Indian SS capacity sufficient – ISSDA

PTI reported that, amid concerns that the government may curb exports to contain rising inflation, stainless steel makers said that there is no dearth of the commodity in India and as such they should not be treated at par with carbon steel industry which is facing flak for raising prices.

Mr NC Mathur president of Indian Stainless Steel Development Association, in a letter to union finance minister Mr P Chidambaram, said that "In view of major concern of the government about spiraling inflation and rising steel prices, stainless steel should be examined in exclusive separation in terms of its supply and demand in India. There has neither been a short supply nor any major change in prices over the last few months, much in contrast to the carbon steel industry products used in construction and automotive sector."

Pointing out that nearly 30% of stainless steel is exported from India after meeting domestic demand, Mr Mathur reminded that Indian stainless steel producers had increased prices in May 2007 owing to record breaking high cost of nickel, but following reduction and stabilization of nickel prices they reduced prices and passed it on to consumers.

Ban on steel exports can hurt economy – ISA

PTI reported that, amid the government move to ban exports of finished steel, steel producers said that curbs on shipments could lead not only to bleeding of their coffers but also to a loss about INR 20,000 crore to India in foreign exchange earnings.

Mr Moosa Raza president of Indian Steel Alliance said in a letter to Dr Manmohan Singh said that "A major part of exports of steel consists of products which do not have a domestic market or are surplus to domestic requirements. This material will become an immense idle inventory, adding to woes of the industry."

Mr Raza said that with export price at about INR 1,100 to INR 1200 per tonne, FOB and domestic ex works price prevailing around USD 850, the incremental USD 200 to USD 250 margin translates to INR 4,000 crore of loss per million tonne on an annualized basis with current exports at about 4.5 million tonne per annum.

He said that total percentage of steel exports is not more than 6% to 8% of total domestic production. He added that "Would a total ban on the export of steel make steel available in significant quantities within the country to ease inflationary pressures?"

Mr Raza further added that with a blanket ban on exports, what would happen to the steel which has to be produced or to the equipment established which would be rendered idle and in fructuous. He asked "Will it not be a direct loss to the national economy?"

Rail transportation of iron ore has become costlier again

It is reported that rail transportation of iron ore has become costlier again. With effect from April 1st 2008, the classification has been revised upward to Class 180 from the current Class 170. This is in keeping with the Railway Minister’s favorite practice of hiking freight rate outside the Budget proposals.

More important are various other imposts such as busy season surcharge, congestion surcharge, development charge and terminal charge in addition to punitive charges, demurrage charges, rent on land used for railway sidings and for some particular section higher freight under freight rationalization scheme.

For example, from April 1st 2008, the congestion surcharge has been hiked to 100% from 60%. The cost of transporting iron ore by rail in 713 kilometer long Bimlagarh to Paradip port jumped from INR 615.40 per tonne in April 2005 to INR 1,714 per tonne in April 2008. The per tonne kilometer cost thus increased from around 86 paise to more than INR 2.4 during the period.

Bangladesh to restart talks with TATA for investment plans

Bangladeshi media reported that Bangladeshi government and TATA Group have agreed to restart talks over its stalled USD 3 billion power, steel and fertilizer investment proposal. The move is a response to a letter from TATA to the finance adviser in which it asked for a resumption of talks that have been on ice since August 2006.

Following the letter, the finance ministry instructed the Board of Investment to invite TATA's representatives for fresh dialogue.

A high official of union finance ministry said that "We received a letter from the TATA Group in the middle of February 2008 where they sought a fresh dialogue to settle the multi billion dollar investment proposal. Following the letter the ministry, after consulting with the government policy makers, decided to resume the dialogue." He added that the government wants to wrap up the dialogue and settle the investment deal before December 2008.

In 2005 the TATA Group initially proposed setting up a 1,000 MW power plant, a steel mill with an annual production capacity of 420,000 tonne and a 1 million tonne capacity fertilizer unit in Bangladesh. Although the negotiations reached stalemate in 2006 significant progress had been made. Both sides provisionally agreed on a 15 year guarantee of 1.25 trillion cubic feet gas and around 3 million tonnes of coal supply to TATA annually and upgrading of gas pipeline from the current 24 inch diameter to 30 inch diameter. The Asian Development Bank agreed to provide financial support for development of the gas pipeline. During the year long series of negotiations it was also agreed to allow TATA a 10 year tax holiday facility, and guarantee uninterrupted gas supply. The two sides then agreed on awarding of a coal mine for exploring around 3 million tons of coal a year to TATA in the middle of Phulbari and Barapukuria coal fields. However the decisions were never approved at ministry level.

Mineral rich states unhappy with New Mining Policy

Mr Naveen Patnaik chief minister of Orissa said that "Unless, a copy of the amendment bill to the MMRD Act 1957 is circulated to mineral bearing states, no meaningful discussion can take place."

Mr Patnaik in yet another letter to Prime minister Dr Manmohan Singh said that "The ongoing initiative of the ministry of mines to hold talks with officers of mineral based states on the proposed amendment is mere formality as details of the amendments are not available with the states."

Mr Patnaik requested the Prime Minister to issue necessary directions to the ministry of mines to send a copy of the proposed amendment bill to state governments so that they can be deliberated upon at the highest level within the states first. He said since the mineral issues have a large impact on development of the concerned states, it is only appropriate that state governments are fully apprised of the proposed changes before they are introduced in parliament.

He recalled that on December 19th 2007 chief ministers of Chhattisgarh, Jharkhand, MP, Rajasthan and Orissa had met the Prime Minister and discussed the draft mineral policy. Subsequently the chief ministers had submitted a joint memorandum in March 2008 after the National Mineral Policy was tabled in the Rajya Sabha.

It may be noted that the mineral rich states have jointly opposed the proposed national mineral policy and the amendments to the act. They have taken the stand that the amendment will result in monopoly of big mining companies, dilution of the value addition within the state principle and minimization of state role as far as grant of mining lease etc is concerned.

BAI urges government to control steel prices

Builders Association of India said that the government should immediately intervene to rein in rising prices of steel, which accounts for 35% of their raw material costs.

Mr Anand Gupta general secretary of Builders Association of India said that "The price of construction grade steel has gone up by 70% in the January to March 2008 period to around INR 50,000 per tonne from INR 31,000 in December 2007. If the government does not intervene immediately, all infrastructure projects will come to a grinding halt."

Mr Gupta said that since steel accounts for 35% of the raw material costs, the commodity itself has caused an additional 20% cost push on the building and construction community, which has the horrendous task of building India's infrastructure and real estate. He added that the government should do away with the taxes and duties levied on the steel industry and allow people to import the commodity as freely as possible.

He is critical with the steel makers as well and said that an inquiry should be made on the rising steel prices. He said "I just can not understand the reasons behind such a stiff rise of steel price in a short span of 3 months when the government has not done anything to tamper the existing rates and duties or for that matter, with any policy."

TATA Steel stressing on safety issues

A few years on, TATA Steel could be the safest steel maker in the world.

Mr OB Krishna chief of safety department at TATA Steel said that "We have found that the accidents or deaths that take place within the works are not due to any major mishap but for the commonly accepted unfair practices. So, we have decided to first identify them and later do the needful."

He added that to ensure that TATA Steel becomes a completely accident free enterprise, the safety department of the firm has announced the rollout of theme based quarterly safety campaigns. The campaign for the first quarter on 2008-09 fiscal was launched by Mr HM Nerurkar COO of TATA Steel, along with Mr Raghunath Pandey president of TATA Workers’ Union at Steelennium Hall recently.

A TATA Steel spokesperson said that “The theme for the campaign is eliminating commonly accepted unsafe practice. The objective of the campaign is to identify unsafe practices and eliminate them through the plan do check act cycle. A mobile safety exhibition safety on wheel has also been developed based on the theme. It is an effort by the company to produce accident free steel."

Elaborate planning has been made by the safety department to ensure that even minute injuries could be evaded. To begin with, a campaign would be run across the departments to identify the so called commonly practiced unfair means, compensation would be given to workers who abide by the norms and awareness campaigns would be run within the departments from time to time. Secondly, some of these means would be prioritized and newer methodologies would be involved to deal with them later. International safety consultant Du Point has been roped in for a period of 3 years to implement the safety rules.

Left wings calls for iron ore mines for RINL

According to the CPI (M), the new mining policy spelt out by union government, with emphasis on exports, is dangerous and the domestic industries such as Rashtriya Ispat Nigam Limited will suffer as a result.

Mr Ch Narasinga Rao district secretary of the CPI (M) said that it is regrettable that the union government did not deem it fit to allocate captive iron ore mines to the steel plant. Mr Rao said that the government should give priority to the domestic industry first and the demand for captive mines to the Visakhapatnam steel plant could no longer be ignored.

He added that "At the rate iron ore is being exported t o other countries, experts are warning that the domestic industry will suffer in future and after 30 to 40 years India may have to import ore. Still, the union government does not seem to bother."

HZL raises zinc and lead prices

Hindustan Zinc Limited announced that it has increased zinc prices by INR 1,600 a tonne and lead prices by INR 500 a tonne.

It said that zinc would now cost INR 107,100 per tonne and lead INR 131,300 per tonne.

The price hike would be effective from April 12th 2008.

SAIL BSL gears up for Prime Minister visit

It is reported that preparations for the visit of Prime Minister Dr Manmohan Singh to Bokaro city on April 22nd 2008 is on in full swing. Dr Singh would be visiting Bokaro to lay the foundation stone of modernization and expansion plan of SAIL Bokaro Steel Plant.

As per report, the district administration held a meeting at collectorate to review various aspects of the visit. A detailed discussion was held on security measures, accommodation and transportation facilities.

Disruption in supply chain causing higher inflation – ASSOCHAM

Reacting on latest wholesale inflation rate of 7.41%, Mr Venugopal N Dhoot president of ASSOCHAM predicted that the way prices of essential commodities including food grains are shooting up, the inflation is expected to touch an alarming figure.

Mr Dhoot said that it is true that government in the recent past took several steps for containment of prices, the result of which would come down in next few months and the rising inflation will fall back to 4%. He said that inflation has become currently a global problem and if the rains are not adequate, the situation may further worsen.

However, he said that the interest rates should be brought down to help Indian Inc have liquidity and the government should ensure that supplies of essential commodities should be maintained as the current inflation has risen mainly because there are disruptions in supply demand chain.

Inflation will not affect coal prices – Mr Bagrodia

Even as the soaring inflation is the issue of the day, Mr Santosh Bagrodia newly appointed union minister of state for coal said that prices of coal would not rise.

Mr Bagrodia said that the prices of all the other items related to coal would be controlled and the topmost priority of the ministry is to ensure that coal reaches to the common people in villages.”

On the issue of illegal mining in the closed coal mines and death of miners who are trapped inside the mines, he said "It is a law an order issue and the local administration have to take notice of it.'

Taking note of the inhuman treatment of workers in the coalmines, Mr Bagrodia said that there would be no injustice to the workers. He added that "We will ensure that the maternity rules for women, who are working in coal mines, are ensured."

CIL WCL to introduce multi job concept in coal mining

PTI reported that, faced with rapid reduction of manpower, Coal India Limited’s Western Coalfields Limited has planned to introduce multi job concept in mining to maintain production and meet its future targets.

Mr DC Garg CMD of WCL said that "WCL has now over 64,000 workforce and every year, it is shedding 1,500 manpower on account of superannuation, while general recruitment is stopped. Unless it introduces multi job concept, it will be difficult to maintain production level and meet future targets."

Mr Garg said that it is going to bring in sophisticated technology in coal mining which required skilled workers. He added that "We can not recruit workers excepting in cases of land acquisition. We would impart training and counseling to the workers to be inducted for multi job."

Mr Garg said that at present an explosive carrier's job was limited to carrying only explosives and for rest of the period he was idle. He could be trained for drilling holes for putting the explosives and even do blasting in opencast mines. He added that "The industrial department has been asked to conduct a study to identify areas where multi job concept could be introduced."

Asked whether trade unions have agreed to the multi job concept, he said dialogue would be held with them on this issue. He added that workers to be inducted in multi job could be paid higher wages and there was provision for it.

Export target for 2008-09 too ambitious - ASSOCHAM

While welcoming most of stipulations of annual supplement to the foreign trade policy unveiled by Mr Kamal Nath union minister for commerce & industry, Mr Venugopal N Dhoot president of ASSOCHAM said that the target of USD 200 billion exports are too ambitious to achieve in view of global slowdown.

Mr Dhoot complimented Mr Nath by saying that extension of interest subvention for exporters for one more year is a welcome step. He added that "The other measures such as reduction of customs duty on import of capital goods from 5% to 3% under EPCG scheme are again a welcome measure. Still, other welcome measure includes extension of income tax exemption to 100% export oriented units till 2010."

He further added that though the target fixed for exports for fiscal 2008-09 has been fixed at USD 200 billion which is ambitious as the government is unlikely to achieve 2007-08 export target of USD 160 billion. He said ASSOCHAM expects only 15% to 16% of exports target growth in current fiscal which in realistic view should not be more than USD 170 billion.

National Mineral Policy likely to be delayed

It is reported that the implementation of the new National Mineral Policy is likely to be delayed again as the working group set up by the mining ministry comprising officials of mineral rich states is yet to reach a consensus over the proposed amendments to the Mines and Mineral Development & Regulation Act 1957.

Amendment to the Act is an integral part of the recently cleared National Mineral Policy, without which the policy merely remains an initiative on paper and amendments would have to be separately cleared by the cabinet before its introduction in Parliament.

An official source said that "The working group on the new mineral policy is holding extensive meetings with all the stakeholders to evolve a consensus over various provisions. The states still have a few doubts over some of the provisions of the policy and want to incorporate changes in the Act that suit their interest. This could delay introduction of amendments in Parliament, thereby delaying operationalising the policy."

It added that "In any case, the report of the working group would form part of a separate cabinet note that would be issued by the mines ministry to carry out amendments in the MMDR Act. The policy would finally get operational only after cabinet okays these amendments that are to be later passed by the Parliament."

The cabinet has cleared the policy despite objections from states such as Chhattisgarh, Madhya Pradesh, Rajasthan and Orissa. States have sharp differences with the centre over the proposal to continue exports of iron ore, curb powers of states by allowing seamless transfer of mineral license, restriction on denying automatic approval for extending mineral license, conditional permission allowing states to seek value addition from mineral concession applicants and limited permission to states for reserving mineral areas for public sector units.

Price bids for Tilaiya UMPP likely by May 2008

It is reported that Price bids for the 4,000 MW Tilaiya ultra mega power project in Jharkhand are likely to be invited by the end of May 2008. This would be the 4th UMPP in the series of 9 that are planned to be set up.

Power Finance Corporation, the nodal agency for implementing these projects, is in the final stages of completing the evaluation of the requests for qualification received for the Tilaiya project in November 2007.

Mr Satnam Singh chairman of Jharkhand Integrated Power Limited said that "The evaluation of bids has reached the final stage of completion. The official announcement of successful bidders will be made soon."

MMRDA invites bids for monorail system

It is reported that Mumbai Metropolitan Region Development Authority is scouting for a project management consultancy for the implementation of the monorail system in the city and has invited bids from project management consultants, who have carried out assignments of similar nature and magnitude.

As per report, the bidder could be an individual firm or a consortium of firms involved in consultancy services of similar type. The bidder should have worked as a project management consultant for at least 1 monorail project costing not less than INR 400 crore. Once appointed the consultant will work on the project for 3 years. The deadline for submitting bids is May 16th 2008.

MMRDA has short listed 3 bidders for the monorail implementation. The short listed entities are
1. Reliance Energy Limited and Hitachi consortium
2. Larsen & Toubro and Scomi Group consortium
3. Bombardier Transportation India

Indian shipping lines end cartel to fix tariff

ET reported that merchandise exporters would soon find their logistics costs coming down significantly as shipping companies that handle most of the consignments from India have agreed to discontinue their dialogue among themselves to fix tariff. The move comes after the commerce ministry and Competition Commission of India stepped up pressure on the companies to end their alleged cartelization.

As per report, the shipping companies would no longer hold meetings to discuss tariff. Instead of conferences, ship owners would set up a consortium like the star alliance in the airline industry. The CCI told the ship owners that approval to such a consortium could only be given after examining the content of its charter.

Under the competition law, 4 types of agreements among companies operating in the same business are considered anti competitive. Agreements to fix prices, rig bids, control production and to share markets attract penal provisions in the competition law. Deals such as airlines deciding to operate only 3 flights between Mumbai and Delhi when competition would have brought in more or sharing different markets by different players by understanding among them would come under this definition.

Shipping Corporation of India is a major participant in the 15 member combine of ship owners offering services to exporters from South Asia and other regions under the umbrella of India Pakistan Bangladesh Ceylon Conference. Others include France’s CMA CGM, Germany’s Hamburg Sud and Hapag Lloyd, United Arab Shipping Company and K Line America Inc.

Titagarh Wagons to resume EMU production

BS reported that Kolkata based wagons & heavy earth moving and mining equipment manufacturer Titagarh Wagons Limited expects to resume production of electric multiple unit coaches at its Uttarpara facility by the third quarter of 2008-09. Titagarh Wagons has already bagged a trial order from the Indian Railways for developing prototype electric multiple unit coaches.

Mr Umesh Chowdhary MD of Titagarh Wagons said that the prototype electric multiple unit coaches built by the company are currently under inspection and the final clearance from the Indian Railways is expected by June 2008.

The total cost of setting up the electric multiple unit manufacturing facility including construction of the shed, flooring, laying of railway lines and the plant and machinery would be INR 18.74 crore. The proposed electric multiple unit facility at Uttarpara would have a capacity of manufacturing 2 rakes per month, each rake consisting of 9 electric multiple unit coaches.

NHPC to ink 51:49 JV with JK to develop 3 power projects

ET reported that National Hydroelectric Power Corporation will join hands with JK Power Development Corporation to form a company for setting up 3 power projects on Chenab. NHPC would own 51% of the company, tentatively named Chenab Valley Power Projects. It would be registered in Srinagar.

A MoU will be signed on April 26th 2008 in Jammu during Prime Minister Dr Manmohan Singh’s 2 day visit to the state. Mr Singh would also formally inaugurate the NHPC owned Dul Hasti power project, even though it is operational for over a year now.

Mr Jairam Ramesh union minister of state for power said that "This will be the first such agreement that NHPC would be signing with any commercial organization owned by any state government." He added that NHPC has 2 such agreements with Madhya Pradesh and Manipur governments but not with any commercial organizations that any state owns.

Mr Ramesh said that "We would manage all the prerequisites for starting work on the actual implementation within the next 60 days. A 12 member board with equal number from the two partners would manage the CVPP affairs. It will have a professional, and not a political, chairman nominated by the JKPDC and its MD would be nominated by NHPC."

The 3 projects will have a cumulative installed capacity of around 2120 MW and would entail an investment of over INR 12,720 crore. Of this, 30% would be the equity from the 2 sides. Right now, all the 3 projects are at different stages of clearance from various ministries and institutions. The 3 projects, to be set up in next 4 years, include 600 MW Kiru, 1000 MW Pakal Dul and 520 MW Karwa.

New Mangalore Port sees growth in rail cargo

BL reported that more than 100% growth in railway bound freight traffic of New Mangalore Port Trust and Hassan Mangalore Rail Development Company Limited has once again shown the importance of a railway line between the port and the hinterland.

During 2007-08, New Mangalore Port showed a growth of around 105% YoY in handling of rail cargo traffic and Hassan Mangalore Rail witnessed a growth of 187.5% YoY in its freight movement.

Ms Sarala Balagopal director & CEO of Hassan Mangalore Rail said that it handled around 4.6 million tonnes of freight traffic during 2007-08 as against 1.6 million tonnes the previous fiscal. Of the 4.6 million tonnes, nearly 90% to 95% of the traffic was contributed by New Mangalore Port’s railway bound cargo. Rail cargo, which stood at 1.52 million tonnes during 2005-06, increased to 3.01 million tonnes during 2006-07.

The link between New Mangalore Port and the hinterland was commissioned for freight traffic on May 5th 2006. Helped by this link and assisted by several new facilities at the port side, New Mangalore handled around 6.18 million tonnes of railway bound cargo in 2007-08, witnessing a growth of 105% YoY. The export cargo, such as iron ore, contributed a major share to the growth in railway bound cargo during 2007-08, followed by import cargoes such as fertilizer and limestone. In fact, the port witnessed growth of 163% in handling limestone cargo during the year.

Before the commissioning of the line for freight movement, exporters of iron ore cargo were wholly dependent on road infrastructure. The railway line brought down the burden on roads and 45% of the iron ore cargo was transported by trains during 2007-08.

Bharat Oman to set up petrochemical unit at Bina

BS reported that Bharat Oman Refinery Limited, a 50:50 JV between Bharat Petroleum Corporation Limited and Oman Oil Company, will construct a petrochemical plant near its upcoming 6 million tonnes per annum crude oil refinery at Bina in Madhya Pradesh.

The report cited a BORL executive said that "Once the refinery begins operation in January 2010, the petrochemical unit will follow."

BORL is reported to have approached the Madhya Pradesh government, seeking 1,000 acres of land to construct the petrochemical unit.

Haryana to add 5,000 MW of power generation capacity

PTI reported that Haryana government will add 5,000 MW power generation capacities in the next 2 and half years to overcome the shortage of energy in the state.

Mr Bhupinder Singh Hooda chief minister of Haryana said that "With the addition of 5,000 MW to the present power generation capacity, the government would be able to provide power supply for 22 hours a day. If gas is available, the generating capacity could be further increased."

Mr Hooda said that the first unit of 300 MW capacity at Deen Bandhu Chhottu Ram Thermal Power Project in Yamunanagar is generating power regularly for last 10 days and the second unit of 300 MW capacity is likely to provide power to the state grid after 2 to 3 days. He added that construction work on 1,200 MW Rajiv Gandhi Thermal Power Project in Hisar and 1,500 MW Jhajjar Thermal Power Project is going on war footing.

He said besides construction of additional power projects, the government would augment the capacity of power transmission and distribution system in a big way. He added that the state government has an ambitious plan of INR 1,963 crore, under which it would construct 70 new substations and augment capacity of 68 existing substations of different level across the state during the next 2 years. During last 3 years, the government constructed 87 new substations and augmented capacity of 196 existing substations in the state.

ElringKlinger inaugurates manufacturing facility in India

German based original equipment supplier ElringKlinger Group has announced the inauguration of its first manufacturing facility in India to produce gaskets for power train applications such as engines and transmissions.

Mr Stefan Wolf chairman of ElringKlinger Group said that "We are happy to announce the launch of our first manufacturing facility in India, when the country is witnessing a major growth in the auto sector." He added that it would soon look at additional investments in this high potential market.

ElringKlinger in a press statement said that "The plant has been set up at an investment of EUR 5 million and will have a capacity to produce several million gaskets. The plant will manufacture gaskets for power train applications such as engines and transmissions, especially focused on newly developed low emission gasoline as well as diesel engines." It added that the facility has been set up at an area of 60,000 square meters and has a built up area of 5,600 square meters.

The statement said that the plant would cater to the needs of Maruti Suzuki, Ford, Mahindra & Mahindra, Ashok Leyland, Fiat TATA, Piaggio, MAN Force and all other automotive manufacturers and suppliers.

ElringKlinger Group is a worldwide development partner and original equipment supplier of cylinder head and specialty gaskets, cover modules and shielding parts for the power train and the exhaust system. With presence in 21 locations across the globe, it has a turnover of EUR 607.8 million. It supplies to nearly all car manufacturers in Europe, North and South America as well as numerous Asian vehicle manufacturers.

Eastern Railway to spend INR 507 crore on infrastructure

BS reported that, keeping in view the rising demand for passenger and freight services, Eastern Railway has planned a slew of projects which includes construction of new lines of about 550 kilometers, gauge conversion of 67 kilometers and electrification of 20.34 kilometers. Apart from these projects, 14 surveys have been undertaken for construction of new lines of 575 kilometers, doubling of 16 kilometers track and gauge conversion of 74 kilometers. The proposals were now before the railway board.

Mr NK Goel GM of Eastern Railway said that these projects would be executed subject to the railway board's sanction with the objective of connecting the growth centers planned in areas served by Eastern Railway and also new areas. He added that "Indian Railway is investing in a big way to strengthen infrastructure in the form of new lines, gauge conversion, doubling of tracks, traffic facilities, rolling stock and track renewal. Eastern Railway will be spending about INR 507 crore in the next few years on infrastructure."

Eastern Railway has commissioned its passenger reservation system at 100 locations and unreserved ticketing system at 90 locations. Passenger reservation system would cover 3 more locations and unreserved ticketing system 300 more locations in 2008-09.

IISI issues short range global steel outlook

The International Iron and Steel Institute forecasts that 2008 will still be another strong year for the steel industry with apparent steel use rising from 1,202 million tonnes in 2007 to 1,282 million tonne in 2008 an increase of 6.7%. New projections for 2009 suggest a global growth rate of 6.3%.

The IISI Executive Committee reviewed the forecasts at its meeting in St Petersburg and has announced the following forecast

(In million tonnes)

IISI said that “Brazil, Russia, India and China will again be leading the growth with an expected increase of 11.1% for 2008 and 10.3% for 2009. However, as steel demand growth increases in other emerging countries, the large gap in growth rate that we have come to expect in recent times between BRIC countries and the rest of the world will narrow.”

1. China- Apparent steel use is expected to grow by 11.5% in 2008 and 10.0% in 2009, accounting for 35% of the world total in 2008. This is expected to reach 36.7% of world total by 2009.
2. India- Forecasts for apparent steel use point to an increase of 8.9% in 2008 and 12.1% in 2009.
3. Russia - Growth in the Russian market is forecasted to remain strong with 10.2% for 2008 and 11.2% for 2009, led mainly by the energy and construction sectors.
4. Brazil - Apparent steel use in Brazil is expected to increase by 10.3% for 2008 and 8.9% for 2009, reflecting strong growth in the automotive, construction and engineering sectors.

Mr Ku Taek Lee chairman of IISI said that “The underlying assumption behind this forecast is that although some weakening in the US and EU economies is expected, demand for steel will remain healthy thanks in part to the emerging markets which will maintain their own dynamism.”

LME may merge steel futures contracts – Mr Abbott

Reuters reported that London Metal Exchange could merge its two recently introduced regional steel billet contracts in the future.

The report quoted Mr Martin Abbott CEO of LME during a Metal Bulletin steel conference in London as saying that "It is quite possible that these two contracts might merge in the future. With a merger, there would be a one single global contract and the regional differences would sort themselves out via premiums in the physical market.

Mr Abbott said that "Also, at some point we might have a third contract. It is definitely not ruled out that we would add a third region LME is likely to stick with billet futures. It is unlikely that we would take away the billet. We will be trading it for many decades to come."

LME 'soft launched its billet contracts on February 25th 2008, when the trading started on electronic platform and via telephone market. LME is due to go ahead with a hard launch on April 28, when the contracts will move to open outcry trading on the floor of the Exchange.

Kobe Steel to spend USD 300 million on crankshaft capacity

Reuters reported that Japan’s Kobe Steel Ltd would spend JPY 30 billion (USD 300 million) to boost its production capacity of marine crankshafts amid strong demand for ships.

It will introduce a new production line at its Takasago Works in central Japan, raising production capacity of crankshafts by 40% to 50% by April 2010 from the current level.

Kobe said that demand for crankshafts used in tankers, bulk carriers and other ships remains extremely tight due to a strong flow of orders for ships from emerging economies, with Japanese, South Korean and Chinese shipbuilders holding three to four years' worth of back orders.

Kobe is the world's top producer of large crankshafts used in tankers and other big ships.

Sidor restarts export shipments except slabs

It is reported that Ternium Sidor has resumed exports of some products, following workers decision last week to suspend shipments while awaiting government instructions on the nationalization process.

Nerio Fuentes secretary general of Sutiss told Reuters that "We resumed exports last weekend. We still have to resume exports of flat steel products and we need to check prices.”

As per report, steel slab, one of the it's main products, are not yet leaving the plant on the banks of the Orinoco River.

Steel workers trade union Sutiss argued the suspension was aimed at avoiding any wrongdoing, although they resumed local shipments almost immediately.

Magnesita sells 3% stake to Nippon Krosaki

Reuters reported that Brazilian refractory bricks producer Magnesita has agreed to sell a minority stake to Krosaki Harima Corp of Japan, seeking to boost output and sales to the booming steel and cement sectors. Magnesita will issue new shares and sell a 3% stake to Krosaki, a unit of Nippon Steel Corp at market prices. Financial details were not provided.

Magnesita owns a mine in Brumado in Bahia state, which produces some 285,000 tonnes a year of sintered magnesite. It also produces industrial minerals magnesia and talc. The magnesite is converted into refractory bricks at a factory, which has a capacity of 250,000 tonnes a year.

Magnesita expects the sale will help it secure new technology and funds to boost output and reach new markets in the United States and Europe.

Mr Ronaldo Iabrudi CEO of Magnesita said that "This partnership will allow us to look beyond Latin America and seek opportunities around the world.”

Magnesita, controlled by private equity firms GP Investments and Gavea Investimentos, supplies around 70% of the Brazilian market for refractory bricks.

Teck Cominco to acquire Global Copper

Teck Cominco Ltd announced that it will boost its copper reserves by 25% after a CAD 425 million deal to buy Global Copper Corp.

Global Copper shareholders will receive cash and stock worth between CAD 12 and CAD 14 for each of their shares. They also will receive stock in a new public company to be named Lumina Copper Corp, which will hold Global Copper's assets other than the Relincho project. The agreement carries a CAD 12.5 million break fee if an outside offer prevails, and has been unanimously approved by the directors of both companies.

Global Copper Corp are main assets include the Relincho copper molybdenum deposit in northern Chile. The deal values the Relincho project at a minimum of CAD 415 million,

Mr Don Lindsay president & CEO of Teck said the deal is a good fit for the company and close to its other operations in Chile, which it picked up in the takeover of Aur Resources Inc. last year. He said "For the long term and building this company, having a very strong and thriving copper business is a good thing. We think we've got a very good deal."

EUROFER preparing 3 more import complaints

Steel Business Briefing cited an executive of Brussels as saying that steel producers in the European Union are preparing three new unfair import complaints.

These are likely to cover two stainless products bright bar and drawn wire. In addition, a quite wide ranging case on organic coated flat products is at a very early stage of preparation.

The report added that on stainless drawn wire, the case will focus on imports from India and China. The complaint against India will argue for both anti subsidy and countervailing duties and anti dumping duties; the Chinese complaint will only claim dumping.

The stainless bright bar action will target imports just from India on anti dumping duties and countervailing duties grounds.

CSC may raise Q3 prices by 20%

The Commercial Times without saying where it obtained the information reported that China Steel Corp may raise the price of steel it sells to the domestic market by 20% in the third quarter from the second quarter to cover higher costs.

A Chinese language based newspaper said that productions cost at China Steel has increased by USD 140 per tonne because of higher coal prices and China Steel will announce prices for the third quarter after its board meets at the end of May.

Arcelor Mittal Galati union begin strike for higher pay

AP reported that guards used tear gas on hundreds of striking workers who were trying to storm Arcelor Mittal Galati in Romania. As per report some 3,600 steel workers of Arcelor Mittal Galati have begun a strike at the plant to demand higher wages.

Earlier Monday, about 800 striking steel workers threw water, bread and stones in the factory yard before trying to storm the building. They were repelled by guards.

Mr Gheorghe Tiber trade union leader told state news agency Rompres that "The all out strike is legal and we are expecting more employees to join the protest.”

Earlier Arcelor Mittal Galati is offering a monthly increase of ROL 100 (USD 44) for those earning the lowest salaries and a percentage increase for those on higher salaries. The union wants each worker to have a monthly increase of at least ROL 280 (USD123)

Arcelor Mittal Galati now employs about 13,700 workers as compared to about 28,000 in 2001, when it was privatized.

Voestalpine seeking land in Constanta for steel plant Report

The European Weekly reported that Austrian major steel producer Voestalpine AG is currently seeking to purchase about 1,000 hectares of land in Romania.

According to sources, the company is looking for land in Constanta County to build a 5 million tonne steel production unit. The new production unit should be situated close to the Black Sea shore and the company intends to invest an amount of up to EUR 7 billion.

The project is expected to become the biggest steel plant in Romania and create some 10,000 new jobs. Currently, ArcelorMittal Galati holds the first place in steel production with some five million tonnes of annual output.

Churchill Mining East Kutai project has 250 million tonne coal

Churchill Mining Plc announced that the company’s initial target of 100 million tonnes of coal in various categories of JORC compliant resource at East Kutai Coal Project has been exceeded by 150%, with total coal resources to date being 250 million tonnes.

The estimate consists of 44 million tonnes of measured resource, 73 million tonnes on an indicated level and an inferred resource of 133 million tonnes.

Mr Paul Mazak MD of Churchill Mining said that "Such a significant early stage resource number reaffirms the company's confidence in the shear potential size of this project. Further drilling and exploration work should move much of the current resource categories into higher level categories and toward the 100 million tonnes mining reserve that the company is targeting."

Tenova to supply meltshop to Vallourec & Sumitomo Tubos do Brasil

Tenova Melt Shops has been chosen by Vallourec & Sumitomo Tubos do Brasil Ltda a joint venture formed in mid 2007 by France’s Vallourec and Japan’s Sumitomo, to supply a Greenfield plant in Brazil comprising Consteel an EAF and a Dedusting System.

The facility will be installed at the new seamless steel tube production center to be built in Jeceaba, in the region of Minas Gerais an area with some of the world’s richest iron ore reserves.

The 140 tonne electric arc furnace fitted with the Consteel® system will turn out more than 1 million tonnes of liquid steel a year. Production is expected to begin in 2010.

Mr Raimondo di Carpegna Varini senior vice president of Tenova SpA said that “This is the first Consteel® installation in South America. Moreover the agreement was drawn up in just nine months, a record time for a project of this scale.”

Mr Francesco Memoli area manager North & South America at Tenova Metal Making said that the plant will be the first in the world to use an innovative metal feed mix for an electric steel mill. He added that “The furnace can be charged with up to 80% of solid and liquid pig iron, including more than 50% of hot metal. This combination will guarantee high productivity and cut costs, while the Consteel® technology will reduce environmental impact”.

ArcelorMittal nominates Mr Kaden as lead independent director

ArcelorMittal announced that Mr Lewis B Kaden has been nominated to take up the newly established role of Lead Independent Director. Mr Kaden's appointment is to be ratified at a board meeting next month.

Mr Kaden who has approximately 38 years' experience in corporate governance, dispute resolution, labor and employment law and economic policy is currently vice chairman of Citigroup. Prior to that, he was a partner at the law firm of Davis Polk & Wardwell and served as Counsel to the Governor of New Jersey, as a Professor of Law at Columbia University and as Director of Columbia's Centre for Law and Economic Studies.

ArcelorMittal on December 4th 2007 stated that Mr Joseph Kinsch would step down as chairman of the board of directors at the company's next AGM. The Board unanimously nominated CEO Mr LN Mittal to take up his role after Mr Kinsch steps down. In light of this and due to the successful integration of the Company, the Board of Directors has unanimously resolved that the post of President no longer meets current needs and has decided to replace it with the new position of Lead Independent Director. The Lead Independent Director's principal duties and responsibilities are as follows:
1. Co ordination of activities of the other Independent Directors;
2. Liaison between the Chairman and the other Independent Directors;
3. Calling meetings of the Independent Directors when necessary and appropriate
4. Such other duties as are assigned from time to time by the Board.

Mr Joseph Kinsch said that "I am delighted the Board has nominated Mr. Kaden to serve as the inaugural Lead Independent Director of ArcelorMittal. His considerable experience and knowledge of corporate life will be invaluable to the company in his new role".

Mr Kaden said that "I am honored to have been asked to serve in the role of Lead Independent Director. ArcelorMittal has transformed the steel industry through its boldness and leadership. I welcome the opportunity to continue to contribute to its future success for the benefit of our shareholders and key stakeholders."

Hyundai Steel pushes up rebar price

South Korea’s Hyundai Steel has raised its rebar price due to soaring steel scrap prices.

It is said that the price rise remains between KRW 80,000 to KRW 140,000 per tonne. However, South Korean government strongly intends to stabilize consumer prices which will possibly hold the increase of rebar price to under KRW 100,000 per tonne.

Moreover, the import billet prices to South Korea continue to rise. Soaring Russian resources costs have caused the import price to reach USD 900 per tonne CFR.

(Sourced from YIEH.com)

Feng Hsin raises rebar prices

Steel rebar price of Feng Hsin Iron and Steel revived this week. The current list price is at TWD 29,300 per tonne, increased by TWD 600 per tonne. Besides, scrap price increased by TWD 400 per tonne to TWD 17,600 to TWD 18,600 per tonne.

Last week, scrap price was at TWD 28,800 per tonne in south market of Taiwan. And the price of this week is expected to be up to TWD 29,000 per tonne. In the latest two weeks, scrap price has increased by TWD 800 per tonne while steel rebar price only went up by TWD 600 per tonne which showed the shortage of scrap. The global price increase of scrap derived steel rebar price up.

(Sourced from YIEH.com)

Colombia coal exports in 2007 up by 11.6% YoY

Colombia's mining information website IMC Portal reported that Colombian coal and coke exports came to USD 3.50 billion in 2007 up by 11.6% YoY improvement over the figure registered in 2006

According to the report, coal is now the country's second largest export. It said that exports are primarily destined for the US with 32%, the Netherlands with 17% and the UK with 5%.

The report said that coal prices averaged USD 70.4 per tonne in 2007, showing nominal growth of 33.8% over 2006.

According to earlier reports, Colombia is expected to ship nearly 70 million tonnes of coal in 2008 as local producers boost output in order to supply global demand.

Colombia’s major coal exporters include Cerrejón, equally owned by Anglo American, BHP Billiton and Xstrata as well as US coal miner Drummond and Swiss company Glencore International.

Peruvian unions announce strike for May 12

BNamreicas reported that Peru's largest mining union FNTMMSP reportedly announced it will go on strike May 12 to demand better pay and participation in profits. The union said the strike would last for an undetermined period of time.

According to local press reports, another union, the CGTP which represents workers from several sectors including mining said that it was also participating in the strike.

The workers belonging to the FNTMMSP are present at operations owned by Southern Copper, Buenaventura, Xstrata's Tintaya mine, Cerro Verde, Shougang Hierro Perú and several others.

Japan ferrous scrap price hits JPY 60,000 per tonne

JMB reported that Japanese ferrous scrap price level reaches JPY 60,000 per tonne under tight supply.

The report added that electric furnace steel makers' purchase price increased by JPY 1,500 to JPY 59,000 to JPY 60,000 for H2 grade around Osaka. The scrap price is expected to keep high level when integrated steel makers increase the purchase volume along with firm offshore demand.

Whitehaven Coal boosts coal rail movements to Newcastle

It is reported that Whitehaven Coal has been able to lock in a significant increase in the amount of coal it will be able to transport by rail to the port of Newcastle. The port said that severe infrastructure problems have led to restrictions on the amount of coal that can be carried by rail to and exported through.

Mr Rob Stewart MD of Whitehaven Coal said that the company has been able to negotiate a new agreement to boost its rail movements. He added that "We've come to a commercial arrangement through the Australian Rail Track Corporation that own part of the track to Gunnedah and RIC, the State Government rail infrastructure body, both of those have come to agreements that have enabled us to get expanded capacity through that section of the line and they've made commitments that by the middle of this year will see an increase in our ability to rail down to the port.”

Whitehaven operates several mines near Gunnedah and plans to bring two new ones online shortly.

Steel price hike threatens Korean shipbuilders

Staff Reporter reported that South Korean shipbuilders, which have been enjoying improving profitability thanks to the won’s latest weakness and rising oil prices, are now faced with tough challenges steel price increases.

Ignited by POSCO’s recent decision to raise domestic prices of its cold rolled steel and shipbuilding plate to KRW 785,000 a tonne an increase of 18%, its competitors are considering joining the rally to cushion the impact on soaring raw material costs.

An official from Dongkuk Steel told The Korea Times that “We plan to raise the price of our shipbuilding plate by double digits in a week to cushion the burden of higher coking coal prices.”

Industry experts show mixed reactions concerning the impact of price increases of shipbuilding plates as some say South Korean shipyards have been able to absorb much of the earlier steel price hikes due to the Korean currency’s latest 10% depreciation. But there is concern that the price rise might dent the profitability of local shipbuilders in the short term as they have to pay more in buying the essential part for shipbuilding.

An official from Hyundai Heavy Industries said that “We might have to shoulder an additional KRW 170 billion a year due to the price increases by POSCO and a possible similar plan from Dongkuk Steel.”

An official from Daewoo Shipbuilding & Marine Engineering said that “The price increases by the nation’s two steel suppliers will cost our company an additional KRW 100 billion adding that his company will accelerate efforts to increase productivity to offset the burden.”

In early March, local shipbuilders agreed to an offer by Japanese steel plate providers to raise their prices to USD 850 per tonne from between USD 625 and USD 645. The Japanese plates account for about 15% of requirements at South Korean shipyards.

According to estimates from the Korea Shipbuilders’ Association, local shipbuilders are expected to use a combined 9.3 million tonnes of shipbuilding plates in 2008, while domestic steel providers are likely to supply 4.7 million tonnes including POSCO’s 2.5 million tonnes. It added that despite rising prices and the shipbuilding industry boom, steel makers are facing soaring costs as the tight coal supply is pushing them to the risky spot market.

Carpenter operating results for Q3 seen down

Carpenter Technology Corporation expects to report net income from continuing operations for its fiscal third quarter ended March 31st 2008, in the range of USD 1.00 to USD 1.05 per diluted share. This range excludes the gain from the USD 145 million sale of Carpenter's ceramics businesses that will be recorded in the third quarter results.

In the same period a year ago, Carpenter reported record third quarter net income of USD 1.27 per share that included comparable net income from continuing operations of USD 1.22 per share.

On January 29th 2008, the Company indicated that its third quarter performance for 2008 might not surpass the exceptionally strong third quarter results of a year ago due to softening US economic conditions.

Results for the 2008 third quarter reflected reduced demand in Carpenter's economically sensitive automotive, industrial and consumer end markets, combined with higher operating costs. Demand in the domestic and international energy and aerospace markets continued strong in the third quarter.

The Company will release its financial results on April 29th 2008

Recession reports - IMF urged to keep closer watch

Reuters reported that World finance officials have urged the International Monetary Fund to keep closer tabs on the global economy in the hope future crises like the one currently shaking world markets can be prevented. After one of its twice yearly meetings, the IMF's 24 nation steering committee said that global financial instability had increased and inflation risks had risen due to a sharp run up in the cost of food and other commodities.

The International Monetary and Financial Committee in a post meeting said that "Policy makers should continue to respond to the challenge of dealing with the financial crisis and supporting activity, while making sure that inflation is kept under control.”

As rich countries struggle to get a handle on financial turmoil that has rocked markets for nine months and worry the US dollar may have fallen too far, emerging and developing nations wondered whether they would be spared from a crisis that may have already pushed the US economy into recession. IMF said that developing economies had shown resilience in the face of the crisis sparked by mounting US mortgage defaults, but cautioned that inflationary risks had picked up. It said that "For many counties, containing inflation and addressing vulnerabilities remain key priorities.”

Concerns over rising prices for food and other commodities and related shortages of key staples, has shaken developing economies worldwide. Developing countries called on the IMF and World Bank to stand ready with emergency funding to help the poorer nations of the world in case financial market woes spread to their economies and the food crisis worsened.

Mr Tommaso Padoa Schioppa chairman of IMF said that "The fact that the most relevant economic and financial multilateral institution in the world shows the capability to reform itself at this very moment constitutes by itself a response to the crisis and an indication that a global crisis has to be addressed with a global view.”

Tertiary Minerals evaluating Storuman fluorspar deposits

Thomson Financial reported that AIM listed Tertiary Minerals Plc plans to drill an initial 12 holes to evaluate the Storuman fluorspar deposit in Northern Sweden. Prices for fluorspar, which is also used in steel production, the ceramics industry and in the production of nuclear fuel, have risen in tight market conditions caused by Chinese export restrictions.

Eight of the drill holes will test the fluorspar zone along the axis of its 2 kilometer known extent and the other four will probe for extensions to the North West where some of the highest grades were returned from drilling by the previous operator.

Tertiary Minerals said it believes that past drilling at Storuman indicates the potential for a world class deposit of fluorspar used in the production of hydrofluoric acid found in refrigerants, non stick coatings and anesthetics. It said that “With the global market for fluorspar stretched by declining Chinese exports, Storuman has the potential to become a significant asset for the company.”

German shipping group plans Baltic container terminals

It is reported that a German shipping group, Deutsche Seereederei, has outlined plans for three Baltic Sea container terminals including one in the Latvian capital Riga and also said it aims to take over German Danish ferry company Scandlines.

Mr Horst Rahe CEO of Deutsche Seereederei told Ostsee Zeitung newspaper that Deutsche Seereederei expected container shipping on the Baltic to surge from 5 million units currently to 20 million annually in the future.

He said Deutsche Seereederei based at Rostock in Germany, is assessing whether to build three terminals on the coast so it could establish its own port network over the next seven to 10 years. Deutsche Seereederei has established a port operations subsidiary.

Deutsche Seereederei was formerly the state shipping line employing 14,500 people in communist East Germany. Rahe said it had done well during 15 years in private ownership. He and a partner promised when they bought it in 1993 to keep 2,235 jobs and it now had a group payroll of 8,000. The group has invested in real estate and cruise shipping, but also aims to return to regular cargo shipping.

Taiwanese scrap prices expected to raise again

It is reported that Taiwan import price of scrap has continuously increased. As per report price for contain scrap are priced as high as C&F USD 650 to USD 680 per tonne CNF and some were prevailing at around USD 620 to USD 630 per tonne CNF.

A trader said that the acceptable price in the market is at USD 610 to USD 612 per tonne. It is expected that the scrap price will rise again this week, due to low inventories.

(Sourced from YIEH.com)

Daewoo Shipbuilding wins USD 568 million drill ship order

Reuters reported that Daewoo Shipbuilding and Marine Engineering Co had secured a drill ship order worth KRW 554.1 billion (USD 568 million).

Daewoo Shipbuilding and Marine Engineering Co in a filing to the Korea Exchange said that it will deliver the vessel by the end of September 2010 but declining to identify the party placing the order.

Napocor needs more coal in 2008

Reuters reported that Philippine top electricity producer National Power Corp will need 5 million tonnes of coal in 2008, up slightly from last year's 4.7 million tonnes and hopes to buy around 10 cargoes of the coal from China.

Mr Juan Carlos Guadarrama logistics vice president told reporters in Beijing that it is replacing two cargoes bought from BHP Billiton in South Africa with cargoes from Indonesia. Those two cargoes an unusual commitment to ship into Asia from South Africa were for May or June shipment but could not be performed.

The executive on the sidelines of an industry conference without elaborating said that "Actually, that one did not push through. They BHP could not work by our contract terms. Maybe somebody else might have offered higher prices."

He added that Napocor had negotiated to buy a cargo apiece from Indonesia's Gudung Bayan and Straits Resources, and that those two shipments were intended partly to offset the loss of its South African cargoes.

Siemens secures power plant order from Britain

The Siemens Energy Sector announced that it is to build a combined cycle power plant in Wales for Severn Power Ltd a subsidiary of Welsh Power. The power plant with an installed capacity of 850 MW will attain an efficiency of 58%. The new plant of Severn Power is the ninth power plant built by Siemens in Britain.

Construction work has already commenced and is scheduled to be completed in 2010. The order including a long term service agreement is valued at a total of GBP 665 million.

Siemens is building the eco friendly CCPP Severn Power in Uskmouth in the vicinity of Newport in Wales. The power plant with an installed capacity of 850 MW is being erected on the site of a decommissioned coal-fired power plant. In addition to turnkey construction, the Siemens scope of supply encompasses two gas turbines, two steam turbines, two hydrogen cooled generators, and the entire electrical and I&C equipment. A 16 year operation and maintenance agreement is included.

Mr Michael Süss CEO of the Fossil Power Generation Division of the Siemens Energy Sector said that “Equipped with advanced technology, the natural-gas-fired power plant will attain an efficiency of over 58 percent and thus make an important contribution toward economical, eco-friendly power generation in the region. The order from Severn Power strengthens our position in the important British market. There is a major demand for new efficient power plants in Britain due to the decommissioning of old plants.”

Hyundai Rotem wins USD 170 million US train deal

Hyundai Automotive Group’s subsidiary Hyundai Rotem announced that it has won a USD 170 million contract to supply passenger trains to the city of Boston.

The contract with the Massachusetts Bay Transportation Authority calls for Rotem to deliver 75 double decker suburban commuter rail cars by 2012.

Rotem said it was the company's third deal in the US after similar deals with Philadelphia and Los Angeles, proving that Rotem's technology and quality have been recognized by the American market.

Rotem said that in order to cope with the increasing American demand it is currently building a plant in the US with an annual production capacity of 200 rail cars with a goal to put it into operation late this year.

Iron ore price hikes hit Gulf steel makers

MEED reported that steel producers are facing cuts to their profit margins, with customers unwilling to accept the full cost of rising raw materials prices.

Mr Hussein Murrar head of commercial relations at Qatar Steel said that "If steel makers do not raise prices, they will be in a losing position. They have to try to recover their costs. But even if they increase their prices, their costs have gone up by more than 80%. You have to ask how much that will eat into margins."

SABIC has added SAR 825, about 27%, to the cost of steel reinforced bars produced by its steel making arm Saudi Iron & Steel. The retail price for one tonne of rebar is now about SAR 3,800. A senior executive at SABIC said that "Other steel makers in the region will follow suit. But we all have to continue to make steel available to the construction industry at a relatively affordable price."

Steel price hike to lead to unemployment in Pakistan

The Dawn reported that an unprecedented rise in the prices of cement, steel and other construction material is not only threatening growth in the housing and construction industry, but is also likely to increase unemployment in Pakistan.

Officials concerned concede that an unusual hike in the prices of construction material is threatening the job market in the industry. Daily wage workers are suffering because not only the construction activity in the private sector is slowing down but large scale development projects in the public sector are also suffering.

Steel prices have gone up by 59% over the past 7 months. The price of grade 60 steel, which was PKR 50,000 per tonne in September 2007, has gone up to PKR 84,000 per tonne. Similarly, the price of grade 40 steel, which was available at PKR 4,125 per tonne, has gone up to PKR 5,200 per tonne. In the September 2007 to March 2008 period, prices of cement went up by 26.1%, prices of high speed diesel by 14.3% and gasoline by 18%. The increase in cement prices is attributed to exports by the cement industry. This trend is likely to grow further.

Industry sources claim that decisions made by the Engineering Development Board asking the Pakistan Steel to index its prices to international landed prices is putting pressure on the prices of steel. An official source said that "An impression is being created that the prices of the Pakistan Steel are lower compared to prices in international market. This is not true." It added that the government should take note of the increase in steel prices as it had started harming construction and housing activities.

Pakistan Steel announced an increase in the prices of its products, including billet, bloom, galvanized steel and HR and CR steel. It announced an increase of PKR 1,000 per tonne for billets and bloom, PKR 3500 per tonne for HR and CR products and PKR 3,500 to PKR 4,500 per ton for galvanized products.

Six contractors in fray for Zadco pipeline replacement

MEED reported that six international and local contractors are understood to be preparing to submit technical bids by May 6th 2008 for the contract to replace the Zakum main oil line, belonging to Zakum Development Company.

Worth about USD 300 million, the lump sum engineering, procurement and construction contract covers the fabrication and installation of a 60 kilometers long, 42 inch diameter steel pipeline from the offshore Zakum central complex to Zirku Island.

The pipeline will be laid parallel to the existing line and at water depths of up to 21 meters. The existing main oil line, installed in 1982, has suffered heavy corrosion, with significant metal loss and reduction in wall thickness.

The six pre qualified contractors are
1) Global Industries
2) J Ray McDermott
3) Larsen & Toubro
4) Punj Lloyd
5) National Petroleum Construction Company
6) Saipem

Commercial offers are due in on September 2nd 2008, with an award due soon after.

JP Kenny part of the UK's Wood Group is the front end engineering and design consultant. Three companies are understood to be bidding for the project management consultant position.

3 power & water projects on the anvil in Oman

Three newly planned independent water & power projects and redevelopment of an existing power plant will substantially enhance availability of electricity in Oman in the coming years.

The new projects, one each at Salalah, Al Duqm and either at Barka or Sohar, are aimed at enhancing supply of power and water in Oman.

Mr Mohammed bin Abdullah al Mahrouqi chairman of Public Authority for Electricity & Water said that also, move is afoot for redeveloping Al Ghubrah power plant. He added that a new independent water & power project in Salalah would generate around 370 MW to 430 MW of power and over 15 million gallons of water per day. The project, which will be awarded before 2008 end, will start operation by 2010.

He said that “Another green field independent water & power project planned either in Sohar or Barka is expected to generate as much as 750 MW to 1000 MW of power and will be completed by 2011-2012.”

He added that “The independent water & power project proposed at Al Duqm will generate up to 1000 MW of power. This project, with a desalination plant, will be ready by 2014-2015.:

Similarly, the redevelopment of the Al Ghubrah project will generate additional power of up to 500 MW and will see completion by 2011-2012.

Mr al Mahrouqi said that "The electricity and water sectors in Oman have great investment potential since it is open to foreign investment and committed to market liberalization." He added that the sector, which witnessed a power load growth of 6% to 8% in the last 3 years, has a comprehensive restructuring policy in place.

Egypt welcome ban on cement exports

In an attempt to control prices of some essential products in the local markets, Mr Rachid Mohamed Rachid Egyptian minister of trade & industry has issued a decree on March 27th 2008 banning the export of rice and cement for the next 6 months.

Mr Rachid issued another order stating that steel factories cannot stop or reduce production without clear authorization from his ministry, to guarantee that steel is available on the market. Producers who violate these regulations will be severely penalized.

The government's move to issue new rules came as a result of hikes in steel and cement prices on the Egyptian market in recent months. The decisions aim at controlling prices by raising supply and avoiding shortage of these products.

Mr Rachid explained that a recent study by the ministry of trade & industry asserted that the demand on cement and steel are expected to rise this summer both in Egypt as well as neighboring Arab countries. He added that the new procedures, which went into effect until October 2008, are temporary and will be reconsidered according to market circumstances later.

Mr Rachid explained that the government is within its rights by taking these decisions, as is the case in other countries where such regulations are temporarily imposed on some products to ensure that local needs are met before moving to export.

He added that the ministry will strictly apply penalties against violators according to law 95/1945. The penalty includes imprisonment for one to 5 years, a fine between EGP 300 to EGP 1,000, and the closure of the violating retailer or factory for 6 months. The ministry began procedures to stabilize prices in local markets in 2007 by imposing an additional export fee on steel and cement.

Oman considering rail network between Sohar and Barka

It is reported that Oman is considering building a 200 kilometer long railway network between Sohar and Barka, with the possibility of extending up to Al Duqm. Mr Ahmed bin Abdulnabi Macki Omani minister of national economy said that "We are planning to build a railway line between Sohar and Barka. This could be extended to Al Duqm. We are looking at all possibilities."

Mr Macki said that a rail link could be an ideal solution to the emerging needs of a viable transport network to connect the industrial city of Sohar and Al Duqm with other parts of the country, with the latter witnessing a massive development including a modern port, a ship repair facility and the proposed refinery cum petrochemical complex.

On the envisaged investment on railway project, he said "I cannot tell the envisaged investment now. The project is still under study."

He said this will be the first railway network in the country that solely depends on road for all inland transport requirements.

New berths to fuel boat industry growth in UAE

Emirates Business 24/7 reported that the leisure boating and water sports industry is set to experience a growth spurt due to the addition of 60,000 berths in Abu Dhabi and Dubai by 2015.

Mr Andrew Wagner GM of the marine and engineering division of Al Masaood Group said that investment in all types of marine projects in the UAE is taking off and is driving growth in the industry.

He noted that the firm has seen a dramatic jump in sales, recording AED 100 million in just the January to March 2008 as compared to AED 80 million total for all of 2007. He added that "Right now marine is not a massive industry in the Gulf. The numbers of boats in the region is limited by the infrastructure. However, it is set to grow and the number of leisure boats in the UAE is set to increase to about 20,000 by 2015."

Mr Wagner said that "Abu Dhabi is planning to have 20,000 more boating berths and Dubai 40,000 by 2015. So this is what we are gearing up for. That is the idea behind having service centers. We had four centers and now with the management of 10 government boating sites, we have 14 service centers across the country. We cover the entire UAE coastline from Delma Island to Kalba in the East Coast."

Swiss president supports gas deal with Iran

Mehr News Agency reported that Mr Pascal Couchepin President of Switzerland has announced that he will support the gas deal between Iran and Switzerland ignoring the US pressure to discourage his country from entering into the deal.

Mr Couchepin underlined that Iran is rich of oil and gas reserves and is regarded as one of the major economic partners of the European countries and Switzerland is not an exception.

It may be noted that Switzerland’s Elektrizitaetsgesellschaft Laufenburg had sighed a 25 year deal with the National Iranian Gas Export Company for the delivery of 5.5 billion cubic meters of gas per year.

Platform jacket for South Pars phase 12 to be rolled up in May

Mehr News Agency reported that the first of 3 jackets for the wellhead platforms designed to be installed in the phase 12 of the South Pars gas field is ready to be rolled up by mid May 2008.

Iranian Offshore Engineering & Construction Company has concluded a contract with Pars Oil & Gas Company valued at USD 745 million for laying the offshore pipelines. Another contract worth USD 386 million has been signed with the IOEC for manufacturing the marine platforms for the phase 12 of the South Pars field.

Petropars is the major contractor of South Pars phase 12 development project investing over USD 3.2 billion in the project. POGC, the employer of the project, is also in charge of developing the North Pars, Golshan and Ferdowsi fields located in southern Iran.

Phase 12 field is the south eastern block of the South Pars gas field and is on the border with Qatar and covers an area equal to 150 square kilometer. The initial in situ gas reserve of the South Pars gas field has been estimated at 501.4 trillion cubic feet. South Pars 12 block with 38.6 trillion cubic feet dry gas contains almost 8% of the South Pars estimated dry gas reserve.

This field shall be developed to produce 3000 million standard cubic feet per day reservoir fluids from 3 wellhead platforms, 1000 million standard cubic feet per day each, and to transport the fluids, after separation of free water to the Onshore Gas Plant which is located in Tombak, where the onshore treatment facilities are installed at a distance of approximately 145 Kilometer from offshore dedicated block.

China considering investments in Iranian gas sector

Mr Mohsen Talaei Iranian deputy foreign minister said that Tehran and Beijing have begun a new round of talks on the development of Iran's gas sector. Mr Talaei said that following the two countries' agreement on developing the Yadavaran oilfield in southern Iran, China has voiced interest in making new investments in Iran’s gas sector.

It may be noted that China's biggest refiner Sinopec and Iran signed a USD 2 billion agreement in December 2007 on developing the Yadavaran oilfield. National Iranian Oil Company and the China National Offshore Oil Corporation also agreed in 2007 to sign a deal on the joint development of the North Pars gas field.

Mr Talaei made the remarks on the sidelines of the Boao Forum for Asia annual conference, which began in the southern Chinese province of Hainan. He said Iran was one of China's main energy suppliers, adding that the volume of the two countries' trade stood at USD 20 billion.

Hypo Vereinsbank to open ship finance centre in Dubai

It is reported that German bank Hypo Vereinsbank is set to open a ship finance centre in Dubai later in 2008 as a part of its plan of substantial expansion within its ship finance business.

Mr Torsten Temp executive manager of Hypo Vereinsbank said that "Starting from Dubai, HVB is looking to expand its ship finance business in the region to India and Pakistan as well."

Together with financing subsidiaries in Singapore, Oslo and Piraeus, Greece, the sector then will be pooled in the new Unicredit Global Shipping department. In 2009, another subsidiary may be opened in North America, Turkey and Russia.

Hypo Vereinsbank's credit volume for ship financing, container leasing and other offshore maritime activities amounted to EUR 8 billion in 2007, adding EUR 1.5 billion from Unicredit's business in the same sector.

Mr Temp said that the growth rate in 2007 has been more than 10% and expecting a double digit growth in 2008 as well. The bank's competence centre for the worldwide ship finance business will remain in Hamburg in Netherlands. It will be expanded to service the whole value chain for the bank’s and Unicredit's global shipping finance business in the future.

Chinese iron ore imports in March fall from monthly peak

It is reported that China's March iron ore imports slid 6.6% MoM from the previous month's record high, with more gradual declines likely after heavy buying in the first quarter ahead of expected price increases for the fiscal year from April.

Customs data showed recently that Iron ore imports in March fell to 35.68 million tonnes from a monthly record of 38.21 million tonnes the month before.

Mr Henry Liu analyst at Macquarie Bank said that "I feel that import bookings from some speculative traders declined at the end of February after the first set of term prices settled. He added that imports nevertheless remain strong due to Chinese demand.”

China's iron ore imports for the first three months of the year totaled 110.66 million tonnes up by 10.5% YoY from the same period in 2007.

Chinese steel demand seen at 520 million tonnes in 2010

China Metallurgical Industrial Planning and Research Institute has forecast that China's demand for steel products may top 520 million tonnes in 2010.

Mr Li Xinchuang VP of the CMIPRI said that this year the domestic steel products demand would increase by around 10% and the country could meet most of its various steel product types needs.

He said that “China's domestic steel products occupied 95.8% of the domestic market in 2007.”

He added that the country's iron and steel industry is also facing some difficulties this year including the domestic shortage of coal, electricity and water resources, the rising price of iron ore and the weak capacity of the industry's research and development.

Shenhua denies interest in Anglo American

It is reported that Chinese coal mining titan Shenhua Energy denied plans to take major stakes in some of the leading global mining companies.

Mr Wang Jinli deputy general manager of China Shenhua Energy in a response to a report in Hong Kong’s South China Morning Post said that it is not true that the company is seeking a strategic alliance with Anglo American.

He added that Shenhua also has no plans to take stakes in BHP Billiton or Rio Tinto, though he conceded “we are always in talks for overseas acquisitions,” saying the company planned to buy assets in “Indonesia, Mongolia and Australia.”

The newspaper had claimed that Shenhua is to buy up to a 10% stake in the company.

Speculation has been rife in recent months that Chinese miners and steel makers would seek to buy strategic share stakes in the world’s major mining companies in order to secure access to supplies of metals and coal.

FMG reconfirms first iron ore shipment to China in May

Mr Andrew Forrest CEO of Fortescue Metals Group reconfirmed at Boao Forum for Asia held in Hainan that Fortescue Metals Group would begin exporting 20 million tonnes to 30 million tons of iron ore to China this year, approximately 95% of its total output to China's Baosteel Group in May.

Mr Forrest said the ongoing iron ore benchmark price negotiation would not influence the shipments. He said that "We do not fix prices. Our task is to sell as many iron ore as possible since our customers are anxious for sufficient supply."

The data show that so far the Australian miner has inked ten-year-plus supply contracts with 35 large and medium domestic steelmakers with total export volume coming near 100 million tonnes per annum.

It is learned that FMG did not launch actual shipments in 2007, hence it did not join the benchmark price negotiation this year, but it may participate in the negotiation next year as its capacity is released.

Angang to reach 50 million tonnes by 2010

According to Mr Zhang Wangqing of steel export department of Angang Group International Trade Corporation the steel output of Angang predicted to reach 50 million tonnes till the year of 2010.

Mr Zhang Xiaogang GM of Angang Group said crude steel output of the company this year predicted to reach 19 million tonnes.

82.83% steel output of Angang was sold to domestic market at present, only 17.17% was sold to foreign market. Steel demands in domestic market remained strong because of the rapid economic development, therefore Angang will give priority to domestic steel supply, at the same time, they are likely to involve in the stainless steel field at present.

MCC begins construction of Sino Iron Ore Mine in Australia

It is reported that China Metallurgical Group Corp has begun construction of the Sino Iron Ore Mine at Cape Preston in Western Australia which is owned by Hong Kong's CITIC Pacific Ltd. The project is slated to be completed in August 2010

As per report under the contract, worth USD 1.11 billion MCC is to set up facilities, including a primary crusher, pellet plant, material handling system and a power plant.

MCC said the project will have annual capacity of 24 million tonnes of refined iron ore and 6 million tonnes of pellet which will be exported to China.

MCC entered into a construction contract with CITIC Pacific in January 2007 to design and construct the mine.

Shougang Steel net profit in 2007 up by 34% YoY

Shenzhen listed subsidiary of China's leading steelmaker Shoudu Iron and Steel Group Shougang Steel reported its net profit up by 33.75% YoY on an annual basis to CNY 964.86 million in 2007 due to steel product price hikes.

Shougang Steel average steel product price expanded by 12.62% YoY in 2007, while its average steel billet price lifted 7.59% over the period. It’s operating revenue up by 13.17% on an annual basis to CNY 25.06 billion in 2007.

Shougang Steel's pig iron and steel output dropped slightly from the previous year to 4.29 million tonnes and 4.97 tonnes respectively in 2007, while its steel product output edged up 3.54% YoY to 4.8 million tonnes over the period.

The company plans to produce 4.23 million tonnes of pig iron, 4.9 million tonnes of steel and 4.65 million tonnes of steel products in 2008.

Chinese coal export prices to rise in line with Australia

The China Securities Journal reported that China's coal export prices are set to rise in line with the hikes negotiated by Australian suppliers and their Japanese consumers.

The report Citing Mr Huang Qing secretary to the board of directors with Shenhua, China's biggest coal producer said that Chinese coal companies customarily follow the prices set by Australia, the Asia-Pacific region's biggest exporter.

Mr Huang was quoted as saying that "Normally, long term supply contract prices between China and Japan will be settled according to the prices set by Japan and Australia. He added that once the price is set, China will decide the export prices to other countries with reference to that price."

Australia exports more than 200 million tonnes of coal to the region, compared with around 50 million tonnes exported by China last year.

Zhangze Electric sees net loss in Q1 on rising coal prices

XFN-Asia reported that Shanxi Zhangze Electric Power Co Ltd expects to have suffered a net loss of CNY about 71 million in the first quarter of 2008 due to rising coal prices.

The report added that in the first quarter of 2007, the company booked a net profit of CNY 120.49 million or CNY 0.1 per share.

Shanxi Zhangze Electric Power Co Ltd is the listed arm of China Power Investment Corp, one of the country's top five power producers. It also the first listed power company to project a net loss in the first quarter.

Coal prices have been rising sharply on the domestic market. Power companies have complained that although costs have been rising they have not been able to fully pass on the higher costs through increased electricity prices.

China to remain net coal exporter in 2008

Reuters reported that China's National Coal Association would not be a net coal importer in 2008 because China's output was sufficient and it had a lot of reserves.

Mr Wang Guangde vice chairman of China's National Coal Association told Reuters when he was asked if China, the world's top coal producer and consumer, could emerge as a net coal importer this year. He said "No, it's not possible."

Mr Wang added at a Coaltrans conference in Beijing that China's 2008 coal exports would be about the same as last year.

China emerged as a net coal importer for the first time in the first half of 2007, and some analysts expect the country to become a net importer in the near future, possibly as soon as this year.

Datang to set up Keqi coal based gas company

Datang International Power Generation Co has announced that it entered into an investment agreement with Beijing Gas Group, CDC and New Horizon Capital to establish Keqi Coal based Gas Company. Following the agreement, Keqi Gas Company registered initial capital of CNY 100 million, which is equal to around HKD 111 million.

Datang International noted that for setting up the gas company all of them would contribute in the proportion of 51%, 33%, 6% and 10% in cash, respectively. The new gas company will deal with the planning, construction and operation of the Keqi Coal based Gas Project. Datang International stated that internal resources would fund its contribution to the registered capital of gas company.

The gas project involves a total investment of about CNY 18.78 billion, which is equal to around HKD 20.87 billion. The total capital obligation of Datang International will be CNY 9.58 billion that is 51% of the total investment. The final registered capital of Keqi Gas Company is approximately 30% of the total investment of the project which is around CNY 5.63 billion equivalent to nearly HKD 6.26 billion.

The Investment Agreement will become effective when the parties to the agreement obtain internal approvals and the approvals from the appropriate government authorities of the PRC for the investment items in the Investment Agreement, Datang International noted. The parties assented that they would raise the registered capital of Keqi Gas Company in stages on the basis of the construction progress of the project, and all of them will add to the increased registered capital in the same proportion as their respective contributions to the aforesaid initial registered capital of Keqi.

The term of operation of Keqi shall be 30 years from the date of issuance of the relevant business license.

China Lu-an plans 35% output rise in 2008

Reuters reported that Major Chinese coal producer Lu-an Coalmine Group aims to expand output of the hydrocarbon by 35% in 2008 to feed the world's largest coal market and has short listed a group of global firms as potential investors to anchor its expansion at home and abroad.

Mr Ren Runhou general manager of Lu-an Coalmine Group told Reuters on the sidelines of a coal conference in Beijing that Lu-an, based in northern China's Shanxi Province plans to churn out 50 million tonnes of coal this year up from 37.18 million tonnes of coal in 2007. It aims to house annual capacity of 100 million tonnes by the end of 2015.

Mr Ren said without elaborating that Lu-an Coalmine Group wants to expand abroad but has shelved plans to float shares overseas for the time being because Beijing discouraged its listing abroad and delaying its ambition of joining larger listed rivals China Shenhua Energy Co.

He added that Lu-an is on track to start coal to liquids production in August through a project with an initial phase capacity of 160,000 tonnes per year. That will be expanded to 3 million tonnes by the end of 2010 and to 5.2 million tonnes by end 2015.

Lu-an aims to achieve 15 million tonnes of oil production a year from that project eventually.

Jiugang exports SS to Europe for the first time

It is reported that recently, Jiugang Hongtai trading company and a well known European company signed the first contract for the export of stainless steel. The exported product is HR pickling stainless steel coil and the volume is 700 tonnes. It marks that it is the first time for Jiugang’s stainless steel product successfully export to Europe.

As per report, it is a well known European industrial group that signed the contract with Jiugang. The group has leading position in the world’s steel metallurgical industry, as well as in the manufacturing, and its stainless product demand is very large.

With the commissioning of Jiugang’s stainless steel line, Hongtai trading company actively carried out market. Since 2008, it has been actively communicating with the European group, through the hard business negotiation, and ultimately realized successful exports cooperation.

Tianjin accelerates construction of scrap processing center

It is reported that the city of Tianjin is now accelerating the construction of five processing centers including scrap, stainless scrap, scrap auto and waste paper.

The infrastructure construction of scrap processing center has already been completed. 11 production processing areas have been finished and there are 20 areas in total. The design sales volume is 1 million tonnes per year.

The expansion project of stainless scrap processing center has already been completed and there are totally 16 sets of equipment. At present, the sales value of stainless scrap in the group is CNY 2 billion and it is one of key supplier of stainless scrap to Taiyuan Iron & Steel Group Co.

200,000 tonnes scrap line will be put into production soon. With a total investment of CNY 48 million, the annual scrap processing capacity would be 1 million tonnes.

Panchanggang develops NS825 nickel based corrosion resistant alloy extrusion pipe

It is reported that recently, Panchanggang steel tube company has successfully trial-produced NS825 nickel-based corrosion resisted alloy extrusion pipe.

At present, NS825 nickel-based corrosion resistant alloy extrusion pipe is mainly used in the oil refining industry. In China, these products all depend on import. If the exploitation of NS825 nickel based corrosion resisted alloy extrusion pipe is successful, it can not only fill the technical blank on the production of high alloy materials, but also generate tremendous economic benefits for enterprises.

Jinchuan slashes cobalt prices on abundant stockpiles

Interfax China reported that Gansu Jinchuan Group, China's largest nickel and cobalt producer, cut its price for electrolytic cobalt by CNY 50,000 per tonne to CNY 748,000 per tonne due to abundant stockpiles.

Analysts told Interfax that Chinese cobalt prices will be weak in the near future, but will find support at the CNY 650,000 per tonne level this year on the back of high production costs.

Analyst Mr Zhai Yang from Huayou Cobalt Nickel Materials Co Ltd said "Although China is currently in the hottest cobalt consumption period, cobalt prices will remain weak in the near future mainly because Jinchuan still has a large amount of cobalt stockpiled as it imported too much during the Chinese New Year festival when cobalt prices were rising quickly."

Mr Zhai said China consumed 13,000 tonnes of cobalt last year and its consumption is set to grow approximately 9.8% YoY to 14,274 tonnes in 2008.

Cobalt is used in the production of X-ray tubes and other specialist products, as well as for the manufacture of many alloys, such carbide alloy and various steel alloys.

Zenith Steel raises steel prices

China’s Zenith Steel Group Corporation has announced to increase the steel price, effective from April 11th 2008.

The released added that the new price rise will be CNY 60 per tonne for high speed wire and CNY 50 per tonne for rebar.

Current price for Q235 high speed steel wire with diameter 6.5mm is bout CNY 5,180 per tonne while HRB335 with diameter 16mm~25mm is about CNY 4,920 per tonne.

Peabody starts coal supplies to China

Reuters reported that Peabody, the world's largest private coal company hopes to become a major supplier of the fuel to China after starting to trade coal out of Beijing.

Mr Tayeb Tahir president of Peabody China told an industry conference in Beijing that "We hope to become a major supplier to cover China's energy needs from Australia, Indonesia, and in the long term, Mongolia.”

Asked if it has brought some coal into China, the world's largest producer and consumer of the fuel, Mr Tahir said that "We are in the process of doing so."

Peabody set up its Beijing office in 2007

Severstal reorganization all units in 3 groups

Severstal has announced that it is reorganizing its businesses into three principal divisions
1. Severstal Russian Steel
2. Severstal Resourses
3. Severstal International

The new structure of Severstal will be as follows

1. Severstal Russian Steel will include the following segments: steel, pipe, metal wares and services as well as scrap procurement operations. Mr Anatoly Kruchinin currently CEO of Cherepovets Steel Mill, has been appointed as CEO of Severstal Russian Steel.

2. Severstal Resources comprising Severstal’s assets relating to iron ore, coal and gold extraction. The division includes mining and gold-mining segments. It is one of Russia’s largest producers of pellets and coking coal. Mr Roman Deniskin will remain CEO of the division.

3. Severstal International, a newly established division comprising European and North American segments. Mr Gregory Mason, Corporate COO of OAO Severstal has been named CEO of the division.

Under the new structure four functional areas and four service and support areas will be established as detailed below and would be headed by following officials.

Functional areas
1. Operations –Mr Gregory Mason COO & CEO of Severstal International
2. Finance – Mr Sergei Kuznetsov CFO
3. Corporate Development –Mr Thomas Verazto, Senior VP
4. Human Resources –Mr Andrei Mityukov Senior VP

Service and Support areas
1. Legal Affairs –Mr Dmitry Sanin Senior VP & General Council
2. External Relations –Mr Alexei Yegorov Senior VP
3. Communications and Public Relations –Mr Vadim Saveliev Senior VP
4. Security –Mr Vladimir Kozlov Senior VP

The released added that the new structure, taking effect in April, will reduce the number of reporting lines between individual operations and senior management, ensuring greater operating efficiency and capitalizing on Severstal’s international diversity by providing for the continued growth of the global business.

Mr Alexey Mordashov Severstal CEO said “This restructuring is a logical next step in Severstal’s development, reflecting our already strong position as an integrated metal and mining business with a growing international focus. The simplified, more focused structure will serve to improve our competitiveness, increase production, cut costs and maximize profit.”

Evraz acquires iron ore, coking and steel making assets in Ukraine

Evraz Group SA has announced the completion of the first stage of the earlier announced acquisition of selected production assets in Ukraine.

For a cost in excess of USD 1,000 million, Evraz has closed the acquisition of 51.4% of shares of Palmrose Limited, a Cyprus based holding company for the following assets in Ukraine:

1. A 99.25% share holding in the Sukhaya Balka iron ore mining and processing complex

2. A 95.57% share holding in the Dnepropetrovsk Iron and Steel Works

3. Share holdings in three coking plants 93.74% of Bagleykoks, 98.65% of Dneprkoks and 93.83% of shares outstanding of Dneprodzerzhinsk Coke Chemical Plant.

Evraz transferred the amount payable in favor of the seller in December 2007.

The next stage of the transaction that implies issuance of new shares in Evraz is subject to certain legal requirements in Luxembourg, and is expected to be completed soon thereafter. An announcement as to the final completion date and terms will be made in due course.

The Dnipropetrovsk steel plant has annual capacity to produce 1.8 million tonnes of pig iron and 1.23 million tonnes of crude steel. The Sukhaya Balka complex has capacity to produce 3.75 million tonnes a year of iron ore. Evraz will use the coking plants to process some of the excess coking coal produced by its mines in Siberia.

TMK ships premium connections to Rosneft for Vankorskoye

TMK announced that it has sent its first shipment of casing with TMK premium connections to OAO NK Rosneft. These high performance TMK tubular products will be used in Rosneft’s Vankorskoye oil and gas field.

The released added that this shipment of TMK-FMC Premium threaded 177.8 mm casing with 10.36mm wall thickness was supplied within the framework of the long term strategic partnership between TMK and Rosneft. Signed in February 2007, the partnership was agreed for an initial period of three years with an option for an extension. The partnership ensures optimal coordination for the design and production of new types of pipes supplied by TMK to Rosneft for use in the oil and gas industry, both in the medium and long term.

The TMK-FMC premium connections were designed by TMK Premium Service a division of TMK specializing in the production and supply of premium connections. TMK Premium Service offers a range of patented connections, developed by TMK R&D specialists and designed for onshore and offshore exploration, appraisal, and production drilling in challenging environments. In addition to the development of premium connections, TMK Premium Service provides transportation, consulting, and training services to TMK customers and valuable support in their production activities.

In 2007, within the frames of the strategic agreement, TMK shipped to Rosneft approximately 95,000 tonnes of high performance OCTG. Shipments for this year are expected to approach 140,000 tonnes.

The Vankorskoye oil and gas field is expected to be one of the key fields supplying the Eastern Siberia –Pacific Ocean Pipeline.

Evraz group's proposed US dollar bond rated 'BB-' - S&P

Thomson Financial reported that Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the proposed US dollar fixed rate bond to be issued Russian steel maker Evraz Group S.A.

The report said the bond is rated at the same level as the 'BB-' corporate credit rating on Evraz and the group's two existing rated senior unsecured bonds of USD 750 million due 2015 and USD 300 million due 2009.

S&P said the amount, maturity and coupon will depend on market conditions during placement.

Gazprom bags Chayanda gas field

RIA Novosti cited Mr Andrei Dementyev Deputy Industry and Energy Minister as saying that the Russian government has decided to give a major natural gas field in the country's northeast to energy giant Gazprom without a tender.

Mr Dementyev said Gazprom will pay at least USD 340 million for the license to develop the Chayanda gas field with proven reserves of 1.24 trillion cubic meters of gas and 50 million tonnes of oil and will start its development already in 2008.

The report added that the Chayanda field in Yakutia is intended to supply natural gas to Asia and Pacific countries, in particular to China.

The deposit was included in the list of the country's strategic deposits in early December last year.

TMK and Societe Generale ink credit agreement

TMK announces that a credit agreement was signed between Seversky Tube Works and the Société Générale Group. The credit agreement of EUR 88.7 million will partially finance Seversky’s acquisition of a Fine Quality Mill. Payments under the transaction will be carried out by Yekaterinburg branch of Bank Société Générale Vostok.

The released added that the agreement between TMK and Société Générale was proposed and approved by TMK shareholders on the December 25th 2007 Extraordinary General Meeting of Shareholders. The term of the loan is for 7 years at an annual interest rate of 5.11% and export credit insurance is provided by the SACE agency.

This additional 600,000 tonnes per annum capacity will enable Seversky to produce 168 mm to 365 mm hot rolled seamless pipes with 6.28 mm to 37.3 mm wall thickness. Danieli, one of the world’s leading suppliers of equipment to the steel industry, will supply the FQM. Commissioning is scheduled for the second quarter of 2010.

Mr Konstantin Semerikov CEO of TMK said “We are very satisfied with our agreement with Société Générale as we attracted advantageous financing for one of our key investment projects. 2008 is the peak year for the implementation of our Investment Program and we are confident it will be carried out as scheduled.”

Mr Alexei Pavin General Director of the Yekaterinburg branch of Bank Société Générale Vostok commented, “Given our parent company’s resources and experience, we can successfully compete with the largest Russian and international banking groups operating in the Russian financial lending sector. Long term and large scale facilities are a priority for the Bank Société Générale Vostok.”

EU says Turkmenistan guarantees gas supplies

The Associated Press reported that Turkmenistan has agreed to supply the European Union with 10 billion cubic meters of natural gas from next year. The report said the agreement will help the EU reduce its reliance of gas imported from Russia.

Ms Christine Hohmann spokeswoman of EU said Mr Gurbanguli Berdymukhamedov president of Turkmen committed to supply the gas last week when senior European officials visited the Central Asian nation.

The EU estimates that imports are expected to represent 85% of its gas consumption by 2030, compared to 50% in 2000 as it switches power generation away from more polluting coal and oil.

Uzbekistan and China team up for gas pipeline construction

Kazinform reported that Uzbekistan and China have established a joint venture to build a gas pipeline from the Central Asian state to its eastern neighbor.

A spokesman for Uzbekneftegaz said the joint venture, Asia Trans Gas, established by Uzbekneftegaz and China National Petroleum Corporation will be responsible for the design, construction and operation of the Uzbekistan-China gas pipeline.

The spokesman said the route of the pipeline, intended to pump gas from energy rich Uzbekistan to energy-hungry China, will be approved by April 20 while project funding will be determined by June 1st 2008.

He said the first leg of the pipeline is expected to be built by December 31st 2009 and put into operation in January 2010. The second stage is planned for completion by December 31st 2011.

Tenders for the delivery of equipment and contractual work for the pipeline construction are scheduled to be announced in April.

Gazprom and Slovenia hold talks on South Stream project

It is reported that Mr Alexei Miller chairman of Gazprom's Management Committee has held talks with Mr Danilo Turk president of Slovenia's on the possibility of the republic's participation in the South Stream gas pipeline project.

As per report the matter was discussed during a working visit of a Russian delegation to Slovenia, the current holder of the EU presidency. During the meeting, the parties considered the prospects for cooperation in the gas industry and confirmed their interest in the development of long-term partnership between Russia and Slovenia.

74 miners on hunger strike in RUSAL

Itar-Tass cited Mr Valery Zolotarev chairman of the SUBR Independence Trade Unions as saying that 74 miners of the enterprise Sevuralboksitrud, which is a part of the company RUSAL declared a hunger strike demanding for higher wages. He said that “The hunger striker was declared on Sunday. The strikers settled in the building of the administrative building of the mine Krasnaya Shapochka.”

Mr Zolotarev said the miners went on a hunger strike after a commission set up at SUBR said that it could not review demand of miners after a previous strike that continued from March 26 to April 4. He said “For this reaso