Indian domestic steel prices continued their down slide yesterday. But long products were severely affected, which is reflected in 131 point fall in LPPI on Monday. But fall in flat products was some what lesser. Overall, the Indian Steel Price Index fell by 79 points.

LPPI – Long Product Price Index
FPPI – Flat Product Price Index
ISPI – Indian Steel Price Index

Long products

Flat products

CNBC-TV18 cited Mr Ratan Tata chairman of TATA Steel as saying that the steel industry faced margins pressure from the cost rise in iron ore and coking coal in FY08.

Mr Ratan Tata said that "The steel industry absorbed most part of the cost through steel price increases. However, the impact of cost hikes and steel price hike is to be felt only this year."

According to Mr Tata, the level of iron ore and coking coal prices will dictate steel prices. Mr Ratan Tata said that "The company is currently self sufficient in iron ore for Jamshedpur operations. It will invest in, enter into contracts, or ink pacts with mining companies for iron ore and coking coal. We are looking to tie up iron ore and coking coal for Corus in UK and The Netherlands."

He added that India is positioned to be a major self sufficient, low cost steel manufacturing nation and we need to maximize use of domestic iron ore and coking coal.

He expects some slowdown in economic activity and consumer demand.

'Directory of Refractory Makers in India' in India is one of the top sources of information available on refractory makers in India. It is one of the most comprehensive and accurate directory of refractory makers in India that ever published. This powerful directory is your connection to the entire refractory companies in India.

NTPC Limited announced that it has inked a MoU with NHPC Limited, Power Finance Corporation and TATA Consultancy Services for a JV company to set up a national power exchange. The exchange will provide an electronic platform for trading of power.

NTPC said that the JV, which will have an authorized capital of INR 50 crore, will be registered as a public limited company.

The proposal comes in the wake of a breakdown in talks between NTPC Limited & the National Stock Exchange, National Commodity and Derivatives Exchange combine, who were earlier planning to jointly set up a power exchange. Despite having submitted an initial application before the Central Electricity Regulatory Commission in July 2007 seeking permission to set up a power exchange, NTPC and the NSE-NCDEX combine were unable to firm up the modalities of jointly floating the new venture and subsequently parted ways earlier this year after failing to reach consensus on issues of management control of the proposed exchange.

The release that NSE-NCDEX has gone on the float a separate exchange named Power Exchange India Limited. With the Financial Technologies-PTC India Limited led Indian Energy Exchange already off the block, the stage seems set for three major pan India power exchanges.

BS reported that after 50 years in the business of consulting engineering MN Dastur & Company is looking to branch out to value added services with an accent on the global market, as part of its efforts to suit the needs of the present day industry. Global operations which currently account for around 8% to 9% of the company’s revenues would increase to 12% to 15% over a period of time.

Mr Supriya Das Gupta CMD of M N Dastur & Company said that the moves are expected to take its revenues from INR 230 crore last year to INR 400 crore over the next 6 to 8 years. He added that “We will modify operations according to the needs of the industry.”

As a step in the direction, the company has set up a new division, Dastur Business & Technology Consulting which is offering clients globally specialized business strategy and technology consulting services. As per the report, Dastur Business & Technology Consulting has already bagged 2 contracts. It would be advising the Bahrain based Islamic bank, Gulf Finance House for its proposed USD 5 billion investment in steel plant capacity while the other one was developing an information technology outsourcing strategy for a leading bank in France.

Mr Atanu Mukherjee president technology consulting of M N Dastur & Company said that broadening activities into core sectors would hedge out the cyclicity of the business. Mr Mukherjee is one of the two executives who have been inducted to steer the company’s global business.

ET reported that cement makers feel their margins will remain under pressure for the next several quarters as excess capacity build up in the country is expected to keep prices from moving up. This is despite various infrastructure development projects which is keeping demand alive even as real estate development has witnessed a slowdown.

Mr AL Kapur MD of Ambuja Cement said that “Cement prices will down by INR 10 per 50 kilogram bag in a year. We already have a case of surplus capacity in the north and we expect to add more capacity in the coming quarters, which will worsen the situation.” He said that good times were now history for cement makers as demand has weakened and supply had increased significantly, especially in North India.

In the April to June quarter, ACL reduced cement prices by INR 3 to t INR 5 per bag in Gujarat, while prices remained unchanged in other markets at a time when input costs have shot up. Only in some parts of Maharashtra, ACL increased prices by INR 2 to INR 3.

Mr HM Bangur MD of Shree Cement said that “The bullishness surrounding the cement sector has ended due to overcapacity. We may not be able to pass on the increase in input cost to consumers.”

Mr DD Rathi CFO of Grasim Industries said that “The economy’s performance is below expectation and will result in lower demand for cement.” He added that “Overcapacity alone will not result in decline in prices. If input costs keep rising and cement makers still reduce prices, many of them will just go out of business. Therefore, it’d be difficult to say if prices will surely decline in a year.”

The report added that cement industry has added around 20 million tonnes of capacity in the Q1 of calendar year 2008 taking the existing installed capacity to 203 million tonnes per annum. The industry is expected to increase its capacity to 254 million tonnes by the end of next calendar year, which may create a huge supply demand mismatch. Last year, the capacity utilization of the industry was over 90% with several plants working at over 100% capacity.

One can have an idea about the importance of the construction industry in India from the fact that it is the second largest contributor to the GDP after agriculture. The industry provides employment to more than 3% of the population. Its market size is around USD 55 billion and is growing at around 7% to 8% per annually, faster than the GDP growth. As the Construction sector is growing faster than the country’s project GDP growth, there exist a tremendous potential for development in the related area.

“Directory of Construction Companies in India” is one of the top sources of information available on a construction companies in India. It is one of the most comprehensive and accurate directory of construction companies in India that ever published. This powerful directory is your connection to the entire construction companies in India.

Published in August 2008, “Directory of Construction Companies in India” has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Construction companies.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the construction companies in India, this directory will save you time and effort in finding the information you need. This report will enable you to profile construction companies in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers. It is also an indispensable guide to India’s construction sector.

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

This report covers name and product details of 1000 Construction Companies in India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Construction Companies in India’
1. Company name -1000 entries
2. Address-1000 entries
3. Phone number-951
4. Fax number -652 entries
5. Mobile number-349
6. Email -749 entries
7. URL – 593

Format - PDF File (Total no of pages – 545), delivery by Email on receipt of payment of USD 950 or equivalent in INR. Additional charges would be levied for delivery of file on a CD or in printed form

How to order
Ordering the report is simple. You can order your copy to reports@steelguru.com for getting an invoice for the report.

BL reported that Andhra Pradesh is set to emerge as a major hub for sea borne trade within the next 4 to 5 years, due to the initiative being taken by the state government to develop facilities along the State’s 978 kilometer long coast line. The traffic throughput of the ports in Andhra Pradesh is estimated to reach the level of 145 million tonnes by 2011-12 as against 21 million tonnes in 2007-08.

A beginning had already been made with the first phase commissioning of 4 berths of the INR 1,200 crore Krishnapatnam Port in July and the launching of trial operation of Gangavaram Port. The commissioning of the Krishnapatnam & Gangavaram ports is to double the throughput to 42 million tonnes in the current financial year itself and further to 65 million tonnes in 2009-10 and 95 million tonnes in 2010-11 as more and more berths will be added to these ports. In fact, more than one third of the projected 145 million tonnes of traffic by 2011-12 is to be handled by Gangavaram and Krishnapatnam ports with Gangavaram Port accounting for 35 million tonnes and Krishnapatnam Port 27 million tonnes.

Mr KV Brahmananda Reddy special secretary of Infrastructure & Investments Government of Andhra Pradesh said that it would include development of non major ports on public private partnership model and modernization and up gradation of existing facilities.

Mr Brahmananda Reddy said that “The total private investments in various port projects will be about INR 21,710 crore including INR 16,800 crore for the Nizampatnam and Vodarevu ports and the corridor. He added that the port development program of Andhra Pradesh fits well into the revised National Maritime Development Program which aims to develop total port capacity of 1,500 million tonnes in the country by 2011 or 2012.”

It is reported that Godawari Power & Ispat a will invest INR 1,570 crore for setting up of manufacturing facilities in Chhattisgarh.

Godawari Power in a filing to BSE said that Godawari Power has entered into a MoU with Chhattisgarh government to this effect.

As per report, the total project costs of INR 1,570 crore would involve setting up of plants including a sponge iron, pig iron, steel billets, calcinations and iron ore pelletization plant, it would also come up with facilities for steel roll ed products, power and ferroalloys.

Godawari Power said that the project would be implemented through a special purpose vehicle in the name of Krishna Global Mineral Limited which would be a subsidiary of Godawari Power and Plant.

ET reported that NTPC has decided to exhaust all provisions in the contract with Technoprom Exports and Power Machines for solving the impasse over project cost escalation, before an empowered group of ministers is formed to look into the rise in project cost.

Senior official said that “For starters, NTPC will try to solve the impasse through an arbitrator as mentioned in the contract deed. If this fails, NTPC will try to enforce the joint deed of undertaking in case the main supplier does not supply the equipment. Even if these fail, it may also be followed by encashment of bank guarantee submitted by the equipment suppliers.”

Since the Russian supplier Technoprom Exports has been demanding a rise in contract value in excess of 20% on grounds of increase in steel prices and other raw material, work on NTPC’s INR 8,700 crore 1980 MW Barh-1 project remains suspended.

As per the report, Technoprom was to supply boilers to the project, while turbines and generators were to be sourced from Power Machines. The project faced delay because the cost overrun component exceeded 20% of the project cost. Earlier, the power ministry was trying to delink the contractual dispute the project cost and the cost overrun portion with project implementation. Earlier, the ministry, which had intervened to solve the issue had asked them to start work on the project, while the excess cost portion would have been sorted out subsequently.

Project Today reported that Hinduja Group has evinced keen interest in investing in Karnataka and plans to invest INR 1,000 crore in various projects in the state.

Ass per report Hinduja Group plans to invest in the areas of power generation, building airports and medi tourism project.

According to the Tamil Nadu Pollution Control Board officials, public hearing on the proposed Titanium Dioxide Plant to be set up by Balamurugan Chemicals a Private venture was held at Tuticorin 165 kilometer.

Company representatives and the district panchayat president addressed the meeting last evening in the presence of Mr P Anbarasu TNPCB District Environmental engineer and collector In charge.

District Panchayat president and chairman of the district planning committee Mr N Chinnadurai raised concern about the huge quantity of water required for the project and wondered how the TWAD would supply such a huge quantity when the district itself was facing problems.

Mr John P Rayan secretary of Democratic unorganized workers Trade union alleged that the project would cause serious health hazards to residents in the area. There was no mention of how effluents would be discharged.

Mr S Shanmugasundaram of TNPCB engineer said that the report on public hearing would be submitted in a week's time.

As per report, the INR 85 crore project the company representatives claimed would produce 15,000 tonnes of titanium dioxide a year. Carbon dioxide and Iron oxide pigment would be among the other substances as by products.

The report added that the company would get 645 cubic meter of water a day from Tamil Nadu water and drainage board. The plant would utilize limenite, furnace oil, sulphuric acid, iron scrap, magnisite ore and magnesia as raw materials. For captive power generation biomas would be used as fuel for the boiler.

BL reported that the appraisal committee of the union ministry of Environment & Forests has not yet given clearance to the 2 proposed thermal power plants in Andhra Pradesh in the private sector, one in Srikakulam district situated in the Nowpada swamps and the other near Machilipatnam port in Krishna district.

Mr Nirmal Narendar Andrews chairman of the appraisal committee of the union ministry of Environment & Forests, coastal projects and tourism said that the 2 projects had not been cleared yet. He was here on Friday to participate in a one day workshop on environmental problems in coastal zone, organized by the AP Pollution Control Board.

Mr Andrews said that “There is no room for any skepticism on the way public hearings are conducted and the way the objections are received. Every objection we take seriously and we address all these concerns, ecological or otherwise. A public hearing is not merely a ritualistic exercise. All the data on the surrounding environment would be taken into account and all efforts would be made to eliminate, or at least mitigate, pollution. The emphasis would always be on ecologically sustainable development.”

Mr Rajeswar Tiwari member secretary of the AP Pollution Control Board said that the public hearing on the proposed 1,300 MW thermal plant at Polatitippa in the vicinity of Machilipatnam port in Krishna district would be held on August 28th. He said that “The environmentalists, NGOs and others are free to register their objections at the public hearing and they will be taken note of.”

Mr Tiwari said that when it was pointed out to him that the ecologists were also objecting to the location of Srikakulam thermal plant as it was very near Telineelapuram bird habitat in the district, all the relevant factors would be considered before giving clearance. It may be noted that migratory birds from Europe and other parts of the world visit the Nowpada swamps every year.

As per report, the 2 projects have kicked up a controversy as environmentalists and NGOs allege that they are situated in ecologically fragile zones very close to the Bay of Bengal and they pose immense threat to the coastal environs.

BL reported that the government of Karnataka has informally agreed to negotiate a fresh draft tripartite agreement with the government of Tamil Nadu & National Hydro Electric Power Corporation for building 4 hydro power projects on the Cauvery River.
Mr Jairam Ramesh union minister of State for Commerce & Power who met the CM of Karnataka Mr BS Yeddyurappa said that Karnataka was cautious but nevertheless willing to go ahead with the 4 projects that would collectively have a capacity of 1,150 MW. Mr Ramesh told Business Line that Mr Yeddyurappa would discuss this with his Cabinet colleagues and get back to him. He sees Karnataka’s willingness to open dialogue with Tamil Nadu as a measure of progress, for earlier, the State was not willing to even go that far.

As per the report, two of the 4 projects, Sivasamudram and Hogenakkal are run of the river projects and as such would need not displace anybody. The other 2 are Mekadatu and Rasimanal, it would lead to submergence of forest land. The four projects will collectively have a capacity of 1,150 MW. Two of the four projects Sivasamudram 210 MW and Hogenakkal 120 MW are run of the river projects and as such, would need not displace anybody. The other two Mekadatu 400 MW and Rasimanal 360 MW will lead to submergence of forest land(mostly in Karnataka. The report added that if the 2 states agree work on the 2 run of the river projects will start immediately and the projects could generate electricity in 5 years.

It said that the power produced from these projects will be shared by only the two states in the same proportion as the area of land submerged.

Indian railways ministry has decided to suspend plans of a new alignment in the Katra-Qazigund section the ongoing construction work on a 70 kilometer stretch in the Kashmir rail link project.

The ministry has suggested examination of an alternative alignment between Katra and Dharam in the Katra-Qazigund section as the current one is found to be too difficult. The earlier survey of the 70 kilometer long INR 6,800 crore project was found to be inadequate. The work could not progress much due to repeated collapse of tunnels while cutting the mountains for the rail route.

It is reported that Hindustan Zinc Limited has invited offers for the supply of as many as 7 shipments of low ash metallurgical coke.

According to the report, the coal is for delivery between September and March and each shipment should be of 10,000 tonnes.

According to the document, Bidders much quote prices on a FOB. Hindustan Zinc Limited says drilling will take about 8 weeks.

The 16th Public Private Partnership Appraisal Committee meeting, chaired by Finance Secretary has granted approval to 10 projects of National Highways. The estimated project cost of the approved projects is INR 10,507.22 crore.

The projects are located in eight states of Maharashtra, Tamil Nadu, Bihar, Kerala, Goa, Andhra Pradesh and UP & Uttrakhand.

Since its constitution in January 2006, PPPAC has granted approval to 65 projects, with an estimated project cost of INR 53,284.95 crore. These includes fifty six highways projects, six ports projects, two airports projects and one tourism Infrastructure project.

Project Today reported that government of Andhra Pradesh on August 8th 2008, gave a letter of award to consortium comprising Nava Bharat Ventures, Maytas Infra, Italian Thai Development Public Co and IL&FS for undertaking the development of the Hyderabad Metro Rail project on DBFOT basis.

The project comprises of three lines as follows:

The metro project cost as per the state government estimates is around INR 12,000 crore. In addition, the state government is also providing real estate development rights for 18.5 million square feet.

NMII consortium emerged as the lowest bidder for the project. NMII consortium agreed to pay to the state government over a period of 34 year period an amount which has a net present value of INR 1,240 crore based on a discount rate used by Andhra Pradesh government of 13.5%.

It is likely that Nippon Steel Corporation will face a considerable delay in starting its HR coil export negotiations on shipments to South Korea in the October to December 2008 quarter. In a normal year, NSC begins its negotiations in early August on HR coil exports to South Korea for Q4 shipments. This time, though, there is a strong possibility that the start up of the negotiations will lag into the week of August 25th 2008 or later.

Having a major impact are the aftereffects of a fire that broke out July 29th 2008 around the number coke oven in NSC's Yawata works. At present, the Yawata works is in continued production with resumed operations of the Tobata number 4 blast furnace by making use of the existing coke stock and relief coke supplies from NSC's other works. For its part, NSC is struggling avoiding an adverse influence on various customers.

But it is undecided so far when to resume operations of the number 5 coke oven in the Yawata works. As a result, the after effect of the accident has begun to arise. There is even a view that the Yawata works may lose 150,000 to 160,000 tonnes of crude steel production this week, compared with an initially forecast 10,000 tonnes or so. Besides, a malfunction is reported in blast furnace operations at NSC's other works. All things considered, NSC could end up with a major reduction of crude steel production from its works as a whole, experts point out.

As a result, NSC indicates its position to start negotiations on its HR coil exports to South Korea for Q4 shipments once an exportable volume shapes up. There are suggestions that NSC may offer a moderate price increase of USD 100 per tonne or less in the negotiations, compared with a major price increase of USD 200 per tonne or beyond in past offers.

Meanwhile, recent offers in China's HR coil exports to South Korea indicate a trend toward offering a certain price reduction, according to market sources. In contrast, HR coil demand for improved infrastructure still continues strong both in China and South Korea.

Japan’s Nippon Steel Corporation is seeking a targeted price of JPY 150,000 per tonne FFOB for ship plate with Chinese shipbuilding companies in the fourth quarter. The price is JPY 25,000 per tonne higher from the third quarter exporting to China.

Besides, the price negotiation for HRC in the fourth quarter between NSC and South Korean re rollers is said to be delayed. The negotiation was usually held at the beginning of August. However, it will be postponed to August 13th 2008.

(Sourced from Yieh)

Thai media reported that Thailand's biggest steelmaker Sahaviriya Steel Group of Companies is looking for ways to better integrate its operations in a bid to strengthen negotiating power with global steel giants who are hunting smaller firms to acquire.

Mr Win Viriyapraphaikit president of Sahaviriya Steel said that ''We are aiming at investing in ore mining, pushing our THB 500 billion smelting project to start as soon as possible and a steel production plant overseas also is in our sights. In doing so we could achieve a goal of being the region's largest integrated steel producer. I have to admit that it is very difficult for us to keep a majority holding in the assets we founded.''

Surging demand for steel products over the past 5 years, coupled with capacity utilization constraints, have been key catalysts. As a result, says Mr Win, a handful of gigantic players can wield huge influence on prices. He added that ''With ArcelorMittal's output bigger than the combined capacity of all its peers, it can announce production cuts when steel market prices soften.''

Mr Win said that steel bar was USD 1,500 per tonne in July 2008 as compared with USD 570 in June 2006, with steel sheet up to USD 1,200 a tonne from USD 600 at the end of last year. He said Sahaviriya's huge smelter would be a key weapon to help the company fight back against global market dominance by a few foreign companies.

Mr Win also called for support from the government in the form of a master plan for the steel sector, similar to plans prepared by rival countries. Among them are Vietnam, China and Pakistan, which view steel as a national strategic industry.

It is reported that Nippon Steel Corporation is planning to import an estimated JPY 7 billion worth of coke from China to ensure continued steel production even after last week's fire at coke making facilities in its Yawata steelworks in Kitakyushu.

The report added that Nippon Steel may import more coke in the future if it takes a long time for the fire damaged facilities to resume normal operations.

It may be noted that the two coke furnaces at the facilities have both been suspended since the fire. Production is expected to resume at one of them as early as in August 2008, but it may be some time before the other comes back on stream.

JMB reported that Japanese major 7 electric furnace steel makers including Tokyo Steel Manufacturing posted lower recurring profit for April to June 2008 quarter from same period of 2007 while 3 makers posted recurring loss.

They were suffered from higher ferrous scrap cost. However, their profitability recovers due to plunging scrap market and surging steel selling price. Five electric furnace steel makers expect higher profit for the full year to March 2009.

Nigeria is coming to terms with what western powers told its policy makers 30 years ago that the steel plant General Yakubu Gowon was building for the nation would be a white elephant project. Several decades after several billions of dollars were pumped into the Ajaokuta iron and steel plant, the project is dogged with traumatic failure. It has not produced the needed iron and flat sheets which are needed for industrial take off of any nation.

According to Mr Alhaji Abubakar Alhaji minister of commerce in a chat with Financial Vanguard in Lagos during the Iron & Steel Summit held in Lagos last week, “When the West told us that we do not need steel plants, that the ones we were building were white elephant projects, I just laughed, because I knew then there was no way you could become developed if you do not produce your steel. No way, it was clear they did not want to see us industrialized, but I knew that everything about civilization has got to do with steel, so we pursued it.”

Reflecting on the ever tortuous route to steel development in Nigeria, he said that “It then became apparently clear to the military government headed by Gowon that the West had no sincere desire to help Nigeria develop a steel plant. So in 1967, at the onset of the Nigerian Civil War, Mr Yakubu Gowon and his new military regime invited and received a team of Soviet experts commissioned to conduct a feasibility study for the possibility of building an iron and steel plant in Nigeria."

Consequently, in 1970, Nigeria signed a contract with the Techno Export to carry out further geological surveys to determine the availability in sufficient quantity of various local resources needed for steel production.

The Nigerian government then established the Nigerian Steel Development Authority in 1971, with the responsibility of planning, construction and operating steel plants in the country, as well as carrying out geological surveys, market studies, metallurgical research and other related studies.

The National Steel Council Decree number 60 of 1979 restructured the Steel Industry & Delta Steel Company Limited, the Ajaokuta Steel Company Limited and the Inland Steel Rolling Mills of Oshogbo came into being. Unfortunately, 30 years after, these plants have not seen Nigeria to even the point of industrial take off. Instead, the plants are dogged by controversies, non performance and non production. Most of the iron and steel required for construction and building are imported.

Nigeria produces 300,000 tonnes of iron and steel annually. With this low level of steel output, experts doubt the ability of the present government to frog leap from its present low level on the economic ladder of 42 to 20 in the next 12 years.

Experts are worried that Nigeria’s dream of becoming one of the top 20 economies by 2020 without a viable iron and steel sector will become just one of those government gimmicks and a laughable rumor.

Realizing the importance of this, the federal government convened a stakeholders’ summit in Lagos last week to brainstorm on the way forward for the sector. The nation from the mood at the conference seems to have realized that the problems with the Nigerian Iron & Steel sector, is as hard as steel itself. They agree that just as with the right solvents or heat, alloys can be dissolved and melted, Nigeria needs a rugged political will to dissolve or melt away, the jinx that many have agreed, has been cast on the Nigerian Steel sector.

(Sourced from Vanguard)

It is reported that Vietnam's Shipbuilding Industry Group has planned to cooperate with Malaysia's Lion Group to build up a steel plant with annual capacity of 4.5 million tonnes to 5 million tonnes in Vietnam.

Both companies have set up a specialized company to study the feasibility for increasing to 10 million tonnes at the steel plant.

In the first stage, the mill will have an initial capacity of 4.5 million tonnes a year. The company will invest another USD 7 billion to reach a capacity of 10 million tonnes by 2025.

(Sourced from yieh.corp)

CONTENT

Topics
1. Indian steel: an introduction to its structure and growth
2. Capacity: crude and finished steel: growth trends by major producers and segments.
3. Production trend analysis, crude and finished steel, for major producers and segments.
4. Consumption trends by products and in different regional markets.
5. Detailed status of the steel market in India, by products and with specific details such as size and shapes for HR Coils, CR Coils and Sheets, Galvanized sheets, Rebars, Sections, Wire Rods and Plates.
5. New investments in steel: latest status of the projects.
6. Expected production of steel year wise till 2015, by products. Different scenarios.
7. Latest forecasts of annual steel demand by products till 2020.
8. The alloy and stainless steel market: trends in investment, production, consumption.
9. Forecast of alloy and stainless steel demand till 2020.
10. Specific opportunities in alloy and stainless steel.
11. Steel price trends and short term forecasts.
12. Costs of production of steel in India: past trends and forecasts.
13. The iron ore factor in Indian steel. Advantages and opportunities.
14. Details of captive mines with Indian steel producers and new prospecting and mining leases granted to them.
15. Coal and energy issues for the Indian steel industry: how is the industry placed today?
16. What is the impact of the rise in raw materials prices on major Indian companies or segments of the industry?
17. How are the merchant pig iron and sponge iron producers shaping up?
18. What is the steel scrap scenario? Estimates of domestically generated scrap and imports.
19. What are the M&A opportunities in Indian steel?
20. India’s external trade in pig iron, sponge iron, steel, iron ore and coal. What is the future for each of them?
21. Strategic Options and Recommendations

190 pages with more than 70 charts and tables

Scheduled for release on 1st September 2008

Price on release: USD 5000 or equivalent in INR

You can order your copy to reports@steelguru.com

Business World reported that the local government of Iligan City is willing to forego half of the PHP 2 billion taxes due from Global Steel International Inc, which have piled up since 1999 as ownership of the sprawling properties of Global Steel International, has yet to be settled.

Mr Lawrence Cruz Mayor of Iligan city said that transfer of ownership to the Indian owned operator has yet to be settled. He added that "GSII owes us PHP 2 billion in real estate tax arrears including penalties since 1999 when it closed operations. Penalty and interests partially will be waived but we will not condone the basic tax. This means, there is about half of the amount due us."

Mr Cruz said that some companies owe the city real estate taxes but the biggest debtor is the city’s steel firm. The tax arrears of NSC covered the period 1999 to 2004 in the amount of PHP 177 million, more or less. He added that "The tax liability we are referring to pertains to National Steel Corporation and not that of Global Steel Philippines."

NSC, which used to be owned by the government’s National Development, went bankrupt and closed operations in 1999. It reopened in 2004 under after Global Infrastructure Holdings Limited of India’s Ispat Group won bidding for its tender offer of PHP 13.255 billion payable over an eight year period to various local banks led by the Philippine National Bank.

Before it closed in 1999, the NSC was paying almost PHP 1 billion in taxes every year to the national government and an additional P200 million in real estate taxes to Iligan City. With its reopening, it is expected to contribute around PHP 4 billion to the country’s gross domestic product.

NZ Steel is creating an animated 3D virtual model of its iron making plant at the Glenbrook steel mill using software supplied by Right Hemisphere, while it still has enough experienced steelworkers who can pass on their knowledge.

Mr Ian Renall iron making maintenance superintendent said that the 3D model has helped NZ Steel plan maintenance tasks, minimizing downtime and improving safety. He added that "Like a lot of businesses, we have a lot of knowledge in people's heads and with a typical ageing workforce, we have a lot of intellectual property sitting in people's heads which we need to get out so we can show, in a visual way, how work is actually done."

Mr Renall said that "You have got to take a lot of plant apart to get to the piece you have got to replace and then you have got to put it back together in extreme conditions. We animated the whole process so people know what they are doing and when, so it is a heck of a lot clearer for a lot more people. The vision here is to slowly draw all the plant up, based on an as needs basis."

Four person Auckland consultancy Revisia, which did the modeling work for NZ Steel, hopes to use the expertise it has gained to secure similar work with other manufacturers. Mr Mark Foster director of Revisia said that "We are not multimedia animators trying to step into heavy industry. Our background is mechanical engineering and manufacturing and we can walk the talk."

According to a survey by Japan Ferrous Raw Materials Association, Japan's steel industry set the blending ratio of ferrous scrap to pig iron at 14.8% for LD converter feed in May 2008, up from 12.4% YoY in the year before, when ferrous scrap consumption for LD converter feed totaled 1,280,000 tonnes up by 270,000 tonnes or 26.7% YoY.

The blending ratios of ferrous scrap to pig iron for LD converter feed averaged 14.1% in January to May 2008 period, up from 12.4% YoY in the same period of 2007. Ferrous scrap consumption for LD converter feed totaled 5,998,000 tonnes in January to May 2008 period, up by 1,020,000 tonnes or 20.5% YoY, amounting to an annualized 14,400,000 tonnes.

It is reported that Fijian competition regulator Commerce Commission has invited industry groups and members of the public to make submissions on new price proposals by Fletcher Pacific Steel Limited, which is the only supplier of reinforcement steel rods.

An order by the ministry of commerce in 2007 had declared price control on reinforcement steel rods in two grades namely 300 and 430 both plain and deformed. Since then, the commission had authorized price increases in steel rods as a result of big increases of prices worldwide.

The commission is currently considering Fletcher Pacific Steel’s price submission which is aimed for implementation from September 1st 2008. It has provided an information paper outlining Fletcher Pacific Steel’s proposal for interested industry groups and members of the public to help them in their submissions.

Meanwhile, the commission is conducting an inquiry into the telecommunications industry and is inviting submissions from industry stakeholders and members of the public on a number of issues. Amongst others in a list of issues the commission is seeking views on whether some telecommunications service license holders have substantial market powers.

The commission is also asking whether it should recommend regulations for licensees to offer a particular form of indirect access or access to their telecommunications facilities, and in what form. It has asked for interested members of the public or industry stakeholders to make their submissions before August 31st 2008.

It is reported that upstream steelmaker Perwaja Holdings has raised MYR 367 million from Malaysia’s largest initial public offering so far this year. However, two thirds of the shares were offered to existing shareholders of its controlling shareholder Kinsteel at a discounted price and 14.9% went to employees and retail investors, leaving only 17.4% for the private placement to institutional investors.

A source close to the company said that the somewhat unusual offering structure, especially with regard to the split price, was implemented as an incentive to Kinsteel’s shareholders as Perwaja contributes a significant portion of Kinsteel’s profit and the spin-off means losing part of that.

However, the backing by Kinsteel’s controlling shareholders would also have been helpful at a time when a difficult economic environment and rising inflation has led to all time low trading volumes on the Malaysian stock exchange.

Kinsteel shareholders were given rights to buy one Perwaja share for every four Kinsteel shares at a price of MYR 2.23 apiece, which marked a 23% discount versus the MYR 2.90 price that was offered to other investors. As the rights were tradable, some of the shares in the so called restricted offer may have ended up with institutional shareholders who do not own shares in Kinsteel.

According to one source, the overall offering was about 1.5 times subscribed when it closed after two weeks of book building, although RHB stopped accepting orders from institutional investors a couple of days earlier as the level of demand was already sufficient. It also encouraged investors to submit non inflated orders.

Perwaja is an integrated producer of primary steel products and according to RHB research the largest upstream steel miller in Malaysia. It makes direct reduced iron and semi finished long steel products, such a blooms, billets and beam blanks which it sells to steel companies further downstream for processing into various types of steel products, including light and heavy sections, beams, bars, rods and wire rods. About 65% of its sales go to Kinsteel.

It is reported that stakeholders in the Nigerian metal sector converged on the bustling city of Lagos for an unprecedented two day summit last week. The attendance was overwhelming, as participants came from all over the world to see, hear and make contributions on how to make optimal use of the rich metal resource of Nigeria.

Mr Alh Ahmed Mohammed Gusau minister of state for mines & steel development talked about government policy towards the sector Ajaokuta Steel Company Limited, Nigerian Iron Ore Company and on some key infrastructure for iron and steel development in Nigeria.

He also revealed for the first time, how his ministry is making efforts at inspecting and certifying all locally produced and imported iron rods into the country. He finally begged Nigerians to be patient with the pace of the present government saying that “We are not a go slow government.”

Reuters reported that Singapore's Pacific Shipping Trust is planning to raise up to USD 92.3 million via a rights issue to help fund the purchase of 4 vessels.

As per report Pacific Shipping plans to sell 252.8 million new units by issuing 3 new units for every 4 existing units. The new units are priced at USD 0.365 each, marginally below the last traded price of USD 0.375.

It said that the proceeds will be used to finance and refinance its acquisitions of 4 new vessels, working capital requirements and other corporate purposes.

Vietnam News cited distributors and traders, reported that declining prices for a variety of goods in Ho Chi Minh City suggest the central bank's anti inflationary policies are succeeding.

The report added that the prices of cement and steel in Ho Chi Minh City have fallen as local demand weakens. Steel prices have declined by 5% over the past two weeks, while cement prices are 1% lower than a week ago. Commodity prices are also slipping, with liquefied petroleum gas now cheaper because of declines in global markets. The local price of rice has also eased.

Meanwhile, HSBC Holdings Plc said that Vietnam's inflation rate, already at the highest level since at least 1992, will probably pass 30% this month due to an increase in retail gasoline prices.

It is reported that Polish steel marker Konsorcjum Stali has introduced steep price hikes for steel materials over the last 6 months, most notably in the case of construction steel.

In H1 2008, prices of steel produced by Konsorcjum surged on average by 51% YoY to stand at PLN 990 per tonne. Prices of reinforcement rods and wire rods have gone up the most, rising from between 65% and up to 80%.

According to the producer, the price increases are a direct consequence of rising costs of raw materials and electricity, and indirectly have been triggered by world oil and gas prices.

Keystone Consolidated Industries Inc has posted net profit of USD 21.9 million in April to June 2008 quarter up by 27.1% YoY as against USD 17.2 million in April to June 2007 quarter due in part to charging higher prices for its products. Its sales jumped by 45.1% YoY from USD 122.7 million in the second quarter of 2007 to USD 178 million.

Keystone said that a lower pension credit, a USD 5.4 gain on a legal settlement and higher costs associated with ferrous scrap and energy, also attributed to its profit gain.

New Straits Times reported that Malaysia will allow revisions in existing government contracts to accommodate rising costs of construction materials.

The move follows a decision to include price variations in state construction projects to accommodate higher building material costs after the government scrapped price controls on steel.

Fitch Ratings has affirmed Kincaid Generation LLC's USD 265 million senior secured bonds at 'BBB-' with stable outlook. The rating reflects Kincaid's credit quality on a stand alone basis, independent of the credit quality of its owner.

Fitch said “Considering its current operating risk profile, Kincaid's financial performance measurably exceeds that of most power projects in the rating category. However, once current contracts expire in 2013, Kincaid will be fully exposed to merchant prices.”

Accordingly, the rating reflects Kincaid's anticipated performance as a merchant plant during the last seven years of the debt. Kincaid consists of two nominal 554 MW coal fired generating units located in Kincaid.

Kincaid is a limited liability company that is owned and operated by subsidiaries of Dominion. Kincaid has entered into a long term power purchase agreement with the Exelon Corporation that expires in 2013.

Exelon also provides coal and emission allowances for both SO2 and NOx at no cost to Kincaid as part of a separate coal supply agreement. Together, the PPA and CSA effectively result in a tolling agreement in which Exelon has complete dispatch rights and Kincaid receives fixed and variable payments that are consistent with its cost structure.

Birmingham Business Journal reported that ThyssenKrupp has already awarded more than USD 300 million in contracts to Alabama based companies.

Mr Markus Boening CFO and head purchasing agent for steel division of ThyssenKrupp Steel and Stainless USA said that only 20% of the bidding process is complete. He added that "The state gave the company an incentive package worth USD 220 million for the USD 3.7 billion plant, which is expected to employ about 2,700 when complete."

Mr Boening said ThyssenKrupp has awarded between USD 300 million to USD 400 million in contracts to companies based in the state for work on the project, including several companies in Birmingham.

Birmingham's DeShazo Crane Co is the latest local contractor to receive such a nod from the steel maker. It recently was awarded a USD 29 million contract to custom engineer and manufacture 36 overhead bridge cranes to be used in the operations of the steel mill.

Mr Guy Mitchell president of Mitchell Industries Inc, holding company of DeShazo, said that winning the contract is a turning point for the company as it expands its operations and beefs up its employment to fill the order and maintain its current clients. He added that "It will take 20 to 25 weeks to make each crane, which will eventually be shipped to Mobile and installed by his DeShazo Service Co. It's a process that will run through the first few months of 2010."

DeShazo Crane is based in Alabaster, where it has a recently expanded 130,000 square foot manufacturing facility and plans to expand its 160 employees to 180.

While 36 cranes is a significant order for DeShazo and the crane manufacturing industry, it's only a portion of the total number of cranes the ThyssenKrupp plants will use.

Mr Boening said that as with many elements of the project, contracts are split to provide for the enormous plants. He added that "We have a general problem. Our project is so huge, we have to consider the comfort level contractors can handle. Do they have the resources? Do they have the personnel? Do they have the equipment and financial stability? It's not always easy to find the right sources."

Some local companies working on the plant include BE&K Inc, RaCon Inc, Morris Shea Bridge Co Inc, DeShazo Crane Co, Thompson Engineering from Mobile, Hargrove & Associates Inc, Macte