Indian domestic steel prices, which have continued their down slide since August 6th 2008 everyday and reached some stability on August 13th continued to show stable trends, except minor slide in long products, driven by dip in input materials at few locations.

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

Long products

The dip in prices of long products was predominant at Kolkata and Raipur. The main reason for decrease in price was the decrease in input material prices

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

Flat products

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

IANS cited an industry official as saying that shortage of iron ore has forced 25 sponge iron units in Chhattisgarh to stop production and more of them could follow suit. The closed 25 units together produce about 1.5 million tonne of sponge iron a year. In September 2006, the state's sponge iron units faced a similar shortage, and 30 units had to stop operations.

Mr Anil Nachrani president of the Chhattisgarh Sponge Iron Manufacturing Association told IANS that "The sponge iron industry is facing the worst raw material crisis as the National Mineral Development Corp is refusing to increase our quota. They got only 3 million tonnes from NMDC.”

Mr Nachrani said that "The iron ore crisis problem is very serious. If something is not done urgently to increase the NMDC quota for Chhattisgarh, all the sponge iron units will have to be closed down. "Sponge iron manufacturers in Chhattisgarh have for long been demanding that the quota for the local units be increased, but NMDC has ignored our demand.”

However, Mr Kumar Raghvan spokesman of NMDC said the NMDC supplies to sponge iron units in Chhattisgarh had gone up five times, from 0.5 million tonne a year to 2.5 million tonnes now. He said that "We provide raw material to them through the State Investment Promotion Board. In fact the units failed to make use of supply we provide.’

State owned NMDC, with three mines in Chhattisgarh, is the traditional supplier of iron ore to these units. Chattisgarh has 125 sponge iron units, which require 12 million tonnes of iron ore a year.

Price reduction in input materials at several locations was reported on August 14th 2008.

The dip in prices of input materials at some of the locations on August 14th 2008 was as under

In INR per tonne

Although some immediate downward correction was reflected in long product prices in Kolkata and Raipur, further dip in long product prices is expected in coming days.

To know actual prevailing price levels, please register at www.steelprices-india.com

Project monitor reported that Shyam Steel Group under the name of Ranchi Castings Private Limited has proposed to set up a 1.1 million tonne per annum integrated steel plant at Dhanbad in Jharkhand with a total investment of INR 2,000 crore.

Mr Sunil Kumar Bhargava president said that land acquisition is in advanced stage. Requests for qualification quotations received from equipment suppliers and consultants are under evaluation. He said that "We will soon sign a MoU with Jharkhand government. We have applied for coal and iron ore mines in the state. Water linkage of 8.75 million gallons per day has been sanctioned. Talks for power allotment are in advanced stage."

He said that the plant is scheduled to commission in about 3 and half years from zero date. The zero date is assumed as the completion date for the land acquisition formalities and taking over the site, getting consent for establishment of the plant from the state pollution control board, finalizing the schemes for supply of power and water to the plant, financial closure and finalizing the order for major equipment.

Mr Bhargava said that "Meanwhile, we have planned to set up an integrated steel plant with a capacity of 1.1 million tonne per annum and a captive power plant of 150 MW at Purulia with an estimated cost of INR 6,000 crore. We will also soon announce another proposal for setting up a 1,000 MW coal based power plant at Dhanbad for which details are being worked out."

According to outgoing chief of Prime Minister Manmohan Singh's Economic Advisory Council Mr C Rangarajan, India's headline inflation rate, which is hovering at a 13 year high, could rise further

Mr Rangarajan, who is also a former RBI Governor, said that "For some more time inflation can increase. It could touch 13% but by December it will start declining and is likely to moderate to 8% to 9% by March 2009."

He said that approving the Reserve Bank of India's tight monetary policy to contain inflation, which has touched the 13 year high mark of 12%. He added that "It could be brought down to 8% to 9% by March 2009 through coordinated policy action."

As regards RBI monetary policy, Mr Rangarajans said that "The tight monetary stance needs to be maintained till the pace of inflation comes down."

Mr Rangarajan said that justifying the 7.7% economic growth projection for 2008 or 2009. He further added that "There is a slowdown in agriculture, industry and services and the global environment is not very conducive to growth. This will affect Indian economy as well."

The agriculture production is likely to grow at a lower pace of 2% in the current year as against the 4.5% in last fiscal, he added that industrial output is expected to decelerate to 7.5% from 8.5% and services to 9.6% against 10.8% in 2007 or 2008.

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

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SNS reported that Uttam Galva Steel Limited’s 6th public hearing was conducted at Naigaon amidst heavy police deployment. Additional collector Mr Bijaya Kumar Bilung and land acquisition officer Mr Mahan Das were present at the hearing.

As per report, 40% of those who attended the public hearing, gave their opinion against the UGSL’s proposed plant while the rest voted for the plant with some provisions. They had some demands that the plant should provide good compensation packages and see the overall development of the area.

UGSL plans to set up an integrated steel plant with a capacity of 3 million tonnes per annum in Keonjhar with an investment of over INR 8000 crore. The integrated steel plant will come up in an area of 2146.16 acres situated in 11 villages namely Parjanpur, Patung, Satikudar, Naigaon, Nuadihi, Deuladiha, Kalanda, Jagannathapur panchayat, Murusuan, Saraskela of Palaspanga gram panchayat and Bistapal in Nuagaon panchayat.

The site is a mix of government land and private land 1966.89 acres are private land and 179.27 acres are government land. While public hearing at 6 villages namely Parjanpur, Patung, Bistapal, Deuladiha, Satikudar and the recent one Naigaon have already been conducted, public hearings for land acquisition are to be held at Jagannathapur, Kalanda, Nuadihi, Murusuan and Saraskela.

BL reported that Indian Railways carried 270.69 million tonne of freight traffic during April to July period this fiscal up by 9.42% YoY against the 247.39 million tonne carried in the same period last fiscal.

The loadings volume growth rate is however lower than the corresponding growth rate of 24.68% registered in earnings from freight. This difference in growth rates to some extent is on account of various rounds of upward revision of rail freight charges during the last one year. The total goods earnings were at INR 18,187.71 crore.

According to the report, during July 2008 the revenue earning freight traffic carried by Indian Railways was 67.69 million tonne. There is an increase of 5.81 million tonne over the actual freight traffic of 61.88 million tonne carried by the Railways during the same period last year an increase of 9.39%.

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.

Amtek Auto Limited has announced that the Company and FormTech Industries LLC based at Royal Oak in Michigan signed a JV agreement on August 13th 2008 to set up a state of the art manufacturing facility for manufacturing Hatehur Hot Forgings for automotive applications in India and Europe. Amtek and FormTech will take 51 & 49% stake respectively.

'Directory of Autoparts Makers in India' is one of the top sources of information available on auto part makers in India. It is one of the most comprehensive and accurate directory of auto part makers in India.

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• Fax number -418 entries
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Report Summary:
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It is reported that government of India has granted full exemption from Central Excise Duty to goods procured for setting up Ultra Mega Power Projects based on super critical coal thermal technology, from which power procurement has been tied up on the basis of tariff based competitive bidding.

As per report the exemption is applicable to goods procured for projects which are set up under Government of India initiative and have an installed capacity of 3960 MW or above. Certain conditions have been prescribed for availing the benefit of the exemption which comes into effect from August 14th 2008.

It is reported that Jai Prakash Associates signed 4 MoUs with Madhya Pradesh government to invest INR 13,000 crore for setting up 2 cement manufacturing units an aluminum production factory and a power plant for generating power.

JP Associates said that the cement units will be established in Satna & Amarpatan with an investment of INR 2,000 crore each for producing 5 million tonne per annum cement.

JP Associates will invest INR 3,500 crore for producing 200,000 tonne per annum alumina, 100,000 tonne per annum aluminum and a captive thermal power plant of 200 MW to 250 MW capacity in Rewa district.

The report further added that it will invest INR 550 crore for setting up power generating units of 500 MW capacity at Bina town in the state. The power generation from these units will commence from 2011-2012.

It is reported that Indian Oil Corporation is likely to finalize the funding options including loan and equity component for the proposed INR 30,000 crore Paradip refinery and secure final board approval for the project in September 2008.

As per report IOC has appointed SBI Caps for tying up finances for the proposed refinery. The company has identified the technologies to be used in the refinery and floated tenders for appointing the project management contractor based on initial board approval.

It is reported that Nandi Infrastructure Corridor Enterprises a new company promoted by Bharat Forge or Kalyani Group plans to begin the much delayed work on its Bangalore to Mysore Infrastructure Corridor on November 1st 2008.

The implementing agency is now looking at awarding the 10 kilometer work per contractor. The government had decided to release land for the project in 3 phases of 7,000 acres of land each. The construction of satellite towns along the expressway will begin in the second phase of the project. All the land losers will be given the price fixed by the government.

So far, the promoters have completed 39.5 kilometer of the total length of 41 kilometer of peripheral road 7.1 kilometer of the 9.1 kilometer of link road and only 4.5 kilometer of the expressway to Mysore.

AMP Capital Finance Mauritius Limited part of Australia based AMP Group will invest INR 200 crore equity in Gayatri Infra Ventures Limited promoted by Gayatri Projects Limited.

As per report AMP will release INR 100 crore as the first tranche to get 29% equity in GIVL. The remaining INR 100 crore in the deal would be invested based on requirement in future. Gayatri Infra will focus on BOT projects and 5 such projects valued at INR 2,000 crore, have already been transferred to the new company.

The Ranchi Express reported that Jharkhand state unit of the Jharkhand State Electric Supply Workers Union has decided to join the one day nationwide strike on August 20 in protest against the proposed nuclear deal and the Electricity Act 2003. The decision was take at a meeting at the Patratu Thermal Power Station union office.

The meeting was presided over by Mr Baikunth Nandan Singh union's general secretary. Alleged that the Jharkhand State Electricity Board authorities were responsible for the poor revenue collection, the press release issued by the union said that unbundling and privatization of the state electricity board was no solution to the problems.

BS reported that senior officials of the West Bengal and Jharkhand governments held a meeting on July 29th at Jamshedpur over the early construction Chandil and Icha dams of Subarnarekha Multipurpose Project and for settlement of the pending issue of cost sharing of the project among Jharkhand, Orissa and West Bengal.

West Bengal was represented by its water resources secretary Mr ML Meena while Jharkhand was led by Mr AK Rastogi special secretary water resources department.

Subarnarekha Multipurpose Project, when completed, would provide water for irrigation to the states of Orissa, Jharkhand and West Bengal.

Both the states stressed the need of early completion of the Icha dam as it could enable regulating water flow from Orissa and thus lessen the impact of flash floods.

West Bengal water resources secretary assured his Jharkhand counterpart that the payment of old dues to the extent of INR 24 crore which West Bengal owed to SMP under the cost sharing agreement would be expedited.

The report added that it was decided to hold meetings every quarter to review the progress of SMP. It was also resolved that West Bengal and Orissa would regularly exchange information on rainfall, water levels and related data.

SNS reported that Mahanadi Aban Power Company Limited promoted by Chennai based Aban Offshore Limited, which had signed an MoU with the state government in 2006, is keen to commence work on its 1030 MW thermal power plant at Angul early next year and commission first phase of the project by 2011.

Representative of the company said that
1. It hopes to go for financial closure within 6 months of allocation of coal linkage
2. It has applied for coal linkage to the coal ministry. The requirement will be around 6.3 million tonnes of coal per annum
3, It has also initiated talks with a Czechoslovakian company and a few Chinese manufacturers for supply of equipment.
4. It has already deposited the necessary funds with state run Industrial Infrastructure Development Corporation of Orissa for land acquisition. A total of 1030 acres, 978 acres of which is private land needs to be acquired for the project.
5. Certain procedures like hearing for alienation of government land and notification for acquisition of private land have been completed said company sources while informing about the progress on the project front.
6. A local NGO has been entrusted with the task of conducting social economic survey work following which the rehabilitation package for affected families will be announced.
7. The report added that environment impact assessment and environment management plans have been submitted to the Orissa State Pollution Control Board.

The thermal plant project will draw its water requirement from Brahmani river and it has obtained necessary approval from the state government in this regard. 25% of the power generated will be purchased by Grid Corporation while the rest will go to Power Trading Corporation and Power Company of Karnataka as per agreements signed between Aban and the three power trading companies.

After the Klöckner & Co Group performed exceptionally well in first quarter 2008, the company’s position improved even further during second quarter 2008 as a result of continuing favorable market conditions for steel and metal products. In first half 2008, sales volume of the Klöckner & Co Group totaled 3.5 million tonnes, up by 5.5% YoY. Sales climbed to EUR 3.6 billion, up by 12% YoY. EBITDA reached EUR 321 million, up by 65% YoY. The consolidated net profit for the period has increased by 155.2% YoY to EUR 178 million.

Dr Thomas Ludwig chairman of the management board of Klöckner & Co said that "We have successfully turned increased prices into higher gross margins. This is the basis of our satisfying earnings growth. The record result expected for the entire year of 2008 and the high inflow of funds creates an excellent platform for the group’s strategic growth."

In addition, Klöckner & Co is able to move forward with its focus on core business activities like the acquisition of Temtco Steel was concluded. The sale of the Canadian subsidiary Namasco Limited to the Canadian company Samuel, Son & Company Limited was completed in July 2008. A contract signing to sell the wholly owned subsidiary Koenig Verbindungstechnik to the private equity firm Capvis via the Swiss subsidiary Debrunner Koenig Holding AG also took place in July 2008. The sale is still subject to approval by anti trust authorities.

The Australian Business reported that Australia's AUD 2 billion gas pipeline explosion might have been avoided if a key state government department had not ignored constant warnings that Apache Energy was not complying with safety standards at its Varanus Island facility.

Documents released by West Australian Liberals under Freedom of Information laws reveal that the state Department of Consumer & Employment Protection repeatedly raised concerns with the Department of Industry and Resources about the integrity of Apache's gas pipeline more than a year before the June 3rd 2008 explosion. The blast cut a third of the state's gas supply to business and households and led to hundreds of workers being temporarily laid off and a cut in the Reserve Bank's forecasts of national economic growth this year.

The documents put pressure on Apache's declaration of force majeure to major gas customers, including the state's main electricity supplier and some of the country's biggest mining companies.

Former Liberal Party leader Mr Troy Buswell, who is now Opposition Treasury spokesman, released the documents and accused the Carpenter government of playing a substantial role in the crisis. He said that "The information we have obtained is incredibly damaging to the credibility of the government and points very clearly to government failures playing potentially a major role in the explosion on Varanus Island."

Other documents show that Department of Consumer & Employment Protection had advised Department of Industry and Resources that a 5 year integrity review report on the pipelines produced by Apache in May 2007 was inadequate.

The United Steelworkers has heralded a tentative 4 year labor contract it reached with US Steel Corporation as one that will set a new standard for the industry because it includes very significant wage and benefit increases.

USW in a statement said that the proposed settlement that covers 16,000 steelworkers at 12 plants, including about 2,600 in three Mon Valley plants, provides a substantial bonus and improves benefit programs for active employees and retirees as well as reduces health care premiums for retirees. The new contract would replace a 5 year pact that expires September 1st 2008, if approved by the rank and file in a mail in vote.

Mr Leo Gerard president of USW said that "Our union was instrumental in restructuring the industry, and this new contract rewards our members for their hard work, improves the living standards of our retirees, and the capital investments that will be made in our mills protects our communities far into the future."

On August 11th 2008, the average price of H1 scrap and number 2 bundle scrap in Pittsburgh, Chicago and Philadelphia was USD 449.17 per long tonne, down by USD 48.33 and USD 427 per long tonne, decreased by USD 52.50 per long ton from last week.

Specially, the average price of H1 scrap in Pittsburgh was USD 474.50 per long ton, down by USD 50 per long ton and in Chicago was USD 449.50 per long ton, down by USD 45 per long ton from last week. And the average price of H1 scrap in Philadelphia was USD 423.50 per long ton, down by USD 50 per long ton than the previous week.

In the Eastern coast, the average price of H1 scrap in New York, Boston and Huston was USD 408.83 per long ton, a decrease of USD 70 per long ton. In western coast, the average price of H1 scrap was USD 184.33 per long ton, dropped by USD 13.34 per long ton.

South African steel producer Highveld Steel & Vanadium expects its interim earnings to more than double.

Highveld Steel said that headline earnings a share for the January to June 2008 period could increase by between 98% and 102% to between 1,283.4 cents a share and 1,309.4 cents a share. Basic earnings a share were likely to rise to between 1,464.9 cents a share and 1,484.4c a share.

Highveld Steel & Vanadium said the difference between the headline and basic earnings a share was due to the profit on the disposal of the Rand Carbide division in February 2008.

World’s largest independent steel trader: Stemcor announced that it has established an office at Santiago in Chile.

The release said that “Effective September 1st 2008, Stemcor Chile will be managed by Anibal Hevia, who brings many years’ experience to the Group and in cooperation with Stemcor's regional head office in Sao Paulo will assume responsibility for the development of Stemcor’s business in Chile.”

Mr John Mainwaring director responsible for flat rolled products within Stemcor’s international trading division said that “By expanding in South America, and in Chile in particular, the Group will be better able to meet the needs of its steel producing and consuming partners throughout the South American subcontinent.”

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.

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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

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Taiwan’s import volume of wire rod in July 2008 has decreased by 47% MoM to 17,990 tonnes from last month. Size of D<14mm totaled 13,683 tonnes and the average price was TWD 28,730 per tonne. The import volumes in the January to July 2008 period reached 309,391 tonnes, decreased by 16% YoY.

Besides, the exports in July 2008 decreased by 23% MoM to 17,948 tonnes. The imports of D<14mm totaled 16,335 tonnes and the average price was around TWD 27,490 per tonne. The total export in January to July 2008 period hit 145,412 tonnes, up by 4% YoY.

Bloomberg reported that the world's coal, grain and ore shippers, after the longest losing streak since 2005, may face another 2 years of declines as the fleet expands and slower global economic growth curbs demand for raw materials.

The Baltic Dry Index, the benchmark for shipping costs, fell for 23 consecutive sessions through August 12th 2008. The index will average 40% less next year and sink another 47% in 2009. STX Pan Ocean Co Limited and the other 11 smaller members of the Bloomberg Dry Ships Index have retreated as much as 34% in three months.

Commodities, as measured by the Standard & Poor's GSCI index of 24 raw materials, are in a bear market after plunging as much as 22% from a record set July 3rd 2008.

The Baltic Dry Index reached a record 11,793 on May 20th 2008 and has dropped 40% since then.

Slowing growth comes as shipyards have almost as many capsize vessels on order as already exists in the fleet. Capsizes are the largest dry bulk vessels. They travel between the Atlantic and Pacific oceans via the Cape of Good Hope because they are too large to use the Panama Canal.

Lockheed Martin Corporation said that a double digit jump in the cost of steel and rising oil prices have helped propel the final price tag of its latest warship for the Navy to more than double the initial estimates.

Navy officials told lawmakers the service's initial estimate of USD 220 million per ship had ballooned to as much as USD 550 million, which they blamed on design, changes that occurred during construction.

While the cost of the first two Littoral combat ships, one each being built by Lockheed Martin and General Dynamics Corporation, is not allowed to breach a congressional cost cap of USD 460 million per vessel, the ceiling does not apply to run ups in inflation.

Lockheed Martin is expected to deliver its first ship to the Navy in a few weeks, after the service completes its own set of trials and the company makes any necessary changes. The Navy has yet to set a date on when the ship will be commissioned.

In April 2008, the Navy requested bids from both companies to build three additional ships. The service envisions awarding a contract for two ships to the winning bidder, with the other company building the third.

JMB reported that Japanese ferrous scrap export price plunged by JPY 17,100 per tonne at monthly export tender held by Kanto Tetsugen when the successful bid was JPY 50,650 per tonne FAS for H2 grade from Tokyo bay for September 2008 shipment.

It was the first drop in 9 months and the largest drop in the tender history.

According to the related statistics, South Korea imported 756,000 tonnes of scrap in June 2008, up by 7.3% YoY.

America was the biggest exporter of scrap to South Korea at 244,000 tonnes, up by 8.7% YoY, Japan ranked the second at 227,000 tonnes, down by 35.7% YoY. Russia shipped some 140,000 million tonnes to Japan, up by 75.5% YoY.

In addition, South Korea imports 3.84 million tonnes of scrap in the January to June 2008 period, up by 18.2% YoY.

(Sourced from YIEH.com)

Officials from UK based ZincOx said that final negotiations are underway on a construction contract to build a USD 150 million zinc processing plant in Fulton County. They added that work will start within a month on their 45,000 square foot facility, which will turn electric arc furnace dust into zinc concentrate and pig iron.

The plant, operated as Zink and Iron Recycling of Ohio, a subsidiary of ZincOx, will employ about 50. Production is slated to start in January 2010.

Electric arc furnace dust is the waste generated when galvanized steel scrap is recycled in electric arc furnaces. ZincOx touts a recycling process it says has not been used commercially before.

Officials said that the zinc concentrate will be sent to the company’s Big River plant in Illinois to be washed and sold to existing zinc refineries while pig iron and slag will be sold to the construction industry.

Mexican steelmaker Altos Hornos de México has posted net income of MXN 1.13 billion for April to June 2008 quarter up by 99.8% YoY. 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.

AHMSA said 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 tonnes per year, has been under development since early 2007.

The project will require a total investment of some USD 1.40 billion.

Lead & Zinc Complex has recorded a net profit of EUR 0.98 million in January to June 2008 period as against EUR 7.3 million in January to June 2007 period due to a non operating revenue of EUR 5.8 million.

The company's revenues from operations dropped approximately in half from EUR 62.1 million in the first half of 2007 to EUR 35.3 million in the first half of 2008.

New Zealand steel products maker Steel & Tube Limited has posted a 19% YoY fall in full year profit, hit by a volatile currency and higher costs.

Steel & Tube Limited said that net profit after tax for the year to June 30th 2008 was NZD 22.5 million as compared with NZD 27.7 million a year earlier. It declared a dividend of 10 cents per share as compared with 14 cents in 2006.

Leighton Holdings Limited has reported a 35% YoY rise in year net profit, spurred by mining and infrastructure projects and said that it planned to raise about AUD 700 million to help fund its rapidly growing pipeline of projects.

Leighton in a statement said that its net profit rose to AUD 607.9 million for the year to June 30th 2008 from AUSD 450 million a year earlier. Analysts had expected a net profit of AUD 596.5 million.

Leighton also said that it planned to raise the money in an entitlement offer of new shares to eligible shareholders.

Steel Dynamics Inc has announced a number of management promotions and organizational changes at OmniSource Corporation, its wholly owned metals recycling subsidiary. The new assignments will bring additional industry depth and experience to OmniSource's management team and are designed to further position the company for continued profitable growth in metals recycling.

The following are appointed OmniSource executive vice presidents reporting to Mr Mark Millett.

Mr Tommy Tuschman, who has served as an executive with OmniSource since the merger of his scrap company into OmniSource in 1980, becomes OmniSource's executive VP for strategic sourcing & business development. He will continue in his role of sourcing of metals from major strategic accounts as well as pursuing other OmniSource growth opportunities.

Mr Marvin Siegel will continue in his role as executive VP, leading OmniSource Southeast. Previously, Mr Marvin served as president of recycle south, which became a part of OmniSource earlier this year.

Mr Larry Adelman has been named OmniSource executive VP nonferrous group. Mr Larry, who will be responsible for strategic operations of the nonferrous group, served as president of Admetco from 1977 until it was acquired in 2004 by OmniSource.

The following are appointed OmniSource VPs managing various facets of OmniSource's Midwest based ferrous and nonferrous metals businesses.

Ferrous Management Appointments
The following will report to Mr Mark Millett

Mr Rich Brady is named OmniSource VP ferrous sourcing & marketing. He previously served as VP for ferrous resources for Steel Dynamics and upon joining the company in 2004 established SDI's in house scrap procurement department.

Mr Bob Brewer is named OmniSource VP ferrous operations. In this role, he will be responsible for 6 geographically defined OmniSource scrap collection and processing divisions in the Midwest.

Mr Jason Redden is named OmniSource VP national accounts & foundry sales. In this role, he becomes responsible for procurement and management of scrap metal from large regional and national industrial accounts.

Nonferrous Management Appointments
The following will report to Mr Larry Adelman

Mr Steve Alberico is named OmniSource VP nonferrous sourcing & marketing. Hr will be responsible for daily nonferrous marketing and trading.

Mr Jeff Rynearson has been named VP nonferrous operations. In this capacity, he will be responsible for the company's 6 high production nonferrous processing facilities in the Midwest.

Mr Denny Luma president of Superior Aluminum Alloys Inc also becomes a VP of OmniSource.

In making these announcements, Mr Mark Millett executive VP for metals recycling & ferrous resources at SDI said that "We are delighted that OmniSource has such a talented workforce, with deep industry experience and management capabilities. These new appointments, all of which have come from within the company, will provide additional vision and leadership as we continue to build our OmniSource platform."

He added that "In its first two full quarters of operations as a part of Steel Dynamics, OmniSource exceeded our expectations in terms of the volume of scrap processed and sold as well as in its profitability, setting all-time OmniSource quarterly records. OmniSource now stands as the second largest ferrous scrap processor in North America and is also one of the nation's top processors of nonferrous metals. Going forward, we expect to maintain OmniSource's growth in ferrous and nonferrous recycling to both complement and support SDI's continued growth in steelmaking. I am very pleased to have the opportunity to lead the OmniSource organization and look forward to its continued success."

Platts reported that Tonbridge Power has received from Alberta regulators a permit to build its proposed CAD 140 million worth 215 mile long international transmission line that would stretch from Lethbridge to Great Falls in Montana.

As per report, the Alberta Utilities Commission's approval of the proposed Montana Alberta Tie Limited line was the final Canadian permit needed for the 240 kV AC line, which would interconnect electricity markets and carry 300 MW north and south. The commission said the proposed line satisfied its conditions, including a process for negotiating disputes with landowners.

US approvals still are needed for the line. The Montana department of environmental quality and US department of energy are expected to release soon a final environmental impact statement that will identify the final route so that the agencies can issue final permits. The project is targeted to go online in 2009.

The line, 86 miles of which would be in Alberta and 129 miles in Montana, would connect to AltaLink's grid in Alberta and to NorthWestern's transmission grid in the US. Wind farm developers in Alberta and Montana have fully subscribed the line for marketing power both north and south.

It is reported that, triggered by fall in zinc price and demand, some American galvanized steel mills have reduced their surcharge.

Lower prices of hot dip galvanized steel were being offered. At present, while the listed base price was around USD 1,345 per tonne, the spot prices were around USD 1,213 to USD 1,235 per tonne.

In the middle and western parts of America, the price of G90 galvanized steel was at USD 1,521 to USD 1,565 per tonne. In order to compete with this price, China’s offer for the same material was decreased by US$88 per tonne during the last 3 weeks.

It may be noted that US steel mills are still trying to achieve higher prices for September 2008, despite the prices being lower than that of the previous month.

(Sourced from YIEH.com)

Arabian Business reported that Qatar Steel shrugged off the effects of a three month price freeze by recording a threefold increase in net profits for the first half of 2008.

The subsidiary of Industries Qatar earned a net profit of USD 335 million in the first half of this year as compared with USD 129 million in the year ago period. Qatar Steel contributed 27% to Industries Qatar’s overall net profit of USD 1.2 billion in the review period, which more than doubled from USD 563 million in January to June 2007.

Qatar Steel had decided to keep steel prices unchanged for three months until June as part of its measures to contain inflation in the country.

According to an internal analysis of Industries Qatar, Qatar Steel is expected to sell 813,000 tonne of direct reduction iron, 1.80 million tons of bars and 216,000 tonne of wire rod coil in the current financial year.

On the production capacity front, Qatar Steel is expected to produce 2.3 million tonne of sponge iron; 1.63 million tonne of molten steel; 1.60 million tonne of billet; 1.75 million tonne of bar and 300,000 tonne of wire rod coil in this year.

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

In order to provide a 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 MEASPI 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 5 countries, 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 these countries.

The pricing input is from www.steelprices-middleeast.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 Turkey's domestic wire rod demand slowed last week; the price of wire rod for mesh is being quoted at USD 1,150 to USD 1,320 per tonne.

European buyers are holding off purchasing during the summer vacation, and Middle East buyers are also suspending buying due to lower prices being offered by China, which is the main factor contributing to the price reduction.

Most of Turkey's manufacturers now find it difficult to offer an export price because the global wire rod market is becoming more sluggish than before.

(Sourced from YIEH.com)

According to a new research, civil construction boom across the Arabian Gulf will reach in excess of USD 330 billion by the end of 2008, more than ten times the annual investment being made in the region’s cash rich oil and gas industries.

The GCC countries are currently at the centre of the world’s most concentrated construction boom focused particularly on the UAE and Saudi Arabia. The Big 5 research partner Proleads is currently monitoring more than 3,800 active construction projects across the region worth around USD 3.5 trillion in total. The civil projects involved include all commercial, education, health, residential, retail, hotel, leisure, entertainment, theatre, cinema and mixed use buildings along with civil infrastructure such as canals, reclamation, airports, bridges, ports, roads and railways.

Mr Bernard Walsh MD of DMG world media Dubai, organizers of The Big 5 said that “The hydrocarbon economies of the Gulf are now an international force with world-class companies creating windfall profits to help governments diversify away from oil.”

Mr Walsh said that “There are huge profits in the oil and gas industry but in 30 years from now perhaps less it may be a very different story, so diversification now is key to sustainable long-term growth.”

He said that “Unlike the previous oil booms of the 1970s and 1980s, the region is investing heavily in infrastructure and its own future, which is clearly reflected in the current civil construction boom.”

The region’s largest trade show for the construction industry and associated suppliers, The Big 5 will take place from November 23 to 27 at Dubai International Exhibition Centre.

MEED reported that pre qualified companies have until January 15th 2008 to submit bids for the Safi independent power project in Morocco. The 1,320MW coal fired plant replaced previous plans to build a plant at Cap Ghir.

All of the companies which had pre qualified for Cap Ghir automatically pre qualified for Safi and have been issued with a request for proposals. They are

1. US based AES Corporation
2. China Guodian Corporation with China International Water & Electric Corporation
3. CMS Generation of US
4. French EDF International
5. EDP of Portugal
6. Endesa of Spain with Germany's Siemens Project Ventures
7. UK's International Power
8. Malaysia's Malakoff with Saudi Arabia's Xenel Industries
9. Japan's Marubeni Corporation with Abu Dhabi Energy Company
10, Japan's Mitsubishi Corporation
11. Japanese Mitsui & Company
12, Malaysian Powertek Berhad
13. Belgium's Suez Energy International
14. Japan's Sumitomo Corporation
15. Spain's Union Fenosa

Office National de l'Electricite has launched a separate prequalification process for companies which were not pre qualified for Cap Ghir. The deadline for prequalification was 11 July and a decision on additional pre qualifiers is imminent.

The successful bidder will enter into a 30 year power purchase agreement.

The News reported that current turmoil in the automobile industry has claimed jobs of around 150,000 workers, mostly from auto vending industries which are now operating at around 40% of their installed capacity.

A survey of the auto vending sector by the News revealed that most of the vendors increased their capacity substantially in the wake of sustained growth of over 20% in automobile production during 2001-2006. This capacity is now lying idle as instead of registering some growth the automobile production is on the decline. Most of the auto vendors, which were running three shifts a day two years ago, are now meeting their orders by operating one shift only.

The report said that “These small and medium industries, which have been forced to reduce their workforce, are in deep trouble as they earlier went for expansion on low interest loans when the industry was moving on a sustainable growth path. Then the demand for automobiles started declining with increase in mark up rates on car finance while vendors are now forced to service their loans on current interest rates as they had borrowed money at floating rates.”

The report added that “At the same time, the vendors allege the deletion policy of the government is in doldrums. Even in vehicles with a deletion level of 70%, they point out, the cost of imported components is much higher than the price paid to vendors for local components. In fact, for 70% local parts the auto vendors get only 30% of the total cost of vehicle parts while the foreign exchange component for 30% imported parts comprises 70% of the total cost.”

The vendors also deeply regret losing their skilled workforce due to low production as these workers were provided in house training at a substantial cost in various skills. The workers, they say, would divert to other fields as currently there is no work for them in the auto industry, adding they would have to retrain fresh workers when the automobile industry resumes its growth in future.

Syed Mansoor Abbas an auto vendor said that “There are no chances of resumption of a growth cycle in automobile in the next two years. By that time, most of the vending industries would go sick. Many vendors would soon default on their bank loans and might be liquidated by bankers. The cost of production has increased enormously due to high steel and energy prices and auto assemblers are not prepared to increase the rates of parts corresponding to the rise in the cost of production.”

It is reported that the three ancillary contracts on the North-South minerals railway project in Saudi Arabia are set to be awarded in October.

The Public Investment Fund part of the Finance Ministry is evaluating bids on the contract to provide signaling and telecoms to the 2,400 kilometer line, another to provide wagons for the railway and a third to provide operations and maintenance services.

Tenders have also been issued seeking manufacturers to supply locomotives and passenger carriages to the railway.

A source close to the project said that "Tenders for three contracts are currently being assessed. We expect that bids for the locomotives will be returned after Ramadan, and at the same time awards should be made for the other contracts."

(Sourced from MEED)

Khaleej Times Qatar Fuel Company has registered a net profit of QAR 351.3 million for the H1 of 2008 up by 40% YoY as compared to QAR 251.6 million.

Business Recorder reported that Mr Syed Naveed Qamar Federal Privatization, Investment and Finance, Minister will chair a meeting of the Privatization Commission board on August 15.

As per report the meeting will formulate recommendations for Cabinet Committee on Privatization and review the status and progress of various ongoing and upcoming transactions.

Business Recorder cited Mr Shamim Ahmed Shamsi president of Karachi Chamber of Commerce and Industry reported that KCCI has urged the government to outline details of policy about fixation petroleum prices and their impact.

Mr Shamsi in a communication to the Federal Minister for Finance said that this information will help in planning their budgets and at the same time remove the uncertainty, This is essential as the crude oil prices have an impact on every walk of life so, a strategy be made through a new policy, making availability of alternatives and encouraging diversion, thus reducing the oil import bill.

He added that reduction of imports has become necessary to reduce fiscal deficit. Forty percent of our import bill is for food items and needs a review along with the import of other luxury items. Taking of alternatives, he said gas is our indigenous product and the government should reduce and control its prices.

To bring down the gas prices, he said a KCCI committee has already discussed the rationalization of formulas and re capping for reduction He said that the government should have a strategy clearly defining , after consultation with the business community, how to share these extra burdens on the economy and at what ratio.

saudigazette.com.sa reported that Consul General of Pakistan in the Western Region Zaigham Uddin Azam has urged the members of the Pakistan Investors Forum for greater cooperation. Addressing a meeting of the Forum he also announced the creation of a committee in the commercial section of the consulate that will contain the profile of the investors, their field of work and the amount of their investment.

He said the committee will have a website having all information to assist the investors to promote investment and meet all the requirements of an investor in Saudi Arabia. He said that 376 Pakistani investors have stakes in Saudi Arabia out of them, 200 are in Jeddah, Taif, Yanbu and Madinah.

The main fields of their investment are in information technology, construction, electricity, steel industry and real estate development, he added, saying that their total investment in the Kingdom amounts to SAR 1 billion.

The consul general noted that this is the very first meeting of the Pakistani investors and their unity in the field of investment will greatly help not only them but Pakistan as a whole. He said in his meeting with the Governor of Makkah Prince Khalid Bin Faisal, who greatly appreciated the Pakistan Investment Forum, the Emir asked him to arrange a meeting with the Forum and Saudi Investors for possible cooperation.

The Counsel General also informed the gathering on investment conference to be held in Riyadh on October 20 and in Jeddah the next day. He added that the conference will pave the way for better investment opportunities in both the countries.