Indian steelmakers hike hot band prices

It is reported that, following an increase in global steel prices, many of the domestic steel makers producing flat products are considering increasing the prices of flat products by INR 800 to INR 1200 per tonne for deliveries in March 2007.

As per reports, TATA Steel and Steel Authority of India Ltd have reportedly increased the price of hot rolled coil by INR 1000 per tonne.

Others steel companies like Ispat Industries Ltd, Essar Steel Ltd and JSW Steel Ltd are also likely to follow suit and make announcements.

More reactions to imposition of iron ore export tax in India

More reactions to the export duty of INR 300 (USD 7) per ton imposed on iron ore and concentrate by Indian government have started to come from Indian miners and their clients in China.

As per reports, the export tax would increase Indian iron ore prices to about USD 95 a tonne CIF China, well beyond Brazilian prices of about USD 90 a tonne unless Indian suppliers agree to share the additional costs. Unconfirmed reports from industry sources point that more than 5 million tonne of iron ore export is in the pipe line and large number of vessels have been cancelled yesterday.

A delegation of iron ore mining and trading community is also reported to have reached New Delhi to find at least some remedies.

Mr S Shridhar ED of Goa Mineral Ore Exporters' Association said "We are already facing the effect of the Union Budget. Five China bound vessels stand cancelled for the first day on Thursday. If the Finance Minister does not rollback the duty, the industry will have to close down. Goa is facing stiff competition from Australia and Brazil who are entering into the market with low grade iron ore alike Goa. Within next two years they will establish themselves in the market, if we are kept busy with these duty hassles.

Mr Ding a trader with one of largest iron ore traders in China, Hong Kong Pioneer Metals Co Ltd said that "It is shocking news to domestic steel mills. We were informed by our Indian suppliers yesterday night that the policy was to take immediate effect, Indian iron ore suddenly had no price advantage over Brazilian and Australian ores." Mr Ding said that Pioneer Metals has been forced to temporarily halt all iron ore sales, domestic steel mills being unwilling to accept such a sudden price hike.

Mr Gu Yaoqing an analyst with Shanghai Haitong Securities said "Large scale steel mills will be little affected by the policy, their supplies are already fixed long term with Australian and Brazilian mines. However, small scale steelmakers have to rely on Indian iron ore, since they have not secured long term contracts from Australian or Brazilian suppliers."

India was the 3rd largest exporter of iron ore and concentrate to China last year accounting for 23 % of total imports behind Australia and Brazil. According to statistics released by the General Administration of Customs, China's Indian iron ore imports surged by 9 % to 74.75 million tons in 2006 at an increase of USD 4.83 billion.

Orissa clears 4000MW power at Sundergarh

The proposed 4000 MW thermal power plant by National Thermal Power Corporation in the coal rich Sundargarh district has given green signal recently by the Orissa government after a high level official meeting chaired by CM Mr Naveen Patnaik. Power purchase agreement would be signed between the Grid Corporation of Orissa Ltd and Power Finance Corporation and NTPC soon.

Mr Suryanarayan Patra state Energy Minister while briefing newsmen after the meeting said the government had given the go ahead after the NTPC agreed to share one third of the generated power to the state at nominal price.

Mr Patra said that the INR 18,000 crore projects would commence within a month and is scheduled to be completed in one single phase by 2012.

Foundation stone laid for JSWs lignite based power plant in Rajasthan

It is reported that Ms Vasundhara Raje chief minister of Rajasthan has laid the foundation stone for JSW Groups proposed INR 50 billion lignite based thermal power project in Barmer district of Rajasthan recently.

JSW Energy Ltds owned subsidiary Raj West Power Ltd would set up a 1,000 MW lignite based pithead power project in Barmer district to make Raj West Power the first independent power producer to set up a project in the state's power sector.

The lignite mines at Jalipa and Kapurdi located near the project site will feed the entire fuel requirement of the project of about 7 million tones per annum.

Mr Sajjan Jindal chairman of Raj West Power Ltd while speaking on the occasion said that India is currently on a growth path and power is a vital component not only for business but also for personal use. Our project represents the JSW Group's pioneering spirit to help create a vibrant new India and I am certain that Raj West Power will play an integral role in the rapid economic development of Rajasthan.

Vizag port crosses 50 million tonne mark

Visakhapatnam port, for the 3rd successive year, has crossed the 50 million tonnes mark in freight handling during April 2006 till date and it is projected to handle 57 million tonnes to 58 million tonnes of cargo by the end of the financial year 2006-07 as against a target of 61 million tonnes set by the union ministry of shipping.

The shortfall in terms of the target is explained by the shortfall in iron ore due to policy changes.

Vizag port, which mainly depends on bulk cargo, has thus maintained number one position in India for last 7 years in terms of throughput.

Ingersoll Rand to sell road development business to Volvo Construction

Leading construction and mining machinery maker Ingersoll Rand (India) announced that its US parent has agreed to sell the road development business worldwide to Volvo Construction Equipment AB.

Ingersoll Rand informed that the sale of the road development business in India would take place after necessary legal requirements including consent from the board of directors as well as the shareholders are obtained as per Indian laws.

Tehri Hydro and Nuclear Power join hands

Tehri Hydro Development Corporation announced that it has signed a MoU with Nuclear Power Corporation of India Ltd to jointly develop pumped storage schemes and other hydel projects.

THDC would provide technical expertise and NPCIL would provide financial assistance for any projects taken up jointly by them under the agreement. THDC and NPCIL are already looking at a INR 3,000 crore pumped storage schemes in the power deficit State of Maharashtra.

EIL to undertake feasibility for Barmer-Mundra pipeline

Oil & Natural Gas Corporation has engaged Engineers India Limited to undertake a technical feasibility study for the Barmer Mundra Pipeline project. The other partner in the project, Cairn India has also appointed an international consultant to undertake a feasibility study.

The feasibility study will also bring out the issue of cost recovery and the size of pipeline that is required and crude will begin flowing from 2009.

ONGC is a 30 % partner with Cairn India in the fields. The crude from Rajasthan is heavy with high wax content and requires specialized pipelines to transport it from Barmer.

Haridapur Paradip rail line project likely to get delayed

Kalinga Times has reported that the 82 kilometer long railway line project between Haridaspur and Paradip in Orissa has been put on hold due to inadequate budgetary provision as Mr Lalu Prasad Yadav Union Railway Minister has allocated only INR 20 crore for this ambitious project as against INR 30 crore demanded by the state government.

The report mentions that the poor allocation will affect the INR 345 crore projects which started 8 years ago and has been moving at a snail's pace in absence of the sufficient funds for the last 3 consecutive years.

ABG Shipyard delivers 6th vessel to Lamnalco

ABG Shipyard Ltd has announced that it has delivered a new anchor handling tug supply vessel LAMNALCO MERLIN to UAE based Lamnalco Group. The Company has so far delivered 6 vessels including the present one to Lamnalco Group.

The 53 meter long 90 Tonne Bollard Pull Azimuth Drive Propulsion AHTS is able to carry out Anchor handling, Towing Rescue, Offshore Supply, Transport Pipes, fresh water, diesel oil, Stores, Materials and equipment, move men and materials between platforms and shore, external fire fighting and other related duties.

The vessel is to supply, support the Floating Production Offloading Storage vessels, offshore oil and gas field on a 24 hour per day basis.

SDI & Kobe to build Mesabi Nugget plant

It is reported that Steel Dynamics Inc has reversed its earlier decision pulling out of the venture as its board approved the company's participation in a USD 235 million iron making project in Minnesota.

SDI said the proposed Mesabi Nugget plant in the Hoyt Lakes region hinges on getting financing including economic development assistance from the state government and that the deal is also contingent on a long term supply agreement for iron concentrate to make iron nuggets, securing certain land options and other unresolved issues.

Under the new arrangement, Steel Dynamics will have a majority stake and build and operate the facility. Japan based Kobe will provide technical and engineering services, technology license and equipment to Steel Dynamics in building and operate the facility.

Steel Dynamics anticipates initial annual production capacity of 500,000 tons of iron nuggets at the plant. Steel Dynamics indicated that it expects to consume most of the initial output from the venture. SDI said that melt tests using nuggets produced by a pilot plant have demonstrated that iron nuggets melt more efficiently in electric-arc furnaces than traditional pig iron.

Steel Dynamics called off a previous initiative for the proposed plant involving several other companies in November 2006 due to complexities in the multiparty arrangement.

Russian Koks to acquire stake in Slovenska Industrija Jekla

It is reported that Russian industrial group Koks OAO has agreed to acquire a 55.35% majority stake in government owned Slovenska Industrija Jekla dd for SIT 25.2 billion (USD 138.8 million).

Koks also promised to invest SIT 59.7 billion (USD 318.9 million) in Slovenska Industrija Jekla dd by the end of 2009.

Mr Tibor Simonka director of SIJ told the press "We are very happy with the selection of Koks as well as the negotiated guarantees and other provisions of the contract.

This acquisition will increase Koks OAO's stake in the steel manufacturing market in Slovenia.

Smorgon pushing revised OneSteel merger plan

Smorgon Steel Group Ltd is pressing ahead with its merger plan with OneSteel Ltd after posting an increase of 24% YoY in first half earnings.

Mr Ray Horsburgh CEO of Smorgon said that Smorgon was pressing ahead with its revised merger plan with OneSteel which will see the pair create a structural tube and pipe joint venture producing more than 500,000 tonnes a year.

He said What were doing is were getting on with the job. We are currently waiting on final ACCC approval which we are expecting late March and were getting a private tax ruling.

He said Once we get those two regulatory approvals the tax ruling and the result of the ACCC investigation will call a shareholder meeting which requires a 50 % vote.

The new plan requires only the approval of half of Smorgons shareholders because it is an asset sale, instead of the 75% of shareholders that would have been required under a merger.

Xinyu Steel starts construction of new steel facility in Jiangx

Interfax reported that Xinyu Iron and Steel Co Ltd announced that it started construction of a new steel facility upgrade in Jiangx Province after approval from the provincial Development and Reform Commission.

A company official told Interfax that the total investment in the project is RMB 12.6 billion (USD 1.63 billion) and that it will allow Xinyu Steel to produce 3 million tons of steel coils per year. Xinyu Steel will also abandon high energy consuming and low production capacity equipment, and implement energy conservation and environmental protection projects at the steel facility.

Construction completion date has been set for the end of 2009 and will be split into two phases. The first phase will be completed by the end of next year and will increase annual output of hot rolled steel coils to between 1.5 million and 1.75 million tons, and cold rolled steel coils to 1.2 million tons.

Xinyu Steels current production is limited to medium steel plates, wires, strips and silicon sheets. Xinyu Steel produced 446,000 tons of steel last month up by 12.3% YoY.

SA to ban chromite ore exports

Engineering News reported that South Africa's department of minerals and energy is planning to gazette a new legislation preventing South African chrome miners from exporting un beneficiated chrome ore. The proposed law would stipulate ferrochrome as the least-beneficiated level at which the material could be exported

Ms Phumzile Mlambo Ngcuka deputy president of South Africa while speaking at the launch of the Xstrata Merafe Lion ferrochrome smelter said that that government had taken into account an appeal from Xstrata that the export of un beneficiated chromite be curbed, referring specifically to Kermas which bought Samancor Chrome from BHP Billiton and Anglo American last year.

Kermas had admitted to exporting the some raw material to China but later halted the practice and also dismissed suggestions that it was undermining the South African industrys prospects by exporting chrome ore to China.

The Xstrata-Merafe JV had taken a decision not to export raw chromite, as the move would be in direct conflict with South Africa's beneficiation drive and would prevent growth in the country's ferrochrome industry.

Evraz to make a offer to buy out NTMK minority stakes

Evraz Group has announces that its wholly owned subsidiary Mastercroft Limited submitted recently to the Federal Service on Financial Markets a voluntary tender offer statement to purchase all outstanding shares of Evrazs Russian subsidiary Nizhny Tagil Iron and Steel Plant.

Mastercroft Limited which at the moment holds 94.997% of NTMK share capital is going to make an offer to NTMKs minority shareholders to tender the remaining 5.003187% of NTMKs outstanding shares.

NTMK is one of the largest metallurgical plants in Russia located in the city of Nizhny Tagil in the Urals region. It is a full cycle steel production plant comprising an ore mining complex, coke & chemical plant, blast furnaces, steel making facilities and rolling mills. NTMK is the one of biggest processor of vanadium enriched titan ferrous ores with succeeding vanadium recovery in blast oxygen furnaces and in oxygen converters using special technologies.

Arcelor Mittal to reconsider Flemalle BF closure plan Report

PTI reported that Arcelor Mittal is reconsidering its plans to shut down blast furnace at Flemalle near Liege in Belgium.

Mr LN Mittal CEO & president of Arcelor Mittal recently visited Flemalle to discuss the planned closure of a blast furnace there with unions and local authorities.

The report cites Mr Mittal as saying that he was reconsidering whether to go ahead with the closure in 2007. AS per report, he said that In view of the argument of the unions, I promised I would think about it once again."

However, he added that he would look at market conditions, but stressed he did not want to give false hope to workers.

Highlights of tentative agreement between AK Steel and IAM

As per International Association of Machinists, some of the highlights of the tentative agreement between AK Steel Holding Corp and the International Association of Machinists in the Middletown Works are as under

1. WAGES
Most workers would get a raise with hourly rates ranging from USD 15.66 to USD 21.50 in five pay grades; USD 16.16 to USD 22 after 18 months; USD 16.66 to USD 22.50 after 36 months.

2. HOURS
Guaranteed 40 hours a week regardless of work contracted out.

3. PENSION
AK Steel will contribute up to USD 1.80 per hour to IAM's multi employer pension fund. The company used to administer its own pension plan.

4. SENIORITY
Preserves seniority for job bidding, promotions and vacations etc

5. CLAIMS
Company to pay USD 7.7 million in profit sharing and to resolve all claims and grievances

Kumba awaiting reply on Faleme iron ore deposits in Senegal

It is reported that South African iron ore producer Kumba Iron Ore is still trying to establish why the Senegalese government had reportedly given steel maker Arcelor Mittal permission to mine iron-ore deposits to which KIO believed it held rights.

Mr Vincent Uren KIO COO said that the company had not heard anything from the Senegalese government and there is no update He confirmed however that KIO was busy reviewing all legal options to preserve its contractual rights over the disputed 12 million tons a year Faleme project.

KIO and the Senegalese government first entered into a legal dispute over the title of the Faleme deposit a year ago, when t Senegalese government and its project development agency Miferso entered into a prospecting deal with Mittal Steel while KIO was claiming to have the right to explore it.

STX to build major shipyard in Vietnam

South Korean Prime Minister has approved a project of the STX Shipbuilding Co Ltd of South Korea to build a shipyard in the Van Phong economic zone in the central province of Khanh Hoa.

Mr Nguyen Trong Hoa head of the zones management board said that the shipyard will be the largest in the region with an initial investment capital of USD 500 million.

As per report the shipyard will be built on 300ha in Van Phong Port. In the first phase of the project, the port will be capable of building 15 ships with a total capacity of about 900,000 DWT. The shipyard will also be capable of building 25 ships with a combined capacity of 2.5 million DWT when the second phase of the project is finished.

Russia boosts pipe output 35% in Jan

The Russian Federal State Statistics Service has reported that Russia boosted steel pipe output by 34.5% YOY in January to 500,400 tonnes including 207,900 tonnes of seamless pipe up by 22.2% and 284,000 tonnes of electro welded pipes up by 42.7%.

While production has soared by 49.3% at the United Metallurgical Companys Vyksa Metals Plant, OMK's Almetyevsk mill raised its output by 9.8%. And the production of ChTPZ Group's Chelyabinsk tube rolling plant has rose by 64.3% and the group's Pervouralsk New Pipe Plant has also increase by 31%.

Summit Resources rejects Paladin hostile bid

Summit Resources has rejected a USD 1 billion hostile takeover offer by uranium miner Paladin Resources describing it as opportunistic and inadequate.

Mr Alan Eggers Summit Resources MD says the all scrip offer of one Paladin share for every 2.04 Summit shares did not reflect the value of its uranium base metal and iron ore projects. He said the fact that the offer is not subject to any minimum level of acceptance is a clear sign of how desperate they are to use their currently highly priced shares to acquire as many Summit shares as possible before Summit appreciates further in value.

Mr Eggers said the offer from Paladin was not unexpected and suggested that Paladin had launched its offer without prior discussion because it knew that its terms would be regarded as inadequate. He also said Paladin's offer was timed to escape a potential loss for Paladin in Summit's legal case against Paladin and Resolute over the Isa Uranium Joint Venture.

Mr Egger said if Paladin wants to take control of Summit it will have to pay a price which adequately reflects the underlying value of Summit.

Labor contract ratified at Xstrata Nickels Sudbury operations

Xstrata Nickel announced that members of USW Local 2020s Unit 6855, representing office, clerical and technical workers at the company's Sudbury operations in Ontario, have ratified a new three year collective agreement. In a ratification vote, 89% voted in favor of accepting the new collective agreement. The new agreement expires on February 28th 2010.

The new agreement includes a monetary offer comprising a wage increase of 3% in the first year, 3% in the second year and a cost of living allowance in the third year. In addition, the agreement includes a continuity allowance of CAD 8,000 per employee; an agreement on shift schedules for running the company's Pilot Plant campaigns at Xstrata Process Support; a commitment to improve the effectiveness of the joint company and union contracting out committee and a top up of 90% of base wages for employees on maternity leave.

Mr Mike Romaniuk VP Xstrata Nickel's Sudbury said that "The agreement we achieved is acceptable to both parties and allows us to now focus our combined energies on effectively operating and building our Sudbury operations."

First list of Chinese coke exporters

Chinas first batch of coke export quota for the licensed exporters in 2007 is as under

Volume in 10000 tonnes
(Sourced from Mysteel.net)

Arcelor Mittal sees strong raw material scenario

PTI reported that Arcelor Mittal sees no weakness in raw material prices as a result of the stock market slide in China.

Mr LN Mittal CEO & president of Arcelor Mittal on the sidelines of a news conference in Liege said that "Some of the commodity prices may fall, but scrap or iron ore prices have already been announced. I don't see the weakness there."

Colombia reduces import duties on SS imports

YIEH reported that Colombia has cut import duties on some stainless products.

As per report, import duties are cut to zero for electrical appliance related stainless steel products, including flat products from 0.5mm to 1mm in thickness, stainless flat products thinner than 0.5mm and wider than 600mm and welding wire.

In addition, the duty on stainless wire has also been cut to 5%.

Coal mining shaft collapse kills one in Kemorov

Reuter has reported that one Russian coal miner was killed and nine were injured on Thursday after part of a shaft collapsed in a coal mining region in Siberia.

The administration of Siberia's Kemerov region said in a statement that 94 miners were working underground at the mine in the town of Kiselyovsk at the time of the accident.

Chronology for 12 month long lockout at AK Steel Corp

The wage contract negotiations between AK Steel Corp and representatives of its earlier union representing workers Armco Employees Independent Federation began on November 2005 and after a lock out period of 12 months, tentative agreement has been reached on February 20th 2007 with the new union International Association of Machinists few days back.

February 19 - AEIF authorizes union leaders to strike if necessary. In a two day vote, 2,368 AEIF members voted for strike authorization and 56 opposed authorization.

March 1 - More than 2,600 AEIF members are locked out of Middletown Works. Dozens are stationed to begin picketing.

March 4 - Negotiators from both sides of the labor dispute come together for the first time since the beginning of the lockout.

March 30 - The Ohio Department of Job and Family Services rule the now 30 day labor dispute is a lockout.

July 25-28 - An election is held for AEIF members to decide which union will represent them going forward. Four options are on the ballot: The AEIF, the International Association of Machinists, the United Steelworkers of America or no union at all. AEIF members vote for representation by the Machinists.

September 1 - Unemployment benefits begin expiring.

September 22 - AK Steel provides to the union, during a quick bargaining session its final contract offer. The union now has until midnight on the 25th to make a decision.

September 25 - Workers reject the company's final proposal 998 to 768.

October 10 - AK provides the union with a clarified final proposal, which includes revisions on work guarantees, security and the union's pension plan.

October 19 - In the wake of another ratification failure, AK Steel provides the union with a contract proposal that offers lower wages, higher health care cost sharing and random drug and alcohol tests.

February 28 - Tentative contract agreement between AK Steel and Machinists is reached. Proposal is subject to ratification by members.

Russian FAS not keen on Gazprom's purchase of SUEK

As per reports in Russian media Russian Federal Antimonopoly Service is disapproving of the possibility of Gazprom acquiring S Siberian Coal Energy Company UEK.

Mr Igor Artemyev the head of the FAS during a press conference disapproved this move adding that FAS has yet not received Gazprom's documents on this subject and could not officially consider legality of the deal of before it received respective documents from the two companies.

Mr Artemyev said We so far do not see advantages of establishing such joint venture for development of competition in the energy sector. It is unequivocally bad for the market.

Mr Artemyev pointed out that if this deal were struck, Gazprom would not just become a monopoly in the energy sphere but would also gain full control of energy reform excluding only the hydro OGKs. Hence, this would mean repeating the reform all over again.

He also assured that the FAS would do everything possible to explain the potential consequences of the deal to the government.

The Siberian Coal Energy Company is Russias largest coal association. It accounts for 30% of thermal coal supplies to the internal market and 20% of thermal coal exports.

Vietnams industrial output up by 17.5% YoY in 2 months

According to General Statistics Office of Vietnam, its industrial output during January to February 2007 reached nearly VND 90 trillion (USD 5.75 billion) a YoY increase of 17.5%.

Foreign firms, which registered nearly 39% of January and Februarys total output, saw the highest growth of 22% to USD 2.24 billion, while private domestic companies experienced a 19.8% increase to more than USD 2 billion. State owned enterprises saw industrial production increase 8.8% YoY to USD 1.5 billion in the first two months of the year.

Key industries generally saw growth rates even higher than the average for all industries as automobiles & diesel engines grew by 36.8% and 27.9%, respectively. Coal production reached 6.9 million tonnes during the first two months of 2007, rising by 24.9% YoY, while cement production poured ahead to 5.1 million tonnes up by 23.6% YoY.

Despite impressive growth figures, the GSO did note several industries that slipped in the first two months of the year. Crude oil exploitation reached only 2.79 million tonnes down by 1.9% YoY while liquefied natural gas and electrical motors fell by 7.9% YoY and 23% YoY respectively.

Spichenkovsky mine auction gets 5 bids

Russian ministry informed announced that it has received 5 bids from Sibcoal, Berezovsky Pit, KMU Sibstalconstruction, Siberia & Co Coal under the auction called for the development of Spichenkovsky coal mine in Kemerov. The starting price is set at RUB 1.5million.

Spichenkovsky coal deposit is located at Prokopyevsk in coal basin of Russia Kenerov region and is estimated to have 1.8 million ton of coal in reserves

The winner should drive the output to 100th ton of coal in 72 months after registration of the license.

Earlier the auction was held December 15th 2006, but failed due to insufficient number of the bidders.

Zeehan Zinc plans float on AIM

Zeehan Zinc Limited announces that it intends to seek admission of its shares to trading on the AIM market of the London Stock Exchange and that the dealings are expected to commence on March 6th 2007. Libertas Capital is acting as nominated adviser and broker to the Company.

As per report Zeehan Zinc has raised GBP 9 million pre expenses, through the placing of 46,153,846 new ordinary shares in the company at 19.5 pence per share, capitalizing the company at approximately GBP 26 million.

The funds raised will be used principally to finalize the development of integrated zinc, lead and silver mining and processing operation within its mining tenements, where Zeehan Zinc is targeting future production of ore up to 800,000 tonnes per annum. It is expected that commercial production will commence during 2007.

Mr John Pollard CEO of Zeehan Zinc said that "We look forward to joining AIM and believe that the proceeds of the IPO will enable the Company to progress towards production this year as much of the infrastructure is already on site. We are also confident of increasing our resource base through further exploration activity which will provide our investors with potentially very attractive upside in the future.

Zeehan Zincs current JORC compliant resource base has been estimated to be approximately 6.9 million tonnes of ore containing, on average, grades of 4.4% zinc, 3.5% lead and 34 grams per tonne of silver within a 393 hectare area covered by the mining leases and the mining lease application held by the Company.