Jharkhand extends Mittal Steel and TATA Steel MoUs

It is reported that Jharkhand government has extended the tenure of MoU, it had signed with TATA Steel and Mittal Steel for setting up of steel projects by 3 years as the duration of the MoUs expired recently.

According to official source, the decision to this effect is taken by a high level meeting chaired by Mr PP Sharma chief secretary of Jharkhand after both the companies made representations saying that the work on the projects would start as soon as they acquire the required land.

Mr Madhu Koda chief minister of Jharkhand has said that his government was serious in bringing out a rehabilitation and resettlement policy at the earliest. However, he said, the absence of R&R policy should not hinder acquisition of land because investors could make direct approach to the landowners.

Mittal Steel had committed on October 8th 2005, to set up a mining and steel making operation in the state entailing an estimated INR 40,000 crore with a proposal to develop the project in 2 phases of 6 million tonnes each.

TATA Steel had also singed a MoU in 2005 with Jharkhand to set up a 12 million tonnes steel project at INR 42,000 crore.

JSL inks MoU with Vietnam for ferrochrome plant

It is reported that Jindal Stainless Limited has signed a MoU with the Vietnam government to set up a 0.2 million tonne ferrochrome plant in Vietnam.

Mr Ratan Jindal vice CMD of JSL said that "China has no ferrochrome and is producing 8 million tonne of stainless steel so we will take advantage." He added that work on Vietnam ferrochrome plant will start soon and the first phase will have a capacity of 60,000 tonne.

Ferrochrome prices in the global market have surged during this year and are expected to further increase in this quarter. As it is one of the main ingredients in SS manufacturing, JSL plans to secure the same and has already built a capacity of 150,000 tonne of ferrochrome in Orissa.

CPI (M) opposes additional land allocation to TATA Steel

PTI reported that Orissa’s unit of CPI (M) has strongly opposed the Orissa government's reported move to allot nearly 40 acres of additional land to TATA Steel for its proposed fabrication unit in Jajpur district and has threatened to launch an agitation against the move.

Threatening to launch a statewide agitation against the government's move, Mr Santosh Das CPI (M) state secretariat member described the government's move as illegal. CPI (M) warned the government that it would invite trouble, if it did not refrain from handing over Industrial Development Corporation's land to TATA Steel.

He added that "How can government dare to share Industrial Development Corporation's land with TATA Steel. The government should go for expansion of the Industrial Development Corporation's ferrochrome plant instead of leasing out its land."

As per report, TATA Steel, which was already allotted nearly 3,500 acres of land for setting up its 6 million tonnes per annum capacity plant at Kalinga Nagar industrial complex, had asked Industrial Development Corporation for more 40 acres of land to set up its fabrication unit.

SAIL RSP donates shopping complex to Orissa villagers

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has constructed and donated a shopping complex comprising 10 shops to the Jalda gram panchayat in Orissa as part of its corporate social responsibility.

Mr BN Singh MD of RSP recently inaugurated the complex and handed over the keys to Mr C Bhumij sarpanch of Jalda gram panchayat.

IAEA sees nuclear energy as the engine of growth for India

International Atomic Energy Agency has called on India to make use of nuclear technology to improve the lives of its people despite issue of safeguards.

Dr Mohammed El Baradei chairman of IAEA after meeting with the Mr Pranab Mukherjee external affairs minister of India told media that “As a friend of India I would like to see India get state of the art nuclear technology and hopefully, it would be able to make full use of the nuclear technology.

Dr Baradei said he was aware of the ongoing domestic political dialogue on the nuclear issue, and that there was no deadline for India interacting with the IAEA. He said “The safeguard issue is not a significant issue. I did not ask the External Affairs Minister when talks with the IAEA would start, nor did he tell me.”

IAEA chief felt that both India and China could make use of nuclear energy for the benefit of their people. He said “Nuclear energy can be an engine of growth and lift the people, especially those living at less than USD 1 a day. It could also help the country achieve and sustain high growth in the economy.”

CEA identifies 22 power plants as critical

It is reported that Central Electricity Authority has identified 22 of the total 74 power stations in India as critical due to non availability of coal. Out of 22 critical power stations, 9 are in the eastern region, 8 in the northern region, 3 in the western and 2 are in the southern region.

The 22 critical power stations identified by the CEA are

Eastern plants
1) Kahelgaon
2) DVC Durgapur
3) Bandel
4) Kolaghat
5) Bakreswar
6) Santaldih
7) New Cossipore
8) Farakka
9) Talcher Super Thermal

Northern plants
1) Obra
2) Anpara
3) Tanda
4) Badarpur
5) Bhatinda
6) Lehra Mohabbat
7) Singrauli
8) Rihand

Southern plants
1) Ramagundam
2) Rayalseema

Western plants
1) Torrent
2) Vindyachal
3) Chandrapur

The critical power stations are currently running on a coal stock for less than 7 days. According to rules, the power stations should hold stocks for 15 to 30 days, depending on the category.

HZL lowers zinc price by 2.8%

It is reported that Hindustan Zinc Limited has lowered the price of zinc for the second time in less than a week.

HZL reduced the price of zinc by INR 4,000 or 2.8% to INR 135,400 (USD 3,443) per tonne effective October 11th 2007.

HZL had last lowered price by 0.5% on October 6th 2007.

Punjab inks MoU with DMRC for metro rail in Ludhiana

It is reported that Punjab government signed a MoU with the Delhi Metro Rail Corporation on October 9th 2007 for starting metro rail services in Ludhiana. Also, a similar rail system is being proposed for Amritsar and Mohali.

According to the MoU the detailed project report will be prepared by the Delhi Metro Rail Corporation by May 2008. After receiving the DPR, the project will be bid out for construction and will have an estimated cost of INR 3,000 crore. The project is proposed to be developed through the public private partnership on built operate own mode.

After the DPR, the construction is likely to start within a year and the first phase of the metro rail, proposed to be about 25 kilometer is likely to be completed within four years.

ABG's Dahej shipyard to commission by March 2008

ProjectsToday reported that ABG Shipyard is expected to complete work on its new shipyard at Dahej in Gujarat by March 2008.

The proposed facility would have 2 large dry docks admeasuring 400 meter length, 45 meter breadth and 10 meter in depth, fabrication, assembly sheds and administrative offices. The project entails an investment of INR 375 crore.

To part finance the project, ABG Shipyard had offered 23% stake to Stanchart Private Equity Fund and 7% to Leverage India Fund.

India and Myanmar to jointly develop Kaladan Port

It is reported that India and Myanmar is likely to sign a formal agreement on the Kaladan seaport project.

The project involves a major upgrade of infrastructure at Sittwe, located about 250 kilometers from the Mizoram border on the northwestern coast of Myanmar where the Kaladan River joins the Bay of Bengal. The proposed multi modal transport project also involves building of roads and waterways in Mizoram and Myanmar that would connect Kaletwa in Myanmar with the National Highway 54 at Nalkawn in Mizoram.

The Sitwee port situated on the Kaladan River in Myanmar will open India's landlocked northeastern states Assam, Manipur, Meghalya, Mizoram, Tripura, Sikkim, Nagaland and Arunachal Pradesh to the international trading routes through the Bay of Bengal.

SER posts best ever freight earning in H1

It is reported that South Eastern Railway achieved its best ever freight earning in the H1 of 2007-08 when it earned INR 2,475 crore up by 8.3% YoY as compared to h1 of 2006.

The release noted that growth has taken place in all sectors with a substantial increase being achieved by targeting additional loading in general merchandised goods of a total of 52.23 million tonnes.

SER has been able to generate additional earnings of INR 190 crore compared with last year with no additional resources.

UMPP in Orissa

It is reported that Mr Sushil Kumar Shinde Union energy minister said that an ultra mega power project based on coastal coal would be set up in Orissa soon.

He added that the ultra mega power plant would have a capacity of 4,000 MW entailing an investment of INR 16,000 crores and would be fuelled by imported coal.

Mr Shinde while answering the environmental concerns regarding the power project he said that super critical technology to reduce emission would be installed.

KoPT gives technical clearance to Badur shipyard

It is reported that board of trustees of Kolkata Port Trust has given technical clearance to the proposal of Bengal Shipyard Ltd, a JV between Bharati Shipyard and Apeejay Group, to set up a shipyard at Badur.

Officials of Kolkata Port Trust said that "Our clearance is based on the assessment that the construction of the shipyard with a long waterfront will in no way interfere with the movement of ships along the navigable channel of the Hooghly River."

The land requirement is estimated at 400 acres and the project cost at INR 2,000 crore.

Investment in hydro sector called for

Mr Anil Razdan power secretary took the opportunity of inviting investments in the hydro sector in the ongoing forum India Electricity 2007 in New Delhi.

He said the first fruits of the power ministry's 50, 000 MW hydro initiative would be delivered in the 11th Plan, while the 12th will be the hydro achievement plan with most of these projects slated for commissioning in the next Plan.

He added that the ministry is making strategies for attracting more investment in the hydro sector and is currently working on the resettlement and rehabilitation strategies that pose a major problem in the development of large hydropower projects.

Global approach for steel to address climate change

Following on from the seven Climate Change Policy Commitments made this March, leaders of the world steel industry have endorsed a global approach as the best way for steel to help address climate change. At the annual meeting of the International Iron and Steel Institute in Berlin, the board of directors of IISI approved the next stage in the establishment of a global sectoral approach for steel.

This involves the collection and reporting of carbon dioxide emissions data by steel plants in all the major steel producing countries. Establishment of the data on a common and consistent basis is the starting point for the setting of commitments post 2012 on a national or regional basis.

Through major advancements in technology the steel industry in North America, Western Europe and Japan has reduced energy consumption per unit of production by 49% in the last 25 years. However, at the same time there has been a dramatic expansion in global steel production. The steel industry now accounts for only 3% to 4% of global man made greenhouse gas emissions. Over 90% of steel industry emissions come from iron production in nine countries or regions Brazil, China, EU 27, India, Japan, Korea, Russia, Ukraine and the USA.

Mr Philippe Varin IISI Executive Committee Member & CEO of Corus said “Cap and trade regional policies such as those currently used in the EU are not effective in reducing carbon dioxide emissions. Constraining production from the best emission performing plants is not the solution for a globally competitive industry such as steel. An effective approach for the steel industry requires the participation of all major steel producing countries and a focus on improving emissions per unit of production.”

He added that “In the near term the steel industry’s main contribution will be in the wider application of current best practice and technology. For the longer term the steel industry is investing in research on the development of breakthrough new steelmaking technologies. This is all in the context of the essential contribution that steel, the most recycled modern material, now makes in sustainable housing and construction, clean energy and transportation.”

Japanese firm may build a steel plant in Bahrain

It is reported that a USD 1.2 billion steel plants is being planned in Bahrain as demand for steel and other building materials soars in the Gulf. An executive working on the project said that Gulf firms and a subsidiary of Japanese company Yamato Kogyo are in talks with banks to raise funds for the plant.

Yamato Steel is working on the project with a Gulf Arab consortium called Foulth that includes steel and chemical maker Industries Qatar and Kuwait based Gulf Investment Corporation. Other investors in Foulth include Kuwait's National Industries Group and the Kharafi Group.

The complex, located near two other steel plants owned by Foulth will have capacity to produce 3.5 million tonnes of three types of steel a year.

The head of Gulf Investment Corporation's manufacturing division Khaled Al Qadeeri said that the firms are talking to lenders HSBC, Arab Banking Corporation, BNP Paribas to act as arrangers.

Tenaris pledges to stay independent rules out any takeover

Financial Times reported that Tenaris SA CEO and main shareholder Mr Paolo Rocca has pledged that the Luxembourg based steel pipes maker will remain independent, ruling out any possible sale to ArcelorMittal.

Mr Rocca in an interview with the Financial Times said that “We are happy to stay independent. There is a huge opportunity in this business and we do not want to be bought by Mr Mittal or anyone else.”

In recent weeks, there has been speculation of a possible takeover bid from ArcelorMittal.

Tenaris is 60% owned by Mr Rocca's family engineering group Technint.

Vietnam may reduce tariffs on finished steel imports

It is reported that Vietnam’s price management department, under the ministry of finance, is considering cutting tariffs on imported steel products from 8% to 2%, which is equal to the rate imposed on semis, to pave the way for more imports into Vietnam.

The price management department forecasts that price increases for steel products in the near future and this move would help stabilize the market and prevent a price surge at yearend during the annual rush of the construction season.

According to MOF’s Price Control Department, no steel mill has announced price increases so far this month after the adjustment at the end of September. However, the steel price is expected to increase by VND 200 to VND 400 per kilogram later in October due to the skyrocketing price of ingot steel.

On the domestic market, local mills sell rebars at VND 9,850 to 10,500 per kilograms while the retail price is VND 12,000 per kilogram on an average.

Gerdau seeking partners to expand in Asia

Bloomberg reported that Latin America's largest steel maker Gerdau SA plans to pursue partnerships with Asian companies as it seeks to boost sales to the region's growing auto industry.

Mr Andre Gerdau Johannpeter CEO of Gerdau SA in an interview at the International Iron and Steel Institute's annual meeting in Berlin said that “We foresee a huge growth in automotive production, which consumes a lot of steel. Our strategy in India has been to use a partner and in China and other parts of Asia we will probably do the same.''

Gerdau bought a 45% stake in India's SJK Steel Plant Ltd in June and also has operations in the US, Canada and Spain.

Mr Jorge Gerdau, Mr Andre's father, began the company's expansion outside of Brazil almost two decades ago and is now North America's second largest producer of long products.

Gerdau seeks to control costs and maintain prices through expansion, allowing the company to win biggest discounts from suppliers while reducing competition that might undermine steel prices.

Tenaris concludes long term supply agreement with QIT

It is reported that Tenaris has concluded a 10 year round billet supply agreement with QIT- Fer et Titane Inc for its seamless pipe operations in Canada.

Under the new agreement, QIT- Fer et Titane Inc will supply specified billet grades from its facilities at Sorel-Tracy in Quebec to the Tenaris mill at Sault Ste Marie in Ontario. The supply will cover more than 50% of the mill's total needs.

Mr Alberto Iperti Tenaris area manager for Canada said that “This long term supply agreement with QIT will secure a Canadian source of steel billets which will strengthen our supply chain. It will help us to reduce lead times when serving our customers and strengthen our capability to provide the Canadian oil and gas industry with high quality products designed to meet the specific needs of the Canadian industry.”

Tenaris first made contact with QIT, the only continuous caster for round bars in Canada, as early as 2001. The following year, a feasibility analysis was conducted and Tenaris employees began working with QIT to develop a product specifically designed for the Canadian market.

QIT is a leading world producer of titanium dioxide feedstock and high purity iron for specialized steel products.

Nippon to buy semi finished steel from Usiminas from 2011

Nikkei, citing Mr Akio Mimura president of Nippon, reported that Nippon Steel Corp plans to start in 2011 purchasing 1 million tonnes a year of low cost semi finished steel from its Brazilian affiliate Usiminas.

The report cited Mr Mimura as saying that “We will position Usiminas as a supply base for South America, Europe and the US.”

The report said that the move is the first concrete step in Nippon Steel's collaboration with Usinas Siderurgicas de Minas Gerais SA, which it turned into an equity method affiliate last year after increasing its stake, the business daily said.

Usiminas is investing JPY 1 trillion to build new and enlarged blast furnaces, aiming to boost annual output of crude steel by 60% to 14 million tons by 2011.

NDRC releases first round capacity elimination report

China's National Development and Reform Commission recently published a list of enterprises that have eliminated inefficient steel capacity during the H1 of 2007.

According to the NDRC, ten provinces and regions, including Hebei and Shanxi, were involved in the first-round elimination. To date, the ten regions have eliminated 9.69 million tons of steel capacity and 8.73 million tons of iron capacity, both of which were using outdated technology. These steel and iron capacity reductions account for 43% and 36% of their respective capacity elimination targets for the whole year.

The first round obsolete steel capacity elimination during H1 2007 is as under

A) BF

In million tonnes
B) BOF

In million tonnes

C) EAF

In million tonnes

Highveld to sell Rand Carbide

It is reported that Evraz’s Highveld Steel & Vanadium has agreed to sell its Rand Carbide division to Silicon Smelters, a subsidiary of Ferro Atlantica for ZAR 300 million.

Highveld Steel & Vanadium in a statement said that “The board of directors will consider possible uses of the proceeds and until such time the funds will be invested.”

Rand Carbine, which produced ferrosilicon, electrically calcined anthracite and char, was seen as a noncore business.

Rand Carbine had been bought in 1978 and held a 50% share of the local market of ferrosilicon. It also held a 10% share in both the electrically calcined anthracite and char markets. The global market share of all these products was insignificant.

Queensland to invest in rolling stock to improve coal movement

Brisbane Times reported that Queensland government would invest a further AUD 654 million in rolling stock and infrastructure for the coal export system.
1. AUD 221 million for 25 electric locomotives
2. AUD 102 million for 15 diesel electric locomotives
3. AUD 271 million for 1,190 wagons
4. AUD 60 million for track related infrastructure.

The government has also given in principle approval to a second stage of purchases, worth AUD 216 million for 920 wagons to meet demand in 2010-2011.

Premier Anna Bligh said that it was one of the largest rolling stock orders in the state's history. Ms Bligh said that added to existing investments it brought the state's total spending on rolling stock to AUD 2.05 billion.

Ms Bligh said the spending would dramatically increase the state's capacity to take coal to export. He said that "In just four to five years we will see this investment deliver an increase in the amount of volume we can rail out to port of 59%. Coal exports are vital to the Queensland economy. This massive infrastructure investment by our government will ensure the continued growth of our booming coal market."

6 injured in zinc spill at JFE galvanizing plant at Chiba

It is reported that JFE Holdings Inc's galvanizing unit halted production at a mill after molten zinc spilled from a container, burning six workers who had to be hospitalized.

Mr Toshikazu Fujiki a spokesman for the JFE unit said that the accident happened at the JFE Galvanizing and Coating Co plant at Chiba in Japan and JFE was yet to determine when production would resume.

JFE galvanizing unit, 98% owned by JFE Holdings had sales of JPY 80.2 billion (USD 683 million) in the year ended March 31st 2007 and had 603 employees. JFE Holdings reported revenue of JPY 3.3 trillion in the past financial year.

TMK pipe shipments in 9 months up by 6.3% YoY

TMK has announced its production results for the January to September 2007 period. During this period, TMK shipped 2. 369 million tonnes of steel pipes up by 6.3% YoY as compared to January to September 2006.

Volumes of shipped pipe products is as under

Shipped refers to shipped from TMK plants for subsequent sale to customers

Mr Konstantin Semerikov CEO of TMK said “Favorable dynamics in production volumes in the first nine months of the present year show the first results of our strategic program aimed at increasing our volumes in the high margin seamless pipes segment. We managed to considerably increase shipments of seamless products, including shipments of high value-added pipes, in spite of a high load factor in production capacity. Steady demand from the Russian oil and gas sector also contributed to this increase. Shipments of industrial seamless pipes grew as a result of an increase in production after the commissioning of a new rolling mill at TMK-Artrom. A small decrease in welded pipe shipments was caused by general market trends.”

Philippine nickel ore export to China in September dips

Bloomberg reported that Philippine nickel ore shipments to China fell for a second month in September after demand for the metal used in stainless steel dropped.

According to Bureau of Customs data obtained by Bloomberg, exports from the southern Philippines, which accounted for more than 90% of the nation's nickel ore shipments last year, nearly halved to 326,538 tonnes in September from 595,931 tonnes a year earlier after shipments fell 59% YoY in August 2007.

Macquarie Bank Ltd’s analysts said that demand for nickel declined causing a drop in sales for nickel pig iron producers and an overhang of limonite ore stocks at Chinese ports. They added that Chinese production cuts and reduced stainless steel output has left about 4 million tonnes of limonite ore sitting at Chinese ports. The recent rally in prices may encourage some resumption of output.

Philippines is China's biggest supplier of low grade nickel ore which can be processed into pig iron containing as much as 3% nickel. China stepped up production of nickel pig iron this year after the price of nickel reached a record. But Chinese demand fell as nickel prices declined and after officials in August ordered the closure of small nickel pig iron furnaces to save energy and improve the environment.

Chinese miners to buy more overseas assets

Citigroup Inc said that mining companies in China, the largest consumer of copper, iron ore and coal, are likely to buy more metal deposits and oilfields in Africa, Latin America and Australia to feed rising domestic demand.

Mr Alexander Molyneux Citigroup's head of metals and mining in Asia said Aluminum Corp of China's purchase of Peru Copper Inc in August 2007 for AUD 860 million signals the start of overseas takeovers by Chinese companies.

Mr Molyneux said that “The next merger and acquisition theme we will see here is offshore in commodities where China is short. We have got more to come, particularly in copper, iron ore and nickel. Australia, Africa, Latin America and nations in Southeast Asia are deemed to be China friendly and deals are more likely there.”

Sumitomo and Vallourec’s Brazilian seamless JV facing hurdles

Bnamreicas reported that a JV between Japanese group Sumitomo Metals and French steel tube maker Vallourec to produce seamless pipes in Brazil's Minas Gerais state is facing opposition by environmental groups.

The paper added that the board of state environmental council Copam has decided not to discuss the project's environmental license during an October 5th 2007 meeting due to lack of details on the license request.

A spokesperson with state environmental department Sisema told BNamericas that Copam wants to first evaluate and debate the complaints by environmental groups, which claim the USD 1.6 billion project will destroy forests. The official said “Another meeting will likely occur toward the end of October, but there's no way of knowing if this issue will be debated."

The 600,000 tonnes per year pipe project is scheduled to start operations in mid 2010, with Sumitomo and Vallourec each entitled to 300,000 tonnes per year. The unit will also have a 1 million tonnes per year crude steel mill from which some 700,000 tonnes per year will feed the pipe plant and the balance belong to the French company.

Sinosteel sees 25% increase in iron ore prices

Bloomberg reported that Sinosteel Corp expects the contract price for the steelmaking ingredient to gain 25% next year driven by increased demand.

Mr Hongsen Wang MD of Sinosteel Indian operations said that “China's demand is unstoppable. Supply continues to lag demand.”

Mining companies including BHP Billiton Ltd the world's largest and their customers begin annual contract talks this month to settle the price of ore shipments from April.

However Mr Wang's forecast is less than the 30% gain in the price estimated in a Bloomberg survey of eight analysts last month.

Sumitomo Metals refutes reports of alliance with TATA Steel

Sumitomo Metals has clarified that there is no truth media reports that Sumitomo Metals will form an alliance with TATA Steel.

Nikkei had recently reported that Japan's top four steel makers Nippon Steel Corporation, JFE Steel Corporation, Sumitomo Metal Industries Limited and Kobe Steel Limited are planning to double their overseas production of automotive steel sheet in three years to capture a combined 40% share of the market.

As per earlier report, JFE Steel will soon outsource production to ThyssenKrupp to provide products to European plants of companies such as Toyota Motor Corp, Sumitomo Metal will outsource production to TATA Steel to supply Japanese automakers in Europe. Kobe Steel has begun considering expanding its JV with US Steel and Nippon Steel plans to spend more than JPY 100 billion to double overseas output, which is currently at just under 3 million tonnes per year.

Voestalpine sees EUR 81 million synergy in Boehler-Uddeholm takeover

Thomson Financial reported that Austrian steel producer voestalpine AG purchase of a controlling stake in Boehler Uddeholm AG has already resulted in cost savings of more than EUR 81 million, well above the EUR 65 million it had originally targeted for the current year.

Mr Wolfgang Eder CEO of voestalpine at a steel industry meeting in Berlin saying that he believes his company can achieve several more million euros in cost savings.

Société Nacionale de Sidérurgie H1 profits surge by 53% YoY

It is reported that the Société Nacionale de Sidérurgie has achieved an increase of 52.5% YoY of net profits during January to June 2007 period.

Société Nacionale de Sidérurgie in a statement that its net profits during January to June 2007 period rose up to AED 494.8 million as compared to AED 324.5 million in January to June 2006 period up by AED 170.3 million. Based on the same preceding source, the company had achieved a growth in sales by 20.6% up to AED 3.264 billion.

Société Nacionale de Sidérurgie said that its sales witnessed a recovery thanks to different construction activities, regardless of whether they are relating to housing or to constructing roads or tourist projects. The company expected this recovery to continue during the next year.

ArcelorMittal increased its share in Société Nacionale de Sidérurgie in June of last year to make it an expansion base in North Africa.

2 workers beaten to death at Fuxin Steel in China - Report

The Epoch Times reported that when workers from the Fuxin Steel Ltd in Tongling demanded that the owner fulfill his promise for housing that they had already contributed to, they were met with a hired gang that fiercely beat the workers with blunt weapons. As per report, the incident killed two and left 14 others severely injured.

The report cited an eyewitnesses account as “ “Around noon on September 26th, dozens of workers went to the factory to demand a resolution to the housing issue. When they were about 150 feet from the factory doors, 200 armed men came out of nowhere and started beating anyone in sight. They were even hitting women and old people. Cops were standing about 30 feet away, but they just stood and watched. Two workers were beaten to death, and many more were injured.”

The assault ignited the rage of thousands of factory workers and they marched in downtown Tongling in protest and a large number of police were deployed to keep the situation under control.

As per report “The factory charged everyone a CNY 50,000 housing fee and promised to improve the housing situation but nothing has been done to change things.”

The Epoch Times reported that the local authorities are actively censoring information on this matter and postings on online forums have been quickly deleted.

Tongling Fuxin Steel Ltd was established in 1970 and the Tongling city government sold it to a private enterprise in Fujian province in 2005.

Interpipe to increase production of API grade pipes

Ukrainian steel pipe and wheel producer Interpipe has announced its plans to increase production of tubing with enhancements to production facilities in accordance with API 5CT / GOST 633 at its Interpipe Niko Tube facility.

The new project will see the installation of new equipment for wet magnetic inspection of pipe ends provided by Czech companies PTS Josef Solnar and Prestar. The enhancement, which is already underway, is being overseen by Starokramatorsk engineering. As part of this project, Interpipe is also replacing its straightening press on its heat treatment line with new equipment that will be provided by British firm Bronx Tailor Willson.

Completion of the upgrade to production lines toward the end of 2007 will see line capacity increase to 36,000 tonnes per year. The total production capacity of tubing with upset ends at Interpipe Niko Tube facility will be 62,000 tonnes per year after completion of this investment project.

Mr Andrey Korotkov director for production and investment of Interpipe said that “This step in our investment program gives Interpipe new capability to produce 88.9mm pipes as well as pipes of higher durability with a broader range of applications.”

Interpipe is the ninth largest steel pipe producers in the world. In August, Interpipe’s two facilities have gained pre qualification from the Abu Dhabi National Oil Company and have been approved for inclusion in the Kuwait Oil Company’s approved list of manufacturers for oil and gas pipes produced in accordance with API 5CT.

Vietnamese rolling mills halt production due to high semis prices

VietNamNet Bridge reported that rolled steel in Vietnam is now in serious shortage as steel mills have halted production due to the rocketing ingot steel price and the finished product price have soared to VND14.5million per tonnes. In fact, the shortage of rolled steel began in early September 2007, and the situation has become worse as most steel mills have halted production or decreased their output.

As per report, at this moment, only Hoa Phat and Viet Han products are available on the market and Thai Nguyen’s and VIS’ brand names seem to have disappeared from the market.

According to Mr Hoang Van Tong deputy director general of Thai Nguyen Cast Iron and Steel Corporation, the corporation has turned off its 700 tonne per day production line, waiting for replacement accessories from Italy. The production line will be put back into operation in October. Meanwhile, the production line at Luu Xa mill has the low capacity of 380 tonnes per day to 400 tonnes per day and only laminates steel when very necessary.

According to Mr Le Ngoc Son deputy director general of VIS, the market is lacking rolled steel because enterprises do not like making rolled steel due to low profit. While ingot steel for making rolled steel is just VND 100,000 per tonnes lower than that for making bar steel, rolled steel is always VND 300,000 per tonne lower than bar steel.

Mr Dinh Van Tam director of Viet Han Steel Company also said that his company was not making rolled steel recently due to low profit. The highest output of the company is 5,000 tonnes, while the lowest is 3,000. Mr Tam said that no steel mill wanted to make rolled steel nowadays, since local mills found it impossible to compete with Chinese steel.

South Korean utilities to take stake in Cockatoo Coal

Cockatoo Coal announced that it has entered heads of agreement with Korea Electric Power Corp and Korea East West Power Co to allot 40 million shares each at 42c a share for AUD 16.8 million. These allotments, which are to be completed by December 31st2007, are subject to no objection by the Treasurer of the Commonwealth Government.

Cockatoo shareholder approval of a resolution, which is being put at the forthcoming annual general meeting and ratification of the transaction by the boards of Kepco and EWP. The shares to be allotted will be subject to a voluntary escrow restriction for a period of 12 months from the date of allotment.

In addition, Cockatoo has granted the two companies the first right of refusal to purchase the greater of 2 million tonnes or percentage of Cockatoo's thermal coal production equal to the percentage ownership of Cockatoo by Kepco and EWP per annum produced from any of its coal mining operations. The purchase of any coal by EWP from Cockatoo will be at the then market price for the relevant type of coal and otherwise on terms and conditions reasonably required by EWP having regard to terms and conditions applicable in the Australian coal market at the time of sale.

The SK Group and Korea Resources Corp each hold 5.43% stakes in Cockatoo, while POSCO Co Ltd owns 20% of the Australian mine specializing company.

Taiwan imports 2.95 million tons of scrap in H1 of 2007

According to related statistics, Taiwan imported scrap for 2.95 million tons during January to July 2007 period up by 11.3% YoY. It is predicted that the total import in 2007 will reach a new record high of 5.058 million tonnes.

Taiwan ranked the first biggest import country from the Unit States with 1.02 million tonnes, accounting for 34.4% of the total volume.

Japan ranked the second with 450,000 tonnes which is 14.4% of the total volume and a down by 45% YoY. China ranked the third with 414,000 tonnes with 14% of the total.

Shougang inks strategic cooperation agreement with CSIC

It is reported that Beijing based Shougang Group inked a strategic cooperation agreement with China Shipbuilding Industry Corporation on September 9th 2007.

CSIC is the largest group in China in the field of design, manufacture, and trade of military and civil ships, marine engineering and marine equipment.

The agreement is expected to strengthen and expand the cooperation between the two parties.

(Sourced from MySteel.net)

Russian scrap export to H1 down by 5.1% YoY

According to statistics, Russia's scrap export totaled about 4.18 million tonnes in January to June 2007 decreasing by 5.1% from 2006.

Turkey was the main export destination scrap with 1.84 million tonnes around 43.9% of total scrap export from Russia in January to June 2006 down by 1.1%YoY.

Scrap exported to Spain accounted for 563,000 tonnes, reducing by 22.1% in 2006 and to Greece was relatively up by 51.1% to about 178,000 tonnes.

South Korea imported roughly 374,000 tons from Russia, curtailing by 9.5% from 2006, Taiwan imported 168,000 tonnes and Thailand accounted for 107,000 tonnes up by 90.5% YoY.

Shagang supplies X 80 plates for West-East pipe line II

Shagang announced that it has supplied X80 pipeline steel plate to West-East natural gas transportation line II project.

As per report, Shagang is the first Chinese steel maker to participate in the project.

It is reported that only Baosteel, Wuhan Steel Group and Shagang are able to produce the steel plate.

(Sourced from MySteel.net)

Rio Tinto and Alcan name management team for aluminum business

It is reported that Rio Tinto and Alcan recently named the executive management team drawn from leaders of both companies that will form the functional and operating structure of Rio Tinto Alcan and will be instrumental in the integration.

The organization is conditional and will become effective upon the completion of Rio Tinto's acquisition of Alcan Inc expected in the fourth quarter of 2007.

Mr Dick Evans president & CEO of Alcan's will become chief executive of the combined aluminum product group Rio Tinto Alcan, will report directly to Mr Tom Albanese CEO of Rio Tinto.

Mr Tom Albanese CEO of Rio Tinto stated that "As we approach the closing of the transaction, it is important to hit the ground running with a strong executive team that can begin to capitalize right away on our leadership position in the aluminum industry. I am very pleased to have Mr Dick Evans leading an outstanding team drawn from the leaders of both Rio Tinto and Alcan."

Mr Dick Evans commented "The new Rio Tinto Alcan executive team will be comprised of industry leaders with proven track records in their respective roles, and they are an experienced, talented and well respected group of professionals. I look forward to working with each of them to create a new world leader in the aluminum industry and also as part of an extremely strong, diversified global organization."

The leaders of Rio Tinto Alcan's Business Units, responsible for the strategic and operational performance of Rio Tinto Alcan's businesses worldwide and reporting directly to Mr Dick Evans will be as follows.

Steve Hodgson president & CEO Bauxite and Alumina Rio Tinto Alcan
Responsibilities will include bauxite mines, alumina refineries and specialty alumina businesses worldwide. The Business Unit headquarters will be located at Brisbane, in Australia.

Jacynthe Cote president & CEO Primary Metal Rio Tinto Alcan
Responsibilities will include all primary metal facilities and power generation installations worldwide. The Business Unit headquarters will be located at Montreal in Canada.

Christel Bories president & CEO Engineered Products, Rio Tinto Alcan
Responsibilities continue to include Aerospace, Transportation and Industry, Extruded Products, Alcan International Network, Engineered and Automotive Solutions, Cable, Composites and Specialty Sheet. The Engineered Products Business Unit headquarters will continue to be located at Paris in France.

UK Coal signs coal supply deal with E ON

UK Coal Plc has announces that it has agreed terms for the supply of almost 6 million tonnes of coal over the next five years to one of its long standing core customers, electricity and power generator E ON.

The released said about 75% of the coal will be supplied from UK COAL’s Daw Mill Colliery in the West Midlands, with the remainder being supplied from surface mine sites in Leicestershire and Derbyshire. All the coal will be supplied to E ON’s Ratcliffe power station, near Nottingham, with the deep mined coal being delivered by rail and the remainder from the two surface mine in the area delivered by road.

The contract which comes into immediate effect and runs to January 2012, secures the continued delivery of coal at improved prices, more closely reflecting the price of internationally traded coal and including annual inflation rate increases from 2009.

Mr Jon Lloyd CEO of UK COAL said “This contract extends the supply of coal to one of our key customers at improved prices and will account for a significant element of our Daw Mill mine’s annual production.”

UK COAL is currently discussing term contract supply arrangements with other power generators and is also planning market priced tonnage-based “spot sales” for coal produced at Daw Mill and other units.

Rostekhnadzor sets strict norms for metallurgical and coke enterprises

FIS reported that Rostekhnadzor has set stricter requirements to metallurgical and coke chemical Enterprises. This decision was made at the Russian seminar of specialists in supervision in the sphere of metallurgy.

It will require that metallurgical and coke chemical enterprises comply in full with the norms and rules of industrial safety and eliminate the revealed violations within the prescribed time. If they fail to do so, the territorial departments of the agencies will not approve the expert conclusions on metallurgical and coke chemical objects.