POSCO to continue with its Orissa project despite opposition

It is reported that despite the incidents of detention of its officers and other people trying to approach the site of proposed steel plant near Paradip, POSCO India on Saturday asserted it would go ahead with its plans.

Mr Sashanka Patnaik spokesman of POSCO India said "The incident was unexpected. However, it would not affect prospect of the project. Whatever the situation, the company would go ahead with its project.”

Mr Patnaik however added that this type of incidents could de motivate investors. He said the hostage incident would certainly have an adverse impact on foreign investment. "This will not be in the larger interest of the people and the state.”

Mr Patnaik claimed that resistance to POSCO project had declined to a great extent as only people of one of the three gram panchayats were opposing it. He said "While two third of the population are supporting the project, there is no point in thinking otherwise. POSCO would certainly go ahead with its project.”

As per reports, POSCO is aiming to secure land for the steel project in Orissa by the end of 2007 and is also planning to obtain iron ore mine clearance from the Orissa government by March 2008.

POSCO signed a deal with Orissa government in June 2005 to set up the steel plant, which is scheduled to be built by 2016. But the POSCO Pratirodh Sangram Samiti has opposed the proposed 12 million tonne steel project on the ground that it will cause displacement of thousands of people staying in nearby villages. During the past 2 years, anti POSCO activists have detained at least a dozen officials of the company. They have also blocked all entry points leading to the proposed site.

Inter ministerial group meeting on steel postponed

It is reported that the meeting of the inter ministerial group, set up to facilitate investments in the Indian steel sector, proposed to be held on October 18th 2007 has been postponed again to October 30th 2007 as the Orissa government has said that it would not be able to participate due to Durga Puja celebrations.

Earlier, the meeting scheduled for October 8th 2007 had to be postponed by 10 days as top officials of the steel ministry and Mr SK Roongta chairman of SAIL was in Europe attending the International Iron and Steel Institute meeting.

A top steel ministry official said that "We envisage an investment of INR 276,880 crore in the steel sector by 2011-12. The inter ministerial group, which has been constituted to delve into various issues impeding these investments, will deliberate on them when it meets on October 30th 2007."

Inter ministerial group was formed to address various issues creating bottlenecks impeding the huge investments in Indian steel sector over the next 5 years.

RINL capacity expansion plans on track

BL reported that Rashtriya Ispat Nigam Limited is on track to expand its capacity from 3 million tonnes per annum at present to 6.8 million tonnes per annum by 2010.

Mr PK Bishnoi CMD of RINL told BL that “While orders have been placed for all major equipment required to ramp up capacity to 6.3 million tonnes per annum, an additional 0.5 million tonnes capacity will be added by way of additions, modifications and replacement projects.”

Mr Bishnoi said that a tie up has been forged with National Minerals Development Corporation for ensuring iron ore linkages up to 6.8 million tonnes per annum production. He added that “Beyond that, too, NMDC will make iron ore available to us.”

Mr Bishnoi informed that INR 9,000 crore would be required to implement the expansion project, which would be raised by way of internal accruals and debt. RINL already has with it a surplus of INR 6,500 crore even as a further surplus of INR 2,000 was expected to be generated within the next 1 year. Currently, RINL is a zero debt company.

TATA Steel Thailand Q2 profit down by 39% YoY

TATA Steel Thailand has posted net profit of THB 167 million in July to September 2007 quarter down by 39% YoY. The sharp drop was due mainly to a provision for the impairment of machinery at an oxygen plant.

In the second quarter, it recorded net revenue of THB 6.65 billion up by 15% QoQ on sales of 340,000 tonnes. The average selling price was THB 19,500 during the second quarter up by THB 200 from the first quarter. Increases in raw material prices and the steel bar market price were the main reasons.

Mr Santi Charnkolrawee president of TATA Steel Thailand said that "The net profit for this quarter involved a THB 6 million loss for a building write off and THB 48 million provisions for machinery impairment in an oxygen plant of the company's NTS Steel Group subsidiary for the preparation of an area for a mini blast furnace project."

Mr Charnkolrawee said that while the company's average cost of goods sold increased by THB 1,900 per tonne, the average price raised only by THB 1,100. He said that “Excluding the non recurring items, the fiscal second quarter net profit has declined by THB 162 million or by 42% QoQ due to costs increasing THB 1,000 per tonne.”

Vizag Port H1 cargo handling up by 17% YoY

BS reported that Visakhapatnam Port has handled 30.61 million tonnes of cargo during April to September 2007 period up by 17% YoY as compared with the April to September 2006 period.
Out of 30.61 million tonnes of cargo handled during the period, iron ore exports stood at about 8 million tonnes, which was around 2 million tonnes more compared with 2006 period.

During the April to September 2006 period, Vizag Port also handled 27,425 TEUs of container cargo as against 29,795 TEUs in April to September 2007 period.

Mr KSD Dattu Raju traffic manager of Vizag Port told BS that “Iron ore accounted for half of the growth. Other cargo like fertilizers, cocking coal, thermal coal too increased significantly while container cargo registered reasonable growth. We expect to touch the 60 million tonnes mark in cargo, as the LPG cavern project in the port area is all set for commissioning and this would increase the import and export of petroleum products from the port.”

Vizag Port had emerged as the premier port in India for the 7th consecutive year by handling 56.3 million tonnes of cargo during 2006-07. However, during the first 6 months of the current fiscal, the Kandla port handled 30.69 million tonnes of cargo, which is about 8,000 tonnes more than the cargo handled by the Vizag port.

5 coalminers injured in roof collapse in Sarubera mines

Ranchi Express reported that 5 coal miners were seriously injured when the roof at underground mines of Coal India Limited’s subsidiary Central Coalfield Limited’s Sarubera colliery in Kuju area in Jharkhand collapse on October 13th 2007.

As per report, severely injured laborers were admitted to the hospital at Naisarai.

Mr Ramratan Munda, one of the injured, said that the incident took place at 5th deep near 39 pillar, where proper dressing was not carried out after blasting inside the underground mines. Only bolts supported the roof at the site of accident.

Indian Railway caps return on iron ore feeders to 14%

It is reported that private and public investors involved in the construction of 2 rail links connecting Paradip and Krishnapatnam ports have accepted the terms put forward by the Indian Railways in the agreement, wherein Railways has put a ceiling on the returns that the investors can get from these projects.

Indian Railways has decided to cap the returns on such projects at 14% and the maximum period for which the investor can own the rail link has been fixed at 30 years. Thus, the investors will continue owning and deriving revenues from the rail link till they receive 14% returns on their entire investment on a net present value basis.

The 113 kilometer long rail link between Obulavaripalle and Krishnapatnam in Andhra Pradesh is estimated to cost of around INR 588 crore, with equity of INR 270 crore. It will be handled by Krishnapatnam Rail Road Corporation, a SPV with Rail Vikas Nigam with 30%, Andhra Pradesh government with 13%, Krishnapatnam Port Co with 30%, NMDC with 15% and an iron ore exporter with 12% as owners.

The Haridaspur to Paradip line is expected to have a landed cost of INR 598 crore, with equity of INR 275 crore. Rail Vikas Nigam has the largest equity stake in the SPV with 48%, while Essel Mining & Rungta Mines have 10.91% each and POSCO & Paradip Port 10% each. The remaining stake is held by MSPL with 5.45%, SAIL with 1.82%, Jindal Steel & Power with 1.82% and IDCO, Government of Orissa with 0.6%.

Tayo Rolls inks license agreement with Sheffield Forgemasters

Tayo Rolls Limited has recently announced that it has entered into a the technical know how & license agreement with UK based Sheffield Forgemasters International Limited for transfer of technology for manufacture of forging quality ingots including round ingots, forged bars, engineering forgings and forged rolls.

Under the said agreement, Tayo Rolls would make a lump sum payment as also royalty payment. The lump sum payment is payable in 3 installments. The royalty is payable on round ingots, forged bars, engineering forgings and forged rolls for a period of 5 years from the commencement of commercial production of the respective products.

Sasol offers CTL technology to India

It is reported that South Africa’s petrochemicals giant Sasol is keen on promoting its ambitious coal to liquid transportation fuel technology in India and is seeking firm assurance from Indian government on the allocation of coal blocks for the purpose. As pre report, feasibility report into the project could be undertaken only after ascertaining the quality of the coal.

Mr Ed Cameron GM commercial of Sasol Synfuels International said that “Sasol is contemplating a USD 6 billion to USD 8 billion investments in India and a commercially proven technology but new in India. We are engaged in dialogue with several authorities in India including Planning Commission, ministries of coal and petroleum and natural gas.”

Mr Cameron, observing that a CTL plant could produce 500 MW to 1000 MW of electricity depending on the configuration, said that 5 such plants could replace 20% of India’s fuel imports by 2020. He added that a CTL plant having a capacity of 3 million tonne per annum could offer a clean diesel production of 68%, Naphtha production of 30% and LPG 2%.

Seeking access to appropriate coal blocks and enabling fiscal framework, Mr Cameron said that Sasol is committed to making CTL work in India. Sasol was looking at coal mines in Orissa, Chattisgarh, Jharkhand and Andhra Pradesh where the quality of coal could suit the technology it was planning to offer.

Sasol, which at present fulfills 30% of South Africa’s fuel requirements through coal based synthetic fuels, is also undertaking a pre feasibility study for the potential development of CTL facilities in China.

BALCO Korba power plant to close financing by March 2008

It is reported that Vedanta Resources Plc’s subsidiary BALCO Ltd is expecting to achieve financial closure for its upcoming 1,200 MW coal based power project in Korba in Chattisgarh by March 2008.

The project is being implemented at a total estimated cost of INR 4,810 crore at a debt equity ratio of 70:30.

BALCO is currently in the process of signing the power purchase agreement, following which the financial closure is expected to be achieved expeditiously. The land requirement for the project is estimated at 355 acres and the coal requirement for the plant is estimated at 19,600 tonnes per day, which is slated to be sourced from South Eastern Coalfields Ltd through MGR route.

The project recently received environment clearance from the ministry of environment and forests. BALCO has earmarked INR 125 crore for implementation of environment protection measures stipulated by the ministry of environment and forests while issuing environment clearance.

Essar Energy Holdings appoints Mr Nayyar as new CEO

Essar Global Limited’s subsidiary Essar Energy Holdings Limited has appointed Mr Naresh Nayyar as its new CEO and MD of Essar Oil Ltd.

At Essar Energy Holdings, he will be responsible for all operations and projects of the hydrocarbon business, both in India and internationally.

Paradip Port to commission IOC terminal by December 2007

It is reported that Indian Oil Corporation is likely to commission Paradip Ports Trust's single point mooring project by December 2007. The work to be completed involves installing the mooring and connecting the laid out pipeline with the mooring.

India’s union shipping ministry has fixed the port's traffic target for 2007-08 at 45.7 million tonnes, including 3 million tonnes of crude traffic materializing in the last quarter with the commissioning of the SPM.

Till September 2007, the traffic handled was around 20 million tonnes despite the setback in cargo handling in the past few months due to bad weather. As the situation stands now, the prospects of crude traffic appear to be remote. This means that the port has to settle for a traffic throughput of 42.7 million tonnes or so compared to 38.5 million tonnes in 2006-07.

A spokesman of PPT said that “We have to post 10% growth in throughput in 2007-08 over 2006-07 to achieve 42.7 million tonnes and till September 2007 our growth has been more than 12% despite suspension of normal operations for several days in the past few months due to bad weather. The bad weather has thrown up yet another problem as long queue of ships waiting for berths. More than 20 ships are now waiting at the port and we are trying our best to ease the congestion as early as possible.”

Puducherry inks PPA with NTPC Simahadri

It is reported that Puducherry government had signed an agreement with the NTPC on October 16th 2007 for purchase of power from the 2x500 MW Simhadri thermal power project in Visakhapatnam district of Andhra Pradesh. The proposed plant is expected to go on stream by 2011.

The agreement envisaged supply of 50 MW from the proposed plant. The actual quantum of allocation of power to Ponducherry from the upcoming expanded plant will be as per the decision of the union power ministry and the tentative cost of the power from the plant will be around INR 2.28 per unit.

Chinese steel exports in September slow down a bit

China's exports of finished steel products in September 2007 are reported at 4.44 million tonnes up by 9.1% YoY but down by 17.5% MoM from 5.38 million tonnes in August 2007. Exports of billet steel stabilize at 350,000 tonnes in September, basically in line with August's 340,000 tonnes. The total export of steel in September amounted to 4.79 million tonnes.

During the first 9 months, China's exports of finished steel products add up to 49.52 million tonnes up by 73.3% YoY the accumulative export figure for billet steel amounts to 5.96 million tonnes during January to September 2007 down by 2.8% YoY. The total export of steel during January to September amounted to 55.48 million tonnes.

In September 2007, imports of finished steel products are posted at 1.43 million tonnes down by 150,000 tonnes from a year earlier and imports of billet steel recorded a mere 20,000 tonnes.

During the first 9 months, imports of finished steel products are posted at 12.98 million tonnes, down by 8.2% YoY and imports of billet steel register some 190,000 tonnes down by 40% YoY.

In September 2007, imports of iron ore score 33.24 million tonnes up by 13.5% MoM over August2007. For the first 9 months, iron ore imports add up to 284 million tonnes up by 14.9% YoY.

(Sourced from MySteel.net)

Severstal wins license for South Korpangsky iron ore deposit

OAO Karelsky Okatysh, part of the mining division of OAO Severstal, announced that it has won an exploration and production license for the South Korpangsky area of the Korpangskoye iron ore deposit in Russia. OAO Karelsky did not say how much it paid for the license, which is good for 20 years and can also be extended beyond that date.

The area’s reserves, including deposits South Korpangskoye, North Kostomuksha and Korpangiyoki, are estimated at 80 million tonnes. The average magnetite iron content exceeds 27%.

South Korpangsky is near the Kostomuksha deposit, which is currently a major raw material base for Karelsky Okatysh. The South Korpangskoye deposit has already been explored and the properties of ores have been studied. Kostomuksha has been explored to a depth of 600 meter with a magnetite ore content of about 1 billion tonnes.

Karelsky Okatysh plans to begin the development of the Western area of the South Korpangskoye deposit, with reserves estimated at 15 million tonnes of ore, by 2010. Anticipated production of ore from this area will make up some 2 million tonnes per annum to 2.5 million tonnes per annum.

Baosteel 9 month earnings surpass 2006 figures

It is reported that Baosteel Group Corp has already exceeded last year's full year profit in the first nine months, driven by demand from automakers, shipbuilders and construction companies and steel prices gained 12% in the nine months as capacity growth slowed after the government tightened loans to mills.

Mr Xu Lejiang chairman of Baosteel Group said at the 17th National Congress of the Communist Party of China in Beijing said that its company had profit of CNY 29 billion in the nine months ended September 30th 2007. That exceeds 2006 full year earnings of CNY 22.3 billion.

Mr Xu also said that Baosteel's production in 2007 is likely to increase by 24% YoY. Mr Xu said sales may exceed CNY 200 billion this year on production of 28 million tonnes. In 2006, the company had sales of CNY 181 billion with output of 22.5 million tonnes.

The Shanghai-based company said Baosteel, which has a capacity of 30 million tonnes, will grow in China and overseas through acquisitions. It plans to more than double capacity to 80 million tons, boosting sales to USD 50 billion and profit to USD 5 billion by 2012.

CVRD to invest USD 1.87 billion in expanding iron ore logistics

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 17% or USD 1.870 billion in expanding iron ore logistics.

CVRD said that “The increased iron ore production capacity depends increasingly on Greenfield projects, consequently requiring considerable investments in railroads and ports. It is for this reason that CVRD is investing to equip the EFC railroad with an iron ore transportation capacity of 225 million tonnes per year and the Vitória to Minas Railroad with 135 million tonnes per year capacity, simultaneously with the expansion of the Ponta da Madeira port to ship 215 million tonnes per year and Tubarão port to ship 120 million tonnes per year of iron ore. CVRD also operates and ships iron-ore from maritime terminals in Ilha de Guaíba and Itaguaí, in the state of Rio de Janeiro.”

CVRD added that to achieve these goals it is developing the North and South Corridors and, as mentioned, Carajás Serra Sul, which involves investments in both mining and logistics.

The details of various projects in this area is as under

Southern Corridor
2008 – USD 379 million
Total – USD 553 million
This is a project to increase the cacacity of the Victoria to Minas railroad (EFVM) and the port of Tubarão to support the growth in production to 20 million tonnes per year. Completion scheduled for January 2009.

Northern Corridor
2008 – USD 334 million
Total – USD 956 million
The expansion of the Northern Corridor will increase the iron ore transportation capacity of the Carajas railroad (EFC) to 160 million tons and the shipping capacity of the Ponta de Madeira maritime terminal to 107 million tonnes. Completion is programmed for the end of 2008.

Litorânea Sul Railroad
2008 – USD 43 million
Total – USD 414 million
The South Coast Railroad will be 165 kilometers long and will give access to the port of Ubu in the state of Espirito Santo. Completion of investments is scheduled for June 2011. Subject to approval by the Board of Directors.

Asian thermal coal prices surge due to supply crunch

Reuters reported that Australian spot thermal coal prices rose above AUD 76 tonnes on this week to a record, lifted by a supply crunch as Asian buyers scramble for more coal before the northern winter. According to globalCoal NEWC index based on FOB prices loaded at Newcastle showed that thermal coal jumped by AUD 4.52 WoW to AUD 76.16 per tonnes. A February and a March loading 65,000 tonnes cargo of Australian coal traded at AUD 77.95 a tonne DOB Newcastle.

A source from a major Australian producer said that "There just is not any tonnage available in the market. There is a rumor in the market that there are only one or two Panamax shipments in the market and that's driving up prices.”

A major Indonesian producer said it has settled its October 2007 to September 2008 contracts with some Japanese utilities at USD 75 a tonne for coal with calorific value of between 6,500 kcal per kilogram a maximum of 6% ash and not much than 14% moisture.

Record coal prices at AUD 76 a tonne could lure Chinese producers, such as Shenhua Energy Ltd and China Coal back into the export market. A trader said that Chinese producers were offering coal with calorific value of 6,000 kcal per kilogram at about USD 75 a tonne FOB China's Qinhuangdao earlier this month. The offer represents about a USD 6 premium to domestic prices which were hovering around CNY 520 a tonne.

Iron ore price talks may start in November

It is reported that iron ore majors BHP Billiton, Cia Vale do Rio Doce and Rio Tinto are slated to begin annual contract talks with customers next month on the price of ore shipments starting April 2008.

China Iron & Steel Association is holding the annual China International Steel& Raw Materials Conference, a prelude to the benchmark ore price talks, at the end of this month in Dalian. The Dalian conference will be attended by representatives from big three and first tier Chinese steelmakers including Baosteel, Wuhan Steel and Anshan Steel, who would give their own views on the iron ore market development.

Australian miners are pushing for a freight premium on top of their FOB contract price given that the landed cost of their iron ore in Asia is significantly cheaper than those of Brazilian and Indian ores. Currently Australian ore is a bargain with the freight cost hovering around USD 38 per tonnes as compared to USD 88 per tonnes for Brazil to China route.

Market observers are expecting a lengthy tussle between miners and Chinese buyers for the upcoming negotiations due in part to the surging freight rates.

(Sourced from.MySteel.net)

MMK output in 9 months up by 8.1% YoY

Magnitogorsk Iron and Steel Works announced that it boosted its steel production during January to September by 8.1% YoY to 9.934 million tonnes as compared to January to September 2006 period. MMK said that its production of pig iron dropped by 3.1% to 7.198 million tonnes. MMK's management attributed this decrease to maintenance works.

The production update is as under

In million tonnes

The production of major categories of steel products is as under

(In’000 tonnes)

Baosteel eying takeover of Xining Special Steel

Nanfang Daily reported that Baosteel intends to take over Northwestern China's Xining Special Steel in an attempt to expand its special steel business.

Officials from Baosteel has revealed that the parent company plans to invest some CNY 10 billion in strengthening its presence in special steel sector in coming years. Currently, Baoshan's special steel unit only produces some 1 million tonnes per year.

Xining Special Steel, based in Qinghai province, Xining has three main business sectors including ore mining, coking and steelmaking. It has an annual capacity of 1.3mln tons of special steel. Xining produces 40,000 tons of electroslag steel annually, the biggest producer in China. It also has captive Dahongshan iron ore mine in Gansu province and Baishanquan iron ore mine in Xinjiang Uighur Autonomous Region. Xining also boasts abundant coal reserves. In addition to access to the remote Northwest China market, Xining Special Steel's well developed industrial chain is also a big attraction for Baosteel.

However, Qinghai government seems to be quite keen on tying up Xining Special Steel with Western Mining Group, a large local state owned enterprise with a total asset of over CNY 15 billion. The mining group has ambition to vault into the world's top 50 miners by the end of 11th five year with a profit of CNY 2.3 billion in 2006.

(Sourced from MySteel.net)

Evraz plans to focus more on rail production

Bloomberg recently reported that Evraz Group plans to make more products used by it’s largest customer state owned Russian Rail and has set aside funds to upgrade tracks and rolling stock.

Mr Pavel Tatyanin CFO of the Evraz said that “It wants to build a mill making 50 meter rails, twice the length of those produced recently and use Nippon Steel Corp technology to make higher quality wheels and track.”

Mr Tatyanin said that “The economy remains such that rail transport makes sense, given the climate and massive distances. Evraz bought the biggest producer of rails in the US Oregon Steel Mills Inc in January.”

Mr Tatyanin said Evraz, Russia’s second biggest steelmaker will spend at least USD 690 million next year on modernizing technology at steel and coal operations in Russia US, South Africa, Italy and the Czech Republic. He said Evraz’s Oregon Steel holds a license to produce certain kinds of rail products using Nippon Steel technology. The license agreement expires this year, allowing Evraz to transfer the technology to other plants. The Russian company is also in talks with Nippon to upgrade the equipment. He also added that the Russian steelmaker will set construction deadlines and output volumes after talks with Russian Rail.

Russian Rail, accounting for about 13% of Evraz’s revenue will spend more than RUB 110 billion (USD 4.4 billion) this year and 10 trillion through 2030 to expand in Siberia and the Far East and add a high speed track to St. Petersburg. It operates the world’s longest network across 11 time zones.

Capesize rate falls from record as shipping futures decline

It is reported that rates for hiring the Capesize vessels used for transporting coal, iron ore and other dry goods fell from a record, tracking declines in shipping futures.

Hiring rates for a Capesize vessel, which can move 175,000 metric tons of cargo, dropped by 0.3% to USD 183,997 on October 15th 2007, after four days of rising to all time highs, based on data from the London based Baltic Exchange.

According to the Baltic Exchange in the market for Freight Futures Agreement, Capesize rates for the January to March quarter fell by 0.5% to USD 158,813, losing 3 % in the past three days. FFAs are used to speculate on or protect against swings in the cost of transporting commodities. The Baltic Capesize Index, a measure of rates for that class of vessel on different routes around the world, slipped 0.1% to 15,463 October 15th 2007. It has been setting daily records since October 9th 2007.

Mr Alex Harkess director for dry cargo chartering at Clarkson Asia Pte said “There was a bit of correction on the Capesize market but it is not because people are suddenly losing confidence in the market. It is more of an opportunity for some people to sell on the paper market.'' Mr Harkess said rising oil prices may push freight rates higher.

Mr Harkess said “We still see a very firm fourth quarter this year and first quarter next year. The delivery of new vessels next year is really going to impact the second and third quarter of 2008, so watch out, but in the meantime, make hay while the sun shines.''

ThyssenKrupp to expand galvanizing business in China

According to a Shanghai Securities News report, ThyssenKrupp Steel is reported to discuss with North China's Anshan Steel in next couple of weeks on possibilities of further investment in China, which may involve building a galvanizing JV in Anshan or Dalian to feed the automobile sector.

The German steelmaker said it would first negotiate with Anshan Steel plans of investing in Chinese galvanizing enterprises, while denied the rumor that it may move its Germany based galvanizing line to China, despite the increasing demand here.

It's learned the two enterprises are ready to set up another HDG line next March, adding 430,000 tonnes to the existing capacity of 400,000 tonnes which was generated by the first line built in 2003 by ThyssenKrupp Steel and Angang New Steel.

It said ThyssenKrupp would invest EUR 15 billion to meet increasing demand from China's growing automobile sector. And another euro 500 million will be plunged to expand lift, auto parts, industrial service and the steel business in next five years.

(Sourced from MySteel.net)

Geraldton Port to increase iron ore export capacity with new loader

It is reported that the Geraldton Port's iron ore export capability is set to increase substantially with the arrival of a new high capacity iron ore ship loader.

The custom built ship loader was due to arrive by sea at Geraldton Port this week on the St Vincent and The Grenadines flagged MV Zhen Hua 21, a modified Panamax tanker designed to transport container cranes and bulk cargo ship loaders.

Ms Alannah MacTiernan Minister for planning and Infrastructure said that the iron ore ship loader is the centre piece of the multi million dollar berth 5 iron ore expansion project. She added that "The berth 5 project will enable the port to process at least 12 million tonnes of iron ore per annum a great advance on the 3.5 million tonnes of iron ore per annum currently being exported through Geraldton."

Ms MacTiernan added that "The new facility is designed to load iron ore at a rate of up to 5,000 tonnes per hour, enabling the typical iron ore vessel to arrive, load and sail within a 24 hour period. She also added that this is a significant improvement on the 50 hours it currently takes to load these same vessels using the older, lower capacity berth 4 infrastructures."

Ms MacTiernan said that the new facility will also improve equipment reliability and service levels and give the port’s existing and future customers greater confidence when planning their operations and for ship scheduling.

US scrap export hits 9.62 million tons in January to July

According to the statistics, the total scrap export from America reached 9.62 million tons from January to July 2007 showing an increase of 37.6% compared with the previous year.

Turkey is the main destination with the largest import quantity of around 2.07 million from America accounting for 21.5% of US total exports. China and Canada are at the second and third places of the exported scrap.

Among the other countries in Asia, South Korea accounted for 817,000 tonnes a 128.8% YoY increase; Taiwan accounted for 769,000 tonnes up by 101.9% YoY; Malaysia accounted for 700,000 tonnes up by 69.1% YoY, Thailand accounted for 484,000 tonnes up by 52.9% YoY and India accounted for 372,000 tonnes up by 25.1% YoY.

SDI reports strong earnings, revenue and volume growth

Steel Dynamics Inc has announced that its third quarter earnings of USD 101 million after purchase accounting adjustments related to the company’s recent acquisition of The Techs in July of approximately USD 0.01 per diluted share.

SDI’s diluted earnings per share increased by 12% sequentially from USD 0.95 in the second quarter of 2007, but down by 2% than USD 1.09 in the third quarter of 2006. SDI’s third quarter diluted earnings per share of USD 1.06 are within the company’s range of USD 1.02 to USD 1.07 per diluted share updated on August 30th2007.

SDI’s third quarter revenues increased to USD 1.2 billion up by 27% than both the year ago quarter and the second quarter of 2007. Third quarter consolidated shipments of 1.6 million tons increased by 26% as compared to the year ago quarter. The sequential volume increase from the second quarter of approximately 336,000 tons, or 27%, was due primarily to increased shipments of 335,000 tons from the company’s steel operations, of which 231,000 tons were from The Techs and 110,000 tons were from increased shipments by the Flat Roll Division.

During the first nine months of 2007, net income grew to USD 297 million on revenues of USD 2.9 billion. Consolidated shipments for the first nine months grew by 15% to 4.1 million tons, compared to 3.5 million tons in the first nine months of 2006. The company’s steel operations showed increased year over year nine month shipments of nearly 513,000 tons or 14%.

Mr Keith Busse chairman & CEO of Steel Dynamics said that “From an operating standpoint, we saw sequential improvement from the second quarter, in spite of continued softness in flat rolled steels and some spotty slowness in merchant and specialty bar steels. The integration of The Techs is proceeding well. The Techs represents an increase in steel operating revenues and volumes.”

IUD Polska to purchase 75% of Gdansk shipyard

According to Puls Biznesu Ukrainian metallurgy group Industrial Union of Donbas' Polish unit, ISD Polska has been allowed to inject capital into the Polish Baltic Sea based Gdansk shipyard, a transaction which could gain it an approximate 75% stake in the shipyard

Puls Biznesu wrote "Ukrainian Industrial Union of Donbas received a green light to inject capital into the Gdansk shipyard. The deadline for submitting binding offers to buy out the right to acquire a issue worth PLN 300 to PLN 400 million from the Industrial Development Agency ran out recently.”

China may cancel VAT export rebates on seamless pipes

YIEH reported that the Chinese government is likely to cancel value added tax export rebates for seamless steel pipes, in order to curb its strong exports.

Actually, the VAT export rebates on seamless steel pipes have been reduced from 13% to 5% on July 1st 2007. Further cancellation of 5% tax rebate would clearly add extra cost on producers.

Therefore, China's seamless pipe mills have renewed their quoted prices recently and enclosed the condition of transferring the tax cost into buyers’ side.

Although the reduction has not been officially finalized, this has brought lots of concerns of buyers and hesitated their further orders for seamless pipes due to the higher purchasing cost from added tax.

Mount Gibson reports record quarterly output and sales

Mount Gibson Iron Ltd has announced that it has released its quarterly report for the period ended September 30th 2007.

It highlights the period with the following developments
1. Record quarterly production and sales
2. 35% production increase compared with the previous quarter
3. 69% sales volume increase compared with the previous quarter
4. Strong operational performance at Tallering Peak
5. Solid increase in production and sales from Koolan Island as open pit operations are established.
6. Crushing and ship loading capability increased at Koolan Island
7. Increases in Reserves and Resources with further increases likely

State government environmental approval of the Mt Gibson Iron Ore Mine and Infrastructure Project finalized. Commonwealth approval, based on the State recommendations is expected by early November 2007.

Mount Gibson entered into a Facility Agreement with HSBC Australia Limited and National Australia Bank Limited as the joint lead Arranger and Underwriting Banks for a USD 200 million debt facility.

In August 2007 the company entered into a Facility Agreement with HSBC Australia Limited and National Australia Bank Limited as the joint lead Arranger and Underwriting Banks for a USD 200 million debt facility to fund the refinance of the existing project finance facility and provide additional debt funding for the Koolan Island and Extension Hill iron ore developments.

ArcelorMittal plays waiting game over Laiwu acquisition

Interfax China reported that ArcelorMittal is still awaiting government approval for its proposed Laiwu Steel acquisition project, following the successful takeover of a Shandong steel cord producer.

AEDC to convert VLCC for iron ore transportation

In pursuit of lower transportation costs, Asia Energy Development Co Ltd has decided to rebuild a VLCC of 280,000 deadweight ton for iron ore transportation from Brazil to China. The VLCC will be brought into operation for 10 years.

It is known that the project will last half a year with fees of some USD 25 million. Plus maintenance and repair, the total fee will amount to some USD 30 million.

Seaborne freight rate takes up a considerable part of Chinese steel makers' raw material purchasing costs. At present, the rate for both routes of Brazil to China and Australia to China went up by over 100% year on year.

(Sourced from Mysteel.net)

Chinese steel imports into South Korea account for 53% of total

A recent South Korean government report showed Chinese products made up more than half of South Korea's steel imports in the first seven months of this year as domestic demand for them rose on cheaper prices and better quality.

In a report to the National Assembly, the Ministry of Commerce, Industry and Energy said that 8.32 million tonnes of steel products were imported from China in the January to July period, accounting for about 53% of the country's total steel imports.

The ministry said better quality control and cheaper prices are fueling domestic demand for Chinese products that are now competing with local ones in more value added areas. This is a change from the past, when Chinese steel made inroads only into areas where local mills were unable to meet demand."

The ministry is also moving with lawmakers to introduce legislation that will make it mandatory for Chinese steel products to meet South Korean industrial standards, in an effort to prevent the import of cheap sub standard products.

Atlas Iron reports drill results from Abydos project in WA

It is reported that highly encouraging assay results continue to be returned from the initial RC drilling completed at Atlas Iron Limited's Abydos Project located 100 kilometers south of Port Hedland in the Pilbara of Western Australia.

During August and September of this year Atlas completed an initial RC drilling program at Abydos for a total of 80 drill holes for 4059 meters. The program drill tested two target areas on both the Lalla Rookh and Pincunah Trends. Assay results have been returned from the first 45 RC holes. These holes were drilled into the newly discovered Trigg and Mullaloo prospects on the Lalla Rookh Trend. In total 26 RC holes have been drilled at Trigg with results of the first 16 having been reported. A further 19 holes have been drilled at Mullaloo.

DSO mineralization at Trigg has been drilled over an approximate strike length of 600 meters at an approximate holes spacing of predominantly 40 meters x 80 meters apart. Drilling has delineated a zone of mineralization up to 120 meters wide from surface and remains open along strike to the west and down dip. Mineralization at Mullaloo has been encountered over a similar strike length with widths up to 70 meters from shallow depths. Drill holes spacing are predominantly 20 or 30 meters x 80 meters apart.

Atlas in conjunction with international recognized geological consultants, CSA Australia Pty Ltd is currently undertaking an initial resource evaluation of the Trigg deposit. Results of this evaluation will be released in the coming weeks.

Mr David Flanagan MD of Atlas states that "It is exciting to be undertaking our first resource evaluation at the Abydos Project within two months of the first hole being completed. This is a credit to the Atlas exploration team and highlights the prospectivity of the area".
Atlas has not yet completed a resource estimate for the Abydos Project. While the company remains optimistic that the project will ultimately deliver resources and reserves this is not guaranteed. Given the early indications on prospectively, the close proximity to road, rail, port and existing BHPB deposits, aggressive exploration will continue at this project.

Atlas Iron Limited is working to complete environmental approvals and commence shipping of direct shipping grade iron ore from its Pardoo Project by October 2008. The company is targeting export of 1 million tonnes of DSO iron ore during the first 12 months of operations with production growing to 3 million tonnes per annum by 2010. Together with the development of the Abydos project the company is targeting an ultimate production of 6 million tonnes per annum of DSO before 2012.

Territory plan to raise USD 21 million

Northern Territory junior iron ore group Territory Resources announced that it launched a share purchase plan to raise up to USD 21.5 million to drive further company development in the areas of exploration, project development and the potential acquisition of new projects. The offer will open on October 26th 2007 and close on November 19th 2007.

The share purchase plan allows shareholders to obtain additional shares for USD 1 per share in allocations of either USD 1000, USD 3000 or USD 5000. Territory said the issue price represents a 12.7% discount to the volume weighted average price of the Company's shares in the five trading days prior to the announcement.

Mr Michael Kiernan chairman of Territory said that “The offer comes at a time of significant progress for the company. Territory Resources has made some great strides in recent months at its Frances Creek Project with the commencement of production at 1.5million tonnes per annum and our milestone first shipment of iron ore last month. We are now focused on continuing this development both through ramping up production towards 3 million tonnes per annum and through exploration excellence delivering an increase in resources."

Mr Kiernan added that with the help of this offer, Territory Resources is now focusing on becoming a USD 2.5 billion carbon steel Business. Last week, Territory Minerals lost in a competition against two other companies in a cash and stock bid to take over Consolidated Minerals. Chairman Michael Kiernan said the company had no plans to raise the bid, commenting that the winning party's offer was clearly superior to all competing offers.

US Steel gets 2 loans from JPMorgan

Associated Press reported that US Steel Corp entered into a two separate loan agreements worth a combined USD 600 million with JPMorgan Chase & Co.

In a filing with the US Securities and Exchange Commission, US Steel Corp said it secured a three year USD 500 million loan agreement and a one year USD 100 million loan agreement from JPMorgan.

Fox confirms iron ore potential at Mt Oscar

Fox Resources Ltd has announced that a low level detailed helicopter magnetic survey has been completed over the Mt Oscar Iron Ore project and has clearly defined several highly magnetic anomalies. Fox notes the helicopter magnetic survey shows there is a significant extent of the Cleaverville formation within the company's Mt Oscar ELA 47/1217.

The strength of the anomalies are measured in nanotesla and anomaly amplitudes of up to 120,000nT have been recorded with a background ambient magnetic of 55,000nT. Overall, given the anomaly amplitudes and initial magnetic modeling, it has been estimated that the associated local, highly magnetic western source has a magnetic susceptibility of 3 to 5 SI units, which is equivalent to 50% to 75% iron ore.

This western magnetic anomaly signature supports the presence of a highly magnetic unit of 400 meter to 500 meter strike and 100 meter to 200 meter thickness with good depth extents.

The Mt Oscar Iron Ore project is on ELA 47/1217 in the rich iron ore province in the Pilbara region of Western Australia and lies 30 kilometer south of the iron ore Port of Cape Lambert and 25 kilometer south of the Cape Lambert magnetite project.

This survey data will be used to locate well-developed, more localized zones of magnetite enrichment that are still of economic size and also hematite units in the same general area that could have direct shipping grades. A gravity survey which is planned for December will define zones of higher density which will aid in identifying areas of potential interest for hematite.

The company has been in discussion with a major iron ore company and these results will allow discussions to be fast tracked in respect to their potential participation in the project.

Mexican Imsa to resume HRC import from Japan

It is reported that Mexico's IMSA, one of Mexico’s largest steel makers, plans to import high quality carbon steel HR coil from Japan again after the first quarter of 2008.

Argentina's Ternium had spend USD 170 million to merge Imsa in July and Imsa stopped its purchase of hot roll coli from Japan but purchased them from Ternium's supplier Hylsamex.

Imsa has had the long term business relationship with Japanese suppliers and it seems Imsa will not only restart the business relationship with Japan but also keep buying the steel source from Hylsamex.

Amurmetall launches a new steel furnace

FIS reported that Amurmetall launches a new furnace intended for smelting a wide range of steels from carbon and low alloy steels. The equipment was manufactured by Italy's Concast.

The furnace is equipped with a 120MW transformer, six combined gas oxygen twyers burners, and three oxygen injectors.

Quest Minerals commissions new excavator in Pond Creek

Kentucky based operator of energy and mineral related properties Quest Minerals & Mining Corp announced that it has acquired additional equipments for its Pond Creek Mine at Slater’s Branch pursuant to a lease with an option to buy.

The excavator has been installed at the mine face and is capable of mining over 20,000 raw tons of coal per month. It has an enhanced scrubber system, which is designed to reduce dust at the head in order to increase visibility for the operator.

Mr Eugene Chiaramonte Jr president of Quest said that “We are very pleased to report that we have acquired and installed an additional Joy 14 to 10 miner. This acquisition gives us two operational 14 to 10 miners at Slater’s Branch, which should eliminate down time and increase operating efficiency."

Quest Minerals & Mining Corp acquires and operates energy and mineral related properties in the southeastern part of the United States. Quest focuses its efforts on properties that produce quality compliance blend coal.

NWR signs initial deal for Polish expansion

Thomson Financial reported that Czech coal miner New World Resources and Poland's Jastrzebska Spolka Weglowa signed a letter of intent to cooperate on the development of mining operations in Poland.

New World Resources in a statement said that “New World Resources and Jastrzebska Spolka Weglowa have commenced their joint evaluation of potential mining operations at Morcinek.

New World Resources owns the largest Czech hard coal mines in the Czech Republic OKD and has said earlier it is considering offering its shares in an IPO in Prague and London this autumn. Analysts have said that the success of the planned IPO will depend on the company's capability to acquire coal mines in Poland as its own coal supplies will expire within eleven years.

Review of 2006 and perspective of 2007 for Chinese steel sector

2006, in addition to being the year of mother of all mergers, was greatly influenced by happenings in the steel industry in China, which witnessed crude steel output increasing to 420 million tonnes. Chinese steel sector witnessed many happenings including some unexpected ones.

At the beginning of 2006, China steel market was covered by the atmosphere of productivity surplus, China steel price ran at low level, still mills saw high stock and most of them suffered profit loss, after great ups and downs in 2005, China steel market was still unstable in early 2006. Many global steel companies cut production and digested inventory, meanwhile driven by rapid global economy growth and the reestablishment stock, international steel price halted dropped and started to rise.

During 2006 China changed its role from a net steel import to a net steel exporter. When US steel price dropped after touching the peak, many industry insiders doubted the continuous growth in China steel export, while the fact is that China steel export reached 6.47 million tonne in Q1, 10.62 million tonnes in Q2, 11.51 million tonnes in Q3 and 13 million tonnes easing domestic market pressure. Despite of export jump Chinese mills faced price decline in H2.

Now, on one hand Chinese steel makers are facing threats if trade measures from various countries and on another their production of crude steel is forecast to reach 460 million tonnes in 2007, which is bound to result in surplus availability scenario. And the foremost question is that how will the China steel market be in 2007?

Chinas leading steel information provider SteelHome has prepared an Annual Report which analyzes China steel market for 2006 and perspective for 2007. The report addresses the burning issues being faced by Chinese steel makers and covers construction steel, plates, HR, CR, coated products, strips, seamless tubes, section, SS, iron ore, scrap, coke and ferro alloys.

If you are interested to know more about it please visit
http://steelguru.com/reports/detail/China_Steel_Market_Report.html
or send a mail at reports@steelguru.com