JSW Steel announces USD 0.9 billion acquisition in US

JSW Steel Limited announced that it has acquired 3 separate Companies at Baytown in the state of Texas of USA to expand its geographical footprint as a part of inorganic growth.
1. Jindal United Steel Corporation
2. Saw Pipes USA
3. Jindal Enterprises LLC

These facilities are strategically located near a deep water port, central to Gulf of Mexico Oil and Gas Industries, spread over 650 acres of land. These have 1.2 million net ton capacity plate mill, 0.55 million net ton capacity pipe mill and 0.35 million net ton of double jointing and coating lines.

With the acquisition of these 3 Companies JSW would get an entry point into growing and booming Oil & Gas sector in North America, which is driving up the plate and pipe demand. The Company would enhance the income accretive business model for immediate access to customers and markets through product diversification, market diversification and geographical diversification. The Company also gets an opportunity to capture value addition from slabs to high end product namely pipes.

JSW board of directors approved the acquisition of these facilities at an acquisition price of USD 0.9 billion only on completion of due diligence by internationally reputed agencies. JSW Steel will acquire 90% stake at approved enterprise valuation and the balance 10% will be retained by some of the existing shareholders. The acquisition price of USD 900 million works out to 6.25 times of the proforma EBIDTA for the FY 2006-07.

Mr Seshagiri Rao director finance of JSW said "The Company is confident of improving the operations substantially through various initiatives including quick capacity ramp up, supply of better quality and right size slabs matching with the requirement of the target Companies committing CAPEX commitments for upgrades and improving the facilities to reduce the downtime and to achieve cost reductions with improved capacity utilization."

RINL orders for wire rod mill from Morgan

It is reported that Rashtriya Ispat Nigam Limited has signed an agreement with US based Morgan for wire rod mill as part of its 6.3 million tonnes expansion plan.

The contract will be executed by Morgan along with its Indian subsidiary Morgan India at a cost of INR 622 crores in 27 months. Other partners are Stein Heurtey India for furnace and Mecon for associated works and site erection.

The new wire rod mill would have a capacity of 0.6 million tonne per year of wire rods of 5.5mm to 20 mm diameter to cater to the needs of automobile, fasteners, wire drawing industries.

JSW to set up 20 million tonne iron ore beneficiation plant

JSW Steel Limited announced that its board has approved to set up 6 modules of 500 tonnes per hour beneficiation plant having feed capacity of 20 million tonnes per annum and producing 15 million tonnes per annum of beneficiated ore at an estimated cost of INR 850 crores.

The project cost is proposed to be financed by way of term loan of INR 500 crores and balance out of cash accruals and the payback period is expected to be 12 months.

JSW said that the phase 1 of the project having 7.5 million tonne per annum capacity will be completed within 12 months coinciding with commissioning of capacity expansion project of 6.8 million tonne per annum, the phase 2 will be commissioned by September 2010 along with commissioning of expansion project to 10 million tonne per annum,

The release added that the beneficiation plant is expected to give significant cost savings, productivity improvements due to use of low grade 58% Fe iron ore and reduction of Alumina & Silica in beneficiation process.

PSL new pipe mill facility in Sharjah now operational

PSL Limited announced that its new pipe manufacturing facility located in the Hamriyah Fee Trade Zone at Sharjah in UAE is now operational and has recently bagged an order from UAE itself, as well as another Middle East market, namely Oman. The first order for supply of steel pipe for the water sector is valued at approximately USD 2.4 million.

The release added that PSL's order book on receipt of these orders will exceed INR 2,300 crores, most of which will be completed within the period up till March 2008.

The Sharjah facility has an initial installed pipe manufacturing capacity of 75,000 tonnes per annum of spiral pipes, a three layered polyethylene coating line, an internal liquid epoxy coating line and a concrete weight coating unit. It will manufacture pipe with a diameter range of 16 inches to 80 inches, wall thickness of unto 20 mm, lengths of unto 40 feet and grades of up to API X70. The plant will cater to the oil and gas industry, as well as the water sectors, within Gulf Cooperation Council countries. It will also provide these markets with pipe supply and coating services both for on-shore and offshore pipelines.

BHEL bags mega orders from DVC for 2x1000 MW power plants

Bharat Heavy Electricals Limited announced that it has won mega turnkey contracts valued at over INR 65,000 million for setting up two power projects of 1,000 MW each from Damodar Valley Corporation under international competitive bidding. It will set up two units of 500 MW each at Koderma Thermal Power Station in Jharkhand and two units of 500 MW each at Durgapur Steel Thermal Power Station in West Bengal on turnkey basis.

Slated for synchronization during the 11th Plan, the projects are identified to supply power to Delhi for the Commonwealth Games in 2010.

BHEL's scope of work in the contract envisages manufacture, supply, erection testing and commissioning of steam turbines, generators, boilers, associated Auxiliaries, balance of plant and electricals besides controls & instrumentation, electrostatic precipitators and switchyard, including civil works.

BHEL has fully established state of the art technology for manufacture of thermal sets up to 500 MW rating and has the capability to manufacture sets up to 1,000 MW rating. So far, orders for 58 numbers of 500 MW rating sets have been won, of which 31 have been commissioned.

Acquiring overseas coalmines getting tougher for Indian firms

PTI reported that Indian power utilities are finding it increasingly difficult to acquire coal assets abroad as their prices are going up with each passing day. This is true for particularly coal assets in Indonesia, Australia and Mozambique where Indian companies are scouting for acquiring mines because of freight advantages.

Mr Raaj Kumar MD of JSW Energy said "Coal miners in Indonesia, Australia, Mozambique and Africa know that India needs coal to fuel its upcoming power and steel projects. They also know that many within the country are fighting among themselves to acquire these assets. He added that this has created price inflation and there is no sign of stabilizing that."

Other industry sources said actually the difficulty was that there are very few assets on sale in these countries but there are many takers, which were fuelling their prices.

India aims to set up five Ultra Mega Power Projects of 4,000 MW capacity each with imported coal. These projects would require more than 75 million tonnes of coal a year. Besides, several other private players require an equal amount for other projects in the pipeline. Due to sudden spurt in demand from India for imported coal, several countries are raising prices.

Indian Railway freight revenue up by 8.75% YoY in Apr-Jul '07

Indian Railways has posted revenue earnings of INR 14378.80 crore from freight traffic during April to July 2007 period up by 8.75% YoY as compared to INR 13222.09 crore during the April to July 2006 period. Indian Railways carried 247.05 million tonnes of freight traffic during April to July 2007 up by 5.93% YoY as compared to 233.21 million tonnes carried during April to July 2006.

The earnings from freight traffic during the month of July 2007 is INR 3482.16 crore up by 6.74% YoY as compared to INR 3262.25 crore during July 2006. Indian Railways carried 61.80 million tonnes of freight traffic during the month of July 2007 up by 7.72% YoY as compared to 57.37 million tonnes of freight traffic during July 2006.

The details of income for July 2007 is as follows

Volume in million tonnes
Revenue in INR crore

TN formulates a new minor ports policy to enhance trade

BL recently reported that Tamil Nadu government has formulated a new minor ports policy under which the private sector would be invited to participate in developing them.

The policy covers 16 minor ports in the state namely Cuddalore, Nagapattinam, Rameswaram, Pamban, Valinokkam, Kanyakumari, Colachel, Kattupalli, Ennore, Cheyyur, Thiruchopuram, Silambimangalam Shipyard, Thirukkadaiyur, Thirukkuvalai, Punnakayal, Manappad and any other port that might be identified by the Tamil Nadu Maritime Board.

Tamil Nadu government hopes that with the development of new ports with modern cargo handling facilities, many of these ports would emerge as transshipment ports for handling cargo in international trade with countries such as Sri Lanka, Mauritius, Madagascar and South Africa.

The objectives of the minor port policy are to increase the share of Tamil Nadu in the export and import activities, in national and international trade and commerce, to decongest the at Ennore, Chennai and Tuticorin so as to improve their productivity, to create sufficient infrastructure facilities to handle 25% of the country’s total cargo in Tamil Nadu Maritime waters to provide facilities to encourage ship building, repairing, breaking and manufacture of cranes and floating crafts and so on.

Vishwakarma awards for 17 RINL employees

BL reported that 17 employees of the Visakhapatnam Steel Plant, involved in the implementation of 4 innovative suggestions from blast furnace, electro technical lab, steel melting shop and medium merchant and structural mill departments have been selected to receive the Vishwakarma Rashtriya Puraskar 2006 awards instituted by the union labor ministry.

The awards would be presented on September 17th 2007 in New Delhi and the award carries an appreciation certificate and cash INR 50,000, INR 25,000 and INR 10,000 in Class A, Class B and Class C categories respectively.

This is the third time the Visakhapatnam Steel Plant has won the awards which are given to those workers and supervisors who provide innovative suggestions resulting in higher efficiency, productivity, quality, safety etc, of the company.

Jharkhand CM hopes to make the state power hub

Ranchi Express quoted Mr Madhu Koda chief minister of Jharkhand as saying that it would become a power hub in the Eastern India if the plans initiated by the state government as well as the private sector become a reality.

Mr Koda, while delivering speech on the 60th anniversary of Independence, said that "Jharkhand government has proposed enhancing generation by 2,000MW while the centrally funded plants will produce 3,000MW. Besides, private companies have made the commitments to generate 4000MW power from the installations."

He added that 24 other investors, who have signed MoU with the state government in the power sector, are likely to add 31,000MW additional power capacity by the end of the 11th Five Year Plan.

Cabinet clears Delhi Mumbai industrial & rail freight corridors

Exim News Service reported that the Indian Union Cabinet cleared the INR 90 to INR 100 billion Delhi Mumbai Industrial Corridor project, which is to be jointly developed by India and Japan. The bulk of the investment is to be financed by the private sector. Construction activity is expected to begin in 2008-09 and be completed by 2012.

The Cabinet also approved the setting up of the 1,483 kilometers Dedicated Railway Freight Corridor between Delhi and Mumbai for high speed connectivity for high axle load wagons.

According to Mr Priya Ranjan Dasmunshi minister for parliamentary affairs and information and broadcasting that a separate body Delhi Mumbai Industrial Corridor Development Corporation will be established to implement the project, which will see six investment regions and industrial areas coming up in the first phase. He said all these projects were likely to be completed by 2013.

These will include the Manesar-Bawal region in Haryana, Bharuch-Dahej region in Gujarat, Pitampur-Dhar-Mhow investment region in Madhya Pradesh and Igatpuri-Nashik-Sinnar region in Maharashtra. The industrial areas include Meerut-Muzafarnagar region in Uttar Pradesh, Jaipur-Dausa in Rajasthan, Neemach area in Madhya Pradesh and Vadodara-Ankleshwar in Gujarat.

The development of DMIC Phase-I will coincide with the completion of the DRFC project. Over 120 projects are likely to come up under the DMIC alongside the 150 kilometers DRFC.

ABG Shipyard delivers 2 vessels to Lamnalco and Deep Sea

ABG Shipyard Limited announced that it has delivered 2 vessels as per the following details:

1. Lamnalco Macaw
The 53 meter long 90 tonne bollard pull azimuth drive propulsion anchor handling tug supply is able to carry out anchor handling towing rescue, offshore supply, transport pipes, fresh water, diesel oil, stores, materials and equipment, move men and materials between platforms and shore, external fire fighting and other related duties. The vessel is to supply, support the floating production offloading storage vessels, offshore oil and gas field on a 24 hour per day basis.

The Lamnalco Macaw is the second vessel to be delivered to Lamnalco in this financial year. ABG Shipyard has so far delivered 7 vessels, including the present one to Lamnalco group and besides, it is building another 5 vessels for the group.

Lamnalco Group of Companies was founded in 1963 as an equal partnership between Alireza Group and the Royal Boskalis Westminister. It is formed to operate the Jebel Dhanna oil terminal for the Abu Dhabi Petroleum Company from its opening in 1963 until the nationalization of the oil company in 1978.

2. Sea Otter
The 63.4 meter long, 80 tonnes bollard pull anchor handling tug supply vessel with rolls Royce propulsion is able to carry out anchor handling, dry bulk handling, towing rescue, offshore supply, transport pipes, fresh water, diesel oil, stores, materials and equipment, move men and materials between platforms and shore, external fire fighting and other related duties. The vessel is to supply, support the floating production offloading storage vessels, offshore oil and gas field on a 24 hour per day basis.

Deep Sea Supply Plc is an offshore supply company and owns a fleet of 8 anchor handling tugs supply vessels and 1 platform supply vessel in operation and 20 shipbuilding contracts of which 7 platform supply vessels and 11 anchor handling tug supply vessels. The delivery of the new buildings will be in the period 2007 to 2009.

Deep Sea Supply Plc will primarily seek to obtain and maintain a chartering profile with emphasis on the spot and short term contract markets for the large anchor handling tug supply vessels operating in the North Sea and in other areas of the world. The Current fleet of vessels currently operates in the North Sea spot market, West Africa, West Indies and South East Asia.

TMK acquires pipe coating producer Truboplast

Russian pipe major OAO has reached an agreement to acquire 100% of share capital in OOO Truboplast. The consolidation of Truboplast into TMK’s structure is planned to be completed by the end of 2007.

Truboplast is one of Russia’s largest producers of protective coatings for steel pipes used in the oil and gas industry. Truboplast produces one, two and three layered exterior coatings, thermo hydro insulated coatings and interior protection for the inner part of the weld. It possesses the latest technology for applying exterior and interior protective coatings on steel pipes and pipefittings for oil and gas pipelines. The company’s equipment allows for the coating of around 2,000 linear kilometers per year of pipes with diameters ranging from 57mm to 720 mm, such as tubing, drill pipes, casing, line pipes and large diameter pipes.

Truboplast products are used by major Russian and international oil and gas companies. With the increasing complexity of oil and gas drilling conditions, the application of high quality anticorrosive coatings becomes vital.

Dutch AFM rejects Arcelor shareholders complaint over exchange ratio - Report

Thomson Financial reported that the Dutch stock markets regulator AFM has rejected a demand from Arcelor Mittal minority shareholders requesting the steel producer release additional information over the planned merger of Arcelor and Mittal and the share exchange ratio.

Mr Jurjen Lemstra of Pels Rijcken, who is representing three activist hedge funds Global Master Fund Ltd, Trafalgar Catalyst Fund and Trafalgar Entropy Fund which claim they were misled by the takeover of Arcelor by Mittal Steel, told Thomson Financial News the AFM had explicitly said it does not have any authority to comment on what is a reasonable exchange ratio.

As per report, ArcelorMittal has now been called to appear before a Dutch civil court in Rotterdam tomorrow as the three hedge funds seek an injunction to prevent the merger. Mr Lemstra said that he expects the ruling to be handed down before ArcelorMittal's EGM next week, where the first step of the merger will be discussed with shareholders.

In June, Arcelor faced criticism from shareholders after it announced a revised exchange parity of 8 ArcelorMittal shares for every 7 Arcelor shares, but the company said the exchange ratio is fair and called publicized complaints about the ratio inaccurate and misleading. The shareholders are seeking to prevent a merger at any share exchange ratio departing from the 11 ArcelorMittal shares originally offered for every 7 Arcelor shares.

Russia and Ukraine to settle rebar trade dispute

Ukrainian Journal reported that Russia and Ukraine are set to sign an agreement to settle a dispute over steel reinforcement bar shipments.

The Russian government's press office said that Mr Mikhail Fradkov prime minister of Russian has instructed the Russian Economic Development and Trade Ministry to sign the agreement with the Ukrainian Economics Ministry regarding the bars, which are used to make reinforced concrete.

Ukraine has offered to limit rebar shipments, which Russia's steel mills have raised concerns about.

Argentina launches AD investigation against Chinese steel chains

China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters reported that Argentina had delivered a note indicating an anti dumping investigation against China origin low carbon steel chains.

The report said that as Argentina considers China as a non market economy country, the United Kingdom would calculate the normal value of the products. Argentina has judged the dumping margin at 50.54% and said this would hurt its national industries.

China will put in the comments on this issue before August 23rd 2007. CCCMC said that enterprises responding to the action should submit the answer to the investigation within 30 days since the file and submit related materials within 45 days. Materials submitted shall be translated into Spanish and certified by Argentinean Embassy in China.

This is steel trade friction with the third country in recent months after the United States and Canada.

(Sourced from MySteel.net)

Minmetals inks 7 year iron ore supply from SNIM

It is reported that Mauritania's National Industrial and Mining Company and China's Minmetals company have signed an agreement for the supply of about 1.5 million tonnes of iron ore annually over seven years. Mr Mohamed Ali Ould Sidi Mohamed MD of SNIM and Mr Wang Qing Tang deputy CEO of China Minmetal signed the deal recently.

For the first year, the supply will be 1 million tonnes and is expected to increase to 1.5 million tonnes in 2009.

The collaboration with the Chinese company will, in the long term, help Mauritania explore the M'Haoudat 4 deposit in the north of the country, which was discovered in 1987. It will also allow the SNIM to consolidate its position in the Chinese market.

BHPB and Rio bullish on Chinese demand for iron ore

It is reported that officials from mining giants BHP Billiton and Rio Tinto said that they see no imminent slowdown in China's rampant demand for iron ore. The rosy assessment comes as analysts tip another sharp iron ore price hike with global miners struggling to ramp up supplies of the steel making ingredient.

Mr Ian Ashby president of BHP Billiton Iron Ore while speaking during the AusIMM Conference in Perth said that his company is expanding aggressively in response to Chinese demand and efforts by Brazilian producers to steal market share from Australian exporters. China is going gangbusters and is likely to continue to go gangbusters.”

BHP is confident of expanding its Western Australian production to 300 million tonnes per year by the middle of the next decade. The target would be a near trebling of BHP's current iron ore output, which stood at 108 million tons in the fiscal year ended June 30th 2007.

Mr Warwick Smith president of Rio Tinto Iron Ore's of expansion projects said that "The outlook is for very strong growth in Chinese iron ore demand. The China story still has a long way to go adding that India may also become a major iron ore buyer in coming years as its local steel sector expands.”

Mr Smith informed that Rio has committed more than USD 5 billion since 2003 on growing its Western Australian business. The company aims to reach 220 million tons per year by 2009 up from 166 million tons produced in calendar 2006. It is also conducting preliminary studies into expanding beyond that level to around 320 million tons.

Macquarie Bank said recently said that Rio, BHP and Brazil's CVRD are set to maintain their grip over roughly three quarters of world sea borne supply of iron ore in the year ahead, despite the emergence of a raft of new players. It said China is expected to account for more than 90% of forecast market growth in demand out to 2011.

Worthington forms steel processing JV in Mexico

Worthington Industries has announced that its Worthington Steel Company has signed an agreement to acquire a 50% interest in privately held Serviacero Planos. The JV to be known as Serviacero Worthington will own and operate two existing Serviacero Planos steel service centers in Leon and Queretaro in central Mexico.

These facilities offer steel processing services such as slitting, multi blanking and cutting to length to automotive, appliance and electronics related customers. Annual sales for the JV are expected to be approximately USD 125 million initially.

Mr Mark Russell president of Worthington Steel said that “This JV aligns with our stated goal of expanding our steel processing business beyond its current geographic boundaries into higher growth markets. He added that by joining with Serviacero, we would be able to immediately offer steel processing services to an increasing number of customers with current and expanding operations in Mexico. Worthington has a long history of successful joint ventures and we welcome the addition of Serviacero to this group.”

Worthington Steel, a Worthington Industries company, is one of America’s largest independent steel processors of flat rolled steel with 12 facilities across the United States.

South Korea designates FINEX as core technology

It is reported that South Korean government has classified 40 technologies as core technologies of national interest. To export these technologies legally, shipments must be monitored before and after by the government.

The list includes 6 technologies from steel sector including FINEX process developed by POSCO.

The core technologies were determined according to surveys from the Ministry of Commerce, Industry and Energy, the Ministry of Science and Technology, the Ministry of Information and Communication and the Ministry of Construction and Transportation, as well as through meetings with businesses, research institutions and academics. The technologies were confirmed in the first committee for the protection of national industrial technologies, presided over by Prime Minister Mr Han Duck-soo at the government complex in Sejongro on Tuesday. The committee also confirmed the guidelines to protect national industrial technologies.

By category, 4 technologies were selected from electronics and electrical engineering, 8 from the automobile industry, 6 from the steel industry, 7 from shipbuilding, 4 from nuclear power generation, 6 from information and telecommunications and 4 from the space industry.

Mittal Steel Annaba averts strike as agreement reached

As per latest reports, the 8000 workers in Algeria based Mittal Steel Annaba would not go on strike after negotiations between workers’ union and the management ended with an agreement.

As per report, the signed agreement includes ten clauses meeting all the workers’ demands including a salary increase by 2009, better working environment, recruitment of outsourced workers. And recruitment of their off spring in case they retire.

It was earlier reported that Mittal Steel Annaba has planned to cut the work force by about 1200 through a VR scheme. Mr Smaïl Kouadria the interim head of the workers had called for negotiations. He had criticized the company for deceptive behavior and for not honoring previous promises made during negotiations.

Since Mittal Steel took control of Annaba plant in 2001, its workforce has been reduced from 14000 to 8000.

MMK leads the Russian market in value added steel products

Russian steel major MMK, citing Chermet data, announced that
1. MMK holds the first place in Russia in production of hot rolled flat products, cold rolled bands and cold formed sections
2. Second place in steel articles or metalware, galvanized and polymer coated flat products
3. Third place in cold rolled flats.
4. MMK is the country's exclusive producer of tin plate, with a 100% share of the market.

The release added that MMK’s main focus is on hot rolled strip, which accounts for 54% of its total sales. MMK turns out 41% of the hot rolled flats produced nationwide.

Its share of cold rolled products in its shipments is 14% or 32% of the country's production, while the share of galvanized and polymer coated strip is 4 and 1% respectively, but this accounts for about a quarter of the national production of these products.

As said earlier, MMK produces 100% of tinplate in Russia and more than half of cold rolled band and cold formed sections, including 100% of siding material for railway cars.

MMK said that a large scale modernization program launched by the company provides for further increase of value added goods production.

Chinese SS detected with high contents of phosphorous in Russia

YIEH reported that Chinese origin stainless has been detected with extra high contents of phosphorous in Russia, probably due to use of nickel pig iron in the production in China.

This incident has alerted Russia Stainless Association and Russia has put Chinese stainless mills on notice warning them not to certify stainless steel made of nickel pig iron and only standard stainless steel produced with standard refined nickel can be certified accordingly.

In Russia there are 6 major stainless producers with a total output about 150,000 tonnes but mainly producing HR thick plates and special grades of long products. Russia must rely on imports for high quality finishes of 2B, BA, Mirror etc. Each year, Russia buys overseas about 150,000 to 200,000 tons stainless steel, mostly from China.

JISCO to regroup with a Kazakhstan consortium

Jiuquan Steel HX announced to suspend stake transaction in Shanghai Stock Exchange for business undulation yet not having answered whether a big regrouping is taking place.

According to a well-informed source, Jiuquan Steel's parent JISCO, also it's controlling shareholder, submitted August 9th 2007 about making strategic cooperation with Kazakstan Eurasian consortium. The Kazakstan consortium may take a stake in JISCO through the CNY 300 billion worth of iron ore mine as was estimated.

Meanwhile, an unconfirmed source said JISCO top officials Ma Liehong, Zang Jiuhua etc have lately led a delegation to visit Kazakhstan and their cooperation agreement with the Eurasian consortium will soon be signed.

A source close to JISCO revealed the purchase talks between Eurasian consortium and JISCO were initiated a year before; the former found a specialist assessing institute to evaluate JISCO's assets and had hoped to take a stake by injecting capital then, very different from what happened later. It's believed the Kazakhstan company won't take majority stake in the deal; and if the shares are sold too low, the project would unlikely be approved.

The Eurasian consortium is a large size investment group in business of metallurgy, mining, energy, transport, finance and trade etc, with a subordinate in possession of the largest ore mine in Kazakhstan.

(Sourced from MySteel.net)

Acquisition battle for China Oriental goes to court

Bloomberg reported that China Oriental Group Co has sued its shareholder Ms Chen Ningning, who seeks to take over the Chinese steel maker, for breaching her duties as a director by giving false information to the company for personal gain. As per report, China Oriental has filed a writ of summons against Ms Chen and two companies controlled by her in Hong Kong's High Court.

Ms Chen, one of China's richest women, is China Oriental's vice chairwoman and second biggest shareholder with a 28%nterest. She's offering HKD 6.3 billion (USD 806 million) in cash and bonds for the rest of the company. The offer ends on August 31st 2007.

China Oriental's other board of directors, excluding Ms Chen, in July 2007 asked shareholders to take no action' on the offer, saying it was unsolicited and did not have the support of the board. It advised that “Controlling shareholder Wellbeing Holdings Ltd., which owns 42.8% of the steel maker has no intention to accept the offer.”

BlueScope forecasts increased steel demand in Australia

Mr Kirby Adams outgoing CEO of BlueScope Steel expects steel demand to grow in Australia in line with state government spending on infrastructure projects.

While releasing the results Mr Kirby said "If you go to build a new project, you can not get a crane. That is the best evidence I can give you about the underlying demand that is coming through the system on industrial, commercial and infrastructure projects in Australia."

Mr Adams also said that “If you look at the laundry list of projects that the governments have coming down the pipe whether it is in road, rail, transport, ports, hospitals, schools, it is a lot of spending that it going to drive steel into non dwelling applications."

Mr Adams said "This year, the global steel market was very strong with the forecast for global steel demand remaining positive. China, the USA and Europe are driving this healthy outlook. Asia now produces more than half of all the crude steel produced in the world, and China is the largest single market for steel and has the strongest demand growth of any country. While the Chinese government has been working to close and eliminate inefficient mills and reduce exports through its recent export tax, these initiatives have not significantly slowed production growth nor reduced the global effect of exports."

Mr Adams added that "Asian markets and opportunities are slightly improved and the operational ramp up of new sites is growing revenue while coated product margins continue to be under pressure, particularly in China.” However Mr Adams warned that while the Chinese government has been working to eliminate inefficient mills and reduce exports through its export tax, these initiatives had not significantly slowed production growth nor reduced the global effect of exports.

Shanxi Taigang to buy assets from parent

Shanxi Taigang Stainless Steel Co Ltd announced that its board has approved a proposal to pay CNY 3.73 billion in cash to purchase assets from its parent Taiyuan Iron & Steel (Group) Co Ltd. According to a statement published on the Shenzhen Stock Exchange, the company said it plans to purchase a blast furnace and sinter machine assets from TISCO.

Shanxi Taigang Stainless Steel will also buy a 100% stake in Shanxi Huijin Burnt Co from TISCO.

TISCO currently holds a 70.53% interest in Shanxi Taigang Stainless Steel.

Crude steel output of top 50 steel makers in China during 7 months

In million tonnes

(Sourced from MySteel.net)

US weekly steel production down by 0.3% YoY

American Iron & Steel Industries reported that in the week ending August 18th 2007, US’s raw steel production was 2.078 million net tons while the capability utilization rate was 87.8 %. Production was 2.086 million net tons in the week ending August 18th 2006 while the capability utilization then was 88.7%. The current week production represents 0.3 % YoY decrease from the same period in 2006.

Production for the week ending August 18th 2007 is up by 1.7% from the previous week ending August 11th 2007 when production was 2.043 million net tons and the rate of capability utilization was 86.3%.

Adjusted YTD production through August 18th 2007 was 66.812 million net tons at a capability utilization rate of 85.1%. That is a 5.5% YoY decrease from the 70.717 million net tons during the same period 2006 when the capability utilization rate was 90%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

US DOC launches NAFTA steel monitor website

US department of commerce has launched North American Steel Trade Committee’s North American Free Trade Agreement Steel Monitor website called www.NASTC.org, which will allow online public access to consolidated steel trade data from the United States, Canada and Mexico.

The NAFTA Steel Monitor is an online tool based on a prototype developed by US department of commerce officials working closely with NASTC’s government and industry members. This website provides detailed and timely trade statistics relevant to NAFTA partner countries and their steel industries in a user-friendly format based upon current national monitoring programs, such as the United States’ Steel Import Monitoring and Analysis system. The site contains summaries of intra NAFTA and external NAFTA steel trade data, as well as notable changes in NAFTA steel import trends. Data is provided at both yearly and monthly levels and will be updated on a monthly basis. The NAFTA Steel Monitor also features several helpful resources, including links to individual country monitors and the NAFTA Guide to Customs Procedures.

Mr David Spooner assistant secretary for US import administration said that “Today’s launch of the NAFTA Steel Monitor is yet another success in the US department of commerce’s continued effort to provide information to the public in a timely and transparent manner. This website will allow interested parties to more efficiently navigate through the most current statistical data to find information on steel trade into and out of the NAFTA region.”

North American Steel Trade Committee, for which commerce serves as the United States chair, is a government industry collaboration that provides a forum for promoting continued cooperation on policy matters affecting the North American steel market and industry.

Shenhua's H1 earnings up by 19.8% YoY

It is reported that China Shenhua Energy Company Ltd the world's second largest coal producer by reserves posted a 19.8% rise in January to June 2007 earnings due to higher prices and sales volume. China's top coal producer made a net profit of CNY 10.315 billion (USD 1.36 billion) in the January to June period against CNY 8.607 billion a year earlier.

Shenhua has stepped up mining to fuel power plants and steel mills across the world's fourth largest economy, selling 21% more coal in the first six months or 97.8 million tonnes. Shenhua exported 12.2 million tonnes of coal in January to June 2007 down by 1.6% from January to June 2006.

Shenhua said in a statement that demand for coal would continue to experience comparatively strong and steady growth in the rest of the year and spot price for coal would generally remain high despite certain fluctuations. It said it is in talks to buy coalmines in Indonesia and Australia, two of the world's largest coal shippers. Shenhua has also said it planned to buy Shendong Coal and Shendong Power major players in northern China from its parent for a total CNY 3.3 billion.

Utah mine collapse not triggered by earthquake

As rescuers officials conceded Sunday that 6 miners trapped underground by a mine cave in could be permanently lost inside the still shifting mountain, US seismologists continue to insist that an earthquake did not trigger the collapse. While owners of the Crandall Canyon mine said that an earthquake is responsible for the mine's initial collapse and subsequent seismic bumps that caused Thursday's cave in, scientists disagree.

Ms Kris Pankow assistant director of the U's Seismograph Stations said what was mistaken for a 3.9 magnitude quake appears to have been the mine caving in on itself not a natural shift in the earth. She added that what probably happened is that you had coal pillars collapse. The data is not consistent with an earthquake. She also added that subsequent smaller seismic bumps that have crippled rescue efforts are likely red adjustments in the mine.

While Ms Pankow said she has no information about practices within the mine, she said the location of the collapse is uncertain because seismograph stations that recorded the impact were not located close enough to the mine. She added that the U stations hope to get information from the mine's owners to determine the precise time and location of the collapse. We don't have the full picture yet.

Mr Richard Stickler head of the federal Mining Safety and Health Administration said "The mountain continues to be active, continues to move. As the weight causes pillar failures in one area of the mine, then that weight is shifted to adjacent pillars, and that process seems to be migrating out from the original area where the bump activity started.

Taiwanese Mayer Steel Pipe Corp merges with Mei Kuan Metal

Taiwan based Mayer Steel Pipe Corp Ltd announced that it would merge with Mei Kuan Metal Co Ltd. Mayer Steel said that the merger is expected to be completed on September 30th 2007 and after the merger Mei Kuan Metal Co Ltd will cease to exist.

Mayer Steel Pipe Corp is the first specialized manufacturer of steel pipes and tubular products in Taiwan. It produces and sells high quality of steel pipes and tubes. Across all tubular product markets from steel tubes for general structural purposes to steel conduits, galvanized steel pipes and gas line steel pipes.

Belon completes construction of concentration plant

Novosibirsk based coal and metals group Belon announced that it has completed the construction of Listvyazhnaya concentration plant in the Kemerovo region at a cost of RUB 3 billion.

Governor Mr Aman Tuleyev while at the signing of the report approving the plant for commercial operation said that the plant, which will process G and D brand steam coals has capacity to process 6 million tonnes of coal per year and in future it can be expanded by another 25%. He added that the plant would now test its equipment and start commercial operations in September 2007 reaching full design capacity in 2008.

Mr Andrei Dobrov GD of Belon said that in future the plant will use only the company's own coal mined at the group's Listvyazhnaya mine which the company is now modernizing and expanding. He added that the group has plans to build a mini power plant with capacity of 50 MW that will be fuelled by the company's coal and supply electricity to the mine and plant complex.

Mr Dobrov said that in addition, in future Belon plans to improve coal concentration technology in order to reduce ash content in concentrate to less than 2% from the current 3.5 to 3.7%. He added that "We are thinking about how to do this, are conducting experiments, have patented technology and plan to set up trial production. Achieving this quality of concentrate would give us access to new markets, and enable us to make products with a higher price."

The mine produced 1.6 million tonnes of coal in 2006 and is expected to produce 2.7 million tonnes in 2007. Production is targeted to grow to 3.5 million tonnes next year and to 6 million tonnes per year by 2010.

The Belon group includes various coal companies in Kemerovo region the Chertinskaya Koksovaya, Listvyazhnaya, Novaya 2 and Kostromovskaya mines, Novobochatsky 1 and Novobochatsky 2 strip mines, the Belovskaya and Listvyazhnaya washing plants and various service and transport companies.

voestalpine may delay issue of hybrid bond

Thomson Financial reported that voestalpine AG might delay the issue of a hybrid bond planned for September 2007, which will be used to finance its acquisition of Boehler Uddeholm AG due to the current market volatility.

The report cited Mr Wolfgang Eder CEO of voestalpine AG said that "It's not certain if we will still issue the hybrid bond in September. It can also be placed at a later date we are waiting to see what happens in the financial markets."

voestalpine AG has twelve months to issue a hybrid bond of between EUR 750 million and up to EUR 1 billion and has also plans for a classic corporate bond, which will put an additional EUR 500 million.

OneSteel reassures workers about merger

It is reported that OneSteel has reassured its South Australian workforce that their jobs are safe under the company's merger with Smorgon Steel.

Mr Mark Gell GM of corporate development and sustainability of OneSteel said that its operations in South Australia will not be negatively affected by the deal adding that Whyalla, in particular, is a core part of the business.

Mr Gell said "The Whyalla steelworks are what we term the engine room of the organization. The bulk of our steel is produced through that facility.”

He added that "The iron ore mine is obviously creating significant value for the organization, which allows us to make investments into the future to keep growing the business."

Baosteel Group Co Ltd ranked Class A Enterprise

It is reported that China’s State owned Assets Supervision and Administration Commission of the State Council announced the result of operation performance 2006 of the responsible persons of the national enterprises and meanwhile measured and assessed the performance result of seven pilot enterprises of the board of directors in accordance with the Law of Corporation and the performance result of Baosteel Group Co Ltd is Class A.

Last year, facing the severe situation of intensive competition in globe steel industry, strain resources worldwide and steel production cost rising, Baosteel positively pushed forward the integration management, optimized the flow, enhanced technology innovation, optimized investment structure, promoted reconstruction of steel enterprises and enhanced his efforts on energy saving, discharge reducing and environment protecting, which have gained delightful achievement
1. Steel capacity of 22.532 million tonnes
2. CNY 180.681 billion of sales revenue up by 2.56% YoY
3. Consolidated profit of CNY 22.577 billion up by 2.27% YoY

In 2006, there are 150 national enterprises in total brought into the range of the examination by SASAC. During the examination, SASAC earnestly determined the performance result based on Interim Method on Operational Performance Examination of the Responsible Person of the National Enterprise and the engagement on operational performance liability, sticking to the principle of one industry, one scale and the same factor, the same disposal, strictly checking on the enterprises with the performance result of Class A and conscientiously examining the problems concerned with Class D and E enterprises, adequately adding marks for companies that are trustees of other enterprises resulting in operation difficulties and respectively deducting marks from or downgrading the companies that have rather severe production and safety liability accidents, breaches rules and principles or have serious financial management problem. After performance measurement, A Class has 34 enterprises, accounting for 22.67% of the total companies measured; B Class has 77, accounting for 51.33% of the total measured; C Class has 35, accounting for 23.33% and D Class has 4 companies, accounting for 2.67% of the total.

Tokyo Steel increases H beam and plate prices

JMB reported that Tokyo Steel Manufacturing announced that it has increased of the selling price by JPY 2,000 to JPY 5,000 per tonnes for long and plate products for distributors for September shipment, for which the firm accepts the order until Wednesday.

The H beam price reaches JPY 80,000 per tonnes both for distributors and direct sales to users through the JPY 3,000 hike which is first hike in 6 months. The plate price reaches JPY 83,000 under the strong demand after the JPY 3,000 hike.

Kazakhstan plans to mine 130 million tonnes of coal by 2015

It is reported that Kazakhstan, which has the world’s eighth biggest reserves of coal, has raised its production target for the fuel by one third as the country’s booming economy fuels an increase in power consumption.

The report cited energy ministry of Kazakhstan as saying that Kazakhstan the biggest energy producer in the former Soviet Union after Russia plans to mine as much as 130 million tonnes of coal a year by 2015. The Kazakh government had earlier forecast output of 100 million tonnes.

Hyundai Steel restarts SS plant after 1 week shutdown

Korea's second biggest steelmaker, Hyundai Steel Co announced that it has resumed production of cold rolled stainless steel after a week long halt.

Hyundai Steel had shut the Incheon plant for the product on August 13th 2007 due to falling demand.

Zamil Steel to supply PEB to Hazma Corp in Vietnam

VNA reported that Zamil Steel Vietnam signed a USD 3.7 million contract with Japanese Hazama Corporation to design and construct a factory for Uniden Vietnam Co Ltd, a producer of wireless telephones.

The new manufacturing facility will be located in the Tan Truong Industrial Zone in the northern province of Hai Duong. The contract has been implemented and construction will be completed in November 2007.

According to Zamil the factory will measure over 60,000 square meter, comprising four buildings utilising the MaxSEAM roof system, one of the strongest and most weather-tight standing seam systems.

Mr George Kobrossy GD of Zamil said "We are proud to be the supplier for Uniden Viet Nam Company. The contract proves that we are able to undertake large projects in a short time while keeping our commitment to quality products. Zamil Steel is now one of the leading prefabricated steel suppliers in Vietnam. However, we are aware that we must make great efforts to maintain the position."