Steel Authority of India Limited’s Bhilai Steel Plant has reported 8.6% YoY production growth in hot metal, 7.8% YoY in crude steel and 6% YoY in saleable steel in the first half of 2008-09.

A BSP statement said that “'The hot metal, crude steel and saleable steel production in the first six months of 2008-09 has been 2,664,896 tonnes, 2,555,814 tonnes and 2,203,233 tonnes, respectively.”

BSP has made record production of all its finished products rails, plates, merchant products and wire rods. The release said that “Bhilai, the sole supplier of world-class rails to the Indian Railways, has produced 457,330 tonnes of finished rails in April to September 2008 period, registering a growth of 3.4% YoY. Total dispatches of saleable steel from Bhilai plant during first half have been 2,175,023 tonnes up by 6.8% YoY.”

BSP has also registered high growth in production of value added steel grades in all its finishing mills. It said that “The plant has recorded 42% YoY growth in production of HT plates, 26% YoY growth in EQ wire rods production, 82.6% YoY growth in production of wire rods and 43.1% YoY growth in production of TMT bars in the first half of this fiscal compared to the corresponding period last fiscal.”

The domestic steel prices in India yet again started falling in anticipation of price reduction by major producers to maintain parity with imports. The Long & Flat Product Price Index fell by 15 & 24 points respectively, whereas the steel price index fell by 19 points:

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

Long products

Flat products

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ET reported that Essar Steel is pumping in USD 160 million into its Canadian operations to ramp up production to 3.6 million tonnes per annum to feed demand in North America.

Mr Sandeep Dixit VP of Essar Steel Algoma said that the company would spend USD 160 million to further increase production by 1 million tonnes in the 12 months to March 31st 2009. He said that “Most of the capital expenditure will come from self generated cash.”

A chunk of the investment would go towards setting up a cogeneration power plant that would cut the steel plant's energy requirements by half. The captive power plant would use waste fuel from the steel plant to produce electricity and is expected to be commissioned by January 2009.

As per report, Algoma Steel, which was acquired by Essar Group last year and renamed Essar Steel Algoma, is firing on all cylinders after the USD 42.3 million revival of its second blast furnace. The furnace was brought back into operation on August 12th 2008 and has helped increase output from to 2.6 million tonnes from 2.1 million tonnes.

Mr Armando Plastino COO of Essar Steel Algoma's said that “We are delighted that we have successfully implemented the best technological and engineering practices from across both the organization. He said that this has resulted in a 30 per cent improvement in productivity. I am happy to say the integration has produced extremely positive results with both organizations aligned with a view to growth.”

Local media reported that Kohinoor Steel was forced to halt production after angry villagers resorted to violence near the entrance of the plant in adjoining Seraikela-Kharsawan district in Jharkhand. At least five persons were injured.

Mr Avinash Dugar spokesperson of Kohinoor Steel said that "Around 12 to 13 anti socials, carrying iron rods and other weapons, forced our security guards to open the gates of the plant and thereafter filled the company's works all at once with some 70 to 80 coal laden trucks which were standing in queue on the approach road to the plant.”

He added that "It is difficult for us to say anything about their identity; but we got local police's support, who as also some villagers, rushed to the spot and helped us to normalize the situation."

Mr Dugar said that the company is in the process of lodging an FIR on Thursday with the Chowka police station.

Kohinoor Steel management alleged that anti socials elements are being instigated by politicians. A senior company official said that “Those involved in assaulting the truck drivers and guards couldn’t be identified as their faces were covered with cloth. It is a handiwork of local anti socials who were carrying iron rods, batons and traditional weapons during the assault.”

Mr Vijay Bothra MD of Kohinoor Steel said the company had sought police protection from the state government about six months back due to recurrent acts of violence by villagers. He said that “So far we have got no security from the police. The villagers are being instigated by political parties, who demand donations from us very often.”

Kohinoor Steel was set up in 2005 to house a sponge iron plant and a 17MW power plant.

PTI reported that JSW Steel may cut prices for a second month because of a decline in global costs of the alloy.

The report cited Mr Jayant Acharya senior VP of marketing as saying that “Spot market prices may be revised downward.”

As per report, the extent of the cut will be decided soon.

However, Mr Acharya maintained, that at present, domestic steel prices are considerably lower than international rates.

JSW Steel cut prices by INR 2,000 a tonnes last month.

Kolkata

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Mandi

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Kanpur

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Bangalore

Change is on October 1st as compared to September 30th
Change is in INR per tonne

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The Telegraph reported that Congress MP Mrs Sushila Kerketta recently convened a meeting of villagers from Torpa and Kamdara to pave the way for the ArcelorMittal’s Greenfield project in the state of Jharkhand in an effort to avoid a repeat of the infamous Potka episode. Over 100 villagers eager to know what the company and the government would offer them in lieu of their plots attended the meet.

Mrs Kerketta said that “The villagers of Torpa-Kamdara and officials of ArcelorMittal have been requesting me to organize a meeting for a one to one discussion on the company’s resettlement and rehabilitation plan in the area. Some people were coming between the company and villagers which I tried to avoid by organizing this meeting.”

Mr PS Prasad GM of ArcelorMittal’s represented the steel major while Mr AK Mishra deputy secretary in state industries department represented the government. After returning to the state capital, Prasad said the response of the villagers was positive as far as land acquisition is concerned.

Mr Prasad said that “We provided them all the facts about the proposed project and told them that the company would follow the state government’s R&R policy in toto. The biggest achievement is that for the fist time we managed to hold talks with villagers. The company also respects the feelings of Ms Barla and we want a dialogue with her as well.” The social activist however termed the meet stage managed.

But the tension between the anti displacement and pro industry groups was palpable during the meet held at the behest of ArcelorMittal and the state industries department. Around 40 kilometers away from the meet site Adivasi Moolvasi Astitva Raksha Manch activists squatted on the road to prevent vehicles transporting villagers towards Khunti. Social activist Ms Dayamani Barla who is spearheading the movement against land acquisition for the ArcelorMittal project led the demonstration.

Ms Barla said that “The villagers did not attend the meeting willingly. Mrs Kerketta and her henchmen sent 4 wheelers to ferry villagers to the meeting site. But the vehicles were returned. Few villagers who are either businessmen or acting as brokers reached Khunti for the meeting by their 2 wheelers.”

The Telegraph reported that Steel Authority of India Limited’s Bokaro Steel Limited has appealed to its employees to work harder to bring the plant on a par with the best ones in the country.

Mr PK Rastogi Union steel secretary during his recent trip to the city had praised officials of Bokaro Steel. Mr Rastogi had given his feedback after inspecting different shops and units. He advised the workers to try and increase production as SAIL was now competing with the best global steel players such as ArcelorMittal, TATA Steel and some Korean companies.

Mr Rastogi said that SAIL units were raising production by about 8% every year. Because of real estate boom and initiation of many government sponsored construction projects across the country, the demand for steel has shot up to about 12%. He urged the units to double their production.

Mr VK Shrivastav MD of Bokaro Steel Limited expressed happiness over Mr Shibu Soren CM of Jharkhand assurance to construct a boundary wall as it was mandatory for expansion of the plant. He exhorted workers to put in extra effort to reach the goal.

Mr Shrivastav said that “BSL is undoubtedly one of the best units of SAIL where modernization and expansion works are happening at a fast pace. We hope to double production in the coming years. To achieve this target even the state government has extended a helping hand and has assured us all support. This has boosted our morale.”

DNA reported that JSW Steel may increase the capacity of its Vijaynagar Karnataka plant to 16 million tonnes per annum in phases after its expansion to 10 million tonnes per annum from 4 million tonnes per annum now is completed by March 2010.

The current expansion has an outlay of INR 6,300 crore. In its first phase a new 3 million tonnes per annum blast furnace which is the biggest in India will go on stream on November and take the plant's capacity to 7 million tonnes per annum by March 2009. This furnace is expected to add INR 2,500 crore to the company's revenues.

JSW Steel sources said that in the second phase another 3 million tonnes per annum will be added. This will take the total capacity of the plant to 10 million tonnes per annum by March 2010.

After the current capacity spread is over, another 6 million tonnes per annum may be added to the facility.

Mumbai

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Ludhiana

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Bangalore

Change is on October 1st as compared to September 30th
Change is in INR per tonne

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The prices for input material showed overall decline with the sole exception of Mandi owing to local factors.

Melting scrap
80:20
HMS

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

Sponge iron

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

Pencil ingot

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

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Exim News Service reported that Navship Marine Services Private Limited, agents of Hocim Trading of Dubai and Cargill Ocean of Singapore has established a new record of loading 10,580 tonnes of blast furnace slag in 24 hours on September 29th at Visakhapatnam Port.

This surpasses the previous record of 10,008 tonnes of slag handled here from the vessel MV Gretke Oldendorff under the same agency in August 2008.

Encore Cements & Additives and Andhra Cements were the shippers, Srivalli Shipping & Transport was the stevedore of the above vessel.

The Indian maritime sector has entered a high-growth phase fuelled by the country's spectacular economic growth and rapidly increasing seaborne trade. The most striking feature of this development is the simultaneous buoyancy in all the sub sectors shipping, ports and shipbuilding. This provides tremendous opportunities for all the players in the maritime field.

With the Government encouraging private sector participation in port infrastructure development under the National Maritime Development Program, the Ports & Shipping Industry is poised for spectacular growth in order to meet the surge in demand.

Published in October 2008, 'Directory of Shipyards and Marine Service Providers' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian shipyard industry.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

Content:
This report covers name and product details of 49 shipyards and marine service providers of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Shipyards and Marine Service Providers'

• Company name -49 entries
• Address-49
• Email-35
• Phone number-48
• Fax number -42 entries
• Mobile -6 entries

Format: PDF File
Total no of pages – 35
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Reuters reported that Welspun Gujarat Stahl Rohren expects demand for pipes to stay robust this financial year as sky rocketing oil prices lend a boost to exploration opportunities.

Mr Akhil Jindal director of Welspun said that global demand for steel pipes used to supply oil and gas will not be directly hit by the turmoil in financial markets worldwide which saw the world's largest economy floundering.

Mr Jindal said that “When crude prices rose, in pursuit of oil, people went deeper and deeper in the most difficult terrain. Now you need to have the pipeline to transport oil and gas to capitalize your investments.”

He said that the firm also does not see the recent rupee depreciation impacting its revenues at least in the current year as it is naturally hedged against any currency risks as our export-import orders are booked back to back.”

BS reported that Hindustan Zinc Limited is aiming at 55% of its turnover to come from overseas markets up from over 15% now once its capacity expansion plan is in place by 2010. The company also expects an early rise in the zinc price.

As per report, HZL, which is one of the world’s lowest cost producers, is using the downside in the zinc price as an opportunity to expand as it expects prices to catch up from the first or the second quarter of the next financial year.

Mr Mahendra Singh Mehta CEO of Hindustan Zinc said that “We expect the excess of supply in the market to get exhausted in the next three to six months as high cost production is being shut down.”

He said that once that is over the prices should start shooting up from the first or the Q2 of the next financial year.”

The report added that the company’s cost of production is USD 635 a tonnes before the royalty payout, largely due to the low cost of mining ore at the Rampura Agucha mine. It is expanding its zinc and lead production capacity to 1.07 million tonnes per annum with an investment of INR 3,600 crore.

Zn, which is largely used for galvanization of steel, has seen about a 28% drop in spot prices this year as demand for the ferrous metal declined due to an economic slowdown in Western markets and China. The current spot price of the metal at USD 1,770 a tonnes is about 57% lower from the high of USD 4,130 a tonnes in January 2007.

India is large market for import of steel scrap and this is the directory which is going to help many interested group to know this industry.

Published in September 2008, 'Directory of Scrap Suppliers to India' has been comprehensively researched and prepared, to bring you a fully up to date guide to overseas scrap supplier.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

Content:
This report covers name and product details of 1191 overseas scrap suppliers to India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Scrap Suppliers to India'

• Company name -1191 entries
• Address-1191 entries
• Email-1074
• Phone number-1140
• Fax number -431 entries

Format:
PDF File
Total no of pages – 545

Delivery by Email on receipt of payment

Price:
USD 500 or equivalent in INR
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Project today reported that JSW Energy has acquired 17,000 acre in Barmer, Rajasthan for mineral drilling for its energy projects across India. The company has already entered into an agreement with the tillers of the land in Barmer for a fixed period of 100 years.

Though the company got into an agreement directly with the farmers, the state government facilitated the acquisition.

ET reported that Mr Anil Ambani controlled Reliance Natural Resources plans to enter cement manufacturing and shipping activities with an investment of INR 12,000 crore. For supporting its ambitious cement business RNRL is looking to run a shipping service. It will help the company in transporting raw materials and finished products.

Mr Anil Singhvi vice chairman of RNRL on the sidelines of the company's annual general meeting said that ‘We will invest INR 10,000 crore in cement business and INR 2,000 crore in shipping. He said that our foray into cement and shipping will take 3 to 4 years period.”

Mr Anil Ambani chairman of RNRL said that “we are actively considering entering into cement manufacturing with 20 million tonnes capacity.”

Mr Ambani said that “We will foray into shipping business with 6 ships to start with. It will operate between Indonesia and Krishnapatnam carrying coal from Indonesia. He said that we re positioned RNRL as a complete fuel Management Company, covering exploration, development and production, sourcing and supply, transportation and distribution activities. He added that we are now equipped not just to meet the fuel requirements of our group companies but of a wider market.”

At present RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.

BL reported that Gujarat Pipavav Port Limited the developer and operator of Pipavav port the country’s first private sector port has filed its draft red herring prospectus with the Securities & Exchange Board of India for an initial public offering aggregating INR 500 crore for cash at a price to be decided through 100% book building process.

As per report, the equity shares offered through this draft red herring prospectus of the company are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

The sources added that GPPL is promoted by APM Terminals which is one of the largest container terminal operators in the world operating 50 terminals in 31 countries and is part of the Denmark based AP Moeller Maersk Group. Located in the Saurashtra region, Pipavav port is one of the principal gateways on the west coast, providing facilities for handling both containers and bulk cargoes. There is also rail connectivity to the port.

BL reported that the crisis facing Haldia dock due to the declining navigability of the Hooghly River near the dock was discussed threadbare at a seminar organized by the Hillary Institute of Kolkata Port Trust.

Participants at the event included Dr AK Chanda chairman of port, the Mr Laxman Seth CPI Lok Sabha Member from Haldia, two trade union leaders Mr Hemlal Chatterjee and Mr Parbati Das also members of the Board of Trustees of the port, Mr Ramakanta Burman Secretary of the Haldia Dock Officers’ Forum, and senior port officials such as Mr AK Bagchi director of Marine department and Mr B Chowdhury chief Hydraulic Engineer.

The port officials explained the genesis of the problem caused by several factors the most important being the unpredictable behavior of the river rendering several measures adopted to tame it virtually redundant.

Expressing concern at the present situation the trade union leaders emphasized that something must be done urgently to overcome the crisis which might take alarming proportion in the lean season due to begin from October and continue till February.

The secretary of Haldia Dock Officers’ Forum laid the blame at the door of the Union Government. He said that while Haldia dock was facing the risk of closure due to the shortage of dredgers required for maintenance dredging as many as seven dredgers ideally suited for the job had been deployed at Sethusamudram project which actually needed dredgers suitable for capital dredging. He demanded the immediate shifting of some of the dredgers from the Sethusamudram project to Haldia.

BL reported that the World Bank assisted INR 61 crore inland water transport development project started about 5 years ago appears to have been abandoned halfway.

As per report, the government had in 2003 launched the Kerala State Transport Project to develop and renovate the routes Kottayam-Alappuzha, Kottayam-Vaikom and Alappuzha–Changanacherry through Kavalam with World Bank assistance.

Father Thomas Peelianickal said that development of these waterways was found to be vital in view of their environment friendliness and cost advantages especially for transporting cargo. He said that apart from this, the canals would help boost tourism as visitors from outside the State and overseas would be attracted to travel via the verdant canals and rivers of Kuttanad. This cheap transport facility will facilitate transportation of agricultural produce of farmers living on the banks of the canals to Alappuzha, Kottayam and Changacherry markets.

He said that the major causes for the decline in water transport on these routes which was the only mode of transport in Kuttanad region are the drop in the draft of the rivers and canals due to silting, caving in of the embankments, weeds covering water surface, low elevation bridges and the absence of proper jetties among others.

Official sources said that the increased availability of faster but costlier modes such as roads and rail has also contributed to a substantial drop in the use of this cheap mode of transportation. Given this situation the project was launched to remove the obstacles apart from widening the waterway to 17.5 meter and ensuring the draft is not less than 2.2 meter.

The Hindu reported that London based Hinduja conglomerate has begun work on the USD 15 billion investment plan for India's power sector that will result in generating 10,000 MW for the national electricity grid.

The Hinduja Group head in France Mr Nader Hakimi said that "These are the initial phases of a plan to develop, over the next few years, a pipeline of power projects aiming at a capacity of 10,000 MW. This means a total investment of some USD 15 billion.”

However Mr Gopichand P Hinduja president of the Hinduja Group of Companies at the India-EU Business Summit said that the Indian Government needs to pull up its socks for transparency and accountability in terms of clearing the mega projects. He said that "There should be a time limit for clearance of the projects and accountability be fixed for delays.”

He said that "Our commitment is visible with our 1,000 MW power generation project in Andhra Pradesh and a new 4,000 MW project in Tamil Nadu.”

It is reported that Mr Prakash on Wednesday took over as the member of Traffic Railway Board. He replaces Mr VN Mathur who retired on Tuesday.

Mr Prakash who was the GM in Northern Railways is an officer of 1972 batch of Indian Railway Traffic Service. He has served in various capacities in the Indian Railway network including advisor infrastructure to the Railway Board, DRM Dhanbad and ED of Traffic Transport in the Railway board among others.

Blaming the Rajasthan government for going slow on fuel production and transportation, Mr Murli Deora Petroleum Minister has asked it to give permission to Cairn India and Oil & Natural Gas Corporation for laying pipeline to transport crude from Barmer to Gujarat.

Mr Deora insisted that Cairn and ONGC be cooperated in the Barmer basin, from where crude oil would be transported through pipelines to Gujarat.

He said that Rajasthan government should accord permission to Cairn for laying pipeline to take crude oil from Barmer to Gujarat and this alone would enable the state government to earn INR 20 to INR 25 billion in royalty.

He said that “Delay in sanction of pipeline by the beneficiary state hampers the crude oil evacuation work.”

Nippon Steel Corporation and Kobe Steel Limited, with the objectives of expanding and enhancing their cooperative ties, reached agreement to consider a joint business for recycling of steel dust and production and utilization of direct reduced iron at the end of October last year. The two companies proceeded to consider the joint business and have now entered a contract to establish a joint company.

Summary of the joint business for steel dust recycling and reduced iron production and utilization

1. Nippon Steel and Kobe Steel will establish a joint company on the grounds of Nippon Steel's Hirohata Works to produce DRI from steel dust and iron ore powder with the objective of effective use of the iron and zinc content included in steel dust.

Outline of the Joint Company
Company name: Nittetsu Shinko Metal Refine Co., Ltd.
Capital Ratio: Nippon Steel 70%, Kobe Steel 30%
Location: On the grounds of the Nippon Steel Hirohata Works
Capital Investment: Approximately JPY 20 billion
(Investment will be primarily for a rotary hearth furnace-type reduction furnace and related equipment. Capital investment will commence when the joint company receives approval to recycle steel dust.)
Date of Company Establishment: Mid October, 2008
Planned Start of Operations: Two years after the start of capital investment
2. After establishment, the joint company will apply to the Ministry of the Environment for approval to recycle steel dust. Upon receiving approval, a new recycling facility will be constructed for the operation of a Kobe Steel FASTMET® Plant using a rotary hearth furnace. The joint company will recycle the steel dust it receives and produce DRI to be supplied primarily to Nippon Steel and Kobe Steel with a portion also supplied to Sanyo Special Steel Co., Ltd., Nippon Steel' affiliate.

3. The RHF, which is the core operating equipment of the FASTMET® Process, is a donut-shaped furnace that recycles steel dust through high-temperature and high-speed processes to produce DRI. The RHF is also able to abstract zinc from steel dust. The DRI will be reused in the steel manufacturing process and the abstracted zinc will be reused in nonferrous processes. Recycling these materials will promote zero emissions while reducing usage of scrap metal, iron ore, and zinc ore.

4. The annual capacity of the new equipment to be used in the operation will be approximately 400,000 tons, making the facility one of the largest production processing operations in Japan. The economy of scale will increase the cost competitiveness of DRI while providing a complete measure for environmental measures.

5. The RHF in the new joint company will raise to four the number of RHFs in use on the grounds of the Nippon Steel Hirohata Works. In conjunction with the installation of the fourth RHF at the works, Nippon Steel plans to begin utilizing the No. 1, 2, and 3 RHFs currently in operation or under construction at the Hirohata Works to also improve the processing efficiency of steel dust produced by alliance partners Sumitomo Metal Industries, Ltd. (Wakayama works), Nisshin Steel Co., Ltd. (Kure works), and Nakayama Steel Works, Ltd..

The new operation's configuration as a joint operation between Nippon Steel and Kobe Steel is aimed at securing a stable source of materials and promoting recycling and zero emissions at all of the alliance members. At the same time, the combination of Nippon Steel's proven operating technologies for recycling and effective usage of steel dust and Kobe Steel's proven RHF technology will strengthen the mutual advantages of the relationship between the two companies, while including the alliance members will create a new business model for improving the overall efficiency of steel dust recycling in the Kansai region.

Nippon Steel and Kobe Steel intend to smoothly advance the new joint business while continuing to actively strengthen and promote their relationship.

On October 2nd 2008, the US Department of Commerce announced its affirmative preliminary determination in the antidumping duty investigation on imports of steel threaded rod from the People’s Republic of China.

DOC preliminarily determined that exporters/producers from China have sold steel threaded rod in the United States at 77.85% to 206.00% below normal value. Mandatory respondents RMB & IFI and Ningbo Yinzhou, received preliminary dumping rates of 77.85% and 176.57%, respectively. Nine Chinese exporters received a separate preliminary rate of 91.22%. All other exporters will receive the China-wide rate of 206.00%.

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on the preliminary rates.

Commerce is currently scheduled to make its final determination in December 2008. If Commerce makes a final affirmative determination, and the US International Trade Commission makes a final determination that imports of steel threaded rod from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue an antidumping order.

Vulcan Threaded Products Inc is the petitioner for this investigation.

The merchandise covered by this investigation includes steel threaded rod, which is certain threaded rod, bar, or studs, of carbon quality steel, having a solid, circular cross section, of any diameter, in any straight length, that have been forged, turned, cold drawn, cold rolled, machine straightened, or otherwise cold finished and into which threaded grooves have been applied. In addition, the steel threaded rod, bar, or studs subject to this investigation are non-headed and threaded along greater than 25% of their total length. A variety of finishes or coatings may be applied to the merchandise.

Excluded from the scope of the investigation are
(a) Threaded rod, bar, or studs which are threaded only on one or both ends and the threading covers 25% or less of the total length
(b) Threaded rod, bar, or studs made to American Society for Testing and Materials ASTM A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 Grade B16, or ASTM A320 Grade L7.

Steel threaded rod is classifiable under subheading 7318.15.5060 of the Harmonized Tariff Schedule of the United States.

From 2005 to 2007, imports of steel threaded rod from China increased 9.8% by volume and were valued at an estimated USD 72.3 million in 2007.

Japan's steel industry said that it is extremely dissatisfied with Australian Competition and Consumer Commission for approving the proposed takeover of Rio Tinto by rival BHP Billiton. It is worried that the new company would have too much control over global iron ore prices.

The Iron & Steel Federation said that it is asked anti trust agencies in Japan and Europe to thoroughly examine the proposal.

Japan's corporate regulator, the Free Trade Commission, has been frustrated in its attempts to scrutinize the deal.

What is important to take note of now, however, is that the Indian steel industry suddenly finds itself in a completely different context. In the world of steel, every player remains familiar with the cyclical nature of the growth. Therefore, the slowdown should not have surprised any in the industry. But, none really expected this to have happened so fast. The steel super cycle seems to have been ended abruptly or really?”

“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.”

But the recent great years in steel have supported strong capacity growth in the steel industry in India. The more competitive Brownfield expansion projects have started delivering results and more are expected to come. What has been extraordinarily interesting to note in the past few years is the growth of very small to mid size capacities.

The Indian steel industry is in a peculiar fix. The capacity could not be raised immediately because of their own strategic problems. The limited capacity in the country and higher global prices provided to them all the opportunities to make sufficient money themselves and raise their credibility in the global capital market. However, an impulsive government, given the high political value attached to inflation in India, intervened in the steel business more than it needed to do.

Despite the fact that the capacity expansions in India have been of recent origin, a huge chunk of the existing capacity is technologically outdated or is uniquely backward.

It will be premature to write India’s steel ambition off despite all the bad news surrounding it currently.”

“Indian Steel Projects: Ground Reality, Strategic Issues and Opportunities” from Steel and Natural Resources Strategy Research analyses the context each significant producer is placed in and identifies their core problems. It makes an objective assessment of the strength and weakness of each of the major projects, when they are expected to be completed and at what cost.

It takes a macro view of the emerging steel supply scenario till 2021.

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

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ArcelorMittal Dofasco has announced that it is going to reduce its production in the following half year of 2008, triggered by weak demand.

It said that although the steel demand was very strong in the first half of 2008, but the market demand has become much smaller since this third quarter. Therefore, it made the decision to cut production.

ArcelorMittal Dofasco will cut its production in both steelmaking and finishing operations, however, it also stated that its USD 180 million investment project will be continued.

Reuters reported that Goldman Sachs has removed ArcelorMittal from its conviction buy list and cut its price target on the stock by ERU 40 to EUR 59 euros, to reflect a lower steel price forecast.

Goldman expects steel prices to fall on lower demand in 2009. It cut its 2009 steel European steel price estimates by 9% to an average EUR 723 per tonne.

Goldman said that "After factoring in our revised steel prices and the likely production cuts ArcelorMittal will undertake to support pricing in the expected weak demand environment, the shares no longer screen as most attractive in our coverage universe. We like the company's broad geographic and end-market exposure, along with high raw material self-sufficiency and a strong balance sheet."

It, however, maintained a 'buy' rating on the stock.

Standard & Poor has reported that weakening prices, high material costs and tight liquidity have also had a great impact in Europe. Demand in both developed and emerging markets is also sliding downward.

Steel prices are declining sharply after the sudden upward spokes a few months ago due to fluctuating nickel price. Experts predict that producers of iron ore and coal are in a more advantageous position this time.

Steel market prices in 2009 look like they will continue to weaken since both the US & European regions are experiencing slow economic growth. Steel producers with their own sources of raw material supply will be better to balance their input costs at this time of swinging steel prices.

(Sourced from Yieh.com)

Mr David A Hartquist, counsel to the Specialty Steel Industry of North America and the China Currency Coalition, will testify before the US Trade Representative that China is in violation of its commitments to the World Trade Organization on subsidies.

According to Mr Hartquist, China has not kept this promise or honored its international legal obligations in this regard. He said that “Under a deliberate plan to build a world-class stainless steel industry in China, the Chinese government has given top priority to encouraging exports of semi fabricated and downstream stainless steel products and to reducing China's reliance on imports of these products for its domestic market. By implementing this trade distorting industrial policy at virtually every level of government, China has relied and continues to rely, upon various measures that include not only subsidies, but also import and export restrictions and other discriminatory regulations, all of which raise concerns under the WTO's agreements."

On July 31st 2008, USTR announced that it would seek public comments and would hold a hearing in Washington, DC to obtain information to be used in preparation of its annual report on China’s compliance