Mandi sees major dip in prices this week

In line with the current trends, price of long products and patra fell significantly in the last couple of days at North India’s major manufacturing and trading center Mandi Gobindgarh.

Price in INR per tonne
Including RD and VAT
Delivery FOT

The slide in finished products was also supported by slide in input materials

Price in INR per tonne
Including RD and VAT
Delivery FOT

As per market sources “This is due to lack of demand as the buyers are prepared to wait till the new prices are announced by steel majors. Buyers are expecting reduction or maintaining the same price levels.”

The source added that “Even in case the prices are increased it is unlikely to result in price escalation in real terms as the current premium on the price will vanish thereby squeezing the margin of the local traders. “

(Sourced from www.steelprices-india.com)

JRD TATA 104th birth centenary celebrated at TATA Steel

July 29th 2008 was a momentous day for TATA Steel as it celebrated the 104th birth centenary of JRD TATA with pomp and show in Jamshedpur and across all other locations of its operations.

The day began with homage to JRD TATA at the JRD TATA Sports Complex. This was followed by the inauguration of a thematic exhibition on JRD TATA at the Sonari Airport.

One of the key highlights of the occasion was the inauguration of the Team Building and Youth Leadership development Camp that was organized by TATA Steel Rural Development Society.

The Annual JRD TATA Inter School Quiz was conducted at Michael John Auditorium.

A special Free Medical Health Camp for people and underprivileged young girls at various locations. People and children in large numbers came forward to avail the facility and benefit from the health camps.

“Let industries established in the countryside ‘adopt’ the villages in its neighborhood; it is also clearly in the interests of industry that surrounding areas should be healthy, prosperous and peaceful.” These words of JRD TATA have formed the foundation of TATA Steel’s CSR policy and the Company has unfalteringly worked towards social development and welfare of the communities.

JRD TATA’s working philosophy was rooted in “Preserving nature’s wealth to promote human health”. His core interest was the benefit of people and with this philosophy JRD TATA guided the destiny of India’s largest business house for well over half a century. In 1992, for his selfless humanitarian endeavors, JRD TATA was awarded India’s highest civilian honor, the Bharat Ratna, one of the rarest instances in which this award was granted during a person’s lifetime. In that same year, he was also bestowed with the United Nations Population Award for his crusading endeavors towards initiating and successfully implementing the family planning movement in India, much before it became an official government policy.

NCDEX steel ingot futures witness volatile trading

It is reported that pencil ingot futures contracts on NCDEX witnessed a volatile trading session on Wednesday July 30th 2008 as prices swayed between INR 35,200 to 34,040 for the near month for August 2008 expiry contracts.

Traders attributed this to the weak opening of the Mandi Gobindgarh market in the morning as well as to weaker sales of finished steel in most markets for the past few days.

However prices recovered later in the afternoon session on account of value buying as well as expectations of major price increase by the primary producers after their self imposed price freeze moratorium expires in the first week of August 2008."

(Sourced from www.steelprices-india.com)

IIL to set up by 2 million tonnes cement plant in MP

ET reported that Ispat Industries will set up a 2 million tonne cement plant in Madhya Pradesh with an investment of about INR 700 crore. As per report, a MoU for the proposed plant in Panna district of the State was signed between Ispat Industries Limited and Trade and Investment Facilitation Corporation Limited of Madhya Pradesh.

Ispat Industries has already announced to set up a 1 million tonne capacity coke oven battery in the State besides a coal washery of similar capacity and a power plant of 30 MW.

The Coal Ministry had recently approved allocation of Behrabandh coking coal block in Madhya Pradesh to Ispat Industries on a sharing basis with Essar, Mukund Steel and Ind Synergy.

Gujarat plans shipbuilding yard clusters near ports

Exim News Service reported that the Gujarat government is drawing up a blueprint to promote shipbuilding yard clusters in the vicinity of three or four ports.

It is understood that this policy will differ radically from the earlier draft policy the state government had announced in 2007. The state government has veered round to the view that the clusters would lead to better planning and quicker growth. With the new strategy, the government hopes the state’s share in the shipbuilding sector will increase manifold.

Gujarat Maritime Board sources indicated that the state government now proposes to extend support in terms of common infrastructure facilities and collateral security to investors only if they decide to set up shipbuilding yards near the ports identified by the government for developing clusters.

The state government had envisaged an investment of INR 50,000 crore in this sector. But, it now strongly believes that a controlled and planned development of the shipbuilding yards around three or four strategically located ports will lead to better growth.

Earlier, the state government was planning to develop over 100 shipbuilding yards along the 1,600 kilometers coast, hoping this would generate a USD 30 million market.

Indian Steelmakers Directory 2008

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Jai Balaji Industries net profit in Q1 up by 96% YoY

It is reported that Jai Balaji Industries Limited have once again posted impressive results for the quarter ended June30th 2008. Its total income for the quarter was INR 470.74 crore up by 86% YoY as compared to INR 252.79 crore in the same period last year. The profit before tax and net profit for the quarter were INR 60.55 crore and INR 46.30 crore respectively, showing a hefty increase of 69% YoY and 96% YoY respectively.

Mr Aditya Jajodia CMD of Jai Balaji Industries said that “The company has been consistently delivering continuous growth both in top line as well as in the bottom line with the support of its stakeholders. With our expansion plans moving ahead as per schedule, we are confident that Jai Balaji Industries will grow into a large and efficient steel company.”

Jai Balaji’s regarding has already commenced trial production for its Durgapur based sinter plant having a capacity of 0.6 million tonne and shall declare commercial production immediately of handing over the same by the technical team. EAF project is on schedule the company is hopeful to commence trial production of the same in this quarter. Other projects including ferroalloys plant with a capacity of .025 million tonne per annum and another 35 MW captive power plant at Durgapur are on schedule and to commence production during this year.

NTPC announces Q1 results

National Thermal Power Corporation Limited announced the following unaudited results for the quarter ended June 30th, 2008:

NTPC in a statement said that it has posted a net profit of INR 17265.30 million for the quarter ended June 30th, 2008 as compared to INR 23699.30 million for the quarter ended June 30th, 2007. Total Income has increased from INR 96878.40 million for the quarter ended June 30th 2007 to INR 102567.00 million for the quarter ended June 30th 2008.

The profit after tax for the quarter is INR 1,726.53 crore as compared to profit after tax of INR 2,369.93 crore reported in the corresponding quarter in the previous year. Adjusted profit after tax is INR 1858.01 crore as against adjusted profit of INR 1764.89 crore for first quarter of 2007-08, an increase of 5.28% YoY after providing for incentive and keeping provision for wage revision and others (one off items).

NTPC has total installed capacity of 29,394 MW through 26 power stations including joint ventures and currently has 16,680 MW under construction and aims to become 50,000 MW by 2012.

Hydel power output likely to fall sharply

BL reported that hydropower generation in the country could witness a sharp dip due to the south west monsoon pretty much fizzling out across a majority of the meteorological divisions.

It said that lower inflows into rivers and plummeting water levels in dams and reservoirs across the Western, Eastern and Southern regions are projected to short circuit the plans of power utilities in these States to ride on the hydropower boost that generally follows each monsoon.

According to Central Electricity Authority data, between April 1st and July 21st, there has been an 8% dip in hydro generation in Western States vis-À-vis the targets for the period, while there has been a 14% dip in the eastern region and a 20% dip in the North East.

According to the data, the situation is reported to have worsened in the later half of July, with hydro generation in the West, East and as well as the southern region in the deficit, as compared to generation targets set for the period.

(Source from CEA)

The lower rainfall has meant that hydro reservoir positions are close to the minimum drawdown level in the case of several major dams and reservoirs, including the Indira Sagar reservoir in Madhya Pradesh, Sabagiri in Kerala, Balimela and Indravati both in Orissa, even as a number of other reservoirs are showing lower levels than last year. As on July 22nd, 19 of the 32 major reservoirs had levels lower that the levels on the same day last year.

Seven States, namely Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka, Kerala and Orissa are the worst affected in terms of plummeting reservoir levels. The northern region has been much better off in terms of the rains.

A Power Ministry official said that for the States that are witnessing a dip in hydro generation, the power utilities have no option but to ramp up dependence on expensive thermal power for the rest of the year.

ABB bags INR 455 crore order from Vedanta

It is reported that ABB recently bagged orders worth INR 455 crore from Vedanta Aluminum Limited to provide products, systems and solutions for expansion of their aluminum smelter plant at Jharsuguda in Orissa.

ABB would design, supply, build and commission 24 sets of high power diode rectifier systems for four aluminum potlines.

Mr Biplab Majumder MD of ABB said that "ABB automation and electrical systems will become the manufacturing backbone of this smelter plant.”

Mr Majumder said that the automation technology company's scope of supply also includes a new switchyard to supply the new smelter plant with power a process control system and a control system for power distribution, substation switching bays, power and station transformers.

He added that the expansion at Vedanta Aluminum’s Jharsuguda plant would double the smelters' production capacity of aluminum ingots, rods and rolled products. ABB has already supplied rectifier systems for phase 1 of the Jharsuguda plant expansion in 2007 or 2008.

Vedantas total aluminum smelting capacity at Jharsuguda will be approximately 1,700,000 tonne per annum when phase 2 is complete in 2010, thus making it one of the largest aluminum plants in the world.

TPC & IOC to form JV for Orissa power project

It is reported that TATA Power Company & Indian Oil Corporation have decided to float a new company for jointly developing a 1,000 MW coal based power project at Paradip in Orissa. The shareholding pattern of the JV would be 74.26 for TPC and IOC, respectively.

As per report, the proposed project is essentially being set up as a captive project to meet the power requirements of IOC's 15 million tonnes per annum integrated refinery cum petrochemicals complex at Paradip. The plant may also supply power to the proposed steel plant of the TATA group in Orissa as also other industries in and around the Paradip complex.

Under the JV agreement, Indian Oil is committed to source at least 51% power and the surplus generation can be traded by the JV company. The authorized share capital of JVC will be INR.1,200 crore and the capital will be increased to meet the requirement of further investment as and when called for.

Based on a feasibility study carried out by TPC & IOC the tariff for power supply to the Paradip complex has been estimated on annual levelised basis for 25 years operation at INR 2.46 per unit. The levelised power tariff on similar basis for captive generation within Paradip complex has also been assessed jointly with Foster Wheeler which indicates a significantly higher value of over INR 5 per unit.

Reliance Infrastructure signs agreement with Shanghai Electric

It is reported that Reliance Infrastructure, earlier known as Reliance Energy, has signed an agreement with Shanghai Electric Corporation of China for implementing its mega plans in power sector.

As per the under the agreement Shanghai Electric would give Reliance Infra the most favored customer status while Reliance would give Shanghai Electric the most favored supplier status. The framework agreement includes setting up of JV for manufacturing boilers, turbines and generators. The agreement will be valid for five years.

Ashok Leyland to develop new range of trucks by 2012

It is reported that Ashok Leyland will be introducing a complete new product portfolio by 2012-13 to replace the full range of existing vehicles that currently stands at 84,000 units. The new range will include a new truck platform, a new family of Neptune engines and new modular cabs.

As per the report, work is on to develop an all new truck platform called Unitruck, to be progressively introduced from 2010. Modular and designed to span truck models from 16 tonne gross vehicle weight to 49 tonne, will conform to European standards. The Unitruck will widen ALL's market horizon and spearhead our entry into developed markets with competitive advantages in cost.

The report said that Hinduja Group flagship ALL will also be coming out with a family of 6 cylinder inline engines called Neptune for which the technology is being developed in house. These will be of modular capacity from 4.7 liter to 8 liter and will meet Bharat Stage III and IV norms and be Euro IV-compliant.

NLC Q1 net profit at INR 286 crore

Neyveli Lignite Corporation recently announced a net profit of INR 285.83 crore for the quarter ended June 30th a 1.58% growth from that in the corresponding period a year ago.

Neyveli Lignite Corporation said in a filing to Bombay Stock the company had a net profit of INR 281.37 crore for the quarter ended last year. The total income of the company increased to INR 1,237.62 crore for the June quarter from INR 925.93 crore in the corresponding period last year.

15 companies shown interest in partnering REC

It is reported that 15 companies including TATA Power, GMR Infrastructure, Larsen & Toubro and Lanco Infratech have shown interest in partnering with Rural Electrification Corporation which is foraying into power generation.

The reported that the companies also interested in floating JV with REC for development and operation of thermal power plants and associated coal mines are Monnet Ispat, GVK Power and Infrastructure, CESC and Teesta Urja.

As per the report, Rural Electrification Corporation had invited applications seeking the expertise of power project developers in its generation foray. It plans to form up to 5 JV preferably with firms with allotted coal and lignite blocks directly or through associations with state government utilities. REC now provides only financial and technical assistance to power utilities for rural electrification projects, generation, and transmission and distribution. After evaluating the bids REC will enter into an MOU with selected developers.

Era Infra Q1 net down by 14 % YoY

It is reported that Era Infra Engineering Limited recently reported a 14% YoY decline in net profit at INR 28.40 crore for the quarter ended June 30th against INR 33.12 crore in the year ago period.

Era Infra Engineering in a statement said that however, the company's revenue increased by 48% at INR 403.20 crore during the Q1 of FY 2009 against INR 271.73 crore in the corresponding quarter of previous fiscal.

Mr HS Bharana chairman & MD of Era Infra Engineering said that "Our robust economic growth coupled with investments in various strategic areas helped us grow faster in this competitive environment. We are looking at a consistent, healthy growth throughout this financial year.” The company which is a fully integrated infrastructure company has an order book of INR 5,153 crore.

Era Infra Engineering develops and constructs highways, railways, airports, power and industrial projects, institutions, universities and residential and commercial complexes.

GAIL India Q1 net up 31% YoY

GAIL India recently reported a 31%YoY jump in net profit to INR 897 crore for the quarter ended June 30th 2008 despite 74% increase in its subsidy outgo.

The release said that GAIL had recorded a net profit of INR 685 crore in the April to June quarter of last fiscal. It shelled out INR 475 crore towards subsidizing domestic LPG & PDS kerosene during the quarter.

The release added that this included INR 87 crore towards subsidies for Q4 of 2007 or 2008 fiscal. In April to June period of last fiscal the company had paid INR 272 crore in subsidies.

GAIL's turnover increased 35% to INR 5,731 crore in Q1 this year as against INR 4,246 crore in same period last year. Profit before tax was up by 40% to INR 1,352 crore.

Essar Shipping posts INR 11.60 crore loss in Q1

It is reported that Essar Shipping Limited posted a net loss of INR 11.60 crore for the Q1 ended June 30th 2008 as compared with net profit of INR 71.15 crore during the same quarter in 2007.

As per the report, total income for the quarter has increased to INR 341.65 crore from INR 217.61 crore in the year ago period.

ArcelorMittal reports Q2 and H1 results

ArcelorMittal has announced results for the March to June 2008 quarter and January to June 2008 period.

January to June 2008 period highlights:
1. Sales of USD 67.6 billion, up by 31% YoY
2. EBITDA 1 of USD 13.1 billion, up by 35% YoY
3. Net Income of USD 8.2 billion, up by 65% YoY
4. Capital expenditure of USD 2.3 billion in H108

March to June 2008 quarter highlights
1. Sales of USD 37.8 billion, up by 39% YoY
2. EBITDA of USD 8 billion, up by 51% YoY
3. Net Income of USD 5.8 billion, up by 114% YoY
4. Capital expenditure of USD 1.4 billion in Q208

Financial highlights of Q2 and H1 2008 are

In USD million

Mr LN Mittal chairman & CEO of ArcelorMittal said that "We are pleased to report results for the first half of 2008, with EBITDA of USD 13.1 billion up by 35% YoY over the same period in 2007. This reflects the diversity and strength of the ArcelorMittal business model, in particular the significant diversification of our value chain including our considerable mining operations."

He added that "We continue to look for opportunities to further enhance our raw material self sufficiency, with recent investments being announced in Africa, the Americas and Australia. Our financial strength enables us to continue to invest heavily in the development of the business, particularly relating to Brownfield growth and improving product quality and mix. This year we expect capital expenditures to reach USD 7 billion, representing 36% of 2007 EBITDA."

Japanese steel majors agree to quadruple low grade coking coal price

The Nikkei business daily reported that Nippon Steel Corp, JFE Steel Corp, Sumitomo Metal Industries, Kobe Steel and Nisshin Steel have reached an agreement with Xstrata for a roughly 3.6 fold price hike for low grade metallurgical coal and are expected to seal the price hike deal as early as next week.

The contract price for low grade coal, which Xstrata mines in the New South Wales, Australia, will be hiked to about USD 240 per tonnes in the current business year.

Low grade coal accounts for about 30% of the 75 million tonnes or so of metallurgical coal that Japanese steelmakers import every year.
The paper said the price hike will increase industry wide costs by some JPY 100 billion (USD 925 million), and steel makers plan to pass on higher prices to customers like electronics makers and shipbuilders.

The latest arrangement came after Japanese steelmakers agreed in April with BHP Billiton and other mining companies to roughly triple the price for a ton of strongly caking coal to USD 300 for fiscal 2008.

MEPS sees starting of fall in global steel prices

UK based MEPS said that "We are now seeing the beginning of the seasonal summer slowdown in demand in the US. In addition, those domestic producers heavily involved in the auto sector are finding it more difficult to fill their order books. The rate of steel transaction price increases has slowed considerably. Service centers are keeping inventories at historically low levels because sales activity is poor. However, foreign offers are virtually nonexistent due to the weak US dollar and better prices elsewhere. Therefore, the supply and demand balance remains tight. Several local mills have already formally announced their intention to lift transaction values by a relatively modest USD 40 to USD 50 per ton for September 2008 deliveries but many market players feel prices may have already peaked."

MEPS added that "Although Canadian steelmakers would have liked to implement further price hikes, demand has not proved strong enough to justify the attempt. Values are stable this month with the possibility that they may rise in the autumn due to ever increasing input costs. Order intake at the mills is exhibiting some seasonal softness with material still available for August delivery. However, there are no signs of growing imports. Distributors' inventories are still dropping and their shipments are reported to be running at about 7% behind last year."

MEPS said that in China, the recent positive price trend has started to turn down. Market players feel the situation may be short lived as domestic supply will remain restricted, partly due to a shortfall in electricity caused by the hot summer plus planned output curbs ahead of and during the Olympic Games. Excellent sales to the automotive sector, industrial machinery manufacturers and ship builders are helping to keep supply tight in Japan. Export business is also brisk. However, dealers' shipments remain slow because of poor building demand. Inventories of strip mill products held by Japanese steelmakers and distributors, at end May 2008, moved up by 1.6% as compared to April 2008. Quayside stocks of imported flat products rose by 11.5% during June 2008.

MEPS said that "Since POSCO's decision to ramp up the third quarter values of most products, several South Korean re-rollers have proposed higher prices. The Taiwanese general market is sluggish at present, although prices remain at a high level. Inventories are sufficient for current demand. Nevertheless, CSC cut export volumes in order to give priority to local customers whilst its output was curtailed by production problems at the No 1 blast furnace last month."

MEPS added that "There is some concern in Poland that the economic slowdown in neighboring West European countries could adversely affect export business. Likewise, the continuing strength of the Zloty is lowering the competitiveness of manufacturers trying to sell overseas. The situation is similar in the Czech and Slovak markets where exporters are also suffering from exchange rate problems. Nevertheless, steel demand is still holding up quite well and, overall, supply remains constrained. Further price escalation is anticipated."

MEPS further adder that "The West European market continues to be characterized by supply tightness and rising prices in a climate of relatively flat demand. The availability of competitively priced steel from third countries remains at a low level. Meanwhile, ArcelorMittal announced a further increase on strip mill products of around €50 per tonne for new bookings for September delivery. The company warned of probable further upward adjustments in forthcoming quarters. These proposals have no guarantee of success in the current climate."

Samuel Manu-Tech sells Nanticoke pickling facility to US Steel Canada

The Canadian Press reported that Samuel Manu-Tech Inc is selling its Nanticoke Ontario based steel pickling operation to its major customer, US Steel Canada. The terms of the letter of intent were not disclosed.

The transaction is expected to close in the current quarter, after due diligence and ongoing negotiations.

The three pickle lines are adjacent to the Lake Erie steelworks of the Canadian subsidiary of United States Steel Corp, which last year took over Stelco Inc.

Mr Mark Samuel chairman & CEO of Samuel Manu-Tech said that “Samuel Manu-Tech remains committed to servicing the southern Ontario marketplace through our state of the art steel pickling and slitting operations in Stoney Creek. The decision to sell the Nanticoke pickling lines reflects the company's expectations for reduced steel pickling demand in the Ontario marketplace and the desire to reallocate capital into higher-growth areas."

U.S. Steel said the acquisition of the 1.2 million tonnes of pickling capacity will strengthen its position in flat rolled steel products for the North American market. Mr Douglas Matthews president of US Steel Canada said "These assets give US Steel Canada the modern equipment necessary to produce high quality products that will be in demand well into the future. In addition, the proximity of these pickle lines to our operations will help to ensure the future competitiveness of both Lake Erie Works and Hamilton Works."

OPEC chief says current oil prices abnormal

The Financial Express cited Mr Chakib Khelil president of OPEC as saying that the crude oil prices above USD 120 a barrel are abnormal and could fall to around USD 78 under the right circumstances.

Mr Khelil said that “If the dollar continues to strengthen and the political situation improves, then the long term prices will be about USD 78, adding that the market was well supplied with oil.”

Crude prices have doubled over the past two years but fallen from record highs of around USD 147 a barrel reached earlier this month. They were trading at around USD 125 recently.

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 Gwangyang plant overtakes Pohang works

Korea Times reported that having kicked off as the second of POSCO's integrated steel mills in 1982, Gwangyang Plant in South Jeolla Province now outstrips Pohang Steel Works in terms of size and production capacity.

As per report, the mill 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.

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."

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.

Hoang Anh Mineral billet plant at Quang Ngai gets green light

VNA reported that the People’s Committee of the central province of Quang Ngai has given the go ahead to the Hoang Anh Mineral Joint Stock Company to build a VND 1 trillion (USD 59 million) steel billet plant in Duc Pho district of Vietnam.

Located in the Pho Phong Industrial Zone, the plant will be capable of churning out 500 tonnes of steel billets per day.

Slab prices starting to soften

It is reported that, in late July 2008, global slab prices have softened. Prices of slab have seen a USD 100 to USD 150 tonne drop, as a Taiwan buyer said it would not pay over USD 1,000 tonne last week, and he said a reasonable price should be at USD 900 tonne this week.

Buyers are trying to take the chance to bargain for lower price of slab now. Slab prices had reached as high of USD 1,200 tonne.

(Sourced from Yieh)

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 at Tagoloan in Philippines, 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 Ms 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.

Japanese steelmakers seek higher sheet steel export

Japanese integrated steel makers try to increase the sheet steel export price to transplants of Japanese appliances makers for July to December 2008 period.

The steels offer USD 250 to USD 300 per tonne of hike for the relative lower price when the Asian market reaches USD 1,000 per tonne FOB for hot rolled coil, USD 1,100 per tonne FOB for cold coil and USD 1,200 per tonne FOB for hot dip galvanizing steel.

Thailand scrap imports in 2007 up by 30% YoY

Thailand imported 1.784 million tonnes of scrap in 2007 up by 30% YoY as compared to the same time last year.

America was the leading supplier at 789,000 tonnes, followed by Russia with 269,000 tonnes, Australia with 142,000 tonnes and Philippines with 92,000 tonnes.

Philippine rebar prices on rise

It is reported that Philippine domestic prices of rebars are still at a high level.

According to the department of trade & industry, steel prices in the Philippines have risen by almost 40% since January 2008 as the costs of raw materials continue to rise. Besides, rising oil prices is also a key reason behind.

Demand for construction material may start to slow down when rainy season comes. The rise in the price of steel bar has showed signs of slowing down with oil prices.

Daewoo Shipbuilding union allows due diligence

The sale of a majority stake of Daewoo Shipbuilding & Marine Engineering is gathering momentum, after the union there dropped its two month opposition and decided to let due diligence proceed on the world’s No 3 shipyard. This is adding strength to the bid by steel maker POSCO, which is flush with cash and poised to take over.

Mr Lee Se jong union representative said that "We have decided to partially allow due diligence of our company. The union and representatives of the state run Korea Development Bank recently agreed on key factors such as job security, wages and other issues."

The process of selecting a preferred bidder for Daewoo Shipbuilding has been stalled since May 26th 2008, because of the union’s opposition, blocking KDB’s merger and acquisition team from starting due diligence. The process of selling a controlling stake in Daewoo kicked off in March with the goal of selecting a preferred bidder by August 2008 but no substantial progress has been made.

KDB holds a 31% stake. Its combined stake, together with the Korea Asset Management Corporation, which is over 50%, is up for sale. The sale is related to KDB’s own privatization plan. POSCO is leading the bidding race with the company’s cash reserves estimated at being over KRW 6 trillion. Other contenders have been accelerating efforts to find strategic financial partners to strengthen their standing.

Hellenic Halyvourgia improves productivity with HSD

Greek steel manufacturer, Hellenic Halyvourgia SA in July 2007 has put a new High Speed Delivery system from SMS Meer into operation. Today, almost one year later, the outstanding production values of this system are being confirmed.

Hellenic Halyvourgia is achieving a 50 % increase in productivity for rebar with a diameter of 8mm compared with the former plant configuration.

High-Speed Delivery system was installed during the scheduled annual maintenance shutdown. The modernization of the mill and all the measures for dismantling the old machines and ancillary facilities were carried out parallel to the installation of the HSD® system.

SMS Meer delivered, erected and commissioned the complete plant on schedule, only six months after the signing of the contract in January 2007. The final acceptance certificate was signed by Hellenic Halyvourgia in November 2007, just ten months after signing of the contract.

Tomago orders billet saw plant

Australia’s Tomago Aluminium Company Pty Ltd has placed an order with Hertwich Engineering, Austria, a company of the SMS groupfor the supply and commissioning of a billet saw plant at their Tomago works in NSW.

The fully automated plant is designed for a production of 140,000 tonne per year with billet diameters ranging from 152 to 350 mm. Commissioning is scheduled for June 2009.

In addition to the actual billet saw, the order comprises a log entry and accumulation conveyor and an inspection roller table line with linear type ultrasonic inspection station for detecting center cracks.

The scope of supply includes a multi layer billet stacker for short or long billets, steel band strapping machine, weighing station and label applicator and an overhead crane for the handling of completed billet bundles.

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.

Continuous homogenizing plant goes into operation

Germany’s Apt Hiller GmbH together with Hertwich Engineering, Austria, a company of the SMS group, Germany, successfully commissioned the supplied continuous homogenizing plant in May 2008.

The new continuous homogenizing plant replaces a homogenizer supplied by HE in 1985 in order to meet the meanwhile increased production of 18,000 tonne per year Log diameters are from 140 to 203 mm. The plant includes the continuous homogenizing furnace, a log cooling station, the complete log handling facilities and the automation.

The existing melting furnace and horizontal billet caster also supplied by HE in 1985 have been integrated into the new production line. The installation and commissioning times were planned such that production only had to be interrupted for three weeks.

US Steel declares 5 cents dividend increase

United States Steel Corporation has announced that its board of directors declared a dividend of 30 cents per share on US Steel Common Stock, an increase of 5 cents per share.

The dividend is payable September 10th 2008, to stockholders of record at the close of business August 13th 2008.

Mr DiMicco appointed to the US Manufacturing Council

Mr Daniel R DiMicco chairman president & CEO of Nucor Corporation has been appointed to the United States Manufacturing Council by US Commerce Secretary Mr Carlos M Gutierrez.

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

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

Mr DiMicco has been widely recognized as a dynamic promoter of Free Trade for manufacturing in the United States. He has been president and CEO of Nucor Corporation since 2000. He was elected VC in 2001 and chairman in 2006. He has held increasing roles in management since he joined Nucor in 1982. Prior to Nucor, he worked for Republic Steel Corporation after completing his Masters in Science Degree in Metallurgy and Materials Science from the University of Pennsylvania and his Bachelors of Science in Engineering, Metallurgy and Material Science from Brown University.

In addition to Mr DiMicco, the members of the Council include
1. Mr Dean Bartles VP & GM of General Dynamics Corp
2. Mr John Cantlin president of Lifoam Industries
3. Mr Daniel W Holmes Jr chairman of Morrison Products Inc
4. Mr Kellie Johnson president of ACE Clearwater Enterprises
5. Mr William Jones president of Penn United Technology Inc
6. Mr Peter Kamenstein president of Kamenstein
7. Mr Fred Keller chairman & CEO of Cascade Engineering
8. Mr James McGregor president of Morgal Machine Tool and Ohio Stamping & Machine
9. Mr Michael Nowak president & CEO of Coating Excellence Intl
10. Mr Jason Speer VP & GM of Quality Float Works Inc
11. Mr Harding Stowe president & CEO of RL Stowe Mills Inc
12. Mr Edward Voboril chairman of the Board of Analogic
13. Ms Della Williams president & CEO of Williams Pyro Inc

APM Terminals to jointly build 2nd terminal in Vietnam

APM Terminals has announced plans to jointly develop a new container terminal in Dinh Vu, Vietnam’s second such facility.

APM Terminals said that it has entered into a JV agreement with Pharung Shipyard Company to develop and operate a new box terminal in the Dinh Vu Industrial Zone, serving the Vietnamese Capital of Hanoi and the Red River Delta region of northern Vietnam.

Construction of the planned 630 meter berth and 24 hectare terminal is scheduled to begin later this year and is expected to be operational by late 2010.

Steel Dynamics increases share repurchase program

Steel Dynamics Inc announced that its board of directors has approved an increase of 5 million shares to its existing share repurchase program. With this increase, it now has the authority to repurchase up to an additional 8.9 million shares. Since September 2004, it has repurchased 46 million shares of its common stock.

Mr Keith Busse chairman & CEO of Steel Dynamics said that "We believe that this expansion of our share repurchase program speaks to both management's and our board of directors' belief that, from time to time, as and when market conditions undervalue our stock, one of the better decisions that we can make to both demonstrate our confidence in the future and to build shareholder value is to invest in our own shares."

Hanjin Shipping Q2 2008 net income up by 20% YoY

Hanjin Shipping Company has posted net income of KRW 77 billion in March to June 2008 quarter up by 20% YoY as against KRW 64.2 billion in March to June 2007 quarter. Sales climbed by 36% YoY to KRW 2.25 trillion.

Hanjin follows Nippon Yusen KK and Mitsui OSK Lines Limited in posting higher profit after bulk shipping rates rose on China's demand for iron ore and coal. It also carried more sea cargo boxes to Europe because of China's growing exports of toys, clothes and furniture.

Hanjin's second quarter operating profit rose more than fourfold to KRW 102.9 billion. It earned 78% of the profit from carrying oil and dry bulk cargos. The shipping line will also spend KRW 135.6 billion on two new build bulk vessels, which will be used for coal shipments.

Global hot band prices eruption on upward trends

SteelBenchmarker reported that the US hot rolled band spot price for July 28th 2008 surged by 1.6% to USD 1,203 per ton, FOB the mill for the sixteen consecutive rise totaling USD 610, world export HRB price rise by 0.2% to USD 1,113 per ton FOB the port of export, for the sixteenth consecutive rise totaling USD 532, Chinese HRB ex works price fell by 1.6% to USD 721 per ton for the second consecutive time and the Western European HRB fell by 1.2% to USD 1,190 per tonne ex works for the eleventh consecutive time totaling USD 491.

USA
USD 1,203 per metric tonne FOB the mill
Up by USD 19 per tonne from USD 1,184 two weeks ago
Up by USD 643 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 573 per tonne from the recent high of USD 630 on April 9th 2007

China
USD 721 per metric tonne, ex works
Down by USD 12 per tonne from USD 733 two weeks ago
Up by USD 251 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 234 per tonne from the previous high of USD 487 on September 10th 2007

Western Europe
USD 1,190 per metric tonne ex works
Down by USD 14 per tonne from USD 1,204 two weeks ago
Up by USD 527 per tonne from the recent low of USD 663 on July 23rd 2007
Up by USD 494 per tonne from the recent high of USD 696 on June 11th 2007

World Export Price
USD 1,113 per metric tonne FOB the port of export
Up by USD 2 per tonne versus USD 1,111 two weeks ago
Up by USD 563 per tonne from the recent low of USD 550 on July 23rd 2007
Up by USD 517 per tonne from the recent high of USD 596 on March 26th 2007

SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.

Accident kills worker at LaPlace steel plant

A worker was killed when he was pinned by a truck. He was directing at the Bayou Steel Corporation plant in LaPlace. As per report, Mr Carlos Morris of LaPlace, who worked for Diamond E Trucking, died shortly after the accident.

Mr Jerry Pitts president of Bayou Steel Corporation said that the accident involved a contractor's truck and a contract employee, identified by relatives as Morris, at the company's mini mill at 138 Bayou Steel Road. He added that "It involved a person who was guiding the truck."

Mr Pitts said he could not provide details because the accident is under investigation, but he said the company's first responders were at the accident within minutes. He said the company's EMTs continued to care for Morris until an ambulance arrived at the mill.

He further added that the death is under investigation by Bayou Steel, contractor Diamond E Trucking and the federal Occupational Safety and Health Administration.

Mr Jindal meets with Nucor executives and tries to lure USD 2 billion plant

AP reported that Mr Bobby Jindal Governor of Louisiana met with steel executives in South Carolina as he tries to bring a new USD 2 billion plant to south Louisiana. He met with Nucor Corporation's CEO Mr Dan DiMicco and others and took a tour of the Charlotte.

Mr Jindal called the meeting very productive and involved negotiations over financial incentives, as he tries to persuade the firm to build the plant in St James Parish instead of a location overseas. He said that "We are very competitive with these other locations."

Nucor Corporation has said it will announce its plans by the end of 2008. Mr Jindal said he was told a decision could be made within months.

According to Nucor, the plant's initial phase, costing USD 2 billion and employing up to 2,000 construction workers, would include a port on the Mississippi River capable of handling ocean vessels and large barges, plus a three million ton blast furnace. The plant would produce pig iron, normally imported from overseas, a raw ingredient in steel making. That plant would employ 500 people with an average salary of USD 75,000. Nucor said it was also considering another phase, to add a second blast furnace, at a cost of USD 1 billion.

Steel Technologies announced 54,000 sq ft expansion

Steel Technologies has announced that it is expanding their capabilities to accommodate the purchase of a new state of the art Multi Blanking Line.

Mr Randall Patterson VP operations of Steel Technologies southern region said that "This expansion is in line with Steel Technologies long term strategy of continuing to broaden the capabilities to better serve customers. Over 54,000 square feet of processing and maintenance space will be added to the existing operation. The facility expansion is under construction and will be completed by the end of the year."

Designed and constructed by BASCON INC, the new steel processing facility addition will have 25 tonnes crane capabilities with a 120 feet span. Also included are 27 feet rails to maximize the storage of coils, a clear epoxy floor to allow easy maintenance, a recessed shipping dock and drive thru receiving bay. The maintenance facility will be an attached 2200 SF building.

ThyssenKrupp opens Michigan sales office to support Alabama plant

Birmingham News reported that ThyssenKrupp has set up a sales office in Troy in Michigan to serve North American manufacturers with products from its USD 3.7 billion Alabama steel plant.

Mr Bob Holt VP marketing for ThyssenKrupp said that "We will be working with and serving a number of different industries from this location. Because a significant portion of the automotive industry's purchasing, technical design and engineering activities take place in Detroit area, it also has the advantage of being close to our customers who are especially important to our future success."

The Alabama plant is scheduled to be completed in early 2010 and will be able to produce 4.1 million tons of carbon steel and products for the automotive, construction, household appliance and other industries.

Cold finished steel bars in July 2008 up by 7% MoM

Purchasing.com reported that the market price for cold finished steel bars is being posted at USD 1,478 per tonne in July 2008 up by 7% MoM from a revised USD 1,385 in June 2008 and 76% YoY more expensive than July 2007.

Purchasing magazine’s market and pricing information service also has worked with buyers to adjust several previous monthly prices to reflect a recently imposed scrap cost surcharge that has been attached to the base price by domestic mills to offset increased raw material costs.

One buyer said that the cold finished bar market is a funny market because prices are generally aren’t published so transaction prices will vary a great deal for things like quality extras, size extras, certification requirements and the like. And, since April 2008, all US and Canadian mills are using scrap surcharges.

Buyers report that low import levels for cold-finished bar haven’t tightened supply because there are several domestic suppliers, and deliveries since spring have been averaging about 4 and a half weeks, the average of the last decade. Some service center executives also say that cold finished bar is more difficult to export because it can be easily damaged in transit, which keeps more in the US market.

Bradken to acquire 83% stakes in AmeriCast

It is reported that mining industry equipment and services provider Bradken has entered in to a deal to acquire the 83% stake that it does not already own in US company AmeriCast Technologies from private equity firm Castle Harlan and the AmeriCast management for USD 114 million to strengthen its presence in the resources sector.

As per report, Bradken will fund the acquisition almost entirely from a USD 110 million share placement underwritten and sole managed by Goldman Sachs JBWere. The total transaction costs are estimated at USD 5 million. The acquisition will significantly expand Bradken's capabilities in large steel castings and provide an American base from which to expand some of Bradken's mining consumable products.

Mr Howard Morgan a senior MD at Castle Harlan who leads the firm's AmeriCast team said that based on the value of this transaction, Castle Harlan and the AmeriCast management will make collective gain of more than three times on their original invested capital, which represents an IRR of more than 90%. He added that "AmeriCast has been an excellent investment for Castle Harlan and its limited partners, and we are pleased that we have been able to add significant value to the company during our 21 month period of ownership. Annual EBITDA has grown more than 100% through both organic growth and strategic acquisitions. We are confident this growth will continue."

Bradken had purchased a 19% minority equity interest in AmeriCast when Castle Harlan acquired a controlling stake in the company in November 2006. Until it went public in August 2004, Bradken had been a portfolio company of Castle Harlan's Australian affiliate CHAMP Private Equity in Sydney. Bradken is based in Newcastle, New South Wales, about 90 miles north of Sydney. Bradken currently has revenues of approximately USD 800 million.

After acquiring AmeriCast in November 2006, Castle Harlan assisted the company in purchasing Atlas Castings and Technology in April 2007 and AG Anderson in April 2008. Atlas makes large specialty steel castings for the energy and defense industries; A.G. Anderson produces castings in stainless steel and complex ferrous alloys, primarily for the energy industry. In January 2008, Castle Harlan assisted the company in divesting its Prospect division, which had been identified as non core to the AmeriCast business.

Portman Q2 net earnings up by 325% YoY

Portman Limited has posted net earning of USD 119 million in March to June 2008 quarter up by 325% YoY as compared to USD 28 million in March to June 2007 quarter primarily due to the higher iron ore prices.

Sales revenue increased by USD 115 million to USD 188 million however the figure was partially offset by a lower sales volume of USD 18.1 million and the appreciation of the Australian dollar against the US dollar of USD 24.8 million.

Cost of goods sold decreased by USD 5.5 million on 2007-08 fiscal primarily due to reduced sales volume in the quarter of USD 10.7 million, which was partially offset by cost escalations of USD 5.2 million. For the January to June 2008 period, NPAT was USD 137 million, up from last year's USD 57 million, while sales revenue was up from USD 266 million to USD 412 million.

Australasian appoints BNP Paribas as advisor

It is reported that Perth based iron ore company Australasian Resources has appointed BNP Paribas as its advisory bank in a move towards facilitating finance offer for the development of its deposits.

As per report, BNP Paribas will assess Australasian’s bankable feasibility study for its Balmoral South iron ore project, in the context of the likely requirements Chinese banks will have of the project.

Australasian said that the bank, which was appointed with the approval of project partner Shougang, has a close working relationship with Chinese policy banks, which are expected to be a primary source of project funding.

ArcelorMittal SA eyes more exposure to raw materials

ArcelorMittal SA said that it is keen on gaining greater exposure to the raw materials that it used and that coal was definitely an immediate interest. It would also have a gap in its iron ore supply by 2012, when it reached its expanded production capacity of 10 million tonnes a year and would have to secure some 4 million tonnes from South Africa’s resource base.

ArcelorMittal SA was currently locked in a confidential arbitration process with Anglo American’s Kumba Iron Ore regarding its participation in the miner’s Sishen South project, which it hoped to conclude by the first quarter of 2009.

Ms Nonkululeko Nyembezi Heita CEO of ArcelorMittal SA said that “Iron ore supply remains a top priority. We continue to look for opportunities to further enhance our raw material self sufficiency, with recent investments being announced in Africa, the Americas and Australia.”

Meanwhile, ArcelorMittal increased its stake in South African junior mining company Coal of Africa Limited to 17.8%. It also bought 50% Kalagadi Manganese, which has mineral assets in the Northern Cape.

Polo to open Ereen coal mine in October 2008

Polo Resources Limited has announced that it expects its Ereen coal mine to be operational by October 2008. Further, it reported that the construction of a road leading from the mine to a rail line to China is ahead of schedule.

Polo resources noted in a statement "Sale prices for this coal are high and will allow Polo to make significant returns on the small CAPEX investment it has made."

It may be noted that Ereen Coal Project is located in the western area of the Bulgan Province of Mongolia, known as the Ereen Basin. Once running, officials hope to mine 100,000 tonnes of coal per month.

Oil falls below USD 121 - Lowest since May

It is reported that oil fell more than USD 4 a barrel to below USD 121 recently, touching the lowest price since May, as signs of weakening demand outweighed a disruption to Nigerian oil output.

US crude was down by USD 3.30 at USD 121.43 a barrel and traded as low as USD 120.42, the lowest since May 6th.

The drop also coincided with a firmer US dollar, which may have reduced the appeal of commodities to some investors and comments from OPEC’s president that oil could fall to USD 70 or USD 80 in the long term.

Mr Edward Meir analyst at MF Global who earlier said he expected an eventual retreat to USD 121 to USD 122 said “We still believe that crude’s rallies are vulnerable and we would advise not buying into them.”

Oil has fallen from a record peak of USD 147.27 on July 11th, pressured by signs that high prices and an economic slowdown are curbing demand especially in the US. Mr Tony Hayward CEO of BP Plc said recently that he saw demand destruction of 5% to 10% for gasoline in developed OECD economies, as people drive less due to high fuel prices.

Iraq reconstruction by US under scanner

Arab News reported that US government paid a contractor up to USD 900 million to carry out reconstruction in Iraq and now says the company did not fulfill its contract but simply walked away with millions of taxpayers’ dollars.

As per report California based Parsons had projects awarded by the US Army Corps of Engineers in the security and justice sector including much needed prisons a series of border posts courthouses and fire stations. The audit said that the company was paid USD 333 million as of May 21st including more than USD 142 million on projects that were either terminated or canceled and the government paid an additional USD 34 million to settle claims made by Parsons and its subcontractors.

Inspectors found that Parsons was paid for 53 contracts but only 18 were completed. Of the USD 333 million Parsons was paid before the company left Iraq USD 142 million was for projects that were never finished.

According to the special inspector general for Iraq reconstruction, millions of taxpayer’s dollars were squandered in incomplete, terminated and abandoned projects in Iraq.

As per report, the US Justice Department is burdened with some 900 cases of whistleblowers accusing government contractors of fraud. It will take years to work through the backlog. The defense contract Audit Agency said it has found USD 10 billion in questionable contracts for services and equipment in Iraq.

Dubai Metro gets more trains from Japan

Golf News reported that Dubai has received six more trains from Japan after a successful two month trial run on the two that arrived in March.

An official at the Rail Agency of the Dubai Roads and Transport Authority said that "We have now received a total of eight trains, and are getting ready for a new and bigger trial run in August.” He said the trial run on a 14 kilometer track between Ibn Battuta Mall and the Jebel Ali Industrial Stations is expected to start by the end of August.

He said that "People will see a number of trains riding up and down the track adding that the tests for the first two trains was successful.

The official confirmed that at least three trains would arrive in Dubai every month. A total of 62 trains will eventually operate on the 52.1 kilometer Red Line, which will be operational by September 2009. A total of 17 trains will run on the 22.5 kilometer Green Line, which will open in March 2010.

Each train consists of five compartments with a maximum capacity of 897 passengers in peak hours. Every train has three classes, golden, women and children and silver class. Three out of five compartments will be silver class, which is economy, while the other two classes will have one compartment each.

Mr Mattar Al Tayer chairman of the Board and Executive Director of the RTA, which is carrying out the AED 15.5 billion Dubai Metro project, had earlier said every train would undergo full tests to monitor noise and wobbling for early detection of any problems, before passenger services start on September 9th 2009.

GE Energy wins USD 500 million Abu Dhabi contract

AP reported that GE Energy has won a contract valued at more than USD 500 million to supply equipment at an aluminum processing plant near Abu Dhabi.

The power plant in the United Arab Emirates will use natural gas as its primary fuel and feature gas and steam turbines, heat recovery steam generators and condensers. All will be provided by GE Energy, a subsidiary of Fairfield-based General Electric Co.
When phase one of the project is complete, the site will have a capacity of more than 2,000 MW of electricity to be used in the production of 700,000 tons of aluminum a year and the total production capacity in phase two will reach 1.4 million tonne of aluminum.

Ajman to invest AED 8.8 billion in infrastructure

Khaleej Times reported that the UAE emirate of Ajman is investing AED 8.8 billion in various infrastructure projects plus a coal driven power plant.

Mr Mohammed Al Zarah vice president of Dubai based Great Properties recently said that "Ajman's buoyant real estate market has great potential. The company is a consortium put up by various investors in the Gulf Cooperation Council bloc. The investment includes the AED 500 million allocated by the emirate for infrastructure such as roads the AED 800 million sewerage system launched recently and the country's first coal power plant worth AED 7.4 billion.”

Mr Al Zarah said a new coal driven power plant set for completion in 3 years would support the infrastructure development in Ajman needed to cope with the tremendous increase in residential projects across the emirate. His Highness Mr Shaikh Humaid bin Rashid Al Nuaimi member of the Supreme Council and Ruler of Ajman signed on July 17th the agreement to build the power plant with the head of investment and projects at Malaysian Mining Corporation, Ernest Nevaratnam.

As per the report, Ajman's real estate market is ranked third in the UAE after Dubai and Abu Dhabi with respective market share of 10%, 50% and 30%. The 6 mega projects under construction in Ajman have a total value of AED 40.8 billion or 10% of the current projects being developed across the country.

Dana gas and Crescent to develop gas city in Iraq

Trade Arabia reported that UAE based companies Dana Gas and Crescent Petroleum have joined hands to develop an extensive Gas City at Kurdistan area of northern Iraq. The project is poised to draw direct foreign investments worth more than USD 40 billion.

The duo has set up a new company Gas Cities mainly to develop the 461 million square feet industrial complex which will feature industrial, commercial and residential zones, as well as 20 different petrochemical and heavy industries.

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. The project is being 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.

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.

Pakistan and Philippines establish joint economic commission

APP reported that Pakistan and Philippines recently signed an agreement to establish a joint economic commission with an aim to promote economic co operation between the two countries.

The agreement was signed by Mr Junaid Iqbal Chaudhry acting, Secretary, Economic Affairs Division and Mr Jamie J Yambao Ambassador to Pakistan of Philippines on behalf of their respective governments.

According to the report, the joint economic commission would promote economic co operation between the two countries in different areas including economic, trade and investment. Through this agreement, the parties would endeavor to promote higher levels of economic co operation, through increased trade and investments between the countries and would set arrangements for the implementation of decisions.

As per the report, the JEC is an important forum that will exchange information and views on countries' economic situation, global economic issues and other economic subjects for the mutual benefit of the two countries. The meeting of the JEC will be held alternately in two countries. Secretary, EAD is the Co Chair from Pakistan side while Under Secretary of Trade and Industry is the Co Chair from Philippines side.

Steering committee working out railway implementation plan linking major cities

A steering committee formed by the Jordan’s government is currently looking into methods to implement a railway project linking major cities and economic activity centers in the Kingdom with neighboring countries.

In 2003, Jordan was among 13 Arab countries that agreed on a railway linkage system during meetings of the Economic and Social Commission for Western Asia, which requested those countries to implement their internal railway network in a period of 10 to 15 years. Member countries in the regional project include the six Gulf states, Jordan, Iraq, Syria, Lebanon, Palestine, Yemen and Egypt. According to the 2003 agreement, the train will run on diesel at the speed of 120 kilometers per hour for cargo trains and 160 kilometers per hour for passenger trains.

As initially planned, the railway will be a multi use system including the transfer of fuel derivatives and gas from neighboring countries such as Iraq and Saudi Arabia, and transport of containers, phosphate and cement. In addition, the railway will be used for transferring general cargo. The railway might be used for the transport of passengers in case traffic justifies and requires that, said the minister, stressing that the network is primarily for transporting cargo.
A study prepared by Canadian consulting firm CPCS Transcom and released this week by the Transport Ministry suggests that JD2.8 billion be allocated for infrastructure, while JD1.4 billion be disbursed for purchasing rail fleet.

Mr Alaa Batayneh minister of transport said that the cabinet has approved the allocation of JOD 100 million from the 2009-2010 state budget to acquire the needed land for the railway's 1,086 kilometer track. He added that "A decision of immediate acquisition of land has already been taken as JOD 250 million worth of land is state-owned and we are looking into the best means to carry out the project before we present our recommendations to the Cabinet.”

The minister said that "In Syria and Saudi Arabia they are already working on the network from their side and in Iraq a tender was floated. Jordan has to do something now so we will not be lagging behind.”

Mr Batayneh said the government is currently seeking to secure JOD 4.3 million to finance the railway project, adding government subsidy will be required for implementation of the project.

Iran and Uzbekistan hold joint economic commission

It is reported that Iran and Uzbekistan 9th joint economic, commercial commission was held. Mr Masoud Mir Kazemi Iran's Commerce Minister, who headed Iran's delegation said that "Considering historical, cultural and religious commonalities we ask for expansion of ties in all fields with our brotherly country Uzbekistan."

Mr Mir Kazemi added that existing potentials in different fields of oil and gas industry, agriculture, mine, petrochemicals and other industrial sectors can promote commercial and economic cooperation between Iran and Uzbekistan. He continued that "We are both trying to increase commercial exchange level to one billion dollars, annually."

Mr Nasiruddin Najimev deputy minister of foreign economic and commercial relations said that "According to the existing statistics, commercial exchange level has increased five fold from year 2000 to 2007. He added that the commercial exchange between the two countries reached to 385 million dollars in the first six months of the year 2008, while it was 565 million dollars for the whole last year. He continued, "Currently some 117 Iranian investing companies are active in Uzbekistan."

The two sides are to consider and discuss the latest situation of bilateral cooperation in the fields of transportation, commerce, banking, energy, tourism and standard and ways to promote and develop them. It was said that documents on expansion of economic and commercial cooperation are to be signed at the end of the meeting.

Xiangtan ink SBQ plate supply pacts with HHI and STX Group

It is reported that Hunan Valin Xiangtan Iron & Steel Co Ltd has signed cooperation memorandums last week with South 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 million tonne to 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.

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 output value per annum after its coming on stream next Mar.

Mr Yu Zisu GM of the Pangang Group said the JV has started construction 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.”

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 and pipes etc with different models, and have annual production capacity of 80,000 tonnes.

(Sourced from MySteel.net)

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, 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)

Baosteel moves plate mill 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.

Juxing Group to suspend production in August

It is reported that Juxing Group plans to suspend production in August due to the shortage of raw materials resources and plans to resume production in September. The company had stopped production in May 2008 due to the equipment repair.

According to the officials of the company, its H1 crude output was 13,200 tonnes, of which the output in May was Zero, the output of seamless steel pipe was 5,025 tonnes and the output will be reduced due to the suspension production.

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 said that "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 Chinese state owned firms

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

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.”

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 attributed the shortage of funds to the tightening of credit, materials price hikes and reckless expansion.

Baosteel reduces steel supply lead time to key customers

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.

China Gengsheng announces a 5 year sales contract for fine precision abrasives

China Gengsheng Minerals Inc, a materials technology company in China with products capable of withstanding high temperature saving energy and boosting productivity in certain industries such as steel and oil, announced that it has signed its first sales contract for its fine precision abrasive products with a Taiwan based vendor. The term of the contract is five years, with 300 tonne to 500 tonnes delivered each month.

According to the contract, the Taiwanese customer will serve as Gengsheng's exclusive vendor in Taiwan. The Company is expecting the first shipment to begin in October 2008.

According to the release, the abrasives that Gengsheng is supplying are made from silicon carbide. These are ultra-fine, high strength pellets with uniform shape, and have applications in surface polishing and slicing of precision instrument such as solar panels. The Company expects to operate, by the end of this year, a facility that can produce 2,083 tonnes of abrasives per month.

Mr Shunqing Zhang chairman, CEO a& President of Gengsheng said that “Our first abrasives sales contract marks a milestone in Gengsheng's history. As we bring more high-end and higher-margin material products into our offerings, we expect to be better positioned to withstand the effects of rising raw material costs and increasing competition in the market place.”

Mr Zhang said that “Currently, the type of abrasives that we are launching is in high demand among solar-energy companies and they are mostly imported from Japan. We expect to see the burgeoning solar industry in China and elsewhere catalyze our rapid growth in this new product.”

WISCO moves on Zhoushan Liangtan Island iron ore transfer terminal

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)

Pig iron in Yunnan province remains weak

It is reported that pig iron market in Yunnan province is still weak in thin trading. Currently, steel making pig iron is corrected downward to CNY 4150 per tonne to CNY 4170 per tonne in Kunming and to CNY 4100 per tonne to CNY 4120 per tonne in Qujing district. Casting pig iron in Kunming prevails at CNY 4450 per tonne to CNY 4500 per tonne, keeping unchanged but lacking in available resources

Although steel makers in south areas are rarely affected in capacity by the Olympic Games, those who specialize in low end products appear inactive in purchasing pig iron, reflecting the falling steel product prices, difficulties in transportation and rising production cost. Some have ceased buying pig iron and referred to scrap steel. All this leads to the local shrinking demand of this resource and slack trading.

Iron plants have corrected the Ex-Work prices downswing many times but business does not appear looking up due to pressures in capacity and pessimistic expectations about the future development of the market with the majority of steel makers. Given current situation, local producers believe that the pig iron market will hardly take a turn for the better in short term.

(Sourced from MySteel.net)

Ansteel benefits from costs saving

It is reported that Ansteel created a benefit of CNY 106.62 million from energy saving and emission reduction efforts during the first half of this year despite of great challenges such as a nationwide transportation tension, lack of electricity supply and soaring prices of iron ore, coal, transportation and oil.

During the first half, the group hit records in 10 indicators such as charged coke ratio, comprehensive energy consumption per ton and fresh water consumption per ton. Meanwhile, it promoted nearly 400 technologies innovation and spread more than 180 advanced achievements related to energy conservation and emission reduction.

Wuyang Steel exports in H1 up by 108% YoY

It is reported that from January to June this year, Wuyang Iron and Steel Company totally realized export value of USD 127.334 million, up by 107.8% YoY, completed the whole year’s import and export goal advanced half of year. Of which, its steel plate export value was USD 122.7 million and import value was USD 4.53 million.

On June 30th, Hebei Iron and Steel Group were formally established by Tanggang and Handan Steel. According to the related people of Wuyang Iron and Steel Company’s import and export company, Hebei Iron and Steel Group will take back the operation right for import and export from Wuyang Steel, and unify to organize the import and export business.

Xinxing Pipe posts net profit of CNY 356 million in H1

It is reported that in the first half year, Xinxing Steel Pipe Company totally produced 600,000 tonnes of casting pipes and other pipes up by 27.7% YoY and produced 1.16 million tonnes of steel materials up by 9.9% YoY. The company realized sales revenue of CNY 10.61 billion in H1 up by 70.6% YoY and net profit of CNY 356 million up by 12.3% YoY.

In H1 of 2008, the products prices of the company greatly be enhanced, of which the steel materials prices up by 49%, and casting pipe price up by 39%, but the production cost also greatly increased, the steel material production cost up by 60% and the casting pipe production cost up by 44%, so the company’s profit was affected.

At present, the company’s Centrifugal casting pipe project has gotten positive progress, and will further improve the technology for the mass production.

Russian regulator investigating Raspadsky Coal and Evraz

RIA Novosti reported that Russia's Federal Anti Monopoly Service has launched a probe into the activities of the coal mining company Raspadsky Coal and the steel and coal mining business Evraz Holding.

The anti-monopoly service's press office said the regulator launched the probe over accusations that the companies have been abusing their dominant positions on the coking coal market.

The press office said "The prices of coking coal sold on the domestic market by Raspadsky Coal and Evraz Holding rose by about 100% from September 2007 to March-April 2008."

Raspadsky Coal, Evraz Holding, as well as under fire mining group Mechel, control over 50% of the Russian coking coal market.

TMK ships premium connections to Arcticgas

TMK announced that it has begun shipments of TMK-FMC Premium threaded casing pipe to Arcticgas.

TMK-Premium Service, a TMK company specialized in the production and supply of Premium connections to the oil and gas sector, supplied the FMC casing to the EniNeftegaz subsidiary.

An initial shipment of 870 tonnes of TMK-FMC casing with 177.8 mm diameter and 10.36 mm wall thickness was completed and total shipment volumes of premium threaded casing to Arcticgas are to reach 2,200 tonnes by September 2008.

TMK-FMC is a Premium casing connection with extra gas tightness properties and high tension capacity used for the construction and operation of vertical and deviated oil, gas and condensate wells and especially designed for corrosive applications.

In addition to the TMK-FMC series, TMK-Premium Service produces TMK-PF, TMK-GF, TMK-TTL and TMK-CS Premium casing connections and TMK-FMT Premium tubing connections.

ArcelorMittal Kriviy Rih net profit up by 43.3% YoY

It is reported that ArcelorMittal Kriviy Rih has increased its net profit by 43.3% YoY to EUR 5.36 billion sales by 13.6% YoY to EUR 44.2 billion and operational income by 15.6% up to EUR 6.69 billion.

Ukrainian pipe import quota comes into force

It is reported that the government of Ukraine passed a resolution on the import of seamless casing pipes and compressor pump pipes for three years independent of country of origin.

The quota is set at 14,504 tonnes. In October 2009 the size will be increased by 5% and from October 2010 by 10%. The commission empowered by the government confirmed that Ukraine’s pipe industry had been damaged by imports in 2004 to 2006.

As per report, the drive for a quota was initiated by Interpipe Corp. and its plants in particular NITR and NVTR will be the beneficiaries of this decision.

UC RUSAL makes statement on merger talks with Norilsk

UC RUSAL has announce that regarding the information released by some media about alleged talks being underway between Mr Oleg Deripaska and Mr Vladimir Potanin on merging of UC RUSAL and Norilsk Nickel.

UC RUSAL states the following.

Mr Oleg Deripaska is not holding any talks with Mr Vladimir Potanin about a possible merger of UC RUSAL and Norilsk Nickel. No confidentiality agreement has been discussed or signed between them.

UC RUSAL considers its acquisition of 25% plus two shares as a strategic investment and still intends to pursue all legal remedies to protect its interests as the company’s shareholder.

Bogdan H1 2008 net sales up by 140% YoY

It is reported that Bogdan Automotive Plant reports its H1 2008 results. Net sales increased by 140% YoY to USD 754 million and net income jumped by 572% YoY to USD 29.7 million. However, it should be noted that the cost of goods sold reached 91% of net sales during whole of H1 2008.

Millennium capital analyst said that ‘We see these results, which are even a little bit better than our forecasts, as POSITIVE news for LUAZ and hope the addition of CKD assembly, which started at the end of June, will become significant in H2 2008 and that profitability ratios will be better than in H1 2008.’

(Sourced Millennium capital)

Kazakhstan to lower profit tax to 15% to 20%

Interfax cited Mr Karim Masimov PM of Kazakhstan said at a meeting between the tax authorities addressing the performance of the tax bodies in the second half of 2008 that the Kazakh government has proposed to make a number of amendments to the Tax Code, including lowering the profit tax rate for enterprises from 30% to 15% to 20%

He said that in addition, the government proposes to introduce a flat social tax rate of 11%. There was a time when we had an individual progressive income tax, and then we introduced a flat rate. Now we are making the social tax rate flat.

Mr Karim Masimov said there are also plans to introduce a tax on expensive property for private individuals. He said that "We believe the taxes on the property of private individuals, on expensive real estate should be raised."

Among other things, there are plans to introduce a tax on private individuals' real estate worth more than KZT 30 million and a tax on legal entities' real estate to the amount of 1% to 2%.

Russian Railways net profit in H1 2008 down by 26% YoY

Interfax Russian Railways posted a net profit of RUB 18.8 billion in the first six months of 2008 down by 26.3% YoY compared with the profit in the same period last year

Mr Vladimir Yakunin president of RZD said that the profit last year was inflated with the proceeds from sale of stakes in subsidiaries.

Net profit in 2007 amounted to RUB 84.5 billion. Revenue from core operations totaled RUB 975.6 billion.

LUKoil H1 of 2008 net profit up by 43% YoY

RIA Novosti reported that LUKoil, Russia's largest crude producer net profit calculated to Russian Accounting Standards in H1 of 2008 up by 42.5% YoY to RUB 51.4 billion.

LUKoil, which accounts for about 1.3% of global oil reserves and 2.3% of world crude output, said its net profit in the second quarter of 2008 increased 190 QoQ to RUB 38.17 billion.

LUKoil attributed its net income growth to rising global oil prices, which outpaced the growth in export duty rates in the second quarter of 2008.

LUKoil's US GAAP net consolidated profit increased by 27.1% YoY in 2007 to USD 9.51 billion and its oil output grew 1.4% YoY to 713 million barrels.

Outokumpu completes acquisition of SoGePar

Outokumpu has signed an agreement to acquire the SoGePar Group, an Italian distributor of stainless steel from its owners on April 23rd 2008. After having received regulatory clearances the transaction has today been completed. Outokumpu paid EUR 215 million in cash and took on debt in the company in the amount of EUR 120 million.

The work to integrate the SoGePar units into Outokumpu's sales and marketing organization will now go ahead at full speed. Appropriate joint integration teams have been established to facilitate a smooth transition. SoGePar will be consolidated into Outokumpu's accounts as of August 1st 2008.

SoGePar currently operates stainless steel service centers in Castelleone in Italy and in Rotherham in the UK. Additionally SoGePar has stock operations in Italy, the UK, Belgium, Finland, France and Ireland, as well as a commercial office in Germany and a representative office in Turkey. Sales of the SoGePar Group in 2007 amounted to EUR 560 million, operating profit to EUR 44 million and deliveries to 134 000 tonnes.

The acquisition of SoGePar enables Outokumpu to better serve its customers through the expanded service center network, expand its customer base and positively develop end user and project sales which in turn should bring more stability. The acquisition is a determined step towards Outokumpu's strategic ambition of building a more stable and profitable business model for the Group. Furthermore, it will significantly strengthen Outokumpu's position in stainless steel distribution in Italy, which, together with Germany, is the largest market for stainless steel in Europe.

Following the acquisition Outokumpu's Stock & Processing capacity in Italy and the UK will be in excess of 240000 tonnes. In total, with the SoGePar acquisition and the on going service center investments, Outokumpu's global annual stock and processing capacity will increase from the current 300,000 tonnes to in excess of 740,000 tonnes by 2010.

Jinchuan to foray into stainless steel production

Bloomberg reported that Jinchuan Group Limited may expand into stainless steel production to boost sales. As per report, it will target so called 300 series stainless steel, which may be the most competitive product line. The 300 series products typically contain 8% nickel and 18% chrome.

Jinchuan suspended preparatory work for an initial public offering in June after China's benchmark equity index slumped and nickel prices dropped. Domestic demand for stainless steel used in construction is slowing as China reins in economic growth to prevent overheating.

It said that the 300 series products cannot be substituted in industries such as machinery, petrochemicals and aerospace and was of high quality. There was a glut of lower quality stainless products.

(Sourced from Yieh.com)

Directory of Stainless Steel Supply Chain in China

China remained the world's number one producer of stainless steel in 2007 accounting for more than one quarter of 27.6 million tonnes of global output. China had overtaken Japan as the world's biggest stainless steel producer in 2006 with 6.6 million tonnes in 2006 up by 21.7% YoY. Japan followed China as the second largest producer in 2007 with an output of 3.7 million tonnes. In 2006, China's per capita stainless steel consumption hit 4.6 kilograms, rising above the world average of 4.3 kilograms.

China produced 7.206 million tonnes of stainless steel in 2007 up by 1.906 million tonnes or 35.96% YoY. Import volume hit 1.698 million tonnes down 32.08% YoY and export volume reached 1.303 million tonnes up by 44.78%. Thus net imports totaled 395,000 tonnes including 204,000 tons of semi products and 115,000 tons of narrow plate and exports of HR sheet reached 328,000 tonnes resulting in self sufficiency rate climbing by 15.6% to 75.6%. However, growth of apparent consumption slowed down. Apparent consumption recorded 6.58 million tonnes in 2007 up 630,000 tonnes or 10.59% YoY but 3.61% lower than that in 2006.

As one of the world's fastest growing economies, China has become the most happening place among world steel market over last few years and thus is in the radar of most of global players associated with stainless steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

Published in July 2008, “Directory of Stainless Steel Supply Chain in China” is one of the top sources of information available on stainless steel related companies in China. It is one of the most comprehensive and accurate directory of Chinese companies that have ever been published. This powerful report is your connection to the entire Chinese stainless steel industries sector.

This report will be extremely useful to businesses that deal specifically with companies from stainless 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 Chinese stainless 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 report covers name and product details of 246 of Chinese stainless related firms in Alphabetical order and product category based. Look at the information you'll get in this directory

• Company name - 246 entries
• Address – 246 entries
• Contact person – 241 entries
• Mobile number – 168 entries
• Phone number - 246 entries
• Fax number - 246 entries
• Email - 246 entries
• Web site - 243 entries
• Category
• Products & Services

Report Summary:
1. Published: July 2008
2. Format PDF File (Delivery by Email on receipt of payment)

Price: USD 800 or equivalent in INR
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You can order your copy at reports@steelguru.com

CITIC 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 could not 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 did not buy. The Shenzhen offering raised about CNY 3.55 billion the biggest in China since May.

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 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.''

Mr Strzhalkovsky accepts nomination for Norilsk Nickel GD

Interfax citing Mr Vladimir Strzhalkovsky Russian Federal Travel Agency chief as saying that he has agreed to be nominated for general director of MMC Norilsk Nickel.

Mr Strzhalkovsky told Interfax that he had accepted the proposal after consultations with the top political leadership. He said that "I have accepted Norilsk Nickel's proposal, because this is a major, public, and stable company, which has no conflicts with the authorities."

Mr Strzhalkovsky said "The final say in this issue rests with the board of directors, whose session is scheduled for August 8th. He said that "Only they can accept or reject a candidacy."

Froch Enterprise to invest more into Chinese subsidiaries

It is reported that, in order to enlarge the stainless steel pipe market share in China, Taiwan’s Froch Enterprise Company Limited is willing to pour more investments into its subsidiaries in China.

Froch said that it will increase capital by a cash infusion of USD 8 million for a total of USD 25 million at Wuxi Huixin Stainless Pipe Company, during the period from August 1st 2008 to March 31st 2009.

(Sourced from Yieh.com)

Sandvik launches hyper duplex SS tube Sandvik SAF 3207 HD

Sandvik Materials Technology has launched a hyper duplex stainless steel tube material which is designed to im