SAIL to invest heavily for pollution control facilities

It is reported that Steel Authority of India Limited is planning to invest around INR 2,500 crore for installation of pollution control facilities at its steel plants and mines as part of its current growth plan.

The strategy includes phasing out of old equipment and facilities, introduction of cleaner technologies replacing old, energy intensive processes, revamping old pollution control facilities and retrofitting new ones wherever possible and incorporating state of the art pollution control technologies.

Some of the major technological up gradation plans emphasized in the growth plan include
1. Coke dry quenching in coke ovens
2. Top gas recovery turbines in blast furnaces
3. Energy recovery from sinter cooler
4. 100% production of steel through the BOF CC route
5. Replacement of old rolling mills with compact strip mills and thin slab casting processes

Stemcor achieves financial closure for pellet project at Kalinga Nagar

It is reported that Stemcor India, which is setting up INR 1,500 crore iron ore pelletization project in Orissa, has achieved financial closure of INR 960 crore debt with SBI Capital Markets as the lead arranger. Stemcor India will fund the remaining INR 540 crore through equity in setting up a 4 million tonnes pellet plant at Kalinga Nagar in Orissa. The pelletization plant would be fed by a 220 kilometer slurry pipeline from Barbil, where a beneficiation unit would be located.

The report cited a Stemcor India’s officials as saying that with this financial closure, the first pellets would be out in 2009.

Stemcor India is planning to set aside 25% of output to be placed in the spot market to benefit from rising prices of pellets. Stemcor officials said that while the prices of pellets would be on a negotiated basis with customers, lump ore price charged by NMDC Ltd would serve as a benchmark price for the domestic market.

In the domestic market, smaller non integrated steel plants, which typically have blast furnaces but no iron ore plant or sinter plants and do not have resources to invest in pelletization, would source raw materials from Stemcor. As per report, several steel companies, already in Kalinga Nagar or implementing projects, have submitted letters of intent to source raw materials from Stemcor and almost 75% of the projected capacity has already been secured.

SAIL examining Vizag to Haldia coastal movement of coking coal

It is reported that Steel Authority of India Limited is mulling coastal movement of imported coking coal from Visakhapatnam Port to Haldia dock as big bulk carriers, with large parcel loads of imported coking coal for SAIL, are not able to reach Haldia due to the poor navigability of the Hooghly River.

As per report, SAIL will use Visakhapatnam Port to unload consignments from the large vessels into ocean going barges or smaller coastal vessels requiring lower draft. These vessels or barges will then call at Haldia for discharge.

For 3 of the SAIL’s plants located at Durgapur, Bokaro and Burnpur, Haldia is the preferred port because of the proximity but the problem at Haldia is that it cannot handle large vessels. Therefore the coastal movement seems to be a viable option both in terms of overcoming bottlenecks in other modes of transportation and the consequent additional cost.

SAIL, which imported around 4.5 million tonnes of coking through Haldia in 2006-07, is projected to import 5.5 million tonnes in the current year and 9 million tonnes in 2008-09.

11 captive workers at POSCO site in Orissa released

It is reported that after being held captive by anti POSCO activists for last 5 days, 11 workers, hired to construct a bridge at the proposed POSCO’s steel plant, have been released near Paradip.

Mr Abhaya Sahu president of the POSCO Pratirodh Sangram Samiti, which took away the workers, confirmed to PTI that the workers engaged by the rural development department to build a wooden bridge near Dhinkia village, were released last evening.

Mr Sahu informed that all the captives were set free unharmed after the conditions set by the POSCO Pratirodh Sangram Samiti were met and steps taken to prevent construction of the bridge.

The report cited Mr Amarendra Panda officer in charge of Kujang police station as saying that all 11 workers had been handed over to police after talks with the anti project leaders.

It is reported that these workers have no direct link with the POSCO and were actually engaged by Orissa’s rural development department to build the bridge near the site of POSCO’s proposed steel plant.

Welspun Gujarat Q2 net profit surges by 146% YoY

Welspun Gujarat has posted INR 82.5 crore in net profit for July to September 2007 quarter up by 146.27% YoY as against INR 33.5 crore in July to September 2006 quarter. It has also posted net sales of INR 928 crore up by 30.11% YoY as against INR 713.2 crore.

Welspun Gujarat has bagged USD 450 million orders from Canada that will be executed in 12 months. Its current order book stands at INR 5,530 crore excluding order from Canada.

BHEL plans entry into offshore rig manufacturing business - Report

Mint reported that Bharat Heavy Electrical Limited intends to enter the offshore rig manufacturing business to tap the growing demand for rigs in both the international and domestic markets.

BHEL is presently evaluating opportunities and is looking for technical tie ups for the same and is planning a technical tie up with ONGC for rig manufacturing business.

Rigs manufacturing is a very lucrative business as a deep water rig commands a daily rental of around USD 300,000, while an ultra deep water rig command a daily rental of USD 400,000.

JSW gets iron ore exploration rights in Jharkhand - Report

It is reported that JSW Steel has obtained exploration rights to an iron ore reserve in Jharkhand. It has received the prospecting license for 1,388.5 hectares of land at Ankua, which is close to the Steel Authority of India Limited’s Chiria mines.

However JSW has not confirmed this development. The report cited Mr Seshagiri Rao finance director of JSW Steel as saying that “We do not comment on market speculation.”

JSW has been seeking lease for 500 million tonnes of iron ore over a period of 30 years from Jharkhand government and has committed itself to make an investment of INR 35,000 crores in Saraikela district of Jharkhand.

As per report, JSW is among the 51 companies to have received either a mining lease or a prospecting license during this fiscal. The centre has given 13 concessions in Andhra Pradesh, 10 in Chattisgarh, 6 in Karnataka, 5 in Jharkhand, 4 in Madhya Pradesh, 3 each in Rajasthan and Goa, 2 in Orissa and 1 in Assam. But the mining leases and the prospecting licenses have been given mostly to smaller companies.

Metso to expand manufacturing capacity in India

Metso Minerals announced that it will expand its manufacturing and foundry capacities and office premises in India with a combined investment of EUR 12.5 million. The decision to invest is due to the increased demand for crushing and vibrating equipment and pumps, and related service products in India. The expansion is targeted to primarily serve the Indian market. The expansions will be completed by the end of 2008.

At the steel foundry at Ahmedabad in Gujarat, the capacity for crusher wear parts and pump castings will be more than tripled by 2009 from the current 2,000 tonnes per year to 7,000 tonnes per year. The expansion includes the doubling of floor space, as well as adding more lifting capacity and production equipment.

The investment at the Bawal factory in Haryana includes building an assembly line dedicated to mobile crushing and vibrating equipment, doubling the current floor space, as well as for new production equipment. With this investment, Metso's target is to more than double the supply of mobile crushing and vibrating units by the end of 2009.

Metso is a global engineering and technology corporation, with specialization in the fields of pulp and paper industry, rock and minerals processing, the energy industry and selected other industries, had net sales of approximately EUR 5 billion in 2006. It has more than 26,000 employees in more than 50 countries. Having established its operations in the early 1990s, Metso now operates through 10 locations in India employing approximately 500 people.

Coal distribution policy to be notified soon

It is reported that the new coal distribution policy is likely to be notified soon and will make it mandatory for all consumers to conclude fuel supply agreements with concerned coal companies.

The proposed policy, which has got approval from the Prime Minister's Office, envisages supply of 100% of the coal requirement of the power utilities. However, if a power company is producing more, it can approach coal companies for obtaining more than what has been sanctioned or look at imports so that stocks are built up.

Meanwhile, Coal India Limited’s plans to re launch the process of e auctions could face a hurdle with the new policy envisaging meeting 100% of the requirement of power utilities.

Abducted NTPC official in Jharkhand rescued

SNS reported that Mr DJ Acharya senior supervisor civil of National Thermal Power Corporation’s Farakka unit along with Mr Subrata Dam an employee of the Utility Powertech Limited and a driver, abducted from Lohandi village in Godda district of Jharkhand on October 6th 2007, have been rescued.

The report cited a NTPC sources as saying that a police search party spotted them in the forest under the Mahagama police station area of the district and later brought them to the Lalmatia guest house.

CIL to act tough against power utilities for overdue outstanding

It is reported that Coal India Limited is planning to regulate supplies to 4 central and state run power utilities for non payment of coal dues, totaling INR 1,062.30 crores as on September 30th 2007. CIL’s total due from power units across India during this period is about INR 2,041 crores. As per report out of the power sector’s total outstanding of INR 2,041 crores, about INR 1,000 crores is disputed and CIL is asking the power utilities to at least pay the undisputed portion.

The report cited a highly placed CIL official as saying that “We are trying to bring these power utilities to terms in paying off our dues. If it is not done in appropriate time we will be left with no other option but to regulate supplies.”

The defaulting power utilities that risk supply regulation include

1) Madhya Pradesh Power Generating Company Limited
As on April 1st 2007, Madhya Pradesh power generation and distribution authority MPPGCL is the biggest defaulter with dues of around INR 491.96 crore. This is a rise of INR 125.76 crore from the earlier figure of INR 366.20 crore. CIL supplied 11.8 million tonnes of coal to MPPGCL during 2006-07.

2) National Thermal Power Corporation
NTPC has coal dues of INR 341.57 crore, an increase of INR 56.10 crore from the earlier INR 285.47 crore. CIL is currently holding hectic discussions with NTPC for release of at least a portion of the dues. CIL supplied NTPC around 99.29 million tonnes of coal in 2006-07.

3) Uttar Pradesh Rashtriya Vidyut Udyog Nigam Limited
As for the UPRVUNL, power dues till April 1st 2007 have gone up by INR 28.71 crore to touch INR 80.06 crore.

4) Tenughat Vidyut Nigam Limited
Tenughat with the lowest coal supplies of 1.75 million tonnes has accumulated dues of INR 148.71 crore.

The CIL figures, however, show that total dues from different sectors over the years have come down from INR 6,845 crores on March 31st 2001 to INR 3,997 crores on March 31st 2004 and INR 2,189 crores till April 1st 2007. Senior CIL officials pointed that defaults in the steel sector have also increased by INR 61.72 crore, from INR 251.15 crore to INR 312.87 crore. However, the fertilizer and cement sectors have made advance payments of INR 188 crore to avoid possible defaults.

PFC plans mega equity fund to finance power projects

It is reported that Power Finance Corporation is planning a mega equity fund of around INR 2,500 crore to finance the upcoming power projects in India and is currently in talks with private equity players and foreign investors for participating in the fund.

It plans to pick up equity stakes in power companies as and when the companies launch the IPOs. PFC is unlikely to invest in the fund, but will attract other investors and act as an investment advisor to the fund.

GE Shipping orders for 2 Kamsarmax dry bulk carriers

Great Eastern Shipping Company Limited announced that it has contracted to buy 2 new building Kamsarmax dry bulk carriers. These vessels of approximately 80,700 DWT each are expected to join its fleet during Q4 of 2010-11 and Q1 of 2011-12 respectively.

GE Shipping's decision to acquire the bulk carriers is aimed at augmenting its dry bulk fleet and at participating in the strong demand projected in the bulk commodities in the medium term.

With this order, GE Shipping’s new building order book stands at 6 vessels aggregating 0.46 million DWT with 4 LR1 product tankers aggregating 0.30 million DWT and 2 Kamsarmax bulk carriers aggregating 0.16 million DWT.

GE Shipping’s current fleet stands at 48 vessels comprising 36 tankers and 12 dry bulk carriers with an average age of 11.3 years aggregating 3.29 million DWT.

Indian Railways H1 freight revenue up by 10.43% YoY

Indian Railways has posted revenue of INR 32572.29 crore during April to September 2007 period up by 10.87% YoY as against INR 29379.56 crore during April to September 2006 period.

The total goods earnings have gone up from INR 19698.71 during April to September 2006 period to INR 21752.35 crore during April to September 2007 period. While, the total passenger revenue earnings was INR 9510.18 crore as compared to INR 8456.20 crore. The revenue earnings from other coaching and sundry amounted to INR 1309.76 crore as compared to INR 1224.65 crore.

In INR crores

ArcelorMittal to acquire 90% stake in Rongcheng Chengshan Steelcord

ArcelorMittal has announced the acquisition of a 90% stake in Rongcheng Chengshan Steelcord, the Chinese privately owned steel cord wire drawing company based in Shandong province. The acquisition is being made for the sum of USD 26.6 million.

Rongcheng Chengshan Steelcord specializes in steel cord wire and bead wire used for tire reinforcement. The company forecasts a turnover of CNY 536 million (USD 71 million) for 2007.

Mr LN Mittal president & CEO of ArcelorMittal said that “This acquisition is an important step for us in expanding in a major market. We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry and we look forward to bringing our expertise to Rongcheng Chengshan Steelcord. As well as showing our commitment to the broader Chinese steel market, this acquisition also underlines our commitment to the wire business specifically and recognizes China’s leading position in this sector.”

China is the largest steel cord wire market in the world with very close proximity of the steel cord producers to the tire manufacturers. China is also the leading tire manufacturing base in the world.

CISA estimates 480 million tonnes crude steel in 2007

Mr Qi Xiangdong deputy secretary general of the China Iron and Steel Association recently forecasted in Tianjin that China's crude steel output will surge to hit some 480 million tonnes in 2007 up about 14% YoY.

Mr Xiangdong said that under Chinese government's macro control, China’s steel output showed a downward trend during the second half. However, because of the strong demand in domestic market, steel output still remained certain growth.

(Sourced from Mysteel.net)

Evraz Group Q3 steel output dip by 8.4% YoY

Evraz Group announced that it’s Q3 of 2007 steel production decreased by 8.4% to 3.67 million tonnes as compared to 4.013 million tonnes for the Q3 of 2006. Evraz said that pig iron output dropped by 16% to 2.761 million tonnes during January to August 2007, while rolled product output stood at 3.473 million tonnes, down by 6.7% YoY.

Iron ore concentrate mining soared by 46.2% to 923,000 tonnes from Q3 2006, while iron ore agglomerates production declined by 15.5% to 1.914 million from January to August 2006. Caking coal output increased by 7.6 times to 1.352 million tonnes, while vanadium mining slipped by 1.7% to 2.92 million tonnes as compared to the same period a year earlier.

Product wise results for steel segment are as under

In million tonnes

The results for steel operations in its areas of operations are as under

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

The results for Evraz’s mining division are as under

In ‘000 tonnes

The results for vanadium business are as under

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

Evraz Group SA is one of Russia’s largest vertically integrated steel and mining businesses. Evraz Group produced 16.1 million tonnes of crude steel in 2006. Evraz Groups principal assets include 3 of the leading steel plants in Russia namely Nizhny Tagil in the Urals region and West Siberian and Novokuznetsk in Siberia as well as Palini Bertoli in Italy, Vitkovice Steel in the Czech Republic and Evraz Oregon Steel Mills headquartered in the USA.

Voestalpine to reach EUR 15 billion sales in 5 years

It is reported that Austrian steel producer voestalpine AG expects to boost annual sales to EUR 15 billion within five years following its takeover of Boehler Uddeholm AG.

Mr Wolfgang Eder CEO of during an interview told Financial Times that “Its EBIT margin will reach 10% to 15% in five years. This year, sales will reach about EUR 11 billion compared with EUR 7.049 billion in the twelve months through March, with pretax profit coming in at EUR 1.3 billion. He added that the company has earmarked EUR 300 to EUR 350 million a year on acquisitions, but may spend more if a good opportunity comes along.”

Voestalpine last month said it holds 79.2% of Boehler-Uddeholm's shares after its EUR 73 per share offer for the remaining shares expired on September 6th 2007 and Mr Eder in the interview affirmed the company have no plans to make a higher offer to gain approval by more shareholders.

Commenting on the market environment, Mr Eder said that voestalpine's stainless steel business is not affected by the current market weakness. He said that “We do not have any business in stainless steel that is not based on contracts, and they are made to shift the price risk to the customer.”

Mr Eder also said that he does not see a threat to voestalpine's business from Chinese steel exports as the company's customized products do not need to directly compete with mass produced steel products from there. He added that “We have the advantage of being small.”

POSCO to post steady Q3 earnings – Analysts

Thomson Financial reported that POSCO is expected to report steady earnings for the third quarter amid weakness in the global steel industry and sluggish seasonal demand.

According to the consensus forecast of 27 analysts polled by Thomson Financial, POSCO is expected to report third quarter net profit of KRW 954.3 billion and operating profit KRW 1.13 trillion slightly more than the previous year's net profit of KRW 879.9 billion and operating profit of KRW 1.06 trillion.

Mr Yang Ki-In analyst for Daewoo Securities said "POSCO will likely report flat earnings for the third quarter given the unfavorable market conditions.” He is projecting operating profit of KRW 1.08 trillion on sales of KRW 5.36 trillion.

Ms Cindy Park analyst for Nomura Securities said "Operating profit is likely to fall short of our estimate of KRW 1.24 trillion dragged down by the weak performance of the stainless steel division."

Woori Investment & Securities forecasts operating profit of KRW 1.11 trillion saying it is expecting POSCO's September output to have been hit by the long Korean Thanksgiving holidays.

Mr Lee Chang-Mok analyst for Woori analyst said "September's poor performance in stainless steel output was a setback, but it was only a temporary thing and output has picked up quickly."

Mr Kim Gyung Jung analyst for Samsung Securities said "Steel prices are expected to rise further and POSCO will see better earnings next year. Mr Kim is projecting operating profit of KRW 5.6 trillion for 2008, up from the KRW 4.8 trillion he sees for this year. He said solid demand from China, the Middle East and other emerging markets and higher raw material prices are pushing global steel prices up.

Zinifex and Umicore to raise USD 2.3 billion in Nyrstar IPO

Bloomberg reported that Zinifex Ltd and Umicore SA may sell as much as EUR 1.6 billion of shares in an initial public offering of their Nyrstar NV smelting JV.

Melbourne based Zinifex said in a statement that a total of 69.5 million shares or about 70% of London based Nyrstar will be offered initially within a range of EUR 18 to EUR 23. Zinifex said the final offer price will be announced on about October 29th 2007 when the shares are scheduled to start trading on the Euronext Brussels exchange.

Nyrstar said that based on the mid point of the offer price, the sale will raise EUR 1.43 billion. The offer may be increased by 25% to 86.6 million shares and the maximum possible offer size is 100 million shares, or all the shares in Nyrstar. This would raise as much as EUR 2.3 billion.

Mr Leigh Gardner head of sales trading at ABN Amro Australia Pty said “It is probably a touch light on compared with expectations. The lower than expected valuation was due partly to costs as well as the zinc outlook.” Mr Gardner said ABN was expecting Zinifex to get about AUD 3.3 billion from the sale of its stake. Zinifex holds 60% of the shares in Nyrstar with Umicore holding 40%.

Wuhan inks iron ore contract with Admiralty Resources

It is reported that a contract of iron ore supply for more than 26 million tonnes was signed recently between Wuhan Iron & Steel Corporation and Australian iron ore producer Admiralty Resources NL.

According to the contract, Admiralty Resources will supply WISCO with 750,000 tonnes of iron ore in 2008, 1.3 million tonnes respectively in 2009 and 2010, and 3 million tons every year during 2011-2018, depending on the completion of Chile's Punta Alcalde Port.

Analysts say this signifies that China's demand for iron ore is still robust and may push up iron ore benchmark price for 2008.

Several other Chinese steel makers include Baosteel Group Co Ltd, Jiangsu Shagang Group and Haixin Iron and Steel Group Co Ltd etc have also signed long term purchase and sale contracts with emerging foreign mining enterprises.

Mr Sun Jianliang executive director of Shanghai J Sun Trading Consultants Ltd told China Business News that although these contracts are not conducive to competition with foreign enterprises; some steel factories signed contracts before the round of iron ore negotiations, indicating that the iron ore supply shortage problem has not been solved.

NDRC sees continued upswing of steel prices in October

China’s National Development & Reform Committee in a report released recently said that domestic prices for steel products were on upswings in September and the uptrend is expected to continue in October.

According to NDRC's monitoring on steel markets in 30 provinces and municipalities, prices for steel products kept rising in September with swifter growth. Composite average price for major steel products recorded CNY 4484 per tonnes up by 3.70% MoM and up by 13.79% YoY. Construction steel price gained the most to CNY 3973 per tonnes up by 5.57% MoM and by 26.11% YoY. Prices for other products, such as flat products, stainless plate, tubes and pipes and section steel also experienced different growths.

NDRC attributes this to more constructions, raised international price and large exports.

In October export market is likely to maintain current operation. Besides, some steelmakers have pulled up EXW prices owing to increased costs or planned to begin overhauls in the future. Against such a backdrop, prices for steel products will keep at a high level in October.

(Sourced from Mysteel.net)

European manufacturing industry resorting to imports

It is reported that steel prices in Europe are hitting the roof and suppliers are struggling to meet demand of European engineers and the industry, which posted a record growth of 6.6%YoY in 2006 to reach EUR 1,779 billion and has its order books nearly full presently. Orgalime which represents the engineering industry’s interests in Brussels said that the engineering industry In Europe has to resort to imports in the face of an undersupplied EU and while imports in terms of percentages are rising, they are modest in terms of the size of the European market.

Mr Adrian Harris said secretary general of Orgalime said that “If increasing quantities of certain steel grades are finding their way into the European market, it is clear that this is because of demand in the EU is on the rise, while output is not able to keep up and stocks of steel in the EU are limited. Our companies are therefore finding it ever more difficult to buy steel locally in the quantities and qualities they need at competitive conditions.”

Mr Harris added that “To make matters worse, EU, which today has the highest steel price worldwide for many grades, is fast becoming a premium market for steel producers. While Orgalime can understand that the steel industry should invest primarily in those markets which have led the industry to record profits, calling for trade restrictive measures which will put further pressure on supplies in the EU and lead to yet higher prices is, in the view of the organization short sighted and damaging to their customers.”

Mr Harris added that “It just does not make sense to hit the competitiveness of the EU’s metalworking and mechanical engineering SMEs, which provides more than seven million jobs throughout the EU, to protect the interests of an industry, which, through its increasingly global development, now only provides 250.000 jobs in a few European countries. For us matters are simple: our companies must have access to the supplies of steel they need at competitive market conditions. If our traditional suppliers in Europe can provide these, all the better. If not, we need to find alternatives for our companies to be able to continue manufacturing here.”

Orgalime has therefore asked the European institutions to focus on free but fair trade and not to introduce market restrictive measures, which will inevitably jeopardize the capacity of engineering SMEs to continue working in the EU.

CVRD to keep aluminum in strategic focus in 2008

Companhia Vale do Rio Doce recently announced that its board of directors has approved an investment budget of USD 11 billion for 2008, out of which 6.9% or USD 0.755 billion is for non ferrous materials.

CVRD said that “The strategic focus on the upstream part of the aluminum chain is anchored very clearly in the competitive advantages that CVRD derives from the exploration of huge reserves of high quality bauxite, world class alumina operations and highly efficient logistics infrastructure.”

The details of various projects in this area is as under

Alunorte modules 6 and 7
2008 – USD 382 million
Total – USD 846 million
The construction of modules 6 and 7 will raise the refinery's production capacity to 6.26 million tons of alumina a year. Completion programmed for 3Q08.

New Alumina Refinery (NAR) 1
2008 – USD 88 million
Total – USD 1.795 million
The new refinery will be in Barcarena, in the state of Pará. The plant will be developed in four stages, each one with a production capacity of 1.85 million tonnes per year with a final capacity of 7.4 million tonnes per year. Completion is expected in 2Q11. Subject to approval by the Board of Directors.

Paragominas II
2008 – USD 61 million
Total – USD 196 million
The second phase of Paragominas will add 4.5 million tonnes per year to the 5.4 million tonnes per year of the first phase. Due for completion in 2Q08.

Paragominas III
2008 – USD 30 million
Total – USD 416 million
The third phase, Paragominas III, which will add 4.95 million tonnes per year to the present capacity, will be completed in March 2011. Subject to approval by the Board of Directors.

Xinyu to cross 5.5 million tonnes steel output in 2007

It is reported that Xinyu Iron and Steel Company Limited is estimated to have a steel production more than 5.5 million tonnes in 2007 and have a sale income more than CNY 20 billion and revenues CNY 2 billion.

Xinyu has invested heavily on technology improving and strengthened the management and made progresses on steel production, products sale income and profits since 2000. With an accumulative investment of CNY 6.1 billion in 10th Five Year on technology improving, it has modernized the main equipments and gross income has maintained a two digit increase in 6 years.

Xinyu’s steel output topped 2 million tonnes in 2002, 3 million tonnes in 2004, 4 million tonnes in 2005 and 5 million tonnes in 2006. In 2004, Xinyu Iron and Steel became the first single enterprise in Jiangxi Province that has a sale income of more than CNY 10 billion per year. In 2005, the company ranked 113th among the top 500 manufacturing companies in China for sale income. In 2006, the company produced steel 5.09 million tonnes and realized sales income CNY 17.3 billion and revenues CNY 1.37 billion with the steel output ranked 53rd in the world and 21st in China.

Xinyu Iron and Steel holds an important position in Xinyu City’s economy and even Jiangxi Province. After the phase three of technology improving project completed, the company may have a sale income of CNY 35 billion per year, becoming one of the largest iron and steel companies in China. For the phase three of technology improving, Xinyu Iron and Steel plans to construct four bases to boost the local economy growth, including Liangshan industrial zone, steel further processing base, resource comprehensive utilization base, model base for supplementary industries restructure.

Vietnam's import tax cut on finished steel to hit domestic industry

According to Vietnam Steel Association it is not possible to implement the recently announced import tax reduction policy for finished steel products as this will cause more difficulties for domestic mills to sell.

VSA said that a tax cut from 8% to 2% for imported finished steel products by Vietnam’s finance ministry aiming to maintain the domestic steel price low from inflation is strongly denied by the association.

As per VSA, Vietnamese mills are suffering from high billet prices, which have pushed the price offered at even USD 600 per tonnes in the local market. On the other hand, the cheaper imported finished steel prices are lower by about USD 10 per tonnes and this drives the domestic steel products in a price pressure to compete in the market.

Chinese SS industry opts for production cuts amid over supply

It is reported that following a huge rise in production, China's stainless steel industry is facing a problem of plenty now and the glut has caused panic in Chinese stainless steel market. AS such, a sharp fall in nickel and stainless steel prices, has forced production cuts by SS makers during this month.

State owned and private mills are reportedly working in tandem to support falling prices. Some plants have resorted to production cuts, while others have commenced their maintenance work early.

From the peak of end ay, stainless steel prices had been falling and by mid July, the market was 25% lower. From around USD 4,500 a tonne in May 2007, the rates have declined to less than USD 3,300 a tonne. Steel traders apprehend there could be a further drop in August 2007 when seasonal demand stays weak.

The sharp fall in prices and oversupply of stainless steel together with the rapid expansion of production capacity since the second half of 2006 has led to a substantial build up in stainless steel inventories in China.

Corus opens steel service center at Athlone in Ireland

It is reported that Corus has expanded its Ireland business with the opening of a new centre in Athlone.

Mr Johan Casparsson regional manager for the new Athlone base at Monksland Retail Park said that “Customers in the Midlands and West of Ireland now have full access to delivery of our extensive range of structural and strip steel products, with a very big range of structural lengths. He added that our major strip processing plant in Lisburn, which has recently benefited from a multi-million euro investment, is able to process and supply the highest quality cut to order strip steel. We also hold an extensive stock of standard sizes, which can be delivered even more quickly.”

He also added that the new centre in Athlone will give customers access to the stock range and technical expertise of Europe’s largest steel producer and processor, together with a local team to help advice and problem-solve for customers. With our commitment to local customer service, we will be able to be highly responsive to our customers steel requirements and tight deadlines.

Local engineering company Fahy Engineering has started to use the new service in Athlone to supply them with the structural, plate steel and box sections required for their busy farm equipment business. Mr John O’Connor explained that “We have started using Corus as our steel supplier because it has considerably improved the availability of steel for us and cut down delivery time to our Athenry engineering works. We have been very pleased with the service we have received from Corus.”

Erdos to build 2nd silicomanganese plant in Inner Mongolia

Platts reported that China's Inner Mongolia Erdos EJM Manganese Alloys plans to start construction on a second 75,000 tonnes per year silicomanganese production plant in late 2007. The plant's construction is expected to be completed mid 2008 and commercial production is expected late 2008. The plant will produce 65% manganese content silicomanganese.

The plant will be located in Qipanjing industrial park in Erdos City in Inner Mongolia, next to the first plant. It will be designed after the first plant and equipped with two 25,500 KVA electric furnaces.

Tokyo based spokesperson for the Erdos group said Erdos Manganese will emerge as the largest silicomanganese producer in China and the second largest in the world with its new total capacity of 150,000 tonne per year, from both its silicomanganese plants.

Tokyo sources close to the project said out of the total 150,000 tonnes per year production, around 70.000 tonnes per year will be for consumption by JFE Steel, 20,000 tonnes per year by JFE affiliates, and the remaining 60,000 tonnes per year will likely to be sold to Chinese steelmakers.

The company plans to import 60% of its manganese feedstock from Gabon, Australia and other overseas suppliers and buy the remaining 40% from the domestic Chinese market.

Inner Mongolia Erdos EJM Manganese Alloys is a JV of Chinese ferroalloy producer Erdos Electric Power Metallurgy which holds a 51% stake, Japanese steel mill JFE Steel with a 24.5% stake and Japanese trading house Mitsui & Co with another 24.5% stake.

Chinalco to acquire unit of Liuzhou China Tin

Reuters reported that Aluminum Corp of China, the country's top producer of the metal and the world's third biggest producer of alumina, has acquired the nonferrous metals unit of Liuzhou China Tin Group expand into other metals as world prices soar.

According to a statement from Chinalco Chinalco and China Tin signed the asset transfer agreement recently. It said Chinalco will restructure China Nonferrous New Metals Co which is owned by the government of the southern Guangxi Autonomous Region. The acquired firm's business is involved in nonferrous metals, minerals, chemicals and additives for aluminum products.

For four years Chinalco has held sporadic talks with the Guangxi government to take over China Tin, but Guangxi is thought to be unwilling to allow firms from other provinces to take it over.

But state owned Chinalco, played down speculation it was planning to merge or take a stake in Minmetals Development Co Ltd, a listed arm of state owned China Minmetals Corporation, which trades and invests in nonferrous metals and steel.

European section steel prices to rise by 10% YoY in 2008

According to ArcelorMittal’s forecast, European section steel prices will increase by 10% YoY in 2008 after 14% YoY increase in 2007.

ArcelorMittal estimated that the capacity in Europe will boost by 1 million tonnes to 9.9 million tonnes during 2006 and 2012. The capacity rise is mainly from Spain, Boland and Luxemburg’s steelworks.

As per Eurometial’s statistics, the demand volume of section steels keep stable at 8 million tonnes to 9 million tonnes each year in past ten years due to the support of strong demand and the market will keep strong in the second half of this year.

Pallinghurst improves offer for ConsMin

It is reported that Pallinghurst Resources Limited has increased its cash offer for Consolidated Minerals Limited to AUD 1.03 billion, as the latest move in a long running takeover battle for the Australian manganese miner.

Pallinghurst said it is now offering AUD 4.5 cash a share for Consolidated Minerals Limited, the same amount being offered by rival bidder Palmary Enterprises. The revised cash bid is 40 cents more than its previous offer but still below Consolidated Minerals Limited's share price of AUD 4.79. The group also revised its top up payment plan, which allows it to match any higher cash offer made by Palmary by January 28th 2008.

Pallinghurst said its revised offer is final in the absence of a higher cash bid. The consortium also extended its bid for the group until October 24th 2007 and said there will be no further voluntary extensions beyond that date.

Spokesman for Consolidated Minerals Limited said the board will consider the terms of the announcement by Pallinghurst and will provide guidance to shareholders as soon as it has completed its assessment of the offer.

Pallinghurst led by Mr Brian Gilbertson former CEO of BHP Billiton kicked off the battle for Consolidated Minerals Limited earlier this year with an offer it said valued the miner's shares at AUD 2.28 each. The Pallinghurst consortium plans to build Consolidated Minerals Limited into a mid tier mining house worth more than AUD 5 billion focused on steel making materials.

Bodies of 16 coalminers recovered in Jiangxi

Xinhua news agency reported that rescuers have recovered the bodies of 16 miners killed in a coal mine explosion in east China's Jiangxi province.

The accident occurred at the Jianxin coal mine on Saturday night while 283 miners were working underground. Most of the miners managed to escape, but a gas explosion in the mine caused a coal slide along a 30 meter long tunnel and left some workers trapped.

The report added that by Monday morning, a total of 22 meters of the tunnel had been cleared of debris, but the search is continuing for any missing miners.

Xinhua reported that China's safety watchdog has ordered national coal mines to stop production and carry out inspections, aimed at improving safety and reducing the number of fatal accidents.

Northern Energy’s Elimatta coal resources upgraded by 30%

Northern Energy Corporation Limited has announced a 30% increase in total resources at its Surat Basin Elimatta Coal Project, on EPC650, in southern Queensland. It said that “Further drilling on EPC650 since June 2007 has resulted in a substantial upgrade in both the total resources and the overall confidence in those resources.”

Northern Energy Corporation said that resources now total 285 million tonnes of which 155 million tonnes are indicated and 130 million tonnes inferred with an additional 22 million tonnes to 40 million tonnes as exploration Target 1.

Mr Keith Barker MD of Northern Energy Corporation said that the Elimatta exploration activity continues to improve both the coal resources’ quantity and their category. He said "We have now started initial studies including those for mining; coal handling and preparation as well as infrastructure. In addition to these studies, we have also commenced background environmental surveys to prepare for the Environmental Impact Statement and Mining Lease application processes early in 2008."

Mr Barker said "At Elimatta we will continue to focus on establishing a large, competitive, open cut mine. With a substantial, low strip ratio, high quality, thermal coal resource being proved up to a much higher degree of confidence, our exploration expenditure has created substantial shareholder value. He said "Drilling will continue at Elimatta until early November and then recommence early in the new year with the objective of establishing a substantial, measured resource. This program will provide a platform for the feasibility study scheduled to commence later in 2008."

Northern Energy Corporation is currently discussing Elimatta project rail and port access matters with the Surat Basin Railway consortium and the Central Queensland Ports Authority.

Chinese HRC imports into South Korea on upswing

According to Steel Daily, there has been surge in imports of Chinese HRC by Hysco, Dongbu Steel, Union Steel, SeAH Steel and Husteel, which are leading importers of Chinese hot rolled steel coils in South Korea.

Their HRC imports reached 1.72 million tonnes during January to September 2007, accounting for 81% of total imports into South Korea and resulting in average monthly HRC imports up by 46% YoY.

Among others, imports by Hysco, SeAH Steel and Husteel see evident rise but imports by Dongbu Steel and Union Steel witness a small increase of 8% and a decrease of 23% due to weak domestic CRC and HDG market.

The major reasons for the jump in imports are
1. The decrease in supply due to drop in sales of POSCO HRC and regular maintenances
2. Medium and small sized steel pipe producers reduce Chinese HRC imports citing the continuous rise in prices. Thus the proportion of imports by the five steel mills goes up accordingly.

By comparison, Japanese HRC exports to South Korea averages 334,000 tonnes per month, an increase of 70% YoY. The monthly imports of Japanese HRC by the five producers are 60,000 tonnes.

Qatar Steel may raise finance in early 2008 - Report

Reuters cited Mr GM Sheikh Nasser bin Hamad Al Thani GM of Qatar Steel and Industries Qatar subsidiary as saying that Qatar Steel, which has abandoned plans to borrow around USD 1.3 billion due to the ongoing global credit crunch, may in fact look to resurrect the deal in January or February.

Qatar Steel is seeking the funds to refinance existing debt and also to add 1.4 million tonnes per annum capacity to a steel plant in Qatar.

IranKhodro starts auto steel facility

It is reported that IranKhodro Advanced Dies Company, Iran's very first facility for the auto industry, has commenced operation. The plant, built on 6,000 square meters of land took USD 10 million of funding to complete.

The new facility will produce 40 million parts of various types for 120,000 IranKhodro automobiles every year, preventing the outflow of USD 40 million in foreign currency from the country.

The facility has the ability to process the most advanced steel sheets that were previously produced overseas at a cost of USD 35 to USD 50 per cut.

IranKhodro is currently Iran's leading auto manufacturer.

Living Steel’s UK winner to be honored

Living Steel's 2nd International Architecture Competition for Sustainable Housing UK winner, Cartwright Pickard and short listed finalists will be honored at a UK winners event on the October 18th 2007. London based firm Cartwright Pickard will showcase its winning design at the event hosted by steel manufacturer Corus.

Cartwright Pickard's design utilized a flexible kit of standardized parts that can be arranged in a series of unique formations. The pre fabricated modules are factory built and can be fully fitted out prior to delivery to the building site.

Living Steel announced the winners of its 2nd International Architecture Competition for Sustainable Housing in Brussels last month and Cartwright Pickard was awarded EUR 50,000 and a contract to construct its steel housing design.

The International Competition for Sustainable Housing is a key activity for Living Steel, the International Iron and Steel Institute worldwide program developed to stimulate innovation in the design and construction of residential steel housing. Launched to develop innovative approaches to meet sustainable housing needs, underlying the competition is a desire to address the economic, environmental and social aspirations of a growing world population.

Coal deposits discovered at Ulaan Nuur Basin

Canadian based Bluerock Resources Ltd has announced deposits of coal have been discovered at its Ulaan Nuur Basin site. The discovery came during exploratory drilling for known uranium at the site. Of significance, according to mining officials, was that some coal deposits measure ten meters in thickness.

Mr Michael Collins president of Bluerock Resources Ltd commented "The drilling program succeeded in expanding the known uranium mineralization at Khavtsal in both area and depth. In addition, the company has identified significant intervals of coal located only 30 kilometers from a railhead. Bluerock will move aggressively to capture the value of this new coal asset."

The drilling programs were focused on three separate licenses, the Khavtsal, Khudgiin Us and Tolgod all of which are located south of Ulaanbaatur in the Ulaan Nuur Basin.

Zhenhua Port received orders for 200 large cranes

It is reported that Shanghai Zhenhua Port Machinery Co has received orders for 200 dual 40 feet containers' quayside container cranes.

The crane with total Chinese intelligence property rights can boost productivity by 50% if loading and unloading techniques are improved accordingly. The product will bring about handling technology reform on the terminal, enhancing work efficiency. The crane itself has many miscellaneous functions to adapt to the driver's different operating demands.

The product has been widely adopted in large domestic ports and has been sold in more than ten countries and territories in Asia, Europe, Africa and North America.

The Shanghai listed manufacturer, a subsidiary of China Communications Construction Company Limited, spent CNY 300 million or over 2.5% of its sales revenues in developing the new type of crane in 2005. Of the total orders for the crane, 58 cranes have been delivered.