SAIL posts record output for 2006-07

Steel Authority of India Ltd has ended the year 2006-07 with a new record performance with production of over 12.6 million tonnes of saleable steel for the first time in its. SAIL said that about 500,000 tonnes of additional finished steel was produced by utilizing 114% of rated capacity of available facilities without addition of any new major units and by improving operational efficiency.

Substantial growth was recorded in production of value added items during 2006-07. Growth of 13% was achieved in electrical sheets, 55% in pipes, 15% in TMT bars, 9% in plates and 4% in railway materials.

SAIL has also recorded the best ever labor productivity at 200 tonnes per man during the year for as a whole and 268 tonnes for Bhilai Steel Plant.

The captive mines of SAIL met 100% iron ore requirement of the company's steel plants by producing around 25 million tonnes of iron ore during the year.

The financial results of SAIL for 2006-07 will be announced in May 2007.

SAIL board approves USD 2.6 billion expansion for BSP

The board of Steel Authority of India has given in-principle approval for a INR 11,262 crore (USD 2.6 billion) expansion plan that would nearly double capacity at its Bhilai steel plant to 7 million tons a year.

SAIL has appointed MECON as consultants for BSP's expansion plans, which include installation of a large size blast furnace, a 7 meter coke oven battery, a sinter plant and a 4 million tonne capacity steel melting shop. After modernization, BSP Bhilai would phase out the ingot casting route and switch fully to continuous casting to become a 100% continuous casting plant. Orders for the projects are being finalized.

The expansion plan also envisages installation of a universal beam mill of 1 million tonne capacity to produce beams up to 1100mm depth. A new bar and rod mill of 0.9 million tonne capacity will also be added and a new universal rail mill of 1.2 million tonne capacity would also be installed.

SAIL, which plans to raise its total output to 23 million tonnes by 2010 from 14 million tonnes now, produced 12.6 million tonnes of saleable steel during the 2006-07 that ended. SAIL board has already given in principle approval to investment proposals for expanding the crude steel capacity of IISCO Steel Plant to 2.5 million tonne and of Bokaro Steel Plant to 7 million tonne. The capacity of BSP's plate mill will also be expanded to 1.42 million tonne.

JSW Steels Q4 crude steel production up by 20% YoY

JSW Steel Ltd has announced that the Company posted a growth of 20% YoY in Crude Steel production in Q4 for the FY 2006-07. JSW has also recorded highest ever production of Crude Steel of 2.65 million tonnes during the 2006-07.

It has recorded higher production in all product segments except Galvanized products during January to March 2007 quarter. The break up of production is as under:

Volume is in million tonnes

Change is as compared to January to March 2006 quarter

A JSW statement said that The Company could achieve significant growth in volumes even after shut down of one of the furnaces due to accidental fire on February 15th 2007. Repair work of this furnace is progressing quite satisfactorily and it is expected to start operations in the later part of April 2007.

BCCL & SAIL to form coking coal JV from Moonidih mines in Jharkhand

It is reported that Coal India Limiteds coking coal subsidiary Bharat Coking Coal Limited will soon launch a JV with Steel Authority of India Limited for underground mining at Moonidih mines in Jharkhand. The JV initiative for a longwall panel at Moonidih requires an investment of INR 500 crore and the partnership with DEP for a longwall mechanization requiring investment of INR 250 crore

While BCCL has sought the coal ministry's approval to form a special purpose vehicle for underground coal production with SAIL in a 50:50 JV, it is entering into a risk sharing business with DEP with a set target of producing 0.7 million tonne per annum. For the JV with SAIL, BCCL has identified patches near Moonidih with around 50 million tonne of reserves and hopes to produce 2 million per annum from it.

Mr AK Paul CMD of BCCL said We have already identified a patch at Moonidih XV seam and decided to go for an INR 5 billion joint venture project of which SAIL will invest INR 3 billion. The project will shortly be signed between BBCL and SAIL. He added that BCCL will guarantee equipment and production and SAIL will chip in with money.

BCCL was referred to the BIFR in 1995 and the BIFR as a guideline for turnaround gave a road map till 2010-2011. BCCL operates 70 mines with 68 of them in the Jharia Coalfield and two in the Ranigunj Coalfield. It has 36 underground, 12 open cast and 22 mixed mines. Besides these, BCCL operates several coking and non coking coal washeries and various other units.

BCCL's coal production from underground mines has come down to 4.09 million tonne in 2006-07 from 5.47 million tonne in 2005-06. The decline in underground mining has pushed down coking coal production from 4.22 million tonne in 2005-06 to 3.26 million tonne in 2006-07. Production of washed coal declined to 1.66 million tonne in 2006-07 from 2.29 million tonne in 2005-06.

Indias crude steel production up by 10.1% YoY in 11 months

Indian government announced that the production of finished carbon steel during April to February 2007 has registered an increase of 10.1% YoY as compared to the corresponding period last year. The production rose from 40.237 million tonnes to 44.300 million tonnes during the period.

Indias export of the finished carbon steel has also shown an increase of 9.3% during this period rising from 3.934 million tonnes to 4.300 million tonnes.

National Mineral Development Corporation produced 23.79 million tonnes of iron ore during the first 11 months as compared to 20.41 million tonnes during the same period in the previous fiscal, registering a rise of 16% YoY.

BEML & CIL ink agreement for heavy duty tyres with Apollo & JK

It is reported that Bharat heavy Earth Mover Limited has made a 12 year long triangular arrangement with Indian tyre majors Apollo Tyres & JK Tyres and Coal India Limited for ensuring supplies of some of the critical and heavy duty off the road tyres. Mr VRS Natarajan CMD of BEML said that this will ensure timely delivery of OTRs for its trucks at 25% lower costs.

Under the scheme BEML is arranging loans of INR 100 crore from CIL to each to them for setting up facilities for indigenization of these tyres. The initiative will initially focus on tyres for 60 tonne, 85 tonne, 100 tonne vehicles initially and move on to making OTR tyres of even 120 tonne, 150 tonne and 240 tonne caliber.

BEML has to fix its dumpers and mining equipment with these tyres and supplies the vehicles to end users like CIL and other coal companies.

The 'off the road' tyres are crucial for heavy duty mining equipment and are imported and there is a huge capacity crunch with international vendors resulting in global shortage effecting mining operations. Global OTR majors are not even looking at India now because of the global demand spurred by a mining boom and good pricing in particular from Australia and Brazil. The acute shortage has threatened to hit Indias coal mining output.

TATA MD visiting Corus Port Talbot pant in Welsh

Western Mail reported that senior officials from TATA Steel will take a first look at one of their expensively acquired Coruss steel plants in Europe with a visit to Port Talbot.

As per report, Mr B Muthuraman MD of TATA Steel accompanied by Mr Philippe Varin CEO of Corus will look over Port Talbot Abbey works.

Corus employs 3,166 workers at Port Talbot Abbey works, 1,800 Llanwern, 1,000 at Shotton and others at processing works in Wales.

Corus has officially become a subsidiary of TATA Steel earlier this week after its EUR 6.2 billion takeover was finally approved by the High Court almost a month after Corus shareholders voted overwhelmingly in favor of the sale of the former Corus to TATA Steel.

The three mile-long plant employs 3,166 workers. Corus also has 1,800 staff at Llanwern, 1,000 at Shotton and others at processing works in Wales.

India abolishes CVRD and SAD on imports of cement

Indian Government, in its drive to control the prevailing high prices of steel and not achieving increased availability through imports despite removing basic custom duty in January 2007, has now removed countervailing duty as well as special additional duty of customs on import of Portland cement, other than white cement.

Ms Hemambika Priya spokesperson of Central Board of Excise and Customs told media that "Exempting Portland cement from 16% CVD and 4% SAD is likely to make cement imports far more feasible and help ease the supply position. This we hope would help check domestic prices through increased availability.

Ms Priya added that "Even after removing basic customs duty, we were told that it was not economically viable to import cement as countervailing duty and SAD was applicable. So we have removed them now."

Cement manufacturers had increased cement prices by INR 10 to INR 12 per 50 kg bag a day after the Finance Minister Mr P Chidambaram, announced a differential excise duty for cement on February 28th 2007 to rein in cement prices. After sustained pressure from the Government, cement manufacturers, on March 9th 2007 agreed to the hold price line and not increase prices any further for the next one year even if input costs go up. They, however, ruled out any rollback in the recent increase in prices until the government reviewed the differential excise duty imposed in the Budget.

Currently, cement imports into the country are very insignificant in both volume and value terms. But with this 20% price advantage coupled with sever shortage, cement imports may increase substantially.

Orissa Pollution Board orders closure of Veeraj Steel

It is reported that the Orissa Pollution Control Board has served a closure notice for the second time to Veeraj Steel and Energy Limited at Gurupali in Rengali block for violating OPCB guidelines on pollution control by not taking adequate measures to check air pollution. This is the 2nd warning after OPCB had also served closure notices to the company in October 2006 citing similar reasons.

OPCB has asked Mr LN Nayak DC and Mr SD Singh SP of Gurupali to initiate steps to stop production after a special surveillance team of OPCB visited the plant on March 7th and 20th and found irregularities in controlling air pollution. OPCB has also directed the Mahanadi Coalfields Limited to cancel coal linkage.

Mr Surjya Shankar Mishra regional officer of OPCB said the closure notice will be in force till compliance of the anomalies pointed out to the unit.

As per report the bag filters attached to the electro static precipitator meant to check dust emission were reportedly not working causing air pollution in the area. Besides, there was no solid waste management system in the plant and no arrangements were made by the plant authorities for black topping of roads within the factory premises.

As per reports, Veeraj has been producing around 350 tonnes sponge iron per day and generating 8MW electricity from its captive power plant.

SERs freight earnings in 2006-07 up by 23.29%

It is reported that South Eastern Railway, despite having achieved approximately 16% YoY growth in incremental loading, highest among all zonal railways, has missed the 2006-07 originating revenue earning freight traffic target of 100 million tonnes by a whisker.

SER handled originating revenue earning freight traffic of 99.5 million tonnes as compared with 85.9 million tonnes in 2005-06. The originating freight earning during the year too posted a growth of 23.29% YoY at INR 4,906.5 crore as against INR 3,979.52 crore in 2005-06.

The item wise break up is as under

In million tonnes

US Steel, Posco & Seah form spiral welded pipe JV in US

United States Steel Corporation announced that it has entered into a definitive agreement to form a 35:35:30 JV with South Korean POSCO and SeAH Steel Corporation to design, engineer and construct a manufacturing facility capable of producing annually 300,000 net tons of spiral welded tubular products in the 24" to 64" outside diameter range with world class coating capabilities. JV is expected to begin production in 2008.

The JV will be named United Spiral Pipe LLC and will be located adjacent to the USS-POSCO Industries facilities in Pittsburg on the land currently owned by USS-POSCO Industries. The JV investment will be approximately USD 93 million.

Mr John P Surma US Steel Chairman and CEO said "POSCO has been a valued partner at UPI for more than 20 years and we look forward to expanding our relationship with POSCO through this new JV. We also look forward to working with SeAH, whose expertise in producing and marketing spiral welded tubular products will be a valuable asset for the JV.

Through the venture, US Steel said it will gain an entry point into the large-diameter line pipe market in North America, which is experiencing strong demand on construction projects for new natural gas transmission infrastructure.

Smorgon, OneSteel & BlueScope finalize consolidation deal

Australias steel majors Smorgon Steel Group Ltd, OneSteel Limited and BlueScope Steel Limited have announced that the due diligence investigation and contractual negotiations referred to in their joint announcement of 20th March 2007 have been successfully concluded and formal agreements have been executed. In a joint statement, the three companies said due diligence has been completed, allowing the merger of OneSteel Ltd and Smorgon in a deal that will deliver BlueScope the metal distribution business of Smorgon for an enterprise value of AUD 700 million.

The key aspects of agreement which are announced to the market on 20th March 2007 are as follows

1 Smorgon Steel will propose a scheme of arrangement with its shareholders by which OneSteel will acquire all Smorgon Steel shares in return for OneSteel shares and, possibly, some cash, on terms substantially similar to the scheme of arrangement announced on 26th June 2006.
2 BlueScope Steel will undertake to vote in favor of the Scheme.
3 OneSteel will acquire BlueScope Steel's 19.98% stake in Smorgon Steel for a cash price equivalent to the value payable to Smorgon Steel shareholders under the Scheme.
4 BlueScope Steel will acquire Smorgon Steel's metal distribution business for an enterprise value of AUD 700 million.
5 BlueScope Steel will assume the position of acquirer and re supplier of scrap for OneSteel's Sydney Steel Mill, BlueScope Steel and others.
Smorgon Steel shareholders will receive 9 shares in OneSteel for every 22 shares they hold in Smorgon Steel under the Scheme and in addition, Smorgon Steel shareholders will receive a special dividend of 6.23 cents per share which will be paid irrespective of whether the Scheme is implemented.

On 4th April 2007, OneSteel's closing price was AUD 5.27 and if the OneSteel VWAP was equal to AUD 5.27, the value of the Scheme consideration would be AUD 2.16. Smorgon Steel shareholders would therefore receive the Scheme consideration plus the special dividend of 6.23 cents per share. If the Scheme is implemented, Smorgon Steel shareholders will own approximately 34% of OneSteel.

The Scheme is unanimously recommended by the directors of Smorgon Steel, each of whom intends to vote all shares they personally hold in favor of the Scheme. Two Smorgon Steel directors Mr Graham Smorgon and Mr Laurence Cox will join the OneSteel Board of Directors if the Scheme becomes effective.

The proposed transactions are interdependent, cross-conditional and subject to a number of conditions. Both the sale of Smorgon Steel Distribution to BlueScope Steel and the merger of OneSteel and Smorgon Steel via the Scheme are subject to approval by the Australian Competition and Consumer Commission. Submissions will be lodged with the ACCC as soon as practicable. Other relevant conditions applying to the merger and the sale of Smorgon Steel Distribution include:

1. Receipt of satisfactory tax rulings from the Australian Taxation Office
2. Smorgon Steel shareholder approval, Court approval and other regulatory consents
3. Smorgon Steel Scheme of Arrangement becoming effective.

Dutch Klockner & Cos ODS BV takes over Teuling Staal BV

It is reported that the Dutch Klockner & Co subsidiary ODS BV has concluded a contract for the acquisition of the Dutch special steel specialist Teuling Staal BV which specializes in the distribution of high alloy special steels. With this acquisition the Dutch country operation ODS BV with its head office at Barendrecht will further expand its extensive product range.

Special steel specialist Teuling Staal with some 16 employees has its head office at Barendrecht near Rotterdam and has achieved sales of some EUR 14 million in 2006. The companys product portfolio focuses on duplex and super duplex steels which are used for conduit piping in the oil and gas, chemical and petrochemical industries on account of their corrosion resistance.

Dr Thomas Ludwig chairman of the board of management of Klockner & Co AG said that "Teuling Staal fits extremely well into our acquisition plan. The company is very well positioned in its special product niche, and its range of high alloy special steels will outstandingly complement the products offered by our subsidiary in the Netherlands."

Klockner & Co is one of the largest producer independent steel and metal distributors in the European and North American markets combined. About 200,000 active customers are supplied through approximately 240 distribution locations in 14 countries in Europe and North America. The company achieved sales of approximately EUR 5.5 billion with around 10,000 employees.

NLMKs net profit in 2006 as per RAS up by 43.6% YoY

Novolipetsk Steel announced that its net profit, as per Russian Accounting Standards, has increased by 43.6% YoY in 2006 to RUB 50.51 billion (USD 1.9 billion). Its sales up by 17.7% YoY in the reporting period to RUB 140.3 billion (USD 5.4 billion) and gross profit was up 28.8% YoY to RUB 65.35 billion (USD 2.5 billion). It has also increased steel output in 2006 by 7.8% YoY to 9.13 million tonnes.

NLMKs results improved due to price increases and growth of sales volumes NLMKs sales revenue, gross profit and net income increased in 2006 compared to 2005 due mainly to a strong pricing environment and growth in production and sales volumes. NLMK said that its net profit rise is attributable to the sale of its stakes in the Lebedinsky Ore Mining and Processing Plant and the KMAruda mining company in the Belgorod Region on the Ukrainian border which yielded about RUB 12.8 billion (USD 492 million).

The unit wise revenue and net profit for 2006 is as under

Revenue & Net Profit in RUB billion
Change id YoY as compared with 2006

Indicated companies of the Group include

1. OJSC Novolipetsk Steel (NLMK)
2. LLC VIZ-Stal
3. OJSC Stoilensky GOK
4. OJSC Altai-koks
5. OJSC Lipetskcombank
6. OJSC Stagdok
7. OJSC Dolomite
8. OJSC TMTP
9. OJSC NTK

VIZ-Stal became part of NLMKs Group since August 2006 and Altai-koks became part of NLMKs Group since April 2006.

EU warns China to curb expansion of steel and shipbuilding sectors

It is reported that EU, during a round of high level meetings in Beijing, has warned China that it would face a growing threat of trade penalties unless it curbed its capacity expansion in steel and shipbuilding.

Mr Gunter Verheugen industry commissioner of EU said feelings were running high over the two sectors because steel was an important industry in nearly all of the 27 EU member states and because the EU's own shipbuilding industry had just been through a painful round of consolidation. Mr Verheugen said "We have discussed certain areas like shipbuilding and steel where there is a mutual interest to avoid overcapacity.that is very important.

Mr Verheugen however expressed confidence that the round of EU & China industrial policy talks would allow the EU to benefit from economic development in China without interference and intervention. Mr Verheugen told reporters he regarded growing competition from China not as a threat, but rather as an opportunity for EU industry to raise its game and become more innovative.

He said the number of antidumping cases brought against China was minuscule compared with its exports to the EU where a protectionist attitude towards China will not develop."

According to the European Confederation of Iron and Steel Industries Chinas steel product exports to Europe jumped to more than 5 million tons in 2006 form less than 400,000 tons in 2005 and reached 1 million tons this January 2007 alone.

Severstals Karelsky Okatysh begins iron ore mining at Korpanga

Severstals Karelsky Okatysh JSC announced that it has begun to evacuate and process iron ore at its new Korpanga deposit which has reserves estimated at 320 million tonnes.

Korpanga is located 5 kilometres north of its current core mineral base Kostomuksha and features better ore in terms of recovery ratios. The Korpanga deposit was discovered in 1952 with geological exploration started in 1970 and a detailed survey completed in 1981. Following a competitive tender, Karelsky Okatysh was granted the right to develop Korpanga in July 2001 by the Natural Resources Ministry of the Russian Federation and the Government of the Karelian Republic. The license is valid for 20 years.

Over the last 4 years, Karelsky Okatysh has invested some USD 54 million in the new operations. This year the company will invest USD10 million with a further USD 38 million expected to be invested before 2013. Up to 3 million tonnes of ore will be processed by the end of 2007 with future annual capacity likely to increase to up to 10 million tonnes. The infrastructure required at the site of the deposit includes 20 kilometres of roads and railway lines which link the new deposit to the concentration plant to supply the plant with ore for the production of iron ore concentrate and iron ore pellets.

Mr Victor Vasin GD of Karelsky Okatysh said "The start of ore extraction at Korpanga means that we are able to maintain and even increase our overall current rates of production at a time when the output from our existing mine at Kostomuksha is actually in decline. 28 million tonnes of ore will require the evacuation of 40 million and will allow us to increase the production and sales of pellets up to 10 million tonnes.

China to abolish export rebate on zinc

Shanghai Securities News citing sources from China Non-ferrous Metals Industry Association reported that China is planning to scrap the export tax rebate on zinc that is over 99.995% pure as China's zinc consumption this year is expected to increase by about 10% over 3.4 million tonnes in 2006.

Mr Zhou Guobao, director of the lead and zinc division at the China Non-ferrous Metals Industry Association, was quoted by Shanghai Securities News as saying that plans are afoot to remove the 5% export tax rebate on zinc over 99.995% pure. Mr Zhou said that the proposal is subject to approval by the State Council, but did not elaborate when it will be implemented.

Ms Feng Juncong an analyst with Antaike Information Development Co Ltd said that Zinc exports surpassed imports for the first time in October 2006 as a consequence of the price difference between domestic and overseas markets. She said that zinc imports and exports will fluctuate over the next few months but China will still remain a net zinc importer in 2007. Ms Feng said that High raw material prices led to frenzied zinc mine investments by major zinc companies in 2006 Zinc smelters also expanded their production last year.

A statement from the National Development and Reform Commission last month said that "Small and outdated zinc mining capacity will be gradually phased out this year in accordance with the government's control policies New lead and zinc mines will be blocked if their annual capacity is under 30,000 tonnes and the service period is less than 15 years.

Foundation Coal miners strike at Wabash, Cumberland and Emerald

It is reported that about 1,200 miners went on strike at Foundation Coal Holdings Incs 3 mines in Pennsylvania and Illinois states of US. The labor agreements at all the three mines at Wabash, Cumberland and Emerald expired recently.

Mr Cecil Roberts UMWA International President said that the union filed unfair labor practice charges against Foundation on Monday and talks resumed Tuesday but a new agreement was not reached by Wednesdays 12:01 AM strike deadline.

Mr Phil Smith United Mine Workers of America spokesman said that about 250 workers at the Wabash Mine at Keensburg in Illinois and more than 900 at the Cumberland and Emerald mines near Waynesburg in Pennsylvania went on strike.

Foundation Coal has argued that workers at the three mines should not be covered by a national contract the company worked out with the United Mine Workers in December. Mr Peter Vietti company spokesman said that The 3 mines have different logistical needs that an across the board agreement would not address.

NDRC upbeat about China's steel industry prospects

National Development & Reform Committee said China's steel industry has stepped into a prime era.

National Statistics Bureau also announced that Chinese steelmakers have posted more than threefold profit increase in 2006 outperforming the average profit growth in other sectors significantly. CISA data shows that China's steel industry profit has hit a new high at CNY 169.95 billion in 2006 up by 30% from 2005.

NDRC said in the report that China's steel output breaks 400 million tons for the first time in 2006 a YoY increase of 18.05%.and exported 43 million tons of finished products up by 109.58% from 2006 while steel import falls 28.3% to 18.51 million tons and its 2006 net export converted to 34.73 million tons of crude steel.

Most steel varieties have shown notable price uptrend in January of this construction steel, HRC and medium plate have risen over 4%. Meanwhile, export maintains strong growth momentum, with net export of finished products soared 10.6 times to 2.9 million tons in January.

NDRC predicts that forthcoming construction peak season is set to stimulate domestic steel consumption in following months of this year.

(Sourced From.MySteel.net)

Indian iron ore spot price firm after export tax

Spot iron ore price keeps at a high level and transactions remain weak since Chinese importers boycotted India's export tariff on iron ore. In spot market FOB price has climbed from USD 62 per ton in late February to current USD 70 per ton. CIF price also increased to nearly USD 94 per ton in view of rising ocean freight rate.

Though domestic traders have not accepted mass resources, circulation resources keep sufficient. Up to now Indian ore inventory at China's ports stands at 8.5 million tons.

Mr P Chidambaram India's finance minister during the inauguration ceremony of Shenzhen branch of Bank of India said that he would defend the levy bill to protect rare natural resources for India's own steel industry and increase the country's financial revenue. As per reports, the levy is unlikely to be removed, which means, price for spot imported iron ore will maintain on a high track in the future.

(Sourced from Mysteel.net)

Strike continues at Iron Ore Company in Labrador

CBC News reported that negotiations between the Iron Ore Company of Canada and its striking Labrador employees have broken off. Pay, benefits and contracting out have been key issues in the dispute. The strike in its fourth week and strikers say morale has not been hurt but finances are getting tight.

Mr George Kean president of the United Steelworkers local at the Labrador City mine said the company walked away from talks late Tuesday afternoon. He said that IOC talks have broken and nearly 1,000 workers have been off the job since March 9th 2007.

Before talks broke off Mr Art Huxter financial secretary for the Steelworkers local, told CBC News that there had been some progress at the bargaining table. He said major issues such as seniority and wages were still outstanding.

Rio Tinto owned Iron Ore Company of Canadas Labrador City mine is Canada's largest producer of iron ore pellets and iron ore mined there is exported worldwide to steel manufacturers.

Chengde orders for automation system for its new HSM

Chinese Chengde Iron and Steel Group has placed an ordered with Siemens Industrial Solutions and Services Groups Metals Technologies to supply the automation system for a new hot strip mill in Chengde. The order volume amounts to around EUR 9 million. Commissioning of the new rolling mill is scheduled for April 2008 and the first strip is to be rolled in June 2008.

The new hot rolling mill to be installed is designed for the production of high quality steel strip in widths up to 1700 millimeters and will produce more than 4 million tonnes of hot strip per year upon completion.

The order includes all of the basic and process automation as well as the visualization system for the reversing roughing stand with hydraulic edger, a coil box, the 7 stand finishing mill with work roll shifting and bending systems, the laminar flow cooling line, two coilers and the coil conveyor. The technological control systems as well as the process models for the individual sections of the rolling mill are also part of the scope of supply. Integrated HMI systems with process and plant diagnostic functions will facilitate operation of the equipment and machinery.

USs raw steel production in last week down by 7.9% YoY

American Iron & Steel Industries reported that in the week ending March 31st 2007 USs raw steel production was 2.031 net tonnes while the capability utilization rate was 86.9%. Production was 2.206 million tonnes in the week ending March 31st 2006 while the capability utilization then was 92.8%. The current week production represents 7.9% decrease from the same period in 2006.

Production for the week ending March 31st 2007 is up by 1.2 % from the previous week ending March 24th 2007 when production was 2.006 tonnes and the rate of capability utilization was 85.9%.

Adjusted YTD production through March 31st 2007 was 25.360 million tonnes at a capability utilization rate of 83.4%. That is a 7.6% decrease from the 27.461 tonnes during the same period 2006 when the capability utilization rate was 89.1%.

AISIs estimate is based on reports from companies representing about 75% of the USs raw steel capability and includes revisions for previous months.

Louisiana opting out of the race for ThyssenKrupps plant Report

It is reported that Louisiana's final offer in the competition for a USD 2.9 billion steel plant fell below the expectations of German steel manufacturer ThyssenKrupp. Louisiana officials made their final bid for the plant in writing after several days of negotiations with ThyssenKrupp officials in New York.

Mr Mike Olivier economic development secretary of Louisiana told a house committee reviewing his budget for the upcoming fiscal year that "It was not what they asked for. We felt it was too rich for us to compete on that level. Our position is less than what their expectations were. It is a very expensive project and I don't know that any state could meet that expectation." He did not provide details about what ThyssenKrupp sought or what Louisiana offered.

On the other hand, Mr Jeff Emerson spokesperson of Mr Bob Riley governor of Alabama said that talks with ThyssenKrupp officials are continuing and the state has a policy of not commenting about ongoing economic development projects. Mr Neal Wade Alabama's chief industrial recruiter and Alabama Development Office Director said that "Our negotiations with ThyssenKrupp have been nothing but positive, and because we have signed a confidentiality agreement with the company and we're not going to discuss our incentive package publicly."

ThyssenKrupp is deciding between a location in St. James Parish along the Mississippi River between Baton Rouge and New Orleans in Louisiana and a site near Mobile in Alabama. A decision from the company about where it will locate its new steel mill is expected before mid May. The plant is expected to begin operation in 2010. The competition between Alabama and Louisiana has been intense to lure ThyssenKrupp to there respective states.

PT Timah estimates 2007 refined tin output 45,000 tons

Antara reported that PT Timah expects its refined tin output to rise only very slightly to 45,000 tons in 2007 as compared to 44,689 tons in 2006. Mr R Sukhyar commissioner of PT Timah told reporter that "I think this year's output will be around 45,000 tons or almost the same as last year's."

Mr Sukhyar said to support the price of tin, which he predicts will stay at USD 13,000 per ton this year, Timah is not going to raise its output of the metal.

The price of tin has gone up sharply since the fourth quarter of last year amid tight supply following the closure of a number of illegal smelters in the Indonesian province of Bangka-Belitung.

Timah also cited a report by the Commodity Research Unit, which estimates supply deficit of about 30,700 tons of tin in 2007.

Mr Saariaho appointed deputy secretary general of IISI

The International Iron and Steel Institute announced the appointment of Mr Mika Saariaho as new Deputy Secretary General of IISI. Mr Saariaho will take up his appointment on 11 June 2007

Mr Saariaho holds a Doctorate of Science in Technology from Helsinki University of Technology. He joins IISI from Outokumpu Oyj where he is currently senior VP of Corporate Strategy and Planning.

Mr Ian Christmas Secretary General of IISI said that I am delighted that Mika has decided to join IISI and wish him success with his new responsibilities.

S&P puts Corus & TATA ratings on CreditWatch

Standard & Poor's Ratings Services said it has kept its 'BB' long-term corporate credit rating on Corus Group PLC on CreditWatch with developing implications with the completion of the GBP 6.2 billion takeover of the company by TATA Steel. The ratings agency said that its 'BB+' debt rating on Corus EUR' 700 million senior secured bank loan and the 'BB-' on the company's unsecured debt also remain on CreditWatch with developing implications, while its 'B' short-term corporate credit rating remains on CreditWatch with positive implications.

S&P said the CreditWatch status continues to reflect ongoing uncertainty regarding the long term financial structure of the transaction and its implications for Corus.The debt burden of the combined entity is likely to increase following completion of the transaction, implying lower ability and incentives for TATA Steel to support Corus. S&P said the materially increased acquisition price has reduced the upside potential for the ratings on Corus. However, S&P said if Tata Steel will provide financial support to Corus, the ratings on Corus could be raised. It added that integration with Tata Steel's low-cost operations might benefit Corus' weak business profile in the medium term.

Standard & Poor's Ratings Services said TATA Steel's 'BBB' long-term corporate credit rating remains on CreditWatch with negative implications, following the completion of its takeover of Corus Group PLC.Where the 'BBB' debt rating on the Indian steel maker's senior unsecured bank loans of EUR 750 million and USD 500 million also remain on CreditWatch with negative implications. Mr Anshukant Taneja S&P analyst said the status reflects ongoing uncertainty regarding the long-term financial structure of the transaction and its implications on the merged entity, potentially raising greater financing challenges for Tata Steel and further downward pressure on its rating.

US manufacturing sector stagnates but EU remains resilient

It is reported that two key indicators of the state of manufacturing on either side of the Atlantic showed continued stagnation in the US and resilience in the euro zone.

The ISMs monthly survey of the US manufacturing sector generated a headline reading of 50.9 in March 2007 down from 52.3 in February 2007 and barely above the key 50 contraction growth level. The index has been in a relatively narrow band between 49.3 and 52.7 over the last seven months, indicating only anemic growth in the US manufacturing sector.

The most positive element of the report was the fact that the inventory component of the index remained below 50 at 47.5, which suggests that companies are still cutting inventories. Mr Norbert Ore chairman of the institutes monthly survey said that this and a judgment that customer inventories are now too low suggested that manufacturing inventories are nearing satisfactory levels.

Slowing US economic growth has also cast a shadow on manufacturing in the euro zone. Here the monthly purchasing managers index for manufacturing generated a headline reading of 55.4, down from 55.6 in February and the lowest in over a year, although crucially it is still some way above the 50 threshold suggesting solid underlying growth.

Depressing factors were the level of exports and less than exciting domestic demand in Germany after that countrys hike in its VAT rate at the start of the year. However, the impact of slower US demand for euro zone products is still muted and suggests there will be no imminent collapse

South Korean shipbuilders secure large orders in first quarter

According to a South Korea shipbuilder industry sources South Korean shipbuilders racked up large overseas orders in the first quarter of 2007 on continued demand for oil tankers and liquefied natural gas ships leaving them on course to exceed their yearly targets.

As per report, worlds largest shipbuilder, Hyundai Heavy Industries Co clinched orders worth USD 2.4 billion in the January to March 2007 as compared with its full year target of USD 9.2 billion.