acquires Quality International

Khaleej Times reported that Gulf General Investment Company has acquired Quality International Company Limited, a regional manufacturer of equipment for the oil and gas industry as part of expansion but refused to provide more details.

Mr Mohammed Abdalla Juma Al Sari MD of GGICO said that “This acquisition is part of our ongoing growth and in line with the Board of Directors' approval for acquisition."

Mr Shashi Ramakrishnan MD of Quality International said "Joining with a reputable leading group like GGICO helps us to attain our target to continue growing on a global scale."

GGICO expects a turnover of AED 500 million by 2009 for Quality International, which specializes in design, detailed engineering, procurement, fabrication, supply and site installation of pressure vessels, reactors and columns, heat exchangers and all types of tanks and tank farms, among others.

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 appeared in 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%

Gulf News reported that state owned smelter Dubai Aluminum 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 aluminum 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, aluminum 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

Trade Arabia News said that Ras Al Khaimah Free Trade Zone Authority has reported 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 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 in Iran

Mehr News Agency reported that more than EUR 2 billion will be invested to complete Shahriar refinery in the city of Tabriz. The refinery aims at increasing oil products production and improving the quality of the products.

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.”

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.”

Dana Gas and Crescent Petroleum JV to develop Kurdistan Gas City

Gulfnews reported that Gas Cities LLC, a JV between Dana Gas PJSC and its partner Crescent Petroleum recently announced that the company will develop Iraq's Kurdistan Gas City.

According to the report the Kurdistan Gas City is a major new sustainable and synergistic gas utilization industrial complex to be built over an area of 461 million square feet, designed to promote private sector investment in a variety of gas related industries to further benefit the country's citizens through mass training, creation of tens of thousands of jobs and the promotion of general economic activity.

As per the report the Kurdistan Gas City will include industrial, residential and commercial components in an integrated city, with an expected initial investment in basic infrastructure estimated at USD 3 billion, preparing the land for possession by prospective residents.

The report added that this initial investment will in turn facilitate further foreign direct investment exceeding USD 40 billion during the operations phase. The Gas City is being structured to hold over 20 varieties of world scale petrochemical and heavy manufacturing plants and hundreds of small and medium sized enterprises, served by state of the art civic facilities.

Major work commences on Dubai Trade Centre District

Dubai World Trade Centre announced the commencement of major construction work on the first phase of the Dubai Trade Centre District, the integrated commercial destination that is coming up at the heart of Dubai's business district on Shaikh Zayed Road.


With the initial excavation work now being completed, over 850,000 cubic meters of concrete is being poured into the foundations, in preparation for 2.3 million square feet of commercial office space and 135,000 square feet of ground floor retail space that will be offered in the first phase of the development.

It said that piling work on the project is also well underway with 3,000 of the 7,000 piles already in place, as Phase One of this spectacular redevelopment project that will transform the entire area surrounding the Dubai International Convention and Exhibition Centre rapidly takes shape.

Mr Helal Saeed Al Marri director General of DWTC said that "The Dubai Trade Centre District is now moving from vision to reality. It is critically important for us as master developers to build something which will not only have a major impact on business across the Middle East, but will also ensure that sustainability concepts are incorporated into every aspect of construction and development."

Statistics from the Green Building Council show that existing offices, high rises, towers and facilities are among the worst offenders when it comes to carbon dioxide emissions and resource use, accounting for 39% of CO2 emissions and 71% of electricity consumption. However, the new wave of construction and development offers the opportunity to reduce this negative impact on the environment by around 20%.

Baosteel sets up think tank for growth

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

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 Mr He Bowen GM 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.

Mr Li Haiping deputy GM of the group's listed unit said that 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 is 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.”

Fosun to build 10 million tonnes 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 and an initial capacity of 4 million tonnes is being reviewed in first phase.

If approved by the National Development & Reform Commission, it 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.

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. The price of rebar was around USD 1,050 per tonne to USD 1,070 per tonne, CFR four weeks ago.

As rebar prices are beginning to slip, consumers are adopting wait and see policy.

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.

WSP Holdings acquires Tuoketuo County Mengfeng Special Steel

WSP Holdings Limited announced that its 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 release, 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 release added that WSP China plans to spend a capital expenditure of an estimated RMB50 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.

Jinan Steel celebrates 50th anniversary

Jinan Steel commemorated its 50th anniversary on July 1st 2008.

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 tonnes.

Chinese CRC export price slip down further

It is reported that export offers for Chinese cold steel coil have seen evident drop on decreasing domestic price and weak overseas demand.

On Shanghai market, 1.0mm CR sheet by Anshan steel goes at CNY 7040 per tonne, 1.2mm to 2.0mm material at CNY 6900 per tonne down by CNY 110 per tonne and CNY 100 per tonne from last Tuesday. 1.0 CR coil by Maanshan steel drop by CNY 120 per tonne to CNY 6850 per tonne.

Export price for DC01 1.0mm CRC has dropped to USD 1120 per tonne FOB from average level of USD 1140 per tonne FOB in middle and early July. Steel producers are eager to export more cargo due to dramatic drop in domestic market price and much less trading volume.

(Sourced from MySteel.net)

Huaigang begins construction of new 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 would be able to produce 700,000 tonnes of various pipes each year after the commission. The investment in butt welded pipe project is CNY 1.3billion. The project could be able to produce 150,000 tonnes of butt submerged arc welded pipe per year in the first phase.

A 300,000 tonne butt HF welded pipe line would be commissioned in the second phase and the project would be able to produce 450,000 tons of various pipes each year. Annual sales income in Huaigang would be CNY 30 billion to 50 billion after the commission of two projects.

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.

Baosteel and BYD to step up cooperation

It is reported that Baosteel sets up cooperation with Chinese national auto enterprises via involving in new car's technical research and development and overall process services at the moment.

Baosteel now keeps a stable long term fellowship with BYD Company Ltd providing 99% of the bodywork steel for new car BYD F6-DM.

BYD is a new self owned brand which springs up in China national auto market. BYD F6-DM is a new type of car first designed for mid high segment users and therefore is high required in bodywork quality.

Liuzhou Steel 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 and export value went up by 67.14% YoY to USD 623 million, accounting for 63.06% of the total self run import and 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)

Steel export in Shandong province rebounds in June

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 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)

Sinotrans Shipping H1 net profit up by 231% YoY

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

Sinotrans Shipping Ltd revenue rose 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.

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.

Anyang Steel develops 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.

Ronggang 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.

WISCO's port built in Zhoushan

It is reported that Zhejiang Zhoushan Wugang Dock Corporation Limited was officially set up on the morning of July 28th in Hangzhou, Zhejiang, marking the Zhoushan Liangtan Island Iron Ore Transfer Terminal project has entered into the substantial operation term.

As per report, the new established company was built up jointly by Wuhan Iron & Steel Group Corp, Ninbo Port Group Limited and Zhejiang Herun Industry Group Co Ltd. The venture will invest a total of no more than CNY 2.4 billion in the large scaled iron ore transfer terminal which is projected to deal with 30 million tonnes of resources each year, including a 300,000 tonnes unloading berth, a 50,000 tonnes boat berth and two first tier stocking yards. It is expected that the first phase construction will be completed and put into service in the second half of 2009.

Mr Bai director with WISCO's publicity department said that Chinese ports are appearing straitened upon increasing imported iron ore reflecting domestic high demand. WISCO hadn't got its own transfer terminal yet before, as learned. It had to pay a higher transportation fee, with only the fine for overtime of anchoring hitting over CNY 100 million a year. Once the project is finished, the new port will help WISCO tackle its problem.

(Source: www.zj.chinanews.com.cn)

Xinjiang 80,000 tonnes seamless tube mill start operation

It is reported that Xinjiang based Xinwantong Petroleum Steel Tube Manufacturing Co Ltd has started formal operation recently filling the blank of local produced high accuracy seamless steel tubes applied in oil exploitation etc.

The mill is located in Tunhe district of Urumchi and is a private one. With total cost of CNY 150 million, the first stage project has commenced construction since last May and has completed now.

The mill can produce steel frame tube, petroleum steel tube and boiler tubes/pipes etc with different models, and have annual production capacity of 80,000 tonnes.

(Sourced from MySteel.net)

Xiangtan Steel ties up with Hyundai Heavy Industries and STX Group

It is reported that Hunan Valin Xiangtan Iron & Steel Co Ltd has signed cooperation memorandums last week with Korean Hyundai Heavy Industries and STX Group to supply 200,000 tonnes and 100,000 tonnes of ship plate respectively for them next year.

Xiangtan Steel which has tied up with the world largest shipbuilder Hyundai Heavy Industries since last year, and will provide 60,000 tonnes of ship plate for the latter this year.

Hyundai Heavy Industries will consume 5 million tonnes of ship plate next year, meanwhile, it also have large demand for pipeline steel, bars and tubes.

Xiangtan Steel now possesses two heavy plate production lines with thickness of 3.8 meters, and will churn out 0.9-1.0 million tonnes of ship plate this year. It also can produce super-class ship plate F40 independently.

The mill's steel plate production would reach 3 million tonnes next year out of which, ship plate production will exceed 1.5 million tonnes.

Baosteel shortened lead time in 2008

China Securities Journal reported that Baoshan Iron & Steel Co Ltd has shortened the lead time from this year by some 30% compared with last year's average.

As reported, the steelmaker tied up with Faw-Volkswagen in contract whole process management and largely eased the warehousing and logistics pressure through this. With Haier, Baosteel's product delivery time and the consumer’s utilization and production are almost synchronized, quickening Haier's capital turnover. A list of other consumers of Baosteel's products also benefit from the shortening of lead time.

Jigang in strategic cooperation with solar power firm

Xinhua reported that China's steel giant Jigang Group Co Ltd and solar power giant Linuo Group, both located in Shandong province, east China signed an agreement on strategic cooperation, to promote utilization of new materials and new technologies in solar power industry.

According to the report, Linuo Group and its related partiers are major stockholders of Shanghai listed Linuo Solar while Jigang Group is the parent company of Shanghai listed Jinan Steel. Earlier the two sides have cooperated in areas of solar power, organic chemical engineering and new materials.

The new strategic cooperation aims to solve problems of quality, price and development direction of major materials in the solar power industry. With the R&D experience, advanced techniques and professionals of Jigang, Linuo would conduct deep R&D in the application area of solar power materials.

Baosteel not aware of Panzhihua bid

It is reported that Baoshan Iron & Steel Co Ltd has no knowledge of any bid by the company or its parent for Panzhihua Iron and Steel Co.

An official with the company's information department, who gave only the name Mr Meng said "We saw the report, but we have heard nothing to substantiate it."

The China Times newspaper, citing sources from the China Iron and Steel Association, reported that Baosteel has begun the process of buying Panzhihua.

Capital shortages top risk for China's SOEs

According to a risk assessment report released by the State owned Assets Supervision and Administration Commission of the State Council lack of capital was the biggest risk facing China's centrally administrated State owned enterprises.

An expert participating in the evaluation of the report said a lack of capital worried most SOEs, especially those in electricity, petroleum, steel, investment, energy and real estate.

The expert, who declined to be named, attributed the shortage of funds to the tightening of credit, materials price hikes and reckless expansion.

Mr Li Rongrong director of SASAC said investment beyond main business lines and capacities as well as investments with very low returns must be prohibited. He said that SOE acquisitions and mergers were strictly controlled, and they were banned from using bank credit to invest in securities, real estate and insurance.

Citic to acquire Taigang Stock after some investors Balk

Bloomberg reported that Citic Securities Co China's second biggest brokerage by market value bought CNY 407.4 million of shares in Shanxi Taigang Stainless Steel Co that it couldn't sell in an additional stock offering.

According to a statement Taigang filed to the Shenzhen Stock Exchange, Citic will purchase the 39 million shares, equivalent to 11.5% of the sale that investors didn't buy. The Shenzhen offering raised about CNY 3.55 billion the biggest in China since May.

Mr Liang Jing a Shanghai based analyst at Guotai Junan Securities Co said that “The underwriting risks are higher in a weak market for securities companies. Citic's risks are lower than the industry average because the companies it underwrites for are better positioned in their industries.''

Citic will have to use about CNY 407.4 million of cash to buy the Taigang shares, based on the sale price of CNY 10.46 apiece. The Beijing based firm is also underwriting the 100 million share initial public offering of Shaanxi Provincial Natural Gas Co this week.

Mr Raymond Tang spokesman for Citic declined to comment.

Pangang forms JV with Marubeni and CSGTC in Chongqing

It is reported that Pangang Group International Economic & Trading Corporation Ltd has linked up with Japan's Marubeni Itochu Steel Inc's Hongkong Co and China Steel Global Trading Corp to establish a JV in Chongqing to produce steel for making automobile, motorcycle and household appliances.

As per report, the JV includes steel products processing base and logistical distribution center, with annual capacity of 200,000 tonnes. The JV is expected to achieve CNY 1.2 billion f output value per annum after its coming on stream next Mar.

Mr Yu Zisu general manager of the Pangang Group said the JV has started construction yesterday in the new zone of Northern part of Chongqing, and the three companies will spend CNY 100 million in the first stage construction. He said that "We will introduce technology and equipments from Panzhihua, Taiwan and Japan to supply high accuracy products for the local enterprises."

Mr Yu said "We are very confident about the local automobile and motorcycle market. Local automobile and motorcycle producers purchase nearly 400,000 tonnes of flat products a year from Pangang Group. And their transport costs will be lowered considerably after the establishment of the JV.”

Baosteel moves steel production line from Shanghai to Xinjiang

Bloomberg reported that Baosteel Group Corp will shift a heavy plate production line from Shanghai to the western region of Xinjiang as the city prepares for the 2010 World Expo.

According to a statement from Ba Yi to the Shanghai stock exchange that Baosteel unit Xinjiang Ba Yi Iron & Steel Co will pay CNY 109.9 million to buy part of the facilities in Shanghai from another Baosteel subsidiary.

Shanghai Pudong Iron & Steel Co wholly owned by Baosteel halted production in the Pudong district in 2005 as the land was reclaimed by the government for the use during the World Expo. China is also encouraging steelmakers to leave urban areas to cut pollution.

The statement said Urumqi based Ba Yi is investing CNY 723.9 million in a plant that will be able to make 650,000 tonnes of heavy plates annually from the end of this year. Heavy plants are used in cargo containers and construction.

Chinese HDG exports further slow down

It is reported that exports of hot dipped galvanized coil have seen evident drop due to less overseas demand and worry on anti dumping charge by the EU.

Domestic market prices remain in a period of downward adjustment. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7300 per tonne, that for 0.5mm HDG by private steel makers is at CNY 7500 per tonne down by CNY 100 per tonne and CNY 80 per tonne respectively from last Wednesday. The downward corrections are expected to spread into next month.

Export quotation for 1.0mm HDG Z120 by tier two steel mills is at USD 1110 per tonne to USD 1120 per tonne FOB. By comparison, down USD 30 per tonne to USD 40 per tonne from early July. A Tangshan based steel maker is quoting at merely USD 1090 per tonne FOB.

(Sourced from MySteel.net)

Mr Putin slams Mechel again over transfer pricing

Prime-Tass reported that Mr Vladimir Putin Prime Minister of Russian while speaking at a meeting of the inner cabinet sharply criticized steelmaker Mechel recently accusing it of tax evasion and driving up domestic prices of metal products.

He accused the company of selling coking coal to foreign affiliates, which subsequently resells it at much higher prices. He said that "They ar