Vietnam’s largest steel company Vietnam Steel Corporation, Vietnam Cement Industries Corporation and TATA Steel have signed a 30:5:65 JV agreement for the proposed steel complex in Vietnam. Mr Dau Van Hung president of Vietnam Steel Corporation, Mr Nguyen Ngoc Anh of Vietnam Cement Industries Corporation and Mr B Muthuraman MD of TATA Steel signed the JV agreement at a ceremony held in the Head Office of Vietnam Steel Corporation in Hanoi.

The MOU for this steel project was signed on 29th May 2007. Subsequently Definitive Agreements were signed today after completion of detailed feasibility studies.

4.5 million tonne per year steel complex will be set up in the Vung Ang Economic Zone in Ha Tinh Province of Vietnam. The Integrated Steel Plant will be built in three phases at a total estimated cost of USD 5 billion. While the ultimate capacity of the steel complex will be 4.5 million tonnes per year, the first phase of the complex will be a Cold Rolling Mill to be commissioned by end 2010.

Mr Muthuraman said “We are delighted to enter into the joint venture with VNSteel and Vicem and believe that this partnership is well placed to make the most of the tremendous growth potential Vietnam possesses. Together, we look forward to seeing this country grow and prosper. We are excited to be a part of this landmark project that is slated to bring sustainable and long-term value to our companies and customers, and accelerate the development of Vietnam. On our part, we remain committed to bring high standards of corporate governance, environment protection, and a strong culture of striving for excellence. We also highly appreciate the support we have got from the Government of Vietnam & the leaders of Ha Tinh Province proving once again that Vietnam is a cherished destination for serious foreign investors.”

Mr Dau Van Hung said, “The JV will enable VnSteel to expand and create a substantial knowledge and technical base, while building a long term relationship with Tata Steel. In Tata Steel, we have a strong partner to help us exploit the opportunities within our country, and make the most of our market potential. Setting up of an integrated steel plant will enhance Vietnam’s status in the steel industry, and maximize the value of Vietnam’s natural resources while strengthening our national economy and increasing job opportunities. We look forward to an enduring partnership with our JV partners to meet the challenges of the future.”

Vietnam Steel Corporation: was established in 1995 by a merger of Vietnam Metal Corporation and Steel Corporation. Vnsteel is Vietnam’s largest company having various manufacturing plants and a distribution system across the country. Vnsteel is a pioneer in partnering with foreign companies in steel manufacturing. Vnsteel has foreign joint ventures and joint stock companies in which Vnsteel holds large stakes. Total capacity of Vnsteel, including that of its joint ventures, is around 5 million tonnes with wide range of product mix from crude steel, high quality construction steel to sheet and plate products serving other economic sectors. In addition, Vnsteel also has businesses in other areas such as mining, real state, sea ports etc.

Indian domestic steel prices, which have continued their down slide since August 6th 2008 everyday, have reached some stability on August 12th 2008.

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

To know more about these indices please visit http://steelprices-india.com/spi_services/spi.html


To know actual prevailing price levels, please log on to www.steelprices-india.com

The financial express reported that Steel Authority of India Limited’s Bhilai Steel Plant is eagerly waiting for decision of the court in the matter of its application for iron ore mining at Rowghat, which is essential for its plans to expand steelmaking capacity to 7.5 million tonne a year from 4.2 million tonne at present. The case is expected to be heard on August 22nd.

The report cited Mr R Ramaraju MD of BSP as saying that he is hopeful about Rowghat. He said that “We expect that with POSCO & Sterlite’s case having been cleared by the Supreme Court. Ours will be coming up next and get the clearance.”

Mr Ramaraju said that “Dalli Rajhara is depleting fast and we are trying to stretch it to the maximum, but it would not last us more than another 4 and a half years maximum. We can not afford to buy from anywhere else and at the same time there is no source which can give me the ore.”

BSP’s current mines at Dalli Rajhara will be exhausted in 4 years to 5 years. Rowghat, which is 180 kilometer from Bhilai, has around 500 million tonne iron ore which will last the plant 35 years to 40 years at its expanded capacity.

Bloomberg reported that TATA Steel Ltd denied it plans to sell assets of its Corus Plc unit that suffer from low profitability, saying a news report this week misunderstood comments in the company's annual report.

Mr Bob Jones a Corus spokesman based in London said that “It was wrong to interpret these remarks as being Corus specific. Like any large industrial group it is part of our regular portfolio management to maintain the efficiency and profitability of all production units.''

Press Trust of India reported August 11th 2008 that TATA Steel plans to sell and reorganize Corus assets as it seeks to increase returns on invested capital to 30% up from 19% in the next five years. The agency cited comments by TATA Steel Group Director Mr Jean Sebastien Jacques in the company's annual report.

In its annual report, released this week Corus said it will pursue the optimization of its European assets, dispose and restructure assets that are of low profitability and pursue differentiation of products and services.'

PTI reported that Jindal Steel and Power Limited is optimistic about commissioning the first phase of the proposed 6 million tonnes per annum steel plant in Orissa's Angul district by October 2010.

JSPL Executive Vice-Chairman and Managing Director

Mr Naveen Jindal vice CMD of JSPL, who met Mr Naveen Patnaik CM of Orissa, told reporters that the work for the first phase of the project was progressing well. He said “Our Angul project is progressing very well and the first phase is likely to be commissioned by October 2010.”

He said that “JSPL has already spent INR 4,000 crore so far for it and has placed an order for equipment for the purpose. Of its total project cost of INR 13,135 crore, JSPL had also spent a lot on land, construction, equipment and other activities.”

Mr Jindal said JSPL has a small iron ore mine at Tensa in Keonjhar district and is hopeful of getting raw material linkage to its Angul project. He said "We have been allotted coal block for the requirement of our captive power plant and the steel plant.”

He said JSPL has apprised the chief minister about the progress and made a presentation before him, while seeking the state government's help in availing new raw material linkage early.

JSPL has initiated series of measures for peripheral development. Apart from the electrification of 18 peripheral villages, the company has introduced mobile hospital, drinking water and rural roads. JSPL spent INR 2 crore during last fiscal and targets to spent INR 5 crore on various Corporate Social Responsibility initiatives. It is setting up a vocational training centre to increase the livelihood opportunities for the local people, besides an ITI is being opened near the project site.

The JSPL which signed a MoU with the state government for setting up a beneficiation plant at Deojhar in Keonjhar district and the Angul steel plant on November 11, 2005, had progressed well besides tackling local problems.

Mr Ram Vilas Paswan Indian minister for steel, chemicals and fertilizers gave a warm send off to three Indian wrestlers Mr Sushil Kumar, Mr Yogeshwar Dutt and Mr Rajiv Tomar to participate in the Beijing Olympics.

Mr Sushil Kumar will participate in freestyle lightweight 60 kilogram category, Mr Yogeshwar Dutt in 66 kilogram and Mr Rajiv Kumar in 120 kilogram category.

The three wrestlers are supported by the Steel Authority of India Limited in their expenses for preparation for 2010 Commonwealth Games.

Mr Paswan wishing them successes at the Olympics said that the whole country was proud of the success of its athletes and reminded the wrestlers of the euphoria after the gold medal winning effort of Mr Abhinav Bindra at the Beijing Olympics. He hoped the three wrestlers will also make the country proud in a similar way.

Mr Paswan urged SAIL to support more and more sportspersons. He said if they win medals at international competition it will bring glory to the company also.

Earlier in the day Mr SK Roongta chairman of SAIL also wished them best of luck at the Olympics.

TATA Steel Cote d’Ivoire SA has taken a step forward with its plans for development of Iron ore projects in Cote d’Ivoire with its new Head office being inaugurated by the Mr Monnet Leon Emmanuel honorable minister of Mines & Energy Republic of Cote d’Ivoire represented by Madam Francoise Kadio MOROKRO director of Cabinet and Dy Minister of Mines & Energy.

TATA Steel Cote d’Ivoire SA was formed in May 2008 after the JV agreement signed between TATA Steel Limited and SODEMI in December 7th. The program was attended by key officials from Ministry of Mines, Environment and CEO of SODEMI and many other companies.

Mr Monnet Leon Emmanuel honorable minister of Mines & Energy expressed happiness said that “The government of Cote d’Ivoire is very happy that a Company like TATA Steel which has the technical and financial capability along with the experience to undertake large Mining projects will be working with us.” He also appreciated the progress made by TSCI in setting up a good office in Abidjan and put in place a technical team to start work. He assured that necessary permits for start of work will be issued to the company shortly.

TATA Steel Cote d’Ivoire SA spokesperson commented that the company is fully geared for exploration and feasibility study as soon as the permits are granted and expressed confidence that the work will start quickly. He added that “It is TATA’s philosophy to participate in the country’s development process and TATA Steel, through its well known social initiatives will make a very positive impact on improving the quality of life of the people of Ivory Coast. We value our partnership with SODEMI and the Government of Ivory Coast.”

The TATA Steel, SODEMI JV is now awaiting for the government of Ivory Coast to award the exploration license with the permission to start work. The initial phase will involve exploration and detailed feasibility assessments followed by construction of the mine and beneficiation facilities. The iron ore from this project will be supplied to TATA Steel Group facilities in Europe. TATA Steel had indicated its plans for investing over a billion USD if the project is found feasible.

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.

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It is reported that Mr L Pugazhenthy executive director of India Lead Zinc Development Association New Delhi has taken over as president of the Indian Institute of Metals (2008-2009).

Indian Institute of Metals is the single largest body of professional metallurgists employed in industry, R & D as well as teaching, promotes the interests of the metals industry.

India's production at six key industries, which account for a quarter of the nation's industrial production, rose by 3.4% in June 2008.

The Ministry of Commerce and Industry said in a release said that the index for the six key industries rose to 232.5 in June from 224.8 a year earlier. Production in the three months ended June 30 rose by 3.5% as compared with a 6.4% a year earlier.

The following is the percentage change in production

BL reported that TATA Refractories is setting up a plant in Orissa at a cost of INR 80 crore to manufacture high alumina refractories. The decision was taken at the board meeting held at Belpahar in Orissa recently.

According to a press release, the company has chosen Visakhapatnam for its logistical advantages. The release said that the company has a 5 year plan called Mission 2000 to achieve turnover of INR 2,000 crore by 2012-2013.

The turnover of TATA Refractories at present is INR 623 crore. Its main plant is situated at Belpahar, Orissa and it has got operations in Jamshedpur, Salem, Gujarat and also in China.

India Steel Works Limited has informed BSE that due to continuous rains in Lonavala, Khandala and Khopoli areas it's unit at Khopoli was flooded on August 10th 2008.

The release said that “The low lying areas and underground equipment were submerged. But towards the end of the day after continuous pumping, the factory shed fell off, heavily damaging equipments but there was no loss of life.”

The release added that “Production will suffer, the rolling mills could be set right quickly but it could take around 2 months to 3 months for the steel making facilities to be fully set right.”

'Directory of Refractory Makers in India' in India is one of the top sources of information available on a 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.

Equity Bulls reported that Essar Shipping Ports & Logistics Ltd has added two modern Supramax Dry Bulk Carriers to its fleet. The two ships named MV Malathi and MV Malavika are dedicated to perform a Contract of Affreightment of 3 million tonnes of coal over a period of five years. The additions of these two ships will lift the company's EBITDA by USD 100 million over a period of five years.

MV Malathi ship was built in 2005 at Oshima Shipbuilding Co in Japan this 190 meter tong and 32.26 meter wide ship can toad up to 55,000 tonne cargo when fully Loaded to a draft of 12.5 meter. This ship is well equipped with four cargo cranes and fitted with all modern equipment suitable for unrestricted navigation. She is capable of carrying a wide range of bulk cargoes including steel coils, coat, etc. Fitted with a modern 8208 KW main engine, she can make a good 14.5 knots in fully loaded condition with good fuel economy.

MV Malavika was built in 2004 at Iwagi Zosen Coin Japan this 190 meter long and 32.26 meter wide ship can load up to 53,000 tonnes cargo when fully loaded to a draft of 12.3 meter. This ship is also well equipped with four cargo cranes and fitted with all modern equipment suitable for unrestricted navigation. She is capable of carrying a wide range of bulk cargoes including steel coils, coat, etc. Fitted with a modern 9480 KW main engine, she can make a good 15 knots in fully loaded condition with good fuel economy.

Essar Shipping said that both these strips also come fitted with modern gadgets for emission control, waste water management which enables them to be traded all around the world including areas with stringent operating controls including Australia.

BL reported that the intervention of the state labor minister has averted yet another strike at Kochi Port by container trailer workers following a conciliatory meeting held with Trade Union Co ordination Committee.

As per report the Committee had decided to go in for an indefinite strike from Wednesday demanding revision in pay and service conditions. The Minister assured the trade union leaders that fair wages for workers would be implemented shortly. A committee has also been constituted to study and submit a report on this in three months.

A committee has been constituted comprising port officials, DP World officials, trailer owners and trade unions to suggest ways for the smooth movement of trailers.

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.

Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media's most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

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

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

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

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

It is reported that Reliance Industries is in talks with Hindustan Petroleum Corporation, Chennai Petroleum Corporation and Kochi Refineries for sale of 34,000 barrel per day of oil as it plans to start pumping from its eastern offshore KG-D6 block from September 2008.

The company is investing USD 2.234 billion in developing the MA-1 and MA-2 oil fields. Oil reserves in the block are estimated at 53.5 million barrel per day and production will last 11 years, beginning with 20,000 barrel per day in first year and increasing to 30,000 barrel per day in second year before beginning to decline.

It is learnt that the Aker Smart-1 floating production storage and offloading system is soon expected on the field. The FPSO, contracted for USD 733 million will help eliminate the need for piping the oil to the shore for onward transportation to refineries.

Reacting on snail pace of growth of industrial production in the month of June, the Associated Chambers of Commerce & Industry of India has predicted that its reflection cannot be avoided now on the GDP growth of 2008-2009.

Mr Sajjan Jindal president of ASSOCHAM said that the manufacturing sector has been witnessing consistent fall which for the month of June 2008 has slipped to 5.4% from 8.9% a year ago is now a matter of serious concern.

The ASSOCHAM Chief said that even if industry is accorded the best possible packages in terms of incentives and concessions, the GDP growth is unlikely to be close to 9%. Mr Jindal said that “We would be lucky if India achieves a GDP growth of 8% as in Q1 of current fiscal, industrial production has suffered heavily.”

According to Mr Jindal, the only satisfaction one can draw is that consumer durable growth has gathered a momentum but the ASSOCHAM suspects if it would be sustained. With good monsoon, however, there is a hope that the agriculture production will increase and to some extent, compensate for the industrial losses, feels the ASSOCHAM.

BS reported that Gujarat Mineral Development Corporation’s 1,000 MW pit head power project in Chattisgarh is hanging fire almost a year after Torrent Power emerged as the lowest bidder. GMDC has now referred the project to the CM office to take a final call.

GMDC which was allotted Morgha coal block by the Centre had invited bids for the pit head power project last year where Torrent Power had emerged as the lowest bidder. A year later, no company has been formally awarded the project. GMDC officials say the ball is in the state government's court and they have now got to take a call.

Sources said for Morgha block, GMDC has already entered into an agreement with KSK Energy for setting up 1800 MW power project. It said that "Morgha block has huge reserves of coal so GMDC decided to rope in more than one developer and decided to set up two separate power projects."

KSK Energy Ventures has also entered into an agreement with GMDC for the Morgha block wherein the company will supply power at INR 1.92 per unit. GMDC will buy power as per the agreed price and further sell it to Gujarat Urja Vikas Nigam Limited with a margin of 10 paise per unit.

Taking price quoted by KSK as a benchmark, Torrent agreed to sign an agreement with GMDC for INR 2 per unit for the 1,000 MW power project. GMDC will supply 4 million tonne of coal per annum from the Morgha block to the developer and about 120 million tonnes for 30 years.

GMDC also has the option of holding 26% equity in the 2 power projects.

BL reported that ONGC Tripura Power Company Private Limited has signed a contract with Bharat Heavy Electricals Limited for setting up 726.6 MW capacity combined cycle gas turbine based power project at Palatana in Tripura. The contract is valued at around INR 2,200 crore.

As per report, the 363.3x 2 MW plant is being developed by OTPC. ONGC has 50% equity stake in OTPC, 26% is held by Infrastructure Leasing & Financial Services Limited and 0.5% by the government of Tripura. The remaining equity of 23.5% will be tied up through the most optimal modes including IPO.

According to the statement, the generation project combined with linked transmission project and upstream gas supply project is slated to bring in investments of around INR 9,000 crore in the region.

For evacuating power from generators, a trunk transmission line is being developed by another special purpose vehicle jointly promoted by the Power Grid Corporation Limited, OTPC and the north eastern region States. Inter State and intrastate sub transmission system and the distribution system within NER States shall be developed by the Power Grid Corporation as the Central Transmission Utility.

It is envisaged that the generation plant and the transmission or distribution system in the NER shall be developed synchronizing with the time lines.

BL reported that Hyundai Construction Equipment India, a wholly owned subsidiary of Hyundai Heavy Industries of Korea, is planning to expand its INR 300 crore construction equipment plant in Pune at a cost of an additional INR 700 crore.

The expansion project has been envisaged for diversifying into manufacture of power equipment like generators, windmills, switchgears and transformers. The existing unit has a capacity to scale up production up to 10,000 excavators per annum.

The company was currently conducting a feasibility study of entering the Indian power equipment market, which was expected to be completed by end 2008. Meanwhile, it has sought an additional 125 acres of land from the Maharashtra government near its existing 50 acres of land manufacturing plant for this purpose.

BL reported that Andhra Pradesh Government has decided to increase the tariff for wind power projects to INR 3.50 per kWh to help and encourage the wind farm developers.

The report quoted Dr YS Rajasekhara Reddy CM of AP as saying that the hike was considered because of the steep hike in prices of steel and other costs. The current tariff fixed in 2004 is INR 3.37 per kWh.

According to an official release, there is a gross wind power potential of 8,275 MW in the state but the wind power installed capacity now is only 107.37 MW. The release further said that CM decided to further hike the tariff than the recommendations of the committee to attract more investments in the wind power sector.

The release added that based on the representation of the wind farm developers, a committee had been constituted by the AP Transco to study the tariff and non-tariff issues concerning wind power projects. The committee consisted of members from AP Transco, DISCOMS, wind turbine manufacturers and NEDCAP.

The tariff recommended by the committee was INR 3.37 per kWh for 10 years from the COD and allowing 5% escalation from the 11th to 15th year. The tariff from the 16th year will be as per directions of the APERC. It also said that control period for the policy is recommended as 5 years instead of 10 years and the energy generated, if not consumed during the billing month, it would be treated to have been sold to DISCOM which in turn will pay for such unutilized energy.

It is reported that Jamshedpur Utilities & Services Company, a TATA Steel subsidiary, bagged a contract worth INR 66.45 crore from Uranium Corporation of India for a water treatment and supply project at Tummalapalle in Andhra Pradesh.

As per report the project envisages design, construction and commissioning on engineering, procurement & construction basis of an intake well & pump house, laying of cross country pipeline from the Chitravoti river to the uranium ore processing plant, the water treatment plant, the effluent treatment plant, the condensate recovery unit and a water supply network inside the plant and colony.

On August 10th 2008, the foundation stone was laid for the project.

It is reported that Indian Wind Turbine Manufacturers' Association is requesting the Central Government to bring in a generation based incentive policy to attract FDI as well as IPPs into the emerging wind energy sector.

The association is of the view that any generation based incentive should have no ceiling on capacity as any cap on capacity obstructs FDI. The issues like tariff, renewable purchase specification etc are fuelling the need for a long term national policy for wind energy.

Project monitor reported that Hansen Drives Limited, a subsidiary of Belgium based Hansen Transmissions International NV, has started work on its wind turbine gearbox facility in Tamil Nadu.

The manufacturing facility which will make gearboxes for wind turbines in the 1.5 MW to 3.0 MW range is coming up within Suzlon promoted Hi tech Engineering Special Economic Zone near Coimbatore. Coimbatore plant will use the same technology that is used in Hansen's Belgian plants at Lommel and Edegem. The Indian plant will make around 2,500 gearboxes per year at full capacity.

Mr Mohan NS MD of Hansen Drives Limited said that Coimbatore was chosen as the location mainly due to the technical talent available and the support for the renewable energy industry in Tamil Nadu. The first manufacturing facility of Hansen in India, the Coimbatore unit will see an investment of INR 1,500 crore over the next 5 years.

Elaborating on the project, Mr Mohan said that the capacity would be gradually built up to reach 5,000 MW per year. Full production capacity will be attained in financial year 2012. He added that "The first targeted market is India." Maintaining that India has a huge potential for wind energy equipment, he asserted that requirement in India for wind power is fast outpacing supply positions.

Mr Mohan said that "India has a unique position of having a large coast line and hence has many sites suitable for harnessing wind energy. With the advancement in technology for wind energy equipment, it has started making economic sense to tap this renewable source of energy."

Hansen Transmission features amongst the largest manufacturers of wind turbine gearboxes in the world. An estimated 15,000 of its gearboxes are in use worldwide. Hansen was acquired in March 2006 by Suzlon Energy Limited in a EUR 465 million deal.

India's wind power capacity stood at around 8 GW as of 2007 end. In the ongoing 11th plan period, 10,500 MW is targeted to come on stream, resulting in a total of 18 GW by March 2012. Tamil Nadu is India's leading states in terms of wind power potential and hence installed capacity. The southern state had 3,712 MW of wind power capacity accounting for an overwhelming 47% of India's total.

The financial express reported that a drop in global crude prices does not offer the government any immediate scope for reduction in domestic fuel prices although India's crude basket price has fallen over 8% in 2 months.

Mr Murli Deora Petroleum Minister said that "It is a happy sign. It is a welcome development. But there is no scope for reduction in domestic retail prices."

Mr Deora said that however, retailers Indian Oil, Bharat Petroleum & Hindustan Petroleum continue to lose money on fuel sales. He added that "There still are huge under recoveries. I don't see how we can reduce retail prices when our companies continue to lose money. Our retail prices are pegged much lower. There is no scope for reduction in petrol and diesel prices as of now."

As per the report, crude oil prices have fallen to below USD 113 a barrel this week from all time high of USD 147 per barrel witnessed last month. The Government had in June increased petrol price by INR 5 per liter, diesel by INR 3 a liter and domestic LPG by INR 50 per cylinder.

The basket of crude oil India buys averaged USD 109.88 per barrel, down from USD 119 a barrel price on June 4 when petrol, diesel and domestic cooking gas prices were raised. The fall in international prices would help cut down on the projected revenue loss. At the time of June 5 increase in fuel prices, the revenue loss on sale of petrol, diesel, LPG and kerosene was put at INR 246,600 crore for the full year.

It is reported that Hyderabad based Greenko Group Plc is planning to operate and develop a 1,000 MW of clean energy and 100 million certified emission reduction generations by 2012.

The company secured total production capacity of 137.5 MW including 90.5 MW of assets operational and due to be commissioned and 47 MW under development from April 2007 to March 2008. By 2010, the company plans to have 400 MW in operations & development and the power will be generated by a combination of small hydro, wind, solar and bio mass.

As per the report, Greenko currently has 8 clean energy projects operational in various parts of the country and is now looking at alternative sources apart from biomass and hydro. The company is in talks with a German technology firm for the coal gasification project and has applied for a couple of blocks in Orissa.

The reported added that the company is also planning to own and operate projects that will have an annual generation capacity of 2.5 billion KWH by 2010, thereby reducing upwards of 2 million tonne per annum of carbon dioxide emissions.

BL reported that the Centre has given its nod to Oil & Natural Gas Corporation to include Petrobras of Brazil and Statoil Hydro of Norway as strategic partners in the gas rich KG-DWN-98/2 block.

According to the proposal, Petrobras & Statoil will pick up by 15% and 10% participatory interests respectively in the exploratory asset.

As per the report, ONGC currently holds 90% operating stake in the deepwater block. The company has established presence of approximately 2 trillion cubic feet of gas in an ultra deepwater discovery.

It is reported that Japan's second biggest steelmaker JFE Holdings Inc and IHI Corp are in talks to create Japan's biggest shipbuilding company to compete against South Korean and Chinese yards.

As per report, Tokyo based companies could merge their shipbuilding units before the end of this year. The new company would have sales of JPY 345 billion (USD 3.1 billion), becoming the world's sixth biggest shipyard behind South Korean and Chinese rivals.
Unofficial reports said that IHI's shipbuilding unit IHI Marine United Inc. will be merged into JFE's Universal Shipbuilding Corp. venture with Hitachi Zosen Corp., Japan's second largest maker of diesel vessel engines. JFE will initially raise its stake in Universal to 80% from 50%, leaving Hitachi Zosen with the remainder.

Mr Keiichi Sakamoto spokesman of IHI said "We are in discussions with JFE about shipbuilding operations. Details have yet to be decided.”

Japan lost the title of the world's biggest shipbuilding nation to South Korea in 2003, while China overtook Japan two years ago. Consolidation in Japan’s shipbuilding industry is necessary to fend off competition from China and South Korea and IHI maintains that it needs 2 to 2.5 times the size of its current shipbuilding business to compete successfully in the international Market.

Hyundai Steel Company has posted net profit of KRW 326 billion in April to June 2008 quarter up by 70.2% YoY as against KRW 191 billion in April to June 2007 quarter, boosted by an increase in steel prices and brisk overseas sales. Sales increased by 48% YoY to KRW 2.95 trillion and operating income nearly doubled to KRW 447 billion.

Hyundai Steel said that increased steel prices and overseas sales helped it offset rising material costs. Steel scrap, used to make steel, also soared this year as well. Hyundai Steel raised prices of key products by 76% this year, reflecting increased costs of raw materials.

BNamericas quoted Mr Flavio Azevedo president of Brazilian Steel Institute as saying that Brazil could produce 80.6 million tonnes of steel by 2015.

Mr Azevedo said that "Our steel production is very well on pace and we won't see an absence of steel on the Brazilian market. Investments in the 2008 to 2015 period could reach USD 45.7 billion."

According to IBS forecasts, 22 million tonnes per year is already in the pipeline and an additional 17.5 million tonnes could also be underway to fulfill an internal consumption potential of 42 million tonnes per year in 2015. Brazilian steel production in 2008 is estimated at 36.2 million tonnes.

It is reported that US scrap market appears soft due to the summer vacation and market activity is very quiet.

In the US, the average scrap price dropped by USD 25 per ton, a wide margin since August 4th 2008. Meanwhile, HMS and shredded scrap prices have been reduced by USD 50 to USD 70 per ton.

Only a few buyers in Turkey and Asian countries are continuing some small quantity purchasing. Distributors are expecting further decreases in prices.

(Sourced from yieh.corp)

It is reported that nineteen steelm