The unaudited financial results of Steel Authority of India Limited for July to September of 2008-09, were taken on record by the company's board of directors.

Highlights
1. Best ever Q2 turnover of INR 13544 crore, 31 % YoY growth
2. Highest ever PBT of INR 3067 crore, 19% YoY growth
3. Highest ever Q2 net profit of INR 2,009.6 crore up by 18.2% YoY.
4. 33% higher value added steel production
5. Best ever Q2 techno economics

The SAIL plants together produced in Q2 a record volume of 3.8 million tonnes of hot metal, 3.5 million tonnes of crude steel and 1.14 million tonnes of value added/special steel products, higher than CPLY by 7%, 5% and 33%, respectively.

Further improvement in key techno-economic parameters also continued, with reduction of 3% in coke rate and 7% in specific energy consumption during July-September '08. Blast furnace productivity was 5% higher than CPLY. Production through the energy-efficient continuous casting route at 2.3 million tonnes was 8% higher than CPLY.

Q2 sales of value-added products were substantially higher than CPLY like heavy structurals by 123%, pipes by 54%, TMT rounds by 29%, plates by 10% and tinplates by 14%.

The Financial Express reported that Rashtriya Ispat Nigam Limited, the flagship company of Visakhapatnam Steel Plant which is facing shortage of iron ore and coking coal mines has requested the government to help the industry by imposing 15% import duty on all iron and steel items.

A release said that besides the industry has sought restoration of CVD on rebars and structural steel imports, removal of export duty, reinstate export benefits and reduce central excise duty from 14% to 8%.

The Telegraph reported that around 5,000 villagers recently gheraoed Kamdara block officials against the state government’s move to allocate land for an ArcelorMittal project, the latest in a series of protests against land for industrial use.

As per report, the gathering was a reaction to an October 4th notice issued by the local revenue circle office informing those residing in 10 villages of the area about the state’s move to allocate gair mazurua or government, land to ArcelorMittal that is coming up with a 12 million tonnes steel plant and a 1,500 MW power project with an investment of over INR 40,000 crore. Today was the last date for the villagers to record their opinions and objections to the move.

Ms Dayamani Barla social activist who is at the forefront of the campaign against the company’s bid to acquire land in the area said that “A majority of the government plots in question are settled in favour of villagers since ages. They either enjoy khutkatti rights or were allotted land under Bhudan. Many plots are in name of villagers in government records too wherein they enjoy mutation rights and pay annual land revenue.”

Ms Barla said that it was apparent the government acted in haste under pressure from ArcelorMittal as the people were totally against the project. Eyewitnesses said that the villagers, armed with traditional weapons like bows and arrows, began arriving in huge groups from the morning under the banner of Adivasi Moolvasi Ashtitva Raksha Manch at Kamdara block in Gumla district. They laid siege to the block headquarters from 11.30 pm to 4.30 pm and both BDO Mr Dilip Tirkey and circle officer Mr C Murmu were confined to their chambers during the time.

The report added that this protest sets the clock back on progress made days ago when a group of around 200 villagers agreed to meet officials of the government and ArcelorMittal to discuss what was on offer after a series of meetings held there at the behest of Ms Shushila Kerketta MP of Khunti.

It is reported that Hindustan Zinc engaged in mining and refining ore to produce non ferrous metals zinc lead and silver disclosed a sharp drop in standalone net profit for the quarter ended September 2008.

During the quarter, the profit of the company declined 16.42% to INR 9,595.10 million from INR 11,480 million in the same quarter previous year. Net sales declined 9.76% to INR 17,905 million, while total income for the quarter down by 7.37% to INR 19,711.80 million, when compared with the prior year period.

The company reported earnings of INR 22.70 a share during the quarter, registering 16.42% decline over prior year period. The analysts at Bloomberg had estimated the earnings to be at INR 18.78 a share for the quarter ended September 2008.

(In INR million)

Sales during the quarter were augmented by the sale of 97,000 dry metric tonnes of zinc and lead concentrate.

The positive impact of the higher metal volumes and the depreciation of the Indian rupee in Q2 was more than offset by the sharp decline in the zinc LME prices. During the quarter, the average zinc LME price was USD 1,773 a tonnes as compared with USD 3,238 a tonnes in the corresponding prior quarter.

During Q2, the company was able to achieve significant reduction in the operating cost on the back of increased volumes improved operational efficiencies and higher by product credits.

It is reported that Adhunik Power and Natural Resources Limited a part of the Adhunik Metaliks group of companies has signed a MoU with Bihar State Electricity Board for setting up a 1000 MW power plant in the state.

As per official sources, Adhunik Power is setting up a 1000 MW thermal power plant based on coal as primary fuel which is expected to be commissioned by June 2011.

Adhunik Power plans to fulfill coal requirement for the power project through Ganeshpur, Jharkhand captive coal block of 65 million tonnes which has been allotted to the company.

The report added that in the near future, the group plans to expand with similar projects in other states as well.

The Telegraph reported that a long standing dispute between the state government and TATA Steel over the cess on water from Subernarekha and Kharkai basin in Jamshedpur seems to have reached an amicable solution with the steel major agreeing to pay INR 40 crore.

Till August 2008, the state government’s claim stood at INR 135 crore. The amount has been outstanding since 1992, when the Irrigation Act came into force, prescribing water charges from industries.

DK Tiwary secretary of state water resources department said that “TATA Steel has agreed to pay INR 40 crore. The amount is pending against the company as outstanding arrears for water it uses for industrial and other purposes from Subernarekha and Kharkai basin in Jamshedpur and its adjoining areas. The long standing dispute between both the parties will now come to an end.”

The decision was taken at a high level meeting chaired by Mr AK Basu state chief secretary. The meeting was attended by Mr Tiwary industry secretary and acting engineer in chief, water resources department, Mr Ranjit Prasad. Mr Partho Sengupta vice president represented TATA Steel at the meeting.

An official source in the water resources department said that they bill against 75 million gallon per day from the TATAs. He said that “But the actual consumption is not below 225 million gallon per day. We charge much less. Moreover the existing rate of water for industrial use is only INR 4.50 per thousand gallons, which is abysmally low if compared to other states.”

As per report, TATA Steel pays about INR 3 crore per annum and as of now INR 46 crore has already been paid by the company, but the outstanding amount since November 1992 has now accumulated to INR 135 crore.

The matter is also pending in the Supreme Court, where the company has sought different charges for the water it uses for industrial and municipal purposes. The government has contended that its only duty was to provide water and not to see how the industry used it.

BS reported that more than 60% of India’s coal based power plants are running with less than a week’s consumption of coal, threatening to affect power availability at a time when India’s peak deficit is hovering at around 15%.

The Central Electricity Authority said in its latest report said that 50 out of 81 thermal power plants in India are having stocks less than 7 days of consumption in September, the latest period for which data are available. This is the highest number of plants having stocks below the critical level in recent times.

The CEA report cited non receipt of coal, inadequate linkage and higher generation as well as law and order problems as reasons for the current situation.

Mr Jairam Ramesh minister of State for Power said that “The situation is getting worse,” he added that referring to supply of coal to the power stations. In some cases stock level has gone down to even 2 to 3 days.

Currently India has 81 coal based thermal power stations which are largely fed by coal supplied by Coal India Limited and its subsidiaries. India is planning to add about 78,700 MW of power capacity in the current Plan period. A greater chunk of this capacity 50,570 MW or 64% is going to come from coal based thermal power stations.

However the coal ministry said that its allotting coal in excess of what was being asked. Mr Santosh Bagrodia minister of state for coal said that “We have given 101.6% of coal than what we committed to the Planning Commission. Whatever shortfall is there in availability of coal, it is due to non import of coal scheduled by the utilities. If they are not importing it, what can we do? adding that no power station in the country has lost production due to unavailability of coal.

However experts of the industry believe that this worsening situation of coal availability at thermal power stations might lead to serious concerns for the power industry in the future.

A capacity addition of 10,500 MW from wind power has been planned in the country during the 11th Plan period that 2007-2012. A total Wind Power capacity of 9522 MW has been installed in the country as on September 45th 2008 including 1663 MW during 2007-08.

This was stated by Mr Vilas Muttemwar the Minister of State for New and Renewable Energy in a reply to a question by Mr Naveen Jindal and Mr Narayan Chandra Borkataky in Lok Sabha.

The Government of India promotes setting up of commercial wind power projects through private sector investments in the country in potential locations. So far, North Eastern regions or States are not found to be having potential for setting up grid connected wind power projects. The Government provides incentives such as concessional import duty for wind electricity generator subsystems, excise duty exemption, 10 years tax holiday on power projects, benefit of accelerated depreciation, term loan from Indian Renewable Energy Development Agency.

This apart preferential tariff is being provided for wind power in the potential States. The Ministry, through its Centre for Wind Energy Technology, Chennai carry out wind resource assessment studies to identify more potential locations for harnessing wind energy including North Eastern regions.

Union Minister of Power, Mr Sushilkumar Shinde administered the Oath of Office and Secrecy to Dr VK Garg as chairman of Joint Electricity Regulatory Commission for Goa and Union Territories except Delhi.

Prior to his appointment in JERC, Dr Garg held the position of CMD of Power Finance Corporation Ltd. Having begun his career in Indian Economic Service in 1973, Dr Garg’s career spans a glorious 35 years encompassing the Ministry of Industry, Ministry of Finance, ONGC and Power Grid Corporation of India Ltd. He holds degrees in MBA, PhD Business Administration and MA Economics with specialization in Money and Public Finance.

Set up by the Government of India under the provisions of the Electricity Act 2003, JERC is responsible for determination of tariff, regulation of electricity purchase and procurement process of distribution licensees, facilitation of intra-state transmission and wheeling of electricity, issuance of licenses to transmission licensees, adjudication upon disputes, enforcement of standards with respect to quality, continuity and reliability of service by licensees etc.

Madras Aluminum Company announced that a substantial drop in its standalone net profit for the Q2 ended September 2008. During the quarter, the profit of the company declined 90.44% to INR 27.52 million from INR 287.80 million in the same quarter 2007.

Profitability for the quarter has been impacted mainly due to higher cost of imported cost and other inputs.

MALCO’s net sales for the quarter increased marginally 2.29% to INR 1,270.54 million while total income for the quarter increased 13.51% to INR 1,412.93 million when compared with the prior 2007. The company posted earnings of INR 0.24 a share during the quarter, registering 98.12% decline over prior year period.

(In INR million)

During the quarter, the operating margin of the company dropped to 3.40% compared with 26.95% in the previous year period. Interest cost decreased 90.28% to INR 4.13 million while depreciation cost increased 6.85% to INR 57.59 million over previous year period.

ddress a gathering at the inauguration of an International Seminar on that “Emerging Technologies & Strategies for Energy Management in Railways’, Mr Lalu Prasaid minister of Railways said that Indian Railways is the lifeline of the nation and pointed out that it is, therefore, necessary to run fast moving trains in view of ever increasing passenger and freight traffic. There is therefore need to increase the pace of electrification to meet the increase demand.

Mr Prasaid said that the hike in oil prices, it is a challenge to contain cost and make judicious use of energy in hauling trains. He added that the Navinagar Rail Electrical Company with the cooperation of NTPC will ensure adequate electricity supply to Railways at a low cost.

Mr Lalu Prasad said that energy accounts for 25% of working expenses on the Indian Railways out of which 15% is spent on diesel and 10% on electricity.

Currently 28% of route on Indian Railways is electrified which further needs to be expanded. He congratulated all electrical engineers for their contribution in containing prices of electricity for the last 5 years and improving bottom line of Railways to the extent of about INR 4000 crore per annum in gross profits of Railways. He said that EMUs and MEMUs which runs on electricity are becoming more and more popular among the people of both urban and non urban and there is a need to run these trains on more routes.

Mr Naran J Bhai Rathwa minister of State for Railways said that in each town the railway station should ideally be a place having modern and energy efficient equipments and concepts which will project the Railways as a leader and example to be followed by others in energy conservation.

Mr R Velu minister of State for Railways said that Railways should have a cautious approach in harnessing alternate & renewable energy sources by ensuring faster and cost effective techniques for commercial exploitation of these resources and evolve methods by which these technologies can be inducted quickly and on wider scale so that the benefits reach the common people quickly.

Mr KC Jena chairman of Railway Board said that the total electricity drawn by the Indian Railways is a very small fraction about 2.5% of the total energy generated in the country. He said that of the ordinary working expenses in a year about 25% is accounted for by fuel cost. Current prices about INR 8,000 crore are spent on diesel oil and INR 5,000 crore on electricity for traction. However it is the energy consumption on the non traction sector at about INR 1,000 crore per year today, which is to increase as we take up more and more amenities and facilities in our journey to become a world class railway and improve facilities and amenities for our users.

The seminar is spread over 7 sessions and will cover different aspects including energy challenges, concepts, products and technologies on board trains and at stations, energy conservation audits and addressing issues of climate change. Through dissemination of knowledge and discussions, the forum aims to forge recommendations for evolving strategies to hasten implementation of energy efficient technologies. About 500 delegates are participating in the 2 day seminar, organized by Institution of Railway Electrical Engineers. Mr Lalu Prasad also inaugurated an exhibition on “Conservation of Energy in Train Operation on the occasion.

Wind energy parks, which is commonly known as wind farm projects are set up as commercial projects with private sector investments. The Government provides partial financial support for setting up limited demonstration wind farm projects with the objective to open up potential areas for commercial development of wind power.

The achievement with target during the last 3 years is given below:

(In MW)

State wise targets are not fixed for wind power. State wise and year wise achievement during the last 3 years are given in Annexure.

This was stated by Mr Vilas Muttemwar the Minister of State for New and Renewable Energy in a reply to a question by Mr Anurag Singh Thakur in Lok Sabha. He further added that the electricity generated by the Wind turbines are fed into the State Electricity Grids and is metered by the concerned State Electricity Boards. The cumulative electricity generated from wind power projects up to March 31st 2008 is 45.82 billion units.

Patel Engineering recently announced that a consolidated net profit of INR 42.58 crore for the Q2 ended September 30th up by 19.84% YoY.

Patel Engineering Limited in a filing to the Bombay Stock Exchange said that the company had a consolidated net profit of INR 35.53 crore in the same quarter ended September 30th 2007. Its consolidated net sales of the company increased to INR 441.81 crore for the quarter under review from INR 338.77 crore in the year ago period.

For the 6 month ended September 30th 2008, Patel Engineering recorded a consolidated net profit of INR 77.57 crore against INR 62.57 crore in the year ago period up by 23.97%.

On the standalone basis, the company posted a net profit of INR 33.49 crore in the September quarter as against INR 32.44 crore during the same period last fiscal.

The report added that the standalone net income of the engineering firm increased to INR 309.18 crore in the Q2 of the current financial year from INR 235.77 crore over the same period previous fiscal.

My Iris reported that TATA Motors has asked 300 temporary employees at its Jamshedpur unit not to report for duty from October 20. Of them, 100 belong to the truck division and 200 to the engine division.

TATA Motors said that the decision had nothing to do with the current global economic meltdown and added that asking temporary staff to stay away was normal.

My Iris reported that Mr Harish Salve senior counsel of Reliance Industries announced that his client was ready to sell gas to Reliance Natural Resources on lines of NTPC contract.

Mr Salove while presenting his arguments in the long pending legal battle between RIL and RNRL, said that RIL’s draft contract with NTPC has the price of USD 2.34 per million metric British thermal unit for a 17 year period, subject to government approval.

NTPC contract recognizes the importance of government approval while RNRL is not willing to accept government approval clause in the RIL-RNRL gas sales purchase agreement.

As per report, the government has approved price of USD 4.2 per million metric British thermal unit for natural gas sold by RIL. However this price approval is without any prejudice to the RNRL and NTPC legal cases. Interestingly, NTPC has approached the government for buying gas from RIL at price of USD 2.34 per million metric British thermal unit but this has yet not been approved by the government. RNRL counsel had earlier argued that government approval was only required for valuation purpose only.

Mr Salve accused RNRL of not having a single letter from the bankers saying that they are not willing to lend money to RNRL for setting up power plant due to lack of firm commitment of gas from RIL. RNRL’s counsel had earlier argued that bankers are not willing to lend money due to lack of a firm gas supply arrangement with RIL.

NTPC is fighting a separate legal battle with RIL over its gas sales agreement. The court will resume hearing on Tuesday.

Project today reported that Brihanmumbai Municipal Corporation and the Mumbai Metropolitan Region Development Authority will join hands to undertake the redevelopment work of 12 bridges.

BMC has been given development work of the bridges situated on the Mithi river system upstream of the Kurla-Kalina Road. The 6 bridges under this stretch are: Kurla-Kalina Bridge, Krantinagar Bridge, Ashok Nagar Bridge, Bamandayapada Bridge, Pipeline Service Road Bridge and the Filterpada Bridge. Tenders for these bridges have been floated and consultants are soon to be appointed. MMRDA will fund the project which is estimated at INR 380 crore, while BMC will carry out the work.

MMRDA has also asked the civic body to take up the work on 5 bridges on the Mithi River and one on the Vakola nullah. The 6 bridges handed over to the BMC by MMRDA includes Mahim Causeway Bridge, Tansa Pipeline Bridge, Vaitarna Pipeline Bridge, Dharavi Bridge and CST Road Bridge. These bridges are all over the Mithi River. Apart from this, the list also includes Pipeline Bridge over Vakola nullah.

Consultants have been appointed for the design and drawing of these bridges and work is expected to start in December 2008. The FFC has also recommended widening of the Nehru Nagar nullah system which leads to the Mahul creek and the Deonar nullah system along with bridges on Ghatkopar-Mankhurd link road. Tendering procedure for these two stretches is expected to start soon.

Project Today reported that Lanco Infratech's subsidiary company Lanco Hills Technology Park will be demerged into two separate entities.

With the demerger of LHTPPL, SEZ business will be retained by the existing LHTPPL and the Non SEZ business will be demerged into separate company. The demerger which is subject to statutory approval will be effective from April 1st 2008.

Project Today reported that Toyofuji Shipping Co is planning to set up an exclusive car terminal in India. The company already had discussions with Chennai Port Trust officials for setting up the car terminal and is also likely to visit Ennore, Mumbai and or Tuticorin ports for the purpose.

As per report, Toyofuji is looking at an exclusive terminal by 2011 to handle all car makers' vehicle exports or import in India. This will include car terminal operations, marine transportation of vehicles, stevedoring and freight forwarding. The customers will include Toyota, Nissan and other auto makers.

According to Mr Murli Deora minister of Petroleum & Natural Gas, the present volatility in the global economy has also affected India and though the Government is trying its best to overcome the present difficult times, it is the duty of each one of us to use the hydrocarbon fuels prudently and in most efficient way.

Mr Deora said that unless we adopt such technologies which help us to increase fuel efficiency leading to conservation of the fuels, it would be enormously difficult for us to sustain this level of growth.

He said that for oil and gas sector, the present time is certainly both challenging and demanding. Our country has been witnessing a growth rate of over 8% over a period. This has led to increase in energy demand it cannot be sustained unless we adopt better technologies and rational approach in use of hydrocarbon fuels.

He added that the high crude oil prices in recent past particularly in the last two years have severely impacted national economy. Though, currently we have witnessed fall in prices of crude oil, the under-recoveries of the Public Sector Oil Marketing Companies are still very high due to weakening of rupee. As on date, the under recoveries of the Oil Marketing Companies on petrol, diesel, kerosene and LPG amongst to more than INR 1,50,000 crore. Out of this, the under recovery on diesel alone is approximately INR 1,00,000 crore.

Project Today reported that Gujarat Industries Power Company is planning to set up 2 more lignite based thermal power projects, each with 250 MW capacity with an investment of about INR 2,000 crore in Surat.

The power stations are likely to come up at a site close to the existing Surat Lignite Power Plant at Nani Naroli in Surat district. These power plants will take the company's total power generation capacity to 1,000 MW. GIPC is likely to take decide on whether to take the project under international competitive bidding or through negotiations within four months. The EPC contract for the expansion project is awarded to Bharat Heavy Electricals at a cost of INR 12 billion. The project is expected to be commissioned by 2009.

The project also includes development of a captive lignite mine located at Mangrol near Surat. The mine is designed to produce 2.4 million tonnes per annum of lignite.

Project Today reported that Sadbhav Engineering bagged an order worth INR 269 crore from Gujarat Industries Power Company for hiring heavy earth moving equipments with operators, maintenance staff & facilities for excavation work at Mangrol lignite mines.

As per report, Sadbhav has to carry out the work of removal of Over Burdon for total 44.40 million cubic meter and lignite extraction of 4.68 million tonnes per annum during a period of 7 years.

Project Today reported that Petronet LNG is planning mechanical expansion of its Dahej import terminal capacity to 10 million tonnes per annum by January 2009 and will see a 30% hike in the price of fuel, it gets from Qatar. The plant is likely to be commissioned end February 2009 with its new capacity.

Dahej terminal in Gujarat currently has a capacity to import 6.5 million tonnes per annum of LNG.

In January 2009, the company will also see a revision in price of LNG it imports from RasGas of Qatar on a long term contract.

According to the latest Metals Activity Report from US based Metals Service Center Institute, shipments of steel and aluminum products from US and Canadian metals service centers continued to decline in September 2008, but US inventories of the two metals actually rose slightly from year ago levels.

September shipments of steel products from US metals service centers totaled nearly 3.73 million tons, down by 7.6% YoY from September 2007. US shipments for January to September 2008 period totaled about 38.08 million tons, down by 5.4% YoY. At the end of September 2008, steel inventories totaled 10.66 million tons, up by 0.9%YoY and the current sales rate that represents a 2.9 month supply.

In Canada, steel shipments from metals service center in September 2008 totaled 534,100 tons, down by 10.6% YoY while, shipments for January to September 2008 period totaled about 5.36 million tons, down by 6.4% YoY. Canadian steel inventories at the end of September 2008 totaled about 1.45 million tons, down by 14.9% YoY and, at current shipping rates, sufficient for 2.7 months.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

SSAB announced that it has selected Mobilein Alabama, as the site for a new state of the art heat treating facility. In April 2008, SSAB announced it would increase its steel plate heat treating capacity in the United States. After an extensive review, Mobile was selected as the site for the new heat treating facility and other improvements.

The investment will increase the existing facility's quenched and tempered steel capacity from 100,000 tonnes to 400,000 tonnes and bring approximately 180 new jobs to the facility. The investment is part of the investment program which was announced in August 2008. Construction will commence in 2009 and production will begin in 2011.

The heat treatment facility will produce quenched and tempered steel plate which is used throughout the manufacturing and construction sectors in applications where properties such as strength, hardness and toughness are required beyond those available in commercial grades.

The USD 460 million investment program comprises a new quenching line, advanced finishing facilities, control and roll shifting technology for the rolling mill and a vacuum tank degasser. The investment is included in the investment program for the group that was announced in August.

Mr Olof Faxander CEO of SSAB said that “This reaffirms SSAB's focus on our value added quenched and tempered steel and our commitment to meet customers' growing demand for such products. SSAB will further develop its strong production base in the United States, both in Mobile and Montpelier, and we will continue to strengthen our strategy to be the global leader in high strength steel.”

Mr David Britten president of SSAB North American Division said that “This investment develops our market position in quenched and tempered steel. In addition, we would like to thank the many State officials, local officials and other stakeholders, in both Iowa and Alabama, who worked to support this investment.”

Nikkei English News, without citing anyone, reported that Nippon Steel Corp, JFE Steel Corp and other Japanese steelmakers will cut production for the first time in about three years because of a decline in demand.

Nikkei said that the industry saw orders decline in August after crude steel production had increased each month for the previous.

It is reported that both blast furnaces at ArcelorMittal's Cleveland operations are likely to be idled in the next week or two as the company responds to a drastic drop in orders.

Mr Mark Granakis president of Local 979 of United Steelworkers of America said that "That means we won't be making any iron, so we won't be making any steel."

He said that the length of the closure will depend on business, but should last at least through the end of the year. He added that "As of right now, we are going to keep everyone on a 40 hour workweek. Jobs for the 1,400 union employees will include maintenance and finishing work on existing inventory."

Mr Granakis said that voluntary layoffs will be offered to an undisclosed number of employees, probably by the end of the month. He added that "If you look at Wall Street and hear about the credit crunch, you'll see our customers are not getting credit. I don't think it's the end of the plant, but it is serious."

ArcelorMittal said last month that it was prepared to cut steel production worldwide by 15%.

Tokyo Steel Manufacturing announced that it has reduced the selling price by JPY 23,000 to JPY 35,000 per tonne for all items for distributors for November 2008 order.

The price cut is the widest ever and the cut is JPY 25,000 for hot rolled coil and JPY 35,000 for H beam, both of which decreases by total JPY 45,000 from the peak in August 2008 order.

Tokyo Steel expects the lower price could encourage domestic market to find the bottom while the lower price could prevent import from increasing.

AK Steel reported record quarterly net income of USD 188.3 million for the third quarter of 2008 as compared to net income of USD 108.4 million for the third quarter of 2007.

Net sales in the third quarter of 2008 were USD 2,157.6 million on shipments of 1,476,300 tonnes as compared to sales of USD 1,721.7 million on shipments of 1,603,000 tonnes for the year ago quarter. Its average selling price for the third quarter of 2008 was a record USD 1,462 per tonne and approximately 36% higher than the USD 1,074 per tonne average price realized in the third quarter of 2007.

The decrease in shipments from a year ago was primarily the result of lower shipments to automotive, appliance and construction markets, which were partially offset by higher shipments to service center markets. Selling prices were higher due to a richer shipment mix, higher contract and spot market pricing and increases in raw material and energy surcharges.

Third quarter 2008 operating profit was a record USD 309.6 million as compared to USD 163.5 million for the third quarter of 2007. The year over year operating profit improvement was primarily the result of higher selling prices, a richer product mix and solid cost controls.

Mr James L Wainscott chairman, president and CEO of AK Steel said that "AK Steel and its employees again posted record results, punctuated with per tonne operating profit above USD 200 for the first time in company history."

Mr Wainscott remarked added that "AK Steel has repeatedly demonstrated its ability to overcome adversity. We will draw upon that experience and our inherent manufacturing flexibility to navigate the bumpy economic road that lies ahead."

For the first nine months of 2008, AK Steel reported record net income of USD 434.6 million. Net income for the corresponding 2007 period was USD 281.0 million. Net income and earnings per share for the first nine months of 2008 exceeded the company's full year 2007 record net income and per share earnings.

Sales for the first nine months of 2008 were a record USD 6,185.6 million as compared to USD 5,311.1 million in the first nine months of 2007. Shipments for the first nine months of 2008 were 4,792,500 tonnes as compared to 4,910,600 tonnes for the first nine months of 2007.

Operating profit for the first nine months of 2008 was a record USD 717.2 million as compared to USD 470.9 million. This improvement was due primarily to higher selling prices, higher spot market shipments and lower retiree benefit costs.

AK Steel said that it expects shipments for the fourth quarter of 2008 to be approximately 1,400,000 tonnes. It expects its raw material and energy costs to be lower relative to the third quarter. AK Steel expects its fourth quarter 2008 average per tonne selling prices to be about 10% lower compared to the third quarter of 2008 and the company expects to generate an operating profit of approximately USD 100 per tonne.

It is reported that ArcelorMittal is planning to pay ROL 55 per share for a 64% stake in Comvex. The buyout offer will run from October 22nd 2008 to November 11th 2008. It already owns 36% in the Romanian operator through its subsidiary Expert Placement Services, which allows it to make an offer for the remaining shares.

ArcelorMittal also plans to offer ROL 155 million for buying the outstanding shares in Comvex SA, a Romanian Black Sea port operator, to reduce its handling and shipping costs.

Comvex is Romania's largest operator of cape size vessels, most commonly used to carry coal and iron ore. ArcelorMittal, which owns four steel plants in Romania, is Comvex's biggest client.

Brazilian Steel Institute said that Brazilian steelmakers produced 3.001 million tonnes of crude steel in September 2008, up by 5% YoY from 2.868 million tons in September 2007, on continued civil construction demand. Production of rolled steel products slipped slightly in September, falling 0.7% to 2.140 million tonnes from 2.155 million tons in the same month a year ago.

According to IBS, demand from civil construction continued to fuel a rise in output of long steel products in July 2008. Flat steel production, however, slipped for the seventh consecutive month despite strong performance from the Brazilian auto industry. Long steel output was 966.7 tonnes in September, a 10.3% YoY gain from September 2007. Meanwhile, flat steel production dropped 8.2% YoY to 1.173 million tonnes in September.

Steel production so far in 2008 has continued to build on the record year registered in 2007, when domestic demand surged on a government growth plan and an improving local economic climate. In addition, declines in local interest rates in 2007 expanded access to credit for such steel intensive goods as housing and autos. Growing inflation concerns, however, could curtail credit use going forward, the IBS said. The Brazilian Central Bank has raised its benchmark Selic base interest rate to 13.75% so far this year.

In 2007, Brazil produced a record 33.784 million tonnes of crude steel, up by 9.3% YoY from 30.901 million tonnes in 2006. The industry is set to top that figure in 2008, with the rolling 12 month production figure through September coming in at 35.606 million tonnes.

September domestic sales figures continued to rise at a double digit pace. Domestic steel sales climbed 9.6% to 1.966 million tonnes, up from 1.794 million tonnes in September 2007. Sales of high value rolled flat and long steel products surged in September, while semi finished products posted declines.

Domestic rolled steel sales jumped 10.3% YoY to 1.915 million tonnes, up from 1.736 million tonnes in the year ago period. In addition, sales of semi finished products such as slabs, blooms and billets rose 12.8% to 30,800 tonnes. September export sales rose slightly, primarily because of a jump in exports of semi finished steel products. Export sales increased by 0.8% to 780,500 tonnes in September.

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.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferro alloys, consumable suppliers, raw material sellers, equipment makers and others.

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This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order.

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• Company name -723 entries
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• Phone number-723 entries
• Fax number -590 entries
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Japan Iron & Steel Federation said that crude steel production in Japan in April to September 2008 period rose by 2.8% YoY to 61.5 million tonnes. Ordinary steel output grew by 2.4% YoY to 48.03 million tonnes, while specialty steel production increased by 4.6% YoY to 13.46 million tonnes.

Steel production was brisk in the first half of Japan's fiscal year despite a global economic slowdown. But steel demand is seen to fall in the second half, reflecting a slump in auto sales.

In September 2008 alone, Japan's crude steel output edged up 1.5% to 10.08 million tonnes, the second-highest level for the month since 1973.

Reuters quoted Mr Kim Marti sales director at the European steelmaker Grupo Celsa as saying that world finished steel consumption growth will slow to 3% this year from around 8% in the last few years.

Mr Marti said that "We expect world finished steel consumption to be around 1.2 billion tonnes in 2008 and that is 3% more than in 2007. It is slowing down compared to what we have seen in the previous years, around 8%."

Mr Marti said that a major driver of a sharp fall in steel prices was de stocking, a process that was coming to an end. He added that "The end of heavy de stocking will stop the price correction in a few weeks."

He also said that scrap prices, currently around USD 200 per tonne in Europe as compared to around USD 700 per tonne in July, were now close to their lows.

Vietnam News Agency quoted Mr Pham Chi Cuong chairman of Viet Nam Steel Association as saying that prices of steel products have continuously increased in the first six months of the year, reaching record highs by the end of June 2008. Since then, steel prices have dropped by 50%.

He added that despite the plunge, no new contracts have been signed as prices are expected to continue dropping. A large amount of steel ingots are sitting unsold in factories. Domestic steel consumption has also decreased. September was the fourth consecutive month where the quantity of steel sold was one third of what was sold in previous months.

Mr Cuong said that due to the plunge in steel consumption and world steel prices, domestic steel companies were forced to reduce their prices. Currently, the price stands at VND 14 to VND 15 million per tonne. The amount of unsold steel ingot and steel products sits now at nearly 900,000 tonnes, causing many difficulties for local steel enterprises.

He said that, to help the steel sector tackle difficulties, the ministry of finance has cut tax on steel ingot export from 20% to 10% and on October 6th 2008 to 5%.

It may be note that on September 14th 2008, the ministry of finance discussed with the ministry of industry & trade, VSA and representatives of some steel ingot producers VSA’s suggestion to reduce the export tax to 2%.

The finance ministry lowered the tax to 5% on October 6th 2008. But the decision has not addressed steel producers’ problems. Under the difficult situation of the steel market, VSA is asking the government to cut steel ingot export tax altogether. Even if the tax is cut, steel ingot producers will still suffer losses.

It is reported that Walia Steel Industry, built at a cost of more than ETB 350 million and three years of construction, is to be officially commissioned in the presence of high government officials and prominent business persons soon. The factory began production in August 2006.

An official from the ministry of works & urban development said that such metal industries will contribute highly to the over all development of the country. Currently, Kality and Abyssinia steel plants supply metal but with a construction boom in the country, the amount supplied to the domestic market does not meet demand.

The factory rests on 36,000 square meters in Ethiopia's Oromiya Region, Sebeta Awash Wereda around Alemgena town found 20 kilometers west from Addis Ababa.

Walia Steel Industry has capacity to produce 40,000 tonnes reinforcement bar and 36,000 tonnes of hollow section profile. After expansion planned to end at the beginning of 2009, production capacity will reach 50,000 tonnes of various types of sheet metal roof cover.

Walia supplies 50% of halo section metal for housing projects undertaken by the government. Currently the factory employs 300 workers. It is owned by Libo Sisay Joint Investment Plc, with Sisay Tesfaye is as major to shareholder Sisay is also owner of Best Plastic Industry.

BNamericas reported that the strike that broke out on October 17th 2008 on behalf of nearly 8,000 workers from service providers contracted by Venezuelan steelmaker Sidor has generated losses of roughly USD 8.5 million for the company.

A Sidor executive said that "We are trying to maintain order because the events that are unfolding are causing major losses for the company."

It may be noted that employees from providers contracted by Sidor began the strike to pressure the steelmaker to include them on its payroll. After the Venezuelan government nationalized Sidor, it promised to hire the external employees.

The contractors' strike coincides with protests by a civil association called the Steel Pioneers, which is seeking a 10% share in Sidor. The Steel Pioneers is a group of ex employees that united after being laid off when the company was privatized in 1997.

The executive further added that "They are requesting a stake of the shares or compensation for their large-scale dismissal and are threatening to take more drastic measures if they are ignored. We are experiencing utter chaos."