BS reported that TATA Steel is likely to start construction of its INR 15,400 crore, 6 million tonnes steel plant at Kalinga Nagar in Jajpur district of Orissa in 3 months.

The official said that “We are planning to start construction work at Kalinga Nagar site in the next 2 to 3 months. We have already received possession of 800 hectare of land out of 1,360 hectare required for the project and are expecting to get the remaining land in the next 2 months.”

In all, 1,216 hectare land has been registered in the company’s name and registration for the remaining 144 hectare will be completed in a couple of months.

Kalinga Nagar project which faced opposition from local tribals when it took possession of the land registered in its name will rehabilitate 1,200 families for setting up the plant. The official said that “Around 650 families have been rehabilitated by TATA under its rehabilitation program and others will be rehabilitated soon.”

He said that “The company has already placed orders worth INR 6,500 crore for equipment like blast furnace, steel melting shop and other civilian structures.” Though construction of the plant’s core structure is yet to start, the company has begun to set up a fabrication yard and material section near the plant site.

Local opposition to the plant has reduced substantially on the rehabilitation and a 40 member TATA team has been working with the local community to reach a consensus.

TATA Steel which signed a MoU with Orissa government in 2004 to set up the plant had aimed to start first phase of operations by 2008, but will miss the deadline because of a delay in land acquisition.

The fall in domestic prices of steel in India continued unabated last week without any respite. The overall steel index fell by 170 points:

IDSPI 8980 8810 -170
ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

The lowest values, after a continuous slide from August 5th 2008, are as under:

ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

Long products

Flat products

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

Input materials

Domestic prices for all kinds of input material declined severely

Melting scrap
80:20
HMS

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Alang

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Pencil ingot

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Pig Iron

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Sponge iron

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Long products
TMT
Fe 415
12mm

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

WRC
SWR14
5.5/6

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

ANGL
GR A
65x6

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

CHNL
GR A
75/100

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

JSTI
GR A
250x125

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Prices are expected to go down further as pencil ingot has weakened much more.

Flat products

HRC
Tube
2.5x1250

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

Patra

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

PLTS
GRA
8x1.5

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

PLTS
GRB
12-20x2.5

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

CR
DSK
0.63x1000

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

GC
100Gms
0.4

Change on October 10th is with respect to prices on October 3rd
Change is in INR per tonne

If you want to know the prevailing prices and changes across the week on daily basis, please subscribe to services of www.steelprices-india.com

Statesman News Service reported that Paradip police arrested Mr Abhay Sahu president of the Posco Pratirodh Sangram Samiti, while he was returning from Bhubaneswar.

The arrest triggered tension in Dhinkia and other villages which come under the proposed POSCO steel plant site. Five platoons of police has been deployed to ensure that no untoward incident takes place.

Police sources said there were as many as 30 cases against Mr Sahu who has been leading the anti POSCO movement for three years now. There have been innumerable instances of PPSS activists holding company representatives as hostages and the police conceding to their demands to secure safe release of the hostages.

Mr Sahu’s arrest is expected to trigger a fresh spate of violence in the area as the PPSS activists are likely to hit back at the government officials and perceived pro POSCO supporters.

While the arrest is likely to infuriate PPSS activists, it will also come as a major boost to harried POSCO officials and the government which can, after three years delay, hope for some progress on the project front.

Indian steel projects are at a critical juncture. The road from now is uncertain and will certainly be turbulent.

Indian SNRSR report on Indian steel projects is a product of high quality research by an internationally renowned expert. The report is more than information it is analysis of the projects, their merits and demerits, examination of the ground reality and prospects and assessment of the macro environment in which these projects stand. It is an attempt to guide the user to understand the present and work for the future. It is an independent study and the views are totally neutral.

“Indian steel projects were based on the assumption that external commercial credit will be available cheap and endlessly. The global financial crisis has literally closed this avenue. This will take its toll on the Indian steel projects. Delays and even abandonment are expected in many cases.”

“The domestic banks and the financial institutions will be the first ones to take fresh looks at funding the ambitions of the steel companies.”

“India’s steel dream looks to be fading away.’ This is how we started our last year’s steel report. With the added uncertainty, the industry’s plans are in total disarray. There are no questions on the opportunities this country has offered in steel. From all points of view, these have been strong and credible ones. There are mineral resources, manpower, technical skill and most of what we require to make steel, except high quality coking coal or sufficient energy. There could be many shortcomings assessed and evaluated by all those who have ventured into this industry. Yet, such shortcomings disappeared into the thin air as one measured them against the huge growth potential of the domestic market, the enormous resources of high quality iron ore the country has etc.”

Assessment of Other Important Brownfield and Greenfield Projects

This 115 page report with 35 tables, 12 charts, a number of annexure, three maps and an appendix looks at the steel industry’s future in India from a strategic point of view to guide the investors in the industry, capital goods industry, steel traders, raw materials suppliers and the policy makers in the government in their own individual planning for the future.

Report Summary:
1. Published: Sep 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 115

Price: USD 1100 or INR 50,000
(Note: You can Save USD 100 if you order before October 15th 2008)
(Additional Charges would be levied for delivery of file on a CD or in printed form)
You can order your copy to reports@steelguru.com

ET reported that core infrastructure industries logged a sluggish growth of 2.3% in August 2008 compared to 9.5% in the corresponding month of the 2007.

According to government data released, Electricity generation was the worst performer among the six sectors. The sector posted an abysmal growth of 0.8% in August 2008 against 9.2% in August 2007.

As per report, crude oil was the other poor performer, logging a growth of 1% in August 2008 against 6.5% in August 2007. The growth of this sector was negative during April to August 2008.

However coal production was a tad better with a growth of 5.9% in August 2008 against 8% in August 2007. Cement also grew at a sluggish pace of 1.9% in August 2008 compared to 16.9% in the corresponding month of the previous fiscal. The provisional growth in steel was also sluggish at 4.4% in August 2008 compared to 9.6% last August.

In the case of petroleum refinery, production growth during August 2008 was 2.5% sharply lower than the 8.2% recorded in August 2007.

For the April to August period also the 6 core sectors comprising crude oil, petroleum refinery products, coal, electricity, cement and finished steel showed a slower growth of 3.4% as against 7.1% in the corresponding period of the last financial year.

Experts feel the performance of core sector needs to be watched since exports are doing well, credit growth rate is robust and domestic consumption is showing no sign of let up.

BL reported that Cosma International has firmed up plans to set up a wholly owned subsidiary in Pune to make components for body parts.

Mr Klaus W Niemeyer GM of Cosma International while speaking to a group of Indian journalists on a tour organized by Magna to visit its facilities in Canada told that the key driver to set up a facility in Pune was the order bagged by Cosma Body Systems from a European car manufacturer that is setting up a plant in India.

He said that “The proposed facility will start with assembly operations of sheet metal stampings sourced from local vendors and supplied to customers. Over a period of time, it will start stamping operations and supplying body systems.”

He added that “In addition to the European customers, Cosma is in advanced level of talks with a few passenger car manufacturers in India. The vehicle manufacturers have evinced interest in sourcing structural components such as instrument panel beams, cradles, IT beams and cockpit panels.”

He said that one of the recent developments is a new method of manufacturing stampings out of pre painted sheet metal. The company is working on making lift gates and doors out of pre painted sheets.

Mr Ted Robertson CTO of Magna America said that the group is keen to capitalize on the Indian automotive industry’s traditional strength in metal works, especially castings, forgings and design activities. This will help the group to deliver products conforming to global standards of technology and quality with Indian pricing.

Cosma has its engineering services in Bangalore to support the Magna group’s global requirements. The centre is working on product development, energy management and analyzing newly developed components and modules in terms of design for manufacturing and assembly. This centre is connected with engineering centers in Ontario and Graz in Austria.

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 ILPPI, IFPPI and INDSPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

ILPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas IFPPI 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

Exim News Service reported that Mr TR Baalu Union Minister for Shipping, Road Transport and Highways has sought the revival of the shipbuilding subsidy scheme.

As per report the ministry is formulating a new modified subsidy scheme which would be circulated for comment from appraising agencies and ministries very soon.

Mr Baalu while addressing a Global Conference cum Exposition on Shipbuilding Industry organized by the Federation of Indian Chambers of Commerce and Industry and the Shipyards Association of India said that his ministry is making efforts to streamline the taxes and fiscal structure to offset the disadvantages being faced by the shipbuilding industry.

He said that though shipbuilding industry was at a nascent stage, India was ranked among the top shipbuilding nations in the world with a share of 1.2% in the global shipbuilding market.

Under the National Maritime Development Program, it was decided to set up 2 international size shipyards. A consultant is being appointed by the Mumbai Port Trust for the West Coast shipyard and several possibilities are being explored for the East Coast shipyard.

According to a study by the Associated Chambers of Commerce and Industry of India, Following a strong growth in the third and the fourth quarter of 2007 in terms of investments announcements, the domestic expansion plans saw a moderate decline of 29% in first quarter of FY 2008-09, in response to the continuing financial instability and uncertainty in the Indian economy.

The study named “India Inc Investing - A Mid Year Report 2008” adds that the third quarter of the previous fiscal saw an accelerated growth in the investment climate with a total investments pick up from INR 1,58,377 in August to September 2007-08 to INR 6,11,704 crore in the third quarter of the previous fiscal.

Mr Sajjan Jindal president of ASSOCHAM brushed aside the concerns of slowdown in the industrial growth for the period Jan-March 2008, and said that the capital expenditure announcements by the India Inc soared to a whopping INR 611,704 crore for the last quarter of FY 2007-08. However, the start of FY 2008-09 saw a drop of 28.19 per cent in the CAPEX plans from INR 611,704 crore in the last quarter of FY 2007-08 to INR 439,247 crore in the first quarter of the current fiscal.

With the start of the fiscal, the interest rates have been hiked four times by the Central bank in a move to combat against the inflationary pressures. The hikes have already sent signs of slowdown in economic growth coupled with higher capital.

It points out that out of the total investments announced during the first six months of the current fiscal, capital outlay ranging between INR 1,000 crore to INR 10,000 crore accounted for a major share of 33.50 per cent The announcements in this category were made by companies like Mesco Steel, Aditya Birla Retail, Essar Shippings Ports etc. Investment size pattern in January to June 2008