WSD predicts India as a major steel exporter by 2010-11

World Steel Dynamics has forecast that India could become a large exporter of steel by the turn of the decade, potentially dealing a blow to the profitability of the booming steel business in Asia through the effect of pushing down prices.

It said India could export nearly 20m tonnes of the commodity in 2010-11, four times the amount this year, as a result of large planned increases in production in the next five years.

The extra steel from India streaming into world markets could potentially further push down steel prices

India beats US as favorite investment destination

India is now the second most attractive country in the world for foreign direct investment after China, according to an annual survey of global investor confidence by management consultants AT Kearney. While China has held the top spot since 2002, an increase in interest in India is a more recent development that coincides with a renewed push by FDI reforms as a source of capital, technology and know how.

Indias rise to second place from third last year came at the expense of the US, which fell to number three. Although the UK held its ground in fourth place, other western countries tumbled. Germany declined from fifth to ninth place, France from sixth to 14th, Italy from ninth to 19th and Spain from 13th to 17th place.

TATA likely to bid for acquisition of Highveld

It is reported that Tata Group is seriously considering the proposal for acquisition of the country's second largest steelmaker Highveld Steel.

Confirming the report, Tata Sons Director Dr JJ Irani has said the company is in the process of assessing all the pros and cons of such acquisition by Tata Steel. "I can not deny it. Nor can I tell you much about it. The South African company is not doing well and we are weighing the option to acquire it," he told reporters in reply to a question during an interaction.

Mittal Steel South Africa, a subsidiary of the world's largest steel company Mittal Steel, is also reportedly interested in acquiring Highveld Steel, whose majority stake is held by Anglo American company.

Chattisgarh sponge iron units face closure

It is reported that almost all of the 70 sponge iron units in Chattisgarh, mostly based in Raipur and Raigarh, have threatened to stop production from Dec 20 for an indefinite period because of the recurring shortage of iron ore as well as high coal prices and heavy power tariff.

"Sponge iron units will be suspending importing iron ore and exporting the products from December 10 and finally the units will be shut down from December 20," Mr Suresh Agarwal, president of the Sponge Iron Manufacturers Association, said. "Seventy sponge iron units, mostly based in the suburban areas of Raipur, Raigarh, Durg and Bilaspur have no option but to shut down from Dec 20 because of inadequate iron ore supply, high coal cost and heavy power tariff," Mr Agarwal said.

"Chattisgarh sponge iron units need a monthly supply of 500,000 tonnes of iron ore while they are getting just 70,000 tonnes. Not a single unit got coal linkage in the past 18 months and we have to purchase coal at a higher cost from the open market besides paying high power tariff to state government," the association said in a statement.

Chattisgarh produces 40 percent of India's sponge iron and has known resources of 230.36 million tonnes of world quality iron ore, which accounts for 18.23% of the country's total iron ore reserves. The state also has 18% of the country's total coal reserves.

Tata Steel to launch new brand for hollow sections and tubes

TATA Steel is reported to be launching a new brand to market its rectangular and square hollow sections or tubes soon. The products under the new brand would have applications in varied industries such as construction, auto and agriculture. The new brand would be launched by TATA Steel MD Mr B Muthuraman at the Architecture, Engineering and Construction World Expo and Conference

Presently the production of hollow sections is limited to about 30,000 tonnes of annually catering to construction segment, but it is reported that TATA Steel is adding a second mill at Jamshedpur within the next two years to reach the capacity of about a 100,000 tonnes per annum and also cater to auto sector

TATA Steel already has several brands under which its finished steel products are sold including TATA Steelium, TATA Tiscon, TATA Shaktee and TATA Wiron. Almost all TATA brands command huge premiums in the market

India iron ore exports increasing every year

India exports more than 50% of the iron ore it produces, with China consuming a lion's share of the exported commodity, according to official statistics.

Export of iron ore has been increasing during last three years. The export amounted to 48.02 million tonnes in 2002-03, 62.58 million tonnes in 2003-04 and 78.15 million tonnes in 2004-05. The export as a percentage of total production in the country increased from 48.47% in 2003-04 to 50.94% in 2003-04 and 54.75% in 2004-05. In value terms, the exports have risen from Rs36.55bn in 2002-03 to Rs70.42bn in 2003-04 and Rs136.50bn in 2004-05

China has accounted for a major chunk of exports amounting to 26.27 million tonnes 2002-03, 42.06 million tonnes in 2003-04 and 59.40 million tonnes in 2004-05.

RDCIS organizing international conference on coking coal

SAILs Research and Development Centre for Iron and Steel RDCIS is organizing a 3 day international conference on "Coking Coal and Coke Making - Challenges and Opportunities (ICC-2005)" from December 12.
The conference aimed at providing a common platform for coal producers, suppliers, coke products, coke oven designers and equipment manufacturers, rebuilding specialists, scientists and academicians across the world to share information and to find out ways and means to tackle the challenges faced by world coke industry, according to RDCIS ED Mr GIS Chouhan.

Mr Chouhan told media that the conference among other things would discuss the areas such as widening coal supplies by identification of new sources, adopting technologies, sea-borne trade in coking coals, developments in coal preparation and pre-carbonization technologies.

44 technical papers based on recent work are expected to be presented by the experts from coal and coke industry, research and consultancy organizations, equipment manufacturers from Japan, Germany, Ukraine, China, Indonesia, Australia, USA and India in various technical sessions.

More than three hundred delegates representing various organizations are expected to attend the conference. Participating organizations from overseas included Giprokok, BHP Billiton, BHP-Mitsubishi alliance, Shanxi province chemical design institute, Scateeh Australia, DMT Germany, Flottweg, Germany and Banpu Public Ltd, Indonesia.

SAILs 2011-12 corporate plan hinges on iron ore from Chiria

Indian steel minister Mr Ram Vilas Paswan informed Rajya Sabha that the matter has been taken up with the Government of Jharkhand to consider the renewal of mining leases for Chiria Iron Ore Mines to SAIL

SAILS corporate plan 2011-12 has assessed its iron ore requirement for its projected production under their corporate plan 2011-12 which would be difficult to fulfill in case iron ore is not available from Chiria mines.

SAILs RDCIS & Balmer Lawrie sign MoU for synthetic rolling oil for CR Mills

SAILs Research and Development Centre Iron and Steel RDCIS and Balmer Lawrie have signed a MoU to develop synthetic rolling oil for cold rolling mill. This is going to be the first time when such types of lubricants will be developed in the country.

According to RDCIS chief of corporate communications, this oil will have better lubricity, which can withstand higher temperature and rolling loads. This will help increase the rolling speed of the cold rolling mills and thereby improve their productivity.

CMPDI prepares Coal Vision 2025

A draft Coal Vision 2025 has been prepared by Central Mine Planning & Design Institute Limited (CMPDIL) giving broad estimate of the tentative investment required for achieving higher coal production in the country.

The details of tentative investment in crores up to 2025 are as follows:

The draft Coal Vision document envisages an increase in all India opencast production from 298 MT in 2024-25 for which an investment of Rs.95,000 crore would be required.

The draft Vision document has been circulated to various ministries and others concerned for comments and the final views would be taken only after wide ranging consultations as per Minister of State for Coal Dr. Dasari Narayana Rao

SAILs iron ore mines create record dispatch during April- November

Raw Materials Division RMD of SAIL has recorded a growth of 18.3% in iron ore dispatch during April-November of current fiscal over the corresponding period of previous year. Total dispatch of 8.741 million tonnes of iron ore was the best ever dispatch during this period since inception and met the total iron ore requirement of the SAILs steel plants

Total iron ore production of RMD mines had gone up to 8.365 million tonnes notching a growth of 5.2% over the corresponding period last year. Kiriburu, Meghahatuburu, and Bolani mines registered a growth in production by 6%, 1.1% and 3.9% respectively.

GSI estimates total Indian coal reserves at 248 billion tonnes

Geological Survey of India GSI, based on data available till January 2005, has estimated about 248 billion tonnes of coal resources. Out of this about 93 billion tonnes are in 'Proved' category for which project planning and mining has been done.

The balance about 155 billion tonnes are in 'indicated' and 'Inferred' categories. The reserves in these categories may be considered for project planning and mining after they are brought to 'Proved' category through detailed exploration. The viability of mining of coal resources however, depends on the economics and the state of technology. With advanced technology and better economics more and more resources may be mined.

The estimated demand of coal at the end of XI Plan (2011-12), as assessed by the Planning Commission is about 676 million tonnes. As per the plan a production level of 593 million tonnes will be achieved by the end of XI Plan period. To bridge the gap between demand and availability of coal, the government has taken a number of steps to ensure adequate availability of coal.

Iron ore should be accessible to domestic industries Dr Irani

TATA Sons Director Dr JJ Irani has said the Government should ensure easy access to domestic iron ore reserves for Indian steel producers anywhere in the country preferring larger national interest over that of states. ''Iron ore should be made available to Indian entrepreneurs outside the respective state boundaries. We have to think about the country and not a state,'' he told reporters.

Dr Irani has already made a recommendation to the Government in this direction as a member of a high-level committee, set up by the Planning Commission to review the National Mineral Policy and recommend possible amendments to the Mines and Minerals Development and Regulation (MMDR) Act, 1957, to encourage investment in public and private sector. The committee, comprising representatives of Central and State Governments and industry associations, is expected to submit its report next month, Dr Irani said.

Opposing export, Dr Irani said India possesses high grade iron reserves which should be made available only within the country. ''Good iron ore is limited to India and it should not be exported,'' he added.

West Bengal CM Mr Buddhadeb Bhattacharjee had also urged the centre to formulate a national iron ore policy to ensure that steel plants could access domestic iron ore deposits anywhere in the country. He alleged that the existing practice being followed by iron ore bearing states was detrimental to the uniform growth of steel industry. His appeal came in the wake of Jharkhands refusal to allow the Jindal group, proposing to set up steel plant in West Bengal, to access iron ore from the Jharkhand.

Jharkhand to create land bank

Jharkhand government is reported to be scouting for land for setting up industries where MOUs have been signed. The land bank would enable the government meet demand from industrial houses as and when they come up with new projects. The state government has so far signed MoUs with 39 industrial houses, the prominent being Mittal Steel Co. N.V., Tata Steel, Essar and Jindal Steel

"We have asked the district administrations to send data on vacant government land in their respective areas and till now, we have received information about 8,000 acres for our land bank," Mines and Geology Minister Mr Madhu Kora said.

"In the second phase, we will send the list of vacant land to the revenue department for cross checking," he said, adding that the work of drawing up the land bank would speed up land acquisition for industrialization.

CCL November production up by 5%

The Central Coalfields Limited CCL has registered production of coal worth Rs 103.07 crore during November 2005. This was disclosed by CCL CMD Mr RP Retolia at a co-ordination committee meeting of the company. It has registered an increase of 5% over November 2004.

This meeting was held to discuss the achievements, profit and other related matters for November 2005. The chairman said that during the current fiscal month the production of coal has reached 3.5 million tonnes, an increase of 2% over last year.

Bharat Forge signs JV with FAW Corp to enter China

Bharat Forge Ltd BFL announced that it has signed a JV contract with FAW Corporation for its forging business to make an entry into the Chinese forgings market. BFL is to hold 52% stake in the company, which is being named as FAW Bharat Forge (Changchun) Ltd. BFL's 52%, is through cash, while FAW's 48% is through its assets. The joint venture is with effect from April 1, 2006.

"The domestic Chinese forgings market is four times bigger than the Indian market. So there is a huge opportunity in China," Mr BN Kalyani, Chairman, BFL, said. BFL will fund the stake acquisition from its internal accruals. These funds will be used for modernization of the FAW Forgings' facilities in China, he said. FAW has a forgings capacity of 100,000 tonnes, but not all of it is being used at present. The manufacturing facility is at Changchun in northern China.

BMW to set up shop in Tamil Nadu

German auto major BMW on Thursday signed an agreement with the Tamil Nadu government for setting up a car assembly plant in the state with an investment of Rs.1.8 billion ($39 million) over five years. The new facility is to be set up in five years at Mahindra World City in Maraimalai Nagar near Sriperumbudur, 50 km west of here. Two other auto majors Ford and Hyundai already have manufacturing facilities in this area.

It is learnt that after a detailed evaluation of infrastructure facilities and support package, BMW decided that Chennai was the best location for establishing its car assembly plant.

L&T bags order from Reliance for Jamnagar Refinery project

Larsen & Toubro L&T has bagged an Rs 303 crore order from Reliance to supply critical equipment for its Jamnagar export refinery project. L&T announced that it will supply a range of equipment, including a fluidized catalytic cracker regenerator, large-size vacuum and crude columns and thick-walled, stainless steel-clad alloy steel reactors.

'' Fabrication of the large-sized equipment will be carried out at the company's works at Hazira near Surat that is geared to tackle jobs of large dimensions,'' an L & T release said. L&T senior VP Mr MV Kotwal said '' L&T had supplied the world's largest regenerator to Reliance in 1998. This repeat order shows the confidence Reliance reposes in L&T's advanced engineering and fabrication capabilities.''

BHP Billiton sees firm iron ore prices for two years

BHP Billiton, the world's biggest mining company, said iron ore prices won't fall in at least two years before producers add new capacity to ease a shortage. The market is in short supply and we believe that will be the case for the next two years,'' Mr Clinton Dines, president of BHP's China operations is reported to have told media. Probably prices will reflect that,'' he said.

Steel demand in China is still rising and so is iron ore demand, but there isn't enough iron ore,'' Mr Dines said. China has become the single biggest market for BHP this year, accounting for 12.6% of sales, from 9.8% in 2004, Mr Dines said.

Annual contract iron ore prices are forecast to rise 12 percent to $44.80 a metric ton in the year starting April 1, from $40 a ton now

Traditionally, price talks start between major suppliers of iron ore and European and Japanese steelmakers. When they reach an agreement, that price becomes a benchmark for steelmakers in other countries including China. In recent years, China has become a new factor in the market and perhaps that will force the process to change,'' Mr Dines said. We are watching with interest to see how that develops,'' he said. BHP is spending equal time talking with Chinese and Japanese clients.

Chinas steel & alumina prices to fall on oversupply JP Morgan

Steel and alumina prices will continue to decline in China next year on chronic overcapacity, JP Morgan said in a research note. 'We continue to be bearish on steel prices in 2006, although the magnitude of the price fall might be much milder than in 2005. Steel companies might face further margin squeeze as raw material prices, such as iron ore and coking coke, may remain firm,' said Mr Zhang a JP Morgan analyst

'We held the view that China steel prices might fall as capacity grew faster than demand' Mr Zhang said.

Metals and bulk commodity prices varied dramatically in 2005 with steel prices in China plummeting on oversupply. Meanwhile, alumina prices surged to record highs on production shortfalls and aluminum prices moved up on capacity shutdown, JP Morgan said. JP Morgan expects the spot alumina price to fall in 2006 and fall sharply in 2007 on aluminum production closure and massive alumina capacity growth. However, it said we might see the aluminum price remaining firm as a result of capacity closure due to high alumina and power prices.

The upside of iron ore prices might be limited and increasingly there is a risk of flat iron ore price for next year's contract. However, iron ore prices should stay firmer than steel prices and Chinese steelmakers might face a further margin squeeze going forward, JP Morgan added.

BHP to sponsor Beijing 2008 Olympic and Paralympics Games

The Beijing Organizing Committee for the Games of the XXIX Olympiad BOCOG announced that BHP Billiton has been named the Diversified Minerals and Medals Sponsor of the Beijing 2008 Olympic Games and the Paralympics Games.

BHP Billiton, the worlds largest diversified resources company, completed the deal with BOCOG at a signing ceremony attended by senior officials from BOCOG and BHP Billiton.

In line with the sponsorship agreement, BHP Billiton will provide financial support to the Beijing Olympic Games and the Beijing Paralympics Games as well as the raw materials for the Olympic medals and the Paralympics medals.

The 2008 Olympic Games will showcase to the world Chinas commitment to excellence and its plan for economic growth and prosperity; it is an honor for BHP Billiton to participate in this defining opportunity for China on the world stage, said Mr Chip Goodyear, CEO of BHP Billiton. We are delighted to demonstrate our continued commitment to China and to the Olympic Movement by sponsoring the Beijing 2008 Olympic Games and the 2008 Paralympics Games, he said

BHP Billiton will develop a comprehensive marketing program to further enhance the value of the sponsorship and to promote its support for the Olympic Games and BOCOG.

Evraz Group acquires 50% interest in Yuzhkuzbassugol

Evraz Group, one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, today announced it has agreed to acquire a 50% stake in Joint Stock Company Yuzhkuzbassugol, a leading Russian producer of coking coal, from Crosland Limited for US$675 million.

Yuzhkuzbassugol is Russias leading producer of coking coal, and in 2004 produced approximately 14 million tonnes of coking coal and approximately 4 million tonnes of steam coal.

Evraz Group S.A. is one of the largest vertically-integrated steel and mining businesses with operations mainly in Russia. In 2004, Evraz Group produced 13.7 million tonnes of crude steel. Evraz Groups principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia.

During 2005, Evraz acquired Palini & Bertoli in Italy and Vitkovice Steel in the Czech Republic.

Evraz Groups fast-growing mining businesses comprise Evrazruda, the Kachkanarsky (KGOK) and Vysokogorsky (VGOK) iron ore mining complexes and NeryungriUgol Coal Company and an equity interest in the Raspadskaya coal mine. Evraz obtains approximately 75% of its iron ore requirements from Evrazruda, KGOK and VGOK and also obtains the majority of its coking coal from Raspadskaya and other affiliated producers.

Evraz Group also owns and operates the Nakhodka commercial sea port, in the Far East of Russia, which facilitates access to Asian export markets.

Inventories decline & imports rise in US during November

The US based Institute of Supply Management's (ISM) Steel Buyers Forum survey shows that during November inventories have dropped and that buyers want to maintain lower stocks, probably because they are comfortable with domestic and foreign availability, said the latest Steel Market Intelligence report from Michelle Applebaum Research Thursday.

"Most respondents indicate no change in the relative pricing of imports versus domestic despite recent increases in domestic prices, as import prices have tracked domestic fairly consistently," noted the report.

Some three-quarters of interviewees in the November US survey said their tonnage on hand would cover shipping levels of one to two months or less, while 26% had inventory levels of more than two months. Moreover, 87% of the US survey respondents said their inventories in October were the same or down at least 10% from a year ago, in sharp contrast to the 39% who said their inventories were down at least 10% year-on-year in March of this year.

"While buyers do foresee some tightness in supply, some 45% of survey respondents said they expect no steel shortages, compared with 37% who said this in September. Steel buyers forecasting a downturn for their own industry rose to 22% in October, from September's 16%. 78% predicted steady to increasing sales and production, in comparison to 84% who made this prediction in September," said the report.

Foreign steel continues to attract new business, as 35% of the US-based respondents said they would place new orders, up from 26% in September and 9% in August. Meanwhile, 39% of steel buyers in October said foreign prices were being offered at below domestic quotes, against 32% who claimed this was the case in September. The portion that said prices are equal was unchanged at 57%, and just 4% said in October that foreign prices were higher.

Iron ore price hike may stop the steel price slide in Asia

Mining giants BHP, Rio Tinto and CVRD are now in iron ore contract talks with steel mills, with analysts tipping price gains in the steelmaking raw material of up to 30%. Mills in Asia and Europe complained long and loud last year when the producers won hikes of 71.5%. The contracts will settle iron prices for the next Japanese fiscal year. The talks between steel mills and the big miners are expected to drag on until close to the April 1 start of the Japanese fiscal year.

"All eyes are on the iron ore contract negotiations," Mr Graeme Fitzgerald Onesteel's oil and gas pipe manager, told during a conference. "By all accounts iron ore producers want to secure another increase," Mr Fitzgerald said. "If that occurs, the price decrease we're seeing in the steel market can't continue because steelmakers will be under too much pressure." Steel prices may fall further in the next three months as China makes more of the building material than it consumes, Mr Fitzgerald said

Mittal Steel US CEO to speak to Weirton steel workers

Mr Lou Schorsch CEO of Mittal Steel US has scheduled a special communications meeting with all active and laid off employees of the Weirton plant Tuesday to discuss the shutdown of Weirton's Iron making and Steelmaking facilities.

Mr Mark Glyptis, president, Independent Steelworkers Union, encouraged all union members to be at the communications meeting. "This is a chance for every single active employee and every laid off employee to listen to Mr Lou Schorsch explain the corporate reasoning behind the decision to shut down the Hot End," Mr Glyptis said. Mr Glyptis said this is probably the most important meeting employees will ever attend.

The decision to shut down the Weirton iron making and steelmaking facilities was officially announced last week by Mr Bill Brake, executive VP Mittal Steel US, eastern operations.

ThyssenKrupp Electrical Steel restructuring yields results

The restructuring of the electrical steel operations of ThyssenKrupp Steel is starting to bear fruit: for the 2004-2005 fiscal years, subsidiary ThyssenKrupp Electrical Steel GmbH reported an eight-figure profit compared with a high eight-figure loss a year earlier. At 200,000 metric tons, the company also set a new production record in the past fiscal year. Sales amounted to 387 million euros, a 28% improvement on the prior-year figure.

Measures aimed at increasing capacity, some of them already completed, will boost output to 250,000 metric tons by the 2006-2007 fiscal years.

ThyssenKrupp Electrical Steel GmbH is Europe's biggest supplier of grain-oriented electrical steel CRGO and ranks number two worldwide with two production facilities at Gelsenkirchen in Germany and Isbergues in France.

Grain-oriented electrical steel has a special microstructure, developed in a complex manufacturing process, and is mainly used in transformers. ThyssenKrupp Electrical Steel is currently profiting from dynamic market growth, driven mainly by strong demand from India and China. At present, some 40% of the worldwide annual production of 1.5 million tons is being consumed by the Asian markets.

The current structure of ThyssenKrupp Electrical Steel GmbH with its focus on CRGO is the result of a radical reorganization of the electrical steel business of ThyssenKrupp Steel. The two key events were the closure of the unprofitable electrical steel production operations in Terni, Italy at the end of September 2005 and the integration of the non grain oriented electrical CRNGO steel activities in the parent company

Vietnamese steel makers feeling the heat

The production cost for a tonne of steel is more than VND7mil, however many enterprises have to sell below this level.

It is learnt that the demand for steel is now decreasing despite the construction season and total steel consumption of members of Vietnam Steel Association (VSA) was just 200,000 tonnes in October 2005 down by 34% over October 2004

With current international billet price levels manufacturers have to sell for at least VND7mil to break even but many are selling at lesser prices. As steel producers attempt to dump on the domestic market, VSA members have proposed establishing a benchmark for sale prices, because they fear that if the problem is not solved, steel manufacturers will be unable to survive.

ThyssenKrupp board approves slab plant in Brazil

The board of German steelmaker ThyssenKrupp Steel gave the green light to a $2 billion steel slab plant in Brazil's Rio de Janeiro state as per a company announcement. ThyssenKrupp approved the formation of Companhia Siderurgica do Atlantico or CSA. CSA is a JV project with, which will hold a 10% stake in the company. The project, which was announced in January, is expected to be completed by mid-2008.

The mill will have annual installed production capacity of 4.4 million tons of steel slabs. ThyssenKrupp intends to export the slabs to its downstream operations in Europe for finishing.

CSA is the second JV steel project for CVRD as it has formed a JV Usinas Siderurgicas de Ceara USC with Italy's Danieli and South Korea's Dongkuk and plans to lay the cornerstone for USC on Dec. 15.

CVRD takes small stakes in the companies, while guaranteeing iron ore supply for the mills. The JV strategy is a way for CVRD to secure outlets for its surging iron ore production, company President Mr Roger Agnelli said

Steel prices in Pakistan reported to decline by 15% in a week

As per some reports in local dailies, steel prices in Pakistan have witnessed sharp decline in a week as increased supply from the international market and revised rates by Pakistan Steel Mills of various varieties have brought down the products' prices by almost 15%. Dealers said the import of steel products had increased over the past couple of months as traders attempted to capitalize on declining prices in the international market.

The dealers say price cut by Pakistan Steel Mills on its various products is the major reason behind such trend as the largest single producer of steel products in the country aims at swift supply in the local market. The Pakistan Steel Mills this week slashed prices of its products for what it said to discourage large-scale dumping of secondary steel products in the country on cheaper rates through under-invoicing.

The market is expected to see healthy activity, once reconstruction in the earthquake-hit areas starts, said an importer and retail market dealer. The prices at that time are seen comparatively higher, but adequate supply could save the market from panic selling and buying, as shortage of products always cause price rise. He said a major price reduction was witnessed in hot rolled and cold rolled products, which declined by almost 10-15% coupled with significant fall in the prices of iron bars and galvanized products.

Bahrain to get a new rebar mill

A new rebar rolling mill, Unirol, will start production in Bahrain in the second quarter of 2006 for producing 180,000 tonnes steel rebars in diameter range of 8mm to 32mm. The estimated production in the first year of operations is 120,000 tonnes. It is reported that the mill design is based on German technology and is fabricated in India

Unirol is owned by the local Al Mahroos family and some Saudi investors.

Mr Putin says that Kiev must pay more for natural gas

Russian President Mr Vladimir Putin, addressing his government on Thursday, put a price tag to a natural gas dispute with Ukraine at $4.6 billion annually and stressed Kiev must pay more for gas. This is a burden on the Russian budget that is hard to explain, Mr Putin said. This is a budgetary support for our Ukrainian friends We cant sustain that. Mr Putins comments come as Ukraine and Russia has so far failed to reach an acceptable agreement on natural gas prices and transit of Russian gas to Europe via Ukraine.

Mr Putin also suggested that Ukraine should use its privatization receipts, such as $4.8 billion revenue from selling the countrys largest steel mill Kryvorizhstal, to pay the higher prices.

As end of the year is approaching, Russia is under increasing pressure to sign a transit agreement with Ukraine to secure gas supplies to the European Union next year. The dispute flared up earlier this year when Russia had suggested to cancel a 10-year Russian-Ukrainian natural gas supply agreement, which is due to expire in 2013, and to replace it with a new one that would cost Ukraine extra. Ukraine refused to accept the new agreement, seeking to keep gas prices unchanged at $50/1,000 cubic meters next year, while Russia had insisted on the price hike to $160/1,000 cu m.

Yomhlaba sues BHP and subsidiaries

Yomhlaba Resources is suing BHP Billiton and its subsidiaries for R18.87 million ($2.97 million) for its loss of income from production after BHP Billiton subsidiary Ingwe Collieries cancelled its contract with Yomhlaba in February.

Ingwe Collieries claimed that the reason for canceling the contract was fraud and theft.

Yomhlaba said yesterday it had made its own inquiries among its management and staff at the plant and was satisfied there was no fraud or dishonesty. After examining all the facts, Yomhlaba said it was convinced that Ingwe had no right to cancel the contract, but legal action had been delayed by attempts at mediation by some members of the board and by the wait for the result of a forensic investigation.

No settlement had been reached and the board had decided to go ahead with legal action. In the meantime it had to cease operations at Ingwes Koornfontein and Douglas coal mines. As a result of the problems Yomhlaba experienced, it reported a net loss of R18.95 million, including impairment of assets, on beneficiation revenue of R21.58 million in the year to June.

Ilanga Coal Mines consists of coal mines in the Ermelo and Witbank coal fields and a plant that is currently running at 45,000 tonnes a month.

China to announce aluminum policy soon

Chine, the world's biggest producer of aluminum, will soon announce a national policy governing the industry from 2006 to 2010, an industry official said yesterday.

"The aluminum industry policy and development plan have been approved by the State Council in principle, so the announcement should be soon," Mr Pan Jiazhu, vice chairman of the China Nonferrous Metals Industry Association, said in an interview at a conference

Abu Dhabi may establish specialized industrial zone for steel

Abu Dhabi is studying the potential of establishing specialized industrial zones for various sectors including steel. Chairman of Emirates Holding and director of Higher Committee for Specialized Economic Zones are reported to have told local media that a major steel complex is being planned in Abu Dhabi

The plan envisages an investment of nearly $700 million in phase 1 to produce 2 million tons of long products primarily steel rebars and further investment of $1 billion in phase 2 for the production of flat products such as plates and coils

N. Korea breaks off mining talks with Chinese firms

Three Chinese steel companies have reportedly aborted a plan to invest in the Musan iron ore mine in North Korea after the negotiations broke off. The negotiations over the development of the Musan mine hit a snag when the North Korean authorities complained about excessive exposure of the plan to the press.

Another reason may have been that North Korea thought it would not benefit much from developing the mine jointly with China

Earlier, Chinese media had said that three Chinese companies agreed to invest US$875 million in jointly developing the Musan mine, one of Asias largest iron ore mines

NLMK places shares at the price of $1.45 on LSE.

Novolipetsk Iron & Steel Works NLMK set the placement price within the framework of IPO on London Stock Exchange at the rate of $1.45 per share as per some market sources. NLMK places 420 million common stocks or 7 % of authorized capital of the Company. Taking into account the price of the placement, the value of the block of shares will total US$609 million.

NLMK is an integrated steel producer which has a 97% ownership of Stoilensky GOK, Russia's third-largest iron ore producer, a 33% stake in KMA-Ruda and 12% in Lebedinsky GOK.

S African Transnet & Kumba sign long term iron ore movement deal

National transport company Transnet and diversified metals and mining company Kumba Resources jointly announced that they have signed a definitive agreement for the transport and handling of iron-ore from the Northern Cape through the Sishen-Saldanha export channel.

The new contract provides for a new pricing mechanism which will be a rand-based tariff and caters for Kumbas growth plans to increase iron-ore exports through Saldanha from 23.5 million tons a year to 35 million tons a year by 2009. It is effective from January 1 2005 and will run for 23 years, with tariff reviews every five years.

The contract will effectively remove the negative effect of the embedded derivative in Transnets accounting records as the pricing mechanism in the previous contract was linked to the US dollar iron-ore price. The contract will support South Africas participation in the growing world demand for iron-ore and contribute to the domestic economy with investments and employment associated with major mine expansions and new railway rolling stock and infrastructure.

Foundation Coal appoints two to the Board of Directors

Foundation Coal Holdings Inc announced that it has elected Mr P Michael Giftos and Mr Robert C Scharp to its board of directors effective December 7, 2005. The new appointees replace Mr Hans J Mende and Mr Stephen Ko, who resigned from the board in October 2005 after completion of a secondary offering by the initial equity owners but both will serve on the company's audit committee and Mr Giftos also will serve on the nominating committee.

Mr Michael Giftos currently serves as a member of the board of directors of Pacer International Inc and Mr Robert Scharp currently serves as Chairman of Shell Canada's Mining Advisory Council. He is also a member of the board of directors of Bucyrus International, Inc., a surface mine equipment manufacturer.

"The appointment of Robert Scharp and Michael Giftos brings nearly 50 years of coal mining and transportation experience to our board," said Mr James F. Roberts, Foundation's president and chief executive officer. "We are extremely fortunate to have the counsel of both men as we position Foundation Coal for the future."

Foundation Coal Holdings, Inc, through its affiliates, is a major U.S. coal producer with 13 coal mines and related facilities in several states including Pennsylvania, West Virginia, Illinois, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 2,900 people and produces approximately 67 million tons annually, largely for utilities generating electricity.

Acting Kryvorizhstal chairman assures SPF of meeting commitments

Acting Kryvorizhstal Chairman Mr Narendra Chaudhary is reported to have assured SPF Chairwoman Ms Valentyna Semeniuk, Kryvy Rih's Mayor and Kryvorizhstal workers that Mittal Steel will fulfill all the investment commitments after the plant's purchase.

As per a report from SPF, Ms Semeniuk visited Kryvorizhstal on Friday and during the visit it was confirmed that the SPF has a right to check the fulfilling of the investment commitments in half a year.

Semeniuk says eight parties are interested in Kryvy Rih tender

As per a release from Ukrainian State Property Fund SPF's press service citing SPF Chairwoman Ms Valentyna Semeniuk there are 8 potential bidders in a tender to privatize Kryvy Rih oxidized ore-mining and dressing mill. Mittal Steel, Ukraine's Inhulets and Poltava iron ore producers, Russian MMK and China's Sinosteel are also believed to be interested in the mining complex

Speaking about the privatization of the enterprise, Semeniuk said that the conditions of the tender would be tough. She said the SPF is currently working to announce a tender for an environmental audit at the mill.
She had previously reported that 57% of the mill's stocks would be put up for sale. She said that among the key conditions of the investment tender would be social requirements, in particular, the number of jobs, wages, etc.

Following the collapse of the Soviet Union, construction of the KRMDMOO mining complex, which began in 1985, passed to Ukraine. The budgeted construction cost for the mining complex was $2.4 billion, out of which $1.65 billion has been spent. The complex will use output from the Pivdenny and Novokryvorizhsky mines, as well as the Valyavkivskoye deposit, which has reserves of 800 mln tonnes of low-grade ore. The complex will initially be able to produce 6.6 million tons of pellets, but this will later increased to 10 million tons.

Whoever wins the future tender, will have to ship 17 million tonnes of pellets to Slovakia and 30 million tons to Romania in the decade following the Kryvy Rih complex's completion as original agreement

Daido Steel Surges on Report Output Capacity to Rise

Nagoya-based Daido Steel Co, Japan's largest specialty steelmaker, is reported to be increasing its capacity to make specialty steel for auto parts by 10% to as much as 8,000 tons a month. Plant and equipment spending will exceed depreciation costs this year for the first time in six years

Daido's production is at full capacity now'' and any expansion would come amid lean supplies, said Mr Takashi Murata, a steel industry analyst at Daiwa Institute of Research in Tokyo.

Daido Steel, which counts Nissan Motor Co. and Honda Motor Co. among its biggest customers, is benefiting as Japan's automakers increase market share overseas.

Coal miner unions rally at Peabody headquarters

Several hundred coal miners from around the country marched through downtown and held a rally outside the world's biggest coal company here, demanding that Peabody Energy Corp. let more of its workers unionize.

United Mine Workers of America President Mr Cecil Roberts said Peabody is driving unions out of its work force through intimidation and firings. Roberts said that 20 years ago the union represented about 80 percent of Peabody's workers.

Peabody spokesman Mr Vic Svec said the company doesn't want unions, but will give workers free choice in joining or rejecting them. The trend with Peabody and with the coal industry everywhere, is toward union-free operations," Mr Svec said. The company said less than 30% of its 7,900 workers are now unionized.

Alpha Natural Lowers 2005 Outlook

Appalachian coal producer Alpha Natural Resources Inc. on Friday lowered its financial outlook for the full year, saying it expects to have a shipment shortfall in December because of carrier delays and customers postponing their deliveries. The company also issued its outlook for 2006, saying it expects continued cost pressures, including higher prices for purchased coal and mining supplies.

Alpha forecast earnings for this year of $128 million to $138 million before interest, taxes, depreciation and amortization. Excluding stock-option charges, it sees EBITDA of $175 million to $185 million.Net income for 2005 is expected at $10 million to $20 million. The company also said limited rail capacity, delivery delays, and other factors will shave its fourth-quarter revenue by $10 million to $15 million.

Moravia Steel granted Bekaert Quality Award for wire rod

Moravia Steel has been given biennial Bekaert quality award. The award is based on several criteria including quality of the wire rod regarding internal, external characteristics, chemical composition and mechanical properties, wire rod research & development program, delivery conditions & general logistical support, process ability of the product in Bekaert plants worldwide and suppliers responsiveness in terms of quality improvement and claim handling.

During the official ceremony Mr Lieven Larmuseau, Group VP Purchasing, declared that The Trinecke Zelezarny steel plant is one of our most important strategic suppliers of wire rod for Bekaerts plants in Europe. In order to be able to supply our own customers with high quality products, we in turn impose very strict quality standards on the wire rod suppliers worldwide. For this reason, we work very closely with our suppliers to develop the various qualities of wire rod necessary for the production of our extensive portfolio of advanced wire products.