Indian domestic steel prices continued their down slide on Tuesday after a sever dip on Monday.

Long products dip is reflected in 62 point fall in LPPI. But fall in flat products was lesser with FPPI dipping by 37 points. Overall, the Indian Steel Price Index fell by 49 points.

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

Long products

Flat products

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

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It is reported that ASSCHAM has called for increasing export tax on iron ore as a reaction to increase of export tax by China on Coke from 25% to 40%.

Mr Sajjan Jindal president of ASSOCHAM told reporters that "China has increased export duty on coke and coking coal. I think India should do a similar thing. China's decision to hike duty on coke and coking coal would impact India's steel industry.”

He added that India should hike the export duty on iron ore not in response to what China has done, but even otherwise.

The downtrend in prices of long products continues unabated with fall reported at several locations. The decrease is spread across all categories. The prices are expected to fall further as the input materials continue down slide

Kolkata

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Delhi

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Mandi

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Mumbai

Change is on August 19th as compared to August 18th
Change is in INR per tonne

The only silver lining in the cloud was Mumbai, where the downtrend in TMT bars has been reversed as the construction activity has looked up after a heavy monsoon prompting the market to become marginally bullish. It was also influenced by firming up of scrap prices to some extant.

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JoongAng Ilbo cited Mr Lee Ku Taek CEO of POSCO as saying that it may delay construction work on its steel plant in India until 2009.

Mr Lee said that "The construction is likely to be postponed because POSCO has not secured mining rights and residents on the site of the planned plant have not been relocated."

It may be noted that land disputes and delays in allocating mining licenses have stopped POSCO from proceeding with the USD 12 billion project, potentially the biggest overseas investment in India.

The trend is relatively stable in general but deceleration has commenced in selected pockets like Mumbai, Ludhiana, Mandi and Pune. This trend is expected to spread gradually as the factors accentuating this depression are absent as yet.

Mumbai

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Pune

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Ludhiana

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Mandi

Change is on August 19th as compared to August 18th
Change is in INR per tonne

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It is reported that TATA BlueScope has entered the retail market with its range of color coated steel building products.

TATA BlueScope said that galvalume, to be sold under the brand name Durashine, will have aesthetic appeal, greater durability and superior corrosion resistance.

Mr Hakimuddin Ali VP Building Products Division of TATA BlueScope said that it already has garnered a fair share in building products arena and was now entering the retail market.

He said "There has been a need to provide aesthetics and durability in color coated steel products to the retail customers and Durashine products would fulfill the need.”

The reduction in the international price of scrap has consequently led to decline in the prices of semis in Mandi, Kolkata and Mumbai, which has led to derived decrease in prices of longs to some extant.

Mandi

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Mumbai

Change is on August 19th as compared to August 18th
Change is in INR per tonne

Kolkata

Change is on August 19th as compared to August 18th
Change is in INR per tonne

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Reuters reported that Adhunik Metaliks Ltd will raise INR 2.5 billion to INR 3 billion through an initial public offering of shares in its mining subsidiary. It will sell 15% stake in Orissa Manganese and Minerals Ltd in the share sale, to part finance its INR 11 billion pellet and ferroalloy plants.

It hopes to file the draft prospectus with the market regulator within 60 days. JM Financial and Edelweiss are the book running lead managers for the issue.

Mr Manoj Agarwal MD of Adhunik Metaliks Ltd said that "OMM is planning to set up a pellet plant and iron ore beneficiation at Nuamundi, Jharkhand and a manganese ore beneficiation plant at Dhenkanal, Orissa. These plants will convert iron ore fines into pellets and process low grade manganese ore for use in ferroalloy units. These plants require an investment of INR 1,100 crore and will be operational in the two years.”

Mr Agarwal told reporters that Adhunik had bought OMML for around INR 700 million around 2 years ago and hopes to generate revenue in excess of INR 10 billion by 2011-12.

Mr Alok Kumar Sharda CFO of Adhunik Metaliks Ltd said that “This business has an EBITDA margin of more than 70%, which is unprecedented. Our backward linkages in mining will give us a better mileage against competition.”

In its first phase of expansion, Orissa Manganese and Minerals Ltd expects to mine 0.3 million tonnes of manganese and 0.4 million tonnes iron ore, which will be raised to 1 million tonnes and 3 million tonnes respectively by 2011.

It is reported that Indian Railways have generated INR 17442.11 crore of revenue earnings from freight traffic during April to July 2008 up by 21.30% YoY as compared to INR 14379.02 crore during the corresponding period last year.

As per report, Indian Railways carried 270.73 million tonnes of freight traffic during April to July 2008 as compared to 247.39 million tonnes carried during the corresponding period last year, registering an increase of 9.43%. The net tonne kilo meters went up from 158661 million during April to July 2007 to 174940 million during April to July 2008, showing an increase of 10.26%.

According to the release, the break up for the months of July is as under
1. INR 1437.64 crore came from transportation of 28.01 million tonnes of coal

2. INR 869.09 crore from 11.64 million tonnes of iron ore for exports, steel plants and for other domestic user

3. INR 361.77 crore from 7.25 million tonnes of cement

4. INR 283.37 crore from 3.40 million tonnes of petroleum oil and lubricant

5. INR 248.84 crore from 3.86 million tonnes of fertilizers

6. INR 229.93 crore from 2.48 million tonnes of food grains

7. INR 219.24 crore from 2.33 million tonnes of pig iron and finished steel from steel plants and other points

8. INR 190.83 crore from 2.58 million tonnes by container service

9. INR 67.89 crore from 0.99 million tonnes of raw material for steel plants except iron ore

10. INR 314.89 crore from 5.19 million tonnes of other goods.

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.

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

It is reported that Indian Railways will be finalizing a majority JV partner for its INR 1,000 crore diesel locomotive manufacturing unit at Marora in Bihar by end August 2008.

As per report, the Railways is likely to issue RfPs documents for inviting price bids shortly. Indian Railways have already short listed US based General Electric and Electro Motive Division and will be finalize them, based on a price bid for 74% partnership in the venture.

The RFP document has been drafted and is now awaiting internal approvals within the ministry. The bidding for the venture will be on the basis of lowest cost of manufacturing 1,000 locomotives and their maintenance over a period of 10 years.

It had earlier rejected the RfQs from Chinese company Dalian Locomotive. While GE and EMD were shortlisted on the basis of their experience to manufacture a minimum of 200 diesel locomotives of 4,000 HP and 25 number of 6,000 HP locomotives, China's Dalian was rejected as it could not meet the bidding criteria.

The Telegraph reported that TATA Steel opened a feeder centre at Jharia. Mr Joe Sebastian the director of sports Union government inaugurated the centre.

The opening ceremony of the centre was followed by an exhibition football match between Mohammedan Sporting Club, Calcutta and TATA Football Academy in Jamshedpur.

As per report, the centre would provide a platform for local talents across mines and collieries to groom themselves. The report added that about 60 boys and girls in the age group of 12 to 14 years have been selected after conducting a series of trials for football, archery and athletics. They will be inducted into this feeder centre at Digwadih Stadium in Dhanbad. These cadets will be provided with kits required to pursue their sport under the guidance of selected professional coaches for initial 2 years.

The cadets will be subjected to training and will also get periodical exposure to compete with cadets of other feeder centers at West Bokaro and Noamundi. It will also be exposed to advance training sessions at the parent academies at Jamshedpur. Thereafter, the cadets will be ready to face the trials.

It is reported that Bajaj have slowly consolidated their shareholding in Mukand by increasing their stake by 2% to 43% even as their decades old partners the Shah family have reduced their equity in the specialty steel firm.

Bajaj Group in a statement to the stock exchanges said that between February 15th to August 7th 2008 the group’s investment firms led by Bachhraj & Company have bought 2.04% stake in Mukand through open market transactions. With this, the promoting companies stake will go up by 43% excluding the 10% stake held by Bajaj’s partners, the Shah family.

While the Bajajs are increasing their stake in the INR 2,200 crore company, the Shah family have reduced their stake by 2% in the last 1 year, statistics submitted to the stock exchanges show. The Shah brothers Rajesh and Suketu have reduced their stake to 4.99% each from 6% each.

As per the report, this change in the company’s shareholding comes at a time when Mukand has made ambitious plans to increase its capacity to become a INR 3,000 crore firm by this fiscal. The company is planning to double the capacity of its Hospet plant with an investment of INR 300 crore to INR 400 crore.

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Ranchi express reported that Nuclear Radiation and contamination threat loomed large in the villages around Uranium Corporation of India Limited at Jadugoda as pipe carrying uranium waste reportedly started leaking in the wee hours of Sunday.

Sources informed that the leak started around 3.30 AM when a gasket fitted in one of the joints in the pipe carrying waste from the uranium mines burst under a huge pressure. Consequently, waste being drained out from the company to one of the 3 slime dams rushed outwards.

As per report, the contaminated water was ejected due it high pressure up to a distance of around 50 meters covering the nearest village of Dungridih.

FE reported that competition from homegrown private sector companies is not all that bad, but losing orders to Chinese firms is what makes state run power equipment supplier BHEL feel miserable.
As per report, BHEL has lost 18,000 MW worth equipment orders to Chinese companies.

Mr K Ravi Kumar C MD of BHEL said that "I do not mind competition from private domestic players, but I feel bad if the order is won by any Chinese company.’

Mr Ravi Kumar said that "We have expertise for supplying equipments for 250 MW and 500 MW but in between suddenly the norms were changed to 300 MW and 600 MW only to accommodate Chinese firms. But this norm has now been removed."

But in the process, BHEL lost orders worth 18,000 MW from private players. BHEL, which has joined hands with French equipment maker Alstom for manufacturing 800 MW in the super critical technology is bidding aggressively and is hoping to get orders in this in the near future.

BHEL recently said that it would invest INR 10,000 crore in the next 4 years to ramp up capacity to meet the growing electricity needs. The investment is in line with the order book of the company, which has crossed the 100,000 mark and is still growing.

ET reported that Gujarat based Ambuja Cements is also planning to expand in the South Indian market by transporting cement by sea in a bid to lower transportation costs.

Ambuja Cements said that the cost of transportation through sea is one third that of the road transport. The average freight cost by sea comes to around 50 to 70 paise per tonne km against INR 1.5 per tonne km for road transportation.

The company has recently taken one more terminal at Mangalore, in addition to Cochin, as it bids to corner a portion of the fastest growing cement market in the country.

Ambuja is also planning to add one more ship to its fleet, taking the total to 11. The company has placed orders for three more ships, which it will receive in two years.

It is reported that GAIL plans to pick up 10% stake in ONGC Petro Additions' petrochemical complex project at Dahej in Gujarat. The size of the deal is pegged at INR 1,500 crore to INR 2,000 crore.

Currently, ONGC holds 26% stake in OPaL while Gujarat State Petroleum Corporation holds 5% equity. The company has roped in ABN-Amro and Rothschild for the purpose.

The projected cost of the petrochemical complex unit was revised in 2007 to INR 12,440 crore. However, with the recent increase in cost of input materials including increasing crude oil prices will see the project cost escalate by 20% to 30%.

Besides GAIL, Petronet LNG is also aiming to pick up 5% stake in the project. Other state public sector units including Gujarat Narmada Valley Fertilizers have also evinced interest in picking up equity in the project.

It is reported that Mumbai based Venus Mercantile Company is planning to set up a cement plant in Kachch district of Gujarat with an investment of INR 1,300 crore to INR 1,500 crore. The plant will have initial capacity of 3.8 million tonne per annum.

As per report, the company has already applied for mining licenses in Abdasa and Lakhpat regions of Kachch. The plant is expected to be completed within 2 years.

FE reported that Gujarat based GSPC Gas has approached International Finance Corporation to part finance its USD 140 million gas distribution project, which will be implemented across various locations in the state.

Since 2 years, GGL has successfully established operational gas distribution networks in a number of towns and cities across Gujarat to meet demand from industrial, domestic, commercial and transport sectors.

GGL lays a steel pipeline network to be supplied via city gate stations from Gujarat State Petronet gas transmission network and to supply anchor industrial clusters and CNG stations. The company on March 2008 had laid 119 kilometer steel pipeline and 1,177 kilometer PE pipeline and had also constructed 16 CNG stations which are operational.

ENS reported that the surge in crude oil prices has prompted the Shipping Corporation of India to enter the offshore segment in a big way. It has earmarked over INR 1,200 crore for its offshore activities, which will be undertaken by the end of the year.

According to the official, after a comprehensive study this year SCI proposes to launch 2 to 3 new projects in offshore service areas, including buying 6 to 8 anchor handling tug cum supply vessels of various sizes. These vessels now command a charter rate of about USD 11,900 each. They are used to install and maintain oil platforms.

The official said that "SCI has chalked out a major future plan for the offshore segment where it will invest from time to time. Moreover, SCI’s recent move from being a Miniratna to a Navratna company will give it the required fuel to speed up its ambitious ship acquisition program lined up for the next 4 years."

The official also said that about 56% of the total exploratory sedimentary basins in the country lie in the offshore sector and only 19% of the total area has been explored, thus giving a huge potential for further exploration.

At present, SCI owns and operates 10 offshore vessels. SCI now looks after operations and management of some of the Oil and Natural Gas Corporation’s offshore support vessels and specialized vessels.

BL reported that PVP Ventures is planning a major investment in the power sector with the proposed merger with Malaxmi Energy Ventures by way of a Scheme of Amalgamation cum Arrangement, within itself.

AS per report, it has appointed Price Waterhouse Coopers New Delhi as the valuers for the proposed merger.

For PVP Ventures, power project development and generation will emerge as a major investment area other than real estate development where it has large projects. Malaxmi Energy has a significant stake in 2 major power projects that is 50% in Navabharat Power and 26% in Simhapuri Energy, which are in advanced stages of implementation with confirmed coal linkages. With the merger of Malaxmi Energy with PVP Ventures, the power projects will come under a subsidiary PVP Malaxmi Energy Ventures.

BL reported that ONGC has acquired additional 30% CB-ON-7 in the South Pramoda Development Area in the Cambay basin. The block has a capacity of 315 barrel per day of oil and some natural gas. In April, last year HOEC drilled a well in the block and struck oil.

ONGC is the licensee for the block and has exercised its right to take an additional stake. Hindustan Oil Exploration Company is the operator of the block and ONGC and Gujarat State Petroleum Corporation Limited are the other 2 consortium partners.

BL reported that having acquired the captive power JV, HPL Cogeneration Limited in May this year, Haldia Petrochemicals Limited is planning a INR 70 crore investment in the power plant to reduce the energy bill.

As per report, the project is estimated to improve HPL’s bottom line by INR 155 crore a year by reducing the use of high cost naphtha with petrochemicals gas and several low cost petrochemical by products as feedstock to produce power.

The report said that while the 2 part project will be implemented over a period of 12 to 15 months, part of the benefits of the project may start reflecting in the HPL balance sheet beginning this fiscal. The pay back period of the investment is estimated to be less than 6 months.

According to the sources in the State government controlling the Haldia Petrochemical management, the company may rope in GE Infrastructure and Doosan Babcock Energy in implementing the projects.

HPLCL was previously a 51:49 JV between L&T and Haldia Petrochemicals. In May this year, HPL acquired L&T’s stake in the JV in a cash deal of INR 180 crore. Accordingly, HPLCL is now a wholly owned subsidiary of Haldia Petrochemicals Limited. HPLCL produces approximately 70 MW of captive power against a nameplate capacity of 116 MW and steam, using naphtha as feedstock. Naphtha is supplied by HPL.

Pune based Fabtech Projects & Engineers has bagged an order worth INR.103 crore from Bharat Petroleum Corporation for installing LPG mounded storage vessels at 12 sites all over India for strategic storage.

BPCL after considering all technicalities, price and capabilities has placed the order on Fabtech for all the 12 sites tendered.

Fabtech has successfully executed 18 mounded bullet projects for oil companies all over India. Recently Fabtech successfully commissioned & tested India's largest diameter mounded bullets at Mangalore Refinery & Petrochemicals.

It said that Fabtech is also executing mounded storage system project valuing INR 120.6 crore on a lump sum turnkey basis for Hindustan Petroleum Corporation for their Vizag Refinery at Vishakhapatnam.

BL reported that Kerala State Electricity Regulatory Commission has permitted the State Electricity Board to levy a fuel surcharge of 50 paise per unit from consumers with effect from August 20th. According to a statement from KSERC, the surcharge will not be applicable to those domestic consumers whose monthly power consumption is up to 80 units.

It is pointed out that KSEB has been purchasing costly thermal power from outside to overcome the severe energy shortage in the State following deficient monsoon rains. The board had submitted a petition to KSERC asking for permission to increase tariff by 50 paise to INR 2 per unit to recover a part of the additional cost from consumers.

The commission had called upon consumers to cut down consumption to the extent possible, the response to which was rather lukewarm. The statement said that it is in this context that the commission has decided to permit the board to recover a part of the increase in the prices of fuels like naphtha and LSHS from the consumers.

The commission will take a decision on whether to make any changes in the surcharge after reviewing the power situation in the State through public hearings on or before November 1st.

Referring to the decision by KSERC to allow the State Electricity Board to impose a fuel surcharge on consumers, the State Industries Minister Mr Elamalam Kareem said that it would have a direct bearing on the industries sector. He said that that the surcharge would be an additional burden on the industries, which were already reeling under a 25% power cut. The real impact of the surcharge had to be studied.

It is reported that Punjab Infrastructure Development Board will shortly take up new projects worth INR 31,248 crore under PPP mode in Punjab.

Altogether there are 62 projects including 5 ambitious Expressways namely Mohali-Phagwara Expressway, Expressway around Mohali, Expressway for Amritsar Airport, Pathankot-Ajmer Expressway up to Punjab border and Ropar along Sidhwan Canal upto Ludhiana. The other PPP projects are 2 ring roads, Amritsar ring road to be laid at a cost of INR 2,000 crore and Ludhiana ring road to be built at an estimated cost of INR 2,300 crore.

As per report, the new projects also include 6 roads, Batala to Beas road at INR 50 crore, Karatpur-Kapurthala-Nakodar road at INR 70 crore, Amritsar-Sri Hargobindpur-Tanda road at INR 80 crore, Sirhind-Morinda-Ropar road at INR 60 crore, Hoshiarpur to Phagwara road at INR 60 crore and Jagraon-Raikot-Malerkotla road at INR 65 crore.

The PIDB has proposed 2 metro rail projects, one in Ludhiana at an estimated cost of INR 5,000 crore and the other in Amritsar at a cost of INR 4,500 crore. It also proposes to build 3 high level bridges each costing INR 50 crore over Sutlej Nakodar-Makhu Ferozepur road, over bridge at Beas, linking Sultanpur Lodhi to Chola Sahib and a bridge at Chakki Nadi in place of Pontoon bridge.

The construction and upgradation of Mohali bus stand, new bus stand at Patiala and Bathinda has been pegged at INR 150 crores each.

The PIDB projects under PPP include Punjab Institute of Medical Sciences at Jalandhar at INR 225 crore and superspeciality hospital in Mohali at INR 200 crore besides Mohali would also get a sports complex at a cost of INR 150 crore.

A proposal is also in place to set up an integrated multi dimensional tourism project at Kurali in Ropar at a cost of INR 100 crore and development of Bhootgarh complex with an investment of INR 100 crore.

My Iris reported that Punj Lloyd is eyeing a contract to build Singapore's liquefied natural gas import terminal.

As per report, Punj Lloyd has tied up with Saipem, the leading global EPC contractor to bid for this project along with Singapore based Sembcorp. The cost of the LNG terminal is expected to be USD 725 million and the project is expected to be commissioned by 2011.

As per the report, KBR and Samsung Corporation with Kogas Technology, Korean company SK Gas and LG with Whessoe Oil & Gas and Technip with Daewoo are other 3 consortia learnt to be in the race to get this project.

It is reported that Mr Thiru T R Baalu Union Minister of Shipping, Road Transport and Highways has accorded approval for the payment of performance related incentive for employees of Dredging Corporation of India Ltd a schedule ‘B’ Miniratna category-I PSU under the administrative control of the Ministry.

The approval has been accorded for payment of such incentive for four years with a retrospective effect from the financial year 2003-04 to 2006-07 and each employee will be benefited by about INR 45,000 per year on an average.

With this approval, about 400 shore based employee of Dredging Corporation India Ltd. will be benefited. It is hoped that the step to give performance related incentive which gives adequate attractive compensation structure, will boost the morale of the employees to great extent.

Dredging Corporation of India Ltd. has been gradually increasing its turnover and profit earning since its inception. Payment of pay scales, perquisites and other similar benefits are being paid from internal resources of the Company and being regulated as per the Department of Public Enterprises guidelines.

ET reported that the country's third largest cement maker and part of Swiss major Holcim Ambuja Cements will raise cement prices by INR 20 per 50 kg bag in two tranches effective October and early January.

The hike will take the retail price of cement up to INR 265 per bag.

El Universe reported that Venezuela's government will pay Ternium USD 1.65 billion for a 50% stake in Venezuelan subsidiary Sidor, that was nationalized this year by Venezuelan President Mr Hugo Chávez.

The agreement is to be initialed Tuesday in Caracas and would put an end to months of negotiations between the Venezuelan government and Argentinean industrial group Techint, which owns a majority stake in Ternium, one of the largest producers of steel in Latin America.

Initially, Mr Chávez offered to pay no more than USD 800 million for a 50 % stake in Sidor, the biggest steelmaker in the Caribbean, while Ternium asked USD 3.1 billion.

TEX reported that Japanese integrated steelmakers have negotiations under way on their rail exports to Australia for shipments in 2009. The negotiations concern rail supplies to Rio Tinto operating various iron ore projects in Western Australia.

Rio Tinto plans to expand its iron ore production from the present 170 million tonne per year to 420 million tonne per year in the Pilbara area of Western Australia. As a result, it finds it necessary to reinforce railway transport capacity, too, for its iron ore exports. In Queensland, meanwhile, new development plans for coal deposits are under way, which will necessitate installation of new railway capacity to complement the existing transportation infrastructure.

The Japanese steelmakers have active rail inquiries from Australia as massive rail supplies are required for railway capacity buildup relating to the new resources development projects in Western Australia and Queensland.

For their part, the Japanese steelmakers are considering offering Rio Tinto a base price plus an escalation when they negotiate rail exports with the Australian buyer for shipments in 2009. The price formula under consideration stems from what the Japanese steelmakers assume as a policy to forestall an advance in the prices of their raw materials imports for fiscal 2009.

Besides, Rio Tinto will be able to secure what the company needs by an early settlement of price terms on its rail imports from Japan for shipments in 2009, believe Japanese steel industry sources.

Rail exports out of Japan to Australia totaled 18,847 tonnes in 2007. It is considered certain that Japanese rail exports to Australia in 2009 will go far beyond what turned out in 2007. Still, the Japanese steelmakers admit that their rail production capacity is limited.

In this connection, the Japanese steelmakers face a considerable decrease in their deals of rail exports to North America for 2008 as compared with negotiated levels in the year before. But until now, the Japanese steelmakers have responded with alternative rail exports by negotiations to resource rich nations such as Brazil.

(Sourced from TEX Report Ltd)

American Iron & Steel Industries reported that in the week ending August 16th 2008, US’s raw steel production was 2.16 million tons while the capability utilization rate was 90.8%. Production was 2.075 million tons in the week ending August 16th 2007, while the capability utilization then was 87.7%. The current week production represents a 4.5% YoY increase from the same period in 2007.

Production for the week ending August 16th 2008 is up by 1.2% WoW from the previous week ending August 9th 2008 when production was 2.14 million tons and the rate of capability utilization was 89.8%.

Adjusted YTD production through August 16th 2008 was 69.26 million tons, at a capability utilization rate of 88.7%. That is a 2.6% YoY increase from the 67.56 million tons during the same period last year, when the capability utilization rate was 86.1%.

District wise production for the week ending August 16th 2008

1. Northeast Coast: 188
2. Pittsburgh/Youngstown: 203
3. Lake Erie: 93
4. Detroit: 100
5. Indiana/Chicago: 529
6. Midwest: 272
7. Southern: 684
8. Western: 98
(In thousands of net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Salzgitter Flachstahl GmbH has charged PSI with the implementation of a process control system for the SGA 4 continuous casting plant which is under construction. The new plant will make it possible to produce especially high quality steel slabs and provide new capacity for the production of thicker steel slabs.

The first cast for the new continuous casting plant is planned for the first quarter of 2010. The process control system will be based on the industry standard PSI metals, which has already been successfully employed by Salzgitter Flachstahl for the SGA 1, 2 and 3 lines. The process control of the continuous casting system forms the link between system control and the steel mill control system, which has also been delivered by PSI.

Proven functionalities for the system control, planning data administration, section planning, length optimization, material tracking and for including process control models will be taken from the existing systems and expanded by new functions for the production of varying thicknesses of slabs.

With Salzgitter Flachstahl GmbH, another long term reference customer has again selected the industry standard PSI metals. This underlines the leading position of PSI as a provider of complex process control solutions in its home market of Germany.

OneSteel Limited announced that the company had achieved earnings before interest, tax, depreciation and amortization excluding restructuring costs of USD 77 million and synergy benefits of USD 41 million associated with the integration of the Smorgon Steel businesses, of USD 767 million.

OneSteel said that its net operating profit after tax, excluding restructuring and other non recurring items was USD 315 million for the 12 months ended June 30th 2008 an increase of 59% from the USD 197.5 million reported for the previous financial year. Its statutory net profit after tax, including the impact of restructuring and other nonrecurring costs of USD 70.1 million was USD 244.9 million up by 18% from the USD 207 million reported last financial year.

Mr Geoff Plummer CEO of OneSteel said that “The strong performance at the EBITDA line is at the upper end of our market guidance of USD 710 million to USD 780 million, and is particularly pleasing given difficult market conditions during the year, particularly in the first half, while in the second half we experienced unprecedented increases in input costs.”

He said that “The result highlights the strength of OneSteel’s integrated business model with our major businesses demonstrating their ability to manage well in a volatile cost environment for raw materials, ferrous and non ferrous scrap and steel.”

Ms Janat Mukwaya tourism, trade & industry minister of Uganda said that the government would conduct a rigorous surveillance exercise to crack down the illegal exporters of scrap metal. She added that “Shipping companies and transporters are notified to avoid transporting metal scrap for export."

She said that "In the event of identifying any scrap consignment destined for export, the local leaders should inform the nearest Police station, Uganda Revenue Authority office to enable the arrest and prosecution of the law breakers. Unscrupulous people continue to export metal scrap in total disregard of the law.”

Ms Mukwaya said that the continued illegal export is responsible for the low production capacity of the local steel mills, which has strained industrial activity in the sector in addition to the illegal scrap export being partly responsible for the theft of power transmission lines.

It may be noted that already Kenya and Tanzania have agreed to suspend trade in metals in order to fight electrical and water equipment vandalism which has hit Uganda.

It is reported that pipes await installation inside a Chesapeake Energy well at Riverside Parkway and State Highway 360 in Grand Prairie. A consolidation of suppliers has led to a shortage of steel pipes, pushing prices up for oil and gas drillers.

Along the way, steel surface casing prevents contamination of fresh wa