IBM approves SAIL BSP's mining plan for Rowghat

It is reported that Indian Bureau of Mines has approved the mining plan of Steel Authority of India Limiteds Bhilai Steel Plant's for Rowghat iron ore mines located in Bastar and Kanker districts of Chhattisgarh. A BSP spokesman said "Indian Bureau of Mines, Nagpur, under the Ministry of Mines has approved the BSP's mining plan for Rowghat.

Chhattisgarh government has already given its formal consent to BSP's plan for mining iron ore at Rowghat which was prepared by the Central Mining Research Institute, Dhanbad. With the mining plan approved by IBM, the Chhattisgarh government would now move to the union environment and forest ministry for clearance.

Other reports like that of the Botanical Survey of India and Zoological Survey of India have already been submitted. Chattisgarh government is also moving fast to get the MOU finalized for laying the railway lines to Rowghat.

The Rowghat mines are crucial for BSP as the reserves at its captive mines at Dalli-Rajhara are fast depleting and holds key to its expansion and modernization plans under SAIL's corporate plan 2011-12 under which BSP is scheduled to expand its hot metal capacity to 7.5 million tonne by 2010 from the present 5 million tonne.

POSCO admits frustration over delays in Indian project

As per media reports, POSCO has started to review its plans for setting up mega steel plant and looking at other options in South East Asia due to zero progress in last 18 months. As per reports, POSCO is now actively considering the idea of shifting to Vietnam, where it has already begun construction of a USD 1 billion 3 million tonne steel plant, to continue its overseas growth plans

Now, POSCO has sought categorical assurance from Indian government on various issues pertaining to its 12 million tonne project. POSCO officials have asked the Orissa government to spell out its stand on its project as it cannot afford to wait for an indefinite period. POSCO is reported to have told the centre and the Orissa government that If matters were not sorted out within the next 2 to 3 months then it could re consider its investment plans in the country.

Mr Ku Taek Lee CEO of POSCO last week met Mr Kamal Nath union minister for commerce and industry to discuss the progress of its project. The minister assured Mr Lee that Indian government would very soon create conditions for POSCO to start its operations.

POSCO which had signed a MoU with Orissa government in June 2005 is facing stiff resistance from locals at its project site in Jagatsinghpur district. In addition, Orissa High Court has directed temporarily not grant the mining license to POSCO after on a petition filed by Kudremukh Iron & Ore Limited Company.

Anti POSCO faction warns of violence if forced

Statesman News Service reported that anti displacement activists, who are opposing PSOCOs steel plant, held a Jan Garjan Samabesh and warned the government of violent resistance if the plant was forced upon them. They declared at the meeting We will also form suicide squads.

The meeting was attended by people from the villages of Dhinikia, Nugaon and Gadakujnag panchyats. Anti POSCO activists declared that they would not hesitate to become radicals on lines of Maoists, if the government tried to force the issue. They dared the police administration to use force against peaceful peoples movement and resistance. They declared that We know how to respond to police force.

Mr Abhaya Sahu one of leaders of agitators said that the need to reaffirm and a show of strength were due to certain recent developments, including the district administrations notice to lift the check gates erected.

Timken to set up manufacturing unit at Chennai SEZ

Telegraph reported that worlds largest roller bearing makers, Timken has decided to set up its second manufacturing unit in a special economic zone at Chennai in India. The new unit, involving an investment of INR 112 crore (USD 25 million) in the first phase, will begin its operations by the end of 2007.

Mr Gordon W Robinson MD of Timken India Ltd told Telegraph that the unit would focus on industrial bearings. He said I see a huge growth in the infrastructure sector. Our offerings from the new unit will eventually target that market. The company would not shift its focus from the Indian market despite being within an SEZ. You need to be a net exporter.

Timken has so far emphasized on the export market, making India a global base.

Timken entered the country in a joint venture with the TATAs in the late 80s. It set up a unit in Jamshedpur, serving mostly to the rail and road sectors. It supplied bearings to the TATA Motors. TATAs sold their stake to Timken in 1999 and the parent company now holds an 80% stake in Timken India.

CIL to revive MAMC through a JV for equipment sourcing

The Business Line newspaper reported last week that Coal India Ltd is considering reviving its closed subsidiary Mining and Allied Machinery Corp in West Bengal.

AS per report, CIL has already conveyed its intention to revive the closed mining subsidiary to Mr Buddhadeb Bhattacharya chief minister of West Bengal, who has asked the CIL to go ahead with the proposal and promised all possible assistance.

The report cites a CIL spokesman as saying that "We also have plans to set up a company with a foreign underground mining equipment machinery manufacturer to ensure easy availability of machinery and spares for our underground mines. The spokesman said CIL has initiated the process of selecting the overseas partner for the joint venture.

West Bengal controlled Damodar Valley Corp has also approached CIL announcing its interest in the JV, so as to source mining equipment and machinery from the revived company for its existing and future captive underground coal mines.

Mittal Investment inks MoU for 49% stake in Bathinda Refinery

Mittal Investments, a 100% subsidiary held by steel baron Mr LN Mittals family, has signed the formal agreement with Hindustan Petroleum Corporation Limited for acquiring 49% equity in HPCLs special purpose vehicle for building INR 16,000 crore 9 million tonnes per annum Guru Gobind Singh Refinery project at Bhatinda and laying a 1,100 kilometer pipeline for transporting crude from Mundra port. The project will be completed by September 2010.

49% equity in refinery will be held by HPCL while 2% of the project will be held by financial institutions. Mittal Investments will infuse INR 3,300 crore in the SPV.

The investment comes a year after European oil major BP pulled out saying the project was unviable. The new refinery at Bhatinda will have a capacity of 180,000 barrels a day.

According to industry experts, a tie up with HPCL brings refinery expertise and could open doors for Mr LN Mittal's oil trading plans with HPCL emerging as the preferred partner for getting into refining and gas business globally. Mr LN Mittal also has JV with Oil and Natural Gas Corporation called ONGC Mittal Energy Ltd. Mittal Investments had last year bought Russian Lukoil's 50% share in Kazakhstan for a billion dollars and 3% stake in the USD 6 billion Chevron-operated Olokola LNG project in Nigeria.

Mobilization of resources for Indian Railways projects

Indian Railways will require INR 60,000 crore for completing its projects and to achieve the targeted annual growth rate of 9%.

Mr Lalu Prasad union minister for railways while addressing a meeting with agenda "Mobilization of Resources for Railway Projects" said that despite registering a growth rate of 14% in passenger earnings and 17% in freight earnings as well achieving a surplus of INR 20,000 crore during the year 2006-07, Indian Railways would need more funds to complete the existing projects in a time bound manner.

Mr Lalu Prasad added that public private partnerships are being encouraged in modernization of the metro and mini metro stations, construction of dedicated freight corridor, logistic parks, warehouses and budget hotels.

SCI to acquire 12 vessels

Indias largest shipping company state owned Shipping Corporation of India has obtained an in principle approval from the Public Investment Board to buy 12 ships of four different types which are expected to cost up to INR 3,800 crore. This is the first time SCI is getting block approval from PIB to buy 12 vessels. The company will now start the process of buying all the four types of ships simultaneously for which bids from shipyards are to be invited soon.

The report cites a SCI executive as saying that "The block approval will expedite vessel acquisition for SCI. Now the company can go ahead with the vessel acquisition program after intimating PIB the actual vessel price against the estimate price given for the purpose of block approval. Block approval cuts down the government procedures and we can proceed with inviting tenders for international shipbuilding yards.

PIB is the central government agency which examines investment proposals of public sector undertakings.

The four projects include acquiring 12 ships such as 4 Aframax tankers for oil, 4 Panamax carriers for dry bulk, 2 LR II product tankers for chemical carriage and 2 5000 TEU container vessels.

Earlier, SCI has signed a contract for building two medium range product tankers with a Chinese yard and has placed orders for two container vessels at Hyundai Samho Heavy Industries of Korea.

ONGC claims violation of OMEL agreement

PTI citing n ONGC official reported that Mittal Investments acquisition of 49% stake in Hindustan Petroleum Corporation Limiteds USD 3 billion Bathinda Refinery has violated earlier pact with Oil and Natural Gas Corporation to pursue hydrocarbon opportunities exclusively with them. Besides, Mr LN Mittal has on his own bought 50% stake in a Kazakhstan oil firm from Russia's Lukoil for USD 980 million dollars and acquired 3% cent stake in the USD 6 billion dollar Chevron-operated Olokola LNG project in Nigeria.

Mr LN Mittal signed a JV agreement in July 2005 with ONGC to form ONGC-Mittal Energy Limited for acquisition of oil and gas fields, refinery business and LNG projects. As per report which cites an ONGC official as saying that The July 24, 2005, agreement had earmarked 27 countries for exclusive pursuit of hydrocarbon opportunities by OMEL. For the rest of the world, it clearly stated that Mittal shall offer ONGC Videsh a partnership in any venture or business opportunity it wishes to undertake in the hydrocarbon sphere.

Clause 2.4 of the 2005 agreement reads In the event Mittal or any of its affiliates is desirous of undertaking any venture or business opportunity in the hydrocarbons business in areas other than the Territories 27 countries, Mittal shall invite OVL, to the extent permissible and in the manner and with such information about such venture or business opportunity as it deems fit, to participate in such venture or business opportunity together with Mittal. He added that Nigeria and Kazakhstan fall under the 27 exclusive countries marked for OMEL

The official said that the agreement had classified target countries into Schedule-I and II. Schedule-I countries including Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan, where Mittal and ONGC had agreed to participate on an exclusive basis through OMEL. Schedule-II countries including Bosnia, Canada, China, Czech Republic, France, Germany, Kyrgyzstan, Liberia, Macedonia, Mexico, Nigeria, Poland, Sao Tome and Principe, South Africa, Sudan, United Kingdom and the US, where the two agreed to bid jointly on a case to case basis.

Review & forecast of China's steel export in 2007

China has experienced a shift from a net steel importer to a net exporter in 2006 with rapid capacity expansion. Nearly half of additional crude steel China made was consumed by the international market in 2006 given reported net crude steel export of 34.46 million tonnes for the year.

The table below depicts import and export of steel products and billet/slab during 2000-2006

In 10,000 tonnes

By monthly comparison, import of steel product and billet/slab stood relatively stable while the export surged dramatically from June 2006 till December 2006. Export of steel product and billet/slab in January to May and June to December respectively totaled 14.73 million tonnes and 37.43 million tonnes with a monthly hike of 78% for the later period.

Among 2006 import, flat products accounted for 82%; while among the export, flats accounted for only 39%.

In 2007, it's believed the export volume will keep a relatively considerable growth in midst of healthy demand. Looking to the future export condition, billet & slab will mainly be shipped to East Asia and Southeast Asia, where the demand remains huge, with a few producers directing to Russia etc. As to export volume, as global demand for billet & slab tend to decline, China's export may also drop, by an estimate of 30% to 7 million tonne around. In longer term, billet/slab export would fall further from 2008 with fewer surpluses at home.

In general, some 10 million tonnes glut is possible this year according to above import and export estimations and further shrinking net export in 2008 may add to the surplus figure and cast negative impact on the home market. Mysteel warns to keep cautious toward the steel market especially in H2 of 2007.

(Sourced from MySteel.net)

Arcelor Mittal dismisses reports about POSCO acquisition

Arcelor Mittal has dismissed recent media reports citing its interest in acquiring POSCO as speculative. Mr LN Mittal president & CEO of Arcelor Mittal after attending convocation at the IMT Ghaziabad in India told reporters "These are all speculations.

Mr Aditya Mittal CFO of Arcelor Mittal told CNBC television on March 23rd that "We are friendly with POSCO and we are working with them to further alliances in technology. A merger or acquisition is not on the agenda.

The Korea Economic Daily reported on March 16th 2007 that Arcelor Mittal was considering a hostile takeover of POSCO and that a message about Arcelor Mittal's interest was conveyed to POSCO during the visit of Mr Ronald Junk last month.

Arcelor Mittal has been planning to expand in Asia and has made attempts in China but without much success so far.

Chinas 2007 SS output forecast to increase by 37% YoY

Metals research firm Heinz H Pariser said that the world's largest stainless steel producer China will probably increase its 2007 output by 37% YoY to 7.35 million as compared to 5.36 million tonnes 2006.

Mr Beatrix Nowak chief analyst of Heinz H Pariser told a conference in Foshan City of Guangdong province that SS global output is estimated at 31 million tonnes in 2007 up by10.7% YoY as against 28 million tonnes in 2006.

Acindars profit may be lower due to higher costs & slower growth

Reuters has reported that higher costs and slowing growth in key sectors of Argentina's economy would give its No 2 steelmaker, Acindar a tough time in matching its 2006 profits this year. Mr Arturo Acevedo CEO of Acidnar at the Reuters Latin American Investment Summit in Buenos Aires said that "We're going to have a big challenge to maintain because of the issue of domestic costs.

Mr Acevedo said that he expects higher costs for wages, natural gas, electricity and iron ore. He said that sector wide salary negotiations are in full swing, with companies aiming for a 10% rise and unions seeking a 20% hike and a reasonable wage increase should be in line with inflation which was nearly 10% in 2006.

Mr Acevedo said. Although these areas won't grow at the vertiginous rates of 2005 and 2006, that doesn't mean business will not still be good in 2007. He added that profitability is being squeezed and we're working to counteract the increase in domestic costs by trying to be more efficient."

Acidnar will boost its exports which accounted for only about 13% of 2006's sales volume if it finds demand has flagged in the local market.

Acindar is controlled by Belgo Siderurgica which in turn is controlled by Arcelor Brazil part of international steel giant Arcelor Mittal. Acindar is Argentina's market leader in rolled steel which provides materials to the farm and construction sectors along with local industry, including automobiles sectors that have been flourishing as the economy grows briskly. Acindar posted a 2006 net profit of ARS 603.9 million up from ARS 549.7 million in 2005. Acindar plans to invest about USD100 million in 2007 to expand its production capacity to 1.7 million tons a year from 1.4 million tons currently.

Argentina's economy grew more than 8% in each of the last four years after recovering from a devastating 2001-02 crisis.

OMK announces CAPEX of USD 140 million in Nizhny Novgorod

Pipe and metals holding United Metallurgical Company in a recent statement said that it will invest upwards of USD 140 million in the expansion of the first stage of a smelter which is under construction in the Nizhny Novgorod region. OMK plans to commission the first stage of the steel plant for which Danieli is the main equipment suppler at the beginning of 2008.

OMK has signed a deal with Spain's Fagor costing EUR 14.1 million to supply a coil cutting line it also signed a EUR 3.5 million contract with Italy's Danieli for rolling mill spare parts.

The new equipment will increase the smelter's first stage capacity from 1.2 million tonnes to 1.5 million tonnes of hot rolled steel annually and broaden its product range. The upgraded equipment will be able to produce not just coils but also sheet 0.8mm to 12.7 mm thickness and 800mm to 1,800 mm wide.

BHPB completes USD 2.8 billion off market share buy back

BHP Billiton has announced the successful completion of its off market buy back of 141.1 million shares for USD 10 billion, which was announced on February 7th 2007 representing 2.42% of the issued share capital of the BHP Billiton Group and 4.03% of BHP Billiton Limited.

The final price for the buy back has been set at AUD 24.81 per share representing a discount of 14% to the volume weighted average price of BHP Billiton Limited shares over the 5 trading days up to and including the closing date of the buy back.

In addition to the completion of this off market buy back the on market purchase of BHP Billiton Plc shares has continued and since September 2006 it has repurchased 104.9 million BHP Billiton Plc shares at an average price of GBP 9.60 leaving approximately USD 1 billion of this initiative to complete.

Mr Alex Vanselow CFO of BHP Billiton said that "We are pleased with the strong support we have received from shareholders in this transaction. The successful execution of the off market buy back maximizes economic value for all our shareholders, who benefit from the enhanced value of the remaining shares through the increased earnings, cash flow and return on equity attributable to each share. Completion of the off market buy back combined with the ongoing on market purchase of BHP Billiton Plc shares means we have repurchased 8.67% of the capital of BHP Billiton since November 2004 and have spent USD 8.6 billion completing these initiatives. We are targeting to spend the remaining USD 8.2 billion of the previously announced capital management programs on further buy backs before August 2008.

CMC reports second quarter results

Commercial Metals Company last week reported net earnings of USD 65.9 million on net sales of USD 2 billion for the quarter ended February 28th 2007 as compared with net earnings of USD 80.1 million on net sales of USD 1.6 billion for the second quarter last year. This year's second quarter included after tax LIFO expense of USD 12.3 million as compared with income of USD 2.6 million share in last year's second quarter.

Net earnings for the six months ended February 28th 2007 were USD 151 million on net sales of USD 4 billion as compared to USD 150 million on net sales of USD 3.3 billion last year. For the six months ended February 28th 2007 after tax LIFO expense was USD 18.9 million as compared with an expense of USD 11.5 million last year.

Mr Murray R McClean president & CEO of CMC said "We achieved solid results for a second quarter with a significant improvement at CMCZ, our Polish operation. The winter quarter is typically our weakest quarter. In the US, we took the opportunity to undertake major maintenance and capital expenditure programs at our domestic steel mills during the quarter. As a result, our steel shipping volumes were down by 40 thousand tons. Rising steel prices late in the quarter caused larger than expected LIFO charges in our Domestic Mills and Domestic Fabrication segments. With its faster inventory turns, our Recycling segment benefited more rapidly from higher scrap prices. Marketing and Distribution continued to take advantage of overall favorable global metal markets."

LIFO is an inventory costing method that assumes the most recent inventory purchases or goods manufactured are sold first which in periods of rising prices results in an expense that eliminates inflationary profits from net income.

Nippon & Arcelor Mittal to expand US operations Report

The Nikkei business daily without citing sources has reported that Nippon Steel Corp and Arcelor Mittal have agreed to expand their US automotive steel sheet JV and to discuss cooperation on future projects.

The report cites that Nippon Steel and Arcelor Mittal plan to build a new plant in the US to double the production capacity of this venture from the current 500,000 tons per year with an investment of JPY 30 billion.

The world's 2nd largest steelmaker Nippon Steel and global leader Arcelor Mittal currently have a 50:50 JV for automotive steel sheet in Indiana an

The newspaper also said that the firms will also discuss cooperation in regions other than the US and Europe.

ThyssenKrupp to adopt RFID tags to track slabs

ThyssenKrupp Steel will be using radio frequency identification technology for slab transportation and distribution logistics at its new steel mill in the Bay of Sepetiba in Brazil. The international consultants Accenture are supporting ThyssenKrupp Steel in the introduction of RFID with experts from Germany and France.

ThyssenKrupp has recently completed successful pilot trials with 1,000 slabs purchased in Brazil and marked with RFID tags. Ahead of the pilot trials, tests were carried out to find out how the RFID tags react to harsh environmental conditions such as seawater, large temperature changes, snow and ice as well as bumps and knocks during transit. In every instance, RFID technology proved to be the first choice for slab logistics.

The special feature of RFID is that it is capable of reading data over large distances without the need for visual or physical contact and transferring the information to IT systems for processing. The key elements of RFID systems are a radio tag known as a transponder, a reader with antennae and interfaces to IT systems.

ThyssenKrupp Steels microchip stores a 10 digit number code which can be used to unambiguously identify every slab produced by the company. The microchip and an antenna unit are integrated in a plastic label known as the RFID tag. These tags will be encoded and attached to the center of the slab sides in the harbor in Sepetiba. The slabs will subsequently be identified by an RFID reader, which emits a high frequency electromagnetic wave. The energy from the radio wave excites the antenna coil in the tag and generates an induced current. The current activates the microchip which then sends its information back to the reader. The data are transferred from the reader to the central IT systems, where information is stored on the steel grade, dimensions, customer and destination of each slab.

The major advantage of RFID is its range. In the ports, the system can identify the slabs while they are still suspended at a height of around three meters from the gantry cranes. For this the readers are permanently installed on the cranes. In just a few milliseconds, the crane operator receives information on where to unload the slab. And for the final check directly ahead of the hot strip mill furnaces, fixed RFID readers ensure that the right slabs are being processed.

ThyssenKrupps Brazilian steel mill is currently under construction and is scheduled to start production of 5 million tonnes of steel per year in early 2009. The slabs will be processed in North America and at ThyssenKrupp Steels German plants and a total of 250,000 slabs will be transported every year, around 100,000 of them to Germany.

LME to stick to in warehouse contracts

London Metal Exchange has concluded that it is not in the best interests of the exchange or the wider metals industry to switch its contracts from an in warehouse to a free on truck basis but intends to continue to challenge the legal constraints around setting maximum FOT rates.

LME said in a statement that Europe Economics and the LME Executive and all other representations made to the exchange on the issue, including from the International Wrought Copper Council, the board has concluded it is not in the best interests of the exchange or the wider metals industry to change from an in warehouse basis of contract.

Mr Martin Abbott CEO of LME while speaking at a press briefing said that the LME board had accepted a study recommendation on FOT charges and therefore there would be no change to the design of the LME metals contracts.

Mr Abbott added that "We also take on board all the other recommendations of the study and we recognize the need to have relationships. But we have agreed that that our respective legal departments will communicate and see if there is a way for the LME to gain control over the way FOT charges are formed and assessed. Until then we are told that we may or may not be involved in the management of these costs.

LME board has also recommended that the LME should continue to keep warehouse locations under constant review, in accordance with the exchange's location policy, in order to optimize warehouse numbers and locations. LME said that The board will continue to keep a close watch on all warehousing matters as it believes the exchange's warehousing operations and in particular the location of its warehouses, play a crucial part of the exchange's role as the world's premier non ferrous metals market in providing a reliable price discovery mechanism. The LME's warehouse network currently comprises over 400 warehouses in some 32 locations covering the US, Europe, the Middle East and Asia. These warehouses are approved but not owned by the LME.

Chaparral Steel reports record third quarter earnings

Chaparral Steel Company announced its record Q3 net income of USD 62.5 million for the period ended February 28th 2007 representing an increase of USD 13.3 million as compared to net income of USD 49.2 million for its Q3 of fiscal 2006. Its operating profit of USD 101.3 million increased 23.5% YoY as compared to the Q3 of fiscal 2006.

Net income during this quarter is only surpassed by the record net income of USD 67.5 million set in the Q2 ended November 30th 2006.

Its shipments of 567,000 tons were the fourth best quarter in the company's history. Shipments were similar to the Q3 of fiscal 2006 and were up almost 5% from the Q2 of this year. Average selling prices of USD 679 per ton increased USD 79 from the Q3 of fiscal 2006 and were down slightly from the Q2 of this year due to product mix.

Mr Tommy A Valenta president & CEO of Chaparral said that "This was the second best quarter in our Company's history in what is usually our seasonally slowest quarter. This demonstrates the strength of our market and we continue to see strong domestic and international demand for structural products and improving global prices going into the busier construction season."

For the nine months ended February 28th 2007, Chaparral had record net income of USD 189.1 million as compared to net income of USD 101.0 million for the first nine months of fiscal 2006. The improved profitability was primarily due to higher metal margins and lower energy costs.

Mine flooding leaves 15 dead in Zhengzhou

Xinhua News Agency has reported that at least 15 miners were feared killed in a coal mine flood at Shangjiuwu coal mine in Ruzhou city of Zhengzhou and the dead bodies were recovered late Saturday evening from the mine. The report said that a high density of gas and a lack of oxygen killed the miners and that the owner of the privately run mine was detained because mine managers started rescue work without immediately reporting the accident to local safety authorities.

The unfortunate incident occurred late last Thursday when 52 miners were working inside the mine and it is not clear if the others escaped or were still trapped.

The cause of the flood is being investigated.

The privately owned mine had been upgrading production facilities before the accident. It had won government approval to raise its annual capacity from 90,000 tonnes to 150,000 tonnes.

USs Steel Cacus endorses bill for US steel industrys fight against China

It is reported that, in an attempt to help US manufacturers better compete in a global economy, Rep Peter Visclosky D-Ind and 31 members of the congressional steel caucus endorsed a bill recently that would impose a tariff on unfairly subsidized imports. The legislation, introduced by Reps Artur Davis D-Al and Steel Caucus Vice Chairman Phil English R-Pa would allow certain taxes to be imposed against non-market countries such as China.

Mr Visclosky said the legislation will allow the American steel industry to compete on a level playing field and slow the flow of American manufacturing jobs from being sent abroad. He said "Too many good-paying jobs have been shipped overseas and the time is past due to strengthen our local steel and manufacturing industries. With China producing more and more illegally subsidized steel, our country will continue to be put at a competitive disadvantage unless we act now."

Specifically, the legislation would require the USs Commerce Department to review trade complaints against non market economy countries, a step it has refused to take for 20 years. The department argues that excessive intervention by the Chinese government makes it impossible to make necessary price comparisons to determine what action should be taken.

Non market countries refer to nations that do not allow the market to determine the value of their currency. Unlike market economies, these countries set their own fixed rate.

China to invest CNY 16 billion on wind power in 2007

China Knowledge reported that China plans to invest CNY 16 billion in 2007 to almost double its wind power generation as its energy demand is increasing.

Mr Li Junfeng secretary general of the Chinese Renewable Energy Industries Association said that China would increase its wind power capacity this year to 4,300 MW from 2,300 MW in 2006. He also said that increasing the capacity by one KW would cost RMB 8,000.

The Chinese government plans to spend RMB 1.5 trillion within 15 years to 2020 to increase the use of renewable resources and cut its reliance on coal and oil. China wants sources such as sunlight wind and water to account for 16% of its energy supply by 2020.

Metalloinvest to begin construction on Hamriyah Steel in Q2

Metalloinvest Management Company will start site construction works to build a Hamriyah Steel mill in the UAE in the second quarter of 2007. According to preliminary estimates, the total capital investment will amount to USD156 million. Construction works is expected to be accomplished by the end of 2008 and by late 2009 the plant will be operating in full capacity.

The project is being realized in accordance with an earlier planned timeline. In the end of 2006, the land for the mill and an industrial license were obtained. By March 2007 and all the necessary documentation for infrastructure development another were completed and adequate gas and water supply were ensured.

Construction of 1 million tonnes per year rebar production facility in the UAE will enable Metalloinvest to increase sales efficiency of Ural Steel since it is planned to cut down low profit billet export and to organize billet processing to produce rebar.

As it is decided by the shareholders of Gazmetall JSC, Hamriyah Steel will become a part of the united Gazmetall Holding, which is currently in the final stage of its asset consolidation.

Brazil February 2007 crude steel output up by 17.6% YoY

The Brazilian Steel Institute announced that Brazilian crude steel production in February 2007 surged to 2.507 million tonnes up by 17.6% YoY as compared with 2.131 million tonnes in February 2006 as steelmakers increased output to meet rising domestic demand. IBS said that for the first two months of 2007, Brazils crude steel output was up by 10.7% YoY at 5.21 million tonnes from 4.708 million tonnes in the first two months of 2006.

According to the IBS data, production of rolled steel products in February 2006 increased by 16.2% YoY to 1.879 million tonnes up from 1.617 million tonnes in February 2006. Production of flat steel products in February 2007 climbed up by 27.4% YoY to 1.164 million tonnes while output of long steel products advanced a more modest 1.5% to 714,800 tonnes.

Domestic steel sales jumped up by 12.2% YoY in February 2007 to 1.406 million tonnes up from 1.253 million tonnes in February 2006. In addition, domestic sales are focused on higher value finished products such as rolled flat and long products which gained 12.8% YoY in February 2007. Domestic sales of semi finished products such as slabs, blooms and billets in February 2007 are down 1.9% YoY. Slab sales are down 11.6% on the year largely because of the surge in purchases last year by Companhia Siderurgica Nacional which had to buy slabs on the open market to feed its rolling mills after an accident shuttered its primary blast furnace.

Export sales are down on the year because steelmakers are diverting production to meet domestic demand. Export sales fell 7.3% in February to 892,200 tonnes down from 962,000 tonne in February 2006. In dollar terms, export sales tumbled 9.3% YoY to USD 549 million from USD 605 million a year ago.

IBS said output has risen because of strong domestic demand related to January's announcement of President Mr Luiz Inacio Lula da Silva's Accelerated Growth Program or PAC IBS said "The launch of the PAC combined with the continued decline of interest rates is creating a favorable climate for investments that is contributing to a more dynamic economy.

Sayegh Group launches new ETP processing line

Jordans leading industrial group Sayegh Group has recently announced the launch of its new production line of tin cans and containers.

The new line allows for the printing, painting and drying of up to 10 tonnes of tin sheets simultaneously at high temperatures ranging to ensure optimal drying quality while controlling the temperature through a digital thermostat. The production process is conducted in two stages. The first stage involves printing on metal sheets using a revolving printing machine and the second stage involves the drying of printed tin sheets in the drying chamber utilizing hot air blow mechanism.

The new production line is also distinguished with the unique and revolutionized system used to control the drying oven temperature. The system contains a fan, a burning chamber of which gases are combined with air all to be redirected to the drying chamber. Optimal dryness accordingly is achieved through continuously blowing hot air in a circular motion infiltrated within the tin sheets placed in the oven.

Mr Michael Sayegh the chairman of the board of Sayegh Group said We at Sayegh Group continuously strive to cater the local, regional, and international markets with their different demands and with this new production line we are confident in heading towards the right direction, servicing our clients who are always looking for innovation.

Sayegh Group is an industrial group founded in Jordan over 75 years ago. The group comprises of 31 companies spread across the Arab World, Eastern and Western Europe, and Asia. These companies operate different areas of specialties including chemical and engineering industries, real estate and various services. Its Canning Industries Co produces metal cans of a complete range of shapes and sizes to suit the needs of many industries especially food industries, aerosol cans, crown caps as well as iron drums of different sizes.

Baosteel opens representative office in Dubai

Chinese steel major Baosteel has opened a new representative office at Jebel Ali in Dubai in order to boost supplies to the Middle East region. The new office will study the region's steel imports that have been growing because of the ongoing construction activity in a number of Arab countries.

Mr Ye Meng Baosteels chief representative for Europe, Middle East and Africa said that "The Middle East market will become a new engine of growth for Baosteel."

Baosteel officials said there is no plan at present to set up a steel mill in the UAE but they will look at this possibility if they find a strong partner. Ms Xie Qihua former chairwoman of the Baosteel group's earlier said that "The Middle East is a strategic market. We will look at investing in the region in a partnership."

Baosteel exported about 150,000 tonnes of steel products to Middle Eastern countries last year but it was just a fraction of its 22.5 million tonnes of production.

NLMK orders a HDG line and 2 CR mills

It is reported that NLMK has placed an order for the erection of a hot dip galvanizing plant with an annual capacity of approximately 300,000 tons with International Andritz Group. The line is scheduled for start up in the last quarter of 2008. Andritz's scope for this project comprises the overall engineering as well as the supply and start up of the mechanical equipment. This is the second hot dip galvanizing plant that Andritz will supply to NLMK.

In addition, NLMK placed an order for the supply of a combined four high / S-6 high reversing cold rolling mill for transformer sheet for their Lipezk mill and for the supply of a four high reversing cold rolling mill for transformer sheet at NLMK's affiliate Viz Stal. Andritz will supply the complete mechanical systems as well as all ancillary and electrical equipment. This will help to substantially improve operational reliability as well as productivity and product quality.