SAIL set to increase finished products share to 95% in DSP

The Telegraph reported that Steel Authority of India Limited, which is planning to invest INR 5,549 crore to upgrade the facilities of its Durgapur Steel Plant, aims to raise the share of finished products in the total output to 95% from 45%.

Mr SK Roongta chairman of SAIL told The Telegraph that “Durgapur had for long been the production base for semis which others used to buy and add value. We now plan to change that story. 95% of its production will be finished products. This will not only add to the top line but also to the bottom line significantly.”

Currently, Durgapur Steel Plant makes 1.58 million tonnes of saleable steel, of which 0.861 million tonnes are semis that are sold to other steel makers for re rolling into finished products. Mr Roongta said “We want to reduce the output of semis even as we take our output to 2.83 million tonnes of saleable steel and 3.5 million tonnes of hot metal.”

As per report, SAIL plans to install a medium structural mill, wire rod mill and a merchant mill. This will take the output of structurals to 1.25 million tonnes and merchant products to 1million tonnes. The capacity of the wheel and axle plant will also be raised to 0.25 million tonnes of wheels a year from 58,000 tonnes and axles output will go up to 50,000 units a year.

Indian steel production to cross 200 million tonne in 2020

UNI reported that Mr Ram Vilas Paswan union minister for steel, fertilizers & chemicals while talking to reporters in Chennai retreated that Indian steel production would cross 200 million tonne in 2020.

Mr Paswan said the production is expected to touch 80 million tonne in another three years.

Mr Paswan expressing satisfaction and happiness over the progress of the steel sector in the country said that "There is immense capacity for growth in steel sector and the National Steel Policy launched in November 2005 is aimed at increasing both production and consumption of steel in the country."

Orissa asks ArcelorMittal to reduce land requirement

TNN reported that Orissa government has asked the ArcelorMittal to reassess the land requirement for its proposed Greenfield steel project in Keonjhar district.

ArcelorMittal has sought more than 8,000 acres in Keonjhar district's Patna tehsil for its proposed 12 million tonne per annum steel mill, captive power plant and civil township. But, according to sources, the land projection could be exaggerated and needs to be reassessed.

As per state government officials, company representatives have begun a joint exercise to get a fresh estimate of the land requirement for the R project.

The report cited an official of Orissa government as saying that "We have been discussing land acquisition issues, but we have not applied ourselves much to the land assessment part. It is important to know the exact land needs for a project before going ahead with acquisition."

Orissa government is facing serious hurdles in the issue of lands required for setting up plants in the state and is resorting to minimize the land requirements. As per reports, Vedanta has already scaled down its land needs by about 1,800 acres from the originally estimated 8,000 acres for its proposed mega INR 15,000-crore university in Puri and POSC has reduced its land needs by around 1,000 acre for its proposed steel facility at Paradip.

EZTM qualifies for RINL seamless tube mill

Russian steel plant equipment maker JSC Elektrostal Heavy Engineering Work informed that its unconditional price bid for seamless tube mill tender under the on going expansion program of Rashtriya Ispat Nigam Limited to 6.3 million tonne per annum was opened by a tender committee of RINL’s Visakhapatnam Steel Plant on August 2nd 2007 and EZTM, along with consortium members, became only the bidder, who was technically & commercially qualified.

The release added that a team of representatives of the consortium led by EZTM is planning to start price negotiations with the tender committee during this week for earlier signing the contract & commencement of the work as per construction schedule.

As per design & requirement of RINL, the mill should have annual capacity of a 300,000 tonnes of seamless tubes with the diameter 139.7mm to 355.6 mm and wall thickness 6.2mm to 37.7 mm as per API and ASTM standards.

JSC EZTM is one of the largest enterprises of Russian heavy industry since 1942. The company specializes in production of metallurgical equipment. It designs, produces and supplies complex equipment for tube rolling and tube welding plants, equipment for tube finishing and coating, cold rolling tube mills, small section, medium section and wire mills, part and ball rolling mills and other special mills, oil film bearings, steel rolls for cold and hot rolling mills and spare part for the manufactured equipment.

RINL studying integrated transport network to cut logistic costs

BL reported that Rashtriya Ispat Nigam Limited is examining if an integrated transport network comprising of rail, road and barge movement along the coast, could be worked out as a means to cost effective evacuation of its finished products. Although, RINL is still to work out the ideal mix of different modes of transportation system, much would depend on how the scenario would evolve in the coming years. For certain shorter routes, the road mode, despite the cost, might still be preferable. In both rail and coastal movements, the economies could be obtained only over long leads.

As per report, RINL will shortly invite bids from the barge operators along the coast for transportation of an estimated 0.2 million tonnes to 0.25 million tonnes of finished goods annually to the west coast, particularly Kandla port, for catering to the markets in Gujarat, Rajasthan, parts of Maharashtra and Madhya Pradesh. The scope of barge movement of about 0.2 million tonnes of products annually to Chennai and another 80,000 tonnes to Kochi too is being explored.

Earlier, RINL on an experimental basis has dispatched about 1,000 of long products from Visakhapatnam to Kolkata by the coastal route. RINL source said that “The experiment did not prove to be highly cost effective. First the shipment was in containers and then there were various other issues.”

Right now 65% of RINL’s saleable steel production of 3.3 million tonnes is dispatched by rail and the balance by road. The saleable steel production by 2009 is expected to rise to 5.7 million tonnes however, RINL authorities are not sure if the railways, already suffering from capacity constraints, would still be able to hold on to its present share of 65% on the increased production. What causes concern particularly is that more than 95% of the raw materials used by RINL or for that any steel plant is transported into the plant by rail.

DavyMarkham assembling Essar’s plate mill stands

It is reported that UK based heavy machining and fabricating company DavyMarkham has secured an order for 4 finish machined housings and a set of top and bottom connecting beams, together weighing over 1050 tonnes, for a 5 meter wide 1.5 million tonne per annum plate rolling stand for Essar Steel’s Hazira Plate Limited project in Gujarat.

The Hazira Plate Limited plate mill stand is virtually identical in size and specification to an earlier order delivered by DavyMarkham to the Shagang Steel in China. It consists of four 15 meter high steel legs and four 6 meter wide interconnecting top and bottom tie beams, which will be bolted together on site using 300 mm diameter Superbolts, to ensure that the tremendous clamping forces required are precisely achieved. The plate mill itself will have a maximum rolling load of 10,000 tonnes and produce finished plate in widths up to 4900mm, between 5mm and 150mm thickness.

Siemens VAI and its French subsidiary, VAI Clecim, main technology partner for the new plate mill plant, supplied Hazira Plate Limited with CAD CAM data. Sheffield Forgemasters produced the four leg castings, each weighing around 180 tonnes, although it did not have the capacity to cast the tie beams within the tight timescales required; instead, these 90 tonne castings were sourced from Skoda’s plant in Pilzen and shipped to the UK. All castings were NDT inspected, as part of Siemens VAI’s staged quality monitoring process, then finish machined at DavyMarkham’s massive Darnall Works, employing its largest mill and boring machinery. Extremely tight geometric and parallel tolerances necessitated accurate machining, employing the latest CNC technology and highly skilled operators.

As part of the pre shipment proving process, the contract requires vertical test assembly of the mill stand housings, employing dummy M72 studs, nuts and locators, together with other free issue equipment supplied by the customer. This will involve craning the 15 meter legs into a 4 meter deep assembly pit, to accommodate the finished height of 17 meter, raising each to the vertical, then securing them to the top and bottom tie beams, using the temporary bolts, then fitting ancillary equipment like roll change rails, balance cylinders, bending blocks and screw-down gear.

The contract is currently on schedule and upon completion the individual components will be painted to customer specification and packed in seaworthy materials, for dispatch to India via Humberside.

TATA Power to buy turbines for Mundra UMPP from Toshiba

TATA Power Company Limited announced that it has signed an EPC contract for supply of five 800 MW steam turbine generators with Toshiba Corporation for its 4000 MW Mundra Ultra Mega Power Project.

Toshiba Corporation's scope of work includes the design, manufacture, test and supply of equipment related to the Steam Turbine Generator packages for the five units of 800 MW each. They will also be associated with supervision of commissioning of the turbines.

Mr Prasad R Menon MD of TATA Power said "This agreement is a significant step towards our drawing on the technical expertise of a strong international player like Toshiba. This partnership will provide an excellent technical solution for Mundra UMPP which is also cost competitive."

TATA Power had earlier announced the signing of a contract for complete Boiler Island scope on EPC basis with Doosan Heavy Industries & Construction Co Ltd of South Korea. The contract for complete Boiler Island includes super critical boilers for the 5 units of 800 MW each, based on super critical technology required for such large sized units.

Indian Railways freight earnings in Aril to July up by 9.5% YoY

Indian Railways has posted freight earnings of INR 14,593.02 crore during April to July 2007 period up by 9.49% YoY as compared to INR 13,328.01 crore for April to July 2006 period.

According to an official statement, the total approximate earning of Indian Railways during April to July 2007 is INR 21,787.89 crore up by 10.49% YoY as against INR 19,718.67 crore during April to July 2006 period. The total passenger revenue is INR 6,331.14 crore up by 11.51% YoY as against INR 5,677.59 crore.

The revenues from other coaching amounted to INR 611.88 crore during April to July 2007 up by 17.42% YoY as against INR 521.12 crore in April to July 2006. Meanwhile, the sundry earnings have gone up to INR 251.85 crore up by 31.21% YoY.

NTPC secures Chhati Bariatu coal block rights

It is reported that National Thermal Power Corporation Limited has secured government approval for a new coal block at Chhati Bariatu South in Jharkhand with share of reserves at 354 million tonnes.

Elecon secures CHP order from DVC for Mejia power plant

It is reported that Elecon Engineering Company Limited has secured a largest order for integrated coal handling plant in India worth INR 379 crores from Damodar Valley Corporation for their Mejia Thermal Power Station Phase-II 2x500MW for design, engineering, manufacture, supply, erection, testing and commissioning of coal handling plant. The project completion schedule is 26 months effective from July 27th 2007.

Under the order received by the Material Handling Equipments division, Elecon would supply coal unloading through track hopper, crushing and screening system, storage facilities and associated conveyor system handling coal at 1250 tonnes per hour capacity. The major equipments include 2 stacker reclaimers, 4 paddle feeders, 4 crushers, 4 screens and 27 conveyors.

Elecon has also received an order from Chettinad International Coal Terminal Private Limited worth INR 20 crore for design, engineering, manufacture and supply of 2 stacker reclaimers to handle coal at Chettinad International Coal Terminal Private Limited coal terminal at Ennore port and an order from Chennai based The India Cements Limited worth INR 9.70 crore for supply of 2 wagon tipplers for their clinker grinding units.

Mr Prayasvin Patel CMD of Elecon Engineering said “Elecon has recently announced excellent performance for Q1 due to a combination of factors like buoyant economy, high technology products backed by efficient service and aggressive marketing efforts of our entire team both in the domestic and in the International markets. We are delighted to have procured prestigious orders worth INR 378.50 crore from Damodar Valley Corporation, INR 20 crore from Chettinad International Coal Terminal Private Limited and INR 9.70 crore from The India Cements Limited.”

NLC and CCL to form JV for power plant in Jharkhand

It is reported that Neyveli Lignite Corporation will soon float a JV with Coal India Limited’s subsidiary Central Coalfields Limited for a 1,000MW coal fired power station at a cost of INR 5,000 crore. Work on the proposed project is expected to start by the end of 2008. The JV will throw open new vistas for Central Coalfields Limited to diversify into activities from traditional coal mining to power generation.”

A technical team from Neyveli Lignite will visit the site shortly to assess land requirement and will approach the state government. Neyveli Lignite would also approach the state government for arranging water resources for the proposed power plant.

Mr RP Ritolia CMD of Central Coalfields Limited said that “The proposed power project will come up in the North Karanpura coalfield near Tandwa in the Chatra district of Jharkhand.

It is reported that coal from Central Coalfields Limited’s Magadh open cast mine would be linked to the proposed JV for power generation and would also be made available for the JV only after meeting requirements of National Thermal Power Corporation’s super thermal power station in Tandwa. The project would require about 5 million tonnes of coal per annum.

Lanco Industries resumes its BF operation

Lanco Industries Limited, with reference to the earlier announcement on July 17th 2007, recently announced that it has resumed its mini blast furnace plant operations on August 4th 2007 after relining.

UP and BHEL join to set up 1600 MW plant at Obra

BS reported that the Uttar Pradesh government has firmed up a deal with Bharat Heavy Electricals Limited for setting a 1,600 MW thermal power project at Obra in UP. The new thermal plant, called Obra C, will have two units of 800 MW each. The cost of the project is estimated to be INR 6,400 crore. The project is scheduled to be completed in 36 months from the date of the award of the contract.

As per report, BHEL has given in principle approval for 50% equity participation in the project and the rest of the cost would be borne by the state government. UP’s Energy Task Force headed by the chief secretary has approved the project and it will soon be placed before the cabinet. The UP Thermal Power Generation Corporation has already obtained coal linkage for the new plant, which will be supplied from mines located in Jharkhand.

Originally the Obra C project was conceived for 1,000 MW with two units of 500 MW each. On the suggestion of the BHEL UP government agreed for the increase in capacity to 1,600 MW. The original cost of the project was estimated to be INR 5,000 crore of which state government was to bear 30% and the rest was proposed to be mobilized from the financial institutions backed by government guarantee.

The Obra thermal plant, located in Sonbhadra district, has installed capacity of 1,442 MW, but most of the machines were obsolete as they were over 25 years old. The project for the renovation and modernization of five units of 50 MW each and five units of 200 MW each is under way.

Steel Strips & Tubes to change name to Steel Strips Infrastructure

Steel Strips & Tubes Limited announced that its board of directors vide a resolution dated August 6th 2007 approved the proposal for change of name from "Steel Strips & Tubes Ltd" to "Steel Strips Infrastructures Ltd", subject to the approval of central government, appropriate authorities and share holders of the company.

The release added that it is moving to make an application to the Registrar of Companies at Jalandhar for the availability of proposed name.

SCI to raise USD 2 billion through ECBs

It is reported that Shipping Corporation of India plans to raise USD 2 billion through external commercial borrowing over the next five years for funding its vessel acquisition plans. Mr BK Mandal director finance of SCI at a conference said “Over the next five years, we are likely to raise about USD 2 billion through ECBs.”

However, these fund raising requirements are likely to come up next year onwards since the initial payments would be serviced through internal accruals of SCI.

SCI plans to invest about USD 3 billion to add 4 million DWT during the Eleventh Plan, which started from April 1st 2007.

SCI has signed a contract with the South Korean Hyundai Heavy Industries for acquiring 4 Aframax crude oil tankers and 2 long range-II size product tankers. The total value of these 6 vessels is USD 426.64 million. These vessels would be delivered during 2010-11. These orders are a part of the block acquisition of 12 vessels for which SCI had received a cabinet approval recently. Two other projects of the block are 4 Panamax bulk carriers and two 5,000 TEU container vessels.

Chinese steel export in July point for further restrictions

According to latest Chinese customs data, China exported 5.94 million tonnes of steel products in July 2007 up by 66% YoY or down by 420,000 tonnes from June 2007. While accumulative export volume through July 2007 came to 39.7 million tonnes up by 92.2% YoY.

Based on the previous curbs and their execution time, the market had predicted July and August 2007 as a transitional period to view the anticipated efficacy and it's widely held the export volume could drop considerably this period. In this case, some analysts said that July's huge export close to 6 million tonnes is out of inertia of previous prosperity and believe that export would come down in August 2007.

Mr Jia Liangqun chief analyst at Mysteel said that such export vigor is beyond expectation and possibly push the government to bring forth new restrictive policy.

Mr Jia said that "In fact, the market has somewhat changed in July but such a huge export can show strong immunity of the market to macro control. But given July figure, it's easy to imagine August may not come lower as the environment is generally better in later period. Even if the export declines in August, it is soon to bounce back." He added that the high perched export figure against a series of curbing policies could reflect very strong exporting momentum due both to external demand and internal zeal.

Mr Jia further added that "The Chinese government will take some time to observe, while July's figure should arouse wide concern from the market and may close watch following progress. We can not exclude the possibility that it may study new curb policy."

CSC to acquire 15% stake in Sumitomo Thai Sumilox Co

Sumitomo Metal Industries Limited has announced an agreement that will see China Steel Global Trading Corporation a key company in Taiwan’s China Steel Corporation Group acquires 15% of shares in Thai Sumilox Company Limited a Sumitomo Metals subsidiary on August 31st 2007.

The pattern of shareholding would be as under

Thai Sumilox Co Ltd is located at Ayutthaya in the Kingdom of Thailand with sales of THB 1.4 billion in 2006 with 114 employees for electrical steel processing and sales. Thai Sumilox Company Limited is a Sumitomo Metals' electromagnetic steel processing and sales center in Thailand where many Japanese home appliance and machinery companies operate manufacturing facilities. Since 1990, Thai Sumilox Company Limited has built up a strong reputation as a provider of coil slitting and punching services to these Japanese customers. Thai Sumilox Company Limited has already expanded its steel punching capacity adding a new press machine in 2006.

This cooperation will enable the China Steel Corporation Group to acquire a new processing and sales bridgehead in Thailand. China Steel Corporation Group's capital participation will enable Thai Sumilox Company Limited to cope with customers' growing demand for electromagnetic steel in Southeast Asia.

Meanwhile, Sumitomo Metals is considering investment in the China Steel Corporation Group's coil center business in Vietnam specifically China Steel Global Trading plans to establish a steel processing center in the country. Sumitomo Metals is considering the possibility of teaming up with China Steel Global Trading in order to provide improved needs oriented services to customers in Vietnam. Sumitomo Metals' aim is to meet customer needs by leveraging its rich experience in Japanese and Thai steel service centers. Through mutual capital participation Sumitomo Metals and the China Steel Corporation Group are aiming to create a win win relationship in the coil processing center business. And have already established a close relationship in the slab supply business. Both parties will now strive to enhance this relationship further by taking their alliance into a new phase.

Stemcor posts record performance for H1 of 2007

World’s largest independent steel trader Stemcor has announced results for January to June 2007. The highlights of performance are as under
1. Steel tonnage invoiced up from 4.2 million tonnes to 4.8 million tonnes up by 15% YoY
2. Raw materials invoiced up from 3.1 million tonnes to 4.1 million tonnes up by 29% YoY
3. Turnover up from GBP 1.387 billion to GBP 2.132 billion up by 54% YoY
4. Operating profit up from GBP 32 million to GBP 48 million up by 51% YoY
5. Pre tax profit up from GBP 20 million to GBP 26 million up by 29% YoY
6. Acquired Steel Plate & Sections Ltd, a UK based stockholding company specializing in high value steel plate for the offshore oil and gas industry
7. Sold Savage River iron ore mine and pellet plant to Chinese steel producer Shagang but retained 10% share

Mr Ralph Oppenheimer chairman of Stemcor said “Trading conditions were again favorable in the first half of this year. All our units contributed positively to our results. As compared to the first half of 2006, our steel tonnage invoiced rose by 15%, raw materials by 29%, turnover by 54% and pre-tax profit by 29%. Profit after tax attributable to shareholders was, however, down by 8% as a result of higher tax and minorities. Shareholders funds excluding minorities rose 17% to GBP 119 million in the six months and are now 34% above the level of twelve months ago.”

Mr Oppenheimer added that “On the 2nd of July we acquired Steel Plates and Sections Limited, a stockholder specializing in high value steel for the off-shore energy sector, with two warehouses in the UK and stock also in Rotterdam, Dubai and Singapore. On the 9th of August we sold 90% of Savage River, the iron ore mine and pellet plant in Tasmania. We estimate that our results in the second half of this year will benefit from GBP 7 million of disposal profits. Dependent on performance of the mine and world pellet prices, further profits estimated at GBP 34 million should be recognized in the years from 2009 to 2022.”

Mr Oppenheimer concluded that “We finished the period with a solid forward order book and, though there is considerable uncertainty in both credit markets and in steel pricing at present, we have made proper provision for counter party risk and unsold positions. Subject to unforeseen circumstances we can therefore predict a good second half.”

MEPS forecasts Asian SS prices slip in August

UK based MEPS said that stainless selling values are forecast to slide again in August 2007.

It said “Mills will remain obliged to concede the nickel decrease immediately to their customers in order to encourage orders from local buyers. Exports are still sluggish and expected to continue to be slow in the short term as the price in the west drops significantly due to alloy surcharge reductions. Overcapacity in the Chinese market is anticipated to intensify, putting further pressure on Asian selling figures. Planned production cuts are not likely to be enough to ease the dramatic stainless steel price falls predicted until the end of this year.

MEPS said that nickel prices moved lower in July 2007 as they fell further into their deep descent. It said “The July monthly average is set to be around USD 8,500 per tonnes below June's figure. Nickel values are forecast to continue falling and are anticipated to drop below the psychological USD 30,000 per tonne mark for the August average as stocks on the LME continue to rise. There is still the possibility for another severe drop in the cost of nickel. Stability should return to the market later this year as production cuts from stainless steel producers over the summer months bring supply and demand nearer into equilibrium. New nickel capacity due on stream later this year and in 2008 is expected to prevent values rising dramatically before the end of the forecast period.”

MEPS added that the continued downfall in nickel prices should result in stainless transaction values, for all products, recording significant declines into the fourth quarter of this year. It added that “By the beginning of 2008, cold rolled coil type 304 prices are anticipated to slip below USD 3,800 per tonnes with grade 316 dropping to just near USD 6,200 per tonne. The reduction in nickel prices is forecast to ease after the summer, which should help to stabilize the stainless market by early 2008.”

Minmetals to purchase 61.87% stake of Yingkou Plate

China Minmetals Development’s subsidiary Shanghai based Minmetals Development Corporation Limited has announced that it is planning to purchase an additional 61.87% stake in Minmetals Yingkou Medium Plate Corporation Limited through a new share placement. Minmetals Development will hold a stake of 85.88% of Minmetals Yingkou Medium Plate Corporation Limited after the purchase.

Minmetals Yingkou Medium Plate Corporation Limited is a controlled company of Minmetals Corporation, in which the parent holds 49.88% shares, its subsidiary Yingkou Medium Plate Mill holds 11.99% and the company itself holds 24.01%. Minmetals Development plans to purchase 61.87% stake that originally owned by Minmetals Corporation and Yingkou Medium Plate Mill.

As a key enterprise in Liaoning Province, Minmetals Yingkou Medium Plate Corporation Limited boasts annual medium plate capacity of 1.5 million tonnes and it posted a net profit of CNY 411 million in 2006.

According to statistics from China Iron & Steel Association, in 2006 Minmetals Yingkou Medium Plate Corporation Limited's "Composite Index of Industrial Economic Benefit" ranked first in the steel industry, all personnel labor productivity stood first, steel output per capita stood first, pretax profit per capita stood second, wage earnings per capita stood third and wage per ton steel also stood third. Its return on net assets and gross profit rate hit 12% and 20% respectively on June 30th 2007 far higher than the average level in the industry.

(Sourced from MySteel.net)

China to add 11 HSM with 34 million tonne capacity by 2007 end

Platts lat week reported that with at least 11 hot rolling lines, a combined capacity of around 34 million tonnes per year is scheduled to be completed in 2007 in China taking its hot rolled coil capacity to around 140 million tonnes per year by the end of 2007. Out of the 11 HR lines, 5 have a design capacity of over 3 million tonnes per year and the remaining 6 HR lines have a design capacity of at least 2 million tonnes per year capacity.

The list of HSM likely to come on stream includes
1. Anyang Steel - 3.8 million tonnes
2. Ma'anshan Steel – 5 million tonnes
3. Baosteel - 3.7 million tonnes
4. Tiantie Metallurgical Group - 3.8 million tonnes
5. Beitai Steel - 4 million tonnes
6. Rizhao Steel - 2 million tonnes
7. Tangshan Guofeng Steel – 2 million tonnes
8. Shougang Qian'an Mill - 2 million tonnes
9. Wuhan Steel - 2.8 million tonnes
10. Shanxi Haixin Steel - 2.2 million tonnes
11. Ningbo Jianlong Steel - 2.5 million tonnes

However the report cited a Beijing based analyst as saying that China's actual HRC output, however, may not increase significantly in 2007 but from 2008 onwards it would
1. Not all the 12 HR lines will reach full capacity immediately after their completion in 2007, as it usually takes a HR line 1 year to 2 years to reach its design capacity.
2. An increasing portion of HRC has been fed to cold rolled lines for higher end products. As such, commodity HRC may not increase in proportion to the actual HRC output.
3. China's HRC consumption looks set to also grow steadily, quite capable to digest the increase in HRC output. As China's economy is estimated to grow by 8% on year in 2007, the analyst expects China's steel consumption to grow by around 15% on year and the forecast increase in HRC supplies in 2007, as such, may well be consumed domestically.

According to the analysts, given the above considerations, China's commodity HRC output may increase to approximately 85 million tonnes in 2007 up by around 22% YoY.

EU likely to start investigations on Chinese steel imports

It is reported that the European Steel Federation Eurofer is likely to request the European Commission to investigate anti dumping case against steel imports from China.

The list of steel products that would be included is as follows
1. Stainless cold rolled sheet
2. Galvanized sheet
3. Hot rolled coil
4. Wire rod

As per report, European Steel Federation is still discussing whether they will also include hot rolled plate and seamless pipe. At the moment, the situation has not yet reached the stage of initiation of anti dumping procedures.

The report cited a source as saying that that the European Steel Tube Association is likely to conduct surveillance on the import situation and that the inspecting procedure is very likely to be initialed at the end of September 2007.

Chinese steel industries need further consolidate – Fitch

According to Fitch Rating agency Chinese steel producer and iron ore consumer needs to further consolidate its highly fragmented steel sector in order to influence the dynamics of the industry worldwide and capitalize on the current steel price upcycle.

Fitch said that China's largest steelmaker, Baosteel, accounted for only 5.3% of total domestic production in the H1 of 2007 as compared with 6.5% in 2005, while many small and medium sized steel producers have continued expanding their production levels in order to avoid becoming acquisition targets. As a result, the output of steel producers with a capacity of less than 2 million tonnes per year increased nearly 30% YoY in 2006. It added that "In contrast to the surging output of steel products, which increased by 18.9% YoY to 237.6 million tonnes in the first half of 2007, the market shares of leading Chinese steel companies are shrinking."

Mr Danny Chen associate director of Fitch's corporate team said that "The strong administrative influence in the steel sector consolidation process makes it less efficient and predictable. Furthermore, in a relatively benign operating environment, acquisitions become more difficult given the strong resistance from the local government’s as small local players remain profitable. The wide gap between global and domestic steel prices has ensured exports of Chinese steel products will continue. Also, the potential reduction in exports to the US and EU may be replaced by the increasing demand from emerging markets like Southeast Asia and the Middle East, given their robust economic growth."

Fitch said that robust exports also play a key role in balancing supply and demand and digesting the pressure of overcapacity in the Chinese steel market. In the first half, net exports of crude steel equivalent amounted to 30.9 million tonnes up by 179.7% YoY. Fitch noted that the strong growth in steel exports has contributed to trade tensions between China and its major trade partners like the US and EU. This has prompted Beijing to announce a series of changes to its steel export tax policy, including the cancellation of export tax rebates for most steel producers and an increase in export tax on low end steel products. But the effectiveness of these policies might be blunted by prevailing high international steel prices.

Fitch also noted that Chinese steelmakers appear to prefer strategic alliances to mergers and acquisitions in the consolidation of the industry. It added that "Although the alliances reduce competition and improve access to resources and markets, the ongoing slower-than-expected consolidation contributes little to improve the still highly-fragmented sector structure. In the absence of more market-driven acquisitions and integrations in the Chinese steel sector, most Chinese steelmakers may remain as mainly domestic players and highly-exposed to the cyclicality and volatility in the global steel sector."

Fitch further said that the Chinese government's ban on foreign control over major state owned steel makers provides an umbrella for Chinese steel makers from face to face competition with global giants, such as ArcelorMittal, whose interest in acquiring Baotou Steel and Laiwu Steel has waned.

Ukraine seeking higher quotas with EU on steel exports

Ukrainian Journal cited a spokesman for the Ukraine Industrial policy ministry as saying that Ukraine is seeking a new agreement with the European Union that would allow Ukrainian steel makers to boost exports of steel to the EU by 65%YoY in 2008.

The spokesman said Ukraine seeks to negotiate a quota of up to 2.17 million tonnes for steel exports to the EU in 2008 up from 1.32 million tonnes in 2007.

Acquisitions lift Gerdau Group H1 revenue to BRL 15.3 billion

It is reported that growth in Brazilian domestic demand together with the consolidation of companies acquired in Spain, Mexico, Peru, Venezuela and the Dominican Republic pushed Gerdau Group revenues to BRL 15.3 billion up by 13.7% on the first half of 2006. Of this total, 44.7% originated in Brazil, 39.3% in the United States and Canada, 11.4% in Latin America and 4.6% in Spain. Consolidated net profit for the period was BRL 1.7 billion.

Mr André Gerdau Johannpeter CEO of Gerdau Group said “We have continued our strategic challenge of being one of the consolidators of the global steel sector absorbing companies in regions where we already had a presence such as Latin America and Europe. Although they are not included in the first half balance sheet, we also draw attention to our entry into Asia with the Kalyani Group opening up the opportunities of a new continent and the major expansion in the United States with the acquisition of Chaparral Steel.”

The Gerdau Group sold 8.2 million tonnes of steel products in the first half of 2007 up by 10.2%. As a result, production also increased, reaching 8.3 million tonnes of steel up by 8.2% and 7 million tonnes of rolled products up by 11.9%. Rolled products are obtained through the transformation of steel into items such as rebar, bars, profiles and wire rod.

In January to June 2007 investments in expansion and technological upgrades of existing units totaled USD 709.1 million of which USD 483.3 million was invested on operations in Brazil, USD 84.7 million in Canada and the United States, USD 40.2 million in Spain and USD 100.9 million in Argentina, Chile, Colombia, the Dominican Republic, Mexico, Peru, Uruguay and Venezuela.

Acquisitions in January to June of 2007 totaled USD 403.5 million, being USD 393.5 million in Latin America and USD 10 million in the United States. Including further acquisition agreements not yet concluded, the total reaches USD 4.7 billion for the year to July. Highlights include the launch of a joint venture with the Kalyani Group and the acquisition agreement for Chaparral Steel. The Chaparral Steel acquisition operation was the biggest in the Gerdau Group’s history, totaling USD 4.2 billion. In July, agreements were also reached for the acquisition of two downstream operations D&R Steel at Arizona in USA and Trefusa at Vitória in Spain concentrating respectively on rebar fabrication and drawing of specialty steel products.

WISCO H1 profit nearly triple on price gains

China's Wuhan Iron & Steel Co announced that it’s January to June 2007 period profit almost tripled as steel prices and output increased. WISCO said that its net income for the January to June 2007 period rose to CNY 3.4 billion (USD 449 million) from CNY 1.26 billion as compared to January to June 2006 period. Its sales rose by 38%YoY to CNY 26 billion.

Wuhan Steel boosted crude steel output by 10.4%YoY to 5.86 million tonnes in the January to June 2007 period.

According to metal research firm Beijing Antaike Information Development Co the average price of hot rolled steel coil an industry benchmark rose by 8.2% to CNY 4,215 a tonnes in H1 of 2007 from CNY 3,897 in H1 of 2006. The price has risen by 4% to CNY 4,038 from this year's low of CNY 3,883 reached on July 12th 2007.

Wuhan Steel, China's only mill capable of making oriented silicon steel, will boost output by 40% to 280,000 tonnes in 2007 after it started a new plant in September. Its cold rolled output may rise by 76% to 3 million tonnes. Also Wuhan Iron & Steel Group, Wuhan Steel's parent agreed on August 1st 2007 to buy a 48.4% controlling stake in smaller rival Kunming Iron & Steel Co. to secure raw material supplies and increase exports to Southeast Asia. It controls most of the parent's steel assets in the central province of Hubei.

Taiwan's SS output in January-May dip by 5.3% YoY

Taiwan's stainless steel sheets output in January to May 2007 period fell by 5.3% YoY to 1.444 million tonnes.

In million tonnes

Taiwan's stainless steel output in May 2007 totaled 294,908 tonnes comprising of 195,028 tonnes of hot rolled sheets and 99,880 tonnes of cold-rolled sheets. In comparison, in April 2007, total production was 306,998 tonnes with 207,286 tonnes of hot rolled sheets and 99,712 tonnes of cold rolled sheets.

Ezz Dikheila plans a rebar facility in Algeria

ArabSteel reported that Egypt’s Ezz Dikheila is planning to expand its activity in steel production by setting up a new mill in Algeria with a production capacity of 1.5 million tonnes per year of reinforcing steel at a cost of EUR 700 million, which is expected to be expanded some time later to produce flat products.

The report added that Mr Ahmad Ezz chairman of the board of directors of Ezz Dikheila visited Algeria on August 8th 2007 heading a delegation from the company. During this visit they met the Algerian prime minister and the minister of industry and investment. The report cited an Algerian officials welcoming setting up this project.

The Algerian market is now considered the second largest importer of reinforcing steel at the level of the Arab countries. Its import of reinforcing steel comes up to around 2 million tonnes per year. In the future the volume of imports will increase with the existence of the real estate investment companies, in particular the Gulf companies in the Algerian market, which is considered a promising market having the capacity to accommodate many new projects.

Ezz Dikheila Group after putting this project into execution would add a new capacity to its present capacity amounting to 5.5 million tonnes so that this capacity will come up to around 7 million tonnes per year. Its production of long products accounts for 65.5% of the total production.

ThyssenKrupp SS deliveries in Q2 drop by 12 % YoY

It is reported that that German steel giant ThyssenKrupp deliveries of stainless steel product during April to June 2007 quarter fell by 12%YoY to 580,000 tonnes due to lower shipments of stainless strip.

ThyssenKrupp said that distributor demand was heavily impacted in the quarter by high inventories at the start of the period and then by the nickel price collapse which has caused distributors to try and run down high priced stainless stocks as quickly as they can. It added that order intake fell significantly in the period on a combination of these two factors as well as continuing high imports into the European region from Asia and increasing product mix shifts towards low nickel austenitics or ferritic materials. Its Chinese subsidiary Shanghai Krupp Stainless saw order intake weaken YoY owing to weak demand in the Chinese market but ferritic stainless business actually expanded in the period.

Thyssenkrupp further added that “In the coming months, the stainless market will be strongly influenced by the development of the nickel price. As the price of nickel declines, distributors have recently been making efforts to run down their stocks quickly, and these efforts will continue in the short term. As a result of this and continuing high stainless imports to Europe, replenishment purchases by distributors are expected to remain at a low level in the next few months and will necessitate further production adjustments.”

Mr Ulrich Middelmann CFO of ThyssenKrupp told analysts in a telephone conference that it expects falling prices to weigh on results in its stainless steel division in the fiscal fourth quarter through the end of September. He said “The fourth quarter will be tough in stainless steel. Profitability in the division will decline significantly from the third quarter. New orders are currently just about zero.” Mr Middelmann however added that the division will likely start recovering around November as the company adjusts production capacity.

ThyssenKrupp itself is expanding its product range away from high grade nickel stainless. It said that “A changed product mix with a higher proportion of ferritic grades and the new finishing shop at the Terni in Italy location 11 are having an increasingly positive effect by increasing value added and thus allowing us to do more business.

Jinchuan reduces nickel price by 6.4%

Asia’s biggest nickel maker Jinchuan Group Co announced price cut for the refined nickel by 6.4% after supply shortages in China eased and global prices fell. The price is reduced by CNY 17,000 to CNY 248,000 (USD 32,745) a tonne effective from August 9th 2007.

Mr Xu Aidong an analyst at Beijing Antaike Development Co said “The easing “of transport bottlenecks has boosted local supplies. Also, the planned output cut by stainless steel producers will damp nickel demand.”

Jinchuan had boosted prices 1.5% to CNY 265,000 on August 1st 2007 after deliveries of local supplies was disrupted by floods and landslides in some Chinese provinces.

Western Gansu province based Jinchuan supplies 90% of China`s refined nickel.

China exceeds steel export limit to EU

In its latest report by Macquarie Research Commodities suggested to the China Iron and Steel Association that it should be concerned over the amount of steel exports to the European Union which reached 6.4 million tonnes in January to June 2007 up by 139% in 2007, which exceeds the early verbally agreed limit arrangement between China Iron and Steel Association and Europe of 2.1 million tonnes.

Macquarie said although South Korea is still the largest Chinese steel export destination, its proportion of total Chinese steel exports fell 4% on year to 19% in January to June 2007. US also reduced its quantum of total Chinese steel exports from 23% in January to June 2006 to a mere 6% in January to June 2007.

In January to June 2007, China shipped a total of 4.98 million tonnes of finished steel up by105% on year to Singapore, the Philippines, Indonesia, Thailand and Vietnam. The Middle East also absorbed almost 5 million tonnes of steel in January to June 2007 up from just 500,000 tonnes in 2006. India became an important destination for Chinese steel exports in the first half of this year with total steel exports of 1.56 million tonnes up by 169% YoY.

According to the report China exported a total of 33.79 million tonnes of finished steel in January to June 2007 an increase of 97.7% in 2007. Total finished steel export value reached USD 22.4 billion, an increase of 136.7% in 2007. Net finished steel exports were 25 million tonnes up by 226.7%, and the finished steel trade surplus was USD 12.1 billion against a steel trade deficit of USD 42 million in January to June 2006. Steel sheet accounted for 84.5% of total imported steel, with a total import volume of 7.35 million tonnes down by only 6.9% in 2007, suggesting that the technology gap for producing high end steel between China and other countries has not significantly changed.

China's central bank to prevent economy from overheating

Chinese central bank last week said that it would put the task of preventing the China’s economy from overheating as the top priority of current macro control. Central bank said the expanding trade surplus and rapid growth of bank loans and investment remained big challenges to the economy.

China’s National Bureau of Statistics announced in July that China's GDP expanded 11.9% in April to June 2007 quarter lifting H1 growth to 11.5%.

China’s economy has recorded a stable and fast growth in the H1 of 2007 and it is highly possible it would maintain a high growth rate in the H2 of 2007 under the favorable conditions. However, it pointed out there was a more obvious trend for the economy to shift from fast growth to overheating.

The central bank said it would continue to implement the prudent monetary policy in the H2 of 2007 and would call into necessary macro control measures to maintain the stability of the country's financial situation. According to the report “It also pledged to take measures to control the inflationary expectations and maintain the price stability.”

The bank said it would continue to address the excessive liquidity with open market operations and reserve requirement ratio and also with the creation of more hedging instruments. The central bank would let the market supply and demand play a bigger role in determining the yuan exchange rate and make it more flexible while maintaining the stability of the currency's exchange rate at a reasonable and balanced level.

China studying further measures to reduce coke exports

Mr Hou Shiguo deputy director with the industrial policy department under China’s National Development & Reform Commission during coke market operation seminar on August 2007 disclosed that in order to reduce coke export, China is to deepen the export policy and further study measures to control the volume.

According to Mr Hou, coke industry is highly polluting. Under heavy pressure to conserve energy and reducing emission, the government hopes to cut the export to the minimum.

In 2006, China exported 14.5 million tonnes of coke, accounting for less than 5% of the China's total coke sale, yet some 50% of world trade. China's coke export volume has stayed around 15 million tonnes in last 3 years. China's revising the export policy will thus have an effect on the global situation pushing coke prices up.

(Sourced from MySteel.net)

State Development Bank to loan CNY 20 billion to Wuhan

It is reported that Wuhan iron & Steel Company and the State Development Bank held a development financial cooperation agreement signing ceremony on August 9th 2007. At the ceremony, the two sides agreed on WISCO technology and product mix plan during 11th Five Year" plan for the development of southwest China strategic and capital input.

The two sides signed the development finance cooperation agreement under which in the next five years, the National Development Bank will provide CNY 20 billion to WISCO as loans and for the quality of financial services, to support various projects in Wuhan.

Mr Liu Kegu deputy governor of the State Development Bank said that “In recent years, Wuhan product mix gradually to the mid adjusted, successful and Hubei steel, Liu Gang, Kunming Steel shares reorganization and actively develop overseas strategic resources. Vertical and horizontal expand the scope of development to promote China's steel industry restructuring, upgrading industries with emphasis on competitiveness significance.”

He added that “In the fierce market competition, Wuhan with the scientific development concept as a guide, earnestly implement the iron and steel industry development policy, in depth implementation of the 11th Five Year plan and the Southwest development strategy, vigorously promote Fangchenggang steel project WISCO put toward building our steel, high grade steel for automobiles and high performance structural steel production base and access to the world's top 500 enterprises and efforts to forge ahead goal.”

Japan and Indonesia to sign free trade agreement

It is reported that Japan and Indonesia will sign a bilateral free trade agreement on August 20th 2007 during Mr Shinzo Abe prime minister of Japan’s visit to Indonesia.

The accord features an energy security partnership between the two countries and the immediate removal of Indonesian tariffs on Japanese steel products for use in sectors that include auto production and energy. The two countries will aim to have the pact come into effect early next year.

The pact will eliminate tariffs on about 92% of bilateral trade by value. Under the agreement, about 96% of Japanese exports to Indonesia will effectively become tariff free, while about 93% of Indonesian exports to Japan in value terms will be exempt from duties.

ANH Refractories announces price increase

The ANH Refractories family of companies, including AP Green Refractories, North American Refractories and Harbison Walker Refractories announced last week that prices would increase for the majority of its refractory products by 5% to 15% based on product composition, beginning October 1st 2007 for magnesia and bauxite based products.

It said that “The ANH Refractories family of companies has been working diligently over the past several years to minimize the impact of skyrocketing fuel, energy, freight and raw material costs. Increased capital investment and improved productivity in our manufacturing facilities throughout the United States, Canada and Mexico, together with our re-engineered product portfolios, have been highly successful in offsetting many of these cost increases. However, recent changes in the Chinese Government's export policy position, including a marked reduction of Export Licenses, a newly instituted Export Tax for raw materials, reduced or eliminated tax rebates and subsidies for finished goods have all contributed to significant raw material price increases for the ANH family of companies.

Mr Guenter Karhut CEO of ANH said “The regulatory events in China coupled with higher base costs particularly for magnesia and bauxite, higher ocean and inland freight costs have all contributed to increased costs and the need for the announced price increases."

ANH Refractories is one of the largest and most diverse US based manufacturer of refractory shaped brick and unshaped monolithic products for the iron & steel, non ferrous metals, glass, minerals processing and environmental, energy & chemical industries.

Eramet resumes nickel exports from New Caledonia

Bloomberg reported that Eramet SA has resumed exports on last weekend from New Caledonia after delays caused by fire damage to a conveyor belt used to load ships.

Mr Pierre Alla CEO of Eramet’s Le Nickel-SLN unit told Bloomberg that the belt was damaged two weeks ago and resumed operation three days ago after partial repairs. He added that loading was completed on a ship for export on last Friday.

Mr Alla said that “It is operating, but it is a bit slow. Full repairs will take till next year." He did not estimate what capacity the belt was operating at, or the impact on deliveries.

Eramet said last month nickel deliveries will drop 18% to 55,000 tonnes this year as it replenishes supply and adjusts to lower demand from stainless steel mills.

MMK seeks shareholder approval for Kazak iron ore supply deal

Interfax last week reported that Magnitogorsk Iron & Steel Works would ask shareholders at an August 30th 2007 EGM to approve a 10 year USD 8.4 billion iron ore supply deal signed in March 2007 with Kazakhstan's Eurasian Natural Resources Corp.

Polish Alchemia Q2 net up by 150% YoY

Intrefax reported that Polish listed oil and steel conglomerate Alchemia increased its net profit over 150% YoY to over PLN 39 million in the second quarter of 2007, while sales revenues increased by over 50% YoY to PLN 159.4 million.

A company release said "The result stems mainly from an increase of scale of operations and visible improvement of profitability. The good results prove the effectiveness of its investment strategy, particularly in relation to the Batory steel mill, which cut costs by lowering gas consumption by 25% in Q2 2007.”

Mr Karina Wsciubiak CEO of Alchemia said “The second quarter's achievements prove that the investment strategy of the group, particularly the part referring to Batory steel mill, is bringing results."

The mill plans to invest PLN 105 million in development in 2006-2008, which will allow it to increase pipe production and sales by nearly 15% in late 2007 and early 2008.

Alchemia's profitability was also influenced by preparations to take over the Bankowa steel mill. It said "The loans taken for the purchase of a stake in this company contributed to the increase in financial costs. Thanks to a new share issue, the debt will be paid, which should reduce financial costs in the second half of the year."

Alchemia forecasts that the acquisition of the Bankowa steel mill and prices of scrap metal and steel alloys will have a large influence on its results in the coming months. The results will also be influenced by the EUR to PLN exchange rate due to the significant share of exports in the company's revenues.

WCI Steel report loss in Q2

WCI Steel Inc announced that during April to June 2007 quarter it reported a net loss of USD 12.5 million and a net loss of USD 16.8 million for January to June 20007 period. WCI said that its April to June 2007 quarter and January to June 20007 period results were negatively impacted by the BOF baghouse installation and unscheduled outages in the blast furnace in April to June 2007 quarter and the BOF vessel damage incurred in January to March 2007 quarter.

For the April to June 2007 quarter WCI Steel reported:
1. Shipments of 284,000 tons
2. Revenues from product sales of USD 191.0 million or USD 674 per tons
3. EBITDA of negative USD 11.4 million
4. Operating loss of USD 17.8 million
5. Net loss of USD 12.5 million prior to the accrued PIK preferred dividend

Shipments of 284,000 tons in April to June 2007 quarter were in line with prior guidance. The average revenue rate of USD 674 per ton was USD 37 per tons better than the January to March 2007 quarter and USD 7 per tons above the guidance for April to June 2007 quarter. Revenue per tons in April to June 2007 quarter was generally in line with the level experienced in October to December 2006 quarter. Sales volume, although consistent with earlier projections, remained constrained by production and inventory limitations.

Combined these items reduced production and sales by at least 75,000 tons in the quarter. During the April to June 2007 quarter USD 11.1 million of excess idle costs related to the April and May outages were incurred. Including the impact of lost profit contribution, the total impact of the reduced volume in the quarter likely exceeded USD 20 million. Although BOF production improved in June and July, operational challenges in the hot strip mill and finishing operations continue.

Mr Michael C Buenzow interim president & CEO of WCI Steel said that "Our performance in the quarter was unacceptable, reflecting operational difficulties, disappointing plant performance and a variety of cost challenges. The Board of Directors and management are moving decisively to improve operations, but we continue to experience under performance until operational improvement and cost reduction initiatives are fully implemented. The recent pressure on steel pricing, combined with weakness in some of our key market sectors going forward, makes it imperative that we work vigorously to reduce our costs and improve production and reliability. In the one month I have been at WCI Steel, I am pleased at the efforts being taken to drive long-term positive change."

Timken to supply bearings for ArcelorMittal HSM at Krakow in Poland

The Timken Company has announced that it is the exclusive supplier of tapered, spherical and cylindrical roller bearings for ArcelorMittal's new high capacity hot strip steel rolling mill at Krakow in Poland. Timken bearings have been installed in various locations throughout the mill including the roll stands that shape the steel, cutting sheers and the power coilers that wind the finished steel sheets onto a roll and other equipment.

Timken received the USD 2 million contracts from Siemens Metals Technologies, which is building the mill. The mill is scheduled to be commissioned later this quarter.

Mr Michael J Connors VP of Timken's said that "Steel mill builders turn to us because we not only deliver product that improves a mill's performance but also because we work closely with builders to bring our first hand knowledge of rolling mill manufacturing to the design and selection of the bearing products for such a mill."

With a steel strip width of up to 2100 mm, or 84 inches, the mill will produce some of the widest finished products in Europe for carbon, stainless and special steel grades to meet the higher quality needs of the automotive, petroleum and fuel industries. The new mill will also significantly reduce operating costs for ArcelorMittal, while producing 2.4 million tons of steel annually, which is approximately 20% of total steel production in Poland.

Mechel commissions new mining machinery

Mechel OAO announced that it has commissioned new modern backhoe excavators at its iron ore mining subsidiary Korshunov Mining Plant OAO and at deposits of its nickel mining subsidiary Southern Urals Nickel Plant OAO. The new machines will increase Mechel’s efficiency of iron and nickel ore mining while reducing production costs. The total cost of the new excavators is approximately RUB 167 million.

The Liebherr excavator with a nine cubic meter bucket is installed at the Korshunov open pit mine of Korshunov Mining Plant OAO to utilize its design for mining iron ore at lower levels in the open cast mining method. The Liebherr excavator is designed for excavating ore in confined spaces from the bottom of the pit leading to higher efficiency and fewer losses of iron ore at greater depths in the mine. In addition, Mechel will use the new excavator to improve work conditions for mining machinery such as dump trucks, drilling units and bulldozers, saving material resources in the process. The new machines will enable decommissioning of two aged excavators and should allow it to increase annual productivity by 30% in ore excavation.

The Komatsu brand excavator with a four cubic meter bucket is put into operation at the Sakharinsk mine of Southern Urals Nickel Plant. A similar machine will be commissioned at the Buruktal mine this autumn. The new machines are designed for efficient excavation of nickeliferous ores at lower levels in the mine. They are distinguished by enhanced maneuvering capabilities and add to the machinery already available at the mines.

The new machines were commissioned in line with the technical re equipment program of Mechel’s mining subsidiaries. Mechel significantly renewed the technical basis of its mining assets during the first half of 2007 from June to July two other Liebherr excavators were commissioned at the Krasnogorsk and Sibirginsk open pit mines of Southern Kuzbass Coal Company. Mechel plans to commission two more excavators at the Olzherassk and Tomusinsk open pit mines of Southern Kuzbass OAO before the end of this year.

Baoji Titanium plans to boost capacity

China's largest producer of titanium Baoji Titanium Industry Company Limited is planning to expand its annual production capacity of titanium products to 10,000 tonnes by 2010.

As per report to secure a stable supply chain, Baoji Titanium is working with Fosun International Ltd, China's top privately controlled conglomerate, to develop titanium mining projects in the southern province of Hainan.

Baoji Titanium, which supplies products to the aerospace and aviation industry, including Boeing Co produced 4684 tonnes of titanium products in 2006.

South African plans for a new steel makers unlikely to see the daylight

South African media reported that South Africa government would be lucky if it can find an investor willing to take on ArcelorMittal South Africa as ArcelorMittal’s reputation as a formidable competitor is likely to scare off potential investors for South African government’s proposed new plant.

As per reports, the reputation of ArcelorMittal plus the highly favorable deal that its South African subsidiary has to source iron ore at cost plus 3% from Kumba Iron Ore are likely to be key concerns for any potential investor.

The report added that “It is quite possible that the government's pre feasibility study into the new plant is a scare tactic. The government may hope to prod ArcelorMittal SA into action around its pricing methods which the government insists amount to import parity pricing. Pricing has long been a source of tension between the state and local industry on the one hand and the steel maker on the other. Protracted discussions aimed at extracting lower domestic steel prices from ArcelorMittal SA have so far come to nought.”

Ukraine not to contest Mr Pinchuk's rights over ferroalloy plant – Report

Reuters reported that the Ukrainian government will not contest Mr Viktor Pinchuk's rights over a ferroalloy plant, one of the privatizations that had been probed by the courts to make sure deals struck were fair and transparent.

Ukraine's Supreme Court ruled at first that the 2003 tender for Nikopol won by Mr Pinchuk was illegal but in April it ruled again this time confirming Mr Pinchuk's property rights. The Ukraine's body overseeing privatization the State Property Fund said that the government had acknowledged in front of a Kiev court that no law was broken during the tender for the company.

Mr Pinchuk’s company paid about USD 80 million for a controlling stake in the plant. Ms Yulia Tymoshenko prime minister of Ukraine at that time launched investigations in a number of what she called dubious privatizations shortly after the orange revolution swept them into power. The reviews led to the resale of Ukraine's largest steel mill Kryvorizhstal for USD 4.8 billion. It had initially been privatized for USD 800 million and bought by a Mr Pinchuk led consortium.