Statesman News Service reported that in order to ensure the price of steel does not shoot up, Indian government has made an appeal to keep the prices of steel stable and is considering measures to curb the export of iron ore.

Mr Jitin Prasada minister of state for steel while speaking at an interactive session on “Propelling faster growth of steel industry in India” organized by the Merchants' Chamber of Commerce said that "Although we will not interfere in the matter, the government will not allow prices of steel to shoot up and create inflation hurting the common man."

He informed that “Attempts are being made by the government to facilitate the smooth flow of raw materials to the steel producers by reducing the influence of middlemen in the process. Attempts will also be made to resolve the issue of transportation problem of raw materials.”

Mr Prasada pointed out that the price of steel had already shot up because of an increase in price in the international market and the price of raw materials like iron ore and coal has also gone up in recent times.

Steel Authority of India Limited’s IISCO Steel Plant has placed an order with SMS Demag for an X Melt® converter shop for the production of quality steel grades at the Burnpur location in the Indian federal state of West Bengal. The new steelworks is rated for an annual production of 2.6 million tonne of liquid steel. Commissioning of the complete steelworks is scheduled for the end of 2010.

The steelworks comprises three converters each with a tapping weight of 150 t, three stirring stations, two ladle furnaces, an RH-TOP vacuum recirculation degassing plant, the primary and secondary gas cleaning systems and a converter off-gas recovery system.

The order comprises the basic and detail engineering for all of the mechanical core components and the complete X-Pact® electrical equipment and automation package, the supply, erection, commissioning and commissioning supervision and the training of the operating personnel.

The BOF converters are equipped with the maintenance-free lamella suspension developed by SMS Demag, with bottom stirring systems for combined blowing and with the tilt drive systems manufactured in SMS Demag’s own workshop at Hilchenbach in Germany.

The supply scope further includes the oxygen blowing lance system, the additives supply and ladle rebricking areas and the railbound ladle transfer vehicles.

For the primary gas collection, use is made of the proven SMS Demag adjustable skirts for the recovery of the highest possible proportion of energy containing CO gas. SMS Demag is also supplying the waste-gas cooling system, the wet cleaners, the gas change-over and export stations, and a gas holder with a volumetric capacity of 50,000 Nm³ converter off-gas. With the aid of this technique, a volume of 200 million Nm³ converter off-gas per year can be used for replacing other fossil fuels for energy production. Not only the energy costs but also the output of CO2 can thus be reduced considerably.

Secondary gas cleaning is performed by means of easy-to-maintain ElectroStatic Precipitators which are rated for a capacity of over 1,870,000 Nm³ per hour. The X Pact® electrical and automation system is adapted to all of the mechanical components and, in addition to the technical control systems it includes the metallurgical process models for ensuring economical production and a high degree of steel quality.

Bloomberg reported that UK based supplier of steel structures Severfield-Rowen Plc plans to build India's biggest steel structures factory to counter project delays in its home market.

Mr Tom Haughey CEO of Severfield-Rowen Plc during a telephone interview said that it has taken on a partner for a major' joint venture to produce pre made steel towers for the booming Indian construction market.

Mr Haughey however declined to comment further on the project, which will be formally announced before year end.

Mr Haughey said that “He is targeting expansion in India because the outlook for UK demand is more uncertain.' British factories will be running at full speed into the middle of 2009 based on current orders, though there are signs of a slowdown in recent months. India, by contrast, plans to spend USD 500 billion to build roads, ports and bridges to lift annual growth to 10% from about 9% during the next five years.”

He said that “Our expansion plans are in India and on day one of its opening, our plant will be the biggest steel working factory in the country.”

After registering continuous fall of 1046 points for 21 days since August 4th 2008, long product prices seem to have stabilized for the time being.

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

Reuter reported that Indian steel firms have asked the government to increase an export duty on iron ore to 35% from 15% to slow exports and ensure supplies in the domestic market.

An industry official said that their profit margins have been squeezed by rising prices of raw materials such as iron ore and coke, as well as government pressure to hold prices to fight inflation. But local miners argue demand for Indian iron ore from the main buyer China has dropped sharply in the past six weeks as even the existing the duty, introduced in June, had made rival suppliers more attractive.

Mr DS Rawat secretary general of the Associated Chambers of Commerce and Industry of India, an industry body which has been lobbying for the steel sector said that “We have proposed an increase in the export duty on iron ore.”

Mr Rawat said that “We have given a written communication to the finance minister and commerce minister for urgently increasing the duty rate on iron ore exports from 15% to 35%.” He added that the proposal to hike the tax was handed over to government officials last week.

BL reported that Indian government is likely to go slow on the implementation of the Steel Products Quality Control Order 2007 issued by the Ministry of Consumer Affairs. Keeping in mind the difficulties it might cause to the small steel manufacturers the date of implementation has been extended from time to time.

Initially, the order would be made applicable only for manufacturers and consumers in the organized sector while the unorganized sector operating small steel making units could be kept out of the purview of the order to give them time to adjust to the new regime.

As per report, the standards for many steel items are yet to be finalized by the BIS which is also a reason for the government to go slow on the issue. Various associations of secondary steel producers have made presentations against the order stating that there are over 1,000 steel mills employing more than 100,000 people and these small units would run out of job if the order is implemented.

Mr PK Rastogi steel secretary told Business Line that “Though it is a matter with the Ministry of Consumer Affairs, the Government would like to go in a phased manner. Our Ministry can only recommend on this issue. Initially, it may be that only the manufacturers and consumers in the organized sector who may be asked to comply with the new quality standards. But the ultimate objective is to make all steel items in the country meet the required quality standards.”

The Steel Quality Control Order 2007 was issued by the Ministry of Consumer Affairs on November 12th 2007 and was scheduled to be operative from June 12th 2008. The order makes it mandatory that all steel products and items made of steel must be certified by the Bureau of Indian Standards. It also authorizes the respective district administration to ensure compliance. The order further stipulates that in case of non-compliance, such steel products would be treated as scrap steel.

It is reported that both scrap and pencil ingot prices have witnessed a decrease of INR 728 again on August 27th 2008.

Market prices at other important location have remain unchanged

It is reported that a new record in single day loading of iron ore pellets was set at Visakhapatnam Port on August 24th 2008.

According to a press release issued by the Visakhapatnam Port Trust, a total of 26,001 tonnes, with a gang-shift output of 2,167 tonnes of the pellets, was loaded on to the vessel MV Tai Hawk at West Quay 4.

This surpassed the 16,772 tonnes, with a gang shift output of 1,864 tonnes, loaded on to the vessel MV Annassa on December 1st 2007

The cargo was exported by Essar Steel Ltd. Bothra Shipping Pvt Ltd was the stevedore and Essar Logistics Ltd the steamer agent for the vessel.

Jaiprakash Associates Ltd has announced that the Board of Directors of the Company at its meeting held on August 27th 2008 have taken on record the Memorandums of Understanding signed by the Company recently.

The company has entered into an MOU with Government of Chhattisgarh for setting up a Cement Plant of 2 million tonne per annum Clinker Plant of 1.5 million tonne per annum & a Captive Power Plant of 25 MW in Chhattisgarh.

3 MOUs are signed with M P Trade and Investment Facilitation Corporation Ltd a Government of M P undertaking as follows :-

(i) For setting up an integrated Aluminum Complex and a captive thermal power plant in District Rewa.

(ii) For setting up of a Cement Plant of 3 million tonne per annum at Amarpatan in District Satna.

(iii) For setting up a Cement Plant of 2 million tonne per annum in District Satna.

According to a top official of the company, India's steel major TATA Steel spends about INR 200 crore annually for delivering its corporate social responsibilities in the country.

Mr B Muthuraman MD of TATA Steel said that ''Even a minimal effort by each corporate in the country could be a great support to the millions, who have been lagging behind.''

He added that “It should be the moral duty of every corporate to cooperate and participate in the country's health and educational program, which can solve many of the persisting social problems.”

Jawaharlal Nehru Port Trust authorities have set September 8th 2008 as the last date for submission of RfQs for the construction of a 330 meter berth to be located north of the present Nhava Sheva International Container Terminal.

The cost of constructing the berth is estimated at INR 600 crore and the construction work is expected to be completed within 2 years.

Meanwhile, JNPT's proposal for having a fourth terminal constructed on BOT basis is awaiting approval of the government.

Controls & Switchgear Group has announced the acquisition of the 50% stake held by its partner Gewiss SpA in Controls & Switchgear Gewiss India, its modular wiring devices, lighting and industrial electrical solutions division.

Controls & Switchgear Group will integrate Controls & Switchgear Gewiss India with the company's existing operations in power management products. The new entity will now be known as Controls & Switchgear Group Lighting & Wiring Accessories Private Limited.

Eicher Motor has given the following update on its JV with Volvo

With reference to the earlier announcement dated May 26th 2008 regarding the Company has signed the definitive agreements with AB Volvo, Sweden for formation of a JV Company through transfer of the existing Commercial Vehicle Business along with related Components and Design Services Business to a step down subsidiary of the Company.

For the aforesaid transaction, the approval of the shareholders was obtained through postal ballot on March 15th 2008, Eicher Motors Limited has now informed BSE that pursuant to receipt of all regulatory approvals, the closing under the definitive agreements referred above has occurred on August 22nd 2008 and consequently the Company have now transferred the CV Business to VECV, the JV Company with effect from July 1st 2008 by way of a "slump sale" on a 'going concern' basis.

It is reported that the board of ONGC on August 25th 2008 approved an investment of about INR 450 crore to enhance its exploration and production capabilities.

The company's board also took note of 3 new western onshore and one Krishna Godavari offshore discoveries notified to the Directorate General of Hydrocarbons. ONGC's exploratory well Linch 65, Jotana-Warosan ML Block in western onshore gave influx of oil and gas, while the South Kadi 144 well in Balasar PEL Block has been found to be oil bearing with gas

The ONGC board has also approved a major lay up repair of jack up Rig Sagar Ratna to refurbish the rig to international standards. The total cost of the project is INR 423.2 crore. This repair job will be carried out by Hindustan Shipyard at a cost of INR 353.57 crore, it adding that other charges include to and fro towing charges and allied services.

The board also gave its nod for hiring of consultancy for acquiring or constructing a FPSO on international competitive bidding basis. The expected cost for the consultancy will be approximately INR 26.88 crore. The new FPSO will be initially used to develop marginal fields in the Arabian Sea. The FPSO can also be deployed in extended testing and in early monetization of fields.

BS reported that Cairn India's Rajasthan fields will pump over 16% more oil at 175,000 barrels per day and will contribute over 1 to 5 of the country's current domestic oil output, when it commences production in second half of 2009.

Mr Rahul Dhir CEO of Cairn recently said that Cairn has submitted a revised development plan for Mangala oil field, largest in the Rajasthan block and has got investment approval for the second biggest field called Bhagyam.

Mr Dhir said that "This will allow us to reach an estimated sustainable plateau production rate of 175,000 billion per day from the 3 proven fields of Mangala, Bhagyam and Aishwariya up from the previous forecast of 150,000 billion per day." He added that the revised field development plan from Mangala envisages a 25% increase in peak production at 125,000 billion per day.

Mr Dhir said that the company has contracted 2 drilling rigs and development drilling would begin in the last quarter of 2008 calendar year.

He said that "The focus for us now has shifted to execution of the ground." He added that the company was on course to deliver first oil from Rajasthan in H2 of 2009. Together with enhanced oil recovery scheme, the Rajasthan block can sustain peak output of 175,000 billion per day for 10 years. A pipeline is being laid from Barmer district of Rajasthan to Gujarat coast for transporting the crude to refineries.

It is reported that East Coast Energy's 4,000 MW power plant at Kakarlapalle village in Srikakulam district of Andhra Pradesh is in a limbo due to its close proximity to a seasonal birds' resort.

The project is in 8 kilometer to 10 kilometer range from Thelineelapuram which attracts winged visitors from Russia, Germany, Cambodia, Thailand and Singapore. Forest Department officials and environmentalists fear that the fly ash and toxicants generated by the thermal plant will permanently damage fields and water bodies.

Besides, the Tekkali creek extending between Bhavanapadu, Meghavaram and Kakarapalli is a major feeding ground for the birds which depend on dead fish.

As per the report, all objections against the power plant location had been forwarded to the state level inspection assessment committee and the Bio-diversity Board has not yet given approval for the project.

It is reported that oil & Natural Gas Corporation which has drawn up an ambitious Assam renewal project package with an investment of INR 4,608 crore involving comprehensive replacement and expansion of equipment and facilities, drilling of hi tech wells and revamping of drilling rigs is likely to revise the investment.

The project has been divided in 3 parts and the bids that have been received are double the cost estimates of the company. It is learnt that, since the bids received are of INR 7,800 crore which is much higher than the total estimate of the company, it will try to justify to the board and the executive purchase committee that a revised estimate be sanctioned.

Hyderabad based Sairama Engineering Enterprises in consortium with Megha Engineering was the lowest bidder for the proposed Assam renewal project. It is learnt that price bids for Group A of the project were opened on August 12th 2008. Sairama was the lowest bidder, quoting INR 2,384 crore as compared to the ONGC's estimate of INR 2,000 crore. Punj Lloyd came second with a quotation of INR 4,700 crore, Larsen & Toubro in alliance with Indian Oiltanking came third with a quote of INR 5,100 crore.

Price bids for Group B and Group C were opened on August 14th 2008. Punj Lloyd was the lowest bidder for the group B with a price bid of INR 3,000 crore as compared to the ONGC's estimate of INR 1,500 crore. L&T also bid for this part with a bid of INR 3,200 crore.

For Group C, the bids of INR 2,495 crore were received from Punj Lloyd and INR 2,600 crore from L&T as against the ONGC's estimate of INR 1,050 crore. Surprisingly, Sairama's bids for Group B and C were not opened as the financial capability of the company were considered inadequate for the additional bids.

IFGL Refractories announced that it has set up facilities for manufacture of dental bone graft granuales and blocks at their unit situated near Rourkela. These products will be marketed by IFGL Bio Ceramics.

IFGL Refractories, the flagship company of the Mr SK Bajoria group, is engaged in the manufacture of special refractories and operating systems for the steel industry.

BL reported that port users in Kochi will soon able to receive uninterrupted, quality power supply once the 110 kV sub station is commissioned at Willingdon Island in 10 days’ time.

Mr N Ramachandran chairman of Koch port told Business Line that it had completely revamped the power supply infrastructure and upgraded the existing supply to 110 kV sub station by replacing all underground cables. Siemens India Ltd had carried out the work at a cost of INR 18 crore. The work has almost been complete and the trial process is on, he said.

He said that the project is expected to be commissioned in mid-September. Once it is ready, the present disruption in power supply due to poor infrastructure can be avoided.

The port, according to Mr Ramachandran is now spending huge amounts of money during power interruptions by running generators in order to keep the operations smooth. However, frequent switching over from regular power supply to generator had also created problems for cargo handling equipment and other electronic components because of the poor quality of electricity. Once the system is in place, he added, they would be able to provide good quality power to users, thereby enabling them to carry out smooth cargo handling operations in the entire port.

Sources in the port pointed out that there were a lot of instances when power interruptions had affected gadgets in the terminal due to voltage fluctuations. The technical problems at the gantry are also affecting departure of ships due to delay in completing unloading operations. Source added that once the port provides uninterrupted power supply, the problems at the gantry can be solved.

Project Today reported that the construction work on the Mangalore multi product SEZ in Udupi district of Karnataka is expected to commence by October 2008.

The company had acquired 1,171.8 acres of land for the project and acquisition for another 2131.11 acres is underway. For rehabilitation and resettlement colony, the company had already acquired 110 acres of land and another 410 acres of land will be acquired soon.

The company had got the Consents For Establishment from Karnataka State Pollution Control Board for the project. The Ministry of Commerce had issued notification for sector specific SEZ and the Ministry for Environment & Forest ad given its clearance for 1,800 acres of land. A total of 3,985 acres is required for the general purpose of the proposed multi product SEZ.

The proposed units coming in the MSEZ included an Aromatic Complex by ONGC Mangalore Petrochemicals, a strategic crude oil storage facility by Indian Strategic Petroleum Reserves and a MRPL refinery expansion unit. The SEZ will be commissioned by 2010-11.

Based on preliminary Census Bureau data, American Iron & Steel Institute reported that US imported a total of 2.842 million net tons of steel in July 2008, including 2.177 million net tons of finished steel, up by 4% MoM and 3% MoM.

Total and finished steel imports through the first 7 months of 2008 are down by 11% YoY and 13% YoY, respectively. However, the monthly average for finished steel imports in the May to July 2008 period is up by 1% QoQ. Total and finished steel imports on an annualized basis this year are down by 3% YoY and 4% YoY. On an annualized basis, total imports of steel in 2008 would be 32.2 million net tons.

Key products with large increases in July 2008 compared to the month before include:

1. Sheet & Strip, up by 36%
2. Reinforcing Bar, up by 30%
3. Oil Country Goods, up by 18%
4. Sheet & Strip Hot Dipped Galvanized, up by 14%
5. Plates in Coils, up by 14%

For the year to date in 2008, products with significant increases vs the same period in 2007 include

1. Oil Country Goods, up by 32%
2. Line Pipe, up by 14%

For July 2008, the largest volume of finished steel imports from offshore were

1. China 316,000 net tons, down by 14% MoM
2. South Korea 256,000 net tons, up by 53% MoM
3. Japan 149,000 net tons, up by 20% MoM
4. Germany 104,000 net tons, down by 11% MoM

Austrian steelmaker Voestalpine has posted better than expected first quarter operating profit and said that it expected to match the previous year's earnings in its full financial year.

Voestalpine said that its sales revenue rose by 68.5% to EUR 3,255 million. At EUR 575.6 million, the profit from operations before depreciation reached an all time high. Profit from operations went up by 42.5% YoY compared to the previous year to EUR 448.0 million. The profit after tax also went up by a quarter from EUR 242.1 million to EUR 304.6 million.

Mr Wolfgang Eder CEO of voestalpine AG said that “Anyone who has been following the reports in the international business media in recent months must have the impression that the world is on the brink of economic collapse. For the greater part of the global economy, however, rational examination results in a very different diagnosis, namely that after a number of years of unexpectedly dynamic growth, it’s back to business as usual in many regions of the world.”

Precision Castparts Corp has agreed to acquire Airdrome Holdings LLC, which consists of Airdrome Precision Components and AF Aerospace Ltd.

The acquisition of Airdrome for cash will be immediately accretive to earnings. Subject to regulatory approvals, the acquisition is expected to be completed in the third quarter of fiscal 2009, after which Airdrome's results will be reported as part of the Fastener Products segment.

APC, located at Long Beach in California, is a leading supplier of hydraulic and pneumatic fluid fittings primarily for airframe applications.

AFA, located at Rugby in England, manufactures a variety of machined components for aerospace applications, including fittings and other fluid conveyance products, ultra high tensile bolts, and machined details. Fluid fittings, manufactured in nickel, titanium and stainless steel alloys, are the critical connectors for hoses transporting fuel, hydraulic fluid, and pneumatic pressure throughout an aircraft.

Mr Mark Donegan chairman & CEO of Precision Castparts Corp said "The acquisition of Airdrome continues to expand and enhance our critical aerospace fastener product portfolio. APC provides an immediate entry into the fluid fittings market segment, while AFA nicely complements our UK fastener operations, TJ Brooks and SPS Aerostructures, both in product families and sales channels. Both of the Airdrome operations have significant growth opportunities, and we expect to realize operational synergies and benefits from economies of scale given our existing aerospace fastener facilities located near both APC and AFA."

Precision Castparts Corp is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets.

The Yonhap News agency reported that four companies have submitted their respective letters of intent to buy South Korea’s Daewoo Shipbuilding before the bid closing on Wednesday.

As per report, the mega sale has attracted offers from
1. POSCO
2. Hyundai Heavy Industries Co
3. GS Group
4. Hanwha Group

Daewoo Shipbuilding was taken over by creditors in 2000 after its parent, Daewoo Group, had gone bankrupt in 1999. State owned Korea Development Bank and a South Korean government agency put up for sale their combined 50.4% stake in Daewoo Shipbuilding last week. The deal, estimated to be worth from KRW 7 trillion to KRW 10 trillion won (USD 6.5 billion to USD 9.6 billion), would be the biggest acquisition in South Korea this year.

ArcelorMittal US cites scrap as reason for price rollback

Platts reported that ArcelorMittal USA rescinded a previously announced USD 40 per short ton base price increase for September hot rolled coil in response to a decrease in scrap surcharges by rival US producers for the same period.

As per report, ArcelorMittal's latest move left its HRC base spot price between USD 1,050 per short ton to USD 1,060 per short ton EXW Indiana.

Other major producers had announced September price hikes of USD 40 per short ton to reach USD 1,100 per short ton to USD 1,120 per short ton in mid July. Nucor opened its September spot-market order book in late July also up by USD 40, but from a higher starting level for HRC, to USD 1,160 per short ton EXW. Some Nucor mills were said to have lowered HRC base prices for September spot orders to USD 1,130 per short ton in mid August as the market weakened.

Reuters reported that Venezuela's President Mr Hugo Chavez said that talks with Ternium over the nationalization of its Sidor plant had run into problems even though the two sides had agreed a price.

Mr Chavez said the government did not accept Ternium demands for immediate payment or a conflict resolution agreement in talks for the takeover of Sidor.

He said that the "The representatives of Ternium Sidor are asking for something impossible. We will pay them at the rhythm that we can pay them."

The president did not reveal the agreed price, although Argentine media last week reported that Venezuela will pay USD 1.65 billion for the plant, which was privatized in 1997. The Argentine newspaper Clarin said Ternium would remain with a 10% stake under the deal.

Reuters reported that looming strike at ArcelorMittal's US operations could push steel prices for certain products higher and benefit rival steel makers like AK Steel, Nucor and US Steel.

Steel industry analyst Ms Michelle Applebaum said that "The logical winners would be AK Steel and Nucor. US Steel could also benefit now that it has sorted out its labor contract issues.”

Mr Charles Bradford of Soleil Bradford Research Inc said that a strike at ArcelorMittal's operations could also benefit Steel Dynamics along with the other three players. Mr Bradford believes that the price of steel plates could soar if ArcelorMittal's workers go on strike, as the company is a major player in that end market.

The United Steelworkers union, which represents 14,000 ArcelorMittal employees, has asked members to vote to authorize a strike on Wednesday, as it has been unable to reach an agreement on a new contract.

Nippon Steel Corporation finds itself in advanced stages of negotiations on its heavy plate exports at a yen denominated price of JPY 150,000 per tonne FOB to shipbuilding companies and construction machinery manufacturers in South Korea and China for shipments in the October to December 2008 quarter.

NSC claims to have concluded the negotiations with several customers by the first half of this week except Hyundai Heavy Industries Co. But NSC keeps mum about the names of those customers.

Indications are that it will take NSC a fairly long time to settle its negotiations with HHI because the two sides are widely divided on price. NSC finds it difficult to make a concession to HHI alone since the Japanese steelmaker has already concluded several export contracts of heavy plates at a yen denominated price of JPY 150,000 per tonne FOB for October to December 2008 shipments. As a result, NSC indicates a position to wait until the time is ripe for a settlement with HHI.

NSC's yen denominated offer of JPY 150,000 per tonne FOB this time is intended to get a price increase of JPY 35,000 per tonne on the price under contract with China's shipbuilding companies for July to September 2008 shipments and another price increase of JPY 55,000 per tonne on what is agreed with South Korea's shipbuilding companies for the corresponding shipments. It was forecast earlier that NSC would certainly face difficult negotiations with Chinese and Korean shipbuilding companies this time despite tight supply demand conditions for heavy plates in Asia and elsewhere.

NSC, though, has succeeded in concluding its heavy plate export negotiations with several customers earlier than expected for October to December 2008 shipments thanks to a depreciating yen to the US dollar. A price of JPY 150,000 per tonne FOB translates into USD 1,360 per tonne FOB at an exchange rate of USD 1 for JPY 110.

Until now, NSC's export prices of ship plates for South Korea have served as a benchmark of heavy plate transaction prices in Asia. Therefore, South Korea's shipbuilding companies are apprehensive that if they accept a price increase of JPY 55,000 per tonne for ship plate imports from NSC, it could bring a major price increase for ship plate imports from Chinese steelmakers, leading to domestic price increases of heavy plates by South Korea's integrated steelmaker Posco and electric steelmaker Dongkuk Steel Mill Co.

South Korea's ship plate demand usually totals 9,000,000 tonnes per year. On the supply side, POSCO covers 35% of what is required, Dongkuk Steel 20%, Chinese products 25% and Japanese products 20%. POSCO's present domestic price of heavy plates is settled at KRW 920,000 per tonne, a price that translates into JPY 97,000 per tonne.

Meanwhile, Dongkuk Steel's domestic price of heavy plates is linked to what the company pays for the procurement of slabs. In this connection, the world's slab export prices are forecast to come down for October to December 2008 shipments. As a result, there is speculation that Dongkuk Steel may keep its heavy plate price unchanged for Q4 shipments at home.

ThyssenKrupp has announced plans to sell its industrial services division in 2009.

ThyssenKrupp, in a statement said that the unit has annual sales of around EUR 1.7 billion and employs 23,000 people but it is the smallest unit in the group's services segment and has the smallest synergies with the core business.

Industrial services covers a range of activities that ThyssenKrupp performs for other groups, such as factory maintenance and assembly, repairs and protection against rust or other kinds of corrosion.

UK based MEPS said that World steel prices are currently at all time highs. Since August 2007, hot rolled coil average transaction values in North America have risen by almost USD 600 per tonne. EU prices have moved up by approximately USD 530 per tonne and Asian figures have advanced by more than USD 350 per tonne.

MEPS estimates that “The upturn in raw material prices for 2008 has been in the region of USD 350 per tonne. Using this figure, western flat products producers have recovered more than their increased costs. Reduced imports from Asia, coupled with restricted output by some steel manufacturers, have created shortages in the market. Consequently, local mills were able to push through considerable price improvements. This was despite weakening demand in the industrialized nations.”

MEPS said that “Long products values also recorded substantial advances in all regions. Escalating scrap costs helped to propel prices higher. Strong demand from the Middle East redirected significant volumes away from western markets as selling figures rocketed in many of the Gulf States. European and Asian companies looked to export to this growing market in order to boost order books. Consequently, local supplies were restricted. This aided the mills' efforts for price advances. US values, however, suffered from declining consumption in the residential building sector.”

MEPS added that “Transaction figures are expected to continue climbing in September due to higher raw material costs. However, we predict that the latest increases will signal the peak of the current cycle in western countries as reduced consumption negatively affects demand on the mills. Low construction activity is expected to result in continued cautious buying by service centers. They also fear being left with overpriced material when values begin to fall.”

MEPS said that “The weakening economies in the EU and North America will, almost certainly, result in reduced demand in the near term from the manufacturing and building industries. Credit constraints are also expected to limit purchases, particularly from smaller customers. Consequently, selling figures are forecast to soften towards the end of the year.”

MEPS added that “Moreover, the reference prices in the US used to calculate scrap surcharges are predicted to drop as they are currently not following market fundamentals. However, these are liable to be realigned early next year. This adjustment should result in steel price decreases from October onwards in this region. Seasonally lower consumption is likely to exacerbate these declines in the long products categories.”

MEPS said that “Further reductions are anticipated through the early part of 2009 as the mills are forecast to lower prices in an attempt to fill depleted order books. However, a substantial steel price collapse is not envisaged because exports from east to west are expected to remain restricted.”

Nippon Steel is planning to expand the consolidated investment to JPY 1.25 to JPY 1.3 trillion for 3 year through fiscal 2008 ending March 2009, which is JPY 400 to JPY 450 billion higher than original plan and 2 times of the value for 3 year through fiscal 2005.

Nippon Steel expands the capital expenditure at home and abroad to increase the high valued steel output. It is gaining from those investments including stronger alliance network and raw materials securing under the profit growth strategy.

Ms Maria Todorova spokesperson of Kremikovtzi told The Sofia Echo that, despite promises to restore gas supplies by the end of the day on August 25th 2008, it is yet to happen, as negotiations between state owned gas company Bulgargas and Bulgaria's biggest steel mill Kremikovtzi were still underway.

Ms Todorova said that the amount of gas that would eventually be supplied is also a subject of the talks. She did not specify a possible date for when negotiations could be concluded.

As previously reported by The Sofia Echo, Bulgargas has cut its gas supplies to the steel mill earlier this year, claiming it was owed millions of leva in unpaid debts.

Bulgargas supplies about 30 000 cubic meters a day to the steel mill, which is the minimum at which Kremikovtzi could operate. The ongoing negotiations are meant to secure the quantity Kremikovtzi needs to resume full operations.

Taiwan based China Steel Corporation has announced financial results for the three months ended June 30th 2008. It has posted revenue of TWD 66,970 million in April to June 2008 quarter up by 31.1% YoY as against TWD 51,071 million in April to June 2007 quarter.

Financial details during the period are as below

In million TWD

Siemens VAI Metals Technologies GmbH & Co has received a contract from the Austrian steel producer Voestalpine Stahl GmbH for the supply of a new single strand slab caster.

The order value for Siemens VAI is a two digit million euro figure. This will be the second slab caster project to be implemented for Siemens VAI. The new slab caster with a straight mold and a bow radius of 10 meters is scheduled for start up in September 2010. For the first time in a European steel works LiquiRob robot systems will be used on the casting platform. This will improve the safety of the operating personnel considerably.

As part of an ongoing modernization and steel capacity expansion campaign underway at Voestalpine Stahl to increase the annual steel output to approximately 6 million tonnes, Siemens VAI was awarded a project for the installation of a new slab caster.

The slab caster will be capable of casting a nominal 1.4 million tonnes of slabs per year. The slabs will be produced in thicknesses of 225mm, 285mm and 355mm and in widths from 740mm to 2,200mm. The casting bow radius will be ten meters and the metallurgical length approximately 35 meters. Roughly 70% of the cast slabs will be rolled to plates. Siemens VAI will supply the complete engineering and the equipment on a process turn key basis, including assembly engineering and supervision, Level 1 automation and Level 2 process optimization.

The caster will be equipped with a wide range of the latest features and technological packages to enable the company to meet the highest product quality demands in casting today, as well as to enable a flexible response to changing market requirements. This includes LevCon for improved automatic mold level control, MoldExpert for enhanced strand-break-out protection, SmartMold cassette type molds which allow worn copper plates to be quickly replaced, and DynaWidth for the dynamic and on-line adjustment of the mold width. Flexible and on-line adjustment of the mold-oscillation parameters will be achieved with DynaFlex. Furthermore, the remotely adjustable SmartBender and subsequent SmartSegment caster segments will be supplied, which, in combination with DynaGap automation, will enable the slab thickness to be quickly and fully automatically adjusted. ECO-Star Rollers, represented the latest development in Siemens VAI roller design for optimum strand support, will also be supplied.

The well proven Level 2 Dynacs secondary cooling model, capable of calculating the stand-temperature profile at any position along the strand, will define the optimum secondary cooling set points and the point of final strand solidification, depending on the casting speed and the steel grade. Improved internal strand homogeneity for the production of highest quality plates will be possible through the application of DynaGap SoftReduction technology which adjusts the roller taper in the area of final strand solidification in accordance with the Dynacs-calculated set points. The new 3-D Spray system will allow slabs cast at different widths to be uniformly and ideally cooled. With this solution the incidence and severity of corner cracks for a wide range of steel grades will be considerably reduced.

China Steel Corporation said that its board has elected Mr Chang Chia juch as new chairman of the company, replacing Mr Lin Wen yuan.

Mr Chang was earlier appointed by ministry of economic affairs as its representative to the board as replacement for Mr Lin.

Separately, China Steel's board approved a bond sale of up to TWD 10 billion. Proceeds from the debt, which will have maturity of 3 to 7 years, will be used for working capital.

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

Cia. Siderurgica Nacional SAannounced that a decision by a Rio de Janeiro court is preventing it from paying BRR 160 million in dividends on time. CSN said that the federal court in Rio is preventing the payments until a tax dispute is resolved.

CSN CFO said that “The company is questioning the payment of certain taxes. CSN was surprised' by the court ruling.”

The dividend payment of 20.8 centavos per share was announced August 14th 2008 and would have been payable yesterday.

Bloomberg reported that POSCO is trying to buy Daewoo Shipbuilding & Marine Engineering Co for its growth and will submit a bid to compete with Hyundai Heavy Industries Co.

Mr Choi Doo Jin a POSCO spokesman said that "We will do our best step by step to take over Daewoo Shipbuilding because we need Daewoo for future growth. We also have sufficient cash for the bid.''

He added that POSCO would benefit from the record order backlogs shipyards have, while a winning bid from Hyundai Heavy, would expand its size to 3 times the next biggest rival. An auction may drive up the price of the 50.4% stake in Daewoo to as much as KRW 7 trillion.

It may be noted that Korea Development Bank and Korea Asset Management Corporation are selling their stake in Daewoo Shipbuilding, and preliminary bids must be submitted by 3PM local time on August 27th 2008. They will pick a preferred bidder in October 2008 after a final bid is received next month.

'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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This report covers name and product details of 431 of Indian auto part makers in alphabetical as well as location wise order.

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• Company name -431 entries
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• Fax number -418 entries
• Email -403 entries

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According to report of Japanese Electric & Wire Makers' Association, Japanese electric wire makers' shipment increased by 1% YoY to 73,500 tonnes in copper volume in July 2008 from a year earlier.

As per report, the higher shipment for automobile and power companies covered drop for construction applications. The construction demand showed sign to hit bottom. Their optical fiber products shipment increased b