Although domestic steel prices are continuously reducing since July 1st 2008, the comparison of fall when compared with reduction in global levels points to a scenario, where in during November and December Indian domestic prices are likely to crash further to maintain parity with global levels

Both Indian domestic and global price levels were at peak during early July, although Indian domestic levels, due to Indian government’s drive to tame inflation, were suppressed by about 10% as compared to global levels

Since than the fortunes of both global as well as Indian steel industry has changed to a large extant. Now almost every steel maker is facing daunting task of sales realization to cover their variable costs and failing to book orders.

The variation over last 4 months for Indian domestic steel prices is reflected in the indices developed by SteelGuru.com

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

It is clearly reflected that long product prices in India have come under much more pressure so far and have reduced by about 32%, whereas flat product prices have gone down by only 15%.

Category wise changes are given below

Long products

Flat products

But, when we look at the global pricing trends, which are dominated by FOB levels at Black sea and China, it is seen that the price crash has been much more severe.

FOB Black Sea

FOB China

Although these levels are still reducing week over week, even if we assume that they have reached the bottom, the price reduction on average has been as under
Long products – About 70%
Flat products – About 55%

During last 4 months, Indian rupee has weakened a lot and has affected the import parity pricing. The change in exchange rate for 1 USD to INR is as under

Thus, to arrive at import parity pricing for Indian domestic prices, we need to take into account the suppressed levels of domestic prices in July beginning as well as exchange rate fluctuation.

Indian steel majors including Steel Authority of India Limited, JSW and Essar Steel have announced major price reductions for November, which in all likelihood would result in market prices across India in coming weeks.

To know the actual price levels on daily basis, please subscribe to service of www.steelprices-india.com

(Sourced from www.steelprices-india.com)

PTI reported that following the footsteps of Indian steel giant Steel Authority of India Limited, which announced steel price reduction on November 1st 2008, some other steel majors have also announced price cuts.

JSW Steel Ltd has cut the cost of its hot rolled steel coils by 15% to 17%. JSW Steel said in statement said that “We are reducing prices of HR Coil by INR 5,500 per tonne for November 2008 in line with prevailing international prices. This cut along with the 8% to 12% reduction in October 2008 amounts to an overall reduction by 25% to 30% as compared to peak prices in the domestic market.”

Essar Steel also slashed retail prices of steel by INR 4,000 per tonne to INR 5,000 per tonne. An Essar Steel spokesperson told PTI that "We have slashed prices by INR 4,000 per tonne to INR 5,000 per tonne in the retail segment.”

The slide continued unabated although it was more pronounced in flat but relatively stable in long. The FPPI fell by 354 points whereas LPPI remained stable. The overall steel index fell by 162 points:

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:
Melting scrap
80:20
HMS

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Alang

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Pencil ingot

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Pig Iron

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Sponge iron

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Long products
TMT
Fe 415
12mm

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

WRC
SWR14
5.5/6

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

ANGL
GR A
65x6

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

CHNL
GR A
75/100

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

JSTI
GR A
250x125

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Prices are expected to go down further.

Flat products

HRC
Tube
2.5x1250

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Patra

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

PLTS
GRA
8x1.5

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

PLTS
GRB
12-20x2.5

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

CR
DSK
0.63x1000

Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

GC
100Gms
0.4

Change on October 31st is with respect to prices on October 24th
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

ET reported that India Government's decision to cut export duty by 15% on long steel products, mainly used in the construction sector, got a mixed response from the steel industry.

While a section of steel producers feel the move would not help the industry much as it has come at a time when demand and prices of the alloy have nosedived in global market due to financial recession, others contend it saying it would open up avenues for foreign shipments.

Mr SK Roongta chairman of SAIL said that "The duty roll back would not have a substantial impact, as volume of exports of long products from India is minimal."

Nevertheless, he termed the move as a right one saying it would provide a little respite to the industry, which can think of exporting some quantities.

Mr PK Bishnoi CMD of RINL said that "It is a welcome move. We had made a request for this to the government keeping in mind the unprecedented situation in the world, which has also affected the Indian steel sector."

He however added that much more needs to be done by the government to give a fillip to the domestic steel industry, which is passing through toughest of the times due to slump in demand and falling prices.

Industry watchers however said that the duty roll back would to some extent benefit producers like SAIL, RINL and TATA Steel, which account for 30% of the total market in the organized sector.

JSW Steel Ltd has laid the foundation of an integrated steel unit at Salboni in West Bengal to produce 10 million tonnes of steel by 2020. The project on a free tax zone would entail an investment of INR 350 billion in three phases.

The inauguration of the project at Salboni, which is about four hours' drive from Kolkata in an economically backward district, was marked by a huge presence of cadres of the ruling communists in West Bengal. Mr B Bhattacharya chief minister of WB, Mr Ram Vilas Paswan union steel minister and Mr Nirupam Sen state industry minister were present on the occasion.

Mr Sajjan Jindal vice CMD of JSW Steel told reporters that "We would produce three million tonnes of steel by 2012 from the unit when it goes on stream, followed by 6 million tonne by 2015. We will reach our target of producing 10 million tonnes of steel by 2020."

JSW project faced no protest over land acquisition after the steel maker offered farmers jobs and shares in its unit JSW Bengal Steel. The company has acquired 4,500 acres of land for the plant. Mr Jindal said that "We are against forcible land acquisition from farmers. We started work with support of the villagers.”

JSW Steel owns 89% of the equity in the venture and remaining is held by the state government.

It is reported that Essar Steel Algoma and its largest union to agree on a strategy to avoid layoffs appear to have soured. Union leaders charge the steelmaker has gone too far in asking for permanent contract changes.

Mr Mike DaPrat president of United Steelworkers Local 2251 representing roughly two-thirds of Essar Steel Algoma's total work force told members that he is not willing to budge on a list of company requests. He said that those include what appear to be lasting changes to an income security plan that shores up employment insurance payments for those laid off.

Mr DaPrat said that "If they want to talk about getting help from us, we're there, but if they want to talk concessions permanent, we're not." He added that the union and the company were to have met Friday morning to take another look at what is on the table.

Mr DaPrat said that no 2251 members have been laid off and the company has given the union no information on when or how many workers, if any will be laid off.

In a move that might anger some steelworkers, Mr DaPrat told members he is prepared to do away with 12 hour shifts, which are allowed under the collective agreement and are seen by some workers as a way to make the plant's 24 hour schedule more palatable.

As per report, it has been three weeks since Essar slowed production in reaction to a drastic cut in orders precipitated by a global financial meltdown that still has world markets reeling. In the meantime, the company has removed outside contractors and slashed overtime for existing workers under a plan that has also included the idling of the recently refurbished No 6 blast furnace.

(Sourced from SooToday.com)

Following is the text of the remarks by Dr Manmohan Singh PM of India at the ASEM Summit at Beijing

Dr Manmohan sing said that the international financial crisis has resulted from three failures:
1. A regulatory and supervisory failure in major developed countries
2. A failure in risk management in private financial institutions
3. A failure in market discipline mechanism

He said that “These are not my views but those of the distinguished MD of the IMF with which I agree. We must analyze objectively how and why these failures have occurred with such ferocity. This is necessary to put in place a new set of rules which will prevent reoccurrence of such failures.”

He said that “Sad truth is that in this age of globalization we have a global economy of sorts but it is not supported by a global polity to provide effective governance. He added that the resulting crisis of liquidity, accumulation of bad assets, shortage of capital and collapse of confidence threatens to spill over into the real economy by way of reduced demand for goods and services particularly exports, reduced access to trade and suppliers credits superimposed on other crises food and fuel price rises that have strained budgets and balance of payments leading to rising inflation and living costs in many developing countries.”

Dr Singh added that “The President of the World Bank has identified at least 30 developing countries whose balance of payments will experience a severe deterioration in the wake of this financial crisis. The immediate task is to de clog the credit markets the world over. Coordinated global action is essential to restore a measure of confidence in the credit markets. From the standpoint of developing countries, international financial institutions, particularly the IMF and World Bank need to put in place exogenous shock facilities to provide assistance to the affected countries more quickly and in larger amounts with less service conditionality and greater flexibility. Countries with strong foreign exchange positions could make additional resources available to the international financial institutions on appropriate terms to finance their operations.”

Dr Singh said that “As a counter cyclical device, increased infrastructure investments in developing countries, if backed by increased resources flows from multilateral financial institutions such as the IBRD and Regional Development Banks can act as a powerful stabilizer. The IMF should revisit the potentially powerful instrument of creating liquidity through fresh allocation of Special Drawing Rights in favour of multilateral development finance institutions.
The reform and reconstruction of the financial system has to be a collective international effort since borders no longer confine financial institutions or can keep out financial turmoil. Given the growth in cross-border investment, trade and banking in the last three decades, the world must ponder over the need for a global monitoring authority to promote global supervision and cooperation in the increasingly integrated world in which we live.”

In devising a reform agenda, one must bear the wise saying of John Maynard Keynes regarding the economically damaging role of excessive speculative activity that “Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be ill-done"

He added that Clearly, there has been a massive failure of regulatory and supervisory powers. Speculators have had a free run for far too long a period. International institutions like the IMF have also not covered themselves with glory. There has been an unacceptable failure of effective multilateral supervision of major developed economies and in particular of what has been going on in their financial markets.”

He concluded that “India’s banking system is sound and well capitalized. It is not exposed to the type of assets which have given rise to this crisis. Our real economy will grow at the rate of 7% to 7.5% this year despite the global slowdown of export demand and capital inflows. We have injected fresh liquidity in the system. We realize that we cannot remain totally unaffected when the global economy and financial system are in deep trouble. Our stock markets and the exchange rate of the rupee are under pressure due to capital outflow of foreign institutional investors. Sooner or later, the real economy is bound to experience the pain. We are therefore sincere in our desire to cooperate and coordinate our actions with the world community to find effective and pragmatic solutions to the formidable challenges the world economy is now faced with.”

PTI reported that Indian government has turned down the request of steel producers to persuade state run miner NMDC Ltd to roll back last month’s price hike on iron ore, saying it cannot intervene in the commercial decision of the PSU.

Steel ministry in response to the joint representation of companies like Ispat, JSW, Essar and RINL said that “Pricing of iron ore of NMDC is purely a commercial decision of the PSU and we may not intervene in it.”

In the representation, the steel producers had said the price hike by NMDC has come at a time when the industry is under immense pressure due to fall in demand of the commodity and cheaper imports from China, Ukraine and Thailand.

Navratna PSU NMDC had late last month announced up to 40% provisional hike in iron ore prices for its long term contracts in the domestic market with retrospective effect from April 1st 2008.

It is reported that the following note from Mr Armando Plastino COO of Essar Steel Algoma was received by SooToday.com late Friday evening. We had asked the company to comment on issues raised by Local 2251 of the United Steelworkers and to describe what it was seeking from union members:

Mr Plastino said that Essar Steel Algoma is doing everything possible to keep people working during these difficult times.

He said that “For example, our own people have been deployed to take over project work that remains, overtime has been reduced to virtually zero, discretionary spending has been curbed, and scheduled maintenance has been moved ahead to take advantage of downtime in the operation.”

He added that “The steel market continues to be very soft and despite all the cost saving initiatives that have been undertaken to date, the reality is that more will need to be done in order to successfully weather this market cycle. It is very unfortunate that Essar Steel Algoma is being characterized by the union leadership as something that clearly we are not.”

He said that “We are making every effort to reduce our costs so that we can avoid laying off our employees. The items that we asked for from the union were very insignificant with respect to changes to the collective agreement but would be very significant in terms of their impact to our costs during these difficult times.”

He added that “We will not discuss the specifics of these matters or any other items of a human resource nature in the public arena. It is even more unfortunate that not only has the union leadership chosen to attack Essar Steel Algoma but they are unwilling to provide the assistance required to keep our employees working.”

He further added that “We all know what can happen to companies who are in need of cooperation from stakeholders during genuinely difficult times and that cooperation is not given. We don’t believe this sort of opposition and politically motivated barrage of accusations by the union leadership should go without response. There is too much at stake. We do not want to impose hardship on anyone but those hardships will come if we do not act today.”

(Sourced from SooToday.com)

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

Uttam Galva has reported a 30.40% YoY decline in is net profit at INR 21.26 crore for the quarter ended September 30th 2008 as compared to a net profit of INR 30.55 crore in the Q2 of the previous fiscal.

Its total income went up by 56.41% to INR 1,361.73 crore for the quarter under review.

Mr Ankit Miglani director of Uttam Galva Steels in a statement said that “The Company’s growth and thrust on expansion and consolidation is reflected in our results. While we will continue maintaining our export thrust, it is our constant endeavor to increase our volumes in the domestic market.”

He said that for the half year ended September 30th, the company witnessed a 10.20% decline in the net profit to INR 47.86 crore from INR 53.30 crore, it had in the same period last year. However its total income from operations for the H1 went up by 35.33% to INR 2,155.24 crore from INR 1,592.57 crore a year ago. Amidst the slump in domestic demand for steel products and falling prices, the firm would look to increase efficiency and reduce cost of production.

Mr Miglani said that “The coming year is expected to be extremely challenging. Our focus will be towards enhancing value and productivity and reducing costs to maximize our top and bottom line.”

Forging is one of the oldest known metalworking processes. It is manufacturing process where metal is pressed, pounded or squeezed under great pressure into high strength parts known as forgings.

Some of the largest customer markets include: Automotive & Tool Industry. But, application is not limited to automotive sector alone and there is ample scope for expanding the market of forgings to various sectors like Steel, Coal, Metals & Metal Working Industry; Material Handling & Off Highway Equipment Industry; Cement, Chemical Processing & Oil Exploration Industry; Mechanical Power Transmission Equipment Industry; Sugar & Ship Building Industry; Power Sector; Electric Equipment Industry; Defense Sector; Farm Machinery Industry & Railway Sector.

The domestic automotive sector and outsourcing have been the key drivers of growth for the forging industry in India with consistent increase in production, capacity utilization and exports. The fortunes of the forging industry is on a rise due to the booming auto component industry with forging exports projected to touch the magic figure of US $5 billion (which is about 15% of the auto component exports) by 2015. Along with this, there exists ample scope for forgings consumption in many other sectors that would open up big business opportunities for the forging industry.

Considering the above, the demand for forgings is expected to be at least 16% per annum. Hence, the future looks rosy for the forging industry in terms of the expected surge in both global and domestic demand.

Published in October 2008, 'Directory of Forging Industry in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian forging industry.

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

Content:
This report covers name and product details of 121 forgers of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Forging Industry in India'
• Company name -121 entries
• Address-121 entries
• Email-82 entries
• Phone number-118 entries
• Fax number -113 entries
• Mobile -72 entries

Format: PDF File
Total no of pages – 73
Delivery by Email on receipt of payment

Price:
USD 350 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form

How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com , which will send you an invoice of the report.

Ispat Industries Ltd has announced the following unaudited results for the quarter ended September 30th 2008.

Ispat Industries has posted a net loss of INR 267.40 million for the quarter ended September 30th 2008 as compared to net profit of INR 135.40 million for the quarter ended September 30th 2007.

Its total income has increased from INR 20436.50 million for the quarter ended September 30th 2007 to INR 32237.80 million for the quarter ended September 30th 2008.

Reuters reported that Welspun Gujarat Stahl Rohren has trimmed its steel plate production target for FY 2009 by 43% and will not produce commercial grade plates for sale due to lower prices.

As per report, the firm will now produce 340,000 tonnes of commercial and higher grade steel plate this year, against an earlier target of 600,000 tonnes.

Mr Akhil Jindal director of Welspun Group said that "We will not be producing more commercial grade plates than we would be requiring internally. We do not want to sell at nominal prices. So we will have to cut production to that effect."

Welspun Gujarat, which primarily makes steel pipes used for transportation of oil and gas recently commissioned its 1.5 million tonnes steel plate mill for both captive consumption and external sales.

Essar Shipping Ports & Logistics Limited has deferred acquisition of three bulk carriers due to a slump in charter hire rates but was on track to deliver projects announced earlier. Tighter trade finance and the global economic slowdown curbed demand for raw material, stranding cargoes and sending shipping rates plunging to a 6 year low.

Mr Sanjay Mehta MD of Essar Shipping said that "We have deferred this in view of the current fluctuation in freight rates. He said that we'll decide later what we can do with the money."

Mr Mehta said that the firm, which has a CAPEX of USD 2.5 billion over the next 3 years had planned to buy 5 dry bulk carriers in 2008-09 of which it has already taken delivery of 2 vessels in August.

Mr Mehta said that Essar Shipping was insulated against a global turmoil in financial markets as 80% of its total fleet was on firm contracts.

He said that "We might see, in the next two quarters, some slip in throughput but margins will not be affected. We are on track to achieving an earning before interest, depreciation, taxes and amortization of INR 800 crore to INR 900 in 2008."

Globally, some shippers have declared backruptcy while others are looking at mothballing ships and cutting jobs if a slowdown in global trade gets worse.

BS reported that the 6million tonne per annum greenfield steel project proposed by TATA Steel in Kalinganagar will require maintenance support services worth INR 1,200 crore when fully commissioned. These services will be outsourced by the company and are expected to create huge opportunities for the small and medium enterprises in Orissa.

The services to be outsourced include warehousing, machine shop, electrical repairing shop, fabrication shops, electrodes and lubricant suppliers, waste management, mechanized material handling and hospitality among others. Since the maintenance cost is about 4% of the total investment in steel industry, this is expected to create huge opportunities for the small and medium enterprises.

Mr B K Singh VP Orissa project of TATA Steel said that "We will invest about INR 30,000 crore in the Kalinganagar project in phases and will require maintenance support services worth INR 1,200 crore.”

He added that the group will work towards developing the local entrepreneurs and will provide assistance to anyone who wants to be a partner in TATA Steel's business. He added that TATA Steel will give the first right of refusal to local industries in the maintenance support services.

Mr TR Baalu union minister for Shipping, Road Transport and Highways on the occasion of the foundation stone laying function for the development and modernization of Chennai Airport said that good quality infrastructure like all weather ports, roads, power, telecommunications, railways, airports and air services to all parts of the country, among other things are critical requirements to attain speedy growth in a competitive world.

Mr Baalu said that the liberalization of the economy had brought home the urgency to recognize the vital need for an efficient transportation system. He added that keeping this in view, the Union government made infrastructure a national priority. Out of the total investments of INR 36,44,781 crore planned for the 11th Five Year Plan over 56% had been earmarked for infrastructure that is INR 20,56,150 crore.

The emphasis being given to the development of transport infrastructure by the government was evident from the fact that, out of the investments of INR 20,56,150 crore planned for infrastructure in the Eleventh Plan, 15.28% was for roads and bridges, 12.73% for railways, 4.28% for ports and 1.51% for airports.

He added that this brought the total investment for transport infrastructure to INR 694,920 crore, which was 33.8% of the total investment planned for the infrastructure sector.

Cargo handled at ports had increased over 27 times from about 19 million tonnes in 1950-51 to 522 million tonnes in 2004-05.

The freight volumes carried by the railways expanded 11 fold from 38 billion tonnes Kilometers in 1950-51 to 407 billion tonnes kilometer in 2004-05. However, the growth of road freight transport had been more than 100 times from 6 billion tonnes kilometer in 1950-51 to 613 billion tonnes kilometer in 2004-05.

Mr Baalu called for the creation of a policy environment that encouraged competitive pricing and coordination between alternative modes to provide an integrated transport system that assured the mobility of goods and people at maximum efficiency and minimum cost.

Reuters reported that TATA Motors Limited is rethinking a USD 600 million overseas fund raising plan due to falling markets and is also reviewing its expansion plans due to softening demand.

Mr C Ramakrishnan chief of finance said that “We are rethinking the overseas fund raising plan. These are turbulent and unprecedented times.”

He added that the company has until June 2009 to repay the USD 3 billion bridge loan taken to buy Jaguar and Land Rover from Ford earlier this year.

Mr Ramakrishnan said that the company's founders paid for more than double their entitlement of INR 15 billion in the issues, raising their stake to 42% from 33%. He said that “We will look at prioritizing expansion and cutting back on some expansion plans.”

As per report, the company's plans to raise USD 850 million through two rights issues this month with the money to repay some of the bridge loan were hit by a stock market slump.

An Indian economist has warned that developed countries have still not recognized the onset of a market crash and are proceeding instead on the assumption that injection of liquidity into the system is all that is needed.

Dr Prabhat Patnaik professor of Center for Economic Studies and Planning at JNU's said that the injection of liquidity is inadequate in a situation where a recession has already started and credit would not start flowing simply because banks could access more liquidity.

He said that there must be adequate demand by solvent and worthwhile borrowers for credit to launch viable projects and that is not happening, participating in a discussion on global financial crisis in New York.

Dr Patnaik said that the problem is that real lives of millions of people were determined by the whims of a bunch of speculators under the free market system who were interested not in the long term yield on assets, but only in the short term appreciation in asset values.

Furthermore he said that the current need is not just for injection of liquidity into the world economy, but also the injection of demand. That could occur only through direct fiscal action by governments around the world.

Mr Joseph Stiglitz Nobel Laureate and former World Bank chief economist opined that the US and the Bretton Woods institutions had failed to adequately address the global financial crisis and the United Nations must intervene as the one institution that was inclusive and had political legitimacy.

One can have an idea about the importance of the construction industry in India from the fact that it is the second largest contributor to the GDP after agriculture. The industry provides employment to more than 3% of the population. Its market size is around USD 55 billion and is growing at around 7% to 8% per annually, faster than the GDP growth. As the Construction sector is growing faster than the country’s project GDP growth, there exist a tremendous potential for development in the related area.

“Directory of Construction Companies in India” is one of the top sources of information available on a construction companies in India. It is one of the most comprehensive and accurate directory of construction companies in India that ever published. This powerful directory is your connection to the entire construction companies in India.

Published in August 2008, “Directory of Construction Companies in India” has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Construction companies.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the construction companies in India, this directory will save you time and effort in finding the information you need. This report will enable you to profile construction companies in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers. It is also an indispensable guide to India’s construction sector.

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

This report covers name and product details of 1000 Construction Companies in India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Construction Companies in India’
1. Company name -1000 entries
2. Address-1000 entries
3. Phone number-951
4. Fax number -652 entries
5. Mobile number-349
6. Email -749 entries
7. URL – 593

Format - PDF File (Total no of pages – 545), delivery by Email on receipt of payment of USD 950 or equivalent in INR. Additional charges would be levied for delivery of file on a CD or in printed form

How to order
Ordering the report is simple. You can order your copy to reports@steelguru.com for getting an invoice for the report.

BL cited Mr N Srinivasan vice CMD of India Cements Limited as saying that India Cements plans to invest over INR 160 crore to set up 40 MW of captive thermal power generation facilities to address the rising cost of power.

Mr Srinivasan said that increase in coal and fuel costs were major factors that dented the company’s net profit by 40% in the Q2 compared with that of the corresponding quarter in the previous year.

EPS 4.7 8.5 -
(In INR crore)

He said that the capacity utilization was more than 100% with gross realization at INR 4,173 a tonnes. The drop in net profit is not a sign of slow down but high costs as demand and margins continued to grow during the quarter.

BS reported that Suzlon Energy which is facing consumer complaints of faulty blades supplies has shelved plans of setting up a tower manufacturing facility and suspended the process to increase its stake in REpower of Germany, in the context of the current financial turmoil.

The board of Suzlon Energy has decided to drop the plan to invest in new tower manufacturing facility. This decision will reduce the wind energy major's capital expenditure by around INR 700 crore.

Mr Tulsi R Tanti CMD of Suzlon said that in another development, Suzlon and REpower have jointly agreed to suspend the process of negotiation of domination agreement for the time being, which will further delay the timetable for integration of the assets.

Mr Tanti said that "We are also in discussion with our partner Martifer on the purchase of shares in REpower and will be taking forward the acquisition on a mutually agreed timeline. We were supposed to complete the deal by December 15th 2008 and they have a bank guarantee till May 2009."

He added that last week Suzlon dropped its INR 1,800 crore rights issue to fund the acquisition. He said that "We are looking at alternate options. Suzlon and Martifer will jointly announce the details at an appropriate time."

As per report, Suzlon currently holds 66% stake in the Hamburg based REpower. The company is also in the process of buying out the 22.48% stake held by Portugal's real estate group Martifer SGPS SA in REpower.

BL reported that Gangavaram port, built by a private consortium headed by Mr DS Raju and Co, is ready for inauguration, but the event is being delayed for the past few months, as Ms Sonia Gandhi chairperson of UPA has to give a date for the function.

It is now learnt that she may agree to inaugurate the port in November, probably in the first week itself.

According to Mr M Venkata Ramana Rao the State Minister for Ports, the date has not been fixed, but it may take place in November. Though the port has not been formally opened, it has already handled 4 or more, vessels on a trial basis. Five berths are ready for operation in the first phase. The berths and the other infrastructure have been built at a cost of INR 1,800 crore.

Gangavaram port, it is apprehended will emerge as a major rival to the main Visakhapatnam port, which has already slipped to the second position ever since the last fiscal from a position of pre eminence for 7 successive years.

Mr Vilas Muttemwar minister of State for New and Renewable Energy said that 23 states have announced policy for private sector participation in Small Hydro Power projects. With this response, investment from private sector in small hydro power projects has been quite good.

Mr Muttemwar said that during the 10th Plan, out of a capacity addition of 537 MW from SHP projects, 336 MW have been set up by the private sector.

SHP projects are governed by State Government Policies. The procedures of allotment of sites and other statutory clearances take some time in the State Governments. The Ministry has been pursuing the States to expedite the process in order to avoid delays.

BS reported that Mahindra & Mahindra has decided to curtail its capital expenditure of INR 5,000 crore in view of the ongoing slump in demand for cars and sports utility vehicles in the domestic market.

M&M which makes SUVs such as Scorpio and Bolero had initially set aside the amount to be spent in the next 3 years. The company has opted to cut its CAPEX without providing further details.

On the sidelines of announcing the brand name for the company's latest model Ingenio, which has been rechristened as Xylo, Mr Pawan Goenka president of Mahindra & Mahindra said that "The market is definitely going through a turmoil. We will come down hard on cutting down our CAPEX. However, it does not mean that we will go slowed on our ongoing projects. I am not in a position to provide the exact details of the cut."

Mr Goenka said that "We will take more risks now and do business with new players who will offer us competitive rates to save on costs." Despite posting an overall growth of almost 22% in sales in domestic and 18% growth in export market, the company”

As per report, the company will look at cutting investment in basically three areas. One, it will look at further optimization of its funds, which means that the company will now spend only 5% as buffer funding instead of 10%.

Secondly, the firm will relook at its funding of automation plans at its production facility. Automation is a tool used at manufacturing facilities, which serve the purpose of robots controlled by computers used in building vehicles.

Lastly, M&M has decided to conduct business with new players in the components or allied areas, which will perhaps provide cost benefits to the company. For instance, the company had outsourced a part of the component manufacturing activity to a lesser known Korean player, which in turn offered rates that were half of then prevailing market rates.

ENS reported that Neptune Orient Lines, the global container shipping, terminals and logistics group, was a double award winner at the recent 10th Lloyd’s List Asia Awards.

Mr Ron Widdows CEO of NOL was named the first ever "Newsmaker of the Year" one of the evening’s top accolades. As per report the recipient is chosen by the senior editorial staff of leading industry newspaper Lloyd’s List from the shipping insurance or energy industries. The winner is deemed to have made the greatest impact on the development of shipping and world trade over the last one year.

Lloyd’s List said that Mr Widdows’ award was richly deserved and he has encouraged greater transparency in the industry and actively lobbied on its behalf for greater recognition at governmental level

NOL’s container shipping business APL was also named Asian Container Shipping Line of the Year. This award is given to the Asian shipping line that the judges assessed as the best in class in the provision of on time and cost efficient container shipping services, as well as innovation in customer service and offerings within Asia.

Mr Widdows said that "These awards are a testament to the talent and dedication of everyone at NOL. Our ability to go the extra mile and deliver value to our customers and shareholders will be further tested as we navigate through these challenging times for our industry."

NOL Group businesses were also finalists in the Ship Manager, Training & Crewing and Logistics categories of the Lloyd’s List Asia Awards.

It is reported that a total of 11,404 MW of power capacity was commissioned till August in the 11th Five Year Plan comprising 8,472 MW of thermal capacity, 2,712 MW of hydro power and 220 MW of nuclear power. With this and including around 12,195 MW from renewables, the total generating capacity rose to 145,627 MW by the end of that month.

Moreover, 64,432 MW is likely from planned projects under construction and another 4,234 MW from additional projects, which takes the likely capacity addition to around 77,070 MW over the plan period. Thermal power would contribute 58,183 MW, hydro 15,507 MW and nuclear 3,380 MW.

The current fiscal is likely to see capacity addition of 7,530 MW of which 2,141 MW was commissioned by August and 5,389 MW programmed to be operational in next 7 months.

The major projects that will see completion over September to March 2008-09 include:

1. 450 MW Baglihar-I hydro power plant of Jammu & Kashmir Power Development Corporation in J&K commissioned on October 10th.

2. 500 MW Kahalgaon-II unit 7 thermal power plant of NTPC Limited in Bihar.

3. 752 MW Sugen Torrent thermal power plant of Torrent Group in Gujarat.

4. 445 MW Konaseema thermal power plant of Oakwell in Andhra Pradesh.

5. 464 MW Gautami thermal plant of Gautami Power in Andhra Pradesh.

6. RAPP units 5 & 6 in Rajasthan and Kaiga unit 4 in Karnataka nuclear power plants of NPCIL.

Jyoti Structures reported a steady growth in standalone net profit for the quarter ended September 2008. During the quarter, the profit of the company increased 18.56% to INR 201.16 million from INR 169.67 million in the same quarter last year.

Its net sales for the quarter increased 32.38% YoY to INR 4,211.54 million, while total income for the quarter increased 32.21% YoY to INR 4,211.62 million when compared with the prior year period.

(In INR million)

Expressindia reported that West Bengal Pollution Control Board has issued a 6 month ultimatum to 31 industrial units in Durgapur, the industrial hub of the state to reduce smoke emissions.

Under the banner of Operation Clear Sky Durgapur, WBPCB scientists have compiled a research study highlighting the deteriorating quality of the air in Durgapur.

Mr Dipak Chakraborty chief scientist of WBPCB said that “In our survey, we found the environment of the Durgapur Municipal area has visible emissions from industries. With the health of more than 500,000 residents at stake, it is important that we take some action to reduce the level of emissions. If the industries fail to stick to the timeline, strict action will be taken against them.”

According to the survey, industrial areas in and around the Durgapur Municipal area, especially on the southern side of NH-2 have been major contributors to the rising pollution level of the industrial town. The study pegs the level of respirable particulate matter in Durgapur to be constantly increasing and way above the national standard. The survey says the RPM level at Durgapur stood at 114 mg/m3 in 2007, almost double the normal level of 60 mg/m3.

A WBPCB official said that “The nitrogen dioxide level is also increasing. As per our research, we have found the current level of nitrogen dioxide in Durgapur stands at 51.5 mg/m3.”

Some of the major polluting industries identified in the survey are Durgapur Steel Plant, Alloy Steel Plant, Durgapur Projects Limited, Durgapur Thermal Power Station and NTPC-SAIL Power Supply Corporation Limited.

According to the study, sponge iron units like Shyam Steel Industries Limited, Haldia Steel Limited, CP Sponge Limited, Ritesh Tradefin Limited and SPS Steel & Power Limited are some of the other units harming the environment of Durgapur. The survey also lists Sova Ispat Limited, Srinivasa Ferro Alloy Limited, Haldia Steel Limited, Durgapur Chemicals Limited, Philips Carbon Black Limited and Graphite India Limited among others whose emissions are detrimental to the air quality of the industrial town.

Tex reported that Japan's Tokyo Steel Mfg Co has reduced what it pays for locally available ferrous scrap by JPY 1,500 to JPY 2,000 per tonne at its four works, effective with October 28th 2008 purchases.

A price reduction of JPY 2,000 per tonne applies to all grades of arrivals at the Okayama and Kyushu works. Another price reduction of JPY 1,500 per tonne applies to all grades of arrivals at the Takamatsu and Utsunomiya works.

As a result, the new delivered prices of number 2 HMS are JPY 16,500 per tonne for seaborne and overland arrivals at the Okayama works, JPY 16,500 per tonne for seaborne and overland arrivals at the Kyushu works, JPY 15,500 per tonne for seaborne and overland arrivals at the Takamatsu works and JPY 15,000 per tonne for overland arrivals at the Utsunomiya works.

Meanwhile, Tokyo Steel is contemplating limiting intakes of local ferrous scrap to overland arrivals at the Okayama works from October 28th 2008 while stopping intakes of seaborne arrivals there for a while. In the background are factors such as favorable overland arrivals at the Okayama works and the need to secure a space there for an import arrival of US ferrous scrap.

(Sourced from Tex Reports)

Australian steel major BlueScope Steel wants that carbon pollution reduction schemes must be global for creating a level playing field otherwise some steel makers will be disadvantaged.

Mr Paul O'Malley CEO of BlueScope told ABC Inside Business program that if a steelmaker in one country were subject to a higher carbon emissions tax, it would be disadvantaged if a competitor in another country were not subject to such a tax or had to pay less.

Mr O'Malley said that “For example, the European Union was looking at a carbon tax of USD 50 per tonne in their base modeling, whereas the Ukraine was looking at zero.”

He said that "If you are in Germany, which is part of Europe, which has been at the forefront of CO2 reductions, the German steelmakers now are very concerned about the competition they have with Ukrainian steelmakers that are only 800 kilometers away by road. Germany may be faced with a CO2 regime; the Ukraine is not. So, steelmakers around the world are starting to see the real concerns around a level playing field."

Mr O'Malley added that "Any costs around CO2 reduction have to be at least equivalent to what our competitors around the world are experiencing.”

He said that "Ensuring that our relative advantage, our competitive advantage both in the export market and domestic market continues really relies on a global solution so to the extent that the modeling assumes a global solution, whether that's a reality will really have an effect on our business. The detail behind the policy is very important, when the detail behind the policy is right I will stop worrying. Until that stage we've got a lot of work to do."

Financial Times reported that ArcelorMittal will probably announce further production cuts, in addition to those made in the past month, when it presents its third quarter results on November 5th 2008.

As per report, Mr LN Mittal chairman & CEO of ArcelorMittal, is also likely to say that expansion plans for the next 8 years will be scaled back.

Reuters reported that Boeing Co's 27,000 assembly workers voted to approve the company's four year contract offer on Saturday, ending a strike that has stopped production at the plane maker's Seattle area plants for 57 days.

Management and the IAM finally reached a compromise on Monday after two months of sporadic talks. Union members will return to work as early as the night shift on Sunday.

Nearly three quarters of the union members voted to approve the new contract and the strike will officially come to an end at midnight PDT.

Mr Mark Blondin IAM Aerospace Coordinator said that "We locked in pension. We locked in health care and there is not a lot of people in this country right now that can say that.”

The International Association of Machinists and Aerospace Workers walked off the job on September 6th 2008 after rejecting Boeing's initial offer, demanding better pay and limits on outsourcing. It was the fourth strike in 20 years by Boeing's biggest union.

TATA Corus has once again demonstrated its commitment to innovation and sustainability through investment in two new facilities at its Shotton site in North Wales. The new state-of-the-art production line is the most automated and efficient in Europe. It is capable of producing 1 million m2 per year of composite panel cladding for the construction sector.

Corus has once again demonstrated its commitment to innovation and sustainability through investment in two new facilities at its Shotton site in North Wales. The first is a GBP 6 million investment in the Corus Panels and Profiles Shotton Panel Line No 1. The new state-of-the-art production line is the most automated and efficient in Europe. It is capable of producing 1 million m2 per year of composite panel cladding for the construction sector. The panel line is located next to an upstream Colorcoat production line and consequently incurs no transport costs for the delivery of its raw material stock, thereby reducing CO2 emissions.

The second project is a joint collaboration between Corus and Australian company Dyesol. Dyesol is a world leader in dye-sensitised systems. DSC (dye sensitised solar cells) is an emerging Photovoltaic (PV) technology that mimics photosynthesis in plants. Corus, in collaboration with Dyesol, has an ambition to develop, manufacture and market metal roof and wall cladding products with dye sensitised cell photovoltaic functionality to complement its existing business. The ambitious £11 million project has been supported by the Welsh Assembly Government and is seen as being in line with its objective of creating high value-added employment in Wales, based upon innovation and the renewable energy sector.

Mr Rhodri Morgan, First Minister for Wales officially opened the facilities at the Shotton plant. The First Minister said: “Corus have a long and proud history of continued investment in Wales, from the production of the steel itself right through the supply chain to its downstream businesses. These latest investments will diversify the Corus range of high value added finished products. They are yet another example of how Corus continually looks to innovate and invest in delivering some of the most sustainable products available to today’s construction sector, not only in the UK but in Europe as well. During difficult times in the construction sector, it is more important than ever for companies to be right at the forefront of new environmental technology exploiting new niche markets. That’s what today’s product launches are all about.”

Reuters reported that US economy has suffered its sharpest contraction in 7 years in the third quarter as consumers cut spending and businesses reduced investment at the onset of what may be a severe and long lasting recession.

The Commerce Department said that US gross domestic product shrank at a 0.3% annual rate as the biggest pullback by consumers since 1980 overwhelmed an increase in government spending.

Mr Janet Yellen president of San Francisco Federal Reserve Bank has called the economy's recent performance deeply worrisome and said that the downturn was set to worsen. For the fourth quarter, it appears likely that the economy is contracting significantly and the bottom is not yet in sight for slumping housing prices.

The typical definition of a recession is consecutive quarters of shrinking national output, a condition that would be met if fourth quarter GDP declines as anticipated, though analysts already expect the slump to last nine months or more. The drop in GDP was widely expected but the decline was not as great as feared, soothing the angst of investors who bid US stocks up in the hope that interest rate cuts by central banks around the globe can ward off a deeper downturn.

Commercial Metals Company has reported net earnings of USD 232 million on net sales of USD 10.4 billion for the year ended August 31st 2008 as compare with net earnings of USD 355.4 million on net sales of USD 8.3 billion last year. The annual results included after tax LIFO expense of a record USD 209 million as compare with after tax LIFO expense of USD 33.3 million.

LIFO is an inventory costing method that assumes the most recent inventory purchases or goods manufactured are sold first which in periods of rising prices results in an expense that eliminates inflationary profits from net income. Changes in LIFO are not write-downs, write offs or market adjustments. They are changes in cost components based on an assumption of inventory flows.

Fourth quarter net earnings were USD 63.5 million on net sales of USD 3.1 billion as compare with USD 104.7 million on net sales of USD 2.3 billion for the fourth quarter last year. The current year quarter included a record after tax LIFO expense of USD 90.9 million as compared with after tax LIFO income of USD 5.7 million in last year's fourth quarter.

Mr Murray R McClean chairman, president & CEO of CMC said that "The quarter continued the upward volatility in ferrous scrap pricing, and steel finished goods pricing outpaced ferrous scrap pricing resulting in metal margin expansion. Management had anticipated a softening of ferrous scrap prices which did occur, but not until the end of the quarter. The increased prices plus in transit inventories led to yet another enormous LIFO charge. The record LIFO expense of USD 0.78 per diluted share was the third quarterly record in succession. Though the LIFO charge affords the Company a significant tax deferral, it does mask the underlying strong markets. The continued upward trend in metal pricing propelled our Americas Recycling segment to an all time quarterly earnings record. For the second quarter in succession, the Americas Mills segment had increases in tons melted, rolled, and shipped. Continually escalating prices waylaid the Americas Fabrication and Distribution operations with a staggering LIFO charge and further margin compression. In the International Mills segment, our mill in Poland was the star performer while we continued the turnaround in Croatia. Our International Fabrication and Distribution segment set an all time fourth quarter earnings record."

McClean said that "With demand strong and scrap prices rising, our Americas Mills segment's tons melted, rolled, and shipped all exceeded last year's fourth quarter. Prices increased each month of the quarter leading to a pre tax LIFO expense of USD 40.2 million compared to income of USD 135 thousand in the prior year fourth quarter. Our steel mills adjusted operating profit of USD 45.1 million was down 14.7% compared to the prior year fourth quarter on the heels of a USD 41.5 million pre tax LIFO expense as compared to a negligible amount last year. Metal margins were 11% higher at USD 390 per ton, necessary to keep pace with higher costs for utilities, freight and alloys."

BNamericas reported that Brazilian integrated steelmaker Usiminas' performance in the third quarter, including a 16% YoY rise in profits to BRR 880 million, will likely be the best the company posts this year.

An analyst for Banif Securities in Rio de Janeiro said that "Results were very good but I believe Usiminas reached a peak this year. The company's EBITDA of BRR 1.89 billion was above expectations."

The analyst, however, expects lower steel prices in the next three quarters and said the company will have to make revisions on volume production in coming months. Despite the positive results, the Banif analyst noted the hefty expenditures Usiminas doled out in Q3, totaling BRR 537 million.

He added that "I believe the company had to pay some kind of debt payment in US dollars during this recent period in which the dollar has strengthened against the real. But in general, the results consolidate the company as the leader in the Brazilian domestic steel market."

Looking ahead, the Banif analyst highlighted the risk Usiminas has taken on by expanding both upstream and downstream. He said that "Usiminas is entering new businesses in a turbulent period, coupled with a USD 14.1 billion capital expenditure program. Returns for shareholders in the next few months will likely not be as good as in the next few months, especially in regards to dividend distribution."

Mr Pedro Galdi, an analyst at SLW Brokerage in São Paulo said that steel prices made the difference in Q3 results compared to one year ago. He added that "Prices were very strong, 10% above the local market compared to Q2 and 20% higher than the international market. As a result they obtained interesting net revenues in Q3 of BRR 4.45 billion, 23% above last year's numbers."

Mr Rodrigo Ferraz an analyst with the Brascan brokerage in Rio de Janeiro was also upbeat about Usiminas' performance. He said that "Earnings were above our expectations, especially the company's EBITDA. As we expected, despite stable sales volumes, higher prices positively influenced domestic sales and exports."

(Sourced form BNAmericas)

It is reported that steel manufacturing unions from across the globe will meet in Japan this week to discuss the impact an emissions trading scheme would place on their industry given the current economic crisis.

As per report, Australian Workers' Union officials will meet with leaders from Australia, USA, UK, Canada, South Africa, Russia, Korea, India, Brazil and Japan to discuss how best to co-operate with the introduction of a scheme.

Mr Paul Howes national secretary of AWU said that "I will be comparing the important findings of the Australian Treasury about emissions intensive steel making with other unions across the globe involved in this industry. The Steel Action Group has been called together to look closely at climate change, technology transfer, the environment and current international economic conditions. Our members in the steel industry are rightly concerned about the compensation regime for their internationally exposed industries."

He said that many of the unions involved in the discussions would be able to influence their local political agendas. He added that "Together we have the potential to join up domestic schemes, build sectoral agreements among producer countries all as a stepping stone to a comprehensive global framework."

Mr Howes said that steel unions in fast developing countries like Brazil and India would play important roles in the discussions.

It is reported that ship owners all over the world, not to mention Hellas, have been left bewildered after the continuous slump of ocean shipping rates, now facing all time lows, less than 6 months after their all time highs. The plunge of the Baltic Dry Index founded its sub 1,000 levels reached and continued their fall to reach the level of 925 after dropping by a further 57 basis points.

Needless to say that cold sweat is already upon ship owners, who are witnessing this devastating fall, not being able to react. What is certain is that some are thinking of idling their vessels, which are losing money on a daily basis. Those which opted for long time charters on the back of the market’s surge are now reaping the benefits of their choice. But even they can’t help but wonder when their charterer will knock on their door and ask for a renegotiation of their contract.

Nothing is certain these days, with commodities trade grinding to a halt. Some analysts estimated that with most stock markets rising yesterday, on hopes of rate cuts the Baltic Index kept its downward trend. This is a clear indication that the consequences of the financial crisis are taking their toll on real economy and trade. On the contrary, the tanker sector has enjoyed a good run, which is also thought to be nearing an end. Should this scenario materialize the shipping industry will face a major shakedown and shift of power, with the survival of the fittest being the norm.

In its report recently, Fearnleys said that "With recession looming in key countries, a paralyzed financial and trading sector, the ongoing stalemate Vale-vs-China and disturbing statements from troubled dry bulk players, there is no reason to cheer for owners of cape tonnage. Spot activity is next to nothing, every fresh enquiry is a sensation, and a total of close to 40 units are presently idle worldwide."

It also marked that as talks for the 2009 ore contracts officially start, the balance of power is quickly shifting back to ore buyers. Despite this year’s price differential, China’s mills are now pushing for a return to unified pricing, where one size fits all.

Meanwhile plans by the mining groups to pursue more spot sales are also falling by the wayside as spot prices tumble. It all points to another keenly debated round of negotiations.

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 750 or INR 37,500
(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

WYTV.com reported that when workers at Concord Steel showed up for work today in Warren they found themselves locked out by their employer at Warren plat in Ohio.

As per report, Local 2243 United Steelworkers have been in contract negotiations since August, and Concord Steel gave its last and best offer yesterday. But an agreement was not reached.

Mr Kirk Davies US WA staff representative said that "Our employees do not like striking and they do not like being locked out. They prefer to work and support their families. We had made an offer to work and continue bargain, that offer is still there at any time.”

Mr Paul Verse president of Concord Steel said that "In order to avoid labor disruptions in the absence of contract, we needed to maintain critical customer delivery time and to secure the plant. The unionized wok force at our Warren facility has been locked out until further notice.”

Concord Steels however said that they are willing to go back to the bargaining table to reach a fair agreement. About 100 unionized employees work at the Warren plant.

TATA Corus announced that Corus International, the supply chain management arm of Corus, has opened a new sales office at Sofia in Bulgaria.

The release said that “The new team will focus on developing opportunities for Corus in Central and Eastern Europe and on putting together steel supply packages for in country projects in the infrastructure, energy and construction sectors. They will also work alongside Bulgarian contractors that are involved in major projects overseas in their steel sourcing.”

Corus’ Bulgaria facility is managed by Mrs Joana Kehlibarova.

Mr Maciej Zurek regional manager Central and Eastern Europe said that “The newer EU member states, including Bulgaria, are attracting significant inward investment. The effect of this on steel consumption over the long term will mean that this market will continue to present new opportunities for Corus.”

This new office adds to Corus International’s already extensive Central and Eastern European network that includes facilities in the Czech Republic, Hungary, Poland, Romania, Russia, Ukraine and Turkey.

Sunday Observer reported that the demand for steel on the local market has declined over the last three months, resulting in a corresponding decrease in prices for the commodity to boost sales.

Mr Bruce Bicknell MD of Tank-Weld's, country's largest importer of construction steel, told the Sunday Observer two weeks ago that "All our sales have gone down by 35% in volume and prices have dropped by about 40%.”

He said that "In the past three months, we have been reducing our prices to match those on the world market. We were at JMD 100,000 plus tax per tonne and within the last week we dropped it even further to JMD 70,000 wholesale."

Meanwhile, the decline in demand has negatively affected the local construction sector as is suggested by Tank-Weld's falling sales. However,
Mr Bicknell said the situation presented the Jamaican government with a golden opportunity to boost the sector. He said that "During this crisis there are opportunities that we can benefit from if we really take advantage of them. Because construction is the largest employer in the country, with all the reduction in prices it is an excellent opportunity for government to spur on investment and create jobs.”

The Korea Times reported that Korea's shipping industry is starting to feel the domino effect of the financial crisis that originated in the United States.

An executive from Hanjin Shipping said that "The plunging Baltic Dry Index is weighing upon us. We don't have any plan to stop operating our bulk carriers for the time being. The situation is truly bad."

Korean shippers had strongly believed that the demand in emerging markets was still strong and the drop in Chinese iron ore and coal imports would affect cargo demand only temporarily. But the wide spreading global credit crunch has turned out to be far greater than the cargo industry's previous perceptions.

An official from STX Pan Ocean said that "Some mid sized shippers are virtually in a panic as soaring material costs and deepening global crisis are cutting demand for bulk carriers."

Mr Lee Won jong an analyst at Hanwha Securities said that "The sliding BDI will hit STX Pan Ocean in the fourth quarter. The number of operating bulk carriers decreased to 400 as of the end of September from 460 in the second quarter."

Steel giant Corus has announced that it is to pay GBP 0 a tonne for steel cans delivered to its network of CanRoute collection centers across the UK from November 3rd 2008.

The dramatic fall in price comes just two weeks after it slashed prices from GBP 95 a tonne to GBP 10 a tonne as a reflection of increasingly volatile global markets, following a peak of GBP 235 per tonne between May and July 2008. The price cut represents more bad news for councils, waste management companies and scrap metal merchants who are already struggling during the economic downturn. One scrap metal merchant told letsrecycle.com that the price cut could make it financially unviable to collect the materials in the first place.

Corus attributed once again attributed the price drop to the change to falling demand for new steel products. It said that "This reduction, from GBP 10 per tonne, is due to the global economic slow down and the resulting decline in orders for new steel products in the UK, particularly in the automotive and construction sectors. A knock on effect of this reduced demand for new steel products is a reduction in demand for all scrap steel to be used in the steel production process, resulting in a drop in demand and value of steel packaging delivered to CanRoute centers."

Commenting on the outlook over the next few months, Corus said that "Corus will continue to monitor developments in the scrap steel market and will review the price on an on-going basis. We will not accept any new applications for CanRoute supplier status for the time being, but we are happy to discuss alternative markets for the material with collectors. Corus remains committed to the recycling of packaging scrap in the UK. We understand the importance of recycling this material and will provide a market wherever possible."

(Sourced from letsrecycle.com)

It is reported that Konecranes has acquired the business of the Canadian crane and crane service company Provincial Services Crane Specialists.

Konecranes acquired the assets from the owner, who will remain with the company for a transitional period. The company has 20 employees and net sales of approximately EUR 4 million. The value of the acquisition was not disclosed.

Provincial Services Crane Specialists was founded in 1980 and is today a recognized name in the Canadian lifting market. It is specialized in overhead crane inspection, maintenance, repair, spare parts, modernization and lifting equipment.

It sells its products and services directly to end users in the steel, mining, power and general manufacturing industries. Through the acquisition, Konecranes will be able to expand its Canadian operations in these industries.

Mr Keith King president of Konecranes Canada Inc said that "The market coverage of Provincial Services is quite complementary to ours. Provincial Services will help to provide us with entry to the primary steel industry along with their specific knowledge of this industry, close relationships and Konecranes technologies."

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, ferroalloys, consumable suppliers, raw material sellers, equipment makers and others.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

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

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

Look at the information you'll get in the 'Indian Steelmakers Directory'

• Company name -723 entries
• Address-723 entries
• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

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

Price: USD 1250 or equivalent in INR
(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

The bond holders said that part of Kremikovtzi loans should be remitted. With their EUR 325 million worth bonds, they are the plant's second largest creditor, the first being the Bulgarian government. They said that the state should remit some of the plant's debts, so as to save it from bankruptcy.

The management of Kremikovtzi was expecting an offer from the Ukrainian company Smart Group, which is part of Rinat Akhmetov's Metinvest Holding. Akhmetov's representatives had talks with the bankruptcy officer of the steelmaker in the afternoon and promised to send an offer about running the plants and making future investments, but such was not received.

Akhmetov's Metinvest Holding is interested in running and eventually acquiring Bulgaria's largest steel maker Kremikovtzi. The news was announced by the leader of the Kremikovtzi division of the Confederation of the Independent Trade Unions in Bulgaria Mr Vassil Yanachkov after his meeting with the Ms Nina Radeva deputy minister of economy & energy.

Meanwhile, Mr Petar Dimitrov economy & energy minister of Bulgaria said that the state would buy Kremikovtzi output only if it meets the quality standards.

Metal Expert reported that in October 2008, Korean Hyundai Steel has resumed operation of the 70 tonnes EAF of ladle furnace with 700,000 tonnes per annum and billet caster of the same capacity at Incheon plant. The equipment was stopped three years ago. Its re launch has increased the steelmaking capacity of Hyundai Steel to 11.9 million tonnes per annum.

It was earlier planned to increase the output of beams by about 400,000 million tonnes per annum to 500,000 million tonnes per annum, to 3.2 million tonnes per annum, by way of increasing the production of beam blank used for subsequent re rolling into beams.

At this moment, however, due to the crisis in constructional sector, the company is planning to switch from beams onto production of angles for shipbuilding applications.

Hyundai Steel is currently selling its products basically to domestic market, exporting some 15% to 20% of them throughout the world. In future, the structure of sales may be changed, depending on the market situation.

Olympic Steel Inc has announced its financial results for the third quarter and first 9 months of 2008. Net sales for the third quarter of 2008 totaled USD 335.2 million, up by 30.9% YoY from the USD 256.1 million for the third quarter a year ago. Third quarter 2008 net income totaled USD 24.2 million as compared to net income of USD 6 million for last year’s third quarter. Tonnes sold decreased by 13.4% YoY to 268,000 from 309,000 in the third quarter of 2007.

Net sales for the first 9 months of 2008 increased by 22.8% YoY to a record USD 973.6 million as compared to last year’s 9 month net sales of USD 792.9 million. Net income for the first 9 months of 2008 totaled a record USD 66.9 million as compared to USD 20.7 million for last year’s first 9 months. Tonnes sold in the first 9 months decreased by 2.1% YoY to 937,000 from 957,000 in the first 9 months of 2007 as compared to the Metals Service Center Institute statistics of a 6.6% decline in total steel shipments in the United States for the first 9 months of 2008.

Mr Michael D Siegal chairman & CEO of Olympic Steel said that "We are pleased with our record year to date 2008 performance. For the first nine months of 2008, we have achieved record sales and earnings, gained market share in a depressed demand environment, and maintained a particularly strong balance sheet, with shareholders’ equity per share now totaling USD 29.67."

He added that "Given the uncertainty surrounding the economic and financial environment, there is limited forward market visibility. We believe we are appropriately positioned for these challenging economic conditions with a strong, low leveraged balance sheet, and a proven disciplined approach to working capital management and turnover. We continue to actively invest in our future growth with USD 24.4 million of year to date capital spending on facilities, equipment and our new information system. We expect to maintain our balance sheet strength with positive free cash flows and lower debt levels in the foreseeable future."

Olympic Steel’s board of directors has also approved a regular quarterly cash dividend of USD .05 per share to be paid to shareholders of record as of December 1st 2008 and distributed on December 15th 2008.

Tex reported that Japanese integrated steelmakers face growing difficulties in executing actual HR coil exports to South Korea under the existing supply contracts for shipments in the October to December 2008 quarter.

There are marked cases of delayed LC openings for October 2008 shipments. Besides, local customers have yet to present the Japanese steelmakers with assorted orders to meet what they will produce in November. As a result, there is a possibility that the Japanese steelmakers will give up part or some of October to November shipments. Also, it is likely that what the Japanese steelmakers provide for the Korean customers will further decrease under the existing contracts for Q4 shipments. Some of the Japanese steelmakers are said to have held down their Q4 supply volumes to a quarter of what they usually take up.

A depreciation of the Korean won to the US dollar once halted. On last weekend, though, the depreciation advanced to KRW 1,410 to USD 1. As a result, there are moves to reject LC openings among South Korea's major banks, combined with a shortage of US dollars.

The Japanese steelmakers and South Korea's various HR coil users have long business relations and a close relationship of mutual trust. Until now, no problem has arisen between the two sides even if South Korea's major banks assume no LC openings right before each shipment of HR coils from Japan. The present situation, though, makes it difficult to follow the usual practice, an environment in which the Japanese steelmakers need to hold back on what they produce until LC openings take shape.

Meanwhile, there are signs that South Korea's various HR coil users have refused LC openings for HR coil imports from Chinese steelmakers under the existing supply contracts. The Chinese steelmakers' initial export prices of HR coils for South Korea were said to have stood at a level of USD 900 to USD 950 per tonne FOB for Q4 shipments. It is understood that the Chinese steelmakers are perplexed at the Korean refusal of LC openings because they started HR coil production for South Korea before the LC openings. The Korean users are said to have requested the Chinese steelmakers to supply HR coils at prices that compare with what applies to domestic sales in China on the argument that China's domestic HR coil market is on the downside.

The Korean users' price requirements are described as around USD 800 per tonne FOB for October to November shipments and around USD 700 per tonne FOB for December shipments. The Korean users are quoted as saying that they will reject LC openings unless their price requirements are met.

According to market sources, in this connection, South Korean buyers have begun to seek a similar price reduction in negotiated imports of heavy plates from China in the knowledge that China's domestic prices of heavy plates are trending downward.

(Sourced from Tex Reports)

It is reported that General Motors Corporation has asked the US government for roughly USD 10 billion in an unprecedented rescue package to support its acquisition of Chrysler LLC from Cerberus Capital Management.

As per report, the government funding would include roughly USD 3 billion in exchange for preferred stock in a merged automaker. The request for federal aid has been led by GM.

GM has been in talks with Cerberus about buying Chrysler since last month, but the discussions have been snagged by difficulty in securing investment or financing at a time when credit is tight and global auto sales are rapidly declining. A decision by the Bush administration to provide the government's first funding for the auto sector since the $1.5 billion bailout of Chrysler in 1980 has been widely seen as the merger's best chance for success.

The merger discussions have remained fluid and there was no guarantee the government would provide the support needed to facilitate the merger. An injection of USD 3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top US automaker. It would also give US taxpayers a large and potentially risky stake in the turnaround of a struggling auto industry that employs more than 350,000 American workers.

In recent days, GM has focused on detailing Chrysler's pension obligations, sources close to the talks have said. While those considerations are reflected in its request for government aid, the automaker has not suggested a transfer of those obligations to the government.

News & Star reported that an ambitious vision for a GBP 100 million transformation of Workington’s former Corus steelworks has reached a major milestone with developers revealing their final proposals.

An artist’s impression of Eatonfield Developments’ plans for the GBP 100 million revamp of the old Corus site in Workington.

The showpiece scheme will include 651 houses and apartments, shops, hotels, and leisure facilities including tennis courts, a swimming pool and a bowling green. Property firm Eatonfield Developments bought the 87 acre site in Mossbay last year and hope it will provide a lucrative economic lifeline for the town, creating 1,500 jobs.

Corus has said in its application to Allerdale Council that "The redevelopment of the extensive former Corus site will create a new neighborhood within Workington."

It added that "We fully appreciate the council would want to ensure the content of the retail outlets does not detract from the town centre and we are fully on board with that. An element of retail which will include local district shops in the proposal that is being investigated."

Demolition, which started on the Mossbay site in January, is now complete. If outline planning application is approved, the development will be completed in three phases. The first will include offices, a public house, play barn, retail outlets, a restaurant, hotel, starter units, 85 apartments and 138 houses. It would also provide a business park around a courtyard. The second phase would include light commercial shops, 65 apartments and 213 houses.

Swedish steel maker Svenskt Stal AB announced that its third quarter result

Highlights of Q3 result are:

1. Sales increased by 29% to SEK 13,399 million of which the North American Division accounted for SEK 4,244 million

2. Operating profit was SEK 2,640 million, of which the North American Division accounted for SEK 827 million.

3. Profit after financial items was SEK 2,734 million and excluding non recurring items was SEK 2,734 million
4. Profit after tax was SEK 1,943 million an increase of 202% entailing earnings per share of SEK 5.91.

5. Cash flow from current operations for the entire operation was SEK 903 million, an increase of 62%

6. The net debt/equity ratio increased during the quarter from 42% to 46% due to the negative impact the foreign currency translation had on the USD based financing

Mr Olof Faxander president & CEO of SSAB said that “Notwithstanding that the third quarter is normally a weak quarter, SSAB demonstrated a continued, very positive earnings trend. The North American operations made a very significant contribution to the positive trend and the integration is going according to plan. With the third quarter, we have fully compensated ourselves for the significant price increases on raw materials earlier this year.”

He added that “The cash flow for the quarter was satisfactory, particularly taking into consideration the negative impact of payment during the quarter of retroactive price increases on raw material attributable to the first half of the year in the amount of approximately SEK 750 million. It is our assessment that there will be a decrease in our volumes for the rest of the year. It appears that the prices of our niche products will continue to be stable while the prices of our commercial steels are expected to decrease slightly.”

Mr Faxander said that “It is very difficult to evaluate the impact of the financial instability on the steel industry. The fact that the steel industry's co-operation organization, World Steel Association, recently declined to make a forecast regarding the performance of the steel market during 2009 underscores the difficulty in assessing how the world market for steel will develop. Our concentration on niche products makes us less sensitive to negative economic trends. Even if growth in steel consumption as a whole declines, the motivating forces for a substitution from simpler steel to more advanced high strength steel remain.”

General Maritime Corporation has reported its financial results for the three and 9 months ended September 30th 2008. Excluding other income, it recorded net income of USD 22 million for the 3 months ended September 30th 2008 as compared to USD 6.2 million for the 3 months ended September 30th 2007. Other income, which primarily includes realized and unrealized gains and losses on freight, and bunker derivatives, was USD 1.4 million for the quarter ended September 30th 2008 and USD 4.8 million for the prior year period.

Other income for the quarter ended September 30th 2008 included a USD 2.6 million unrealized gain associated with the change in fair value of our freight derivatives and a USD 1.2 million loss associated with the monthly cash settlements of our freight derivatives. Net income was USD 23.5 million for the 3 months ended September 30th 2008 as compared to net income of USD 10.9 million for the 3 months ended September 30th 2007. The increase in net income was principally the result of higher TCE and utilization rates realized in the current quarter versus the prior year period.

Mr Peter C Georgiopoulos chairman, CEO & president of CMC said that "Our past success increasing the company's time charter coverage enabled us to post strong results for the quarter. Drawing upon our contracted revenue stream, we are pleased to have once again met our quarterly dividend target. Including our third quarter dividend of USD 0.50 per share, we have now declared USD 26.78 per share in quarterly and one time dividends. Complementing this success, we are pleased to have entered into an agreement to merge with Arlington Tankers which we believe will create significant long term shareholder value. Specifically, we believe the combination will create a leading tanker company with a large diverse double hull fleet and a stronger balance sheet to take advantage of future growth opportunities. We also believe the combined company will have key highlights including a partial dividend payout structure, an initial USD 2 fixed annual dividend target and approximately USD 450 million of contracted revenues through 2013."

EBITDA for the 3 months ended September 30th 2008 was USD 44.1 million as compared to USD 31 million for the 3 months ended September 30th 2007. Net cash provided by operating activities was USD 36.3 million as compared to USD 18.5 million. Currently, CMC has net debt of approximately USD 615 million.

Net income was USD 41.3 million for the 9 months ended September 30th 2008 as compared to USD 39.4 million for the 9 months ended September 30th 2007. Net voyage revenues increased by 22.9% YoY to USD 199.1 million as compared to USD 162 million. EBITDA was USD 102.5 million for the 9 months ended September 30th 2008 as compared to USD 91.6 million for the 9 months ended September 30th 2007.

Meanwhile, CMC's board of directors declared a Q3 2008 quarterly dividend of USD 0.50 per share payable on or about December 5th 2008 to shareholders of record as of November 21st 2008.

Reuters reported that Komatsu Limited has cut its annual net profit forecast by 13% to below market expectations on slowing demand and a stronger yen.

It also said that it would spend up to JPY 30 billion to buy back up to 4% of its stock, which has lost three quarters of its value in the past five months on concerns a slowing global economy will hit demand for its machines.

Komatsu, whose Japanese rivals include Hitachi Construction Machinery Co, said that it now expects to book a net profit of JPY 190 billion for the year to March instead of JPY 219 billion, which would have been a record for seventh straight year.

The revision also comes just a little over a month after Komatsu CEO Mr Kunio Noji said hat he was confident the company would be able to hit its targets, helped by strong sales in China and other emerging markets.

In addition to a sharp drop in the currencies of resource rich economies, the dollar and the euro, Komatsu also attributed the revision to expectations that demand for construction equipment will remain slack in the US, Europe and Japan.

Komatsu is not alone. Earlier this week, Hitachi Construction cut its net profit forecast by 17% while US based Caterpillar warned last week that the heady sales growth of recent years is grinding to a halt.

GMA News reported that Manila based International Container Terminal Services Inc has signed an agreement with the Brunei government, allowing the company to assist in designing and building the country’s Pulau Muara Besar container terminal.

ICTSI said in a disclosure to Philippine Stock Exchange that it is the preferred port operator of the Brunei Economic Development Board. It added that "The BEDB will award a Concession Agreement to ICTSI or its subsidiary to operate the PMB Container Terminal once it is completed and ready for commercial operation."

ICTSI, the Philippines’ largest port, runs four facilities in the Philippines such as the NSD Waterfront Area at the Subic Bay Freeport Zone in Zambales, Bauan International Port in Batangas, Sasa International Port in Davao City, and the Makar Wharf in General Santos City, South Cotabato. It also manages other facilities abroad through its other subsidiaries including Brazil, Poland, Japan, Madagascar, Indonesia, Syria, China, Ecuador, Georgia and Colombia.

Arab Steel reported that the total production at Hadeed of Saudi Iron & Steel Company amounted to 3.850 million tonnes during the first nine months of 2008.

Sales to the domestic market of long and flat products accounted for about 85.7% of the total sales, while exports constituted the rest of products. Most of these exports are concentrated on the flat products, the volume of which amounted to 414,000 tonnes against 134,000 tonnes of long products.

The domestic sales of long products reached 2.2 million tonnes while flat products were 1.1 million tonnes.

The index fell in line with the global trend.

MLPPI – Middle East Long Product Price Index
MFPPI – Middle East Flat Product Price Index
MEASPI – Middle East Steel Price Index

Long products

Flat products

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

Trend for the some steel products
Rebars
BS4449 Grade 460B

Change on October 30th is with respect to prices on October 22nd

Wire rod
SAE 1008

Change on October 30th is with respect to prices on October 22nd

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

A Stroytransgaz delegation headed by Chairman of the Management Board Mr Vyacheslav Makhonin recently completed a two week visit to Syria. The visit was marked by the signing of a contract to construct an extension of the Arab Gas Pipeline.

Director of the Syrian Gas Company Mr Ali Abbas signed the contract on behalf of his company. First VP Mr Leonid Bokhanovsky and First VP Mr Evgeny Zagorodny were present at the signing ceremony to represent Stroytransgaz.

The Arab Gas Pipeline Project Phase 2 will run 62 kilometers and have a diameter of 36 inches. Its route will run from the Turkish-Syrian border in a southerly direction to Aleppo, the site of the pressure reduction and metering station. The contract will be conducted on terms.

In addition to laying the linear part of the gas pipeline, the contract provides for Stroytransgaz to build the metering station of 3 million cubic meters of gas per day capacity, construct systems for automatic control, and install SKADA, telecommunications, and monitoring and control instrumentation for detecting gas leakage and extinguishing fire.

The project will be completed in 18 months at a cost of EUR 45.2 million.

MEED reported that selected companies have been invited to submit proposals by November 20th 2008 for a tower at least 1 kilometer high at the AED140 billion (USD 38 billion) Nakheel Harbor & Tower development in Dubai.

The companies are the local/Australian Al-Habtoor Leighton, the local/UK Al-Naboodah Laing O'Rourke, South Africa's Murray & Roberts Construction (Middle East), South Korea's Samsung Corporation, Japan's Taisei Corporation and France's Vinci Construction Grand Projets.

The tower will be developed over a period of 10 years. The client plans to shortlist two groups by the end of the year and select one group to provide pre-construction services by early 2009. The pre construction period is expected to last for at least one year.

Enabling works on the development are being executed by France's Soletanche Bachy. The package is scheduled for completion in October 2010 and work on the tower's superstructure is expected to follow shortly after.

The tower was originally called the Pinnacle and was to be located on the Palm Jumeirah, before becoming part of the Dubai Waterfront scheme, when it was renamed Al-Burj. The development will be built alongside the proposed Arabian Canal and next to Ibn Battuta Mall and Jumeirah islands. It will cover an area of 2.7 kilometers and will be home to more than 55,000 people.

The consultancy team for the tower includes UK-based WSP, US-based Leslie E Robertson Associates and Australia's Woods Bagot.

(Source: MEED)

Arab steel reported that the production at the Libyan Iron and Steel Company during the first nine months of 2008 amounted to 439,328 tonnes of long products as against to 403,647 tonnes during the same period of 2007 up by 8.7% YoY.

The company's production of reinforcing steel amounted to 324,000 tonnes as against 315, 000 tonnes during the same period of 2007, achieving a growth rate of 2.8% YoY while production of rods achieved a growth rate of 55%.

Production of flat products amounted to 387,986 tonnes against 451,567 tonnes during the same period of 2007.

The company increased the volume of its exports of flats during the first nine months of this year by 325, 000 tonnes as against 305,000 tonnes during the same period of 2007 up by 6.6% YoY. It also increased its sales of flats to the domestic market. These sales reached 74,000 tonnes as against 57,000 tonnes during the first nine months of 2007 up by 29.8% YoY.

Company's sales to the domestic market during the first nine months of 2008 reached 804,000 tonnes as against 733,000 tonnes during the same period of 2007 up by 9.6%.

Mr Gholamhossein Nozari oil minister of Iran has said that Iran wants India to commit to a project to export Iranian gas via Pakistan to the south Asian giant and measures have already been discussed to ensure supply security. Mr Nozari was speaking after talks in Tehran with visiting Indian foreign minister Mr Pranab Mukherjee.

Mr Nozari said that "Considering that we have lost many opportunities in the peace pipeline project due to India's procrastination, we have told that country to engage more actively. The security of this project in each country will be with that country and negotiations so far have created conditions that have assured us this security will prevail."

Mr Pranab Mukherjee said that "India's announcement to join the peace pipeline project means that India has no plan to leave it. There has been much negotiation with Pakistan in connection with the cost of transit and establishment of security in the peace pipeline, of which the creation of a joint company might be able to bring about the means."

Analysts said that India has been treading cautiously over the USD 7.6 billion pipeline project because it wants to reduce the risk of supplies being cut during times of tension with Pakistan.

Iran has previously said it would press ahead with the long standing project even if India did not join in.

Qatar Steel has celebrated its 30th anniversary on October 27th 2008 with a gala celebration at the Ritz Carlton.

The event was attended by Mr Yussef Hussein Kamal minister of economy & finance, Mr Sheikh Nasser Bin chairman of Qatar Steel and Mr Hamad Al Thani director and general manager in addition to ambassadors, business men, Qatar Steel officials, executives, guests and a multitude of satisfied and grateful industry clients.

Mr Hussein Kamal said that "Qatar Steel has achieved 30 years of excellence with several international awards bestowed on it. These years were distinguished by difficult and rewarding endeavors which focused on development and expansion, seeking to maintain a leading position in the steel industry in Qatar and in the region."

He added that "This economic and industrial boom has imposed on Qatar Steel the necessity to keep up with the factual trends and rational developments in the country. Our main aim has always been to support in building Qatar as a state of institutions, and contributing to the economy and growth to stay in the lead and to maintain our position as a strong force in supporting the economic boom the country is experiencing, and above all to achieve the vision that His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the country, has designed and set forth."

During the celebration, Mr Yussef Hussein Kamal honored and awarded nine loyal traders and 30 dedicated employees who accompanied Qatar Steel in its long journey.

Many clients praised Qatar Steel's commitment for providing personal attention for its customers and the company desire to walk together with the client, despite the company dynamic growth in an ever expanding and competitive industry. Others noted the role Qatar Steel has played in the development of the region and in the industry itself and commended the steel producer experience and focused vision toward progress, naming the pioneering business a revolutionary name in the steel industry.

PTI reported that India and Iran has strongly pitched for increased two way investments in various fields as they finalized the Double Taxation Avoidance Agreement and decided to conclude a pact on promotion and protection of investments at the earliest.

Mr Pranab Mukherjee external affairs minister of India, who met Mr Mahmoud Ahmedinejad president of Iran and Mr Gholam Hossein Nozari oil minister, asked Tehran to implement the bilateral agreement of 2005 on supply of LNG as he affirmed New Delhi commitment to the proposed USD 7.4 billion Iran Pakistan India gas pipeline project.

Mr Mukherjee also pitched for greater Indian investment in Iran, including in petroleum sector, a proposal that found acceptance in Tehran which said it was undertaking major economic reforms to allow entry of private companies in various areas and Indian firms could explore the possibilities.

While inaugurating the Joint Commission meeting that discussed ways to enhance cooperation in various specific areas of energy, trade and investment, mining and railways, he said that "India and Iran have common interests and perceptions. The leaderships of our two countries have, therefore, always unreservedly stood for a broader and multi dimensional engagement."

Mr Shamsedin Hosseini economic affairs minister of Iran, who co chaired the Joint Commission meeting with Mr Mukherjee, said that fundamental reform is being undertaken in his country to promote activities of the non government sector.

Emirates Business reported that investment in the UAE's industrial sector is set to rise from AED 72.6 billion in 2007 to AED 100 billion by 2010 and AED billion in 2012.

It quoted Mr Saeed Abdullah Al Roken director of Industrial Development as saying that the growth would be driven by major projects such as an AED 22 billion aluminum plant and an AED 3 billion steel plant in Abu Dhabi.

He said that "Several industrial cities are under construction in Dubai and Sharjah as well as the ICAD 1, 2, 3 and 4 industrial projects in Al AIN. The country is focusing on vital and strategic industries such as petrochemicals, steel, cement and aluminum. Industry is viewed as an important part of the diversification of the economy."

He further said that the UAE is investing in countries with diverse natural resources as the country has few natural resources of its own. The government is keen to secure a supply of the raw materials needed by the industrial sector.

At the regional level, the industrial sector contributes 10% of the GCC's GDP and is expanding. Revenues rose from AED 307 billion in 2006 to AED 487.7 billion in 2007. The Gulf Organization for Industrial Consulting said investment in industry by GCC members will double to AED 760 billion by 2012. GCC countries see the industrial sector as a strategic means of diversifying their economic base in the long term and reducing their reliance on income from oil. The UAE comes second after Saudi Arabia in terms of industrial investment. Of the AED 487.7 billion invested in industry in the region last year, Saudi Arabia accounted for AED 296.8 billion and the UAE AED 72.6 billion. Qatar invested AED 43.5 billion, Kuwait AED 31.3 billion, Bahrain AED 26.1 billion and Oman AED 17.6billion.

Press TV reported that a nine article pact on railway cooperation have been signed by Iran and Uzbekistan after holding a two day meeting in Tehran.

The agreement was finalized between the managing directors of the national railway companies of Iran and Uzbekistan on October 30th 2008.

The pact includes initiating a container train transit route between Almaty, Tashkent and Istanbul, launching a container train route between Tashkent and Bandar Abbas, a 25% discount to be granted to Iran for using Uzbek carriages, the passage of Iranian railroad cars through the Uzbek network and settling outstanding accounts between Iran Uzbekistan railways.

Mr Hassan Ziyari CEO of Iran's Railway Company said that “Establishing private transit transportation companies and joint investments in launching railway networks among Iran, Afghanistan, and Uzbekistan will allow Uzbekistan access to the Persian Gulf waterway.”

Emirates News Agency reported that the Gulf countries will need to spend over USD 120 billion in the next ten years to set up new power generation projects in the region.

As per report, over 118 various projects for power generation are currently under development at a total cost of USD 150 billion in the Gulf Cooperation Council countries. The report also underlined the keenness of the GCC governments to continue the development of their economies on the long run, thus increasing the spending on various developmental projects. The first phase of the proposed GCC power grid is set to be completed in the first quarter of 2009.

Under its plan to add 400 MW additional power generation by June 2009 to minimize electricity deficit, the Karachi Electric Supply Company has announced the starting of partial operations by its new 220 MW power generation plant at Korangi after whose commissioning 88 MW will be available from the first week of November 2008.

Mr Naveed Ismail CEO of Karachi Electric Supply Company said that efforts were already underway to minimize the duration of load shedding during the next summer season but given the situation of widened shortfall of electricity, there would be no quick solution to the problem of load shedding.

He said that Karachi Electric Supply Company has plans to enhance its indigenous power generation capacity by 1000 MW in the next three years. He also nullified the impression that Karachi Electric Supply Company had been deliberately running its own generation plants below their capacity in order to conserve its capital, saying that in actuality there is no capital available to the new management of the KESC that could be conserved by not using it for fuel purchase. But, he added that at the end of day there is not enough finance available for the procurement of fuel when it has been facing financial deficit to the tune of PKR 900 million to PKR 1 billion on a monthly basis. Karachi Electric Supply Company’s balance sheet reveals total accumulated losses of PKR 51 billion.

He further said that in a situation when no new power generation plant had been installed since 1997, 13 out of 19 of its existing plants have exceeded their intended life cycles. The average life cycle of the existing plants is 27 years.

He also informed that the Abraaj led management of Karachi Electric Supply Company had been initially investing an unprecedented amount of USD 361 million to improve the working system and services of the utility to achieve customer satisfaction.

It is reported that China's steel export has fallen sharply in the first three quarters of this year resulted from the sub prime and financial crisis in US. And China Iron & Steel Association predicts that China's steel products export will fall further in the coming months.

Figures show that China shipped out 48.46 million tonnes of steel products during January to September down by 2.14%, or 1.06 million tonnes from the same period of last year; steel billet export posts at 1.13 million tonnes down by 81% YoY or 4.84 million tonnes. Steel products import registers at 12.3 million tonnes in the same review period, down 5.3%, or 0.69 million tonnes with steel billet import standing at 0.14 million tonnes decline by 27% YoY.

Mr Luo Bingsheng deputy director of CISA at the fourth steel industry information release conference recently in Beijing China's net crude steel export converted by the steel products and steel billet import & export in the period posts at 39.47 million tonnes slump of 5.18 million tonne or 11.6% YoY.

He said that the direct impact of the US crisis is the sharp contracting export orders. Steel mills report that their export orders almost been halved in the fourth quarter, with that for the first quarter of next year also been reduced sharply.

(Source: www.chinanews.com.cn)

The market continued its downward trend but there was glimmer of corrections in scattered way.
Domestic
Billets
150*150
Q235

Change on October 31st is with respect to prices on October 24th
Change is per tonne

WRC
6.5mm
Common

Change on October 31st is with respect to prices on October 24th
Change is per tonne

Rebar
20mm
HRB 400

Change on October 31st is with respect to prices on October 24th
Change is per tonne

HRC
4.75mm
Common

Change on October 31st is with respect to prices on October 24th
Change is per tonne

Plates
20mm
Common

Change on October 31st is with respect to prices on October 24th
Change is per tonne

CR
1.0mm
Common

Change on October 31st is with respect to prices on October 24th
Change is per tonne

HDG
0.5mm
Common

Change on October 31st is with respect to prices on October 24th
Change is per tonne

Exports

The downslide continued with no sign of stoppage in the coming weeks.

Change on October 31st is with respect to prices on October 24th
Change is per tonne
HDG is in DX 51D 140gms
Delivery FOB China port

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

China Securities Journal cited Mr Luo Bingsheng deputy director of CISA as saying that domestic steel mills should step up efforts in arranging production, reducing costs, setting marketing strategy, working down inventories and improving internal productivity to realize a stable and healthy development for steel sector.

1. Steel mills should arrange their production according to market operations. In light of the current waning demand and falling export, they should control their total output and optimize product mix, trimming capacity moderately and sticking to the principle of idling operation when there are no orders in hand. Meanwhile, the progress of obsolete capacity elimination also should be accelerated to restore market balance.

2. Mills should further lower purchase costs, and increase revenue and reduce expenditure. It's better to realize swift production and sell process in a bid to minimize storage expenses, reaching balance of production and marketing and realizing profit growth.

3. Steel mills should regulate and maintain the normal steel sales procedure, avoiding vicious undersells and adhering to good faith. Stable ex-works price from mills will help stabilize market prices.

4. Stockpiles for 68 steel mills surveyed at the end of August add up to 9.49 million tonnes a massive increase of 47% from the year start. Therefore, mills should strictly put a brake on stock growth and keep it at a reasonable level, and exercise strict control over the increase of accounts payable and accounts receivable.

5. In response to the products deficit, mills should squeeze raw materials purchase prices and improve internal productivity to make up the deficits and get surpluses. Production suspension or cutback is necessary when sales price falls below that of manufacturing costs.

It is reported that, Chinese CRC export markets keep weak and there is not expected to be evident recovery in export tonnage until local market price bottom out.

Domestic market price on Shanghai market, 1.0 millimeter CR sheet by Anshan steel goes at CNY 4400 per tonnes down by CNY 130 per tonnes from last Friday 1.2 millimeter to 2.0 millimeter material at CNY 4270 per tonnes, a decrease of CNY 160 per tonnes. While that for 1.0 CR coil by Maanshan steel fell by CNY 110 per tonnes to RMB 4070 per tonnes.

Export offer for DC01 1.0 millimeter CRC goes at USD 600 per tonnes to USD 650 per tonnes fob, which compares with USD 650 per tonnes to USD 700 per tonnes fob last week. Some exporters indicate that it is easy to get material at a level under USD 600 per tonnes. Traders indicated that trading remains thin and some of them start to get anxious, wondering when they could resume export business.

(Sourced from MySteel.net)

It is reported that Latin America's iron and steel institute, Ilafa, warned that great quantities of China’s steel products might be exported to Latin America due to the global economic crisis during the 49th Ilafa conference at Cancun in Mexico.

According to the report, the total Chinese steel export during January to September 2008 declined by 9% compared to that of the corresponding period of last year however, the Chinese steel export to Latin America region rose by 23% especially Chinese steel exports to Brazil.

Thus, Ilafa stated that the steel industry association shall appeal to the government for a measure against China’s steel exports in order to protect local mills.

China Metallurgical products export volume in January to September and Export value are given under

September 2008

Export volume in million tonnes
Export value in USD

January to September 2008

Export volume in million tonnes
Export value in USD

It is reported that China province steel product export during January to September 2008 total 48,456,197 tonnes.

In million tonnes

It is reported that, Chinese hot dipped galvanized coil prices are still down this week and this is also the case with export quotations.

On Shanghai market, 1.0 millimeter HDG by Anshan steel is being quoted at CNY 4450 per tonnes down CNY 120 per tonnes from last Friday. That for 0.5 millimeter HDG by private steel makers is at CNY 4750 per tonnes, a decrease of CNY 350 per tonnes.

Prevailing export quotation for 1.0 millimeter HDG Z1 20 goes at around USD 700 per tonnes to USD 750 per tonnes fob, down from USD 750 per tonnes USD 770 per tonnes fob from early last week. There seems to be room for further decrease in the coming weeks.

(Sourced from MySteel.net)

Wuhan Steel has announced its Q3 net profit results with net profit at CNY 2,257.87 million up by 40.28% YoY as compared to CNY 1,609.57 million in 2007.

In million CNY

Wuhan Steel said its earnings rose because of increased sales and rising steel prices in the third quarter of this year against the same period last year.

It is reported that Baosteel has revealed a nearly 50% net profit decline in its Q3 financial report, and latest figures from the China Iron and Steel Association indicate that Q3 profits for China’s steel industry as a whole slumped by nearly 40% over the first half of 2008, with some steel companies already suffering losses. Due to the impact of the financial crisis and domestic slowing, more companies will see losses in the Q4.

The operating environment for steelmakers has changed significantly since the beginning of July. CISA announced recently that China’s steel production in the Q3 fell MoM and domestic steel prices dropped continuously. At the end of September the composite steel price index had fallen 10.86% since the end of June. Meanwhile, steel companies’ costs have risen sharply. Between January and September average sourcing costs for each ton of metallurgical coke, coking coal, and injection coal rocketed by 95.35%, 87.1%, and 57.59%, respectively. The CIF price for imported iron ore during the first 9th months rose 77.27%. Prices for pig iron and scrapped steel sourced abroad increased by 64.23% and 56.13%.

Under such circumstances, Q3 steel industry profits totaled CNY 30.377 billion, slumping by 38.16% from the first half of 2008. In September, profits for the whole industry fell to CNY 3.221 billion, 80.33% lower than the monthly average during the first half of the year.

Mr Luo Bingsheng Executive Chairman CISA said that, 23 large and medium steel companies suffered losses in September, accounting for 32.4% of the total. The loss in the first 9th months totaled CNY 1.154 billion, 18.06 times of that in the same period in 2007. The situation is worsening in October, as steel prices continue to drop, having fallen by 30% to 40% since the end of June.

Mr Shan Shanghua General Secretary of CISA said that during the iron ore meeting recently that the whole industry was doomed to see losses in October. 40% to 50% of small steel companies in Tangshan, Hebei Province have gone bankrupt.

Mr Chen Ying Secretary to the Board of Baosteel said that, due to the global slowdown, the mid term adjustment for the steel industry had already begun. Baosteel’s major products, including carbon steel and stainless, may all take losses. The company’s profitability in the next year is still uncertain as it would be hard to maintain even this year’s performance in 2009.

It is reported that developing a new product within 30 days delivering finished products to the customers within 60 days confronted with the rigorous market situation, Baosteel took the initiatives to develop successfully the double-high surface fingerprint proof sheet, filling the domestic blank for this high value added and high technological content product. Recently, the first 3700 tonnes of finished products were delivered formally for the domestic high end appliance market as import substitution.

As the first enterprise to develop fingerprint proof products in China, Baosteel once occupied more than half of the market in this field. However, as the supply starts to exceed demand in the market with the general improvement of the steel industry, the products selling like hot cakes are in the trouble of homogenization competition. Baosteel re-oriented the fingerprint proof products and made clear the developing philosophy gradually reducing low-end market, and energetically developing high-end market. In line with this re-orientation, Baosteel explored the way in every important domestic electrical appliances manufacturer actively in August this year. After visiting on site, market survey and analysis, Baosteel keenly caught the users' change of the taste for fingerprint proof product, and developed double-high surface fingerprint proof sheet that meets the requirements of high-end electrical appliances manufacturer within only one month and delivered the first batch of finished products to the users in the second month.

Double-high surface mainly means high surface quality and high surface property no flaw can be found by checking the product surface carefully; various properties such as corrosion-resistance and electrical conductivity are up to high application standards. It is worth mentioning that Baosteel creatively incorporated the production technology of O5 sheet for automobiles into the development of this product on the basis of the experience accumulated in many years for fingerprint proof products. From steel making, hot rolling to cold rolling, fine workmanship in each step made the exterior quality of the product even better than that of O5 sheet.

Double-high surface fingerprint proof sheets are mainly used for computer, communication, automation office equipment, audiovisual equipments etc. Due to the precise market orientation, its development is promising. According to introduction from R&D personnel, the market of this product has been monopolized by import for a long time. Only the substitute for import will bring the market share of thousands of tons each month; besides, the demand for this product will be larger as the domestic electrical appliances keep upgrading. At present, the monthly order of double-high surface fingerprint proof sheets is 3000 tonnes to 4000 tonnes. As per the product development plan, its annual output will be up to about 100,000 tonnes next year.

It is reported that 11 construction workers were killed and 12 injured in southwest China when the crane container they were riding in plunged to the ground at a building site.

The official Xinhua news agency said the October 28th 2008, accident happened in heavy rain at a bridge under construction near Chongqing city. A steel cable carrying the container snapped, sending the workers to their deaths. Nine workers were declared dead at the scene and two died on the way to hospital.

Eleven of the 12 injured were in serious condition.

It is reported that steel mills located in the urban areas of the big cities should not expand, the product mix should be adjusted, and when appropriate, the capacities could be squeezed or relocated, Jiangxi Province lately required in an attempt to enforce environment protection.

As per report, green field or expansion of the large-size steel enterprises would only site in the areas alongside the Yangzte River in Jiujiang. In other areas, the production should base on mine resources. No expansion in scale is encouraged. In the meanwhile, smelting projects for aluminum, lead and zinc etc should all be equipped with dedusting and recovery processing facilities with an automatic supervision system to monitor.

It is reported that a new entrant in the light commercial vehicles market will arrive in South Africa in January, from China’s largest vehicle manufacturer, FAW.

The vehicles will arrive in South Africa fully assembled and will be available through Imperial Select. The target market for the vehicles will be small to medium and micro enterprise business people, and entrepreneurs.

Showcasing vehicles at the Johannesburg International Motor Show, at Nasrec in Gauteng, FAW said it maintained the lead market position in China, while continuing to expand into new international markets. The group sells vehicles in over 70 countries worldwide. FAW also noted that its current production strategies placed more emphasis on the production of cars, while maintaining its position in the commercial truck industry.

The company said “As a global player with a sales volume now over one million units per year, we take advantage of the latest cutting edge technologies, production methods, and management practices to bring our customers the latest in automobile, truck, and bus design.”

According to Mr Luo Bingsheng deputy director of CISA China's steel industry has achieved a lot in the first three quarters in energy conservation and emission reduction.

In the first nine months, large and medium-sized enterprises enrolled in CISA statistics consumed a coal equivalent of 175.2614 million tonnes up by 6.1% YoY

Energy consumption for per ton steel production was posted at 628.91 Kilogram coal equivalent down by 0.2% YoY in January to August consumed energy by producing CNY 10,000, added industrial value was 42,800 tonnes down by 14.53% YoY during January to September, fresh water used for per ton steel making declined 7.06% to 50,800 tonnes COD in industrial waste water discharged dropped 26.39%, total SO2 and soot discharged fell 2.37% and 5.16%, industrial dust down 11.97%.

(www.Xinhuanet.com)

Change on October 31st is with respect to prices on October 24th
Change is in USD per tonne
Delivery FOB Black sea

Black Sea has witnessed the biggest ever fall in a span of 17 weeks from a peak on 4th July as under:

Change is in USD per tonne
Delivery FOB Black sea

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

Metal Expert reported that, Ukraine’s Ilyich Works is planning to reduce pig iron output down to 100,000 tonnes. In October the production will be about 195,000 tonnes, down 26% from September 2008.

The plant operates 5 blast furnaces with total design capacity 5.9 million tonnes per year. The rated daily output is about 15,000 tonnes of the material. A few days ago blast furnace No.5 with design capacity 1.5 million tonnes per year and the size of 2,300 cubic million was shut down for a repair, but the actual repair works are going to be started only after the plant obtains funding. The repair is to last for about 110 days and will result in an increase of the furnace size up to 2,500 cubic million and its capacity up to 1.57 million tonnes per year.

Due to currently adverse market situation, Ilyich is planning to keep in the operative mode only three of the five blast furnaces, starting from November 2008. Thus, BF No.3 with design capacity 1.33 million tonnes per year will be kept idle through nearly the whole of November2008. After its re launch late in the month, BF No.4 will be stopped. The alternative working/idling mode of these two furnaces will be used until the market changes and demand for pig iron increases.

During this period, the daily production of pig iron will be some 3,000 tonnes to 3,500 tonnes. The crude steel output in October 2008 will be cut to about 200,000 tonnes to 210,000 tonnes from 300,000 tonnes in September 2008, and cut further to about 100,000 tonnes in November 2008. In this connection, Ilyich is also reducing purchases of steel scrap in October the figure will be just about 13,000 tonnes, in November 2008 the purchases may be stopped altogether. At this moment, the plant has some 39,000 tonnes of scrap inventories.

In September 2008 Ilyich suspended purchases of HBI from Russia’s Lebedinsky GOK, with no resumption being planned for October and November. In August, there were some 25,000 tonnes of this material, bought from the Russian mine.

(Sourced from Metal Experts)

Metal Expert reported that, Ukraine’s ArcelorMittal Kriviy Rih stopped all its rolling mills on absence of orders.

Bar rolling mills 250 3 and 250 4, as well as the wire rod mill 150 1 have been idle during the whole month of October, while 250 5 mill was running at minimum load and 250 6 mill worked for 20 days.

The highest utilization was at bar rolling mills 250 1 and 250 2, as well as wire mill 250 3, which have been working almost through the whole month.

Due to the cut of longs production, steelmaking facilities are not working at full capacity, either. Thus, in open hearth workshop, only a tandem furnace with monthly capacity 100,000 tonnes to 110,000 tonnes was in operation since the beginning of October 2008, while a 46,000 tonnes per million open hearth furnace No.4 was idle. In oxygen converter shop, only two of the six furnaces have been running in October 2008.

As per report, ArcelorMittal Kriviy Rih has not set its production plans for November and is collecting orders.

(Sourced from Metal Experts)

It is reported that, Chelyabinsk Zinc Plant, Russia's largest zinc producer, has abandoned plans to develop a mine near its main production asset and will slash investments after plummeting metal prices led to a first half loss.

Mr Sergei Moiseyev chairperson of Chelyabinsk Zinc said that the Company would make a dramatic reduction to its investment program after the firm recently reported a net loss of RUB 907 million compared with a year ago profit of RUB 1,2 billion. He said that "Chelyabinsk Zinc has been through different storms. This is the big one, but I am confident that we have the resources and experience to face it."

Chelyabinsk said that, first half revenues declined 29% to RUB 5.7 billion as a 37% drop in average zinc prices outweighed a 5,5% increase in output. The cost of sales as a percentage of revenue was 90% in the first half of 2008 versus 71% a year ago, cutting the company's gross profit margin to 10% from 29%. Earnings before interest, taxation, depreciation and amortization fell 71% to RUB 654 million.

It is reported that, Ukraine Ukraine's parliament recently approved legislation needed for a crucial USD 16.5 billion International Monetary Fund rescue loan to help the country weather the global financial crisis, which has sent its currency plummeting.

The IMF loan was announced recently, but was made contingent on parliament passing banking and other stabilization legislation.

According to the Inter Business Consulting agency Earlier last week, the central bank announced it had won a promise from several top commercial banks to help stabilize the national currency, which has lost over a quarter of its value. The currency, the UAH, rose on the efforts, closing at 5.93 to 5.95 to the USD on the foreign currency exchange. That was up markedly from its record low of 7.2 recently. Last week the UAH recovered to 6.15 to 6.25.

Mr Serhiy Kruglyk head of the foreign relations department at the National Bank said that, several top bankers have promised to refrain from currency speculation and sell currency to retail customers close to the rate at which they buy it. He said that "The banks supported the idea that they must demonstrate stability of the national currency."

Evidence that the widening recession was hitting formerly strongly growing economies in eastern and central Europe came recently as Ferrexpo the Ukrainian iron ore producer said that a number of its export clients had suddenly deferred orders in the last two weeks.

Ferrexpo said that customers, mainly large steel producers, had delayed orders into 2009 which would cause materially reduced demand” for Ferrexpo’s iron ore pellets for the rest of 2008. That meant full year sales were now expected to be down by 5% to 10%.

Mr Simon Wandke chief Marketing Officer of Ferrexpo said that “The deterioration in the demand outlook has been market and is exacerbated by customer de stocking.”

As a result, the group is to freeze capital spending plans and run the business for cash. That strategy shift led to the resignations of Mr Mike Oppenheimer, chief executive, and Mr Dennis McShane, business development director, who said that their roles had been changed.

Mr Kostyantin Zhevago who owns 51% of the group’s shares through his company Fevamotinico is taking over as chief executive.

Ukrainian Journal Staff cited Mr MP Tarieal Vasadze, Honorary President of UkrAvto as saying that, Zaporizhia Car Building Plant in the near future may cut production by 40% due to the financial crisis, although measures taken by UkrAvto Corporation, which incorporates ZAZ, are ensuring a stable financial state at the company.

He said that the key reason for the fall in car production is the fall in demand.

Mr Vasadze said that UkrAvto is taking a number of anti crisis measures and expects support from the authorities.

Reuters reported that, Kazakh copper producer Kazakhmys may cut copper output next year due to lower projected spending arising from global financial instability.

Mr John Smelt Kazakhmys spokesman said that "If we reduce our expenditures we will probably produce slightly less in 2009." where the London listed Kazakh Company is based. He said that "it has been running at about USD 500 million to USD 600 million a year and some of that is discretionary, and that's likely to be reduced. He added that it was reviewing its activities to take market volatility into account, marginal operations were being assessed for temporary closure during the period of price weakness.”

Mr Oleg Novachuk CEO of Kazakhmys said that "We are clearly in a challenging and volatile environment and we are reviewing our operations and capital expenditure to reflect current market conditions."

Kazakhmys said that its cathode production from its own material increased to 92,000 tonnes in the Q3 of this year from 82,000 tonnes in the Q2. It said that the increase brought production for the first 9th months of 2008 to 249,000 tonnes, adding that this was in line with the corresponding period of 2007.

Kazakhmys said in a statement that it would keep its previous cathode production guidance for 2008 unchanged, adding that output was likely to stay in line with that of 2007, when Kazakhmys produced 341,000 tonnes of copper cathode.

The Company said that demand for copper products has remained firm throughout the year in spite of financial market turbulence."

RIA Novosti quoted Mr Vladimir Putin prime minister of Russia as saying that the Russian economy would not be subject to nationalization.

Mr Putin told an economic conference that "I would like to stress that imposing state controls on Russia's economy is not, cannot be, and will not be our task. Increasing the state's presence in the economy is a forced measure and is temporary."

He further said that supporting the financial system and the real sector of the economy demanded significant budget expenditure which needed to be appropriate considering the scale of the problems adding that half measures will not bring the desired result.

Russia has been hit hard by the global credit crisis which has toppled Western banks and pushed developed economies toward recession. Russia's stock markets have lost around two thirds of their value since their May 2008 highpoints amid declining oil prices and disappearing investor confidence.

Russia's government and Central Bank have recently taken urgent measures to pump billions of US dollars into the domestic stock market to shore up the liquidity of leading market players.

The Central Bank has also granted USD 50 billion in subordinated loans to Russian companies and banks through the its national development vehicle, Vnesheconombank to help them refinance their foreign liabilities.

RIA Novosti cited the Russian energy giant as saying that Gazprom, Italian electricity company Eni and oil and gas giant Enel have agreed to develop Italian assets in Russia.

Mr Paolo Scaroni CEO of Eni, Mr Fulvio Conti CEO of Enel and Mr Alexei Miller Gazprom chief, met in Rome to agree on further implementation of the partnership between the three companies. The parties signed agreements to develop the Russian assets of Arctic Gas and Urengoil.

Eni and Enel acquired the northwest Siberian deposits in 2007 through liquidation auctions of the now defunct Russian oil company Yukos. For this purpose, the Italian companies invested USD 852 million in April 2007 in setting up a joint venture, Sever Energia, 60% owned by Eni and 40% by Enel.

Moreover, Gazprom signed further agreements undertaking commitments to acquire a stake in SeverEnergia, as established by the 2006 strategic agreement.

The Italian companies said that "Eni, Enel and Gazprom will immediately work towards having the asset development plans approved together with the consequent adjustment of the mineral licenses."

Italy's natural gas market is the third largest in Europe after the UK and Germany. Natural gas accounts for more than 30% of the Italian energy balance. Russia and Algeria are the main gas suppliers to the country.

Italy is the second largest importer of Russian gas in Europe. The country received almost 22 billon cubic meters of gas from Gazprom in 2007.

RIA Novosti reported Power Machines, Russia's leading heavy machinery manufacturer net profit calculated to Russian Accounting Standards reached RUB 229 million in January to September 2008.

The statement said that the performance reflects the effectiveness of efforts by the company's management to increase the company's efficiency in the difficult economic situation.

The company had posted losses of RUB 1 billion in the first 9th months of 2007.

Power Machines accounts for 37% of Russia's turbines, turbo generators, hydro generators and electrical equipment market. It produces, assembles, services and modernizes equipment for hydro, thermal, gas and nuclear power plants and the transportation industry. The company has clients in 87 countries.

According to Mr Petar Mutafchiev Bulgaria's Transport Minister, state owned freight carrier BDZ will lose 20% of its annual revenue if the ongoing crisis in the country's largest steel maker Kremikovtzi leads to its shutting down. BDZ transported over 4 million tonnes of raw materials to the steel factory every year.

Mr Mutafchiev said that if more of the blast furnaces were shut down, this would lead to serious consequences for the BDZ. That is why he has asked the company management to prepare a careful analysis of the situation.

Lat week Kremikovtzi completed the process of shutting down one of its blast furnaces because of the coal shortage after its partner Vorskla Steel Bulgaria decided to terminate all supplies to the plant.

RIA Novosti Russia's largest independent crude producer LUKoil's net profit in January to September, calculated to Russian Accounting Standards, increased 30.5% YoY to 64.9 RUB billion.

The company said that its net profit in the third quarter fell 64.5% to RUB 13.5 billion against the Q2.

LUKoil said that the QoQ decline was largely due to the fall in world oil prices and the simultaneous rise in oil export tariffs, as well as falling revenues from non core businesses.

The company's US GAAP net consolidated profit increased 27.1% YoY in 2007 to USD 9.51 billion, and oil output grew 1.4% last year to 713 million barrels.

LUKoil's majority shareholder with over 70% of shares is Russia's ING Bank US oil major ConocoPhillips has a 20% stake.

RIA Novosti cited the country's industry and trade minister as saying that, the Czech Republic is ready to sign contracts for oil deliveries from Russia without intermediaries.

Mr Igor Sechin the Chairman of state oil giant Rosneft said that Russia has been reducing oil supplies to the Czech Republic over the past 4th months. The decline was due to a lack of direct contracts between Russian suppliers and Czech customers.

After a meeting of the bilateral intergovernmental commission on economic, industrial and research cooperation, Mr Martin Riman Czech Industry and Trade Minister said that he hoped oil supplies would soon be resumed in previously approved volumes.

Mr Alexander Zhukov Russian Deputy PM said recently that, Moscow is seeking to build nuclear reactors in the Czech Republic jointly with Czech companies. He said that "I would like to reiterate that we are interested in cooperation, and that Russia is interested in building new nuclear reactors in the Czech Republic."

The Czech energy company CEZ earlier said that it was considering announcing a tender for the construction of new reactors for the Temelin nuclear power plant. Atomstroyexport, Russia's nuclear power equipment and service export monopoly, is likely to bid.

Ukraine Journal Staff reported that, Ukraine pledged to liberalize domestic natural gas prices before the end of 2011 in exchange for USD 16.5 billion loan from International Monetary Fund to help the country avoid economic recession.

Ukraine, due to various political reasons, has been delaying liberalization of the gas market for the past 10 years, but the issue has become urgent due to steely growing gas prices over the past three years.

According to RZD Partner, TransMashHolding and the biggest consumer of its products, Russian Railways, are now working on a joint program aimed at reducing the prices of mechanical engineering products.

According to OAO RZD's Department of Corporate Communications report, lower prices for TransMashHolding products made for Russian Railways have become possible due to the falling price of the raw materials which make up a significant component of their total cost.

Mr Andrey Andreyev GD of TransMashHolding said that “Our goal is to maximize the effect of lower commodity prices. We believe that lower raw material prices cannot but lead to lower prices for parts and components. We have already begun working closely with our suppliers.”

He said that “Russian Railways is our most important partner. We are ready to exploit the situation to reduce the prices of raw materials and components to ensure that, together with the railways, we can get through calmly and confidently the liquidity crisis sweeping through the financial markets.”

According to Mr Vladimir Yakunin, President of Russian Railways, a joint program to reduce the prices of products made by TransMashHolding is a logical step towards closer coordination and crisis management under the present circumstances.

Despite the fact that the prices of TransMashHolding’s products will fall, its total revenues in Q4 2008 will increase substantially compared to the same period in 2007 on the back of the rapid growth in output of marketable products, most of which are made for Russian Railways. Sales in H1 2006 grew by 36%. TransMashHolding does therefore not envisage any reduction in its development program.

Reuters citing a top industry official as saying that global stainless steel production is seen falling to 27.2 million tonnes in 2008 down by 4.6% from 2007 and in 2009 output is forecast down further at 26.3 million

Mr Michael Wright chairman of the Stainless Steel Division at a conference organized by the Bureau of International Recycling in Dusseldorf, Germany said that “The stainless steel industry is under pressure because of the global financial crisis and the expected recession in the US and Europe."

Mr Wright, who is also chairman at ELG Metals Limited in Britain expected raw materials prices, including stainless steel scrap, to come under extreme pressure as mills across the globe cut production and refuse to build inventories. He added that there were no positive signs of an increase in stainless steel production or raw material demand until the second quarter at the earliest, in 2009.

The first half of 2008 saw significant production cuts in Asia and Chinese output is now forecast at 8.1 million tonnes in 2008 against a previous estimate of 9 million

In Taiwan and Korea, production cuts by stainless steel smelters were estimated to exceed 50% in the short term. In China large smelters had been forced to default on raw material purchases as a result of cancellations in sales orders. In the US large domestic mills had withdrawn from the scrap market, the raw material to feed stainless steel mills due to lack of new orders.

It is reported that US Ministry of Commerce has amended preliminary countervailing duty determination in the investigation of circular welded austenitic stainless pressure pipe from China to correct ministerial errors.

Commerce announced its preliminary affirmative determination on July 10th 2008. On July 15th 2008, the Winner Companies filed timely allegations of significant ministerial errors contained in the preliminary determination.

A ministerial error is defined as an error in addition, subtraction, or other arithmetic function, clerical error resulting from inaccurate copying, duplication, or the like, and any other similar type of unintentional error which the Secretary considers ministerial.

After reviewing the allegations, Commerce has determined that the preliminary determination contained significant ministerial errors with respect to the Winner Companies and that these ministerial errors in turn affected the countervailing duty rate applied to Froch as well as the rate applied to all other companies not individually investigated.

As a result of the corrections of the ministerial errors, the countervail able subsidy rates are as follows

African Rainbow Minerals has announced to suspend operations of two electric furnaces. The arrangement to decrease production of ferrochrome in South Africa is enlarging.

Following the decision by Samancor Chrome which decreases their production of charge chrome in October to December quarter of 2008 by 70,000 tonnes, African Rainbow Minerals announced on October 24th 2008 that it has decided to suspend operations of two electric furnaces installed at the Machadodorp Plant of Assmang in South Africa for production of charge chrome. Assmang is an affiliated company of African Rainbow Minerals.

African Rainbow Minerals said that the resumption of furnaces is subject to a recovery of demand for ferrochrome. It also said that the operation at Dwarsrivier Mine of Assmang to mine chrome ore has been maintained by having taken an attitude to watch carefully about a further movement of demand for ferrochrome.

'Directory of Electrical Steel Users in India' is one of the top sources of information available on electrical steel users in India. It is one of the most comprehensive and accurate directory of electrical steel users in India.

Published in May 2008, 'Directory of Electrical Steel Users in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian users of electrical steel. This report will be extremely useful to businesses that deal specifically with companies in the electrical steel segment.

This report will enable you to profile electrical steel users in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers.

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

This report covers name and product details of 340 of Indian electrical users in Alphabetical order.

Look at the information you'll get in the 'Directory of Electrical Steel Users in India'

• Company name -340 entries
• Address-340 entries
• Phone number-338 entries
• Fax number -317 entries
• Email -300 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 190

Price: USD 625 or equivalent in INR
(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

Bloomberg reported that the European Union refrained from imposing preliminary tariffs on stainless steel from China, Taiwan and South Korea delaying a possible trade clash for as long as six more months.

The European Commission waived the right to introduce provisional EU duties on cold rolled flat products, used in everything from cars and tanks to boilers and kitchen equipment while studying whether definitive 5 year levies should be applied no later than May 1st 2008. The trade protection would shield EU producers such as ThyssenKrupp AG from overseas competition.

The commission, the EU's regulatory arm, faced a deadline to announce any provisional duties for six months on imports from China worth about EUR 2.1 billion euros last year. This is part of a probe opened in February into whether Chinese exporters including Baoshan Iron & Steel Company sell stainless steel in the 27 nation EU below cost, a practice known as dumping.

A commission trade spokesman said the investigation will now continue in order to clarify a number of outstanding issues.

In mid September 2008, the commission took a similar stance in a dumping probe involving EU imports from China of galvanized steel used in construction.

It is reported that First Nickel Canada Suspends To Operate Nickel Mine. Small scale nickel producers are continuing to suspend their nickel production. First Nickel, based on Toronto announced that it has decided to suspend its operation at the Lockerby nickel mine located in Sudbury area of Ontario province but, when the circumstances surrounding nickel have been improved, will have an option to resume nickel production.

The Lockerby nickel mine produced 3.3 million pounds of nickel ore in 2007 and sold this output at USD 10.13 per pound on the average. This mine endeavored to reduce the cost for nickel production throughout 2008 but, owing to a steep fall of LME nickel prices, top executive of this Canadian company said that there is no other way but to suspend our operation at the Lockerby nickel mine for the time being.

For a reference, First Nickel added that, while the operation at nickel mine has been suspended, it will continue the work to explore and develop nickel resources.

The Australian Stainless Steel Development Association said that its PacRim Stainless 2008 conference will be held in Townsville, Queensland from October 30th to 31st 2008.

The steel industry is being challenged by the recent emergence of many new grades of stainless steel and requires innovative solutions to help it access and use these materials effectively.

Multiple speakers will be presenting at the conference, headed by Mr Juha Rantanen president & CEO of Outokumpu.

Papers will be presented on opportunities in various countries, stainless steel in the food and minerals processing sectors, Australian innovation, stainless steel clusters, and the role of steel in the Queensland Water Grid. The conference will also be the site of a Fabrication Forum which aims to generate discussion among fabricator delegates. It will deal with issues such as procuring work from local government, lean manufacturing, and how to sponsor overseas skilled workers.

It is reported that Northland Stainless Inc of Tomahawk is in line to receive USD 250,000 in technology zone tax credits as it creates a dozen new jobs in the coming year as part of a USD 4.7 million plant expansion.

Mr Matt Garske human resources manager of Northland Stainless said that it has broken ground on a 21,000 square foot addition that will double the size of its facility at 1119A Bridge St. He added that Northland Stainless will use the additional space to expand its ability to produce custom heads for pressurized vessels for a variety of industries and the tax credits will assist in the purchase of new equipment.

The tax credits announced this week by Governor Jim Doyle are distributed by the Wisconsin Department of Commerce on the recommendations of local boards representing each of the eight technology zones in the state. The boards identify companies that plan to expand their operations, make a significant investment in new equipment and, ultimately, create jobs.

Bloomberg report that Mirabela Nickel Limited has already sold output from the world third biggest open pit nickel mine, under construction in Brazil and that the project will produce as planned in mid 2009 despite financing delays.

Mr Nick Poll president of Mirabela said at a mining conference in Rio de Janeiro that the Santa Rita mine will attain output of 27,000 tonnes a year by mid 2010 and later achieve full annual production capacity of 45,000 tonnes of nickel in the form of concentrates.

He further said that Mirabela has already sold its entire production through 2014 to Votorantim Metais Ltda and MMC Norilsk Nickel adding that the company also has a five year fixed price power supply contract for the project.

Votorantim and Norilsk have each put up USD 50 million in advance payments and will use the nickel at their Fortaleza and Harjavalta smelters.

On October 29th 2008, Mirabela sent a note to the Australian stock exchange saying financing of USD 240 million for the project from Credit Suisse Group AG and Barclays Plc has been delayed for two months until February 2009 due to uncertain credit markets. A further USD 165 million has already been raised in equity.

Tribune Review reported that Allegheny Technologies Inc. will lay off several hundred workers at three local plants and a research center beginning November 3rd 2008 because of falling demand for stainless steel from automotive, housing and appliance producers.

The report quoted Mr Daniel Greenfield a spokesman of Allegheny as saying that the layoffs at the Allegheny Ludlum Steel plants will remain in effect on a week to week basis as it adjusts production to meet demand adding that the layoffs will likely affect 20% of the workers, but declined to give an exact number or say when they might be recalled.

The layoffs affect its plant in Brackenridge and its adjacent plant in Natrona in Harrison where steel scrap is melted for steelmaking. Those plants have about 1,100 workers. It affects a cold rolled stainless steel plant in Vandergrift, Westmoreland County.

Reuters reported that Cliffs Natural Resources Inc, which has cut back production of iron ore pellets for steel making because of the economic downturn, has expected the recession to last at least through 2009.

Mr Joseph Carrabba chairman, president & CEO also said that he expects protracted contract negotiations with customers for its metallurgical coal, another raw material for steel production.

He said that "What you are seeing is nervousness in this economy and a reaction by customers to cuts in the steel industry. This is a difficult time for buyers to come to grips with high coal prices and we expect protracted negotiations. Cliffs would like to have 75% to 80% of its 2009 coal production committed to a contract price by the end of this year. Then in 2010, we want to take advantage of the market as metallurgical supplies are short despite steel cutbacks."

Asked about Cliffs' pending acquisition of coal miner Alpha Natural Resources in light of the economic slowdown, Mr Carrabba said that "We have not changed our view of the growth of the steel industry. We believe a super cycle is here and we are just in a hiccup at the moment. We will continue to look at other steel making materials as well as metallurgical coal in the future."

Cliffs had earlier reported a sharp rise in third quarter profit despite a USD 94 million hedging loss mainly due to an unexpectedly weaker Australian dollar.

Last week, Cliffs announced production curtailments at two of its six North American iron ore mines. It will temporarily idle two small pellet furnaces at Northshore Mining and one at United Taconite, all in Minnesota. The three furnaces have combined monthly pellet production capacity of approximately 300,000 tonnes. Cliffs can produce 37 million tonnes of iron ore pellets per year.

Mount Gibson Iron Limited advised ASX on 9 October 2008 that it was in discussions with a number of its customers in relation to requested delays to iron ore shipments scheduled for the quarter commencing October 2008.

The release said that “Three of those customers have now defaulted on their binding off take agreements. “

It added that “Acceptable accommodation has been reached with a further two customers and discussions will be ongoing with a further existing customer until 9 November 2008. “

The release said that “In response to those events, Mount Gibson has carefully reviewed all of its available options and has taken steps which mitigate the risk of further defaults and deferments while preserving its rights against its defaulting customers.”

Mr Neil Hamilton chairman of Mount Gibson said that “We are very disappointed that a number of our customers have defaulted on their binding obligations given the substantial investment Mount Gibson has made in the business based on executed legally binding long term ore purchase contracts and further representations made by these customers.”

Rio Tinto Plc has confirmed that Mr Paul Skinner chairman of the group for the past 6 years will not stay on after his term expires next year. This has intensified speculation that Skinner is leaving Rio Tinto to join BP Plc as chairman, following the retirement of Peter Sutherland next year.

London headquartered Rio Tinto noted that Mr Skinner has informed its board of directors that he plans to serve out his current term, which expires in December 2009, and that he does not intend to seek a further term.

Mr Skinner's exit comes at a time when Rio Tinto is battling a hostile takeover bid from rival BHP Billiton Plc, which, he reportedly wants to resolve before he leaves.

Mr Skinner joined Rio Tinto Board as a director in 2001 and became chairman of the Board in 2003. Before joining Rio Tinto, Skinner last worked as group managing director of The Royal Dutch/Shell Group of Companies and as managing director of The "Shell" Transport and Trading Company Plc. He is also a director at Standard Chartered Plc and the Tetra Laval Group. He is also a member of the board of INSEAD business school.

Also, the company's board has started on a process to identify a successor to Mr Skinner. The Sydney Morning Herald, in its report, however, thinks otherwise. Citing an analyst, it said that Rio Tinto is most likely to seek an internal candidate, who is more familiar with all company issues.

Mount Gibson announced that it has signed a binding Heads of Agreement with its major shareholder, APAC Resources Limited and a further binding Heads of Agreement with Shougang Concord International Enterprises Company Limited.

These agreements provide for

1. APAC and Shougang Concord to purchase available production from Mount Gibson’s operations
A) During November and December, 2008 (Short Term Offtake)
B) Between January and June 2009 (Medium Term Offtake)
C) From 1 July 2009 (Long Term Offtake)

2. APAC and Shougang Concord to underwrite a 1 for 5 renounceable rights issue at AUD 0.60 per share to raise gross proceeds of AUD 96.5 million (Rights Issue & Underwriting)

3. Shougang Concord to subscribe for a placement of 110 million ordinary shares at AUD 0.60 per share to raise an additional AUD 66 million (Placement)

The off take, subscription and underwriting agreements to effect the above transactions are expected to be executed by mid November 2008.

The Placement and the Underwriting are conditional upon approval by the Foreign Investment Review Board. The Medium Term Offtake and Long Term Offtake, together with the Underwriting and the Placement, will be subject to Mount Gibson shareholder approval at an extraordinary general meeting planned for late December 2008. The Short Term Offtake does not require Mount Gibson shareholder approval and is expected to commence immediately on completion of a definitive Short Term Offtake Agreement.

Mr Neil Hamilton chairman of Mount Gibson said that “We acknowledge the support of our major shareholder, APAC, and Shougang Concord during this difficult time which allows Mount Gibson the opportunity to present a viable solution to shareholders that provides long term security for their company during the current volatility in the iron ore and financial markets.”

Reuters recently reported that Mr Marius Kloppers CEO of BHP Billiton Limited has ruled out adding a cash sweetener to its all share USD 69 billion offers for rival Rio Tinto Limited saying financial turmoil hitting commodity markets was no reason to change.

Mr Marius Kloppers said that "Our offer is very compelling the way it is answering questions following a speech in Sydney. Joining these companies together means more production at lower costs."

Some analysts said that deterioration in the value of offer to about half the original price, leading to Rio shares trading at a significant discount, was also an argument for adding cash.

But Mr Kloppers blamed the sharper decline in Rio's share price, which has dropped 43% since last November on a flux in the market over the outcome of the bid. BHP's stock is down about 37% over the same period.

As per report, there has been market speculation BHP might try and win over Rio's board, which has rejected the overture, by adding cash to its offer of 3.4 of its shares for every Rio share.

Australian iron ore miner Atlas Iron Limited announced that it has sold its first shipment of iron ore from the Connie Deposit at its Pardoo DSO project located in the Pilbara of Western Australia.

Atlas said that a medium sized Chinese steel mill that purchased the iron ore had expressed a very strong interest in a long term off take agreement.

Atlas said it would immediately commence hauling ore to the port of Port Hedland for shipment and remains on track to achieve its first shipment through Port Hedland in the first week of December 2008.

Mr David Flanagan MD of Atlas said that the company is very much looking forward to developing a long term, win win relationship with its first customer.

Mr Flanagan said that "To take Pardoo from concept to discovery, to resources, then reserves, through the permitting phase, into commissioning and now on track for export in a little over three years is a terrific achievement.”

Atlas added that off-take negotiations for the balance of the Pardoo iron ore were ongoing and the company expected to complete and disclose further contracts in the short term.

Reuters quoted Mr Roger Agnelli CEO of Vale as saying that he expected the global financial crisis to worsen in the coming three to four months.

Mr Roger said that "Some think that it could last two years, but I think that market conditions will deteriorate intensely in the next three to four months and we could see a recovery in the second quarter of 2009."

Vale had earlier said that it would cut its iron ore production by 10% to align itself with a fall in demand from the international steel industry.

Russia’s government announced the signing of the first railway bridge deal with China which is a potential supply route for iron ore exports to the Chinese border from Russian miner Aricom. The annual capacity is expected to reach 20 million tonnes in both directions.

According to data from China Customs, China imported a total of 5.4 million tonnes of iron ore from Russia in 2007.

It is reported that the governments of the Sultanate and Brazil signed an agreement for the supply of gas for 20 years to the industrial complex project of the Brazil based Vale Company, which will be set up in Sohar Industrial Port.

The agreement was signed on behalf of the Sultanate by Mr Ahmed bin Abdulnabi Macki minister of national economy and deputy chairman of Financial Affairs & Energy Resources Council and the chairman and CEO of the firm for Vale.

Mr Macki said that "The agreement comes as part of the Sultanate interest to lure foreign capital to set up major industrial projects that meet the needs of the local and international markets in fields such as steel and providing job opportunities for Omanis."

He also pointed out that the Sultanate encourages direct foreign investment after ensuring economic feasibility and that the venture will realize the prospective aims behind its formation.

The USD 1 billion Brazilian venture will be set up in Sohar before the end of 2008 and it will produce 10 million tonnes of steel ore.

Reuters reported that Peru government has given the military the green light to step in to maintain order in the southern province of Tacna, where thousands blocked roads and cut water supplies this week to protest against a mining royalty law.

The Ministry of Defense in a resolution said that "The armed forces are authorized to intervene to help the national police provide security in the department of Tacna, where diverse organizations and social agitators are preparing acts of violence.”

The measure will remain in place until November 7th 2008.

Friday marked a fourth day of protests in the provinces of Tacna and neighboring Moquegua, which are locked in a dispute over how to share millions of dollars in taxes paid by Southern Copper Corp, a unit of Grupo Mexico.

The legislation passed on Thursday overhauls the way royalties are distributed to all provinces in a country with hundreds of mines. The bill was approved by a big majority in Congress and President Alan Garcia is expected to sign it into law. The legislation would levy taxes based on how much mineral wealth a mine produces, rather than on how much dirt a mine moves, as the system does now.

Mining accounts for more than 50% of Peru's total exports. Peru is the world's second largest producer of copper and zinc, its top silver producer and its fifth gold producer.

Britain's Sunday Times newspaper reported that European regulators could threaten to stop the proposed takeover of Rio Tinto by BHP Billiton because of the dominance the pair have over the world's iron ore supply.

The report said the warning will come in a long awaited "statement of objections" from Brussels, which will be crucial in deciding whether the second-largest corporate takeover ever can go ahead.

A merged BHP-Rio would control about a third of the seaborne iron-ore trade, thanks to the pair's huge mines in northwest Australia, which are the main suppliers of iron ore to steel mills across Asia.

The report said that BHP which launched its bid for Rio a year ago, will have four weeks in which to tell the commission how it plans to overcome its objections.

A spokeswoman for Rio Tinto refused to comment on the situation, while a spokesman at BHP was not available for immediate comment.

It is reported that Mr Jual Oram former union minister & BJP MP recently renewed his objections and opposition to leasing out of Khandadhar iron ore mines to POSCO.

Reacting to reports that the BJD-BJP government was all set to provide prospecting licence of Khandadhar iron ore reserve to Posco, Mr Oram said any such move will be deemed anti people. He said that he will oppose the state government’s move and lead the movement by inhabitants of Khandadhar.

It may be noted that Mr Oram had caused much embarrassment to the Mr Naveen Patnaik government earlier by raising objections to the MoU signed between POSCO and the state government.

Earlier he had sought detailed clarifications from the CM and followed this up by joining hands with the agitating people at Khandadhar.

The state government had however ignored Mr Oram’s protests and moved forward with the mining proposal. Recently, hearing of all applicants for the mines had been conducted and the government was reportedly close to recommending the mines in favor of POSCO.

It is reported that till the close of last week of October 30th 2008, iron ore stockpiles at China's 23 major ports rose by 0.58 million tonnes to 71.56 million tonnes, out of which Indian spot ore reduced to 18.3 million tonnes.

(Stocks in million tonne))

It is reported that Coal India Limited will be able to sort out the issue of inking Fuel Supply Agreement with power utilities.

Mr PS Bhattacharyya chairman of CIL on the sidelines of a program to mark the company's foundation day told reporters that "A meeting between the Coal Secretary and his counterpart in the Power Ministry was held recently where the FSA issue had figured."

Mr Bhattacharyya said when asked described the demand by power companies for trigger level as unjustified and questioned how CIL could meet the demand of other sectors in that case.

He however refused to comment on what could be the possible trigger level. According to the new coal distribution policy, companies which require more than 4,200 tonnes of coal annually need to enter into FSA with CIL.

Mr Bhattacharyya who is slated to meet Mr RS Sharma chief of National Thermal Power Corporation on November 3rd said that the issue would again be discussed with power utilities and hoped that it would be resolved soon.

Mr Sharma had earlier said that they would not sign the FSA if CIL could not assure 90% of the committed coal supply to power utilities.

The power companies have expressed reservation in signing the agreement over fixing of the trigger level or the level of supply below which CIL has to pay a penalty.

It is reported that China iron ore import from different countries during January to September 2008 total 346,111,432 tonnes where Australia top with 140,978,152 tonnes.

In tonnes

(Sourced from MySteel.com)

Gujarat NRE Coke Ltd has announced the unaudited financial results for the quarter ended September 30th 2008. As per report the Company has posted a net profit after tax of INR 1027.50 million for the quarter ended September 30th 2008 as compared to INR 125.50 million for the quarter ended September 30th 2007.

Its total income has increased from INR 1135.90 million for the quarter ended September 30th 2007 to INR 4987.00 million for the quarter ended September 30th 2008.

Herald Publication reported that Goan mining industry which has seen a drastic drop in exports in the past few months due to a slump in demand from China will be hit further with the Finance Ministry today deciding to amend the export duty on iron ore.

Mr Glenn Kalawampara secretary of Goa Mineral Ore Exporters Association said that “The Goan mining industry would be hit to the extent of virtually shutting down.” He said that current rate of INR 200 per tonnes, the increase is 30% to 90% depending upon the grade of the ore.

He added that the Government’s move will cause the exports to plummet further. He said that “For the past 3 months, the prices of ore have come down by at least 60% and are on the decline. This will further deepen the woes.”

Goan ores are predominantly low grade ranging from 52% to 59% iron. Moreover 90% of the Goan ores are fines and cannot be used for domestic steel consumption.

While the existing export duty on iron ore was 15% ad valorem, the ministry has now retained 15% ad valorem on lumpy ore, but has revised the export duty on iron ore fines to a flat rate of INR 200 per tonnes. While the amendment in the export duty is expected to benefit producers of high grade ore as the high grade order commands a higher price, it would severely affect producers of low grade ore to the extent that they would be forced to close down.

Xinhua reported that China's first cross-provincial coalbed methane pipeline has been approved by the National Development and Reform Commission.

The project, with a total investment of CNY 458 million would channel coalbed methane from the Qinshui basin of Shanxi Province in north China to Henan Province in central China for use in homes and chemical factories.

Sources with the company said there is no clear timetable, but the company said the construction would begin very soon and is scheduled to be completed by the end of 2009.

The designed gas transport capacity of the pipeline is 1 billion cubic meters per year. China United Coalbed Methane Corp would supply for the coalbed methane.

The NDRC said in a statement to the company the 98.2 kilometer pipeline would promote the development of coalbed methane in the Qinshui basin and help boost gas supply in areas along the channel

It is reported that China coke export to different countries during January to September 2008 total 11,053,719 tonnes where Brazil top with 2,213,895 tonnes.

In tonnes

(Sourced from MySteel.com)

It is reported that, Chinese coke market still remains quiet in October after 3rd months' downturn. Steel market follows suit and there is no sign of earlier expected bottom up in this month. It is expected that coke market will continue the trend in the Q4 and likely take meager profit in the first half of next year.

The Customs' data shows that domestic coke production in the third season gained 7.58% YoY to 257.6 million tonnes. In September, the figure saw first negative growth at 25.66 million tonnes, 11.21% less than the month earlier. Production cut is going on with coking companies which have generally taken losses upon the declining coke prices.

According to statistics with the Customs, China exported 11.05 million tonnes of coke in Q3, down 5.8% YoY, with price fob surging 157.25% to USD 471.37 per tonnes. September price fob posted at USD 700 per tonnes to 720 per tonnes for metallurgical coke, down USD 10 per tonnes to USD 20 per tonnes MoM literally if taking account of the tariff adjustment from 25% to 40% as of August 20th October export figure mainly comes from prior orders while in the next 2nd months, the shrinking order number will leave some traders in a pinch for fulfilling their slated quotas.

In terms of the biggest industry in coke consumption, the January to September period registered an output of 365.99 million tonnes of pig iron, 390.26 million tonnes of crude steel and 444.69 million tonnes of steel products, rising 5.1%, 6.2% and 8.1% YoY respectively. In September, figures saw another MoM slide of 6.23%, 6.94% and 3.93% to 37.55 million, 39.60 million and 45.92 million tonnes respectively since July. Steel production cut appears to be certain by the end of this year and there is no hope for any rally.

Coking industry features obvious periodic operation and its profit largely builds on steel industry. However, the hopeless revival of steel market coupled with Baosteel and other 24 makers announcing trimming prices of some products, marks a downturn comes for the industry. And this move means that steel makers will correct purchasing prices of materials accordingly.

With the economy slowing down, demand growth with raw materials will definitely weaken. The coke industry will enter into a structural adjustment term, characterized by stabilizing development and meager profit.

It is reported that Coal India Limited is planning to come up with an initial public offer well within the next 3 years.

Under the coveted status granted by the government to large public sector companies, the CIL board will now be able to take decision for investments up to INR 1,000 crore for a single project without government approval.

For the first time, the coal major is also open for outright purchase and picking up equity stakes in mines in the Appalachian region of the US, apart from countries like Australia, Indonesia and Africa.

Mr PS Bhattacharyya chairman of CIL recently said that “The Navratna status gives us a lot more in terms of empowerment for sanctioning projects up to INR 1,000 crore in both domestic and overseas markets. We will gradually unveil a host of plans to become truly global with time.”

Mr Bhattacharyya said that “Being the largest coal mining company, we are globally relevant, but there are smaller companies like Rio Tinto and BHP Billiton which are present all across. We would like to spread our wings like that. We are seriously looking at acquiring equity in some of these mines.”

It is reported that the officials from Ministry of Land and Resources as saying that, China should participate in global mineral resource utilization. He added that China will support and encourage overseas investment by Chinese mineral enterprises in policy aspect.
Mr Peng Qiming, Director of International Cooperation & Science Department of MLR said that, China takes part in global cooperation to gain a win won result. He said that exploration and exploitation in overseas countries by domestic enterprises are business activities. Chinese government will not directly intervene in this except policy support and encouragement and that is also the case in other countries.

According to MLR released the country would accelerate overseas exploration and exploitation besides similar moves in China, in a bid to gain badly needed minerals that are with huge domestic potential, such as iron, copper and aluminum. For minerals like chrome, nickel, manganese and so on, MLR urged to strengthen domestic potential exploration, and encouraged domestic enterprises to buy into foreign mining companies to seek stable international supply. Dependency on foreign resources is asked to be limited in 60% to 95%.

Mr Zeng Shaojin, Vice Chairman of China Mining Association said that in the meanwhile foreign funded enterprises only take no more than 1% in China's domestic mineral market. He said that that there is no substantial change in supply and demand relationship. China's steel output will keep rising due to infrastructure constructions, and this will boost demand for iron ore. Insufficient cycling utilization in steel industry also increases the country's dependency on iron ore. He said that "In the United States, only 40% of steel output is from iron ore and the rest come from cycling utilization of steel products. But in China, 94% of steel output is made from iron ore."

He added that "On account of various factors including speculations, iron ore benchmark prices are usually agreed at high levels. This is especially the case in this year. Domestic price started to drop one month after the agreement. However increasing domestic ore output would impact international price and would benefit China.”

Coal Insights reported that the TATA group is convinced that its technology partner Sasol of South Africa has the most suitable proposal for the USD 8 billion coal to liquid project.

As per report some 22 participants have been short listed for setting up India's first CTL project with a capacity of 80,000 barrels of oil a day.

The TATAs in a letter have told the government that "Sasol's proven record in CTL is now internationally recognized from among various other technology suppliers. The technology challenges in CTL are such that it is critical for India's first CTL project to have the least technology risk."

With crude oil prices rising, countries are seeking alternative sources of energy to fuel their economic growth. As a result, there has been a huge rush of proposals before the Coal Ministry from the large corporate including TATA Sons-Sasol, Reliance Industries, Reliance Power, Essar, SAIL, Indian Oil, Adani, Sterlite, JSW, GMR and Gail.

It is reported that Q3 earnings for Walter Industries Inc more than doubled amid higher prices for steelmaking coal. In the quarter ending September 30th, the company earned USD 55 million as compared to USD 24.4 million during the same period last year.

As per report, excluding charges from the company's homebuilding business, which the company plans to sell, it earned USD 1.27 a share. Revenue increased 24.3% to USD 388 million.

Walter executives attributed the improvement to higher prices for metallurgical coal, which is used to make steel. So called met coal prices during the quarter averaged USD 161.92 a tonnes or 81% higher than the average price in the third quarter of 2007.

Mr Michael Tokarz chairman of Walter Industries said in a statement that "Despite recent cutbacks in global steel capacity, we remain on track for record earnings in 2008 and 2009 as our premium, hard coking coal remains in high demand."

Last month, Walter acquired Taft Coal Sales & Associates, a coal mining company in Alabama for USD 23.5 million. The deal added 600,000 tonnes to Walter's annual coal production and increased Walter's coal reserves by 4.3 million tonnes. The purchase of Taft and increased production from Walter's existing mines will help Walter boost its coal output to 11 million tonnes in 2010.

LKAB's board has decided on the construction of a new main haulage level for the iron ore mine in Kiruna. The investment is the single largest in the company's history.

Mr Ola Johnsson president & CEO of LKAB said that this is in line with the company's long term strategy and it backs up investments totaling about SEK 20 billion that we have already made in facilities at surface level, thereby securing LKAB's continued operation in the ore fields.

LKAB's board voted on the main level on October 28th 2008. The expenditure is estimated at nearly SEK 12.5 billion.

Mr Johnsson said that "The investment in a new main level sends a clear signal, our belief in the future is strong and we will continue to mine the world's most environmentally friendly iron ore. Our magnetite ore, upgraded to green pellets is without a doubt a product of the future.

LKAB is investing its profit in its own operations in the ore fields to secure the company's future. The huge investment in a new main level will mean that LKAB's iron ore mining and processing operations in Kiruna are ensured until 2030.

The urban transition in Kiruna, which is a direct consequence of mining at the new level will be a challenge shared by the various stakeholders, but it will also stimulate growth in the region, thanks to the major construction projects that relocation of the town will entail.

The investment decision, which comes during a global financial crisis and at a time of great economic uncertainty was made easier by the fact that LKAB commands a solid financial position. The investment includes work in the mine at a cost of more than a billion kronor, for the construction of infrastructure such as roads, ventilation and hoisting systems etc which has been under way since 2006.

LKAB's expansion in the operating locations in the ore fields entails a successive expansion of deformation zones, which is a result of mining. Together with other concerned parties, such as government and local authorities, other companies, property owners and other stakeholders, LKAB is working actively to find joint solutions for the structural transformation. Therefore, as agreements are reached, LKAB is successively allocating funds for agreed measures. The structural transformation will entail considerable expenditures during the coming years. LKAB will comply with the Minerals Act and will assume responsibly for replacing existing functions.

As per report, the investment is conditional upon mining concessions, land use permits and environmental permits being granted to LKAB by the Mining Inspectorate of Sweden and the Environmental Court, respectively.

Wartsila Corporation has announced a major contract to supply engines for 12 of the world’s largest ore carriers. The ore carriers will be built by Rongsheng Shipbuilding & Heavy Industries of China. Each vessel will contain 7 Wartsila RT-flex82T low speed engines and have the capacity of 400,000 deadweight tonnes.

The RT-flex82T engine is one of four new engine types developed by Wärtsilä. The engine features an 820 millimeter cylinder bore and an electronically-controlled RT-flex common rail system.

According to the company, the RT-flex common-rail technology benefits ship owners by providing greater flexibility in engine setting for reduced fuel consumption, lower minimum running speeds, smokeless operation at all running speeds and better control of other exhaust emissions.

Once built, the ships will be used on a shuttle service carrying iron ore to East Asia. The first of the ships is scheduled for delivery by the end of 2011 and the order is expected to be completed in 2012.

It is reported that Polo Resources Limited has retain a strong financial position with USD 81 million in cash and added cash burn has been reduced by USD 1 million per annum.

The report added that coal production of Polo Resources has started in Mongolia and expects the Ereen coal mine to become cash generative during the fourth quarter of 2008 and said the resulting funds will be used for the exploration programs underway in the South Gobi Basin.

Polo Resources said it continues to evaluate strategic options regarding its 26.3% interest in Caledon Resources Plc and its 29.8% interest in GCM Resources Plc.

ABC Online reported that the State Opposition have said that the government should use a world downturn in iron ore demand to buy time for more in depth assessments of a proposed deep sea port at Port Bonython.

As per report, China's steel industry is slowing has spread fears of a drop in demand for Australia's iron ore, which is planned to be shipped out of the new port.

Mr David Ridgway a mineral resources spokesman of the Opposition said it is an opportunity for the government to give more time and scrutiny to the development. He said that "What this allows us to do if there is a downturn and a slowing of demand is to actually take a deep breath and get the planning right and make sure all of the environmental checks and balances are in place, so that we end up with a well placed facility that serves the industry very well but also protects the environment."

Mr Patrick Conlon Infrastructure minister said the project will be evaluated on its merits after a private sector feasibility study, and the Opposition should stop talking it down.

The Chamber of Mines and Energy says it expects any downturn in iron ore demand to be short lived and have minimal or no impact on the Port Bonython project.

Bloomberg reported that Transnet Limited second half coal volumes will exceed the 29.9 million tonnes carried in the first half, as problems which have limited capacity are resolved.

Ms Maria Ramos CEO of Transnet said that it is speaking to industry stakeholders including BHP Billiton and Exxaro Resources Limited to identify and resolve the problems which have resulted in its coal rail line performing below design capacity.

While the Richards Bay Coal Terminal on South Africa's east coast has an annual capacity of 76 million tonnes, export volumes are only expected to reach about 60 million tonnes in 2008.

Earlier Transnet said that first half profit fell 34% after costs rose and it took charges on revaluing the rolling stock in its freight rail division. Net income dropped to ZAR 1.66 billion in the 6 months ended September 30th 2008 from ZAR 2.51 billion in 2007. Sales climbed 13% to ZAR 16.8 billion. Iron ore exports rose 5% to 15.9 million tonnes during the first half, while coal export volumes decreased 6% to 29.9 million tonnes because of operational issues and derailments.

In the first six months Transnet spent ZAR 8.3 billion, up by 32% from the same period in 2007. It plans to spend ZAR 12.6 billion in the second half.

It is reported that Mr Syed Qaim Ali Shah chief minister of Sindh and also chairman of Thar Coal & Energy Board has approved the Technical Assistance Program of World Bank worth USD 26 million in a meeting of the board held at CM House on November 1st 2008.

According to a handout issued from CM House, it stated that the second meeting of the board, chaired by the CM had approved the Technical Assistance Program of World Bank worth USD 26 million. The details will be finalized soon. The World Bank team is currently on tour of Pakistan and matters are to be finalized during negotiations.

The meeting discussed matter pertaining to development of schemes of Thar Coal and Power Plant. Mr Muhammad Younis Dhaga Sindh secretary for mines & mineral development gave briefing on World Bank’s Sindh Coal and Power Technical Assistance Project which included World Bank’s strategic context for coal, basis of design, objectives of the project, description of project and timelines schedule for major activities of project from November 2008 to December 2009.

The board also decided to hold Second Investors Round Table Conference at Hong Kong or Dubai very soon. It was also decided that the meeting of Board would be regularly held every month. The CM stressed the need to accelerate pace of work on project to resolve the ongoing load shedding crisis in the province.

Bloomberg reported that Fortescue Metals Group Limited faces a significant risk of customers in Asia delaying or canceling shipments amid a widening credit freeze.

As per report, while there are no sales into the spot market and off take contracts up to almost 100 million tonnes per annum, the risk of customers delaying or canceling shipments in a rapidly softening market is a very real and significant risk.

Demand for commodities globally has been curbed by frozen credit markets and a reduction in banks willingness to provide letters of credit that traders use to fund purchases of cargoes. Steel mills in China, the world's biggest producers, this month asked rival Australian producer Mount Gibson Iron Limited to postpone deliveries amid a slump in demand and tightening credit conditions.

Fortescue has had only had one customer fail to take a shipment due to inability to get a letter of credit, but this shipment was taken by another customer.

Mr Graeme Rowley executive director of operations for Fortescue said that “Our customers continue to order and pay for Fortescue's iron ore due to the superior processing characteristics of the ore.”

Mr Shan Shanghua secretary general of the China Iron & Steel Association said last week that cash prices of iron ore fell to an almost two year low after steel mills in China cut production as the economic slowdown and the credit crunch curbed demand from automakers and builders. All steelmakers in the Asian country will be unprofitable in October after prices fell.

Platts report that Toronto based Advanced Explorations Inc intends to strengthen its Roche Bay iron ore project in Nunavut by adding an iron nugget plant.

Following the lead of US based mini mill Steel Dynamics and others, Advanced Explorations Inc plans to use the trademarked MIDREX Kobe Steel ITmk3 process to produce iron nuggets that are higher in grade about 98% Fe content for sale at a price multiple to the lower grade iron ore.

By shipping a high grade iron product, Advanced Explorations Inc explained in a statement, that fewer ships are needed to move the same amount of iron. Also, the nugget production process will generate surplus heat that may be sufficient to generate electrical power for mining and concentrate operations.

Mr John Gingerich president & CEO of Advanced Explorations Inc said that "We are confident about the nugget business opportunity as it provides additional benefits to the development of a mining project at Roche Bay. We believe this direction will result in a cost competitive end product, and allow for additional marketing opportunities throughout North America and worldwide. After evaluating the MidRex Kobe ITmk3R technology and associated economics in relation to our project, the team visited the Steel Dynamics Mesabi nugget plant in Minnesota as part of our due diligence process. We are now positive that we can further develop a flexible, cost effective marketable product that captures varying efficiencies to keep us competitive."

Despite current market conditions, Advanced Explorations Inc said it is moving forward with its proposed development agenda. Additional drill assays have been received and will be released shortly once Quality Assurance and Quality Control has been completed. It is also examining strategic business opportunities as a means to accelerate project development work. It said it was talking to Roche Bay to further simplify the project's ownership structure.

In early 2007 Advanced Explorations Inc acquired the option to earn an interest in the Roche Bay Magnetite Project located on the Melville Peninsula in Nunavut, Canada, potentially one of the world's largest undeveloped magnetite deposits.

Project Connect has announced that 103 procurement packages have just been listed by the USD 1.8 billion Karara Iron Ore Project.

The USD 1.8 billion Karara Iron Ore Project is being developed through a 50:50 JV between Gindalbie Metals Limited and Chinese steel producer, Anshan Iron & Steel Group Corporation.

The project includes magnetite and hematite resources. First production of 8 million tonne per annum is scheduled for 2010. Initial production of 2 million tonne per annum of Direct Shipping Ore hematite is scheduled for 2009.

Credit Suisse Group said that low emissions coal fired power technology or so called clean coal probably needs a further USD 15 billion of investment and 10 more years of research and development to be ready for commercial.

It quoted an analyst as saying that while the process involving the capture of carbon pollution from power generation and its storage underground is absolutely critical to global efforts to tackle global warming, it is still in an early stage technology.

The Paris based International Energy Agency had earlier said in October 2008 that spending on carbon capture and storage or CCS isn't sufficient to achieve the Group of Eight industrialized countries goal of developing 20 large plants by 2010 adding that the technology must account for almost a fifth of the world's emission reduction effort to meet a planned 50% cut in all greenhouse gases by 2050.

Carbon capture and storage technology involves extracting carbon from emissions made during power generation and industrial processes and piping it into underground storage rather than venting it into the air. Schlumberger Ltd., Santos Ltd., Royal Dutch Shell Plc and Xstrata Plc are among companies involved in proposed projects in Australia.

Guardian reported that Glencore International AG said that it has had no problems in getting letters of credit used to finance transactions. Some suppliers of oil, coal and other commodities are losing sales as the credit crisis spreads beyond financial institutions, and banks refuse financing or increase the fees for buyers.

Mr Marc Ocskay a spokesman of Glencore confirmed that it is not encountering any difficulties in opening letters of credit He however declined to comment further.

According to World Trade Organization, of the USD 13.6 trillion of goods traded worldwide, 90% rely on letters of credit or related forms of financing and guarantees such as trade credit insurance.

Metso has announced its Q3 results

Highlights of the third quarter
1. New orders worth EUR 2,246 million were received in July to September. At the end of September 2008, the order backlog was 21% higher than at the end of December 2007, standing at EUR 5,244 million.
2. Net sales grew 5% on the comparison period and totaled EUR 1,528 million
3. Earnings before interest, tax and amortization were EUR 180.7 million, ie 11.8% of net sales.
4. Operating profit was EUR 172.3 million, i.e. 11.3% of net sales.
5. Earnings per share were EUR 0.69.
6. Free cash flow was EUR 91 million.
7. Return on capital employed before a tax was 23.3%.

In EUR million

Mr Jorma Eloranta president & CEO of Metso Corporation said”In the third quarter, we made good progress towards our guided 2008 performance. Actually, the operating profit for the quarter EUR 172 million or 11.3%was the best ever third-quarter in Metso’s history. Steadily improving financial performance is a strong evidence that we are developing Metso into the right direction, and we believe that Metso is today more balanced, responsive and flexible when it comes to weathering storms in the global economy.“

He said that "In the current global economic environment, we are putting more emphasis on profitability and cash flows than growth. This means, that acquisition and investment plans are now reviewed very carefully. We are convinced that the positive cash flow impact from the ongoing programs to manage net working capital more efficiently continue to pay off in the coming months. We are also implementing tight cost control measures throughout Metso. What comes to capacity adjustments, we are prepared to move quickly when needed. At the same time, we are continuing to pursue growth especially in the emerging markets and in our services business."

Universal Coal plc announces its final results for the year ended 30th June 2008.

Highlights

1. Raised EUR 1.59 million by way of placing 79,444,887 new ordinary shares at a price of 2p per share
2. Terminated Chinese projects to focus on coal production in South Africa
3. Entered into several significant transactions in the coal-rich South African region of Mpumalanga
4. Projects have the potential to position the Company as a notable coal producer
5. Readmission document currently being prepared

Mr Nathan McMahon chairman of Universal Coal plc said “The past year has yielded some very significant developments since the Universal Coal Board decided to terminate its remaining relationships in China. We have pursued a new investment strategy in the mining and minerals sector located in South Africa. This considered approach has resulted in the Company entering into several exciting transactions which could position the Company as a notable coal producer in Southern Africa.”

He said that “On May 1st 2008, we announced that the Company’s 70.5% owned South African subsidiary will acquire 100% of the Elof prospecting rights from Injula Mining Operations Pty Ltd. On 6 August 2008, we further announced that another 100% owned South African subsidiary had acquired an exclusive option to acquire 100% of the Vlakplaats open Coal Project and a 35% interest in the Camden Coal Project. He added that these transactions, in accordance with AIM Rules, constitute a reverse takeover and will be subject to shareholder approval. Consequently, the Company’s shares have been suspended from trading on AIM until an admission document is posted to shareholders. The acquisition of the prospecting rights for both projects will also require Ministerial consent to, and registration of, the transfer by the Department of Minerals and Energy, as well as South African Reserve Bank approval.”

Mr Nathan McMahon said “The Company is in the process of preparing an admission document. However, the Company will not be able to complete this process by October 31st 2008, by when its shares will have been suspended from trading on AIM for six months. Therefore, in all likelihood the Company’s shares will be cancelled from AIM as of 7AM on November 3rd 2008. The Directors are working to complete all necessary documentation to enable the Company to return to the AIM market as soon as practicable.”

Advanced Explorations Inc announced new assay results from the 2008 drilling campaign at its Roche Bay magnetite project in Nunavut, Canada. Drill-hole RBC-08-72, drilled on section 12600 N, intersected a 163 meter interval of Banded Iron Formation averaging 29.0% iron including an 86 meter interval averaging 32.7% iron. Results continue to confirm the project potential with the latest assays ranging from 23.36% to 34.95% iron consistent with previous releases.

According to the release ‘Additionally, drill-hole RBC-08-70, drilled on section 9400 N and collared 3.2 kilometres south of drill-hole RBC-08-72, has intersected a 195.4 meter interval of BIF averaging 27.9 % iron including a 44 meter interval grading 34.95% iron. Drilled from 960 E, drill-hole RBC-08-72 undercuts several holes drilled in 2007 and confirms the presence of iron at considerable widths and depths near the centre of the main C-Zone. These results indicate broad widths of BIF, as well as subintervals of higher grade iron mineralization, occurring over the entire length of the C-Zone.”

Mr John Gingerich President & CEO of AEI said "These results continue to meet our expectations regarding the potential of the Roche Bay magnetite deposit. We remain encouraged by the C-Zone grade consistency along its strike. We are also very pleased that the results further support our business model and the development of a nugget plant operation."

Tex reported that coke imports by Japan during September 2008 were 0.19 million tonnes at an average CIF import price of USD 696.30. As a result, the cumulative imports during the period of January to September 2008 stood at 1.34 million tonnes at an average CIF import price of USD 579.49.

The total imports during the month of September included imports from China, Taiwan, India, USA, Australia and R Korea. China being the major supplier, supplied 0.14 million tonnes in September at the rate of USD 791.67 average CIF import price.

Taiwan at an average CIF import price of USD 432 supplied 0.012 million tonnes while in case of India it was 0.021 million tonnes at an average CIF import price of USD 352.42.

The costliest supplies came from USA as Japan imported only 506 tonnes at an average CIF import price of USD 907.28. In addition to this, Japan imported 0.011 million tonnes of coal coke from Australia during September 2008 at an average CIF import price of USD 573.77.

Altius announced drill core assay results have been received for the first four drill holes from its Kamistiatusset iron ore property located 10 kilometers southwest of Wabush Mines in the heart of the iron ore mining district in western Labrador.

A work program consisting of 24 drill holes totaling 6008 meters has been completed. Summarized assay results from the first four drill holes are provided in the table below. The highlights from these results are hole K 08-01, which assayed 30.10% Fe over 108.50 meters and K 08-03 which assayed 30.00% Fe over 100.40 meters. Mineralization is dominated by magnetite-rich iron formation. Drill core samples from the remaining drill holes have been submitted for analysis and results will be reported as they become available.

Drilling was conducted in three principal target areas to test interpreted and locally outcropping iron formation associated coincident gravity and airborne magnetic anomalies. From south to north these target areas are named Mills Lake, Mart Hill and Rose Lake.

Altius signed an agreement in June 2008 with Norvista Resources Corporation regarding the Kamistiatusset property. Altius also wholly owns iron ore properties totaling 589 claims in western Labrador iron ore mining district. The licenses cover more than 60 documented iron ore prospects, some of which feature high-grade iron ore based on previously reported grab samples (NL Mineral Occurrence Database).

An airborne magnetic survey was recently conducted over the Snelgrove Lake iron ore project, which covers 983 claims and is located 55 km east of the past producing Schefferville iron ore district. The average of eleven grab samples of iron formation collected by Altius personnel yields 38.5% iron.