SAILs RSP crosses 2 million tonne hot metal mark in 2006-07

It is reported that Steel Authority of India Limiteds Rourkela Steel Plant has surpassed its 2 million tonne capacity in 2006-07 by producing record 2.12 million tonnes of hot metal. RSPs crude steel output stood at 1.99 million tonnes and it produced 1.94 million tonnes of saleable steel.

RSPs capacity utilization, for the first time, crossed 100% in all areas with hot metal production achieving 106%, crude steel 105% and saleable steel an outstanding 116% of the rated capacity. These units have also registered the highest ever growth of around 20% YoY as compared with the levels achieved in 2005-06.

Another aspect of the steel plant's initiative at enhancing profitability is its cost control effort by improving process parameters. Improvements were recorded in coke rate per tonne of hot metal, specific energy per tonne of crude steel, specific water consumed per tonne of steel and lining life of LD Converters leading to cost reduction of nearly INR 132 crore during the fiscal.

Paradip Port to add two 10 million tonne berths for coal & iron ore

It is reported that the centre government has given approval for construction of 2 special berths of 10 million tonne each capacity at Paradip port with an investment of INR 930 crore to handle import of coke and export of iron ore from Orissa. 2 special berths would raise PPT's existing cargo handling capacity to 71 million tonnes per annum from 51 million tonnes now.

Mr K Raghuramaiah chairman of Paradip Port Trust told reporters that "The in principle approval was accorded to these projects on Friday last. We will soon go for tenders as the special berths will be developed on public private partnership mode."

A senior PPT official said that while it has been decided to develop the special coal handling berth at an estimated cost of INR 550 crore, INR 380 crore has been earmarked for the iron ore berth.

BHEL targeting USD 10 billion turnover target by 2011-12

Power equipment manufacturer BHEL while announcing its 2006-07 results revealed that it would be targeting to achieve a turnover of USD 10 billion by 21011-12.

Mr AK Puri CMD of BHEL told a news conference ""A strategic plan for ensuring a sustainable and profitable growth for the company has been drawn up to enable the company's turnover to grow from USD 4 billion to USD 10 billion by 2011-12. BHEL plans to have 15,000 MW power equipment manufacturing capacity during the 11th plan.

Mr Puri added that the plan focuses on capacity and capability enhancement that will leverage the company's efforts in its core area of power, supported by industry, transportation, transmission, exports and spares & services businesses.

BHEL has posted a net profit of INR 2,385 crore for 2006-07 up by 42% YoY as against INR 1,679 crore in 2005-06. Its turnover also increased by 29% YoY to INR 18,702 crore as compared to INR 14,525 crore in 2005-06. BHELs total export turnover including both physical and deemed reached INR 6,355 crore and physical exports rose by 38.9% to INR 1,029 crore. Order inflows in 2006-07 were pegged at INR 35,633 crore. BHELs year end outstanding order book stands at around INR 55,000 crore.

Indian government to grant sops for increasing coastal movement

Indian government has announced that all steps would be taken to promote the coastal shipping and to fully realize the potential of this cost effective, fuel efficient and environment friendly mode of transport.

Mr Thiru TR Baalu union minister of shipping, road transport & highways, while presiding over a review meeting held recently to discuss various issues pertaining to the growth of Indian coastal shipping directed the concerned officials to examine various short term and long-term measures aimed at promoting coastal shipping.

Mr Baalu said that the officials should explore various possibilities for accelerated growth of the coastal shipping and emphasized that this sector should grow through a mix of policy measures and financial incentives by the government. He asked the officials to examine the feasibility of the following steps to promote coastal shipping

1. Feasibility of providing further rebate in the existing 40% vessel related and cargo related charges at major ports
2. Possibility of entitling Indian-flag vessels carrying even part coastal cargo for concessional tariffs for the coastal sector
3. Scope of providing special dedicated berths at identified major ports for coastal vessels
4. Feasibility of authorizing the Classification Societies with special reference to the Indian Register of Shipping for undertaking statutory survey on behalf of the Director General of Shipping
5. Earmarking of dedicated storage areas for coastal cargos at identified major ports so as to provide them a longer free period considering their long evacuation process.

Mr Baalu said that the above measures should be discussed threadbare with all the stakeholders especially with the coastal vessel operators besides formal consultations with all the Maritime States.

The review meeting was attended by the chairman & members of the National Shipping Board, chairman of Inland Waterways Authority of India and chairpersons of various ports besides the senior officials of the ministry of shipping, road transport & highways.

Mormugao Port watching for effects of iron ore export tax

Navhind Times reported that Mormugao Port said that it is too early to ascertain the impact of export tax imposed on iron ore exports from Goa to foreign countries. Mr Praveen Agarwal chairman of the Mormugao Port Trust while addressing a press conference said that the centre is closely monitoring the situation and reports have been sought from all the ports, as regards to effect on exports.

Mr Agarwal further said that there was near normalcy in iron ore exports following a slight delay in the beginning of March. He said that the iron ore exporters were apparently meeting their past commitments and exporting the ores by paying the export tax. Mr Agarwal also said that rather than mine owners, the iron ore traders were likely to be hit most, adding that a fruitful solution would emerge from the debate now going on.

He further said that the MPT, which had planned expansion of its facilities to handle more ore exports, was closely monitoring the situation. He said that MPT authorities have plan for utilizing berth number 8 also for handling iron ore by adding additional facilities at a cost of INR 80 crore. The total ore handling capacity would thereafter increase to over 16 million tonne from present 11 million tonne.

CILs CCL posts records results for 2006-07

It is reported that Coal India Limiteds Ranchi based subsidiary Central Coalfields Limited mined 41.35 million tonnes of coal during fiscal 2006-07 and has earned a record profit of INR 1,208 crore up by 22.7% YoY as against INR 984 crore in 2005-06.

Mr RP Ritolia CMD of CCL told media on Sunday that "It is the highest ever profit the company has made so far. The net worth of the company has increased to INR 1641 crores against a paid up capital of INR 940 crores. During this period, the gross sale turnover of the company was INR 4000 crores during 2005-06, a growth of 2.3% over last year.

Mr Ritolia pointed out that the overall productivity of the CCL during the last fiscal was 2.7 million tonnes, while the earning per man shift was INR 781.54 during 2006-07 as against INR 765.77 during 2005-06.

ER to allow higher wagon loads for coal & iron ore

Business Standard reported that Eastern Railway would allow each wagon of a rake to carry additional 6 tonnes above its carrying capacity in case of coal and 8 tonnes over the capacity for iron ore to cater to the increasing demand in this freight sector and also generate additional revenue to fund its modernization plans.

Mr NK Goel GM of Eastern Railway said that "The freight loading scenario in the region is bright with the Panem siding at Pakur loading about 10,000 tonnes of coal per day and it is expected to double in the next one year. The new power houses coming up at Sagardighi 600 MW in phase 1 and Katwa 1,000 MW would also help in growth of freight traffic.

ER has taken several initiatives as part of its efforts to spruce up infrastructure to handle more freight

1. Upgrading its freight maintenance facility at Naihati at a cost of INR 4.44 crore
2. It has developed new goods sheds to cater to increased freight traffic at Talit, Topsi and Durgapur
3. Running of crack trains with extended crew runs bypassing intermediate crew change points in Bardhaman-Malda, Andal-Malda, Chitpur-Andal, Bardhaman-Gomosh and Andal-Andul would result in reduction of duration of run
4. Development of an INR 2.55 crore rail infrastructure in Nalhati-Azimgunj section to take care of freight traffic after setting up of Sagardighi thermal power station
5. Full rake capacity goods loop at Aranghata with INR 3.61 crore
6. Extension loops in Bandel-Katwa-Azimganj section with INR 19.3 crore
7. ER would spend INR 52.53 crore on gauge conversion and line doubling

ER has posted total earning of INR 2,639.84 crore up by 15.16% YoY, out of which INR 1577.76 crore was earned from freight traffic.

Cochin Port cargo throughput in 2006-07 up by 10.28% YoY

BS reported that Cochin Port has handled an all time high throughput of 15.31 million tonne of cargo in 2006-07 up by 10.28% YoY as against 13.88 million tonne in 2005-06.

Mr N Ramachandran chairman of Cochin Port Trust announced performance highlights for 2006-07 as under

1. Container traffic was 226,808 TEUs up by 11.82% YoY
2. Deep draught of 12.5 meters was achieved in early 2006 and larger vessels began to call on Cochin port
3. The average parcel size of vessels has increased from 14,400 tonnes to 16,900 tonnes
4. Port registered better productivity, with average output per ship berth day improving from 7,767 tonnes during 2005-06 to 8,096 tonnes in 2006-07.
5. Regular mainline services connecting East Asia, Gulf, Europe and US East Coast had started calling at the port since November 2006.
6. Port initiated a series of measures to reduce the handling costs and to ensure a more cost effective, congenial and user friendly business environment. Some of these include 50% concession on all vessel related charges in respect of mainline ships, cost reduction of INR 2,900 for 20 feet containers and INR 3,800 for 40 feet containers in respect of reefer export containers.

Mr Ramachandran added that the port also handled the largest number of cruise ships during l2006-07 and that Kochi has had the distinction of hosting the largest number of cruise ships during the last fiscal among all Indian ports. Altogether 38 cruise ships including Queen Mary-2 and Queen Elizabeth-2, worlds first and second largest cruise vessels visited the port.

BEML's 2006-07 net profit up by 12.29% YoY

Bharat Earth Movers Limited has announced the provisional results for 2006-07. BEML has posted all time high turnover of INR 2,600 crores which is up by 18% YoY. Its value of production amounted to INR 2590 crores and profit before tax INR 315 crores up by 10% YoY. BEMLs net profit touched INR 210 crore up by 12.29% YoY as against INR 187 crore in 2005-06. BEMLs export sales during 2006-07 stood at INR 110.05 crores.

Mr VRS Natrajan CMD of BEML told media that the BEMLs order book position is currently at INR 1,670 crore and that a further INR 1,030 crore of orders were expected to flow during the next one or two months taking the total order book to over INR 2,600 crore.

Mr Natrajan said that BEML is looking at robust growth coming during the current fiscal from all its key segments mining & construction, defense and railways & metro. He added that spare parts business is projected to touch INR 750 crore in 2007-08.

Lanco to clarify FPCs queries for Sasan ultra mega power plant

BL reported that Lanco Group has denied any misrepresentation in the Lanco-Globeleq combine's bid document submissions for the Sasan ultra mega power project. Mr L Madhusudhan Rao chairman of Lanco Group told BL "There has been no misrepresentation in our bid submissions. The bidding process cannot be annulled.

He added that the combine would submit its point of view on the issue in response to a query sent by Power Finance Corporation seeking clarification on March 30th 2007 from the consortium regarding certain submissions made in its bid document for the proposed 4,000 MW project. PFC had asked the Globeleq-Lanco consortium to confirm whether details furnished in Annexure 8 of the RFQ were those of Globeleq Plc or Globeleq Singapore.

Mr Rao maintained that he stood by the data provided by the consortium. He however said that "The RFQ did not prescribe any separate format for providing information in case the bidding consortium members were using credentials of the parent company. So Globeleq Singapore relied on the financial and technical strength of the parent company Globeleq Ltd. There should be no ambiguity on the matter.

Sasan ultra mega power project, estimated to cost around INR 16,000 crore, was originally awarded to a consortium of Lanco Infratech Ltd and Globeleq Singapore Pte Ltd in December 2006. Later in February 2007, Jindal Steel and Power Ltd and Lanco Infratech's Mauritius based holding company together acquired the 100% stake in Globeleq Singapore from its parent Bermuda based Globeleq Ltd which is a unit of UK's CDC Group Plc.

BaoSteel plans for 50 million tonne by 2102

It is reported that Baoshan Iron & Steel Co Ltd has made a plan to achieve annual capacity of over 50 million tonnes by 2012 as against current 22 million tonnes. The plan is aiming to have a steel production base producing top quality steel products, maintaining the leading position in domestic flat steel products market and to become the most competitive steelmaker in the world.

BaoSteel is focusing on the high end segments to become the main supplier of automobile plates, household appliances plates, tin plates and pipeline steel in China.

BaoSteel is currently under pressures from international steel giants who are going for mergers whereas BaoSteel M&As plans in domestic steel industry are facing hurdles. In addition other Chinese steel makers are beginning to catch up with BaoSteel in terms of products and technologies. Therefore BaoSteel has to make progress in both production scale and processing techniques to keep itself ahead of its companions.

As BaoSteel has no big investment in steel sector except for the jointly built 10 million steel projects with Shaoguan Steel in Zhanjiang, Guangdong Province which is still waiting for government's approval acquisition is a necessary way to hit its scheduled target. Analysts point out relying merely on capacity expansion, BaoSteel can hardly fulfill its target hence the steelmaker is expected to speed up acquisitions in the following years.

BaoSteels crude steel output in 2006 stood at 21.74 million tonnes, only 3.38 million tons more than the 18.36 million tonnes in 2005 and it plans to produce 23.27 million tonne in 2007 up by 1.53 million tons YoY.

(Sourced from MySteel.net)

MEPS forecasts 1.6% increase in global SS output in 2007

MEPS have forecast that global crude stainless steel production in 2007 would be 28.5 million tonnes in 2007 up by 1.6% YoY. MEPS said that high prices in recent months prompted overbuying by customers through 2006 and the early months of this year and an inventory depletion phase is predicted for the next 3 quarters.

As per MEPS, US is anticipating 5% decrease in its output this year and demand is starting to slow down and import volumes are likely to remain at high levels. EU output is predicted to decline by 6% in 2007 and both domestic and export demand is expected to be lower and mill output curbs are anticipated.

MEPS said that Japanese consumption is fair and a modest improvement in supply by the producers is probable this year while production in South Korea is forecast to be little changed. However a decrease is probable in Taiwan as high prices have checked demand It added that a similar picture has been recorded in China but the monthly output has moved to a higher level from new capacity installations and that production gains are predicted in the others grouping mainly from India and Brazil.

Analysis of Chinese steel industry in 2006 and its outlook

China's iron & steel industry maintained speedy growth in 2006 as its crude steel outputs reached 420 million tonnes with optimized product mix and raised industrial beneficial result and at the same time, foreign trade kept growing up. However, the nation missed the goal of obsolete capacity elimination casting great negative pressure on domestic market. Followings are the main observation on steel scenario in China

Operations during 2006

1. China produced 417.87 million tons of crude steel up by 65.38 million tons of 18.5% YoY, 404.17 million tons of pig iron up by 19.8% YoY and 466.85 million tons of steel products up by 24.5% YoY.

2. Hebei Province, Jiangsu Province, Liaoning Province and Shandong Province posted the greatest growth and the accumulative outputs in these four provinces accounted for nearly 50% of the nation's total.

3. The list of top 9 makers, with output of more than 10 million tonnes, got reshuffled with Anshan edging out BaoSteel in the first place

In million tonnes

4. Key steel makers totally manufactured 335.71 million tonnes of crude steel by up 15.2% YoY accounting for 80.2% of the nation's total down by 2.3% YoY.

5. Chinese steel makers' product mix was further optimized. Outputs of sheet & plate products accounted for 41.9% of the nation's total steel product outputs with its output growth about 7.1% higher than that of steel products. Outputs of long products accounted for 48.1% of the nation's total steel product outputs with its output growth about 4.9% lower than that of steel products and the output increment of sheet/plate products accounted for 40.1% of total steel product output increment.

6. Output growth of some high-technology steel products, like CRC, silicon steel, galvanized sheets and seamless steel pipe, was higher than average output growth of steel products while that of low end steel products, such as rebar and wire rod, was lower than average output growth.

7. Market prices remained comparatively steady as by the end of December 2006, integrated price index stood at some 105.15 up by 10.97% YoY. Compared with prices in 2005, market prices saw much fewer fluctuations.

8. Chinese steel makers reported high production and marketing rate. By the end of last year, metallurgical industry's production and marketing rate surged to hit some 99.7% and the stock volume stayed at some 12.16 million tons, up11.2% of 1.23 million tons from the stock volume at the beginning of last year.

9. In 2006, China totally exported 43.01 million tons of steel products, up by 109.1% YoY, 9.04 million tons of billets up by 27.9% YoY. At the same time, the nation imported 18.51 million tons of steel products, down 28.3% YoY, 370,000 tons of billets down 71.8% YoY. Thus, the nation posted net exports of 24.5 million tons of steel products and 8.67 million tons of billet equivalent to net exports of 34.73 million tons of crude steel up by 120,000 tonnes YoY.

10. The metallurgical industry realized sales revenue of CNY 3084.6 billion in 2006 up by 21.4% YoY, profits of CNY 170 billion up by 30.6% YoY. Among the total, iron and steel industry's sales revenue and profits climbed up to some CNY 2573.5 billion and CNY 134.8 billion respectively, up 19.7% and 30.6% YoY respectively.

11. Fixed asset investment growth conspicuously dropped. In 2006, the FAI fell down by 2.5% YoY to CNY 224.7 billion.

Problems faced in 2006

1. Obsolete capacity elimination saw slow progress last year. Owing to robust demand in both domestic and international markets, steel product prices obviously rebounded up after Spring Festival with rising sales profits, spurring more capacity released.

2. Though Chinese steel industry's competitive edge continued to be sharpened in international market, China's steel exports skyrocketed up too fast. To a certain extent, China's steel export boom helped to alleviate domestic market pressure and stabilize domestic market; however, it prevented goal of energy saving and consumption reduction from being fulfilled at an early date.

Forecast for 2007

Though global economy is expected to witness slower growth, it will continue to linger on a high level, encouraging healthy development of iron & steel industry. Actually, macro control policies on land using, finance monitoring and industrial access threshold are being improved. Plus upturns on transportation, China's iron & steel industry will continue to go ahead smoothly. As Chinese government will continue to put more macro control policies into practice, China's steel demand will continue to develop with slower growth.

(Sourced from Mysteel.net)

BASF & Voistalpine develop new passivation compound for steel

BASF AG announced that in association with Austria's Voestalpine Stahl GmbH, it has successfully developed a steel passivation compound for use in conversion coatings on galvanized steel. BASF AG said the compound, which is chromium and fluoride free has been launched following successful tests and improves corrosion resistance of unpainted metal surfaces.

The new Lugalvan passivating compound is completely organic and as per reports, BASFs Lugalvan passivating compound has performed successfully in trials in Voestalpines production facilities and in other European and American steelworks. It is reported to have fulfilled the requirements of Voestalpine and its customers for corrosion protection, visual appearance, paint adhesion, workability, welding and surface resistivity.

The Lugalvan passivation compound does not have to be removed in subsequent processes, and it acts as an adhesion promoter. Coatings based on the Lugalvan passivating compound can be applied with the same machinery as conventional anti corrosion coatings.

Mr Martin Fleischanderl head of the project at Voestalpine said We were looking for a non toxic compound that was free of heavy metals and that could be used in conversion coatings and decided to combine our expertise in steel with BASFs chemistry know how to develop this chromium and fluoride free alternative.

Mr Mirjam Herrlich-Loos head of metal surface treatment projects at BASF said We have made a technological breakthrough in terms of quality and environmental protection. In addition to protecting the base metal from corrosion, this passivating compound also forms a self-repairing layer. Previously, this was only possible with chromates.

As per release, cold forming processes can damage the passive layer on the metal surface, but passivation with Lugalvan improves the corrosion resistance of unpainted metal surfaces substantially.

Cleveland-Cliffs inks agreement for investment in Sonoma Coal Project

Cleveland-Cliffs Inc announced that it has entered into a definitive sale and purchase agreement to invest in the Sonoma Coal Project in Queensland in Australia after its board of directors approved the investment in January 2007.

Cleveland-Cliffs Inc has agreed to binding terms with privately owned Australian coal company QCoal Pty Ltd to invest approximately USD 109 million to construct a washplant in which it will have 100% stake and acquire 8.3% mining assets and rights resulting in a 45% economic interest in the project.

Mr Joseph A Carrabba president and CEO of Cleveland-Cliffs said that "Our interest in the Australian Sonoma Project is integral to our strategy of expanding Cliffs' global presence. It diversifies our product offerings and provides Cliffs with another means of participating in the expanding Asian steel markets."

The Sonoma Project is expected initially to produce 2 million tonnes of marketable coal annually, beginning late in 2007 and production will include an approximately equal mix of hard coking coal and thermal coal. The project has a current resource estimate of 107 million tonnes and plans call for annual production to increase to between 3 million and 4 million tonnes during 2008. Perth based Cliffs Asia Pacific business unit will oversee Cleveland Cliffs' interest in the project.

SDI buys 2 metals recycling yards in Tennessee

Steel Dynamics, Inc announced that it has reached an agreement to purchase two privately owned metals recycling facilities in eastern Tennessee. The facilities are Elizabethton Iron & Metal in Elizabethton and Johnson City Iron & Metal in Johnson City. Together, the two scrap yards typically process in excess of 225,000 tons of ferrous scrap per year.

These yards will supply a portion of the ferrous scrap requirements to Steel Dynamics' Roanoke Bar Division at Roanoke in Virginia, as well as to continue to sell ferrous and non ferrous materials on the open market. The Tennessee yards will augment the steel scrap supplied to the Roanoke mill by company owned Shredded Products LLC which operates facilities at Montvale in Virginia and Rocky Mount at Virginia.

After the close of the acquisition of the Tennessee facilities, the four SDI owned yards are expected to supply more than half of the ferrous scrap consumed by the Roanoke Bar Division.

Chinese steel major for stronger alliance with shipbuilders

China's first tier steel producers are actively moving to forge closer ties with shipbuilders to develop service centers to secure market shares and better serve the booming ship building industry. Mr Chen Changyu chairman of China Association of the National Shipbuilding Industry told China Securities Journal that "More top steel producers are extending cooperation with shipbuilders to set up joint ventures for tapping this prosperous market".

Liaoning Province based Anshan Iron & Steel is planning to invest RMB 200 million to construct a shipbuilding base with Qingdao Beihai Shipbuilding Heavy Industry in Qingdao Development Zone.

BaoSteel is planning to enter a second shipbuilding venture with China State Shipbuilding Corporation on Changxing Island near Shanghai. The two firms first linked up in 2001 by investing Shanghai Waigaoqiao Shipbuilding Co where BaoSteel has taken 18.18% share.

China's shipbuilding industry has stepped into a peak era in 2006 and posted a 20% increase to 14.52 million DWT of ships. The annual shipbuilding steel demand stands at 5 million tons and estimated to hit 10.35 million tons by 2010 where roaring shipbuilding demand has brought rare opportunity for domestic plate makers. Industrial analysts note that 21 tonne big Chinese state owned steel mills have produced 6 million tons of shipbuilding plate in 2006 thus registering YoY increase of 33%.

(Sourced from MySteel.net)

Polish Zlomrex to buy Voestalpine Stahlhandel

Budapest Business Journal reported that a major Polish provider of steel and non ferrous metal scrap, Zlomrex has finalized a contract for purchase of nearly 75% of the shares in the Austrian company Voestalpine Stahlhandel for EUR 93 million. According to the terms of the share purchase contract, Zlomrex will be able to buy the remaining 25% stake within the next 2 years. The total cost of the investment will then come to EUR 103 million.

Voestalpine Stahlhandel distributes steel products in Austria, Czech Republic, Croatia, Romania, Slovenia, Hungary, Slovakia and Poland. The group owns 8 warehouses for handling steel products in Austria and is the leader on the local retail market. It generates sales revenues of approximately EUR 400 million.

Mittal Steel SA faces claims over tax & export incentives

South African media has reported that Mittal Steel SA is facing a maximum claim of up to ZAR 100 million from South Africas trade and industry department arising out of a dormant issue of alleged noncompliance with rules of the now defunct General Export Incentive Scheme. As per report, Mittal Steel SA and the department were attempting to settle the matter amicably to avoid the uncertainty that protracted court hearings.

GEIS operated from April 1990 until the end of 1997, when the department of trade and industry, having uncovered massive fraud, terminated the incentive scheme and named its recipients for the first time. Iscor is believed to have been one of the biggest GEIS recipients, benefiting to the tune of about ZAR 875 million from 1992 until 1996.

Mr Tami Didiza spokesman of Mittal Steel SA said that there was nothing sinister about the matter. He said A number of companies are in the same boat. It relates to the GEIS and the non compliance refers to administrative matters. We are close to resolving it.

Another matter relates to a tax dispute with the South African Revenue Service over the tax deductibility of its controversial business assistance agreement with its parent company the Mittal Steel. The group could be liable for a tax payment of more than ZAR 400 million if the matter is not resolved with SARS. Two years ago SARS questioned the tax deductibility of the agreement and disallowed claims for payments made by the group in terms of the assistance agreement for the 2003 financial year and did so again for the 2004 financial year, pushing the amount at risk to ZAR 403 million on the tax deduction claimed on the ZAR 1.34 billion agreement. Mittal Steel SA is trying to settle the matter through SARSs Alternative Dispute Resolution and is awaiting an answer from SARS after a meeting was held in December 2006.

Mitsui takes Hugo Neus stake in Sims Group

Mitsui & Co Ltd has agreed with Hugo Neu Corp to buy its 19.9% stake in Australian recycling giant Sims Group for around USD 500 million. The deal is expected to close at the earliest this May. When the sale is complete Mr John Neu will resign as a director of Sims Group.

Upon completion, Mitsui will be granted substantially similar rights to those previously enjoyed by Hugo Neu. These include the right of Mitsui, subject to Board Nomination Committee consideration, to nominate one director and another independent director to the Board for as long as Mitsui holds at least 15% of the ordinary shares on issue in the company.

Mr Jeremy Sutcliffe CEO of Sims told local media that Mitsui sees the investment as being the cornerstone of its involvement in recycling.

Mitusi statement said that "Mitsui recognizes scrap recycling as the industrial solution to environmental problems and has set recycling business as one of its key businesses in its medium term management outlook.

Gazprom plans to become global energy leader

Russia's energy giant Gazprom is planning to become the world's largest energy company.

Mr Alexander Medvedev GD of Gazprom Export while addressing the 5th All Russian forum on the fuel and energy sector in the 21st century said that "It is not enough for us simply to meet 25% of global gas consumption. We want to become the largest energy company."

Mr Medvedev said Gazprom will diversify its operations to achieve this goal and add oil, oil refining and electric power to its natural gas component. Mr Medvedev said This is an ambitious goal, considering that prices are regulated by the state in Russia. But starting from 2011, a decision has been made to switch to the principle of equal prices and this goal will become easier." Mr Medvedev added that Gazprom's transition to the principle of equal prices from 2011 will facilitate this task.

Gazprom exported 151.5 billion cubic meters of natural gas to 22 countries in 2006, with sales totaling USD 37.2 billion as compared to USD 18.4 billion in 2005. Gazprom's market capitalization grew from USD 9 billion in 2000 to USD 270 billion in 2006.

Metso acquires Bulk Equipment Systems and Technologies

Metso announced the acquisition of Cleveland area based Bulk Equipment Systems and Technologies Inc. As per report the acquisition is for around USD 12 million.

Bulk Equipment Systems and Technologies Inc is a supplier of shredder downstream equipment, as well as process control and optimization technologies in North America.

With the acquisition, Metso Minerals strengthens its position in the North American metal recycling market. Metso expects to use the knowledge base that Bulk Equipment Systems and Technologies has developed to boost its business in North America, as well as Asia and Europe

Tokyo Steel commissions new slab caster for feeding plate mill

It is reported that Tokyo Steel Manufacturing Co Ltd has successfully commissioned a single strand continuous caster of 1.2 million tonnes per annum capacity at its Kyushu Works in mid January 2007.

In order to serve the growing demand for heavy plates, Tokyo Steel decided in 2004 to install a heavy plate mill at its Kyushu works. Siemens Metals Technologies received an order for the supply of a new single strand continuous slab caster in 2005. An electric arc furnace with a tapping weight of 130 tons supplies the caster with liquid steel. Medium thick slabs with a thickness of 150 mm and a width of 1,500 mm to 2,500 mm can be cast at a speed of up to 1.8 meters per minute that are subsequently processed in the heavy plate mill.

The slab caster features a number of technological packages to ensure continuous production and fulfillment of the product quality demands. This includes LevCon for automatic mold level control, DynaWidth for online mold-width adjustment, the MoldExpert system for automatic breakout prediction and strand shell friction monitoring, as well as the DynaFlex mold oscillator for flexible adjustment of the oscillation parameters. The caster bow area and the straightening zone are equipped with low maintenance Smart Segments which enable dynamic roller gap adjustments. The caster is also equipped with the Dynacs secondary cooling system and with the VAI-Q slab quality control system for quality assurance.

Siemens Metals Technologies was responsible for the engineering and supply of the entire slab casting plant. In addition to the mechanical equipment, this also includes the hydraulic, cooling, lubrication, electrical, automation and instrumentation systems.

Tokyo Steel Manufacturing Co Ltd is Japans largest electric arc furnace steelmaker and has three production facilities in Japan.

AISI aims steel campaign at US policy makers

American Iron and Steel Institute, which is spending a total of USD 3.2 million to change Washington DC policy makers' outdated perceptions of US steel industry, has launched the 2nd phase of ad campaign in February 2007.

Ms Nancy Gravatt a spokeswoman for the American Iron and Steel Association said that "We did research last year and found out Washington didn't understand the industry. The industry effort is to do a better job of educating Washington policy makers on the revitalized state of today's steel industry. The more they're aware how it's progressing environmentally, how high tech it is and the significance of steel to national economy, the more they are apt to fashion sound public policy."

Ms Grayatt said that the policy makers need to understand how much steelmakers have poured into their plants in terms of technology, reducing energy needs and state of the art equipment.

Ms Grayatt informed that the first USD 1.2 million advertising and educational campaign The New Steel was launched in June 2006 and continued during the period while Congress was in session until September. She said that Its effectiveness then was measured through telephone surveys and we found we had made some progress. She added that a second USD 2 million campaign, which began in February 2007, is aimed at the same policy makers, plus the new members of the 110th Congress and their staffs.

She also said that the radio and print campaign is supplemented by ads at Washington's Metro stops and in transit cars. The effort, which will continue through April 2007, aims to create awareness of the industry, the issues affecting it and its public policy initiatives. She also added that "The survey's results will show us if we're continuing to make headway in our education process. If not, we'll have to decide the next step."

US Steel arranges USD 1.75 billion credit line

US Steel Corp announced that it entered into a commitment letter with JP Morgan Chase bank and JP Morgan Securities for three senior credit facilities totaling USD 1.75 billion.

According to a US Steel filing with the Securities and Exchange Commission JPMorgan Chase is supplying the full amount of the facilities and is acting as administrative agent.

US Steel announced a USD 2.1 billion deal to buy Lone Star Technologies Inc which makes products to line oil and gas wells and build pipelines. US Steel said at the time it will pay for the purchase through a combination of cash on hand and financing obtained under its existing receivables purchase program and three new fully committed bank credit facilities provided by JP Morgan.

Al Ezz Steel reports 121% YoY surge in 2006 profits

Egypts Al Ezz Steel announced its final results for 2006, recording EGP 995 million in net income on the back of EGP 11.6 billion in operating revenues. Al Ezz had reported EGP 450 million in net income in 2005.

The results are the first consolidated figures released after the Al Ezz strengthened its hold on Al Ezz Dekheila Steel Alexandria in 2006 by raising its share from 21% to 54%.

Al Ezz controls 67% of the local steel market. Since the start of 2007, the company also has announced plans for two manufacturing plants in Egypt and Algeria to fuel a higher growth rate.

Japan steel demand to increase by 0.7% in April to June

Japanese ministry of economy trade and industry announced that Japan steel demand will increase by 0.7% YoY to 26.53 million tonnes in April to June 2007.

The ministry said that the demand represents 29.45 million tonnes of raw steel output, which is 1.7% higher than same period of 2006.

IDB grants EU 19 million loan to Khuzestan Steel

According to a press release issued by the public relations department of Islamic Development Bank, IDB has agreed to allocate EUR 19.3 million to Iranian steel maker Khuzestan Steel Co to enable it to supply the raw materials required for production of steel.

Vostochny Ports 2006 net dips by 3.7 times

AK&M reported that the net profit of Vostochny Port OJSC under RAS decreased 3.7 times to RUB 90.04 million in 2006 from RUB 330.335 million in 2005. Vostochny port handled 16 million tonnes in 2006, that is 4% more then in 2005. The main turnover constituent is export of coal.

Vostochny is the largest port of Russian Far East. It specializes on wood, bulk cargoes, large-capacity containers, coal, and fertilizers. Its annual discharge capacity exceeds 18 million tonnes. The port includes 19 mooring lines with 4.7 kilometer total length. Port's authorized capital stock makes RUB 623.61 million. It is controlled by Kuzbassrazrezugol.

Russias coal production up by 2.9% YoY in 2 months

FIS reported that during January to February 2007, Russias coal production totaled 53.87 million tons, up by 102.9% as compared with January to February 2006.

The report also added that coal production by underground method grew faster than that by open method.