SAIL forecasts Indian steel demand to be up by 12% to 14%

Steel Authority of India Limited is expecting that demand for the metal in India may be increase between 12% and 14% this year as the government spends on infrastructure and manufacturers expand.

Mr SK Roongta chairman of SAIL, in an interview on the sidelines of International Iron and Steel Institute's annual meeting, said that it plans to expand iron ore and steel output. He added that “India steel demand is very healthy. Construction will rise quite a bit in the Indian market because we are building our infrastructure.''

Mr Roongta said that SAIL is planning to almost double output to 26 million tonnes by 2010 to meet demand from construction companies and carmakers and compete with global rivals. SAIL can produce at a lower cost than competitors because all its iron ore comes from its own mines.

RINL orders BHEL for equipments for power plant expansion

Rashtriya Ispat Nigam Limited has signed INR 394 crore agreements with the Bharat Heavy Electrical Limited for expansion of its existing power plant with a 67.5 MW turbo generator along with a 330 tonnes per hour boiler. The agreement was signed by Mr NG Sahoo GM projects of RINL and Mr RP Gupta additional GM of BHEL in the presence of other senior officials of both companies.

BHEL Hyderabad would manufacture the turbo generator and the boilers would be made by BHEL Trichy. The order would be completed in 26 months, in time with the commissioning of RINL’s stage I expansion to reach 6.3 million tonnes capacity.

BHEL had in the past supplied all the four existing turbo generators and five boilers to RINL and was also involved in the supply of turbo blower 4 along with its consortium partner Man Turbo of Germany for which an agreement had already been signed.

Chinese MCC bids to build HSM for Essar Vietnam JV - Report

PTI reported that China Metallurgical Group Corporation has emerged as one of the bidders for building Essar Steel's 2 million ton steel plant in Vietnam. The report cited a Vietnam Steel Corporation official as saying that "MCC is among the bidders for the contract to build Essar's 2 million tonnes per year hot strip mill in Vietnam.”

The report quoted the official as saying that "The joint venture company, Essar Vietnam Steel Corporation, is in the process of awarding a two year engineering, procuring and construction contract for the mill to be built in Ba Ria-Vung Tau region of Southern Vietnam.”

The proposed steel plant is a JV wherein Essar would hold 65% stake, VSC 20% and 15% would be held by Vietnam General Rubber and is slated to start production by late 2009.

Bengal CM urges for national policy on iron ore

Mr Buddhadeb Bhattacharjee chief minister of West Bengal has recently reiterated his demand for a national policy for iron ore.

Mr Bhattacharjee said several industrial groups had proposed to set up steel plants in West Bengal. These include the Jindal, Videocon and Jai Balaji groups. He said it would be important to ensure raw material linkages for smooth operations of the proposed plants.

Mr Bhattacharjee said that he had already taken up the matter with the Prime Minister Dr Manmohan Singh. He added that “Steel plants coming up in the state cannot do without iron ore and coal. The government of India must announce a national policy for iron ore. Coal mines also must be handed over to local mining corporations.”

TATA Steel to raise INR 5481 crore through convertible shares

TATA Steel has announced that it would raise INR 5481 crore in a previously announced issue of convertible preference shares to partly finance its USD 13 billion acquisition of Corus.

TATA, in a statement, said that existing shareholders could buy 9 convertible shares for every 10 held. 6 convertible shares of INR 100 each would be automatically converted into one equity share of INR 10 on September 1st 2009.

In April 2007, TATA Steel had said that it would raise INR 4350 crore through convertible shares. In July 2007, it raised the size to INR 6000 crore, which at the prevailing exchange rate amounted to USD 1.48 billion.

Consultants short listed for deep sea port project in WB

It is reported that union ministry of shipping has short listed Moffatt & Nichols, Scott Wilson Kirkpatrick, Sandwell Engineering, Louise Berger Group, Royal Haskings, Mouchel Parkman, Cullen Grummitt and Roe as consultants for the INR 2,000 crore deep seaport project in West Bengal.

The consultants will be appointed by November 2007, to prepare the detailed project report for the purpose. The consultants will take 3 years to submit its report and after that tender will be invited to develop the port. They will have to choose the site for the development of the proposed port apart from providing traffic projection and kind of vessels the port will handle.

The port will be developed on a pubic private partnership basis.

SC issues notice on TATA Steel's plea on dispute with Ispat Karmet

It is reported that Supreme Court has stayed appointment of arbitrators in a matter of alleged contractual dispute between TATA Steel and Kazakhstan based ArcelorMittal’s OJSC Ispat Karmet.

As per reports, a bench headed by Justice AK Mathur, while staying the proceedings, also issued notice to a Kolkata company Lindsay International Private Limited on TATA Steel's plea challenging appointment of an arbitrator by the Calcutta High Court.

TATA Steel, while seeking stay of the High Court order, said that if it was not stayed then the arbitration between parties would commence on an issue where there was no dispute. TATA Steel contended that "There were no privities of contract between TATA and ITL. There is no arbitrable dispute between the parties and if any it is between Ispat and ITL Industries. Ispat to whom the machine was supplied has used the same for more than the warranty period and dispute cannot be arbitrated upon as the same is outside the scope of the agreement."

The alleged dispute pertains to faulty equipment supplied to Ispat Karmet. Lindsay, who had entered into a contract with Ispat Karmet in 2003 for supply of machinery, had contracted the job to TATA Steel, which in turn had let the job to ITL Industries. Lindsay and Ispat Karmet were also directly corresponding with ITL Industries for repair and replacement work. After the equipment was found faulty and could not be commissioned, Ispat Karmet had discarded it and requested ITL and TATA Steel to take them back.

Gujarat plans to develop 100 marine shipbuilding parks

It is reported that Gujarat is planning to develop nearly 100 “Marine Shipbuilding Parks” along its 1,600 kilometers long coastline, each with 10 to 15 shipyards to produce a whole range of ships, which is expected to create a market worth USD 30 billion for the State by 2020. These yards would be developed in private sector with FDI, with a capacity to build 0.3 million DWT per annum to 0.6 million DWT per annum each.

Mr Narendra Modi CM of Gujarat while addressing an International Seminar on Shipbuilding Opportunities said that with the aim of making Gujarat the shipbuilding hub of India and a global destination in this sector. Mr Modi said with the implementation of its plans, Gujarat expected to increase the global share of its shipbuilding industry from the existing 0.5% by ten times to 5% by 2010. He said “For this purpose, the state was developing its ports and port related activities in a big way.”

GMB has identified 10 clusters comprising 100 shipyards with an investment of INR 50,000 crore. More than 20 companies have evinced interest in shipbuilding with an investment of INR 11,000 crore. 6 companies are in the process of developing full fledged yards and 7 others have been given in principle approval.

Currently, commercial shipbuilding companies in India have a combined order book upwards of INR 20,000 crore, out of which more than 50%is contributed by shipyards in Gujarat. In this sector, India aspires to be a USD 20 billion industry by 2020. Gujarat is expected to contribute more than 60% to the business.

HC directs CIL and DVC to furnish bank guarantee

Mr Justice Sanjib Banerjee of Calcutta High Court has directed Coal India Ltd and Damodar Valley Corporation to furnish an unconditional bank guarantee of INR 100 crore for the purposes of their bid for taking over the Mining & Allied Machinery Corporation at Durgapur.

The court further directed both CIL and DVC to give an undertaking to that effect by October 12th 2007.

Earlier, CIL and DVC had filed a joint application seeking 3 months to assess the viability of the Mining & Allied Machinery Corporation. Responding to the petition, the court adjourned the sale of assets of Mining & Allied Machinery Corporation for 14 months.

DCI unveils dredger chartering plans

The Dredging Corporation of India in a released said that it has drawn up a long term acquisition program taking into account the market demand over the next 10 years.

DCI disclosed that in order to meet its immediate requirements and augment capacity to the extent possible, it proposes to charter dredgers through Trans Chart. Two chartered dredgers of varying capacities are in operation now and the company has placed orders for chartering of two more dredgers of 5,000 cubic meter and 7,000 cubic meter hopper capacities. Additional dredgers would be chartered through Trans Chart after establishing the technical suitability of the vessels.

DCI had contracted Mazagon Dock Ltd, Mumbai, in October 2005 for construction of a cutter suction dredger of 2,000 cubic meter solids per hour capacity, which is expected to be delivered by December.

As on March 31st 2007 the dredging capacity available with DCI was 79.85 million cubic meters. During the year, the quantity it dredged under various contracts was 76.38 million cubic meters, representing 95.65% of its capacity as compared to 91.10% in 2006.

RPG to invite global bids for CESC Haldia thermal project

It is reported that RPG Group will shortly invite global bids to home in on a heavyweight engineering, procurement & construction contractor to execute CESC’s 600 MW Haldia stage I Greenfield thermal venture. While there’s a strong possibility that CESC will source power equipment from a Chinese vendor, the global tendering exercise for the Haldia thermal project is slated to get underway after the RPG power utility has at least 280 odd acres in hand at the plant site.

An official said that “CESC will kick off the global tendering exercise for the 600 MW first units at Haldia after it acquires some 270 to 280 acres at the plant site. However, it is yet to take a call on the unit size; that is whether it will go for 550MW to 650 MW super critical units or settle for traditional 250 MW to 300 MW thermal units.”

CESC already has some 198 acres in possession at Haldia and has just received in principal clearance from the Haldia development authority for another parcel of 80 acres.

CESC may soon finalize a 3 million tonne annual coal linkage with Orissa’s Mahanadi Coalfields for the 600 MW power plants. Indications are that CESC will opt for power grade coal in the D or E categories based on availability and boiler technology.

IISI releases short range outlook on global steel demand

The International Iron and Steel Institute forecasts that 2007 will be another strong year for the steel industry with apparent steel use rising from 1,120.9 million tonnes in 2006 to 1,197.6 million tonnes in 2007, an increase of 6.8% YoY.

Latest projections for 2008 also suggest a similar global growth rate to this year at 6.8%. These figures represent an upward percentage point revision of 0.9 for 2007 and 0.7 for 2008 over the March forecast.

IISI said that “The BRIC (Brazil, Russia, India and China) countries, which accounted for about 41% of global steel demand in 2006, will again be leading the growth with an expected increase of 12.8% for 2007 and 11.1% for 2008. Overall, 77% of world growth in 2007 and 71% in 2008 will take place in BRIC.”

It added that “China apparent steel use is expected to grow by 11.4% in 2007 and 11.5% in 2008, accounting for 35% of the world total. For India, forecasts for apparent steel use point to an increase of 13.7% YoY in 2007 and 11.8% YoY in 2008.”

IISI said that “Very positive developments are forecast for the Russian market, where growth of 25% for 2007 and 9.5% for 2008 are led mainly by the energy and construction sectors. Apparent steel use in Brazil is expected to increase by 15.7% for 2007 and 5.1% for 2008, with strong fixed capital formation partly driven by public investment program.”

It further added that “In the EU (27), the growth in steel demand supported by healthy developments in Germany is mitigated by adjustments in the inventory positions, leading to a growth of 4% in 2007 and 1.4% in 2008.”

It said that “For 2007, steel demand in the NAFTA region appears less robust than previously anticipated, particularly in the residential construction sector. A negative contribution to growth also derives from inventory reductions. In 2008, improved prospects for the overall market conditions lead to positive forecasts of 4% growth.”

The IISI executive committee reviewed the forecasts at its meeting in Berlin and commenting Mr John Surma chairman of IISI said that “Although global economic risks have increased, the IISI forecast assumes that the recent credit market volatility will not move the US economy into recession. We are pleased to note that North Africa, South Africa and the Middle East are emerging as strong growth regions as higher energy and raw material prices associated with growth in China, as well as other developing nations, increase income and boost investments in these regions."

Short range outlook for apparent steel use 2006-2008

(In '000 of tonnes)

Brazil to China sea freight rate likely to hit USD 100 per tonne

Platts reported that despite China being on holiday all of last week, the Brazil to China iron ore freight rate soared to new record levels of between USD 85 per tonne to USD 91 per tonne based on the standard 160,000 tonnes cargo.

Early last week, rates for the route peaked at an all time high of USD 200,000 per day or USD 81.25 per tonnes. But on Monday, the fixtures were reported at USD 210,000 per day or USD 85 per tonne and USD 225,000 per day or USD 91 per tonne.

As per report, late last week, some ship brokers were forecasting a rate for the route of USD100 per tonne by year-end, which would amount to USD 246,000 per day.

Incidentally the current iron ore price is USD 61 per tonne FOB Brazil and freight is working out to be about 140% of the CFR cost.

ThyssenKrupp to post record results for 2006-07

It is reported that 2006-2007 fiscal year, which ended on September 30th 2007, was the best ever for ThyssenKrupp AG although it will present concrete figures at its annual press conference in Essen on December 4th 2007.

Dr Ekkehard Schulz executive board chairman of ThyssenKrupp during a press conference in Berlin reaffirmed the forecast contained in the company’s third quarter report, which predicted an increase in full year earnings before taxes to around EUR 3.6 billion excluding nonrecurring items and around EUR 3.2 billion including nonrecurring items, and a rise in sales to over EUR 50 billion.

Dr Schulz said “ThyssenKrupp has taken advantage of the strong world economy to achieve further growth in all five Group segments. Our mid and longer term goals remain unchanged. By 2010 the aim is to achieve sustainable earnings before taxes and major nonrecurring items of EUR 4 billion on sales of around EUR 60 billion. In the longer term, sales in the region of EUR 65 billion and earnings before taxes of EUR 4.5 billion to EUR 5 billion are planned.”

IISI elects new officers and welcomes new members

The board of directors of the International Iron and Steel Institute, who met on the first day of IISI’s 41st Annual Conference in Berlin, has elected the following new officers. The new officers are elected for one year, until October 2008.

Chairman
Mr Ku-Taek Lee chairman & CEO of POSCO

Vice Chairmen
Mr John Surma chairman & CEO of US Steel
Mr LN Mittal president & CEO of ArcelorMittal
Mr Paolo Rocca president & CEO of Techint

IISI board has also elected the 2007-8 Executive Committee. The members of the Committee are
1. Mr Mohammed Al-Jabr of SABIC Hadeed
2. Mr Hajime Bada of JFE Steel
3. Mr Daniel DiMicco of Nucor Corporation
4. Mr Jorge Gerdau Johannpeter of Gerdau
5. Mr Karl-Ulrich Köhler of ThyssenKrupp
6. Mr Ku-Taek Lee of POSCO
7. Mr Akio Mimura of Nippon Steel Corporation
8. Mr LN Mittal of ArcelorMittal
9. Mr Alexey Mordashov of Severstal
10. Mr Paolo Rocca of Techint Group
11. Mr John Surma of US Steel
12. Mr Sakari Tamminen of Rautaruukki
13. Mr Philippe Varin of TATA Corus Group
14. Mr Lejiang Xu of Baosteel Group
15. Mr Xiaogang Zhang of Anshan Iron & Steel Corporation
16. Mr Ian Christmas of IISI

IISI board of directors has also elected and welcomed the following companies and associations as new members of IISI

A) Regular Members
Steel companies producing more than 2 million short tons or 1.8 million tonnes per annum
1. Jiangsu Shagang Group Co Ltd, represented by Mr Wenrong Shen chairman & president
2. Metinvest Holding LLC, represented by Mr Igor Syry CEO
3. Ovako Holdings AB, represented by Mr Jarmo Yonteri

B) Associate Members
Steel companies producing less than 2 million short tons per annum
1. Electrotherm India Ltd
2. Latrobe Specialty Steel
3. Associacao Brasileira de Metalurgia e Materiais ABM

C) Affiliate Members
Steel industry institutes and associations
1. Australian Steel Institute
2. China Chamber of Commerce for Metallurgy Industry
3. Steel Manufacturers Association

Tenaris to supply premium products for Lukoil's Primoria Project

It is reported that Tenaris continues to expand its presence in Russia. Following the contracts to supply tubes and connections to national energy giant Gazprom, signed earlier this year, the company will be providing Lukoil's tubular OCTG products and connections needs for the Central Astrakhan oil field, part of the Primoria Project.

Tenaris will provide corrosion resistant tubes for sour service applications, along with TenarisBlue® connections to develop three exploratory wells to be drilled between 2007 and 2008. Tenaris alliance partner Sandvik also has a role to play in the project, providing CRA Sanicro™ 29 tubes. Supporting the running of TenarisBlue® premium connections, Tenaris will be providing on site assistance during the drilling of the first three exploratory wells.

Mr Gustavo Cedillo director of Tenaris Oilfield Services Sales for the Former Soviet Union explained the importance of the project as part of the company's strategy to position the company as a leading provider of products for the most demanding operational environments. He added that this is another important step in establishing our presence in the high end segment of the Russian market.”

From 2008-2010, Lukoil is expecting to increase the number of exploration and development wells in the Central Astrakhan field as part of an important investment program in this complex project in a sour environment with well depths between 4000 and 7000 meters.

Chinese steel output to hit 500 million tonnes in 2007 – BaoSteel

Mr Xu Lejiang chairman of Baosteel said at the inauguration of the CSV Baosteel project recently that China's steel output would expand to 500mln tonnes this year and the net steel export may reach 50 million tonne to 60 million tonnes.

However, he predicted that the growth pace of the country's steel output would moderate in next couple of years. He said “China's steel production is likely to hold steady at current levels in the future. But the steel shipment to other countries may not be able to sustain due to rising friction with the major trading partners.”

Mr Xu also warns that hectic steel output expansion has come along with heavy energy consumption and severe pollution. These issues may sparkle a wave of overhaul to the steel industry in coming years.

(Sourced from Mysteel.net)

ThyssenKrupp to change alloy surcharge system

It is reported that the operating companies within ThyssenKrupp Stainless AG are changing the way they calculate alloy surcharges with immediate effect. The new pricing basis for stainless steel flat products will apply from November for ThyssenKrupp Nirosta and ThyssenKrupp Acciai Speciali Terni in Italy.

The large fluctuations in prices, especially for nickel as one of the main alloying elements for stainless steels, have shown that it is necessary to link alloy surcharges more closely to raw material prices. The revised pricing system is based on a more timely calculation and publication of alloy surcharges. This will allow customers to plan their purchasing realistically based on current developments on the raw material markets.

Until now the published alloy surcharge has been based on average raw material prices two and three months in the past. From now on it will be based on price movements in the 30 days before the 20th of the previous month. Compared with the previous calculation method, the only change is the alloying element cost reference period. All other parameters remain unchanged. In the future, the alloy surcharge will be announced before the month in which it applies. As a result the calculation will be much more current and will reflect market movements more closely.

Alloying elements, mainly nickel, chromium and molybdenum, are used in the production of stainless steel. The alloy surcharge reflects the costs of these metals once they exceed a certain price. The alloy surcharge is added to the base price.

Mozambique plans to revive Enron steel project

Reuters reported that Mozambique's government planned to push ahead with development of a USD 1.1 billion steel project that was cancelled after the collapse of US energy trading firm Enron.

Mr Sergio Macamo industry & trade director of Mozambican in an interview with Reuters said that a feasibility study for the project outside the capital Maputo would be finished next year and that construction could begin shortly afterwards. He added that "We are reviving the project. Our plans are that if everything goes well, the project would be operational in 2011."

Mr Macamo further added that the project would require technological support from a partner, likely the South African government.

Enron had a 50% stake in the project, which was forecast to export 2 million tonnes of steel slabs per year. Enron cancelled plans to invest in the Maputo Iron and Steel Project in 2002 after the disgraced Houston based firm filed for bankruptcy in the wake of a massive accounting fraud scandal.

UVIS consolidates SS assets into Centravis Limited

Ukraine largest supplier of stainless steel UVIS Ltd recently announced that its business transformation implemented by combining its manufacturing, service and trading assets into a single integrated structure an international holding Centravis Ltd.

The newly born holding includes production capacities of Nikopol stainless pipe mill and an extensive network of trade companies and agents in Western Europe, USA and CIS countries.

A long term development program foresees that by 2010 Centravis is to shift from regional leaders to the world producers of seamless stainless pipes. Total investment into production facilities and new technologies of Centravis holding will amount to USD 115 million in 2007-2008.This will allow to increase production capacities twofold or more, improve the product quality and expand assortment. Manufacture modernization will be backed up by IT infrastructure reinforcement, warehouse system and regional trading net enhancement, ERP and CRM systems implementation as well as TQM introduction according to ISO 9000. This will help to create an effective and transparent logistic, sales and servicing system exclusively customer oriented.

Primary assets of the holding are located in Ukraine and managed by Mr Atanasovs’ family.

South Korea likely to amend laws to protect industries from takeovers

It is reported that a Korean version of the US Exon Florio Act will be adopted to protect Korea's key industries from hostile foreign merger and acquisition attempts. Korean government will likely introduce the system in a revision of a presidential decree.

The move is a reversal from the administration's continued rejection of demands from parliament and business groups for a law to protect Korean companies from foreign hedge funds. The government was reluctant to introduce the protection out of concern that it might discourage foreign investment. The Korean Exon Florio Act would block foreign investors from trying to take over major Korean companies like Samsung Electronics or POSCO.

According to the National Assembly committee on commerce, industry and energy and the Federation of Korean Industries, the government sent a revision of a presidential decree to restrict foreign investment to a parliamentary bill review subcommittee on September 18th 2007.

The revision allows the minister of commerce, industry and energy to restrict foreign investment with the agreement of a National Assembly committee if a foreign takeover would pose a threat to national security. The ministry of commerce, industry and energy presented the revision as a compromise, as the National Assembly and business groups have been demanding protective measures despite the government's resistance.

Some lawmakers on the commerce committee and business leaders are not satisfied with the measure, since it comes in the form of a decree and not a law. The commerce committee and the government will decide on whether to introduce the measure by revising the decree or passing a law at a meeting of the bill review subcommittee on October 15th 2007.

Germany to produce 48.6 million tonnes of crude steel in 2007

The German Steel Federation forecasts the German steel industry will produce 48.6 million tonnes of crude steel during 2007, raising its forecast from a production estimate of up to 48 million tonnes.

Mr Dieter Ameling president of German Steel Federation during a speech in Berlin said that the new forecast corresponds to up by 3% YoY, after the industry produced 47.2 million tonnes crude steel during 2006.

World's top steel trading countries

In 2006 China jumped over Japan, Russia and the EU25 to become the World's biggest steel exporting country. China's new pre eminence as top exporter has seen an increase across most product groups and across most export markets including Europe, North America and South America. China, with exports of 50 million tonnes in 2006 is exporting at the rate of a million tonnes a week. Indian exports grew by 23% in 2006 although Russian exports are slowing with more and more steel staying at home to feed a buoyant domestic economy.

World top Steel exporter

(Iron and steel statistics Bureau)

The US and the EU15 remain the key steel importing regions to imports of around 40 million tonnes in 2006. The EU imported a record 39 million tonnes in 2006, 12 million tonnes more than in 2005, 4 million of which came from China. The USA similar to the EU also imported an extra 12 million tonnes in 2006 up by 42% on 2005 with significant increases in imports form China and Russia although the tide has now turned and US imports are currently on a downward trend. China slipped from 2nd largest importer in 2005 to 4th largest in 2006 as China became more self sufficient in steel supply. Imports into the Middle East continue to remain strong and, particularly, steel for construction into the United Arab Emirates.

World top Steel importer

(Iron and steel statistics Bureau)

Jubail Energy to start seamless tube mill in Q1 of 2009

Middle east media reported that construction of Jubail Energy Services Company’ seamless pipe mill is under way at the Jubail Industrial City and the production start up is planned for first quarter of 2009 with a production capacity of 500,000 tons of seamless pipes covering OCTG products and line pipes for the oil and gas industry.

Danieli Spa Italy is supplying the seamless pipes mill to Jubail Energy Services Company to match demanding market conditions for OCTG seamless pipes in the Middle East.

Jubail Energy Services Company is aiming to fit in the highly competitive environment of seamless pipes manufacturing by producing its items with the latest technology available, committed to the highest qualitative levels, shorter supply chain to its users and offering competitive rates for its products.

Jubail Energy Services Company’s capital is SR750 million, 51% owned by Industrial and Energy Service Company and the rest by different Saudi and non Saudi investors.

Steel ingot price continues upward trend in Vietnam

According to the Vietnam Steel Association, the price of steel ingot has so far skyrocketed to the highest level of USD 600 per tonne to USD 618 per tonnes and shows no signs of slashing. The price in August 2007 increased by nearly USD 100 and USD 200 per tonnes in comparison with that in August 2006 average figure.

VSA attributed the price hike of to China's reduction of 20 million tonnes in steel output, causing a supply shortage. Additionally, China's plan to increase the tax rate on steel ingot export by 10% to 25% has also led to an increase in the price of steel ingot over the past month. It further added that steel ingot price in the world market followed suit, also contributing to the price hike in local market.

Structural steel is currently sold by affiliates of the Vietnam Steel Corporation at a price of between nearly VND 9.6 o VND 10.1 million (USD600 to USD 630) per tonnes up by VND 200,000 (USD 12.5) per tonnes over that in early October. However, the price hike has not hindered the purchase power. According to the VSA, it sold nearly 300,000 tonnes of steel in September, 50% higher than the monthly average.

VSA forecast that the price of steel ingot might reach VND 13 million (around USD 800) per tonne.

Highveld puts vanadium back unit in operation

Reuters reported that Highveld Steel & Vanadium resumed producing vanadium after a transformer supplying electricity to its plant was fixed.

Mr Alex Oehmen general manager at Highveld's vanadium unit in Vanchem said that Highveld fixed the power supply problem last week but lost a total of 100 tonnes of output during five days of power failure. He said that "We are back to full operation and running at full capacity."

Peru proposes levy cuts on steel products

According to a report by the Andina news agency, The Lima chamber of commerce believes a Peru government’s proposal to eliminate levies on 33 categories of industrial products will benefit the steel sector significantly.

As per report Peru's cabinet has approved the proposal the ministry of production proposed the elimination of the 12% levy on products such as iron ore, hot rolled and flat steel, non alloyed steel, iron and steel profiles and coke.

Mr Silvia Seperack CCL foreign commerce manager in the report said that "This measure will allow for more competition in the steel sector to expand plant capacity."

Steelmakers in Peru include locally owned Aceros Arequipa and Siderperú, controlled by Brazil's Grupo Gerdau.

Ural Steel concludes contract with Kryogenmash

FIS reported that Ural Steel has concludes contract with Kryogenmash where the agreement stipulates the construction of a state of the art unit KdAr 30 making 30,000 square meter per hour of gaseous oxygen, 6,700 kilogram per hour of liquid products nitrogen, oxygen and argon as well as neon helium mixture and krypton xenon concentrate.

Under construction are the storage system and product pipelines for the storage and transportation of air separation products. Technical gases will be used in open-hearth, electric steel welding and coke chemical works of the combine.

China punishes 3900 in 571 accident probes

According to the China’s ministry of supervision, Chinese supervision authorities have investigated 571 big accidents with 3,931 officials punished in the past five years. A press release of the China’s ministry of supervision said that this was one of the several special actions the ministry launched since 2002, based on complaints received from the public.

In 2005, the ministry started a campaign against government officials and managers of state owned enterprises who have stake in private coalmines, jointly with the Central Commission for Discipline Inspection of Communist Party of China.

The release added that after a year of investigation, 148 officials were punished and stake worth of CNY 709 million (USD 94 million) was withdrawn. It said that the ministry and CCDI also pushed relevant departments to pay CNY 17.55 billion (USD 2.33 billion) of defaulted compensation to farmers who lost their land in government-driven projects since 1999.

According to the press release, by 2005, defaulted salary of CNY 33.7 billion (USD 4.48 billion) was also paid to migrant workers. It further added that by January 2007, the government of all levels had paid CNY 183.4 billion (USD 24.39 billion) of defaulted payment to contractors in construction projects, accounting for 98.6% of the total money they had owed by 2003.

Antam operating damaged smelter at 20MW

Australian Business News reported that PT Antam Tbk operating its FeNi III ferronickel smelter at a power load of 20MW, following the completion of partial repairs on August 26.

Antam will continue to carefully monitor the furnace and ramp up to no higher than 25MW. It will operate at lower levels during the investigation as to what caused a leak to occur on June 16.

Antam's 2007 revised production forecast remains at 16,000 tonnes of nickel contained in ferronickel. This excludes 400 to 2000 tonnes of additional production from a potential toll smelting agreement.

To ensure a safe and stable operation, Antam estimates production of 17,000 tonnes of nickel contained in ferronickel in 2008.

AK Steel reaches health care settlement with Middletown retirees

AK Steel announced that it has reached agreement with a group of retirees from its Middletown Works to settle a lawsuit stemming from the company’s initiatives in 2006 to reduce its retiree health care costs in order to improve its competitiveness. The settlement agreement covers about 4,600 current Middletown Works retirees and the agreement is subject to approval by the US District Court.

Under terms of the agreement, AK Steel will transfer all of its health care obligations for the covered retirees to a Voluntary Employees Beneficiary Association trust, which will be managed solely by the retirees’ designees and will be utilized to fund the retirees’ covered benefits. AK Steel will initially fund the VEBA trust with a contribution of USD 468 million, with three subsequent annual contributions of USD 65 million each, for a total of USD 663 million. In exchange for this funding, AK Steel will have no further liability related to the Middletown Works retirees covered by the agreement.

AK Steel said that it intends to fund the initial USD 468 million trust contribution through one or more sources, including its existing cash balances and credit facilities and possibly the capital markets. It added that it expects the initial trust contribution to occur in the first quarter of 2008. As of June 30th 2007, AK Steel’s total OPEB liability was approximately USD 2.1 billion, of which approximately one half was related to the Middletown Works retirees covered by the settlement announced.

Claymont Steel lowers guidance for Q3

Claymont Steel Holdings announced that its third quarter net earnings would only be 5 cents to 10 cents a share because of lower than expected production and shipments. Claymont Steel Holdings said that its third quarter EBITDA will be cut by approximately USD 7.5 million and fourth quarter EBITDA would be reduced by roughly USD 2.3 million.

Claymont Steel Holdings had to deal with the restart of its reheat furnace in August following an upgrade during the recent annual Plate Mill outage, which led to the soft output and shipments.

In September, the company's operational performance improved and is expected to return to a level in line with expectations in October. The market conditions and the Company's resulting order book and spreads for the quarter were all consistent with expectations including the strengthening predicted to occur going into the fourth quarter.

Mr Jeff Bradley chairman & CEO of Claymont said that "While I am disappointed in the timing of the recovery of our reheat furnace, which resulted in a 20% reduction in projected shipments in August and September, our performance in the latter part of September is very encouraging and validates the investments we made in July. Our order book and spreads in the third quarter were very solid, and we are seeing the expected strengthening as we enter the fourth quarter."

Claymont Steel manufactures and sells custom discrete steel plate in North America. Claymont Steel's headquarters and manufacturing facilities are located at Claymont in Delaware.

Xstrata Zinc Mount Isa zinc lead concentrator report fire

It is reported that a fire in the conveyor system to the Heavy Medium Plant at Xstrata Zinc's Mount Isa zinc lead concentrator on September 28th 2007 resulted in property damage and an interruption to operations.

The fire originated at a redundant sampler chute that was in the process of being removed from a conveyor circuit, as part of the ongoing expansion of the concentrator capacity to 8 million tonnes per annum. The fire was rapidly extinguished and there were no injuries to any mine employees.

The zinc lead concentrator recommenced operations the same day but will operate at a reduced capacity until repairs are completed. It is estimated at this early stage that repairs will take between 4 to 6 weeks, impacting approximately 25,000 to 30,000 tonnes of zinc metal and 15,000 to 20,000 tonnes of lead. The incident is covered by an insurance policy and is not expected to result in any material impact on Xstrata’s earnings.

Union Pacific hauls 17.1 million tonne coal in September

Union Pacific has announced that it delivered 17.1 million tons of coal out of Wyoming’s Southern Powder River Basin in September, making it the best September on record.

The company also announced the following monthly SPRB coal delivery records:
1. A record 1,114 coal trains were loaded in September, the first time UP has loaded more than 1,100 trains in a 30-day month.
2. A daily average of 37.13 trains loaded in the SPRB in September versus the previous daily average record of 36.96 trains loaded in February 2005.
3. A single-day loading record of 45 trains in September versus the previous one-day record of 44 trains in January 2007.
4. A consecutive seven day record set during the last week of September with 278 trains loaded, versus the previous consecutive seven day record of 271 trains in August 2007.

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing US population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.

POSCO receives excellent supplier certificate from Ford

It is reported that on August 3rd 2007, POSCO received a Q1 certificate for excellent supplier from Ford one of the top 3 automobile manufacturers in the USA. Ford provides the Q1 certificate for suppliers to obtain high quality components including auto steel sheet. It is conferred to only those suppliers who pass the rigorous Ford standard, which is stricter than global standards, in every sector including product quality, production system and observation of shipment deadline.

Ford evaluated the production process of auto steel sheets and quality management system in Gwangyang Works two times since last June. In addition, it comprehensively reviewed POSCO’s product quality and shipment deadline in its plants in Australia, Turkey and Taiwan.

Winning this certificate, POSCO further raised its status as a global supplier for American auto makers, following the certificate for quality from DaimlerChrysler last December.

Upon the Q1 certificate from Ford with strict standards, POSCO is expected to raise its name and product awareness in car and car component manufacturers in the Americas. Moreover, it will have a preferential opportunity when Ford selects its supplier of steel materials for projects of new model development. Meanwhile, POSCO’s auto steel sheet has been highly reviewed by world’s leading carmakers, such as Volkswagen, DaimlerChrysler, Honda, and Nissan. Last December, POSCO gained the quality certificate for AHSS from DaimlerChrysler and last May, Volkswagen gave POSCO excellent supplier award for quality and shipment as only one steel producer.

POSCO also plans to expand its Supply Chain Management to 40 places mostly in markets with a high growth opportunity by 2010 and increase its processing capacity to 4 million tonnes. In addition, it will enhance its status as the global manufacturer of auto steel sheet, which can grow with its clients by actively implementing its Early Vendor Involvement activities with major car producers in Japan, China, Southeast Asia and Europe.

Territory resources buys stake in Matilda Mineral

Australian resources group Territory Resources has recently announced that the company has invested in the growth of mid tier mineral sands producer, Matilda Minerals.

Territory has completed an AUD 2.75 million investment via a placement of 5 million shares at 55 cents, a 7.35% premium to the 10 day VWAP. Territory’s current shareholding in Matilda totals 8.6% and Territory Chairman Mr Michael Kiernan has been a Non Executive Board Member since December 2006.

The money raised will be used as working capital to kick start a drilling and exploration program at the highly prospective Cape York Peninsula mineral sands development in far northwestern Queensland. Matilda has successfully negotiated with the traditional owners to commence exploration for heavy minerals at Cape York, an area previously having limited exploration in the 1960’s.

Mr Michael Kiernan chairman of Territory Resources said the investment in Matilda was a strategic move to access a very simple mining operation with low capital costs. He added that “Matilda Minerals has been the quiet achiever in the top end of Australia investing AUD 5 million towards successfully establishing the high grade ziron and rutile rich minerals sands mine on the Tiwi Islands north of Darwin.”

He also added that “With production generating cash flow at the Tiwi Islands operation, Territory saw an opportunity to invest in a solid business with a significant upside for shareholders. A major focus for Matilda moving forward will be the exploration and development of the company’s Cape York operations. An exploration program is on track to commence at Cape York immediately following the granting of an EPM permitting exploration which is imminent.”

Mr Kiernan said “The Northern Territory is the gateway to Asia. It is the closest Australian mainland port to major markets such as China, and offers major freight and logistics advantages.”

TDG delivers EUR 5 million per year savings for Corus

TDG recently announced that it is delivering EUR 5 million a year in cost savings for Corus after taking on the management of its logistics operations.

Mr Mark Starosolsky director of TDG’s Corus business said that savings have been achieved by finding individual trucks more backloads, reducing empty running, and making the route network more efficient. Mr Starosolsky adds "We have achieved year one savings for Corus in line with our expectations and already the TDG Corus platform has considerable industry recognition. Our IT system allows staff to see the sequence of loads, pick up and delivery times and details of individual consignments."

The logistics firm says it is slicing one million miles off the 40 million a year traveled on behalf of Corus a saving of 500,000 liters of fuel. Mr Starosolsky added that “Through planning efficiencies, we will save more than a million vehicle miles each year, will implement health and safety best practice across sites and provide improved service levels to Corus customers."

Bangladesh called to declare Northern Region as national coal zone

It is reported that speakers at a seminar entitled "Development of greater Rangpur and Northern Bangladesh: Problems and Prospects" held recently demanded declaration of northern region as "National Coal Zone" and formulation and implementation of coal and natural resources based development of the north and western Bangladesh.

The seminar revealed that a reserve of more than two billion tons of quality coal has been discovered in five locations in northern districts. Speakers opined that the traditional development strategy failed to deliver well-proportioned development of the country creating regional disparity. Development of business and industrialization has been greatly impeded due to lack of communication and utility infrastructure in the region.

The speakers pointed out that in a situation of dependence on primitive agriculture and absence of economic activities and the people of the north expected quicker extraction of mineral resources and implementation of mineral resource based development of the undeveloped north.

They said that some vested interested groups are involved in foul plays to create constraint to extraction of coal and natural resources. These groups are identified as brokers of carbon traders engaged in so called 'carbon emission suppression.

Speakers stressed on immediate extraction of coal and other minerals from the five coalmines. Since the government has identified private investment as vehicle for industrialization and economic development, local and foreign private investment must be encouraged to invest in coal mining that would ensure deployment of resource and technology and would contribute to create backward linkage industries, power generation and distribution, communication network, expansion of trade, generation of employment opportunities in the north western Bangladesh.

Minister pledges support for African steel

It is reported that for its dogged zeal to play a leading role in the steel mills sub sector of the Nigerian economy, despite the challenges being faced in that sector, the African Steel Mills Ltd has been commended by Chief Sarafa Tunji Isola minister of mines and steel development of Nigeria.

The minister made the commendation while expressing satisfaction with the facilities and pace of expansion at the company’s site at Ikorodu in Lagos during his visit penultimate week. He also pledged federal government’s support for mines and steel industries, saying that government was particularly going to encourage local investors in steel development of the nation, even as he cited the African Steel as a company the government was proud of.

The minister said that “I am very satisfied with what I have seen here. And I can tell you I am very proud of you in developing this place. Between the last time I came here and today, I can see a lot of changes. The government of President Yar’Adua is interested in people like you. Because I have visited some steel complexes, I can’t compare them with what you have.” He added that government meant business in steel and solid minerals development.

The ministry further added that "Solid minerals and metals would serve as the mainstay and use as non oil growth of the Nigerian economy. The issues are very simple the president is interested in people who are investing in this sector. Mr President is very committed to protection of local industries because these industries no doubts contribute immensely to our economic development. Let me assure you