It is reported that in wake of the recent verdict of the Supreme Court in favor of POSCO, CPI (M), CPI and POSCO Pratirodh Sangram Samiti on Saturday announced to further intensify agitation in Orissa against the proposed steel plant of POSCO.

Mr Janardan Pati CPI (M) state secretary told www.odishatoday.com that "Our Party has not satisfied with the verdict of the Supreme Court and our stand has not been changed following the court's forest clearance to the South Korean Company. CPI (M) would continue its protest against POSCO and efforts would be made to expand the agitation to national level very soon.” He further informed that his party MLA Mr Laxman Munda has been asked to intensify agitation in Khandadhar area, where POSCO planning for mining lease.

Mr Dibakar Nayak CPI State secretary said that “Only forest clearance is not sufficient for setting up a plant. The Company need land but the locals would not vacate the place.”

The two Left Parties has been opposing the project since the POSCO India inked a MoU with the Orissa Government on June 22nd 2005.

IANS reported that as many as 20 steel makers have signed separate deals with the Chhattisgarh government that will bring investments worth INR 427.61 billion to the state.

Mr Rajesh Munat industry minister of Chhattisgarh said that “Twenty investors have signed MoU with the state government late Friday here for bringing in INR 427.61 billion either for expansion of their existing units or setting up fresh units.”

Mr Munat said that investors would bring in money in a scheduled time period as per Chhattisgarh industrial policy and the government would take care of their raw material needs besides water and land requirements. According to him, about 40,000 people will get employment in the upcoming units.

As per report, the major companies that have signed contracts are Jindal Steel & Power Limited, VISA Steel Limited, SKS Ispat & Power Limited, Surya Global Steel, Jaiswal Nicco Limited, Nalwa Steel and Power Limited and Godavari Power & Ispat Limited.

Chhattisgarh has around 20% of the country’s total iron ore deposits with the world’s finest quality iron ore stocks in the state’s southern region, Bailadila hills of Dantewada district.

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It is reported that Bharat Forge commissioned the country's largest commercial open forging press in Pune.

As per report, the new 4,000 tonne die press will forge ingots ranging up to 70 tonne in a single piece and will cater to wind energy, oil and gas, steel power, cement and ship building and capital goods sectors.

SS Forgings & Engineering Ltd has informed BSE that it is planning to invest INR 200 crore in Sponge Iron project at Madhya Pradesh Gwalior in 2009.

It is reported that Chitranjan Locomotive Works produced 36 electric locomotives against the target of 36 electronic locomotives and Diesel Locomotive Works produced 72 diesel locomotives against the target of 59 diesel locomotives during April to June 2008.

Rail Coach Factory produced 408 coaches against the target of 390 coaches where as Integral Coach Factory produced 222 coaches against the targets of 226 coaches during the same period. Rail Wheel Factory produced 44276 wheels and 20028 axles during the same period against the target of 44450 wheels and 17197 axles during April to June 2008.

During the month of June 2008 Chitranjan Locomotive Works, Diesel Locomotive Works, Integral Coach Factory, Rail Coach Factory and Rail Wheel Factory have produced 13 electric locomotives, 24 diesel locomotive, 80 coaches, 130 coaches, 15991 wheels and 6804 axles respectively against the target of 13 electric locomotives, 19 diesel locomotive, 84 coaches, 125 coaches, 15334 wheels and 5817 axels.

Herald cited Mr Sanjay Bhatia senior VP of Era Group as saying that Era Group of India will invest USD 1.8 billion in Zambian power plants.

The newspaper said tendering for construction of a 250 MW thermal power plant at Zambia's Maamba Collieries will begin this month. It said that a further 250 MW of power will be generated by 2013.

Kalinga Times reported that National Aluminum Company Limited, a Navratna PSU, has bagged the Engineering Export Promotion Council's prestigious All India Export Award being adjudged as the Star Performer in large enterprise category for its outstanding export performance during the year 2006-2007.

The award was received by company's Director Mr KK Mallick from union minister of External Affairs Mr Pranab Mukherjee at a function held in Kolkata on Saturday.

Mr Mallick said that NALCO had played a pioneering role in the export of alumina & aluminum from India. He said that since the beginning, the company has been constantly increasing its exports and FOREX earnings. During the 2006 or 2007 fiscal, the company exported 0.773 million tonnes of alumina and 93,122 tonnes of aluminum, earning an all time high foreign exchange of INR 2585 crore.

According to Mr Mallick, NALCO products are exported to more than 30 countries. The company exports around 54% of the alumina produced after meeting its captive consumption for production of aluminum metal. Presently, around 30% of metal production is exported and remaining 70% is sold in the domestic market.

BL reported that technology firm Rolta India aims to double revenues from its power plant design & automation practice by 2011. Also, the company expects revenue contribution from defense services to significantly improve as the space is seeing increased spend by the government.

Rolta offers engineering design and geospatial information services to clients in the infrastructure, oil & gas, power and defense sectors.

Mr Hiranya Ashar CFO of Rolta India said that the Indo US nuclear program which involves setting up 15 nuclear power plants in the next 20 years calls for investments in the range of USD 50 billion to USD 60 billion by 2025.

He said that “About 8% to 10% of this spend would go into project design, installation, commissioning and project management, Rolta is one of the few vendors in the country well positioned to capitalize on this opportunity, owing to our JV with Shaw Stone & Webster.”

Burnpur Cement Limited has announced that it has become the holding Company of Burnpur Natural Resources Private Limited by acquiring 6000 shares of Burnpur Natural Resources Private Limited.

Burnpur Cement Limited has also announced that Burnpur Natural Resources Private Limited will be engaged in mining activities.

It is reported that Indian Railways is keen on exploring African market for exporting advanced diesel locomotives.

Indian Railways has manufactured a diesel locomotive with a capacity of 3,000 horse power especially designed for the cape gauge line in Mozambique in Africa. The Mozambique engine is air conditioned with facilities of refrigerator, hot plates inside it. The locomotive is going to be provided to Mozambique on lease. It will become operational before end 2008.

As per report Railways are planning expansion of their unit of Diesel Locomotive Works to cater to the needs of both domestic and international market. The project involves an estimated investment of Rs.150 crore with 250 locomotives production capacity per annum.
The unit has recently received orders from Sri Lanka for three locomotives. African countries are also showing interest in India's indigenous locomotives.

Project today reported that Simhapuri Energy has entered into a power tolling agreement with the PTC India for its 270 MW project at Krishnapatnam in Nellore district of Andhra Pradesh. The proposed project is a part of Phase I of the project which envisages establishing 620 MW.

It is learnt that, Simhapuri Energy has already been allotted land and has achieved financial closure for the project. It has also entered into the power purchase agreement and obtained environmental clearance from the Ministry of Environment & Forest.

As per report, the EPC contract of the project has been awarded to Madhucon Projects and it is likely to be completed by 2010.

BL reported that Jaiprakash Associates proposes to invest INR 3,000 crore over the next 4 years to create new capacities and augment the existing capacities of cement and cement products. The new capacities will be created and existing capacities will be augmented either directly by the company or through JVs or SPVs.

Gujarat Anjan Cement a subsidiary of Jaiprakash Associates is putting up a cement plant of 4 million tonne per annum in the Bhuj district in two phases. Phase I of 1.20 million tones per annum is scheduled to be completed in November 2008. Jaiprakash has 2 JV with SAIL for making cement. Bhilai Japyee Cement is putting up 2 plants with a combined capacity of 2.2 million tones per annum at Bhilai in Chattisgarh and Satna in Madhya Pradesh. The project is due to be commissioned in April 2010.

As per the report, Bokaro Jaypee Cement is setting up a 2.1 million tones per annum cement plant at Bokaro, Jharkhand which is also due to be commissioned in 2010. In both these JV with SAIL, Jaiprakash will have the controlling stake. Another JV with Gujarat Mineral Development Corporation is building a 2.4 million tonnes per annum cement plant and a captive power unit and a captive jetty. Jaiprakash will have 74% equity in the company.

Adding up all these capacities, Jaiprakash Associates and its subsidiaries JV will collectively have a capacity of about 18 million tonnes per annum in the next 4 years. Jaiprakash Associates is into several infrastructure businesses power, hotels, coal mining and road construction, apart from producing cement and steel.

It recently entered oil and natural gas business by picking up a 45% stake held by ICICI Bank and ICICI Ventures in Prize Petroleum Corporation a subsidiary of Hindustan Petroleum Corporation.

It is reported that General Motors is planning to set up a power train and transmission system assembly line either in Gujarat or Maharashtra with an investment of USD 200 million.

The report added that the proposed power train plant will be located closer to the company's manufacturing facility at Talegaon near Pune which has an installed capacity of 300,000 units at a cost of USD 300 million.

It is reported that Prayagraj Power Generation Company has invited RfQs for selection of developer for setting up a 3x660 MW coal based power project at Bara in Allahabad district of Uttar Pradesh on BOT basis and establishment of transmission system for two 765 kV single circuit transmission line from Bara to 765 kV Mainpuri substation.

It is learnt that a single bidder will be selected for the implementation of both the generation and transmission components of the project. The 3x660 MW power project is proposed to be based on supercritical technology.

Draft environment impact assessment report has been submitted for clearance to MoEF. The draft DPR for the project is prepared which will be made available to the qualifying bidders at the RFP stage. The last date for submission of bids is September 1st 2008.

BNamericas reported that the supply of rebar on the Paraguayan market is expected to stabilize within two months due to an agreement signed between steelmaker Acepar and local rolling company Acerin, The agreement establishes that Acerin will receive 1,500 tonnes per month of billets for one year in order to make rebar for construction.

A spokesperson from Paraguayan industry and trade ministry told BNamericas that "The companies signed an agreement on July 24 for the supply of billets that Acerin can use to produce rebar.”

Mr Roberto Daher president of Acerin had previously told BNamericas that “With the contract now signed, Acerin has 30 days to assess the situation at its plant and identify the best approach to firing up operations.”

Mr Néstor Méndez CEO of Acepar's said that Paraguay's shortage is the result of escalating demand. He said "Our average rod sales to industry in the last five years were 800 tonnes per month and now we are manufacturing 1,500 tonnes per month and orders stand at 2,000 tonne to 2,500 tonnes. That gives some idea of how demand has grown.”

While releasing the results for April to June 2008 quarter, global pie major Vallourec has given the following outlook.

1. In terms of activity, the outlook for the second half of 2008 is good. The US Oil & Gas market is performing very well and Vallourec will benefit in this market from its acquisition of Atlas Bradford®, TCA® and Tube-Alloy(TM). Outside North America, the Oil & Gas order book represents around seven months' sales, with a notable increase in activity in the North Sea and new orders to equip oil fields in West Africa (for Total and Petrobras).

2. The Power generation market, in which Vallourec is the world leader, remains very buoyant due to a combination of the increasingly stringent requirements for the reduction of CO2 emissions and the need to replace power plants that are becoming obsolete. The order book remains very healthy at a little over seven months' sales and the product mix is continuing to improve.

3. The petrochemicals activity is expanding, mechanical engineering is stable at a good level and the structural tubes market remains buoyant.

4. Vallourec's plants are expected to operate at high capacity and the Group therefore forecasts production volume in the second half of 2008 in line with that of the second half of 2007.

5. The Group stresses that it is continuing to implement selling price increases to offset the sharp rises in raw material costs (iron ore, coke, scrap metal and alloys) seen in recent months and to minimize the impact of movements in the euro/dollar exchange rate. A series of prices increases have been implemented, both during the first half and subsequent to the balance sheet date. Given that price increases in the Oil & Gas market outside North America cannot be applied retrospectively to orders already taken by the Group, such increases will not be reflected in the sales figures before first quarter 2009.

6. The Group forecasts a sales growth rate in the second half close to that achieved in the first half (+3.5%) on a comparable basis.

7. The effect of the dollar's continued weakness on new orders combined with the exceptionally high raw material costs (iron ore, coke, scrap metal and alloys) will have a greater impact on earnings in the second half than in the first half of the year. Moreover, the Group stresses that maintenance operations are seasonal in nature, with the majority of such work being carried out in the second half. Vallourec will, however, benefit from progressive price increases and from the integration of its recent acquisitions in the United States.

8. Given all the above factors, Vallourec forecasts a second-half EBITDA close to that of the first half in absolute terms, which represents an EBITDA/sales ratio of around 23%.

9. Longer term, the Group has complete confidence in the outlook offered by the Oil & Gas and Power generation markets in particular. Vallourec will benefit from its cost-reduction program, the integration of Atlas Bradford®, TCA® and Tube-Alloy(TM) and the competitiveness of its new pipe mill in Brazil.

Chile steel and iron ore producer CAP said that its board approved a USD 550 million investment to boost output of sheet steel and build a galvanizing plant by 2011.

CAP added that it also planned to boost its output of liquid steel to 3 million tonnes and may seek JV partners for the project, valued at some USD 1.87 billion.

Mexican steelmaker Altos Hornos de México has posted net income of MXN 1.13 billion (USD 113 million) for the second quarter of 2008 up by 99.8% YoY.

Its net sales grew to MXN 9.37 billion as compared to MXN 7.06 billion in the second quarter of 2007.

EBITDA surged by 87.4% YoY to MXN 3.03 billion.

Physical production or sales figures by volume were not provided.

Ahmsa added that its Fénix project is more than 50% advanced. The Fénix project, which is due to increase production capacity by 40% to 4.75 million tonne per year has been under development since early 2007. Ahmsa said the project will require a total investment of some USD1.4 billion.

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Progress is forging ahead on Technopolis Plc’s technology centre at Ruoholahti in Helsinki using Ruukki’s new multi storey construction solutions. After completion of the foundations, work on the frame has gone to plan.

Mr Saku Sipola president of Ruukki Construction said that "A fast, efficient design, manufacture and installation chain saves our customers and partners both time and resources. Since the various parts of the building are designed and constructed as a standard package in terms of jointing technology, our solutions also lessen the financial and operative risks."

Mr Ismo Tawast head of the Buildings division at Ramboll Finland, who were responsible for structural design, praises the solution that combines steel foundation and frame and building envelope being piloted at Ruoholahti. He added that “Use of prefabricated parts has significantly reduced installation and site risks. When the prefabricated steel beam foundation components had been correctly installed on the sets of piles, there were no fitting problems with the steel columns.”

Ruukki’s frame delivery included not just the steel parts of the frame, but also installation of the hollow core slabs of the intermediate floors and load bearing concrete partition walls. Delivery also covered detailed design of the structural parts

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Fitch Ratings has affirmed the ratings of United States Steel Corporation securities as follows

1. Issuer Default Rating 'BBB-'
2. Senior unsecured notes 'BBB-'
3. Senior unsecured revolving credit facility 'BBB-'
4. Senior unsecured term loan 'BBB-'

Fitch's ratings reflect US Steel's relatively strong balance sheet and the strategic advantages associated with acquisitions made in 2007. US Steel acquired Lone Star Technologies Inc on June 14th 2007 and Stelco Inc on October 31st 2007.

US Steel's performance has exceeded expectations on resilient domestic pricing, operating flexibility and discipline. The outlook for domestic steel pricing is supported by tight raw materials supply which constrains production, as well as high transportation costs and the weak US dollar, which discourages imports. The latest 12 months' operating EBITDA topped USD 2.2 billion. While fourth quarter 2008 results are expected to show seasonal weakness, the third quarter should show sequential improvement.

In 2008, Fitch expects US Steel to generate ample operating cash flow to cover USD 940 million in capital expenditures, USD 129 million in dividends, the USD 140 million voluntary pension contribution, of which USD 70 million was made in the first half and USD 80 million in debt retirements, of which USD 44 million remain. In the near term, we expect leverage as measured by total debt to EBITDA to range between 1.1 times and 1.5.

The stable rating outlook reflects Fitch's view that the company will continue to maintain its asset base while preserving its strong liquidity and flexible capital structure over the next 12 to 18 months. The rating outlook assumes that the labor agreement expiring September 1st 2008 is satisfactorily renegotiated. The rating and affirmation assumes that any future acquisitions will be financed in a conservative manner.

It is reported that Taiwan's energy consumption rose at the slowest pace in 10 months in June 2008, as higher prices reduced demand for petroleum products. Energy use climbed by 2.2% YoY to the equivalent of 10.5 million kiloliters of oil, or about 2.2 million barrels a day. The growth was the slowest since the 1.5% increase in August 2007.

The retail price of state run refiner CPC Corporation's benchmark gasoline grade surged by 21% YoY, encouraging some motorists to shift to public transportation. The number of trips on mass rapid transit systems gained 13% in the first half of the year.

Consumption of petroleum products, which account for about half of the island's energy supply, fell by 4.1% YoY to the equivalent of 4.5 million kiloliters of oil. Demand for diesel declined by 21%, while that for gasoline dropped by 8.7%. Power consumption climbed by 8.2% to 20.9 billion kilowatt hours in June 2008, with demand by industrial and energy companies 12% higher than a year earlier. Taiwan produces electricity from fossil fuels, wind, nuclear and hydro power.

Taiwan bought 99% of its energy needs from overseas in June 2008. Crude oil imports fell by 11% YoY to 5 million kiloliters, while those of petroleum products decreased by 7.7% YoY to the equivalent of 1.57 million kiloliters of oil.

Bloomberg reported that Mitsui OSK Lines Limited fell the most in a year, leading Japanese shipping lines lower in Tokyo trading, after UBS AG cut its rating on the stock and an index of fees for transporting iron ore and coal fell for a 20th day.

As per report, UBS cut its ratings on Kawasaki Kisen, Mitsui OSK and Nippon Yusen to neutral from buy.

Mitsui OSK dropped as much as 8.2% to JPY 1,171 and traded at JPY 1,197. Nippon Yusen KK declined by 5.3% to JPY 824 while, Kawasaki Kisen Kaisha Limited fell by 6.4%.

It is reported that Asciano's move into the lucrative Queensland coal market is likely to spark an eventual break up of Queensland Rail and the privatization of significant parts of the carrier.

Analysts and coal industry leaders said that it is now only a matter of time before QR moved to privatize parts of its business, with Asciano's Pacific National entering the Queensland market and securing key coal contracts with Xstrata and Rio Tinto from 2010.

However, it is understood that Pacific National will be taking up spot opportunities before then putting rolling stock in place and transporting casual cargoes well before 2010.

Mr Michael Roche CEO of Queensland Resources Council said that it is essential QR separate its train and track operations, saying it was disappointing its recent restructuring had gone only part of the way towards that goal. He added that "The state government must engage more actively with industry in examining options for transitioning governance of government owned infrastructure to a more professional and sustainable footing. We are not looking to debate the merits of public ownership but rather promote the most efficient management of these major assets."

The Steel Framing Alliance announced that Mr Larry W Williams has resigned as president of the SFA and will leave the organization on September 1st 2008 in order to join the International Iron & Steel Institute GM market development & sustainability.

As president of SFA for the past 5 years, Mr Williams has led the steel framing industry’s market development efforts in both the residential and commercial markets in the United States and Canada.

Mr Don Moody chairman of SFA board and also GM of Nucosteel said that “Mr Larry has done a tremendous job leading SFA and he certainly will be missed. He understood the changing market dynamics of the industry and in recent years managed a transition of the organization’s focus from trade association activities to product management and marketing initiatives.”

During his tenure at SFA, Mr Larry led advancements in the competitiveness of steel framing through insurance discounts and technical initiatives, as well as implementation of the industry’s technical field marketing program.

Also during this time, SFA membership grew from 300 to 1,500 architects, engineers, builders, contractors, distributors, stud and component fabricators, tool and equipment manufacturers, steel producers and zinc producers.

Reuters reported that Singapore's Neptune Orient Lines has been invited to the next phase of bidding for Germany's Hapag Lloyd in a move that could create the world's third largest container shipping firm.

NOL said in a statement that "If successful, NOL would integrate its APL container shipping business with Hapag Lloyd."

Mr Ron Widdows, who became CEO of NOL, told Reuters in an interview that the Singapore firm had taken a bigger risk when it purchased APL in 1997, as the US container shipping firm was much larger than NOL at that time. He added that "It's an opportunity and it could well be transformational. You would not do this unless you are absolutely certain the risk profile was wise."

Mr Widdows declined to provide more details of NOL's bid, saying they were confidential, but said there was a lot of speculation about the purported price tag of 5 billion euros, which was more than double the Singapore company's market capitalization.

It is reported that Mr Mike McGowan, head of hydrogen solutions for Linde North America, has been named chairman of the National Hydrogen Association.

During his 2 year tenure as chairman, McGowan is responsible for leading the NHA, through its members, to create a shared vision for the deployment of hydrogen technologies and expanding hydrogen infrastructure. He has served since 2003 on the NHA’s bard of directors and on its executive committees. He is also a member of the board of directors for the US Fuel Cell Council and for Hydrogen and Fuel Cells Canada, where he also serves on the executive committee.

Mr McGowan said that “It is a very appropriate time for the NHA to choose a chair from an industrial gases company. Our industry serves the entire spectrum of NHA membership, from automotive and bus fleet applications to folk lift trucks, backup power systems and even micro electronic devices. I am very proud and privileged to be chairing the NHA at such an exciting and pivotal juncture in the ongoing effort to make the promise of hydrogen a reality.”

Linde North America is a member of The Linde Group, one of the world’s largest producers and suppliers of hydrogen. NHA’s 110 plus members include automakers, hydrogen suppliers, energy producers, fuel cell manufacturers and other technology providers. The NHA seeks to promote the development and commercialization of hydrogen technologies and their use in industrial and consumer applications.

Aker Yards has signed a EUR 360 million contract with P&O Ferries to build two of the biggest car passenger ferries in the English Channel for the Dover Calais service.

The vessels are scheduled for delivery in 2010 and 2011 respectively and the contract includes options on a further two vessels of the same design. The vessels will be built in Aker Yards, Rauma, creating some 1,800 man years of work.

Canadian National Railway said it will pursue legal action against the Surface Transportation Board so that it can complete a USD 300 million deal with US Steel Corporation to buy a 200 mile section of the Elgin, Joliet & Eastern Railway Co in suburban Chicago.

CNR said that it would take legal action to get the transportation board to finish its review by December 31st 2008 and said that US Steel will not extend the agreement past this year.

The rail line serves US Steel's Gary Works, as well as other customers.

Daily Times reported that Pakistan Steel Mills has increased ex mill prices of various steel products on Friday. This is the second increase in prices within the last one month. The paper said that PSM has made another hike in the prices of its products including galvanized steel, billets, hot and cold rolled and pig iron. The PSM has announced price increase with an immediate effect.

PSM increased the ex works price as under

1. HR by PKR 6,500 per tonne to PKR 7,000 per tonne
The price of hot rolled coil has reached PKR 75,000 per tonne

2. CR by PKR 7,500 per tonne to PKR 8,000
The price of cold rolled coil now stands at PKR 82,000 per tonne

3. HDG by PKR 7,000 per tonne to PKR 8,000 per tonne
Galvanized steel will be sold at PKR 87,500 per tonne
4. Billet’s price by PKR 3,500 per tonne
Billets will be available for PKR 56,000 per tonne

These prices are exclusive of sales tax and dealers would charge 18.5% sales tax on the ex mill prices along with their profit margin.

An official of PSM told Daily Times that it was difficult for PSM to continue sale with the old prices, as the input cost had increased fourfold in June-July. He said that “The price of coal had increased to USD 405 from USD 256; the price of iron ore shot up to USD 190 from USD 81 and the price of coke surged to USD 800 from USD 520. The skyrocketing prices of basic inputs forced the PSM to raise prices of its products.

The official further said that the prices have been raised because of the continued surge of raw material prices in the international market. The cost of production has gone up by PKR 3,000 to PKR 6,000 per tonne as compared with previous month, he said, adding that the announcement of 20% increase in employees’ wages in the budget, increase in gas tariff and devaluation of rupee against the dollar have driven up cost of production and eaten into PSM’s margin.

It is noted that from January to August the prices of various long & flat steel products increased more than 50% of which the breakdown is as below
1) Billets increased by 53% to 58%
2) Hot Rolled Coils increased by 92% to 96%
3) Merchant Bars increased by 92%
4) Thick Plates increased by 101% to 127%
5) Cold Rolled Coils increased by 68% to 86%
6) Galvanized Coils increased by 61% to 78%
7) Corrugated GI Sheet increased by 60% to 67%

According to a joint press release by Egypt’s minister of trade & industry and minister of investment, 20 licenses are already issued to build cement & steel mills involving EGP 38 billion estimated investments.

The release said that the licenses includes 14 licenses for cement production lines involving EGP 18 billion investments & 6 licenses for steel production lines involving EGP 20 billion investments.

It is reported that crude prices continued their dizzying spiral down on Friday, shedding nearly USD 4 to trade below USD 114 a barrel as the US currency strengthened amid concerns about energy demand.

Brent North Sea crude for September delivery hit an intra day low of USD 113.55 a barrel. It recovered slightly to stand at USD 114.06 down USD 3.80. Oil futures have shed more than 20% in value since hitting record highs above USD 147 per barrel on July 11.

Mr Serge Laureau commodities strategist at Saxo Bank in Copenhagen said that “Oil prices are getting more and more pressure from dollar strength and it doesn't seem reversible for now.”

Dealers said that the dollar struck a five month high point against the euro on Friday on fading prospects of an interest rate rise by the European Central Bank.

MNA reported that Iran is the only country in the Middle East that produces wind turbines.

The report cited Mr Yusef Armudeli MD of Renewable Energy Organization of Iran as saying that “Based on our studies, it’s possible to install wind turbines with the capacity to produce 10,000 megawatts of electricity in Iran.”

He also noted that the wind turbines in Manjil and Binalud are currently producing 128 MW.

He explained that “Wind power plants in Iran are annually producing 180 million KW per hour.”

Gulf Daily News reported that Iraq resuming exploration of its immense oil reserves after a break of nearly 20 years due to crippling UN sanctions, saying it hopes to double its proven deposits of crude.

Mr Assim Jihad a ministry spokesman said that "Today the Iraqi oil ministry celebrates a return to work by Iraqi oil exploration teams after 20 years of interruption.”

Mr Jihad said that Oil Minister Hussein Hussein Al Shahristani was to attend a ceremony to mark the event at the Al Garraf field near Nasiriyah, 350 kilometer south of Baghdad.

He said the ministry would deploy three exploration teams trained abroad in the latest techniques. OPEC member Iraq hopes the squads will uncover deposits that will enable it to double its proven oil reserves, currently standing at 115 billion barrels of crude.

After the regime of now executed dictator Saddam Hussein invaded Kuwait in August 1990, the United Nations imposed a strict oil embargo on Iraq, forcing it to cease exploration and cut back drastically on exports.

Mr Jihad said that Iraq now wants to ramp up output by 500,000 BPD from the current average production of 2.5 million BPD, about equal to the amount being pumped before the US led invasion of March 2003.

IRNA reported that the 8th international exhibition on building & construction industry kicked off on Thursday at Tehran Permanent International Fairgrounds.

Mohammad Abbasi Iran’s Minster of Cooperatives attended the opening ceremony of the fair.

This year’s exhibition participated by 847 companies active in the building & construction industry, showing a 20% rise compared to the 7th edition held last year.

As per report 207 companies from Germany, Italy, UK, Switzerland, Turkey, Japan, South Korea, China, Belgium, the UAE, Canada, the Netherlands, Sweden, Finland, Slovenia, Greece, and Portugal are taking part in the four-day event which will run to August 10th 2008.

MENAFN reported that a leading business house of Saudi Arabia Almajdouie Group and Sinotrans Ltd of China have signed an agreement to operate a joint venture logistics company in Saudi Arabia.

The joint company named as Almajdouie Sinotrans Middle East will operate in the areas of customs clearance, heavy oversized cargo handling and inland transportation services.

Mr Abdullah Al Majdouie VP of Almajdouie Group aid that "Both groups were working together for past three years in Saudi Arabia and successfully completed the project logistics management including customs clearance, heavy oversized cargo and inland transportation services by moving equipment for five cement production lines of Sinoma International Engineering Co Ltd in Saudi Arabia and providing quality service by delivering over 500,000 freight tons cargo to the site.”

Mr Al Majdouie said that "This JV will be the leader in logistics industry with a goal to have strong presence in Middle East and North Africa region, bringing the best quality services to its customers.

Mr Al Majdouie said that the Almajdouie Sinotrans Middle East will set up the main office in Saudi Arabia and offer project cargo handling, transportation and project logistics services. It will gradually move toward GCC and other Middle East countries, while expanding its operation in a qualitative manner.”

Almajdouie Group a company established in 1965, is leader in supply chain management and third party logistics services, offering general transportation, heavy or oversized transportation and engineering including lifting and erection, project forwarding, terminal handling, silo management, warehousing & distribution management, product packaging operations, equipment & maintenance, international freight forwarding, documentation for import & export and transit clearance contract logistics and tours and travel.

Staff Reporters reported that Borouge, a major player in petrochemicals and plastics, has signed a service contract with Agility to build the Borouge Compound Manufacturing Unit and Shanghai Logistics Hub in Shanghai.

Through this contract Agility will also provide local logistics services for Borouge’s customers in Asia for 10 years with effect from its operational start up date in 2010.

Under the contract Agility will undertake the design, development and subsequent operation of the logistics hub, to ensure sufficient infrastructure, storage facilities, packaging and distribution services to accommodate Borouge’s products dispatched from Abu Dhabi. It will handle and distribute a total volume of approximately 600,000 tonnes of polyolefins out of the Shanghai logistics hub annually.

Borouge’s current production capacity in the UAE is 600,000 tonnes of Borstar polyethylene per year. With the ongoing Borouge 2 project expansion, this capacity will increase to 2 million tonnes per year by the middle of 2010 and will add polypropylene to the product mix.

Austrian oil and gas giant OMV said it had acquired stakes in two licenses to explore for oil in Pakistan.

OMV in a statement said that it had agreed to acquire a 30% stake in the Kalat exploration license and a 15% stake in the Barkhan license both in the province of Baluchistan in south west Pakistan. It said that “The areas are under explored but considered as highly prospective drilling areas.”

Mr Helmut Langanger OMV board member said that partners in the Kalat license were Pakistan Petroleum and ENI Pakistan, while partners in the Barkhan license were Pakistan Petroleum and MND Exploration and Production.

He said that Kalat is a block of 2,842 square kilometers and Barkhan 2,105 square kilometers. These new exploration licenses acquire acreage with highly attractive exploration potential.”

Mr Langanger said that “It enables us to proceed with our plans for further growth in Pakistan, where we are currently the biggest international gas producer. In all, OMV holds exploration and production licenses in 20 countries in central and Eastern Europe, North Africa, northwestern Europe, the Middle East, Australia and New Zealand, and Russia and the Caspian region.”

OMV’s daily production volume is around 316,000 barrels per day and at the end of 2007, it had reserves of 1.22 billion barrels.

It is reported that the price of HR exported from China to South Korea fell to USD 1,000 per tonne on CFR basis.

As per report, Chinese steel mills are offering SS400 grade HR at USD 1,020 per tonne on CFR basis but from July onwards, two and three steel mills are looking at even USD 980 to USD 1,000 per tonne on CFR basis.

But the price of CR is still above USD 1,000 per tonne on CFR basis. The general price is maintained in the USD 1130 per tonne to USD 1150 per tonne on CFR basis.

It is reported that exports of Chinese rebar and wire rod are quite difficult now with halt and weakening in overseas market prices and the arrival of low season for demand.

Domestic market prices are still on the decrease. Shanghai market prices for HRB335 20mm rebar is being quoted at CNY 5130 per tonne to CNY 5150 per tonne, HRB400 grade material is being quoted at CNY 5220 per tonne to CNY 5250 per tonne down by CNY 60 per tonne and CNY 130 per tonne from last Thursday. Commercial wire rod is at CNY 5360 per tonne that for hi-speed material goes at CNY 5410 per tonne to CNY 5430 per tonne a decrease of CNY 40 per tonne and CNY 130 per tonne from late last week

Export offers for rebar are about USD 1030 per tonne to CNY 1050 per tonne FOB. Lower level is at about USD 990 per tonne to USD 980 per tonne FOB for 10mm to 25mm with boron and contract prices are believed to be at USD 960 per tonne to USD 970 per tonne FOB. However, Shagang is said to be quoting its BS4449 Grade 460 rebar at USD 1370 per tonne CFR for shipments to Dubai.

(Sourced from MySteel.net)

It is reported that China's various steel companies are eager to enlarge export volumes of various steel products in the belief that they can profit by export deals at a time when domestic shipments are under the central government's price control. There are even moves to promote export sales with certain price reductions for destinations such as South Korea and the Middle East.

Recent offer prices of Chinese steel exports feature reductions of USD 50 per tonne for HR coils, USD 30 per tonne to USD 50 per tonne for heavy plates and H-beams and USD 30 per tonne to USD 40 per tonne for long products. As a result, the going offers are described as levels of USD 1,020 per tonne C&F for HR coils, USD 1,010 per tonne C&F for H-beams and USD 980 per tonne C&F for long products.

China's major steelmakers face a considerable cost increase in their procurement of essential raw materials such as iron ore at a time when a domestic price increase of any steel product is considered difficult to execute because of the central government's commodity price control. As a result, it is natural for the Chinese steelmakers concerned to seek deals in steel export markets where prices stand at a high level.

It is reported that in the 4th Session of the 3rd Executive Council of CISA, Baosteel Co Ltd was awarded the honorary title of China Iron & Steel Industry Clean Production and Environment Friendly Enterprise", and its high grade steel sheet for passenger car won China Iron & Steel Industry Product Development and Market Pioneering Award. These are two new awards set up by CISA for the first time in the industry.

According to the requirements of the central government on building innovative country, in order to guide the development of the iron & steel industry with the scientific view of development, adjust and optimize the industrial structure, strengthen resource saving and environment protection, encourage the enterprises to actively carry out independent innovation, and to achieve fast and good development, CISA decided in 2006 to set up the honorary title of "China Iron & Steel Industry Clean Production and Environment-Friendly Enterprise" and "China Iron & Steel Industry Product Development and Market Pioneering Award". The application, examination & appraisal works for the 2 awards was started in May, 2007.

It is the direction of development that Baosteel Co Ltd. sticks to for a long term to build the resource saving & environment-friendly enterprise by the road of sustainable development. The core enterprise Baosteel Branch aims at the world level and explores a new road of industrialization development by adopting clean production technology and controlling strictly the formation and effluent or release of contaminations, which set up an example for sustainable development of the domestic steel makers. After the additional issuing and merging, the various branches and affiliates of Baosteel Co Ltd established respectively scientific and normative environment management systems, relying on the advanced management and techniques of Baosteel Branch. As a result of effort of more than 2 years, the branches and affiliates of Baosteel Co Ltd have passed successively the external examination for ISO14001 Environment Management System and reached the requirements on environment-friendly enterprises.

To fulfill the needs of the development of automotive industry of China and to promote steel sheet manufacturing level, Baosteel developed cold-rolled and zinc-plated sheet with excellent mechanical properties and surface quality that meets the requirements on medium to high grade inner and outer sheet of passenger car body as a result of years of effort in innovation of R&D mechanism and improvement of technical equipment, etc. Currently Baosteel has more than 270 designations of high grade automotive sheet. Among them the high strength IF steel, bake hardened steel, isotropic steel, cold-rolled & CGL duplex steel and TRIP steel filled the domestic gap in this field. The smelting control technology of super-low carbon, nitrogen and oxygen, and the technology of improved accuracy in hot-rolled strip temperature control in these products have helped to reach world level in the stability of strip performance, as well as formed 102 items of technical know-how and 56 patents, including 16 invention patents.

China Securities Journal reported that Handan Steel closed at CNY 4.32 per share August 4th lower than its net asset per share CNY 4.38 with P/B going at 0.99, indicating the first steel share falling below the net asset the recent year.

As per report, the market analysts are worried about increasing downward pressure of steel price in the second half year, so is the steel stock price and Songshan, Anyang Steel and Benxi Steel are all facing the risks of nearing the net asset.

Songshan Co Ltd was closing at CNY 4.7 per share recently with P/B standing at 1.04. Apart from this, five other companies including Anyang Steel, Benxi Steel Plate Co Ltd, Valin Steel Tube & Wire have their P/B no more than 1.2, among the 31 listed steel companies.

The analysts said it's been in margin of safety and the investment value is actually protruding. The international steel giants have price earning ratio of 8 to 12 while 21 Chinese mills have it below 10, with Baosteel, Wuhan Steel and Tangshan Steel below 8, and Laiwu Steel, Anyang Steel, Taigang Stainless and Nanjing Steel below 7.

Concern that steel price may dive in later 2008 have been panic fear among the investors, while the CISA revealing of below two digit crude steel growth for the first half year also triggers unease. The association said if steel demand comes down substantially, export keeps slipping while production goes widely up, the steel market may undergo ups and downs in H2 of 2008.

China Direct Inc has posted net income of USD 7.5 million in April to June 2008 quarter up by 226% YoY as against USD 2.3 million in April to June 2007 quarter on strong growth in its business helping to supply US industries with magnesium from China. Revenue nearly doubled from USD 40 million to USD 76.2 million while, operating expenses more than tripled to USD 2.6 million.

Mr Marc Siegel president of China Direct said that "We continue to expand our magnesium segment and anticipate strong top and bottom line growth in this segment for the foreseeable future."

China Direct owns controlling stakes in Chinese metals, chemical and recycling companies and helps them gain access to US capital. In the latest quarter, China Direct added it biggest consulting client, China Armco Metals Inc, a metals distributor that plans to launch a scrap steel recycling operation next year.

It is reported that due to slow demand from both domestic and global markets, most of China’s mills and exporters lowered their GI export price.

As per report, one of steel exporters has lowered its CGI coils by USD 30 per tonne. The GI price is expected to drop further as a result of weak demand.

Recently, Angang Steel Group sold its CGI coils in thickness of 0.7mm at CNY 7,300 per tonne to CNY 7,500 per tonne. Meanwhile, the price of CGI coils in thickness of 1.0mm produced by Benxi Steel has dropped to about CNY 7,100 per tonne.

The US Department of Commerce announced its affirmative final determination in the antidumping duty investigation of imports of steel wire garment hangers from China. Steel wire garment hangers are produced primarily for use by dry cleaning, industrial laundry, textile and uniform rental industries.

US DOC determined that exporters from China have sold steel wire garment hangers in the United States at 15.44% to 186.98% less than normal value. China’s two mandatory respondents, Shanghai Wells Hanger Co Ltd and Shaoxing Metal Companies received final dumping rates of 15.44% and 94.06% respectively. Thirteen exporters qualified for a separate rate of 54.75%. All other exporters received a China-wide rate of 186.98%.

As a result of the affirmative final determination in the China investigation, Commerce will instruct US Customs and Border Protection to continue to collect a cash deposit or bond on entries of hangers from China based on the final rates for all companies.

The US International Trade Commission is scheduled to issue its final injury determination in the China investigation on or before September 22nd. If the ITC determines that imports from China are injuring, or threatening injury to, the domestic industry, Commerce will issue an AD order. If the ITC makes a negative injury determination, the China investigation will be terminated. The petitioner for this investigation is M&B Metal Products Company, Inc of Leeds, Ala.

Interfax China reported that US based Alcoa Inc is in acquisition talks with Panzhihua Pearl Aluminum Co Ltd an aluminum smelter in China's southwestern Sichuan Province with an annual output of 50,000 tonnes.

An official with the foreign investment department of the Panzhihua City government said that "Alcoa wishes to acquire a controlling stake in Panzhihua Pearl Aluminum, and the two companies have recently reached some initial agreements on the acquisition."

According to the official, a delegate of Alcoa visited Panzhihua Pearl Aluminum last week and held talks with the company and local government officials to discuss the possibility of a merger.

The official said "This is not the first time that Alcoa visited the company. Although the two companies are still in negotiations over further cooperation details, we hope the deal can be settled as soon as possible. Alcoa visited the company several times in 2006 regarding a potential acquisition, according to the Panzhihua government.”

The project which is located in the Vanadium and Titanium Hi-tech Zone, in Panzhihua City, Panzhihua Pearl Aluminum commenced operation of a 50,000 tonne aluminum smelting project in April this year.

According to the official the project represents the first phase of a two phase project, which is to have an annual production capacity to 100,000 tonnes of primary aluminum.

According to Panzhihua government information the company suspended construction on the first-phase 50,000 ton project in 2003 due to funding problems, after staring construction in early 2002. The two phase 100,000 tonne project requires total investment of CNY 1.2 billion.

FFBH reported that Ukrainian Vorskla Steel started raw material deliveries for metallurgical plant Kremikovtzi after they were discontinued on August 1st 2008.

According to the report, the deliveries will take place amidst uncertainty as the forthcoming court ruling is expected to declare the steel plant bankrupt.

Vyksa Metallurgical Plant summarized the production activity for July and 7 months of 2008 as under.

As per report, in July it was produced 124,582 tonnes of pipes and 866,198 tonnes of pipes in 7 months.

Large diameter pipes in July are reported at 58,848 tonnes and at 421,380 tonnes for January to July 2008.

Kolesoprokatny VMZ produced 76,218 pieces of rail wheels sets in July 2008 and 502,957 pieces since the beginning of the year.

OMK Group’s Gubahinsky Coke has summed up the results of production activities in July 2008.

During the reporting month, Gubahinskom Coke produced 47,800 tonnes of coke. In the seven months of this year, coke production was 311,800 tonnes which exceeded the figure for the same period last year to 24.8%.

Converting coal tar in July exceeded the target at 192.6 tons.

Ukrainian Journal Staff cited Mr Oleh Aleshin a partner of the Vasil Kisil & Partners law firm, which is representing Vanco in the case as saying that the litigation between Vanco Prykerchenska Ltd and the Ukrainian government on a dispute over the development of the Prykerchenska oil and gas field, as saying that the case may drag on for 1 to 1.5 years

He said that "I expect the procedure may take a year or a year and a half."

Itar-Tass reported that several Russian oil companies have refused to disclose information the Federal Antimonopoly Service wants for investigation. The oil majors in question are LUKOIL, Gazprom-Neft, TNK-BP Holding, Rosneft and Surgutneftegaz.

According to the report, the FAS demanded the disclosure of information in connection with cases opened over suspected violations of the law on the Protection of Competition.

The deadline for presenting the requested information expired on August 1st 2008 and the sole company that has met the FAS’s demand is Surgutneftegaz.

German metals group Cronimet announced that it has bought with a group of unnamed Dubai based investors a 70.5% shareholding in Indian ferrochromium producer GMR Ferro Alloys & Industries Ltd. The seller was India's GMR Group and no price was given.

Cronimet in a statement said that approval from Indian competition authorities had already been received.

GMR Ferro Alloys, based in Tekkali Mandal in India's Andhra Pradesh state, produces about 27,500 tonnes of ferrochromium annually. About 75% of output is exported to Europe, China, Japan and South Korea.

Cronimet said the move continued its international expansion strategy. The group has global operations in recycling of steel alloy scrap and trading of ferroalloys and chromium nickel alloys plus a wide range of other metals largely focused on the stainless steel industry.

Cronimet has 50 locations worldwide and handled 1.05 million tonnes of metal sales in 2007 generating turnover of EUR 3.2 billion in 2007. A consortium headed by Cronimet in April this year acquired the mining rights to a chrome ore deposit in the Bushfeld geographical complex in South Africa. Cronimet plans to start South African chrome ore mining by the end of 2008 and hopes 2009 ore production will reach 400,000 tonnes.

It is reported that Europe’s leading 3 stainless steel producers have cut their alloy surcharge on Series 304 stainless steel in line with the fall in the nickel price.

ArcelorMittal has reduced its surcharge from EUR 1676 per tonne to EUR 1566 per tonne, ThyssenKrupp from EUR 1658 per tonne to EUR 1583 per tonne and Outokumpu from EUR 1636 per tonne to EUR 1554 per tonne.

JMB reported that Japanese imports of stainless steel jumped by 2.2 times in June 2008 from the previous month to stand 19,139 tonnes, but decreased by 11.7% YoY as compared with the same period of last year.

The total import value of stainless steel products reached USD 79.67 million and the import price on average was USD 4,162.7 per tonne.

Besides, Japan imported 23,627 tonnes of special steel in June 2008, a 56.8% MoM increase from last month.

It is reported that, Boji Steel, a privately owned Chinese mill, plans to start up a 20,000 tonnes per year stainless welded pipe facility by the end of August 2008 or early September 2008.

The stainless steel pipe will be produced in 300 series and part of the production would be for export.

PT International Nickel Indonesia reported a 58% YoY drop in first half profit because of lower prices. Net income fell to USD 295.6 million in the January to June 2008 period from USD 707 million in January to June 2007 period. Sales dropped to USD 819 million from USD 1.3 billion.

Rising supplies of nickel and reduced demand from steelmakers have led to a 35% YoY decline in prices in the first half from a year ago period. Parent Vale is seeking to expand in coal and copper, helping to offset the nickel slowdown.

PT Inco has fallen 57% this year as compared with the 20% drop in the benchmark index. Nickel for delivery in three months on the London Metal Exchange averaged USD 27,476 a tonne in the six months through June 2008, down from USD 42,173 a tonne in the year earlier period.

Cost of goods sold rose by 26% YoY to USD 388 million in the first half of the year. Foreign exchange losses dropped by 60% YoY to USD 211 million.

Chromex has started production at its Stellite chromium mine in South Africa.

The operation will initially sell run of mine ore but Chromex is also looking at building a processing plant that could be completed by the end of 2008. The plant will be funded from sales of chromium ore from the mine.
Stellite is an open cast mine with projected production of 30,000 tonnes per year of chromium ore.

Thompson Creek, the world's No. 5 producer of molybdenum earned CAD 60.4 million in the April to June 2008 quarter up from CAD 56.8 million in the year before quarter.

Its molybdenum output rose by 38% to 6.2 million pounds, while realized prices for the metal rose by 10.4% to CAD 32.68. Production costs per pound climbed to CAD 7.49 from CAD 5.66 in the earlier year period.

Thompson Creek said that it is on track to meet its 2008 production expectations of between 23 million pounds million and 24.5 million pounds of molybdenum and more than 34 million pounds next year.

Mr Jose Carlos Martins head of Vale's iron ore business said that Vale has improved its logistic performance over the past months and is in position to ship 350 million tonnes of iron ore annually. If confirmed, this would be up from the current logistics performance of around 330 million tonnes over past 12 months.

Mr Martins said that "July 2008 was an excellent month, August 2008 is going well. We are currently running above our target."

He said that Vale's iron ore stocks had grown to about 20 million tonnes after some difficulties in the past quarters with equipment problems at a port, rain, and landless peasant invasions on its main railway from the Carajas mine in northern Brazil.

According to Federation of Indian Mineral Industries, India’s iron ore shipments have fallen by up to 20% in July 2008 following imposition of 15% export duty and higher freight charges.

Mr Rahul Baldota president of Federation of Indian Mineral Industries estimated the drop in the range of 15% to 20%.

Mr Baldota told reporters that “Iron ore exports have become unviable for Indian miners due to the 15% ad valorem export duty, increase in freight charges and decline in prices of the ore in global market.”

According to FIMI, rail freight for iron ore export has increased by almost 70% the last few months. The hike in freight charges is equivalent to around 15% of freight on board realization of the ore. He said that “In Karnataka alone, the number of railway indents requisitioned to ferry iron ore to ports have declined from 20,000 a few months back to about 1,000 now.

Mr Baldota said that “After the recent hike in rail freight, movement of iron ore to ports is being done via road and exporters are canceling the indents.”

Out of about 200 million tonnes of total ore production, India exports about 100 million tonnes of fines while 85 million tonnes are consumed by the domestic steel industry.