Welspun enhances global position through a JV with TMK

Welspun Gujarat Stahl Rohren Limited has signed a MOU with Russias pipe major TMK Groups Volzhsky Pipe Plant for setting up a 40:60 JV. The transaction will provide for the transfer of TMKs large diameter spiral welded pipe capacity of approximately 0.5 million tonnes and installation of a hi tech LSAW pipe welding line, bending facility and external and internal coating lines on the site of Volzhsky Pipe Plant in Volzhsky town of Volgograd region in Russia, delivered by Welspun.

The new capacities are intended for the production of longitudinal submerged arc welded pipes with 20(508mm) to 56(1420 mm) diameter with one seam, up to 40 millimeters wall thickness and up to 18 meters length. The start up of LSAW is scheduled for Q4 2007 at which the JVs total capacities are expected to be more than 1.2 million tons per annum of large diameter welded pipes.

Mr Konstantin Semerikov GD of TMK said TMK-Welspun association enables the company to expand its participation in pipeline projects not only in Russia and the CIS but beyond. The high quality of product offering coupled with unique production facilities that enable TMK to execute large scale orders will contribute to the development of oil and gas industry as well as strengthening of energy security of Russia.

TATA Steel reports 5%YoY Crude steel production increase in H1

TATA Steel has produced 2.64 million tonnes of hot metal during April to September 2006 registering a growth of 4% as compared to April to September 2005. Its crude steel production amounted to 2.455 million tonnes up by 5% YoY, saleable steel 2.368 million tonne up by 10% YoY.

TATA Steels first half sales recorded a 12% increase at 2.298 million tonnes, against sales in the corresponding period last year. In particular, sales to the auto sector was up 31% to 0.41 million tonnes. Sale of branded rebars, TATA TISCON has registered a 35% increase in volume.

The increase in production volumes has been achieved despite shutdown of E blast furnace for relining and up gradation from current 1,050 tonnes per day to 1,350 tonnes per day, since last week of June this year.

Mr Muthuraman sees 150 million tonnes Indian capacity by 2020

TATA Steel expects Indias steel production and consumption, driven by greater investment in manufacturing, roads, railways and ports, to increase 3 fold in next 14 years closing the gap in steel capacity of China.

Mr B Muthuraman speaking on the sidelines of an annual meeting of the International Iron and Steel Institute in Buenos Aires said "I expect India to be producing and consuming 150 million tonnes of steel a year by 2020, compared to what I believe will be about 47 million tonnes this year."

He added that "I know India has had problems in developing its infrastructure and this has held up economic growth but in the past two years I have been encouraged by signs that things are improving.

Indian steel majors announce price hikes

As per the earlier market reports, Indian steel makers have announced price hikes for October shipments.

TATA Steel has increased CR prices by Rs300 to Rs500 per tonne and galvanized prices by Rs3,500 per tonne citing rising input costs.

As per reports, Uttam Galva Steels has increased prices across all product categories comprising of galvanized steel and CR by Rs 1,000 for quarterly contracts and Rs 2,000 in the domestic spot market.

The announcements by other steel makers are expected to come in soon but

Mr PS Bhattacharya takes over as CMD of CIL

Mr Partha S Bhattacharya has taken over as the chairman cum managing director of Coal India Ltd. Mr Bhattacharya has succeeded Mr Sashi Kumar.

Most recently, Mr Bhattacharya was CMD of CILs subsidiary Bharat Coking Coal Ltd. He also served as the director finance of CILs Western Coalfields Ltd.

Mr Bhattacharya is a cost accountant and a post graduate in physics from Jadavpur University.

GMR moves ahead on thermal power plant in Orissa

GMTR groups GMR Energy has signed the power purchase agreement with GRIDCO of Government of Orissa, for selling of power from its proposed 1000MW coal based thermal power plant at Dhenkanal District of Orissa being set up under MoU signed on June 9th, 2006.

GMR intends to wheel the 75% of the sellable power to the power deficit states in the Southern India. The remaining 25% at 80% plant load fact shall be supplied to GRIDCO for a period of 25 years. The power purchase agreement is signed to this effect.

GMR has already identified the land and is in the advanced stage of development of project. The plant is scheduled to be commissioned by end of 2010 and second phase by middle of 2011.

GMR Group is one of the leading Infrastructure players in the country with interests in Power, Airports and Roads.

Jyoti Structures to lay transmission lines in Dubai

Jyoti Structures Ltd has announced that it has received an order from Dubai Electricity and Water Authority, valued at UAE Dirhams 143.82 million (Rs180.27 Crores). The Contract is to be executed within 18 months by the Company and its Consortium Partner Gulf Jyoti International LLC Dubai.

The Scope of the Contract involves supply, installation, testing and commissioning of 400KV DC overhead transmission lines on a turnkey basis.

L&T now says It's all about Imagineering

Indias engineering major L&T has appointed O&M to create a new campaign to re position the company launched an ad campaign with a new slogan tagline It's all about Imagineering replacing We make the things that make India proud.

Mr JP Nayak ED of L&T said, "Nobody was sure about the kind of business we do since we have been a low profile company all this time. But now we are transforming ourselves in a changing world. Through this campaign we want to reach out to the global marketplace."

Mr Nayak said "We are in the process of transforming the company to become an Indian MNC to take advantage of the vast opportunities through globalization. The world has become our business space and this demands that we perform against global benchmarks. We need to be seen as a company with achievements at the global level and thus we felt the need to position our brand suitably."

While West Asia is its biggest market, L&T has operations in South East Asia and now plans a foray into the Chinese market.

Gopalpur port workers worried about future

It is reported that about 2000 temporary laborers of erstwhile seasonal port of Gopalpur are worried whether they would get employment in the new set up and have threatened to launch an agitation if the government and the new management of the port fails to assure them of providing jobs.

Most of these temporary workers employed at the port were involved in fishing for the rest of the period when the seasonal port of Gopalpur remained non operational from April to October. There is a jetty used by the fishermen near Gopalpur port.

The Orissa government has already signed an agreement with a consortium comprising of Orissa Stevedores Ltd, Sara International Limited and HK based Noble Group Ltd to develop Gopalpur Port into an all weather port.

MEPS sees decline in North American prices

MEPS have predicted that the North American average flat products price will remain reasonably flat over the next few months and that at the turn of the year prices are likely to commence a steady decline as inventory drawdown takes hold and negative pressure builds up on domestic selling values from cheaply sourced material from the Far East.

MEPS estimate a decrease of around $60 per tonne in the average figure from current levels by the end of the forecast period.

MEPS said that activity over the summer was slow in the US and prices appear to have plateaued and the market is likely to weather the current quiet period because there are several planned outtages over the next few months to combat any serious threat from imports. The Canadian market may steady a little after the major price turnaround in recent months.

MEPS now believe that the peak value in this cycle occurred in July for the strip mill segment. Plate prices are, however, likely to continue to expand up to the end of the year, because delivery lead times are extended and the markets remain solid.

MEPS said that in the long products category, inventories are now a little higher in the US for most products. Canadian demand is fair. The decrease in scrap costs has prompted us to downgrade our forecast this month compared to July by a small amount. MESP no longer anticipate a small price upturn in the coming months. A steady decline to mid 2007 is the most likely prospect unless we see resurgence in the price of scrap. A modest recovery is still anticipated in the second half of next year as the weather improves and the construction segment picks up.

Villacero looking for strategic alliance with steel makers

Reuter has reported that Mexican steel maker Grupo Villacero is in talks with several companies about a possible alliance or the sale of a minority stake in its Sicartsa plant in the coastal city of Lazaro Cardenas in Western Mexico.

Mr Julio Villareal president of Grupo Villacero told Reuter that the company was talking to Arcelor Mittal, Nucor, Ternium and Gerdau about the future of its plant. He said "In this quarter, we should define the strategic alliance. We are contemplating a strategic alliance to ally Sicartsa with an international group either via a share swap or the sale of between 20% and 49%.

Villacero was hit by a strike earlier this year which crippled output and caused more than $400 million of losses. Villacero's interest to sell Sicartsa follows a 141-day strike there that paralyzed the plant's production.

On the other hand, Mr Daniel Novegil CEO of Ternium told Dow Jones Newswires that it has no current plans for Villacero's plant in Mexico and Mr Joseph Rutkowski executive VP of told The Wall Street Journal that they would not be interested in a plant with big union problems.

Xstrata in $5.5 billion rights issue to fund Falconbridge buy

Xstrata has announced a rights issue of 2.9 billion ($5.5 billion) to fund its acquisition of Falconbridge less than anticipated $7 billion. Xstrata said that it would create 235.8 million new shares at 1,265p in a one-for-three rights issue. The price represents a 42.5% discount to Xstrata's closing share price of 2,198p on Monday.

The rights issue of 2.91billion is second only to BT's 5.9 billion offering in 2001.

Mr Mick Davis CEO in a statement said that this was because Xstrata had become even more optimistic about the takeover since the deal was completed, allowing it to fund a greater proportion of the acquisition through its own cash flow. He said "The buoyant cash flow generation of the enlarged Xstrata Group and our confidence in the prospects for the business following the first six weeks of ownership of the Falconbridge assets has exceeded our expectations.

Xstrata acquired Falconbridge for 9 billion, after battling it out with Inco, Phelps Dodge and Teck Cominco for the best part of a year.

Mittal Steel has option of court on CVM ruling

Brazilian business daily Valor Economico reported that Mr LN Mittal said that Arcelor Mittal has the option to fight a mandatory buyout offer for Arcelor Brasil minority shareholders in court. According to the report Mr Mittal said "I have the option to fight in the courts."

According to the report Mr Mittal said that the company will make a decision to fight or adhere to the order in the next two weeks.

The Brazilian Securities and Exchange Commission recently upheld a previous ruling that required Arcelor Mittal to buy out minority shareholders. The CVM ruled that Mittal's merger with Arcelor resulted in a change of control of Arcelor Brasil, triggering the buyout offer.

Arcelor Mittal holds a 66% stake in Arcelor Brasil, while minority shareholders hold the remaining 34%. Arcelor Mittal has until October 25th to register the offer with the CVM. Such an offer could cost Arcelor Mittal $5 billion or more.

ThyssenKrupp confident of getting Dofasco by 2006 end

DJ has reported that ThyssenKrupp AG is confident that it can close the acquisition of Dofasco Inc from world leader Arcelor Mittal by the end of the year.

Dr Ekkehard Schulz chairman of ThyssenKrupp board on the sidelines of the International Iron and Steel Institute's annual meeting in Buenos Aires said "We are optimistic that we can close the deal by the end of the year.

Dr Schulz added that Arcelor Mittal's board might meet at the end of October to approve the Euro 3.8 billion disposal of Dofasco.

BRIC countries to become auto hub PWC

According to PricewaterhouseCoopers, India is poised to become the new global manufacturing hub for small cars with BRIC countries accounting for more than 40% of the forecast growth in the global light vehicle assembly industry.

PWC in its annual "Global Automotive Financial Review" has said the Indian automotive manufacturing sector is poised to grow with all major global vehicle manufacturers either having established or are in the process of establishing their presence in India. It said "Almost every major global vehicle manufacturer is establishing assembly facilities there and companies are increasingly establishing design and research centers in India, in addition to its more established role as a low cost global sourcing destination.

PWC also said that Brazil, Russia, India, China will represent 52% of the industry's forecast global capacity expansion. It said "These factors are reflected in the fact that nearly all major global automakers are pursuing a BRIC strategy in some form as they attempt to gain competitive advantage by tapping the potential of these emerging markets.

Arcelor Mittals Laiwu buy seems uncertain

As per recent reports, Arcelor Mittal may not be able to buy 38% stake in Chinese Laiwu Steel because of opposition from Chinese government. Mr Zhang Shengsheng vice GM of Laiwu Steel on the sidelines of the annual meeting of the International Iron and Steel Institute in Buenos Aires said that Arcelor Mittal's purchase now lacks support in some government departments.

China is increasing scrutiny of overseas investment, announcing a plan in August to ban the sale of assets that threaten China's economic safety. Non Chinese companies are already blocked from controlling majority stakes in domestic steelmakers. Industry expert say that Chinese government has always been pretty protective about its industries and taking major stake seems to be out of question.

Arcelor had proposed to buy a stake worth 2.1 billion yuan ($266 million) in Shandong province based Laiwu in February 2006 and is awaiting approval from Chinese government.

Arcelor Mittal already has a stake in a Chinese steelmaker, owning 29.5% of Hunan Valin Steel Tube & Wire Co, which it bought last year.

Nippon Steel & POSCO to strengthen ties

Reuters has reported that Nippon Steel Corp and POSCO met in Buenos Aires this week to continue discussions about increasing ties.

Mr Akio Mimura president of Nippon Steel on the sidelines of the annual International Iron and Steel Institute meeting in Buenos Aires told Reuters that there was no decision yet on whether to strengthen capital ties such as cross share shareholdings between the two companies to reduce the chances of a potential foreign hostile takeover. He said "That is possible, but not yet decided.

Mr Mimura said that "They are now investigating the possibility to do jointly many, many projects, which will give both of us better value."

Nippon & POSCO have earlier this year talked of jointly developing mines and supplying each other with semi finished products.

Mittal Steel Temirtaus production down by 30%

Dow Jones Newswires, citing a company executive, has reported that after a weeklong strike at Mittal Steel Temirtaus coal mines in Karaganda has led to a 30% decline in daily steel output at Mittal Steel Temirtau.

Mr Victor Sherba director of technical innovation and customer relations told DJN "The plant is totally dependent on coal supplied by our mines but the decrease had not affected customers because it was offset by production increases in other countries where Mittal Steel operates, such as Poland and Romania.

RBCTs coal exports in September crosses 7 million tonnes

The world's 2nd largest coal export port Richards Bay Coal Terminal has loaded 7.17 million tonnes of coal during September 2006 up by 23% over 5.83 million tons in September 2005. Shipments jumped from 4.39 million tons in August. The monthly volume is the highest since the 7.24 million tons shipped in December 2005.

RBCT has the capacity to ship 72 million tons a year. Richards Bay last year shipped a record 69.2 million tons of coal. At the shipment rate so far this year, the port may export about 62.9 million tons in 2006 according to Bloomberg calculations.

RBCT does not disclose official monthly figures, which it says are confidential.

Sumitomo Metals to increase Wakayama plants capacity

Sumitomo Metal Industries plans to increase its crude steel capacity at Wakayama works to 4.7 million tonnes per year by June 2009 at an investment of 160 billion yen. SMIs plans include a new No1 blast furnace, new coke oven and expansion of sinter plant.

It is also considering relining of No 5 blast furnace after the firm shifts from No 4 furnace to new No 1 furnace depending on market condition. If it would build No 5 furnace, Wakayama's raw steel output could reach more than 5 million tonnes per yea

Chinese iron ore imports from Brazil and SA surges in August

According to data from the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters, Chinas iron ore imports reached 32.80 million tonnes in August 2006 up by 42.1% YoY as compared to the August 2005.

Brazil and South Africa contributed most to this surge in iron ore imports, by accounting 7.74 million tonnes up by 97.6% YoY and 1.53 million tonnes up by 92.1% YoY respectively.

As per the data, China imported 219 million tonnes of iron ore during January to August 2006 up by 24.5%YoY.

Mittal Steel Temritau GD replaced

It is reported that Arcelor Mittal has replaced Mr NC Chaudhary GD of Mittal Steel Temirtau in wake of the week long strike in its coalmines in Karaganda with Mr Narendra Choudhary Arcelor Mittals CEO of Asia & CIS.

As per reports Mr Narendra Choudhary was introduced to labor activists and he pledged to start talks with workers. Mr Narendra Chaudhary during a meeting with trade unions said that he has taken over the charge upon the orders of Mr LN Mittal.

Steel demand in Gulf to increase by 31% in 2008

The Gulf Organization for Industrial Consulting has reported that Gulf Arab countries' demand for iron and steel will jump by 31% by 2008 on stronger demand for construction materials in the region. GOIC in a recent report said that the GCC's domestic demand for iron and steel products will climb to 19.7 million tonnes in 2008 from 15 million in 2005.

GOIC report said "Looking at the massive construction projects we are seeing in the region, it is quite obvious that we are seeing a boom in the iron and steel industry in the Gulf. Domestic steel prices in the Gulf and particularly the United Arab Emirates have been soaring, encouraging factories to expand their operations.

GCC steel producers are banking on demand from the construction industry in the world's biggest oil exporting region, where more than $1 trillion of infrastructure projects are in the pipeline. With demand for construction materials surging across the Gulf and Asia, some developers estimate that the costs of steel and other building materials have risen by 20 per cent to 25 per cent in the past year.

Norilsk Nickel to maintain 2006 nickel sale at 2005 levels

Russian mining giant Norilsk Nickel plans to sell 243,000 tonnes to 248,000 tonnes of nickel in 2006 as per a report in Inyrefax citing Mr Anton Berlin head of the company's analysis and development department.

Norilsk had sold 244,000 tonnes of nickel in 2005, not including metal bought from third parties.

Ukraines pipe production up by 11.7% YoY in 9 months

Ukraine has increased steel pipe production to 1.932 million tonnes during January to September 2006 up by 11.7% YoY. Dnipropetrovsk based Ukrainian pipe makers association Ukrtruboprom said that most of the pipe mills increased production except the Khartsyzsk and Niko Tube plants.

The producer wise pipe production during January to September 2006 is as under

Data is preliminary
In '000 tonnes
Source is Ukrainian Industrial Policy Ministry

The production during 2004, 2005 and estimates for 2006 are as under

Arcelor Mittals management profile 21 Mr Bill Scotting

Mr Bill Scotting has been appointed in Arcelor Mittals management committee board last month as Head of Continuous Improvement.

Mr Bill Scotting joined the Mittal Steel Group in September 2002 to lead the Group's Continuous Improvement activities. Formerly an Associate Principal at McKinsey & Company, Mr Scotting has 20 years experience in the steel industry in technical, operations management and consulting roles. He has also held positions at BHP Steel, Pioneer Concrete (UK), Mascott Partnership and CRU International.

Mr Bill Scotting holds a Bachelor of Science (Metallurgy) degree from the University of Newcastle in Australia, where he was awarded the Australasian Institute of Metallurgy Prize for Metallurgy, and an MBA (with distinction) from Warwick Business School in the UK.

Navrom transports 4.6 million cargo in H1 of 2006

ACT media has reported that Romanian Danube river navigation company Navrom of transported 4.6 million tonnes of cargo in H1 of 2006, with Mittal Steel Galati being the main client.

Galati based Navrom had transported cragos mainly iron ore and coal exceeding 10.5 million tonnes in 2005 and had posted turnover of Euro 19 million. Navrom has a market share of river transport exceeding 53% followed by NFR Drobeta SA with 15% and balance of Giurgiu Nav SA and Touax Rom SA.

Novamerican announces new temper mill at Stoney Creek

Novamerican Steel Inc last week announced plans for the installation of its second temper mill to be located in a new facility on its recently acquired 22 acre property adjacent to its existing facility at Stoney Creek in Ontario.

The new line will be able to temper pass coil up to 5/8" thick and 72" wide. The facility is expected to be completed in late 2007. The investment required has been estimated at C$25 million.

Montreal based Novamerican Steel Inc, with eleven operating locations in Canada and eleven operating locations in the United States, processes and distributes carbon steel, stainless steel and aluminum products, including carbon steel tubing for structural and automotive markets.

Massey sells Boone County coal reserves for $31 million

Massey Energy Co announced an agreement to sell coal reserves at Boone County in West Virginia for $31 million to an unnamed private company as a part of an ongoing effort to divest non strategic reserves to benefit shareholders.

The reserves, known as Falcon, are reported on Massey's books as being 5.5 million tons, but Massey said they could yield up to 17 million tons depending on the mining technique.

Bogue's JV acquires Colombia Coal project

Bogue International Inc announced that its JV partner JAB Mexico Inc has signed an agreement with Mineria y Energia del Noreste SA of Monterrey in Mexico. Mr Jefferson Bootes CEO of JAB Mexico Inc announced its agreement to acquire 100 % interest in the Colombia Coal Project for $4.7 million. The Company plans to bring its first project into production by year end.

Colombia Project has a proven coal reserve of 300 million tonnes and can be in production coal for the next 30 to 50 years. The Colombia Coal Project is located near Colombia, Neuvo Leon and is approximately 30 kilometers from Laredo in Texas. The coal seam originates from the Farco Coal Mine located across the Rio Grande, a mine which had produced coal for over 20 years for the Farco Mining Inc.

Mr Charles Irizarry president of Bogue International Inc said With thermal coal prices at $52 USD per metric tonne, the timely acquisition of the Colombia Mine will increase the valuation of JAB Mexico Inc exponentially.

Bogue International Inc, formerly Bogue Electric Manufacturing Co, was incorporated in New Jersey in 1892 and has been a public company since 1945. The Company is focused on acquiring operating companies with world class potential that will increase shareholder value. JAB Mexico Inc, a Florida based mineral exploration and development company, has coal mining projects located in Northern Mexico.