Indian domestic steel prices to recover soon - Mr Roongta

ET reported that Indian domestic steel prices, which are suppressed INR 10,000 per tonne and INR 15,000 per tonne as compared to international levels, would see remarkable recovery in coming months especially as Indian demand for steel moving faster than the growth in production.

Mr SK Roongta chairman of Steel Authority of India Limited told ET said that the domestic industry is yet to see the peak of steel prices as prices has been artificially controlled by companies despite an overall surge in input prices.

He said that "I feel that the days of low steel prices are over. This is the message that should be given out. I do not see resource prices falling sharply even after the present wave of price rise halts."

He said that "The steel market has changed significantly in the last 12 months. Coking coal prices have shot up by over 200%, scrap price remains high while iron ore prices under negotiated deals have gone up 70% to 95%. Even with this pressure, the industry has put voluntary cap on prices. This situation is not sustainable for a long period."

Mr Roongta said that "While we have to live with higher steel prices now, the solution lies in increasing the production capacity. This could only check any abnormal increase in prices based on speculation and perception of a shortage. I feel that too much should not be made from the present rise in inflation. We should take positives out of the rising inflation as it should make us strive for efficiency and cutting unproductive expenditure. There is ample scope with everyone to cut cost."

Pencil ingot dips further at Mumbai

It is reported that pencil ingot continued downward slide at India’s most important market, Mumbai on Monday

Prices are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

The effect already was witnessed by long products and is likely to be more pronounced in coming days
(Sourced from www.steelprices-india.com)

L&T to split ECC division into 4 companies

PTI reported that Larsen & Toubro has decided to split its engineering construction and contracts division that has seen sharp jump in business in recent years to increase efficiency in managing growth.

Mr J Ganguly executive VP of L&T said that "We have decided to split the ECC divisions’ functional areas into four companies. ECC will be the holding company for it." He added that the functional restructuring has been effected since July 1st 2008 and the four divisions have begun work independently, though some manpower allocation for the departments was yet to be completed.

Mr Ganguly said that "With the business becoming too big we need to take steps to reduce the management response time to act quickly to the market. And this is possible when a company is small. We may take these four companies of the ECC division to the public in the next 2 to 3 years after attaining a critical mass of USD 1 to USD 1.5 billion each."

The ECC is the largest construction company in India and has ranking globally operating in four major areas building and factories, infrastructure, power and minerals, metals & water. The ECC division contributes nearly 50% of L&T's revenues.

Beside ECC, L&T has Engineering & Construction Projects, Heavy Engineering, Electrical & Electronics, Machinery & Industrial Products and Information Technology & Engineering Services.

Secondary market prices at Mandi slide further on Monday

It is reported that the market prices of secondary steel makers in North India’s important trading and manufacturing center Mandi Govindgarh continued their downward slid on opening of market on Monday.

The details of market price movements on Monday are given below

Prices are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

During the second fortnight of June 2008, the market become overheated under the speculation of impending price hikes by Indian steel majors, which were dispelled last week, resulting in downward movement.

But on the other hand, global prices continue to remain high driven by strong demand and in a way raw material cost pressures. Thus the final level of market prices remains anybody’s guess.

(Sourced from www.steelprices-india.com)

Mr Baalu reviews the performance of New Mangalore Port

The rail bound traffic in New Mangalore Port has grown by 105% YoY from 3.018 million tonnes in 2006-07 fiscal to 6.185 million tonnes in 2007-08 fiscal. There has also been a steady growth in container traffic which has risen by about 24% YoY in 2007-08 over 2006-07. This was revealed at a meeting chaired by Mr Thiru TR Baalu union minister of shipping, road transport & highways.

Mr Baalu directed that in view of the growth in container traffic, steps should be taken to plan a container terminal at the New Mangalore Port. He said that preliminary discussions should be initiated with various oil PSUs and companies for exploring the possibility of setting up of an LNG terminal at NMPT.

He was also informed that the important scheme of capacity addition of five million tonnes to the port with the commissioning of deep draft multi purpose general cargo berth number 14 has been completed under the National Maritime Development Program. With a draft of 14 meters, this has enabled handling of vessels up to 80,000 DWT.

Mr Baalu directed the chairman of NMPT to take measures to further improve the ship berth day output in the Port to ensure that the manually handled cargo performance improves further. He also directed that measures should be taken to expedite the project for mechanization of cargo handling at berth number 14.

The traffic in the NMPT has grown from 32 million tonnes in 2006-07 to 36 million tonnes in 2007-08. The NMPT has taken up a number of initiatives to add infrastructure during the previous year. It has the second lowest manpower among the Major Ports after the Jawaharlal Nehru Port. Computerized bio metric fingerprint time attendance system for the Port workers has boosted the productivity in the port. A state of the art modern cruise lounge has also been set up in the port providing excellent facilities to the cruise passengers.

TATA Corus deal propelled by ArcelorMittal merger

Mr Aditya Mittal CFO of ArcelorMittal feels that that the acquisition of Corus by TATA Steel may have never happened but for ArcelorMittal.

Mr Mittal during a CNBC TV 18 interview said that "If the deal had not gone through, I do not think the steel industry would be where it is today, consolidation would not have happened and people would be very careful in doing deals. Yes, it may not have."

Mr Mittal said that "Corus was very clear, once we had succeeded, that they need to do something about their future and they began discussions with TATA very wisely. It was very interesting. The day we became successful, there were 10 steel companies in the world that immediately instituted a defense mechanism."

He also felt that " Had the ArcelorMittal deal failed to materialize. The world would have been a different place, so would have been the steel industry. It has happened much better than any of us expected."

It may be noted that TATA Steel launched an offer to acquire Anglo Dutch steel maker Corus in October 2006, within four months of Mittal Steel successfully completing a transaction with Arcelor to create an entity that controls nearly 10% of the global steel production.

JNPT channel dredging may face fresh delays - Report

Exim News Service reported that Jawaharlal Nehru port’s INR 800 crore project for dredging and widening of the main harbor channel appears set to face fresh delays in the wake of the port deciding to scrap the on going tendering process and to go in for fresh tenders as the latest bid by a foreign dredging house exceeded the port’s estimated outlay for the project.

Though it had finalized the successful bidder earlier this year, JNPT could not award the work as it was unable to get the required clearance from the ministry of shipping for the latest bid. The bidder had also threatened to take back its bid, claiming that the delay in finalization of the project had led to an increase in the project cost, sources said. This has now forced the port to flag off a fresh tendering process.

For JNPT, this project, which is aimed at accommodating bigger vessels in the port, is vital as shipping lines are increasingly deploying bigger container vessels to gain economies of scale. Thus, with increasing trend towards larger container ships, draught has become an important factor in the choice of port by shipping lines. JNPT may lose out in the race for getting a bigger slice of India’s increasing container traffic, as at present vessels having a draught of 12.5 meters have to navigate through Mumbai harbor channel and JNPT channel, making use of the tidal window.

Despite its draught constraints, JNPT handled a throughput of 55 million tonnes, including non container cargoes, last fiscal, registering a 24% YoY growth, thanks to the boom in containerized cargoes. In terms of TEU units, JNPT handled 4.06 million TEUs, reflecting a 23% YoY growth.

(Sourced from Exim News

Rebar prices soften by 2% on opening at Chennai

TMT
Fe 415

Prices are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

(Sourced from www.steelprices-india.com)

L&T bags INR 446 contract from JSW Power Transco

Projects Today reported that Larsen & Toubro has bagged an order worth INR 446 crore from JSW Power Transco for evacuation of power from the 1,200 MW Jaigad coal based power project, being set up by JSW Energy in Maharashtra.

The Jaigad Karad and Jaigad New Koyna 400 kV transmission lines will have a length of 169 kilometers. The scope of work involves survey, supply of components like transmission line tower, conductors, insulators, hardware accessories and construction of the line across two sections.

The work order is expected to be completed within 18 months.

Rebar prices at Mumbai see further correction

It is reported that amid low buying by end users, rebar prices at Mumbai witnessed small correction on the opening of market

TMT
Fe 415

Prices are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

As the fall in pencil ingot is much higher, further correction is likely in coming days. This is also attributed to sentiments resulting in lower buying by end users, who are expecting that governmental directives will not allow price hikes in immediate future.

(Sourced from www.steelprices-india.com)

Mumbai HDG prices remain on downward trend

Prices are in INR per tonne
Inclusive of ED and VAT
Delivery is FOT

(Sourced from www.steelprices-india.com)

PFC Consulting may float JV next month

It is reported that PFC Consulting Limited is likely to form a JV with an international company in August 2008 to provide technical expertise to power utilities. It has also formed 3 special purpose vehicles or companies floated to execute specific projects for power projects in Orissa. The SPVs would look after the selection of developers for the 3 coal linked projects, which will provide nearly 50% of power generated to Orissa.

PFC is also selecting developers for the thermal project linked to the Maurya coal block in Jharkhand. The 3 beneficiary states for the project would be Jharkhand, Uttar Pradesh and Bihar. It has consultancy assignments in Punjab, including for Talwandi Sabo Power Project, Rajpura Power Project and Nabha Power Limited. It also has two projects in Rajasthan to which it would provide services related to land technology and fuel.

PFC Consulting till date has assignments worth INR 80 crore and plans to open consultancy site offices in Jaipur, Mohali and Ranchi. PFC is the nodal agency for the central government’s ambitious ultra mega power projects. Three UMPPs namely Mundra, Sasan and Krishnapatnam were under the purview of PFC and the rest of the UMPPs are with PFC Consulting.

PFC Consulting is also in talks with Jharkhand for unbundling of the state electricity board and is also looking after the re organization of the Bihar State Electricity Board, including human resource planning, manpower distribution among new entities and other related work.

New industrial plot policy pushes land prices up in Uttarakhand

BS reported that Uttarakhand government has announced the new land allotment policy for industrial development, a move that has sent land prices soaring by nearly 200%.

Under the new policy, the price of an industrial plot will now be 125% more than the last highest bid price in that particular notified industrial area. This is being interpreted as nearly 200% increase in industrial land prices since the last bidding process in 2006. When one buys land in Pantnagar, the government will charge a premium of 125% on the last highest bid price, which was INR 3,600 per square meter in 2006.

The existing base rates at both the Pantnagar and Haridwar industrial estates are INR 2,500 per square meter. The land prices in both the estates have appreciated 400% since 2004. In 2004, the land price was INR 560 per square meter, which rose to INR 1,500 per square meter in 2006.

Sources said that a substantial chunk of land is still available at key industrial areas like Hardwar and Pantnagar, which are being developed by the State Industrial & Infrastructure Development Corporation of Uttarakhand Limited. According to an estimate, nearly 300 acres is available in both the Hardwar and Pantnagar industrial estates.

Mr BC Khanduri chief minister has indicated that his government would not go for open bidding as far as the allotment of industrial plots was concerned.

With the concessional industrial package coming to an end on March 31st 2010, the government is keen to make money since scores of industries are ready to buy more land. Nearly 100 firms including Bajaj Auto, Nestle and TATA Motors have approached the government to buy land in the notified areas of Pantnagar and Haridwar for their expansion programs.

Fire at Kalamboli steel market in Navi Mumbai

PTI reported that a fire broke out at the steel market in Kalamboli in the neighboring city of Navi Mumbai.

A fire official from the Kalamboli fire brigade said that the fire fighting operations had begun at around 0500 hours and operations were still on yesterday.

He added that the market place was destroyed by the fire but there were no injuries or deaths due to it.

India Cements defies slowing industry trend

At a time when the domestic cement industry is reeling under the pressure of rising input costs and declining net realization per tonne of cement, India Cements has bucked the trend by registering a 6.32% rise in net realization in June quarter.

The realization is squeezed by around 5% to 10% on an average in the financial year 2008 owing to higher input costs and inability to pass on the cost increase to the end consumers.

Mr N Srinivasan VP & MD of India Cements said that "There has been no price reduction by the company. To offset the soaring input costs, we have increased the prices marginally in the June quarter. The net realization of the company in 2007-08 was INR 2,784 a tonne and in the current quarter the realization is INR 2,960 a tonne."

The 196 million tonne cement industry is adding around 30 million tonne of fresh capacity in the financial year 2009.

Mr Shyam Sundar Prasad appointed as MD of JSMDC

Ranchi Express reported that former Sahebganj Deputy Commissioner and 1994 batch IAS officer Mr Shyam Sundar Prasad was appointed MD of Jharkhand State Mineral Development Corporation.

His appointment was notified after governor Mr Syed Sibtey Razi gave his mandatory approval to Mr Prasad’s appointment.

BHEL bags INR 2,500 crore contract from APGENCO

Projects Today reported that Bharat Heavy Electricals Limited bagged an order worth INR 2,500 crore from Andhra Pradesh Power Generation Company to provide boilers for a 1,600 MW coal based power project at Krishnapatnam in Nellore district.

BHEL has out bidded the JV of Larsen & Toubro and Mitsubishi Heavy Industries for the project.

Assam Carbon blames workers for lock out

BS reported that Assam Carbon Products Limited, whose plant in Birkuchi has been under lock out since November 2007, has blamed the employees union for the impasse.

Mr GP Chawla GM of ACPL said that "The union is still in no mood to resolve the problem through discussions and is using the delaying tactics and is engaged in blame game."

He added that the state government has failed to initiate and termed it as illegal strike resorted to and lawlessness created by a section of workmen led by a most unreasonable union.

He said that the labor union disregarded two directives of labor office of government of Assam dated November 23rd 2007 and November 27th 2007. He added that the management was willing to lift the lock out but could not do so due to an adamant union.

The management of ACPL is not ready to accept the demand of the employees' union of equivalent wages as advance for the period of no work.

Shree Cement launches rural initiatives

BS reported that, with the recent slowdown in the real estates market and upcoming additional capacity of 3 million tonnes, Shree Cements has turned its focus on the relatively untapped rural market to be the next growth driver for the company in coming years.

AS per report, rural market's share in the company's overall sales has witnessed a steady increase of 7% annually in last 2 years and is expected to touch 10% annual average growth during the next 5 years.

It will manufacture an additional 3 million tonnes in 2 new factories in Chhattisgarh and Madhya Pradesh with an investment of INR 2000 crore. It has chalked out an expansive rural marketing plan for marketing this additional capacity in the villages of Rajasthan, Haryana, West Uttar Pradesh, Punjab, Chhattisgarh, Madhya Pradesh and Gujarat. It had plans of taking up its cumulative capacity to 20 million tonnes per annum by 2012.

Shree Cements has roped in a specialized agency that will help it in Hindi heartland markets. At a micro level, rural marketing entail drives will entail increasing retail presence inside smaller villages, kasbas and mini towns apart from visual merchandising at retail points together with rural and highway wall painting exercises that could make the brand visible in markets where mass media still has a poor reach.

Coupled with this, the company is also launching mass contact programs it called identification of purchase stimulators in the rural market. This will include conducting product training programs for masons, local construction contractors among others.

Mr HM Bangur MD of Shree Cement said that "We have adopted a lot of below the line marketing tools to drive rural growth. We have earmarked INR 5 crore this year towards rural marketing."

Indian domestic iron ore spot prices surge by 10% (WEEK 27)

We had reported on June 29th 2008, that after Orissa Mining Corporation’s latest quarterly tender on for sale of iron ore during July to September 2008, the market prices of iron ore in Orissa are expected to surge by INR 500 per tonne

As per reports received on July 1st 2008, the prices of iron ore in Burwil area of Orissa have gone up by INR 500 per tonne.

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63 and INR 27 per tonne for Fe content of 65%

(Sourced from www.steelprices-india.com)

Indian domestic plate price trends (WEEK -27)

PLTS
GRB
12-20x2.5

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

BPCL inks 50:50 JV with Kenya Pipeline for LPG bottling plant

Projects Today reported that Bharat Petroleum Corporation Limited has entered into a 50:50 JV with Kenya Pipeline Company for setting up an LPG bottling plant at Nairobi in Kenya.

The plant will have a capacity of 2,000 tonnes per annum, with LPG coming from Mombassa in Kenya. The initial investment of the project is estimated to be USD 15 million and will be funded through a 70:30 debt equity ratio.

Domestic steel pricing trends in India

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

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

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

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

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

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

EUROFER urges for a fair emissions trading system for steel industry

The European environment and energy ministers met in Paris with climate change and energy as key issues and the European Parliament will decide on reading on the inclusion of aviation into the European emissions trading system. The heart of the EU’s climate change policy, the ETS, is currently under revision aiming at reducing EU industry emissions by 21% in 2020 compared to 2005, which is more than 30% compared to the Kyoto reference year 1990. In parallel, the European institutions negotiate on a directive requiring Member States to reduce 10% in other sectors, like transport, buildings, agriculture and waste.

EUROFER, the European Confederation of Iron and Steel Industries last week pointed out that the proposed measures lead to a huge disparity in the burden and an unfair treatment of manufacturing industry, the only sector which widely reduced emissions since 1990.

Mr Gordon Moffat director general of EUROFER said that “Measures which are not related to the technical potential to reduce emissions and auctioning in particular will harm these industries and lead to a slow but steady de-location to countries outside the European Union and the loss of tens of thousands of jobs with consequences for the whole EU economy.”

He added that “If we have to compete on CO2 certificates with the power sector and aviation, it will be very unlikely that we receive sufficient allowances to even satisfy the needs of the best performing steel installation in Europe.”

Mr Moffat said that the power sector and aviation do not have to compete globally and they can pass on their costs fully to the consumer while most manufacturing industries are exposed to fierce international competition and have a wide range of down-stream users before the product reaches the end-consumer. It would therefore not be comprehensible that aviation, which has increased its CO2 emissions between 1990 and 2005 by 96%, will not have to reduce emissions until 2020, while the steel industry, which reduced more than 20%, now has to reduce a further 21%. Growth of aviation can not be an argument for giving aviation an advantage over other sectors. The European steel production is growing steadily over the last years and in 2007 some regions have seen an increase in steel employment for the first time since the seventies. The design of the European emissions trading system must not prevent the production of steel which the European economy requires.”

Auto makers resist surcharges on steel supplies - WSJ

The Wall Street Journal reported that in an effort to curb the relentless rise in steel prices and bolster their own frail finances, some auto makers are beginning to push back on price increases, saying they won't pay surcharges on agreed upon supply contracts.

The resistance is one of the first strong signals to steelmakers that their hardest hit customers have reached a tipping point and may not be able to withstand higher prices.

The report added that some auto makers are threatening to fight the additional charges in court, saying that financial terms of a contract can not be altered, according to people familiar with the matter.

German crude steel output in June 2008 up by 2% YoY

According to Germany’s Federal Statistical Office, German crude steel production in June was 4.18 million tonnes up by 2% YoY, while pig iron output increased by 1.1% YoY to 2.61 million tones.

The Federal Statistical Office said that on a month on month basis, crude steel production was up by 0.7% MoM, while pig iron production decreased 0.2% MoM.

It said that adjusted for seasonal and calendar effects, crude steel production fell by 0.4% in June from May.

SSI plans steel complex and port in Thailand

The Nation reported Thailand’s Sahaviriya Steel Industries Pcl is planning to invest as much as USD 7 billion in an industrial steel estate and Asia's deepest seaport as part of its 50 year expansion plan.

The report cited Mr Win Viriyaprapaikit president of Sahaviriya Steel Industries as saying that the port facilities will cost about USD 1 billion, while the steel estate will be located in Chumphon, a province located south of Bangkok.

The report said that Sahaviriya is seeking to tap rising global demand for steel, including from Asia. It said that demand in Thailand is forecast to double to 24 million tonnes a year over the next 10 years.

Able UK bags Clemenceau dismantling contract

United Kingdom based Able UK has been awarded the contract to perform the dismantling of the Clemenceau, a French former aircraft carrier.

The French Ministry of Defense said that the vessel is expected to arrive at the company’s Teesside Environmental Reclamation and Recycling Centre at Able’s Seaton Port in Graythorp, later this summer.

It said that dismantling and recycling of the material will be undertaken starting this summer. The vessel will be dismantling alongside a number of other vessels, including US ships that came from the United States James River Reserve Fleet.

The French government was forced to recall the aircraft carrier because Indian government denied its entry at a ship breaking yard in Alang on May 18th 2006.

The Clemenceau, officially known as Q790 since being decommissioned, has proved to be one long toxic headache for France since being taken out of service in 1997. The ship was first sold to a Spanish firm, which should have taken out any hazardous asbestos waste before breaking up the vessel. But the company discovered that could not be done within the EU because of health and safety laws. The Clemenceau then headed for Turkey but had to be brought back. A German firm took up the challenge and sent her to India.

Japanese steel exports in July to September seen at 5.87 million tonnes

According to a survey by the Japan’s Ministry of Economy, Trade & Industry, Japan various steel companies plan to export a total of 5,870,000 tonnes of ordinary steel products in July to September 2008 or in the second quarter of fiscal 2008, a flat level compared with the quarter before.

According to the ministry of the planned total exports, five integrated steelmakers together account for the first 5,509,000 tonnes up by 1.3% QoQ and 33 electric steelmakers the remaining 361,000 tonnes down by 15.7%.

It said that the integrated steelmakers' planned exports break out by main destinations as 1,444,000 tonnes for South Korea, up by 2.3% from a quarter ago; 1,215,000 tonnes for China, down by 3.6% and 163,000 tonnes for the USA up by 1.2%.

Among destinations of the electric steelmakers' planned exports, South Korea accounts for 151,000 tonnes down by 17.9% from a quarter ago; the USA 52,000 tonnes down by 8.8%; China 14,000 tonnes down by 22.2% and others 144,000 tonnes down by 14.8%.

Meanwhile, Japanese export volumes of semi finished steel products are projected to total 1,019,000 tonnes in July to September 2008, down 11.2%QoQ from a quarter ago. By destination, the projected total breaks out as 345,000 tonnes for South Korea, down by 25.5%QoQ; a flat 38,000 tonnes for the USA and 636,000 tonnes for others down by 0.8% QoQ.

(Sourced from TEX Reports)

Feng Hsin leaves rebar and section prices unchanged

Taiwan Feng Hsin Iron & Steel has announced to keep its rebar and steel section prices at the same level this week, after a price cut by TWD 600 per tonne on rebar in the last two weeks.

Feng Hsin Iron & Steel’s list price for rebar and steel section is now at TWD 31,900 per tonne and a discount of TWD 600 per tonne on steel section has been canceled. Besides, Feng Hsin has reduced its scrap purchases price by TWD 400 per tonne to TWD 17,600 per tonne this week.

(Sourced from YIEH)

Sahaviriya Steel sees 2008 sales up by 67% YoY

Reuters reported that Thailand's largest hot rolled steel coil maker Sahaviriya Steel Industry’s 2008 sales is expected of about THB 50 billion (USD 1.49 billion) up by 67% YoY from last year's THB 30 billion.

Mr Win Viriyaprapaikit president of Sahaviriya attributed the revenue increase to higher production and rising steel prices.

BMZ to sell fittings through Belarusian Universal Commodity Exchange

The Belarusian Universal Commodity Exchange is going to conduct the first auction of fittings of the Belarusian Steel. The auction is scheduled for July 14th 2008. As per report three lots, 400 tonnes of fittings each will be auctioned. The delivery is scheduled for August.

The Belarusian Universal Commodity Exchange plans to sell this product on a monthly basis. The auctions will be conducted between the 10th and 15th each month.

Accreditation at the exchange is obligatory for participation but it is possible to use the services of brokers, who are registered at the Belarusian Universal Commodity Exchange Metal Production Department. The deadline for applications to purchase the fittings is two days before the date of an exchange auction.

The Belarusian Universal Commodity Exchange was established in May 2004. The goal of the exchange is to improve the mechanism of state regulation of domestic and foreign trade, to develop formal wholesale market, to give economic entities an equal access to the market and create additional economic stimuli.

Tomra acquires Australia based UltraSort

TiTech AS, a subsidiary of the Norwegian recycling equipment company Tomra Systems ASA, has acquired Australia based UltraSort for around USD 31.5 million.

UltraSort is a provider of advanced recognition and sorting technology to the mining industry. It has two offices in Australia: one in Perth, the other in Sydney. UltraSort has sold more than 50 of its sorting systems worldwide, with most of the systems in Canada, Africa and Australia.

By acquiring the company TiTech has been able to expand and complement its portfolio of processing technology.

Samsung Heavy bags USD 705 million drill ship order

Reuters reported that Samsung Heavy Industries Co has won a KRW 739.2 billion (USD 704.9 million) order to build a drill ship for an unidentified shipper in the Americas.

Samsung Heavy Industries in a disclosure to the Korea Exchange said that the vessel will be delivered by the end of January 2012.

ALJ revenue in 9 months up by 19.85% YoY

ALJ reported that for the nine months ended June 30th 2008 it posted revenue of USD 133.4 million up by 19.85% YoY as compared to revenue of USD 111.3 million for the nine months ended June 30th 2007.

For the quarter ended June 30th 2008, the revenue was USD 51.1 million as compared to revenue of USD 37.5 million for the quarter ended June 30th 2007.

ALJ is the parent company of KES Acquisition Company, which had acquired Kentucky Electric Steel in 2003, the owner and operator of a steel mini mill near Ashland in Kentucky State of US.

STX Shipbuilding wins USD 117.3 million order

Yonhap reported that South Korean shipyard STX Shipbuilding Co has won an order worth KRW 122.3 billion (USD 117.3 million) from a European shipping company to build two bulk carriers.

STX Shipbuilding in a regulatory filing said that the deal calls on STX Shipbuilding to deliver the vessels by April 2011. But it did not disclose the name of the European company.

Hyundai raises price for small cars in US on material costs

Bloomberg reported that South Korea’s Hyundai Motor Co raised prices for its Elantra and Accent small cars exported to the US to cover the rising cost of steel and other materials.

Mr Jake Jang a spokesman said that Hyundai boosted basic prices for the Elantra by USD 300 and for the Accent by USD 200 as of July 1. He added that the retail price for the Accent is USD 10,775 and USD 13,625 for the Elantra.

Earnings from Hyundai's 1.3% gain in US sales last month are being eroded by the rising cost of raw materials. The price of benchmark hot roll coils used to make auto bodies and parts has been raised three times since February to KRW 850,000 per tonne at POSCO.

ArcelorMittal share buyback program status report

ArcelorMittal said that under the new share buy back program as announced on December 12 and on December 18th 2007 and the share buy back mandate as announced on July 1st 2008, hereby declares that it has repurchased 5,308,871 shares from June 30th until July 4th 2008.

The shares were repurchased at an average price of EUR 56.0903 and for a total amount of EUR 297,776,184.

Domestic steel prices in important and emerging markets

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

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

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

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

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

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

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

Syrian billet output to reach 1.15 million tonnes in 2009

It is reported that Syrian steel billet production is estimated to reach 1.15 million tonnes in 2009 as 2 new mills will be commissioned soon.

As per report, Joudco steel has spent around USD 94 million to invest a new plant with output of 512,000 tonnes per year. Another plant, Syrian Metal Industries has invested some USD 155 million to reach an annual capacity output of 630,000 tonnes.

Syria produced around 70,000 tonnes of billet a year all by the General Company of Iron and Steel Products.

(Sourced from Yieh.corp)

Root Steel formed for PEB business in Egypt, Syria and UAE

Arabian press reported that Construction Products Holding Company and Arabian Roots have formed 70:30 JV called Roots Steel to produce pre engineered steel structure buildings booming markets in Egypt, Syria and the United Arab Emirates.

Under the agreement, 3 factories will be set up in Cairo, Damascus and Abu Dhabi at a total investment of USD 80 million per factory and USD 27 million per factory. The total production capacity envisaged is 300,000 tonnes per year or 100,000 tonnes per factory.

CPC offers complete turnkey projects covering engineering, construction, and contracting. Its expertise is available as turnkey contractor, joint venture partner or main sub contractor.

Dr Faysal Alaquil business development director and spokesman of CPC said that "The formation of Roots Steel is in line with CPC's mission to target the markets of Saudi Arabia, Europe, other Middle Eastern countries, South East Asia and the United States. CPC has the Middle East’s highest standard in the field of contracting and construction. Our business vision and philosophy is to serve as a catalyst for an outlet providing all the needs of modern construction."

Mr Ousama Fansa CEO of Arabia Roots said that Roots Steel would greatly benefit from his company’s well developed regional distribution and marketing network and outlets that cover the GCC with Saudi, UAE and more recently Qatar, the MENA region with Egypt, Syria, Lebanon and a presence in Malaysia. He added that "Arabian Roots is fast extending its footprint in the Middle East and sales figures have touched the SRD 900 million mark."

CPC started its activities less than 3 years ago with 7 companies. After the implementation of the company’s plans in addition to strong success indicators CPC expanded to the neighboring markets of Syria, Egypt and UAE. Their upcoming plans are to enter into the Algerian, Moroccan and Indian markets.

Founded in 1981, Arabian Roots is a leading wholesaler, manufacturer, retailer and special service provider in the Saudi market focusing on building materials including among other things, metal works, fences, doors, railings, grids, false ceiling supports, adhesives, paints, coatings, waterproofing membranes, power tools, electric generators, and mobile cranes.

Iranian steel industry prospects bright - Minister

Mr Mohammad Ali Harati Nik Iranian deputy minister of industries & mines said that the plan to construct 8 steel factories indicates the government’s attention to less developed areas of the country.

Mr Harati Nik, during a visit to the 800,000 tonnes steel production unit in Charmahal Bakhtiari, said that over SAR 30 trillion have been allocated for each of the projects. He added that the projects will be financed from national funds and the Hard Currency Reserve Account and will become operational in 4 years.

Mr Mohammad Rahim Rasti MD of National Steel Company said that the annual steel production stands at 10 million tonnes nationwide. He added that once all steel projects are completed, production will increase to 29 million tonnes.

He also noted that every year 5.2 million tonnes of iron ore are exported to China, Pakistan and Bahrain. He recalled that annual steel consumption has exceeded 20 million tonnes.

ADBIC to set up aluminum rod plant at Taweelah

It is reported that government owned Abu Dhabi Basic Industries Corporation is setting up a JV for aluminum rod manufacturing plant in Taweelah investing USD 100 million. A MoU was signed by Mr Jamal Al Dhaheri senior VP of ADBIC and Mr Hamid Al Zayani MD of Midal Cables. It was between ADBIC and Midal cables limited one of the world’s largest manufacturers of aluminum rod and conductors.

As per report, using state of the art plant and machinery imported from Europe and the USA the plant will manufacture 150,000 tonnes per annum of aluminum rods that will be used to manufacture value added products by upcoming downstream industries to be setup in the emirate with the balance to be exported.

Molten aluminum metal for the project will be sourced from the new 700,000 tonnes per annum emirates aluminum smelter currently under construction at Taweelah in Abu Dhabi. The plant will be ready to receive the first batch of molten metal from the EMAL smelter and commence commercial production in 2010.

Mr JamaAl Dhaheri senior VP of ADBIC said that "This partnership fits ADBIC's drive to contribute to Abu Dhabi's industrial diversification through attracting metal conversion industries and leveraging EMAL's planned aluminum upstream capacity in Taweelah."

Make empowered steel buying deals

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

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

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

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

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

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

2 bid for Duqm dry dock gates - Report

MEED reported that a contract to build gates for the dry dock at Duqm has attracted only 2 bidders.

As per report, Dubai based Inco International and Singapore's Top Great Engineering and Marine were the only groups to submit bids out of 6 firms that collected bid documents.

The winning bidder will construct a pair of gates weighing some 3,000 tonnes to be installed at the entrance to the dry dock.

In January 2008, a consortium of Omani group Galfar Engineering & Contracting and South Korea's Daewoo Engineering & Construction was the surprise winner of the contract to build 2 docks at the site.

CAF wins EUR 104 million passenger train order in Saudi Arab

It is report that Spanish rolling stock manufacturer CAF had signed a EUR 104.9 million contract to supply Saudi Railways Organization with eight 200 kilometers per hour passenger train sets.

Each set will be formed of a diesel electric locomotive and 5 steel bodied coach designed to operate in desert conditions and temperatures of up to 55°C. The coaches will provide VIP 1st and 2nd class accommodation with a buffet and facilities for disabled passengers.

CAF will also equip a new and modern depot and will be responsible for maintaining the trains for the first 4 years.

Pakistan industrial sector goes on strike from July 11

Business Recorder reported that Southern Punjab industrial sector has indicated to hold strikes from July 11th 2008 on the call of central association after the announcement of the industries to hold strikes if their demands were not fulfilled.

The chairs of all the chambers of commerce & industry of Pakistan have decided to start the series of demonstrations all over the country from July 7th 2008. Multan Chamber of Commerce & Industry president Mr Khawaja Jalal Uddin Roomi and others also highlighted the problems faced by textile mills in a press conference and demanded of the government to accept their demands.

Pakistan Railway Karachi division posts record earnings for 2007-8

Associated Press of Pakistan reported that despite broken infrastructure, following massive damage caused by mobs after assassination of Ms Benazir Bhutto and abnormal train operations, Pakistan Railway’s Karachi Division has earned record revenue of PKR 7257.318 million during the fiscal year 2007-8 as compared to the earning of PKR 6,525.929 million during 2006-7 up by 11% YoY.

The total earnings the freight sector has contributed PKR 3,897.012 million with a loading of 169,637 wagons during 2007 to 2008 as compared to earnings of 3,311.263 million with a loading of 152,642 wagons, thus registering an increase of 18% YoY.

Karachi division successfully revitalized the abandoned goods sheds and yards and took bold initiatives for the operation of cargo and coal express trains from Karachi City Karachi Bunder and Wazir Mansion Stations which remarkably contributed to achieve the highest ever freight earnings.

The sources divulged that Karachi division utilized all available resources and generated highest ever sundry earning of PKR 147.906 million as compared to bare PKR 57.357 million showing a phenomenal rise of 158% YoY.

Iraqi oil ministry opens bids for new tankers

Khaleej Times reported that Iraq has invited bids from local and international companies for 2 new oil product tankers and another for chemical products.

Iraqi Oil Tankers Company said that the oil tankers must have a capacity of 7,000 to 10,000 tonnes each, while the chemical products must hold 15,000 tonnes. It added that interested companies have until June 30th 2008 to submit their proposals and firms with European, Japanese and Korean origins are preferable.

IOTC also plans to buy two barges at 1,500 tonnes to 3,000 tonnes each and a 2 tonne cargo service boat with 20 tonne side tanks for diesel oil and fresh water that would accommodate 20 passengers.

Chinese HRC export offers dip by USD 30 per tonne

It is reported that export offer for Chinese hot rolled steel coil has started to slip recently and there have been less contracts since many exporter are employing a wait and see attitude.

HRC
SS 400
4.5-11mm

Rate in USD per tonne
Delivery – FOB Chinese port

(Sourced from www.steelprices-china.com)

Tiantie Group H1 crude steel output up by 29.68% YoY

It is reported that Tianjin Tiantie Steel Group produced 2.51 million tonnes of crude steel in H1 of 2008 up by 29.68% YoY, 2.39 million tonnes of pig iron up by 29.33% YoY and 1.89 million tonnes up by 68.48%.

It also posted sales revenue of CNY 27.4 billion and profit of CNY 391 million in H1 of 2008 up by 101% YoY and 25%YoY respectively.

As per report, the mill's CR sheet project was put into formal operation on June 10th 2008 and that the second stage project is also under construction.

Tangshan to shut down 66 small steelmakers today

China Securities Journal reported that Tangshan municipality issued a notice lately to close down 267 enterprises for rectification, including 66 small and medium scaled steel mills, four pellet plants and 12 coking mills in order to ensure environmental security for the 2008 Beijing Olympic Games.

Among the steelmakers planned to be rectified, there are few large scaled, such as Tanggang's Iron Smelting and Shougang Mining Co's No 1, No 2 and No 3, 90 square meter sintering machines, while the majority are small ones with annual capacity of below 1 million tonnes.

44 mills are reportedly in Fengrun district of Tangshan, disqualified for not meeting standards as to waste water treatment, exhaust emission and poor factory environment.

According to the report, the municipality asked the 66 steelmakers to stop operation by July 8th 2008 and should not resume production until finish the rectification.

Analysts expect that the closures would not affect steel supply substantially as most of them are small processing mills.

Tianjin Pipe and Chonggang to build base in Changshou

It is reported that Chonggang Group and Tianjin Steel Pipe Group signed investment agreement recently in Chongqing City.

According to the agreement, the two sides will jointly invest CNY 1.3 billion to build medium and high grade steel pipe production line in Chongqing Changshou. The project is expected to start to be constructed in this year.

In addition, Tianjin Steel Pipe Group and Beijing Century Yuanbo Company had reached cooperation to invest CNY 330 million for the energy saving and emission reduction project in Chongqing Changshou new plant.

Trend of Chinese steel export offers (WEEK 27)

Rate in USD per tonne
Delivery – FOB Chinese port
HDG spec is SGCC DX 51D 140gms
(Sourced from www.steelprices-china.com)

Steel project to boost development of economy in Jiujiang

It is reported that Jiujiang Steel, which is the subsidiary company under Pinggang, is now developing with an investment of over CNY 200 million each month.

It is expected that annual production value could be CNY 11 billion after the completion of II phase project in Jiujiang Steel in 2010 and tax could be CNY 650million per year.

The 2nd phase technology alteration project in Pinggang cost CNY 7.5billion and started on October 2007 including 1.2 million tonnes wire project, 1.8 million tonne sheet project and Jiujiang Steel special dock project.

As per report, sales income in Jiujiang Steel in 2007 was CNY 2.1billion up by 400% YoY while tax was CNY 110million up by 329% YoY.

China to inject capital into state firms hit by earthquake damage

XFN Asia cited Mr Liu Nanchang vice director of the performance assessment bureau of the state owned Assets Supervision and Administration Commission as saying that China will inject capital into central government controlled enterprises that suffered heavy losses from the May 12 earthquake.

Mr Liu in a statement said that for firms experiencing difficulties in production and operations, such as Dongfang Electric Group, SASAC will provide a capital injection from the state capital budget. But he gave no details on the capital injection.

He said that a total of 3,586 people connected with central government firms were killed or injured in the May earthquake, and total economic losses stood at CNY 81.5 billion including CNY 41.4 billion in direct losses.

Mr Liu said the State Grid Corp of China, Dongfang Electric, China National Chemical Corp and Panzhihua Iron & Steel Group were among the most severely affected. He said that "From the overall point of view, economic development will not be severely affected by the earthquake, although natural disasters including the quake and heavy snowstorms in late January have been a drag on economic growth.”

He added that even without the two disasters, the economic situation has not been encouraging because of high oil prices and a slower US economy.

China Shipping Container to buy port developer for USD 379 million

China Securities Journal reported that China Shipping Container Lines Co is likely to buy a port developer from its state owned parent for CNY 2.6 billion (USD 379 million).

According to Newspaper, China Shipping Container Lines Co parent company China Shipping Company was auctioning its entire stake in the port developer on the Shanghai United Assets and Equity Exchange and the newspaper quoted analysts as saying that China Shipping Container Lines was likely to win the bid.

The newspaper said the Shanghai based port developer; China Shipping Terminal Development Co is engaged in port investment and development, logistics, warehouse stocking and transportation. It said China Shipping Container Lines Co had planned to use funds raised from its initial public offering to buy the port developer from its parent.

The newspaper quoted industry analysts as saying that the expected purchase would have limited impact on the company's earnings in the short term, but would help to upgrade the company's long term profitability.

Railway siding to save huge transportation cost for Dazhou Steel

It is reported that a 4.6 kilometer railway siding that is under construction by Sichuan Dazhou Iron & Steel Group Co Ltd will help reduce transportation cost of some CNY 60 million each year for the company after being completed.

As per report, the project funded with a total of CNY 220 million, is directly linking the continuous casting plant of the steelmaker to the second line of Xiangfan-Chongqin railway line. Once finished, it can transport about 8 million tonnes of products annually.

According to Mr Pu Chenglin the project commander with the heavy rail Development Company affiliated to Chengdu Railway Bureau, stated that the workers are working in three shifts trying to get the line run through by the end of this November.

Bayi Iron and Steel H1 2008 profit up by 200% YoY

According to the primary calculation by finance department of Bayi Iron and Steel Company Ltd, the company is expected to have a net profit for the first half of 2008 up by 200% YoY higher than of the same period in 2007.

The accurate figure will be issued in the half year report.

China influencing global trends for steel prices

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

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

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

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

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

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

Billet export offers at Black Sea see major dip

It is reported that export offer for Ukrainian billets have slipped recently due to lower offers from Chinese mills

Billets
3-5 sp/ps
125-150

Rate in USD per tonne
Delivery – FOB Black Sea

As per market reports, a major Ukrainian billet producer and exporter has inked some contracts at these levels last weekend for MEA market

This downward correction comes after a long period amid skyrocketing prices of long products and further down side should be any ones guess

(Sourced from www.steelprices-india.com)

Mechel announces Q1 2008 financial results

Mechel has announced preliminary financial results for the first quarter ended March 31st 2008 as under.

1. Consolidated net revenue in the first quarter of 2008 is expected to exceed USD 2.3 billion up by 60% YoY when compared with consolidated net revenue of USD 1.4 billion in the first quarter of 2007.

2. Consolidated net income in the first quarter of 2008 is expected to be about USD 500 million an increase of approximately 160% YoY when compared with consolidated net income of USD 190 million in the first quarter of 2007.

3. Consolidated gross profit is expected to exceed USD 1.0 billion up by 97% YoY when compared with gross profit of USD 545 million in the corresponding period of 2007.

4. Consolidated operating income is expected to exceed USD 630 million increased of approximately 100% over consolidated operating income of USD 302 million in the first quarter of 2007.

5. Consolidated EBITDA is expected to exceed USD 850 million for the first quarter of 2008 compared with consolidated EBITDA of USD 340.0 million in the first quarter of 2007.

6. Consolidated EBITDA margin is expected to increase to over 36.5% in the first quarter of 2008 compared to 24% in the 2007 first quarter.

7. Net debt to EBITDA ratio is expected to be approximately 1.45 in the first quarter of 2008 compared to 0.14 in the first quarter of 2007.

Mr Igor Zyuzin CEO of Mechel’s said “Mechel continues to rapidly grow its business and again expects to achieve record financial results. Our expected performance in the 2008 first quarter reflects the successful execution of our strategy, focused on the development of the mining segment through both organic growth and acquisitions, as well as the realization of efficiencies in the steel segment from facility modernization, cost savings and product line optimization initiatives. Mechel’s strong performance in the first quarter was also due to favorable pricing trends in our major markets.”

Golden Parachutes for Esmark executives to cost USD 9 million

Kommersant reported that the budget of the deal whereby Severstal acquires US Esmark Steel will probably go up. The company has a golden parachute program for top managers. Should the latter decide to leave Esmark Steel or be dismissed from it, Severstal will have to pay USD 9.3 million.

US Esmark Steel that Severstal is buying out for USD 775 million has informed SEC about the compensation due to the management in case of the change of ownership. Overall, Severstal will pay USD 9.3 million for the decision to dismiss top management of Esmark.

Mr Dmitry Smolin analyst for Uralsib said the amount of USD 9.3 million is a negligibly small price for successful completion of the deal.

Granting golden parachutes is the global practice. It could be used to oppose unfriendly takeover and its key aim is to protect management against the actions of new owners.

WCI Steel concludes sale to Severstal

The sale of WCI Steel Inc to OAO Severstal was completed yesterday. With the closing of the sale to Severstal, WCI Steel shareholders will receive about USD 3.29 per share in cash.

Mr Leonard Anthony outgoing president & CEO of WCI Steel said that “Since 1912, steel has been made in Warren, providing good paying jobs for hundreds of thousands of people during its nearly 100 years of operation. Over the years, the changes in ownership have propelled our people to reach higher and become stronger in their dedication to diverse and high-quality steel backed by outstanding custom service for our many valued and loyal customers. We expect that tradition will continue under the ownership of Severstal.”

He added that “Steelmaking in Warren has been acclaimed for its custom steel, custom service and creative solutions for nearly a century. It has been the lifeblood of this region and has sustained the community during good times and bad. Severstal, with its global operations and supply chain, will provide our facility with a bright future built on a proud past. Under Severstal ownership, the Warren operations, which will be known as Severstal Warren, Inc are positioned for long term success in today’s increasingly global and highly competitive steel marketplace.”

Mr Anthony said that “On behalf of the board of directors, I personally thank our loyal and dedicated employees, our excellent customers, our valued suppliers, and the local, regional and state government officials in Ohio for their strong support during the past 26 months as we created a plan to secure our future. I truly believe the operations at Warren as a member of Severstal will serve its various constituencies for many years to come with custom steel, custom service and creative solutions.”

Moelis & Company acted as exclusive financial advisor to WCI Steel, Inc. McDermott Will & Emery LLP acted as legal counsel to the company and Kaye Scholer LLP acted as legal counsel to the Special Committee of the Board of Directors.

Konecranes wins port crane order from St Petersburg

It is reported that Konecranes has received one of its largest ever orders comprising four ship to shore cranes and 10 rubber tyred gantry cranes from Russian operator JSC "Fourth Stevedoring Company". The crane delivery will start in the third quarter of 2009. The value of the order is more than EUR 40 million.

The container terminal on the territory of JSC "Fourth Stevedoring Company" currently under construction is expected to have an annual capacity of 350,000 TEUs by 2009 when the first stage is launched. By 2011 throughput is expected to increase to 1,400,000 TEUs.

Mr Tuomas Saastamoinen sales and marketing director, port cranes at Konecranes said that "The Russian market is one of the world's fastest-growing markets. This order and previous orders from St Petersburg and Baltic ports over recent months confirms our leading position in the area."

He added that the four Panamax STS container cranes offer efficient loading and unloading of Panamax sized vessels. They have a lifting capacity of 50 tonne an outreach of 38m and are equipped with Konecranes AC electrical control system. The 10 16 wheel RTGs have a lifting capacity of 50 tonne and can stack one over five containers high and seven wide plus a truck lane.

JSC "Fourth Stevedoring Company" forms part of the largest group of stevedoring companies in St Petersburg and is a new customer for Konecranes with regards to STS and RTG cranes.

Trend of steel export offers at Black Sea (WEEK 27)

Rate in USD per tonne
Delivery – FOB Black Sea

(Sourced from www.steelprices-india.com)

Gazprom discussing gas projects in Ukraine

According to Mr Oleg Dubinin head of Naftogaz in an interview with the Zerkalo nedeli weekly, Naftogaz Ukrainy has confirmed that it is in negotiations with Gazprom on joint production on the shelf of the Black Sea.

Mr Dubinin suggested that Gazprom could have the oil produced and Ukraine the natural gas. Various estimates place the hydrocarbon reserves on the Black Sea and Sea of Azov shelves at 1.5 trillion tonnes of fuel equivalent, that is, 170 billion cubic meters of gas and 80 million tonnes of oil. On the Kerch segment that Naftogaz plans to propose for joint development with Gazprom, reserves are estimated at 30 billion cubic meters and 4 million tonnes.

There has been no drilling on that segment, the license for which is owned by the British Vanco International, which is obligated to invest no less than USD 100 million in exploration. In the event that exploration is successful, investment in production is expected to come to USD 3 billion. Last autumn, however, the Ukrainian Ministry of Natural Resources that Vanco committed irregularities in the competition for the product sharing agreement. Its license was annulled by order of the ministry on April 28th. So far, the company is continuing to work on that site, however, because Ukrainian President Mr Viktor Yushchenko has not agreed to the annulment. Mr Dubinin said that other programs may be delicensed because of their low effectiveness.

While sources confirm that Ukraine and Gazprom have been in negotiating exploration of the Black Sea shelf for some time, Mr Sergey Kupriyanov Gazprom spokesman told Kommersant that the talks were not concrete. Observers say that Ukraine is probably eager to involve Gazprom in such a project to stave off a rise in gas prices from the Russian monopoly, which may reach $400 per 1000 cu. m. next year. Gas produced on the shelf would also be cheaper.

Russia plans further steps to boost oil industry - Mr Sergei

According to Mr Sergei Shmatko Russian Energy Minister, the state plans further changes to the tax code to stimulate the oil industry.

Mr Shmatko said the tax breaks already approved by the government will ease the burden on oil companies by a total of RUB 130 billion a year. He said that Russia is working out a stimulus package to help the country's 500 small and medium-sized oil companies enter the refining business.

He added that since almost all refining in Russia is in the hands of large companies, the government is considering setting quotas or even taking the radical step of building a refinery for smaller operators.

Mr Shmatko said the government may take measures to reduce the increase in domestic fuel prices, including lifting import duties on high-octane gasoline.

TNK-BP board rejects proposal to dismiss CEO

RIA Novosti reported that the board of directors of TNK-BP Management has refused to dismiss the Mr Robert Dudley CEO of Russian-British oil venture company's.

A source close to the company's shareholders said the three BP representatives had voted against Mr Dudley's dismissal and the two Russians for.

Mr Stan Polovets CEO of AAR said "The results of the vote are not a surprise because the three board members who opposed were appointed by Mr Dudley himself."

Mr Viktor Vekselberg, a Russian billionaire and a member of the TNK-BP Management board of directors, proposed last week that TNK-BP Management shareholders hold an emergency meeting on Monday to dismiss CEO Mr Robert Dudley and elect a new, independent executive.

He said the reasons for an emergency meeting were statements filed by Mr Mikhail Fridman chairman of the TNK-BP Ltd. board of directors, and Stan Polovets, executive secretary of the TNK-BP Ltd. board of directors, regarding rules of procedure and complaints from trade unions and a number of government agencies citing numerous violations of labor, migration and tax laws.

The ongoing row between four Russian billionaire shareholders in TNK-BP and the British oil major, each owning 50% in Russia's third largest oil producer, has been over strategy, with the Russian investors also demanding cuts in the number of foreign staff.

Global stainless crude steel production in Q1 of 2008

According to preliminary figures released, global stainless steel production was 7.4 million tonnes in the first quarter of 2008. The figures, published by the International Stainless Steel Forum show that stainless steel production increased by 6.5% QoQ.

In ‘000 tonnes

(Source - International Stainless Steel Forum)

POSCO to develop 5 nickel mines in New Caledonia

AFP reported that steelmaker POSCO has received approval to develop five nickel mines in New Caledonia and export the ore to South Korea over the next 30 years.

POSCO said that the deal approved by the government and parliament in Noumea would ensure a supply of 30,000 tonnes of nickel a year and raise cost competitiveness.

POSCO in 2006 spent USD 350 million to set up two joint ventures NMC, a nickel mine development company and SNNC, a nickel processing company with SMSP, the largest exporter of nickel ore in the French controlled island.

POSCO said that SNNC's plant at the south coast port of Gwangyang would start commercial production in September.

BHP and Asiaticus agree to resolve row over Philippine Mine

According to Philippine Mines and Geosciences Bureau, BHP Billiton Ltd and its local joint venture partner in the Philippines have agreed in principle to resolve their conflict over the development of a nickel mine in the country.

Mr Horacio Ramos director of Mines and Geosciences Bureau said that BHP and local partner Asiaticus Management Corp have agreed to come up with an ore supply agreement covering their mining interest in the Pujada peninsula in southern Philippines.

The agreement will allow Asiaticus to start mineral extraction in certain parts of the area while BHP will proceeds with exploration works. Mr Ramos said that the two companies have been at loggerheads over development plans at Pujada, where nickel ore reserves have been estimated at 150 million tonnes and at 1.3% nickel.

Mr Ramos said that the ore supply agreement may eventually lead to the withdrawal of a petition filed by Asiaticus with the MGB seeking to nullify its joint venture agreement with BHP, which claimed that its partner was moving too slowly and Asiaticus had also filed a similar case with a local court. He added that "They agreed in principle to pursue an ore supply agreement, but the mechanics on how the agreement will be implemented still need to be finalized. This is a one step forward.”

Mr Ramos said that the two companies agreed to move toward resolution of their conflict following a meeting late last month with Environment Secretary Jose Atienza in Singapore. He added that they need to resolve this or there will be a stalemate adding that in such a case, neither company can proceed to develop the mining project.

Early last year, the Philippine government announced BHP would invest up to USD 2 billion in the country, including the construction of a nickel processing plant.

Fox winds down mine after fall in nickel price

AAP reported that FOX Resources has been forced to wind down underground mining at its Radio Hill operation after a drop in commodity prices.

According to the report, FOX Resources said that it would complete underground mining and milling operations at the Radio Hill nickel and copper mine by the end of this month and defer the start of the Sholl B2 nickel project until 2009 after the drop in the nickel price.

FOX Resources said that it would turn its attention to exploration for iron ore, nickel and copper in the Pilbara region of Western Australia and work on improving the efficiency of the Radio Hill mine. It said that the move has been backed by the company's largest shareholder Jinchuan Group, China's largest nickel producer.

Mr Tian Yulong Jinchuan's non executive director on the Fox board in a statement said that they believe this decision will be in the best interest of shareholders and Jinchuan looks forward to supporting Fox throughout this exciting phase of growth.

Import price of chrome ore at Tianjin port

It is reported that import price of chrome at Tianjin port is as under

Price in CNY per MTU

(Sourced from MySteel.net)

Thermal coal prices reach record levels at RBCT and Newcastle

It is reported that thermal coal prices at world’s two most important export ports, Richards Bay in South Africa and Newcastle in Austrlia, have reached record levels, amid limited global supplies and strong demand.

According to McCloskey Group Ltd, Richards Bay export prices advanced by USD17.80 or 11% to an average of USD 176.80 per tonne in the week ended July 4th 2008.

According to the globalCOAL NEWC Index, the coal prices at Newcastle port increased by USD 22.69 to USD 194.79 per tonne in the week ended July 4th 2008.

Citigroup Inc cited supply constraints in a report and raised estimates for benchmark power coal to USD 200 per tonne in the 2009 Japanese financial year starting on April 1st 2008 from a previous estimate of USD 80.

Global coal supplies may shrink further. Vietnam will cut overall exports for the fuel by as much as 38% this year to ensure domestic supplies. China, the biggest buyer of Vietnamese coal, faces power shortages and is rationing electricity in Shanxi, its largest coal-producing province. That may curb Chinese coal exports and boost imports of the fuel.

KIOCL unveils INR 110 crore CAPEX plan

BS reported that Kudremukh Iron Ore Company Limited is embarking on an INR 110 crore modernization project to meet its export commitments by achieving full capacity utilization at its Mangalore pellet plant.

Of the proposed investment, INR 40 crore will be used for the upgrade of the machinery and INR 70 crore to mechanize handling of raw material. The plant had been dogged by raw material shortage after its captive mines were shut in 2006.

KIOCL also plans to set up a railway siding from its pellet plant to the nearby railway station at Tokur for bringing raw materials. It has acquired around 53 acres from the Karnataka Industrial Areas Development Board for laying railway siding. It intends to set up a tubular conveyor to transfer the raw material from the railway station to the pellet plant. This is expected to help the firm save a lot result in a lot of savings for the company.

Mr K Ranganath CMD of KIOCL said that "We are in the process of upgrading key machinery at our pellet plant to process even inferior quality ore and extract higher iron contents. The modernization will enable us to operate the plant at its full capacity of 3.5 million tonnes per annum and increase exports as well."

Mr Ranganath said that "Once we replace vacuum filters at the pellet plant with pressure filters, we don't have to blend the two different ores. The new filters will also help us process even low grade ore from Donimalai and get the required quality."

Following the closure of its captive iron ore mines at Kudremukh in Chikmagalur district, in compliance with the Supreme Court order, it is sourcing 1 million tonne iron ore from Bailadila in Chhattisgarh and 1.5 million tonne from Donimalai in Bellary district of Karnataka. The new machinery will enable the plant to blend Bailadila ore, which has 66% ferric content, with Donimalai ore having 63% ferric content to manufacture high quality pellets for the Chinese market.

During the present year, pellet production will be increased to 2.5 million tonnes from 1.9 million tonnes and to full capacity as against 50% of the installed capacity.

BHPB bid for Rio - EUROFER welcomes in depths probe

EUROFER has welcomed the recent decision of the European Commission to open a detailed investigation under the EU merger regulation into the proposed merger of BHP and Rio Tinto.

Mr Gordon Moffat director genera of EUROFER said that “We appreciate that the Commission shares the serious concerns of the European steel industry as regards the competition effects of this proposed merger and considers that this requires an in depth analysis. We are confident that the full investigation will demonstrate that our concerns are justified and that this merger should not be permitted to proceed. We will cooperate fully with the Commission in this second phase of the investigation.”

EUROFER since November of last year has at several stages pointed out that it could not accept a merger of two of the three mining companies which dominate almost 75% of the world market for seaborne iron ore. Rio Tinto and BHP Billiton are the number two and three in the world’s iron ore business after Vale. The proposed merger would give the combined company a market share of almost 40 % of the seaborne iron ore market. Vale already has more than 33 %.

Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tonnes of steel per year.

PT Antam may raise Herald offer to match PT Bumi bid

Bloomberg reported that PT Aneka Tambang and its Chinese partner may increase their AUD 531 million offer to acquire Australia's Herald Resources Ltd to match a rival bid as they seek to diversify metal output.

PT Aneka Tambang and Shenzhen Zhongjin Lingnan Nonfemet Co may raise their bid to at least AUD 2.85 a share or AUD 563 million which PT Bumi Resources, Asia's biggest thermal coal exporter offered to pay.

Aneka Tambang's current offer of AUD 2.80 apiece is valid until July 8.

Mr Jerome Jovellana an analyst at Mandiri Sekuritas said that “They will probably match it again. There's some softening in metal prices, especially nickel, so they're looking at other businesses that can push growth.''

Any extension will prolong the seven month contest for control of Herald's Dairi lead and zinc mine in Indonesia as demand from China rises. The two companies are vying to control the mine that is forecast to produce 220,000 tonnes of zinc concentrate and 100,000 tonnes of lead concentrate a year.

ESI seals 10 year iron ore transportation contract with Eships

Khaleej Times reported that Emirates Steel Industries has signed a 10 year iron ore transportation contract with Eships Olderdorff Logistics. The transportation contract includes the shipping of about 2.4 million tonnes of iron ore pellets per year in Capesize bulk carriers to a deepwater anchorage point about 35 kilometers offshore from Abu Dhabi.

On behalf of ESI, chairman Mr Hussien Al Nowais signed the agreement while Mr Henning Oldendorff represented Oldendorff Carriers. Eships was represented by its chairman Mr Ahmed Saeed Al Calilly.

ESI put out a tender for door to door iron ore transportation in late 2006 for shipments to start in mid 2008. The shipping contract required innovative, competitive and reliable shipping partners. EOL is a combination of two strong shipping companies with extensive experience in bulk cargo transshipment both in the Arabian Gulf and around the world.

ESI is a subsidiary of Abu Dhabi based Basic Industries Corporation and is strategically located at the recently developed Industrial City of Abu Dhabi. The factory is the largest steel plant in the UAE, utilizing the latest rolling mill technology to produce reinforcing bars for the construction industry.

Eships is an Abu Dhabi based shipping firm controlling 11 modern tankers and bulk carriers. It is owned by Oman and Emirates Investment Holding Company, Mubadala and Abu Dhabi Investment Company.

Oldendorff Carriers is the largest German bulk shipping company controlling a fleet of over 200 ships. Oldenforff has extensive experience in bulk transportation and transshipment with project in operation world wide.

Indian iron ore spot prices remain flat last week

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on July 7th 2008

The change is with respect to prices posted on June 30th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Western Plains consortium applies to build iron ore port

Western Plains Resources, as part of a consortium, was one of nine companies to lodge an expression of interest to develop a bulk commodity port facility on the Point Lowly Peninsula. Western Plains initially planned to build their facilities on OneSteel land, however, that option was scuttled when OneSteel delayed negotiations to conduct a study into OneSteel’s future plans.

According to Western Plains, the Spencer Ports Group’s submission is supported by the Port Bonython Bulk Users Group regarding future projects.

Also assisting the group are civil and marine engineering consultants, port operations consultants, a rail track access company and public relations and communications consultants.

Mr Bob Duffin executive chairman of Western Plains said “WPG’s principal interest is to see the port built quickly and for the port user charges to be competitive with other open access bulk commodity ports elsewhere in Australia.”

The Spencer Ports Group includes Western Plains subsidiary, Spencer Gulf Ports Pty Ltd, the proposed port operator, Pacific Basin Ports and a division of Pacific Basin Shipping Ltd. The Port Bonython Bulk Users Group consists of IMX Resources, Centrex Metals, Ironclad Mining and Western Plains. All four companies wish to export iron ore from the port.

PBL has interests in port operations in China and the Middle East and owns PB Towage Ltd, operating tugs in Brisbane, Sydney, Melbourne and Western Australia.

India allots 23 coal blocks to steel and cement makers

PTI reported that Indian government is understood to have approved allocation of 23 coking and non coking coal blocks to leading steel, cement and power producers, including Essar, JSPL, Grasim, Monnet and Ispat.

While four coking coal blocks have been allocated in Madhya Pradesh, the rest 19 non coking blocks are in West Bengal, Madhya Pradesh, Chhatisgarh, Jharkhand, Maharashtra and Andhra Pradesh.

In its meeting held last week, the Screening Committee of Coal Ministry, headed by coal secretary Mr HC Gupta, decided to allocate the Behrabandh coking coal block to Ispat Industries on a sharing basis with Essar, Mukund Steel and Ind Synergy.

Of the total 170 million tonnes reserves, Ispat Industries was allocated 70 million tonnes, while Essar and Mukund 53 and 25 million tonnes respectively. Orissa's Ind Synergy got the rest.

The committee has also approved the Urtan coking coal block, which has an estimated reserves of about 42 million tonnes, to Jindal Steel and Power Ltd and Monnet Ispat on a sharing basis. The Urtan North coking coal block with an estimated reserve of about 54 million tonnes was approved for Bhushan Steel and Prakash Industries.

Of the major non coking coal blocks, Moira and Madhujore in West Bengal were allocated to Adhunik Group on a sharing basis with Uttam Galva, ACC, Vikas Metal and Power Ltd, Mideast Integrated and Ramsarup Lohh Udyog.

The block has a reserve of over 685 million tonnes, of which Adhunik Group was allocated the maximum 30 per cent of the total reserves.

NDRC approves Shougang Dashihe iron ore project

It is reported that China National Development & Reform Commission has recently approved Shougang Mining Corporation Dashihe iron mine exploration project.

The designed scale of the project is 3.2 million tonnes of raw iron ore per year. But under the present situation, it would be able to produce 1.056 million tonnes of 66% iron ore concentrate per year.

The implementation of the project would help in utilizing Xingshan deep mine resources, extend the life of the mine and provide the sustainable development for Shougang.

Mine collapse kills 21 in China

It is reported that a coal mine collapse in northeastern China killed at least 21 miners, the second fatal incident in less than a week.

Datong city government official said all the victims had died from carbon monoxide poisoning at the Wujiu Coal Mine.

The China News Agency also reported 7 miners escaped on foot and four others were rescued after the mine collapse Saturday in Shanxi province. An investigation was under way at the state run mine in the south suburb of Datong.

Outotec signs a service agreement with Boliden

Outotec and Boliden have made a five year agreement concerning consulting, engineering and project services for Boliden's mines and smelters in Sweden and Tara mine in Ireland.

The delivery of services is continuation of long strategic cooperation between the two companies. The services will be provided by Outotec's Skellefteå office, which employs some 150 people.

Mr Tapani Järvinen president & CEO of Outotec said that "Our target is to significantly grow our services and after sales business in the next few years. This agreement demonstrates our capability of delivering value adding services for our customers, who benefit from Outotec's broad experience in designing and operating various processes. Our customers can focus on their core business, metals production.”

G4G Resources and IMBS sign JV for HBI making

G4G Resources Ltd and Iron Mineral Beneficiation Services Ltd announced the signing of a joint venture agreement for the use of the Finesmelt technology developed by IMBS. G4G will joint venture with IMBS to deploy the patented technology in North, Central and South America and by agreement in other global jurisdictions.

The basis of the joint venture agreement is for G4G to secure suitable resources and complete due diligence studies, whereby IMBS will determine the suitability of the iron ore resources through the laboratory scale Finesmelt test plant in South Africa. When the suitability of a resource is confirmed, G4G and IMBS will form a joint venture company on an equal participation interest and license the technology therein. All future costs and expenses will be shared equally in the preparation of a bankable feasibility study and any and all future development costs.

IMBS has developed and is the beneficial owner of intellectual property for the conversion of iron ore fines and super fines into metallic iron units without agglomeration. It is the intention of G4G to acquire iron ore resources in North, Central and South America. The G4G management team is well equipped with all the necessary skills to determine the suitability and viability of these projects and bring them into production.

G4G also intends to evaluate the suitability of Finesmelt on iron ore from mineral properties being developed in Sweden. G4G plans to drill a total of 3,000 metres during 2008 on properties under option from Teck Cominco Limited's wholly owned subsidiary TCL Sweden Ltd located in the Norrbotten District of northern Sweden.

The Geological Survey of Sweden estimates that three of the properties under option (Masugnsbyn, Vittangi and Vathanvaara) have a combined resource of 134.2 million tonnes of iron ore grading between 25% and 39.7% Fe.

Mr Peter Arendt president & CEO of G4G resources Ltd said that "The agreement with IMBS fits very well with G4G's strategic objectives to produce iron ore and saleable iron units. Finesmelt is a unique process that converts otherwise waste iron ore fines into hot briquetted iron and pig iron. The IMBS technology utilizes thermal coal in the reduction process whereas other processes use higher priced coking coal. The joint venture with IMBS is a strategic relationship which compliments G4G's iron ore projects in Sweden and adds additional value to shareholders."

Mr Arendt continued that "With the iron ore resource in Sweden and the strategic partnership with IMBS, G4G has the potential to confirm a sizeable iron ore resource and produce hot briquetted iron and pig iron within a relatively short period. This is a major objective