POSCO withdraws staffs from ground and seeks police protection

Kalinga Times reported that POSCO India, after failing in its attempts to start work on its 12 million tonne steel project, has started withdrawing staff from its office at Kujang of Orissa's Jagatsinghpur district. As per report, as many as 13 of the total 15 employees working at POSCO's project office at Kujang will join for duty at the company's head office in Bhubaneswar from October 18th 2007.

As per report, the local police authorities have directed POSCO India for such a move. The report cited an official of Kujang police station as saying that "We have asked POSCO officials not to enter the proposed plant site area in view of the prevailing tension."

Mr Sashanka Patnaik spokesman of POSCO said that "The police had asked company officials not to venture into the proposed plant site without prior permission of the police."

Meanwhile, Mr Soung Sik Cho CMD of POSCO India has written a letter to Mr Naveen Patnaik Orissa chief minister seeking police support for its employees to start work on its mega steel project in Jagatsinghpur district of the state. Stating that it was concerned about the safety and security of its employees, POSCO said in the letter that it required clearance from police for sending its employees to start land demarcation work for the project. The letter was dispatched to Mr Patnaik on Tuesday after the company received a letter from the Kujang police station in Jagatsinghpur that no company official should enter the site chosen for the steel project without their consent.

It may be recalled that the anti POSCO activists had detained four senior executives of the company for several hours on Saturday last when they had gone to the site earmarked for the steel project. Three of them were Korean nationals.

TATA Steel reaffirms commitment to Chattisgarh project-Report

IANS reported that TATA Steel is committed to its project in Chattisgarh despite delays in acquiring land for the plant. The report cited Mr Varun Jha VP of TATA Steel for the Chattisgarh project as saying that "Despite delays in land acquisition, there is no question of going back. TATA Steel remains committed to set up the plant in Chattisgarh."

Mr Jha however expressed solidarity with the state government, which is conducting a series of meetings with concerned farmers to complete the takeover process peacefully. He told that "I am happy with the efforts of the state government for acquiring land for the plant. The Bastar region is home to the famous iron ore reserves in Bailadila. For more than 30 years, these reserves have been mined and taken out of the region without any value addition in Bastar. It is therefore no surprise that this tribal dominated mineral region remains one of the most backward regions in the country."

Reiterating TATA Steel's commitment to build the project in Bastar, Mr Jha said that "Without economic growth and employment opportunities for local youth, the region would remain mired in extremist activities. The long awaited steel plant promises to change this stagnation and help achieve all round development of the region and its people."

TATA Steel had signed a MoU with Chattisgarh government in June 2005 to invest INR 10000 crore to build a 5 million tonne per year steel plant in 2 phases in Bastar district in Chattisgarh. However, the state government has not been able to complete the land takeover process for over 2,000 hectares required for the plant and township. A majority of the 1,707 landowners are refusing to surrender their land. Out of the project's total requirement of 2,063.06 hectares, 86.5% is privately held, 8.4% belongs to the government and the rest is revenue and forest land.

In September 2007, the state government announced a compensation package for the project and said that TATA Steel would pay INR 100,000 per acre of barren land, INR 150,000 per acre for mono cropped land and INR 200,000 per acre for multi cropped land, besides employment to one adult from each displaced family. It has also promised up to 2.47 acres of land under a land for land compensation scheme for those who are losing 75% to 100% of their land.

POSCO India seeking intervention from government

It is reported that the directors POSCO India are planning to meet Dr Manmohan Singh prime minister to discuss the fate of their proposed steel plant in Orissa amid severe opposition from locals, who are supposed to give up their ancestral land for their project.

As per reports, after the meeting the prime minister, members of the POSCO India Board, led by it’s newly elected chairman Mr Ku-taek Lee, would also hold a meeting with Mr Naveen Patnaik chief minister of Orissa in Delhi. The delegation would also try to meet other union ministers and senior officials of both the state and the central government.

POSCO India is struggling for last 28 months to implement its 12 million tonne per annum steel project after a MoU was signed with the Orissa government in June 2005. Stiff opposition from locals to land acquisition and uncertainty over getting a prospecting license for Khandadhar iron ore mines in Sundergarh district of Orissa have delayed the start of work on the project.

The situation on the ground is quite uncertain as the land owners are not willing to part with their ancestral land at any cost and have erected barriers. POSCO officials and even the state government officials have not been allowed to enter the project site for last one year. In fact, its officials have been abducted twice in five months.

Kerala for early pact with SAIL to revive Steel Complex

It is reported that Kerala government is looking forward to an early agreement with Steel Authority of India Limited for financial and technical cooperation for the revival of Steel Complex Limited in Kozhikode in Kerala.

AS per report, Mr Elamaram Kareem industries minister of Kerala had recently met Mr Ram Vilas Paswan union minister for steel and got an assurance that the project with the assistance of SAIL would be implemented in 3 stages.

In the first stage, technical experts from SAIL are already at the Steel Complex facility and working on enhancing the annual production capacity from the existing 20,000 tonnes to 36,500 tonnes. This is being done by scaling up the efficiency of the electric arc furnace and is expected to be completed by December 2007

In the second phase, a third furnace is proposed to be added taking up the production capacity further to 50,000 tonnes.

In the third phase, the state envisages an expenditure of INR 50 crore to establish a new rolling mill for the manufacture of TMT bars used in the construction sector. The mill will have an annual capacity to roll out 72,000 tonnes of TMT bars and it is slated to be completed within 18 months of the commissioning of the second phase.

Steel Complex, which was on the verge of closure, has improved its performance in 2006-07 with the sales turnover having gone up to INR 14.66 crore from INR 11.97 crore in 2005-06. In the first 5 months of the current year, it has registered a turnover of INR 7.33 crore, which is expected to cross INR 20 crore marks by the end of the year. It has also gone in for one time settlement of its dues to the banks and has settled INR 7.87 crore dues to the State Bank of India in 2 installments.

CIL to invites global mining majors for underground mining

It is reported that Coal India Limited has initiated the process of inviting foreign players to explore and operate underground coal mines in India. CIL would invite expressions of interest to outsource 5 blocks by April 2008 and is expecting a favorable response from large foreign firms like DBT, Joy mining and BHP Billiton.

AS per report, CIL has identified 5 coal blocks, 2 under Eastern Coalfields Limited and 1 each under Western Coalfields Limited, Bharat Coking Coal Limited and Mahanadi Coalfields Limited, which would be offered to these players for underground mining.

A senior CIL official said that “Underground mining is a very expensive and technically complex method for which Indian companies have neither the resources nor the technology.” He added that these companies had expressed an interest to come to India.

In order to meet the increasing demand from a fast growing economy, Indian government wants to explore underground mines together with open cast mines so that the gap between demand and supply of coal is narrowed. Underground coal accounts for mere 13% of total coal produced in India, with rest being mined from open cast mines. CIL produced 43 million tonnes of coal from underground mining in 2006-07 and has a target of increasing it to 55 million tonnes in 2011-12 and 57 million tonnes by the end of 2017.

Despite being a coal rich country, coal imports have been rising because the production has failed to keep pace with demand. One of the reasons for this is that CIL companies have not gone deeper than 200 meters to mine the coal. CIL is also planning to outsource coal prospecting to companies overseas.

Indian Railways to sell scrap by e auction

It is reported that union railway ministry is mulling over a move to switch over to online to conduct the scrap selling business to bring transparency in the lucrative scrap trade.

A senior railway ministry official said that "Currently, scrap is sold in open auction in the presence of concerned officials but the role of the mafia cannot be ruled out. Once it is online, then not only mafia role will be eliminated but there will also be complete transparency in the entire scrap trade."

He added that "A pilot project is being commissioned by the Southern Railway to sell scrap through e auction. This has been done on an experimental basis. There are some lacunae which need to be addressed before opting for full fledged e auction."

Indian Railways aim to earn about INR 2,000 crore from scrap sale in the current fiscal while it has already earned INR 538 crore in the first quarter of this year. It sells large quantities of scrap including about 15,000 wagons, 1,200 coaches, 80 to 100 locomotives every year through public auction. Indian Railways had earned INR 1,834 crore in 2006-07 while in 2005-06 the earning was INR 1,365 crore and INR 1,032 crore in 2004-05.

RINL to engage an advertising agency soon - Report

It is reported that Rashtriya Ispat Nigam Limited has released a brief to 8 advertising agencies and asked them to submit their credentials. It is reported that the agencies will be invited to make creative and strategy presentations by the end of October 2007.

As part of the brief, the agency will be required to assist RINL in market research to understand target groups and analyze feedback, as also develop a concept and theme for corporate and product campaigns in print, television, outdoor and in house media.

After the first round of presentations, three agencies are expected to be short listed for the final run. Vizag Steel will also probably consider media agencies, but only after it has finalized its creative agency.

As per report, RINL has planned an ad spend of INR 10 crore to INR 12 crore for 2007-08.

Orissa CM confident of implementing POSCO project

PTI reported that Mr Naveen Patnaik chief minister of Orissa has expressed confidence that POSCO India’s steel project, despite stiff opposition by local people at the plant site, which had forced POSCO to withdraw staff from its Kujang office, would be implemented in the state.

He told that "POSCO project is important both for the centre as well as the state government. We will certainly see that the plant progresses in all ways."

India asks Pakistan for meet on IPI pipeline

It is reported that India has sought to hold a bilateral meeting with Pakistan to resolve the lingering differences between the 2 countries over transit fees that Delhi needs to pay to Islamabad for gas through a pipeline from Iran to India via Pakistan.

A senior government official, citing Mr Murli Deora union petroleum & natural gas minister's statement last week while addressing a parliamentary panel, said that "Mutually convenient dates for bilateral meeting with Pakistan are being finalized."

Mr Deora's comments to panel came ahead of a meeting scheduled this week in Islamabad between Iran and Pakistan to discuss the pipeline project. India has decided to stay away from the meeting.

This would be second time India chose to absent itself from trilateral meetings. Last month, India did not participate in trilateral meeting of experts in Tehran. At that time, Iran and Pakistan vowed to press ahead with pipeline project even without India's participation, while India reiterated its commitment to the project.

India insists that transit fee issue must first be resolved between India and Pakistan before any trilateral meeting. The bilateral ministerial level talks with Pakistan are likely either in October or early November 2007. India, which initially urged Pakistan to waive transit fee, is reportedly willing to pay around USD 0.60 per million British thermal unit as transportation and transit fee to Pakistan for gas delivered at its border. Pakistan is seeking a better price.

NTPC signs MoU for Nabinagar coal based power project

It is reported that NTPC, on October 15th 2007, has signed an agreement with the Bihar government and the Bihar State Electricity Board to promote a JV company for establishing and operating a 3x660 MW coal based power project at Nabinagar site in Aurangabad district in Bihar.

The MoU was singed by Mr Rajesh Gupta energy secretary of Bihar, Mr T Sankarlingam CMD of NTPC Ltd and Mr Swapan Mukherjee chairman of BSEB in the presence of Mr Nitish Kumar chief minister.
The JV will have equal participation between NTPC and BSEB with power allocation to BSEB of up to 75% and the remaining power is expected to be made available for supply to other states.

NTPC is India’s largest power generation company with an installed capacity of 27,904 MW through 26 power stations and having 20% of all India installed capacity.

Rathi Bars to hike steel production by 25%

It is reported that Rathi Bars plans to increase production of high value steel by 25% from 75,000 tonnes per annum currently after the expansion of its existing capacities.

Mr Anurag Rathi director of Rathi Bars said that it is expected to decrease production cost of steel by 8% to 10% following expansion and modernization of its plants. He added that “Expansion and modernization of the existing facilities will help us in improving quality of the products, controlling costs and providing better returns to shareholders."

Mr Rathi said that the company is not looking at overseas markets and would be focusing of domestic supplies which have been increasing rapidly as a result of real estate boom.

CESC gets board approval to raise USD 150 million

It is reported that RPG Enterprises’ power utility and retailer CESC Limited will raise up to USD 150 million through fresh issue of equity to part fund its investments in retail and create new generation capacities as an independent power producer.

The committee of directors constituted by the CESC board has decided to re organize its authorized share capital by creating 28.25 million equity share of INR 10 each and simultaneously cancel 28.25 million cumulative re deem able preference share of INR 10 each.

Mr Sanjiv Goenka vice chairman of CESC said that power investments would be funded with debt equity of 1:2:3. In retail business segment, the funding would be through a mix of debt and equity in 1:1 ratio and the equity contribution of INR 600 crore was not too large to be a big issue.

Bihar, Jharkhand and UP may form JV for power project

It is reported that 3 states of Bihar, Jharkhand and Uttar Pradesh is planning to set up a 1,300 MW coal based power project under the JV route and have approached the power ministry for approval for the INR 6,000 crore project.

The proposal may be given approval soon after Central Electricity Authority completes the feasibility study for the project. Location for the project is yet to be finalized. The project is likely to use coal from closely located 4 to 5 blocks located in the states.

Tuticorin Port Trust chairman post falls vacant

It is reported that the post of chairman at Tuticorin Port Trust is vacant following the transfer of Mr NK Raghupathy ex chairman to the union ministry of food and consumer affairs, food and public distribution as additional secretary and financial adviser.

Mr Raghupathy, who was chairman at Tuticorin Port Trust and CMD of Sethusamudram Shipping Canal Project, was asked to hand over both the posts to Mr K Suresh chairman of Chennai Port Trust on July 28th 2007. Mr Suresh continues to hold additional charge to manage the Tuticorin Port Trust and the Sethusamudram project.

Mr Raghupathy, an IAS officer of 1975 batch West Bengal cadre, was appointed chairman at the Trust on April 2002.

Patel Engineering inks MoU with Arunachal for hydel project

Patel Engineering Limited has announced that it has entered into a MoU with the Arunachal Pradesh government for setting up the 100 MW Gongri hydel project in West Kameng district on built, own, operate and transfer basis for a lease period of 40 years from the commercial operation date.

Mr Ashwin Parmar director of Patel Engineering said that “It is already executing the Kameng 600 MW hydel project for North Eastern Electric Power Corporation on cash contract. Therefore, logistics will be easily managed and there will be saving in overhead costs as well.”

Arunachal government will be given power at the rate of 12% and the expected revenue from the project is INR 120 crore a year.

CVRD railroad in Brazil reopens after protest

Reuters reported that a railroad owned by Brazilian mining giant CVRD began to operate late on Thursday after authorities dispersed landless peasants that had been blocking the tracks in protest for two days.

CVRD said some 200 members of the radical leftist Movement of Landless Rural Workers invaded the tracks near the town of Parauapebas in northern Para state in the lower Amazon basin on Wednesday. The militants threw stones at a passing train, after which traffic was suspended. CVRD said the protesters, which later swelled to about 400, had brought tractors and supplies of food, indicating a likelihood of a prolonged siege.

CVRD said the protest had nothing to do with its operations as the protesters slogan was in defense of agrarian reform and against imperialism.

However the protest disrupted iron ore shipments and briefly left its pellet plant in Maranhao without raw materials as it stopped iron ore train from running. The Maranhao plant in Brazil's northeast produces 6 million tonnes of iron pellets a year.

The Carajas railroad run by CVRD, the world's biggest iron ore miner, transports 250,000 tonnes of iron ore per day from one of its main mines there.

Rio Tinto releases Q3 2007 operations review

Rio Tinto announced its Q3 2007 operations review

1. Near record iron ore production and shipments were achieved in the quarter and Australian production was 11% ahead of 2006 for the first nine months of the year, despite two derailments which impacted production for the third quarter.

2. Yandicoogina's capacity of 52 million tonnes per annum was reached during the third quarter, making it the largest single iron ore mine in Australia. The Hope Downs development of a 22 million tonne per annum mine and related infrastructure neared completion.

3. Margins in the Pilbara remain under pressure due to continuing increases in contractor and other mining input costs. Further measures have been put in place to ensure tighter control of manageable costs.

4. Mined copper production fell by six per cent compared with the same quarter of 2006, mainly attributable to lower grades, as expected, at Northparkes and Kennecott Utah Copper.

5. Production of refined copper was 30% above the level of the third quarter of 2006 when the Kennecott Utah Copper smelter was shut down for scheduled maintenance.

6. Higher gold grades at Grasberg contributed to a 35% increase in Rio Tinto's share of mined gold production compared with the third quarter of 2006.

7. Infrastructure challenges of congested ports and railways in Queensland and New South Wales continued to impact hard coking and thermal coal production in Australia in the third quarter, resulting in a decline of ten and 24% respectively, compared with the same quarter of the prior year.

8. Third quarter uranium production was five per cent higher than the 2006 comparative period, with the Ranger operation able to process higher grade ore following the successful implementation of dewatering strategies and optimization of the mine plan. This offset a reduction in Rössing production from lower grades.

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc a London listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Onesteel inks iron ore export agreement with Tangshan Guofeng

Mr Geoff Plummer MD & CEO of OneSteel Limited has announced the signing of another long term export iron ore sales agreement. The agreement involves in excess of 6 million tonnes of iron ore with Tangshan Guofeng Iron and Steel based in China’s Hebei Province.

The sales agreement between OneSteel and Guofeng will commence on November 1st 2007 and has a term exceeding nine years. The agreement is based on international benchmark pricing and includes a freight component for mutually agreed forward periods.

OneSteel will arrange and provide shipping. Iron ore for export to Guofeng will be loaded onto Cape size vessels using Whyalla’s transhipping facility that was commissioned earlier this year. The transhipping facility has now loaded 10 Cape size vessels.

Mr Geoff Plummer said “The signing of this fourth contract with Guofeng further secures OneSteel’s position as a long term supplier of iron ore to China and represents another key milestone for Project Magnet. Guofeng is a significant Chinese steel producer and we are very pleased to have them as a long term customer. I would also like to thank our marketing agent BHP Billiton for its excellent support and for introducing OneSteel to Guofeng.”

The sales agreement is the fourth long term contract to be signed for the iron ore exports that have been made available through Project Magnet, OneSteel’s USD 395 million investments in commercializing its magnetite iron ore resources in South Australia’s South Middleback Ranges. The four long term export contracts cover more than 23 million tonnes of the approximately 40 million tonnes of hematite lump and fines that OneSteel will sell over a 10 year period.

DGCX adds 3 Turkish rebar makers for rebar futures

It is reported that DGCX has approved new batch of rebar producers from Turkey for its proposed steel rebar future contracts, due for launch on October 29th 2007. The approvals aim to provide buyers and sellers a clear indication of the specifications and brands of steel rebar that will be priced, traded and delivered.

The list includes following Turkish producers
1. Izmir Demir Celik Sanayi AS
2. Ekinciler Iron & Steelworks Inc
3. Diler Iron and Steel Co Inc.

The initial list of producers announced earlier this month by DGCX include the following rebar makers
1. Al-Tuwairqi Group’s Al-Ittefaq Steel Products
2. Sabic Steel (Hadeed) of Saudi Arabia
3. Qatar Steel Company of Qatar.

Mr Ahmed Bin Sulayem director of DGCX said that “As the Middle East’s first commodity derivatives exchange, DGCX is committed to the development of futures trade. Since its inception, the exchange has brought some of the most innovative products to the region, enhancing value for investors and adding depth to the overall derivatives market. The Steel Rebar Futures Contract will be another first for DGCX. The listing of approved producers for steel is aimed at maximizing transparency and standardization of product quality.”

US August steel shipments down 4% YoY

American Iron and Steel Institute reported that for the month of August 2007, US steel mills shipped 9.209 million net tons down by 4 % YoY as against 9.591 million net tons shipped in August 2006 and up by 4.1% MoM as against 8.844 million net tons shipped in July 2007.

YOY comparison of YTD shipments shows the following changes within major market classifications:

1. Service centers and distributors down 11.4%
2. Automotive down by 1.1%
3. Construction and contractors’ products down by 2%
4. Oil and gas down by 8.8%

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

NLMK releases trading update for Q3 of 2007

Novolipetsk Steel has released the following regular trading update for Q3 2007.

The tables below show the production of principal steel products at NLMK's main production site in million tonnes.

Novolipetsk

NLMK's Danish subsidiary DanSteel A/S

VIZ-Stal

Stoilensky GOK

Altai-koks

NLMK in its release said that
1. The restoration of production levels at NLMK’s Blast Furnace No 6 in Q3 2007 resulted in growing pig iron and crude steel production volumes as compared with the previous quarter.

2. The 12 day scheduled maintenance of two 300 tonnes capacity converters in BOF Shop No 2 caused the growth rate of crude steel production to be lower than pig iron production and a slight decrease in volumes of commercial slabs. However, the rolled steel production volume in Q3 2007 exceeded the level of the previous quarter.

3. An increase in the production of hot rolled steel in Q3 2007 was due to an increase in export orders. The hot rolled and cold-rolled steel price developments on the global market and the existing cost structure resulted in higher margins for hot rolled steel export sales than for cold-rolled steel export sales. Thus, cold rolled steel production volumes went down against Q2 2007 due to an increase in hot-rolled steel sales.

4. The decrease in hot dip galvanized steel production in Q3 2007 compared to Q2 2007 was caused by increased production volumes of pre-painted steel and further development of product portfolio in this segment.

5. The technical modernization of grain oriented steel units aimed at improving qualitative characteristics resulted in a temporary decrease of grain-oriented steel production that should be offset in the next quarter.

6. The apparent decrease in heavy plate production volumes at DanSteel during Q3 2007 as compared with Q2 2007 was due to scheduled maintenance in July to August 2007.

7. During Q3 2007 VIZ-Stal non grain oriented steel production volumes grew by 80.6% compared with Q3 2006 as a result of increased orders for low alloy and intermediate alloy steels

8. Stoilensky GOK demonstrated stable levels of iron ore concentrate production. Sinter ore production volumes grew in Q3 2007 against both Q2 2007 and Q3 2006 due to favorable mining and geological conditions of the deposit.

9. In Q3 2007 coke production grew by 20.3% compared to Q3 2006, as a new coke battery was put into operation at the end of 2006. The decrease in coke production during Q3 2007 compared to Q2 2007 was caused by the shortage of coking coal supply and breach of supply contracts by several coking coal producers. We forecast that the shortage of coke and coking supply will persist during Q4 2007. This situation may result in price increases for Altai-koks’ products at a time of stable production.

10. The traditional price deterioration in Q3 2007 caused by seasonal factors resulted in hot dip galvanized steel price decrease. The slight fall of average hot rolled steel prices in Q3 2007 compared to Q2 2007 was caused by redirection of sales from domestic to export markets. The prices for other NLMK’s products during the reporting period were at the level or slightly above the level of Q2 2007

11. A strong iron ore pricing environment in Q3 2007 resulted in an increase in Stoilensky GOK’s average iron ore concentrate prices, as compared to Q3 2006. The increase of prices for Altai-koks’ products was due to a favorable market situation.

Global steel industry outlook to stay strong - Macquarie

Australia's Macquarie Bank said in research report released recently that the outlook for the steel industry remains strong and that “We have made small upgrades to our steel pricing outlook for the next two years to reflect the expected tight supply & demand and the impact of higher raw material prices."

The report said world steel demand continues to grow strongly. Following an 8.8% growth in 2006, Macquarie said it had seen some slowdown in 2007 which it expected to continue into 2008. It said “Nevertheless, global demand in these 'slower' years is still expected to stay above 6.5%."

Macquarie Bank said robust demand growth is creating extremely strong growth for new capacity and should keep prices at high levels in the coming years as capacity growth struggles to keep pace with demand. Macquarie added that "We calculate that the rise in raw material costs we are projecting will cause steelmaking costs to rise by AUD 60 per million tonnes to AUD 70 per million tonnes in 2008. Our average price forecast price of AUD 43 per million tonnes suggests some margin compression."

Macquarie said that it has upwardly revised its global average hot rolled coil steel prices which represent average prices in the domestic markets of Germany and the US and export prices in Europe and Asia. Average hot rolled coil steel prices were revised to AUD 588 per million tonnes in 2007 up by 1.4% from a previous forecast of AUD 580 per million tonnes. For 2008, the bank raised its forecast to AUD 631 per million tonnes up by over 5% from its previous figure of AUD 600 per million tonnes. In 2009 Macquarie forecasts average prices of AUD 612 per million tonnes up by 3% from its earlier figure of AUD 593 per million tonnes.

Macquarie stressed that this was for what are essentially spot prices and that the major steel mills may be more successful in pushing though cost plus pricing in their major annual contracts with steel mils, where average prices are still below these spot levels.

Ryerson shareholders approves merger with Platinum Equity

Ryerson Inc announced that at a special meeting of stockholders held, its stockholders voted to approve the merger agreement providing for the acquisition of Ryerson by affiliates of Platinum Equity LLC.

Ryerson also announced that the Canadian Competition Bureau has provided clearance of the proposed acquisition. The Canadian Competition Bureau's clearance was received on October 15th 2007.

Ryerson expects the transaction to close on or about October 19th 2007. Upon the closing of the transaction, Ryerson will become a wholly owned subsidiary of Rhombus Holding Corporation and the Company's common stock will no longer be listed on the New York Stock Exchange.

Rhombus Holding Corporation is owned by a private investment fund or funds affiliated with Platinum Equity, LLC. In connection with the closing, Ryerson expects that its shares of common stock will cease trading on the New York Stock Exchange effective as of the close of the market on October 18th 2007.

Ryerson Inc. is a leading distributor and processor of metals in North America, with 2006 revenues of USD 5.9 billion. It services customers through a network of service centers across the United States and in Canada, Mexico, India and China.

Rio Tinto receives all regulatory approvals for the Alcan Offer

All regulatory approvals required for the global closing of the proposed acquisition of Alcan by a subsidiary of Rio Tinto have now been received.

The Offer is scheduled to expire at 6PM Canadian Eastern Time on October 23rd 2007.

Blaze at Corus Recar BF cast house halts production

It is reported that a major blaze stopped production at a Corus blast furnace and work at Redcar fell silent following a fire on the cast house floor, in the furnace itself, involving coke and hydraulic oil.

Employees were evacuated as the fire broke out at around 4.30 AM yesterday. None was hurt. About 30 firefighters were called to the scene, the last engine leaving the site several hours later.

A spokeswoman for Corus said that "There was a fire in the early hours of this morning, but it was soon under control. Cleveland Fire Brigade was there. Our first priority with any incident is to make sure no one is injured and no one was. Several people were evacuated and with the help of the fire brigade the fire was quickly brought under control.”

He added that "We are currently investigating the cause and any damage. Production has been affected there will be none today.''

Vitkovice Valcovna Trub orders seamless tube mill equipments

Ostrava based Czech seamless tube maker VVT Vitkovice Valcovna Trub has placed an order with SMS Meer for the supply of a sizing mill a rotary hearth furnace and a reheating furnace as part of the 14” hot rolling mill. Commissioning is scheduled for June 2008.

SMS Meer would supply all the key components of the mill and the furnace equipment, including electrical equipment, media systems and technology. The scope of supplies and services furthermore includes the supervision of erection and commissioning, including training of the operating personnel.

The sizing mill consists of six stand positions and is equipped with adjustable roll stands for the production of tubes with very precise diameter tolerances. In addition, the roll stands have sliding shafts to permit quick roll changing.

The plant will be used to produce seamless tubes in the diameter range from 168mm up to 406.4 mm and wall thicknesses up to 60mm with a capacity of 100,000 tonnes per year. Material grades up to high alloy steel will be rolled.

Explosion at steel factory injures dozens in Vietnam

Thanh Nien newspaper reported that 5 workers remained in critical condition on Thursday after a powerful explosion injured dozens at a steel factory in central Vietnam. The explosion occurred on Wednesday at Truong Thanh Steel Ltd in the province of Quang Nam.

The newspaper quoted a steel company representative who said the explosion was caused by worker negligence when one of the gas cylinders caught fire.

But another source told the newspaper that the accident happened when a steam turbine malfunctioned. It added that “The cause of the explosion is still under investigation.”

China coal imports in September fall by 10%MoM

Reuters reported that China's September coal imports shrank by 10% from August to 3.62 million tonnes, keeping the country a net exporter of the commodity for three months in a row.

Chinese September coal imports were smaller than exports of 4.47 million tonnes in the month.

Imports for the first nine months totaled 38.61 million tonnes, exceeding exports of 38.01 million tonnes, but the country's net imports shriveled to 0.6 million tonnes.

Total imports for the first nine months were up 47.6%YoY. Coal exports for the first nine months fell 20.9%.

US weekly crude steel production up by 3.3% YoY

American Iron & Steel Industries reported that in the week ending October 13th 2007, US’s raw steel production was 2.133 million net tons while the capability utilization rate was 89.4 %. Production was 2.063 million net tons in the week ending October 13th 2006 while the capability utilization then was 86.2%. The current week production represents 3.3% YoY increase from the same period in 2006.

Production for the week ending October 13th 2007 is down by 0.1% from the previous week ending October 6th 2007 when production was 2.137 million net tons and the rate of capability utilization was 90.1%.

Adjusted YTD production through October 13th 2007 was 83.664 million net tons at a capability utilization rate of 85.8%. That is a 4.5% YoY decrease from the 87.682 million net tons during the same period 2006 when the capability utilization rate was 89.8%.

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

North and Latin American steel associations initiate common program

It is reported that representatives of five major NAFTA steel associations American Iron and Steel Institute, Steel Manufacturers Association, Specialty Steel Industry of North America, Canadian Steel Producers Association and Mexican Steel Producers Association met with representatives of the Latin American Iron and Steel Association on October 11th 2007 to discuss trade and other policy issues of common concern.

The steel producers of North, Central and South America agreed to initiate a common work program encompassing the following key points and principles as under
1. Support rules based free trade in raw materials, steel and steel containing goods.
2. Support the elimination of government subsidies to steel and steel related industries.
3. Support market based competition and private ownership of steel companies everywhere.
4. Support an end to restrictions by governments on direct foreign investment in steel companies.
5. Support effective national trade laws to counter trade-distorting practices by governments and producers in particular, in non-market economies.
6. Concerned about ongoing policies and market interventions by governments that have led to excess capacity and injurious surges of exports of steel and steel containing goods to the Americas.
7. Will keep each other, as well as our respective governments, informed, where appropriate, regarding bilateral steel policy dialogues with other governments and producers.

Iran to privatize 80% of industrial centers by next March

MNA reported that Mr Iraj Akbarieh Iran deputy industries and mines minister announced that 80% of the mineral and industrial companies will be privatized by the end of current Iranian year in line with enforcement of the Article 44 of the Constitution. He added that the caretaker industries and mines minister accentuated on accelerating the privatization.

Of five privatization bound subsidiaries of the ministry, almost all shares of four companies were offered in Tehran Stock Exchange, referring to less than 50% of state shareholding of National Iranian Copper Company and Iranian Aluminum Company.

In the second half of current Iranian year the permits of selling 51%, 48%, and 48% of the shares of Khuzestan Steel Company, Khorassan Steel Company and NICICO in the TSE will be issued respectively.

Tanggang new galvanizing line launched into operation

It is reported that on October 4th 2007 the aluminum and zinc plating unit in Tanggang began testing and trial production. The trial production amounted to 3,000 tonnes and the specification is 0.58mm, 0.8 mm, 1.0 mm and 1.2 mm.

The No 3 hot dipped galvanized production line in Tanggang is using cold rolled strips as raw materials, which takes continuous hot dipped galvanizing and DCC whole radiant vertical annealing furnace technology, with world’s advanced cleaning equipments, including caustic washing, scrubbing, rinse and drying. It can produce galvanized, GF and GL products, and can control the zinc thickness automatically.

The line has a design capacity of 400,000 tonnes per year and the high speed of the line reaches 180 meters per minute, producing materials with a thickness ranging from 0.3 mm to 1.8 mm, and 820mm to 1,650 mm width. And the steels include CQ, DQ, DDQ and HSLA, including regular spangle, mini spangle, no spangle and skin passed spangle products.

Ezz Steel to build a steel plant in Algeria

It is reported that Egypt's Ezz Steel signed a draft deal to build a steel plant in Algeria for domestic and foreign markets at a cost of USD 750 million. The signing ceremony in Jijel was attended by Mr Ahmed Ezz GM of Ezz Steel and officials from the Algerian Industry and Investment Promotion Ministry.

The investment will be expanded later by USD 500 million for the 1.5 million tonnes per year plant in the coastal town of Jijel, some 460 kilometers east of the capital Algiers.

Ezz Steel, which has been seeking to expand its business in the Middle East and North Africa, had said in March 2007 that it would build a steel rebars plant in Algeria to meet demand of the booming construction sector there.

Al Ezz Steel Rebars is the largest independent steel producer in the Middle East and North Africa, with a total actual capacity of 5.3 million tonnes of finished steel per annum in 2006. It is Egyptian market leader with over 65% market share in terms of sales. In 2006, it produced 3 million tonnes of long products and 1.8 million tonnes of flat products.

Symmetry Holding gets approval for acquisition of Novamerican

Symmetry Holdings Inc announced that it has received notice from the Minister of Industry that its offer to acquire all of the issued and outstanding shares of Novamerican Steel Inc has been approved by the Minister under the Investment Canada Act as being of net benefit to Canada.

In connection with the approval granted under the Investment Canada Act, Symmetry made commitments to the Minister of Industry with respect to the growth of Novamerican's Canadian operations that highlight the net benefit to Canada that will result from the transaction.

Symmetry previously received clearance under the Competition Act and the requisite waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired. Accordingly, Symmetry has now received all regulatory approvals necessary to consummate the acquisition of Novamerican.

Symmetry has set October 25th 2007 for its Special Meeting of Stockholders to consider and vote upon the proposal to approve the acquisition of Novamerican. On October 5th 2007, Symmetry first mailed its Notice of Special Meeting and related proxy statement. The close of business on October 2nd 2007 was the record date for the determination of stockholders entitled to notice of and to vote at the Special Meeting.

Symmetry is a company formed for the specific purpose of acquiring businesses that are in the basic industries sector. On June 21st 2007, Symmetry entered into an arrangement agreement with Novamerican, pursuant to which it plans to acquire all of the outstanding common shares of Novamerican by way of a court approved statutory plan of arrangement under the Canada Business Corporation Act.

Philippines hikes FDI target for mining sector

Reuter reported that the Philippine government has hiked its target for foreign direct investment into the mining sector to USD 10.4 billion by 2011 as compared to an original goal of USD 6.5 billion.

Mr Leo Jasareno head of the mining tenement management division at the Mines and Geosciences Bureau said that after several false starts, the Philippines is finally attracting a steady flow of FDIs to revive its minerals industry and Manila has increased its list of priority mining projects to 30 from 24.

He said that "Upon review of the present population of mining projects, we have found some projects that have the potential to reach the operating stage by 2011."

Philippines attracted nearly USD 103 million worth of FDI into its minerals sector in the first half of the year, a fraction of the overall target but more than half the USD 173 million that trickled in 2006.

Baosteel appoints 2 new DGM

Oriental Morning Post reported that China’s Baosteel Group has added Mr Zhao Xia and Mr Dai Zhihao as the two new deputy general managers in the new round of top management substitution.

The report said that Mr Dai Zhihao deputy manager of Baoshan Steel is promoted to the Group's deputy GM.

Former chairman of Bayi Steel Mr Zhao Xia is also appointed Baosteel Group's deputy GM, who yet still spends most time handling Bayi Steel's issues and seldom comes to Shanghai.

Mr Zhao Xia made great contributions to the merger of Baosteel and Bayi Steel, while Mr Dai Zhihao has been working in Baoteel for 24 years, both of which now fill in the vacancy left when Mr Xu Lejiang replaced Mr Xie Qihua to become the Group's general manager. The new top management will try to realize 80 million tonnes per year target in their tenure.

Baosteel Group's deputy general manager and its public unit's general manager Mr Fu Zhongzhe is meanwhile assigned to be standing committee member of the Group's party committee.

Status report on ArcelorMittal share buyback program

ArcelorMittal, under the new share buy back program as announced on September 13th 2007, announced that it has repurchased 1,120,000 shares from October 11th 2007 until October 17th 2007.

It said that the shares were repurchased at an average price of EUR 55.1181 and for a total amount of EUR 61,732,282.

Tertiary Minerals starts drilling on Kolari iron ore target in Finland

Thomson Financial reported that Tertiary Minerals PLC has started drilling on its Kolari iron ore target in Finland's main iron ore district, where drilling in the 1980s by Rautaruukki Oy found significant iron mineralization and that results should be known within two months.

The report cited Mr Patrick Cheetham chairman of Tertiary Minerals as saying that "With price rises for iron ore predicted to be around 35% for 2008, eventual production within Europe would show big transport savings against the cost of importing this commodity."

Mr Bernard appointed as CEO of ArcelorMittal Anaba

It is reported that ArcelorMittal has appointed Mr Bernard Bosquet as the new CEO of ArcelorMittal Anaba succeeding Mr Sanjay Kumar.

As per local media, arrival of Mr Bosquet who is from France, would be a gain due to his long experience, which he has acquired throughout his career as manager of several huge iron and steel companies worldwide.

The appointment of Mr Bosquet as ArcelorMittal Steel Annaba CEO followed the state of tension that the complex has experienced following former CEO decision to send 1200 workers to retirement.

Sasol facing strike in Secunda coalmine

Reuters reported that South Africa's Sasol, the world's biggest maker of fuel from coal, said a strike over wages by some 2,000 workers at coal mines owned by entered its third day on Tuesday, affecting output.

The workers downed their tools recently at the five coal mines in Secunda run by Sasol Mining, a unit of Sasol, which produces some 40 million tonnes of coal yearly.

Sasol said Operations of Sasol Synfuels a synthetic fuel maker using coal, and other Sasol business units were normal and had not been affected by the strike.

Mr Johann Van Rheede spokes man for Sasol said "The strike is still on but we can not yet quantify the impact on output, though the volumes are lower than normal. He said "Synfuels or other business units not affected. We are still in production, albeit at reduced volumes and we have adequate stockpiled feedstock."

ArcelorMittal Weirton mill closure to result in job losses

It is reported that ArcelorMittal’s, which had earlier announced the closing of its hot strip mill at its Weirton facility in the middle of December, decision could means the loss of 250 hourly jobs and 15 salaried positions.

In August 2007, ArcelorMittal officials had told United Steelworkers Local No. 2911 that the hot mill is not in the company’s 2008 business plan and will be shut down at the end of December. It had not said how many jobs would be lost in the move.

Mr Brian James general manager of Weirton facility said that by doing this it will put the plant back on track to become a world class tin producer.

But Mr Mark Glyptis President United Steelworkers Local 2911 said the news couldn't come at a worse time, just months before the holidays. He also says that he plans on fighting the company’s decision and this time he has the backing of the United Steelworkers. Mr Glyptis said he has a plan to try to save some of those jobs but he says it would be premature to go into details right now. He would only say that talks on the matter are on going.

Stroytransgaz opens branch in Abu Dhabi

It is reported that Stroytransgaz has formed branch in Abu Dhabi with the aim to represent its interests in the market of oil and gas construction in UAE.

Stroytransgaz is being gradually widening geography of production activity in Gulf States. In 2004 the company registered a branch in Saudi Arabia and presently participates in Shaybah Abquaiq Oil Pipeline Construction Project and Shuqaiq Water Transmission System Project. Establishment of UAE branch became the next step in development of cooperation with emirates including but not limited to perspective fuel and energy contracts.

PJSC Stroytransgaz is a Russian engineering construction company of more than 15 years history. Stroytransgaz is the only Russian company implementing major projects of oil and gas construction in 15 countries of the world.

Cleveland Cliff announces changes in finance positions

Cleveland Cliffs Inc has announced that the changes in its finance group including the appointments of Mr Terrance M Paradie as VP & corporate controller and Ms Kathleen L Bardwell as VP internal audit.

Mr Paradie joins Cleveland Cliffs from KPMG, where he served in a variety of roles since joining the firm in 1992, most recently as an audit partner. In his current position, Mr Paradie is responsible for Cliffs' corporate internal and external accounting and reporting, including Securities and Exchange Commission reporting and disclosures. He is also responsible for setting accounting and reporting policy, including the control processes and procedures for all areas of the Company.


Mr Kathleen L Bardwell brings more than 25 years' experience in accounting and internal audit, in conjunction with demonstrated expertise in risk assessment, corporate governance and SEC reporting. She joins Cliffs from STERIS Corporation where she served as senior director, internal audit. Prior to that, she was vice president, internal audit & tax, for Cole National Corporation.

Mr Laurie Brlas senior VP & CFO of Cleveland Cliffs said "As we expand Cliffs' presence as an international mining company, it is necessary that we establish the requisite talent and structure to support both our core business and our accelerating growth. With this objective in mind, we have made a number of new appointments and changes to Cliffs' finance organization, effective immediately."

Cleveland Cliffs Inc, headquartered at Cleveland in Ohio is an international mining company, the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steelmaking industry. The Company operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and three coking coal mines in West Virginia and Alabama. Cliffs also owns 80% of Portman Limited, a large iron ore mining company in Australia.

Carpenter Technology announces stock split

Carpenter Technology Corporation announced that its board of directors has approved a two for one split of the common stock in the form of a stock dividend. The stock dividend to effect the stock split will be payable on November 15th 2007 to shareholders of record at the close of business on November 6th 2007.

Its board also declared a pre split regular quarterly dividend of USD 0.30 per common share to the shareholders of record at the close of business on October 30th 2007.

Carpenter shareholders will be issued one additional common share for each common share held in the Company as of the record date. The Company anticipates that its common stock will begin trading on a split-adjusted basis at the start of trading on November 16th 2007 Carpenter, which had about 24,779,521 shares of common stock

Mr K Douglas Ralph, Senior Vice President Finance and CFO of Carpenter Technology said "The decision to split the stock reflects our confidence in the sustainability of the company's growth. By splitting the shares, we make investing in Carpenter more accessible to a greater number of investors."

Outstanding as of September 30th 2007 will have about 49,559,042 shares outstanding after the split is completed.

Kobe Steel to expand aluminum sales for automobiles

It is reported that Kobe Steel's aluminum and copper units are trying to expand the output and sales for automobile and information technology industry.

Kobe Steel expects the market growth for flat aluminum for automotive body and extrusion for bumper. Mr Hiroyuki Nakayama, president of aluminum and copper unit and executive VP of Kobe Steel expects the strong aluminum sales for automobile application.