Reuters reported that TATA Metaliks Ltd has obtained a licence to prospect for iron ore at a mine in the western state of Maharashtra.

Mr Harsh K Jha MD of TATA Metaliks on the sidelines of an industry seminar said that "We will start prospecting work in 2 to 3 months.”

He said that iron ore obtained from the mine would be used for its proposed steel unit in the southern state of Karnataka. He added that the pig iron maker has also been promised 700 acres of land in Karnataka for the project.

Mr Jha further said that the cost of developing the mine and setting up of the steel unit in the southern state was being worked out.

ET reported that the steel and commerce ministries are differing over public sector mining company NMDC’s request for a waiver of export duty on its long term iron ore export obligations.

The commerce department has prepared a Cabinet note stating there is no justification for a waiver on exports since international prices are high this year while the steel ministry supports NMDC’s request.

Commerce ministry officials told ET Australia, the major supplier of iron ore has hiked prices between 65% to 95%. This indicated the realization from sale of iron ore in the international market by India was also going to be high. An official said that “There is no logic behind giving NMDC a duty waiver. We have put our arguments in our Cabinet note. Now, the Cabinet has to take a decision on it.”

As per report, steel ministry is keen that NMDC should be exempted from 15% export duty and additional railway freight charges on exports to Japan and Korea under long term agreement.
Out of its total production of over 30 million tonne of iron ore, NMDC exports about 3.5 million tonne of high grade lumps and fines to Japan and Korea.

BS reported that the saying convert waste into wealth has been truly put into practice by Ruias promoted Essar Steel as it would to be the first Indian steel company to become a zero waste and environment friendly steel mill.

As per the report, Essar Steel's 4.6 million tonne per annum at Hazira generates 20% to 24% slag and less than 1% dust, both are waste products.

Mr Dilip Oommen CEO of Essar Steel said that "We have taken various measures to utilize plant waste effectively to achieve our goal of becoming a zero waste company. It is our endeavor to make the world class plant into a green plant."

Mr Oommen said that the company has developed technologies to use slag for manufacturing cement, vitrified steel and build roads and dust for making bricks mixing it with rice husk.

He added that "We intend to seek patent for these 2 technologies and give it to entrepreneurs who could use them for comemrcial purposes."

Mr Oommen said bricks, made out of the dust mixed with rice husk and other materials are 60% more stronger than the conventional bricks and sun dried and hence do not require to bake them. He added that "Using slag, we have already built a road which is under testing."

BL reported that the Kerala Small Industries Development Corporation has signed a MoU with Kolkata based SRMB Udyog Limited for marketing its products in the State.

Former Indian cricket captain Mr Kapil Dev attended the ceremony here on Monday as SRMB’s brand ambassador.

As per the MoU, corrosion-free TMT bars for concrete reinforcement manufactured by SRMB Udyog would be marketed through 140 outlets of SIDCO across Kerala.

Mr MM Abraham senior VP of SRMB said it hopes to achieve a turnover of INR 150 crore in Kerala in the next 12 months, ensuring for the State government of revenue of at least INR 6 million.

IANS reported that hundreds gathered outside the TATA Motors Nano plant at Singur in West Bengal Monday as protests demanding the return of 400 acres of farmland acquired for the small car project entered the second day, with Ms Mamata Banerjee refusing to compromise.

Ms Banerjee maintained that there would be no giving up on the demand for the return of the 400 acres of land which she insists was taken forcibly by the West Bengal government from unwilling farmers. She has refused to bend despite threats from the TATAs that they will be forced to move out of Singur, 40 kilometer from Kolkata, if the protests continue.

Mr Rajiv Mishra Hooghly District Superintendent of Police told IANS that the entire Durgapur Expressway was clogged. The indefinite siege has caused a huge traffic jam on the national highway passing through Singur, hampering the entry of vehicles into the state.

ET reported that Indian consumer and auto industry, which has been grappling with surging costs of this input, plans to hike prices of their end products to cover some costs.

As per report following firms plan hike

1. Videocon recently hiked prices by 5% to 8%, across models of refrigerators, washing machines and TVs. Videocon’s operating margins up by 480 basis points YoY to 20.5% in the June 2008 quarter.

2. Hero Honda has announced a fresh hike in prices ranging from INR 600 to INR 1,500 across its models in addition to a INR 850 price hike at the beginning of August 2008 for its 100 cc bikes. Hero Honda’s OPM grew by 130 basis points YoY to just under 12% in Q1 FY 2008.

3. Maruti Suzuki had hiked prices by around 2% in May.

BS reported that State run power company NTPC has approached the government for free access to external capital markets for raising debt of around INR 105,000 crore in order to become a 50,000 MW company by 2012.

As per the report, countries largest power producer NTPC wants to raise money in foreign as well as domestic currency without any ceiling. The ECB would include INR 60,300 crore in foreign currency and INR 45,200 crore in rupee term.

In the present scenario, the companies can raise up to USD 500 million per annum through ECBs under the automatic route for import of equipments. Apart from this an additional USD 250 million can be raised for the said purpose with the approval of RBI.

NTPC is pursuing this matter with the power minister to achieve its ultimate objective of becoming a 50,000 MW company by 2012 and a 75,000 MW company by 2017. For achieving these targets, the company is required to invest around INR 160,000 crore during the XI plan period.

Mr RS Sharma chairman & MD of NTPC in a letter written to Power Ministry said that "Government of India should recommend to the Reserve Bank of India for granting External Commercial Borrowings to meet both the rupee as well as foreign currency expenditure for subject packages."

BL reported that a lot of changes are now taking place in the Indian shipping sector. Companies which were not in shipping are now entering the business of operating ships and these include both private and public sector players. This is presumably because these companies would like to have better control over their cargo movement, particularly movement of raw materials.

Similarly, traditional shipping companies both in the private and public sector are foraying into non shipping activities such as ship building, terminal operations, dredging, etc. In fact, the performance report of one private shipping company shows that its earnings from non shipping businesses are more than that from shipping operations.

Another important development is that Indian shipping companies are now being allowed to flag their vessels outside the country which was not the case so far, although the permission from the appropriate authorities is being given on case by case basis. It means the Indian vessels flagged outside will enjoy freedom in many respects particularly in recruitment of crew.

It said that some of the international free registries have already initiated moves to open their offices here with at least one of them having made some headway in this regard.

BS reported that increased cost of manufacturing due to steep rise steel and oil prices globally, has forced the leading construction equipment manufacturer JCB to double its global sourcing from India.

JCB presently does around 15% of components and equipment sourcing from India for its worldwide plants and the same would cross 30% within this year.

Mr Matthew Taylor CEO of JCB group said this on Monday before rolling out the 75,000th JCB machine from India. He asserted that the advantage of low costs of manufacturing in India would make the country JCB's global sourcing hub.

Mr Vipin Sondhi MD of JCB India that "We have sufficient capacity to increase Indian sourcing. The country would soon develop as global sourcing hub for JCB."

It is reported that the Karnataka government has recently appointed Delhi Metro Rail Corporation as the consultant for the Phase II of Bangalore Metro Rail Corporation's metro rail project. The DMRC is expected to submit the detailed project report within 8 months.

Even as the route alignment will have to be decided by the consultant after going through various issues, the major route on Phase II will be between Peripheral Ring Road and Yelahanka with a changeover at MG Road Station.

The consultant will follow the Comprehensive Traffic and Transportation Plan for Bangalore prepared by RITES. The CTTP had recommended construction of 2 corridors, one between PRR and Yelahanka and the other between Indiranagar Metro Station and Whitefield Railway Station under Metro Phase II.

Under Phase II, an exclusive corridor will be built connecting PRR and Yelahanka. The existing singular north-south corridor will cater to the western parts of the city between Peenya and Kanakapura Road. The proposed corridor will cover Nagavara, Veerannapalya, Fraser Town and residential, commercial and IT industrial areas along Hosur Road. This corridor will have interchange with the airport metro to provide direct access from south and south-east Bangalore to the airport.

The CTTP among other things had also recommended extension of the north-south Corridor of Phase I up to Peripheral Ring Road from the RV Road Terminal and the east-west corridor up to Benniganahalli from Byappanahalli.

Project today reported that Southern Railway is planning to invest around INR 650 crore over the next 10 years in port connectivity projects at Chennai, Tuticorin, Mangalore, Ennore and Cochin.

As per the report, Southern Railway and Chennai Port are developing a master plan to redesign the rail yard inside the port. The Chennai port had already planned for a 15 kilometer elevated road corridor to improve rail connectivity.

Recently, 2 additional lines between Madras Beach and Attipattu a 19 kilometer stretch which connects the Chennai port were sanctioned by the railway to double the handling capacity in the next 10 years. Third line between Kurukkupet and Ennore is ready for commissioning and work is in progress on the line beyond Ennore. With the availability of 4 lines, the railway will be able to use the 2 lines exclusively for freight and the other 2 for passenger services.

The report added that the railway is also planning for a 88.3 kilometer new line at an estimated cost of around INR 445 crore to be developed under PPP model with Ennore Port bearing 50% of the cost.

In Cochin, a new 8.8 kilometer line funded by the Ministry of Shipping and being executed by the Rail Vikas Nigam will be laid from Idapalli station at Ernakulam-Trivandrum connecting Vallarpadam at an estimated cost of around INR 245 crore.

BS reported that Central Electricity Authority's clearance for setting up a 2,640 MW thermal power plant in the state, Punjab State Electricity Board has floated a special purpose vehicle to facilitate the development of the project.

A senior PSEB official said that "We have floated a SPV Gidderbaha Power Limited which will be a wholly owned company of PSEB."

He added that the Gidderbaha Power would ensure the acquisition of land, obtain clearances including environmental and forest and attain water and coal linkages, besides carrying out the bidding exercise for the project. He said that "We expect to spend INR 400 core INR 450 crore on the acquisition of the land for this project. He added that it has seeked the Coal Ministry's approval for coal linkage of 12.8 million tonnes per annum.

He said that proposed to be developed on build own operate basis through tariff bidding route, bids from global players would be invited next month. The project is expected to involve an investment of INR 13,200 crore.

Project today reported that the India government is working on a power import policy which is expected to be announced shortly.

As per report, the policy is expected to give Indian firms including private sector companies, a larger role in harnessing energy resources across the region. Issues such as the quantum of free power to be offered to the host country and the exposure to be taken by Indian developers and lenders are likely to figure in the policy.

The report added that the issue of tariff fixation and a mechanism for review of tariff are also expected to be addressed for inter country projects being pursued by India across Bhutan, Nepal and Myanmar. The policy will help the government to spell out the financial and technological assistance it can extend to these projects.

My Iris reported that India has set an ambition of achieving USD 660 billion merchandise exports by 2015 maintaining an annual growth rate of at least 23%.

According to a Commerce Ministry report, the growth optimism is based on the performance in the last 4 years which saw exports more than double from USD 63 billion in 2004 to USD 155 billion in 2007-08.

The report said that for the current year, the government has fixed a target of USD 200 billion and by 2010 exports are expected to cross USD 234 billion.

The ministry report that which has been sent to the 13th Finance Commission said that India is committed to achieving a 5% share in world trade by 2020.

The engineering units of Central Public Sector Enterprises under the Department of Heavy Industry achieved a turnover of more than INR 1902 crore against a target of INR 1862.51 crore during July 2008.

The turnover of Non Engineering Units for the month was INR 148.97 crore against a target of INR 140.93 crore, while the turnover of Consultancy or Contract Units was INR 130.46 crore against a target of INR 135.45 crore.

The CPSEs that achieved or exceeded their targets during the month were
1. Bharat Heavy Electricals Limited
2. Hindustan Photo Films Mfg Co Ltd
3. Heavy Engineering Corporation
4. Hindustan Newsprint Limited
5. Rajasthan Electronics & Instruments Limited
6. Sambar Salts Limited
7. Bharat Pumps & Compressors Limited
8. Tyre Corporation of India Limited
9. Bridge & Roof Company Limited
10. Nepa Limited.

It is reported that Mr TR Baalu Union Minister of Shipping, Road Transport and Highways, has approved a sum of INR 355.129 million for road improvement works in various districts in the state of Kerala under the Central Road Fund Scheme.

The ministry said that an amount of INR 144.712 million has been approved for Improvement of Areakode-Tirurkad Road in Malappuram district. It is the shortest route from Wynad district to Cochin and Palakkad. It bypasses Calicut City while traveling from North-South of Kerala saving travel time of atleast 90 minutes. Improvements to this road will give a boost to the business and tourism in this area. The proposed road will also provide access to the remote villages to Perinthalmanna, the nearest township of Tirurkad having a number of multi specialty hospitals.

The ministry said that an amount of INR 131.614 million has been approved for Improvement of Alapuzha-Kuravilangadu Road in Kottayam district. This road starts from Thanneermukkam junction in Alappuzha district and ends at Kuravilangad junction in Kottayam district. Five culverts in this road need to be extended as these are creating discomfort to the road users and also increasing the vehicle operating cost. This has to be corrected by providing a profile corrective course.

The ministry added that further an amount of INR 78.803 million has been approved for Improvement of Thalassery-Anjarakandy Road. in Kannur district. This road has a vital role in the economy of the locality since it imparts connectivity to the eastern parts of Karmur district to the nearest township like Kannur and Thalasseri and it accelerates the movements of the agricultural products and cash crops. Considering the importance of the road the improvement of this road is highly necessitated.

Project Today reported that Mumbai based Nova Oleochem is planning a fully integrated bio diesel project and three captive power plants in Gujarat, with an investment of INR 225 crore.

It proposes to produce 0.110 million liters per day of bio diesel and 7.5 MW of captive power of the three units of 2.5 MW each based on agri wastes. The bio diesel plant is set to commence production in three years, while power generation is likely to begin within one year from the date of land acquisition.

The proposed project will entail jetropha plantation in 10,000 hactare for which it has obtained in principal approval from the state government. It is all set to complete land acquisition in 3 to 4 months on which plantation will begin by the end of March 2009.

BlueScope Steel Limited announced the NZD 250 million sale of its New Zealand iron sands mining and export operation, the Taharoa Iron Sands Business, to Cheung Kong Infrastructure Holdings Limited.

The sale is expected to be completed by the fourth quarter of calendar 2008, and is subject to conditions including New Zealand Overseas Investment Office approval.

New Zealand Steel operates two iron sands mining operations, Taharoa and Waikato North Head, through its subsidiary, New Zealand Steel Mining Limited. The Taharoa mining operation is a purely export focused business, whilst Waikato North Head is integral to New Zealand Steel’s steel making operations at Glenbrook, and will remain with the company.

The Taharoa Iron Sands Business is a dedicated export business based 200 kilometer south of Auckland on the west coast of New Zealand’s North Island. The Taharoa Iron Sands Business mines and exports iron sand to steel producers in China and Japan. Currently it employs 40 full time staff and exports approximately 850,000 tonnes of iron sand per annum. In the year ended 30 June 2008, the Taharoa Iron Sands Business reported revenue of approximately NZD 53 million and EBITDA of approximately NZD16.7 million.

Mr Paul O'Malley CEO of BlueScope said that "The sale generates a strong financial return for BlueScope Steel and reflects the current high world demand for iron ore. We are pleased with the financial outcome from this transaction."

He added that "I commend the employees of Taharoa who have, over a number of years, run this very successful business. Their work has underpinned the significant value of the asset. I also commend the significant efforts of employees and management at New Zealand Steel in developing a successful business model and mine expansion strategy."

Merrill Lynch acted as financial advisor to BlueScope Steel on the sale and Chapman Tripp as its legal counsel.

New Zealand Steel is a wholly owned subsidiary of international steel company, BlueScope Steel Limited.

Brazilian Institute of Siderurgy announced that Brazilian raw steel output reached a total of 3.2 million tonnes in July 2008 up by 11.5% YoY.

IBS said that the output of laminated steel reached 2.2 million tonnes in July roughly the same volume as in July 2007 and the output of long laminated steel reached 974,200 tonnes up by 11.9% YoY.

The sales of laminated steel to the domestic market reached a record high of 2 million tonnes in July. Flat product sales grew by 7.8% YoY and long product sales went up by 32.3 % YoY.

Bloomberg reported that Salzgitter AG plans to raise flat-steel prices in the fourth quarter to reflect higher raw material and energy prices.

Salzgitter AG said that “Prices on all products made from the metal will gain by EUR 30 per tonne.”

It added that “Salzgitter was able to implement flat steel price increases in the third quarter.”

Mr Olaf Reinecke spokesman of Salzgitter AG said that it is sticking to its full year guidance of pretax profit of more than EUR 1 billion.

South African Competition Tribunal recently announced that it had approved the sale of vertically integrated assets by South African steel producer Highveld Steel & Vanadium.

Highveld Steel & Vanadium said that the disposal of vertically integrated assets Vanchem and its 50% stake in South Africa Japan Vanadium to Swiss firm Duferco Investment Partners would be effective from August 29th 2008.

As part of the deal, Duferco's subsidiary, Vanchem Vanadium Products, would acquire the Vanchem operations and Highveld Steel's stake in SAJV. It would also acquire 350 ordinary shares in the Mapochs mine, which produced titaniferous magnetite ore for Highveld Steel and ore fines for Vanchem.

However, the transfer of the Mapochs mine into Mapochs Mine for the purposes of facilitating the disposal of the asset remained subject to the conversion of the old order mining rights, which Highveld held in relation to the mine. Further, Mr Buyelwa Sonjica minister of minerals & energy had to consent for the transfer of the mine.

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008' is one the top sources of information available on steel making companies in India! 'Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

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Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
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You can order your copy to reports@steelguru.com

Vietnam News Agency reported that steel and cement demands have been weak, causing their prices to plummet. Steel and cement prices have plummeted in the last two weeks but, with demand becoming sluggish, manufacturers are struggling to sell their products.

Mr Nguyen Quoc Dai director of a private construction business in Ho Chi Minh City’s District 7 said that steel prices have fallen by VND 2 million to VND 2.5 million per tonne since the beginning of July 2008 to VND 18.2 million to VND 18.5 million. He added that “You can buy as many tons as you want and the producers will make free delivery.”

The Vietnam Steel Corporation, whose prices are already VND 500,000 a tonne lower than private and joint venture manufacturers, is offering a further cut of VND 300,000 to VND 340,000 for big buyers. In the early months of 2008, prices had doubled and home builders and building contractors faced a hard time.

Mr Nguyen Tien Nghi VP of Vietnam Steel Association said that “Constant rains hinder construction and also delay new projects. Steel demand is even weaker in the north and the average price there now stands at VND 17.5 million a tonne."

VSA figures show that its members sold 250,000 tonnes in July 2008, 16.5% MoM down from June 2008.

The cement market has also started to cool down, with August 2008 consumption in HCMC falling by 60% MoM. Mr Mai Anh Tai deputy director of Ha Tien 1 Cement Joint Stock Company said that producers and distributors have failed to achieve their sales targets.

Steel and cement producers are also offering special discounts to regular customers.

It is reported that Konecranes has acquired Danish port crane service company Aarhus Maskinfabrik A/S from Hydraulico Holding A/S of Hydraulico group, a manufacturer of hydraulic presses. The value of the acquisition was not disclosed.

Aarhus Maskinfabrik A/S offers a wide range of services for modernization, service, repair and maintenance of port cranes. It also offers spare parts and special crane products such as grabs, lifting devices for special purposes and electronic overload equipment.

Mr Kari Akman area director of Nordic at Konecranes said that "The good reputation of Aarhus Maskinfabrik and their large customer base are important for us. Through this acquisition we are able to serve our customers in the area even better."

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Report Summary:
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2. Format PDF File (Delivery by Email on receipt of payment)
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The preliminary data show that overall steel imports in June 2008 increased by 6.95% MoM from May 2008. The change in June’s total amount of steel imports was due to a relatively large increase in some goods, such as blooms, billets and slabs (34%), wire rods (58%) and standard pipe (47%). There was a significant decrease in galvanized hot dipped sheets and strip (-38%). Stainless imports decreased slightly (-4.78%), due to decreases in each individual stainless product. June 2008 imports of steel mill products were down 12.28 percent compared to June 2007.

C&A – Carbon and alloys
S - Steel
Source: SIMA

It is reported that a lack of export buying in tandem with slower melting schedules at domestic mills have combined to exert downward pricing pressure in the ferrous scrap market in US.

Processors and shippers began reporting in early August 2008 that US domestic mills were cutting back on orders, with many steel mills taking maintenance shut down time in August.

The skid in domestic demand was coupled with a slump in export demand as well, with many Turkish buyers having taken the summer off. Much of China’s metals industry also spent August in the snooze mode, especially in the northern part of the country so as not to contribute particulates into the air during the Olympics in Beijing. The combination of factors led to domestic scrap prices losing as much as USD 62 in value in August 2008 as compared to the month before.

Figures compiled by Management Science Associates for its Raw Material Data Aggregation Service showed shredded scrap being purchased for an average of USD 55 per ton less on the spot market in August 2008.

The Prompt Industrial Composite grade tracked by RMDAS lost less in average value in most regions, and those grades even fetched USD 10 per tonne more in August 2008 in the South region. Nationally, mills paid an average of USD 21 per ton less for the prompt grades.

The Raw Material Data Aggregation Service ferrous scrap price index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.

South Wales Evening Post reported that latest speculation over the future of UK based Port Talbot steel works has been dismissed as just that speculation.

Industry analysts raised doubts over the plant's future after owner TATA Steel announced plans to double its return on invested capital in the next 5 years. Some observers believe that could put Port Talbot in a vulnerable position.

But the workforce said that such speculation is unfounded and believes TATA sees the Port Talbot plant as one of its strengths.

Speculation as to its future was prompted by a statement by Mr Jean Sebastien Jacques director of TATA Steel in the company's annual report. He said that "The group will pursue the optimization of its European assets, dispose and restructure assets that are of low profitability and pursue differentiation of products and services."

A Corus spokesman said that "TATA's plans have to be seen in the context of the normal portfolio program management that any large company carries out as routine. The portfolio doesn't just concern Corus."

A number of industry analysts have told industry magazine Metal Bulletin that they believe it likely that TATA will focus any of its restructuring efforts on Corus's Port Talbot works.

BNamericas quoted Mr João Carlos Ferraz director of Brazilian development bank BNDES as saying that investments in the Brazilian steel and mining sectors should more than double to over BRR 110 billion in the 2008 to 2011 period compared to 2003 to 2006 period. The figures equal nearly 25% of all investments in Brazil.

According to BNDES, investments in all industries are expected to equal BRR 447 billion through 2011. Investments in mining alone should jump to BRR 81.3 billion from BRR 38 billion as compared to the previous period. In 2003-06, the two sectors combined received a total of BRR 55.6 billion. The mining sector obtained a 16.4% growth rate whereas steelmaking increased 12.1%.

Mr Ferraz said that "The minerals industry in Brazil has a unique opportunity in its history to enter a cycle of long term development whereby companies can aim for leadership positions. The big challenge is to remain strong."

He also pointed out that Brazil has a private sector with abundant resources to invest in expansion.

Some of the goals for the Brazilian mining industry in 2010 are to remain among the world's top ore producers, and increase research and development spending to 0.68% of company revenues from the current 0.53%.

Mr Ferraz is also a strong supporter of the internationalization process of Brazilian companies. More specifically, he said that businesses should pursue more acquisitions of foreign assets and consolidation of companies.

He further added that "The mining sector today is very competitive with elevated cash generation, a solid production chain and expansion of exports. But constant investment in innovation is necessary to consolidate the new cycle."

Korea Times reported that STX Group has had its biggest ever first half sales thanks to strong performances by its two affiliates namely STX Shipbuilding and STX Pan Ocean. The group reaped KRW 13.2 trillion in sales for the first half of 2008 including contributions from its overseas operations.

Operating profit during the January to June 2008 period was KRW 990 billion, revenue was KRW 9.1 trillion, while operating profit was KRW 880 billion, up by 138% YoY.

Mr Lee Sung hee spokesman of STX Group said that "The group's two key flagships namely shipbuilding and shipping have lifted total sales." He added that the shipbuilding unit grabbed KRW 1.33 trillion in sales during the first half, while profit soared 29fold to reach KRW 77.4 billion. STX Pan Ocean realized KRW 4.22 trillion in sales.

STX Shipbuilding made a surprise move for Norway based Aker Yards in June 2008 fewer than 10 days after group chairman Mr Kang Duk soo said its existing holdings, worth USD 800 million, were enough. Mr Kang then didn't rule out a hunt for further stock sometime in the future. Simultaneously, STX Shipbuilding has also been in talks with the French government regarding the sale of a stake in Aker Yards France, in which STX has no direct holding.

Despite some leveling-off of dry bulk rates in the last month, STX Pan Ocean is confident that there will be resurgence in demand from China in the fourth quarter that will hold rates at their present high level through 2009. The group's shipping line expanded its fleet by 13 vessels, 9 bulk carriers, 2 tankers and 2 containerships, during the first half of the year. The company is currently in the market for two additional bulk carriers that it wants delivered in 2010 and 2011.

Analysts said that the property market in Thailand is likely to improve in the second half of 2008 as pressure from inflation and from oil & steel prices will ease while higher interest rates will not stop homebuyers from seeking loans.

Mr Vikrom Watcharakup director of Iron & Steel Institute of Thailand has forecasted a 10% drop in steel prices next month, partly due to a downward trend in oil prices.

He said that ''The trend of oil and steel prices is in the same direction. A 12.8% growth of steel consumption in the first half of 2008, mainly in construction, which makes up 60% of total consumption, speculating on a rise in prices by building their stocks."

In his view, though, the cooling of world steel prices since July 2008 should not deter developers and contractors from investigating new construction technologies like pre cast, prefabrication and pre engineering that could reduce the impact of volatile steel prices.

Mr Staporn Phettongkam secretary general of Siam City Cement Plc said that in contrast to the trend in oil and steel, cement prices are tending to rise as falling demand makes it difficult to achieve economy of scale in production. He added that ''The property sector needs to do market research, find alternative lower-cost materials, innovate in products and construction technology and find niche markets to succeed.''

Mr Atip Bijanonda president of the Thai Condominium Association said that oil prices in the second half of 2008 were likely to fall but that oil prices could continue to affect costs because contractors might not rely on the downward trend. He added that ''We are worried about higher construction costs and the lack of labor force for construction jobs as the workforce has shifted to agriculture.''

Taiwan's leading steel logistics provider Hsin Kuang Steel Company has registered TWD 1.303 billion in pretax earnings or TWD 4.92 in pretax earnings per share in the January to July 2008 period, up by 100% YoY from TWD 650 million a year earlier.

Despite the decline in sales, Hsin Kuang Steel still posted pretax earnings of TWD 90.77 million in July 2008 alone, up a whopping 43% MoM from the previous month. It is looking to the upcoming peak season in the fourth quarter of 2008.

Hsin Kuang posted TWD 756 million in sales in July 2008, down by 34.04% MoM from the previous month and hitting the lowest level since the beginning of 2008. It saw gross operating profit margin reach 18.55%, down from the previous month’s 23.8%. Gross operating profits reached TWD 140 million in July 2008, down by 35.5% MoM from TWD 262 million in June 2008. It attributed the sales decline in July 2008 to the slump in product prices in domestic distribution market which saw an increase of imported products. In addition, the domestic steel market was poised at an off peak season which conventionally falls in the third quarter of a year.

Hsin Kuang said at the end of the third quarter of 2008 that domestic steel market will recover its normal trading situation and turn to a peak season in the fourth quarter. It also believed the slump in steel prices domestically should be a temporary phenomenon and the trend for steel prices will rely on the wholesale prices set by China Steel Corporation.

Korea Trade Investment Promotion Agency recently announced that Vietnam has emerged as the 10th biggest export market of the Republic of Korea. In the first half of 2008, Republic of Korea's export turnover to Vietnam hit USD 4.5 billion, up by 78% YoY.

Accordingly, Vietnam’s rank among the Republic of Korea’s markets climbed to 10th from 13th in 2007, when Republic of Korea shipped USD 5.8 billion worth of goods to Vietnam.

Among the exports in the first half of 2008, petroleum products accounted for the largest part with 30%, as their exports reached USD 1.4 billion. Automobile exports represented USD 380 million or 8.4%. Textile and steel plate exports reached USD 270 million and USD 260 million respectively, accounting for around 6% each.

Meanwhile, Republic of Korea imported USD 1 billion worth of goods from Vietnam in the reviewed period, marking a trade surplus of USD 3.5 billion with Vietnam.

Arrow Energy has announced an AUD 37.2 million after tax profit for the full year ended June 30th 2008, a 109% YoY increase on the prior year. EBITDA was recorded at AUD 70.5 million, a 563% YoY increase on the prior year. Financial highlights are

1. Solid earnings growth pre tax profit of AUD 46.3 million
2. Margin increases secured through downstream investments in power generation
3. Robust reserves and production growth
4. Low operational costs sustained
5. Continued growth of activity in key Asian markets
6. Shell alliance to progress domestic and international development programs

Mr Nick Davies CEO & MD of Arrow Energy said that it had performed strongly throughout the 2008 fiscal year on the back of its strengthening production and sustained low operational costs. He added that “Arrow has achieved an EBITDA margin of AUD 4.33 per gigajoule up from AUD 1.03 per gigajoule a year ago. Much of this margin growth is due to our exposure to the downstream electricity market, through our throughput ownership of the Daandine and Townsville Power Stations, where prices have been very strong.”

Arrow’s emergence as a major Australian integrated energy player was hastened by the company’s acquisition of Enertrade from the Queensland Government in December last year which included the rights to dispatch power from the 230 MW Yabulu Power Station in Townsville.

Arrow has a 50:50 partnership agreement with ERM Power to jointly develop the 450 MW Braemar 2 power station near Dalby. Due for completion early in 2009, the project will be supplied with coal seam gas from Arrow’s nearby fields and bring the company’s total net electricity generation capacity to 370 MW.

Mr Davies said that “Arrow’s investment in the Braemar 2 Power Station continues its stated and well defined strategy of downstream investment to enhance margins on its gas sales.”

Arrow also has a 10% stake in Liquefied Natural Gas Limited with an option to take a 20% interest in the company’s proposed LNG plant in Gladstone. Arrow is to provide up to 90 petajoules of gas per annum to the LNG plant at prices linked to the final realized LNG off take prices. A site has been secured at Fisherman’s Landing in the Port of Gladstone and the project is on track to make its first delivery in 2011.

It is reported that Konecranes has launched the wXN electric chain hoist for wind turbine applications. The compact unit is mounted to a jib crane within the nacelle of the turbine.

With a standard lifting capacity from 1/8 to 1 US ton and optional higher capacities, the wXN offers performance enhancing features such as a suspended hook, standard two speed hoisting, epoxy painted protection and efficient heat dissipation through its ribbed design.

Cronimet Holding GmbH has announced that Mr Kai Lohmann will step in as MD of Cronimet Ferrolegierungen Handelsgesellschaft mbH with effect from September 1st 2008.

In the future Mr Lohmann will be responsible for business and trade.

It is reported that Akros, a French company that manufactures of balers and shears for the processing of metals and scrap metal, has acquired the German company Henschel Recycling Technik. With the acquisition Henschel will go as Akros Henschel.

The deal will allow Akros to strengthen its developing by extending both its product line as well as its international network of business.

United Recyclers Group has released a training tool designed to promote understanding of the modern automotive recycling industry. Prepared by the URG Advisory Group, a collection of almost 25 experts representing all aspects of automotive recycling, information providers, auto insurance, and collision and repair industries, the comprehensive presentation is aimed at a number of audiences.

Mr Michelle Alexander executive director of URG said that "The launch of this training tool is another major achievement for URG. It fills a crucial need, and we expect it to be used extensively by recyclers as well as others in the collision and repair and insurance industries. The automotive recycling industry is changing dramatically, and it’s important for everyone to understand who we are today. Automotive recycling is green, it is sustainable, and it is very cost effective. Our quality is top notch, and the use of our original equipment recycled parts means the insurance industry, body shops and the end customer all need to know that they are getting best in class when they buy recycled. This presentation does that, and more."

Mr Alexander said that "What we are really trying to do with this presentation is get everyone up to date. Most people still conjure up an image of the old-fashioned junkyard when they hear about automotive recycling. It’s important to change that misperception, and understand that our industry is green, lean, and sustainable. The URG Advisory Group has worked hard to produce an outstanding training tool, and we invite anyone interested to contact us for a copy."

Meanwhile, Ms Mary Lou Silveira director of sales & marketing for Greenleaf Auto Recyclers and URG Advisory Group member said that consolidated recyclers are on board too. She added that "This training tool is a great first step in bringing the recycling industry together to continue to develop the best practices and standards our industry can use to drive awareness in the collision and mechanical repair markets. I predict it is going to be used widely."

JMB reported that Osaka based alum