SAIL BSP posts record performance for 2007-08

With its best ever performance in the annual hot metal, crude steel and saleable steel production, Steel Authority of India Limited’s Bhilai Steel Plant is all set to share 45% of SAIL’s total profit in the financial year 2007-08.

Mr R Ramaraju MD of BSP said that "In the last fiscal, BSP accounted for 45% of SAIL’s total profit. This year also, we expect to maintain."

BSP ended fiscal 2007-08 by crossing the 5 million tonne mark in the production of hot metal as well as in crude steel for the second time. It had earlier crossed the 5 million tonnes of hot metal production target for the first time in fiscal 2005-06. During 2007-08, BSP achieved the best ever annual production of 5.268 million tonnes of hot metal, surpassing its earlier best performance besides producing 5.054 million tonnes of crude steel and 4.427 million tonnes of saleable steel.

Mr Ramaraju said that while all previous records of finished rails and plates, merchant products and wire rods production have been smashed, a significant achievement of BSP in 2007-08 was the quantum jump in the production of value added special steel products and development of new product grades.

He said that several strategies were adopted for enhancing performance and to provide a cutting edge to the organization during the year, leading to growth. These include maximizing asset utilization, a higher finished steel component in saleable steel at 81.6%, registering a growth of 6.6% YoY and greater thrust on value addition of products like gradual switch over to higher grade.

According to Mr Ramaraju, 2007-08 once again demonstrated ability to set new records, like its merchant mill of 1960’s vintage which surpassed 700,000 tonnes mark for the first time since inception, against the annual rated capacity of 500,000 tonnes. Plate Mill crossed its annual business plan target of 1.25 million tonnes on March 20th 2008.

Mr Prasada comments on steel prices in India

Mr Jitin Prasada minister of state for steel in a written reply in the lower house of Indian Parliament informed that “There has been a wide fluctuation in price movement of different steel products during the last one month. The rise in price of steel is attributable to various factors both in the supply side as well as the demand side.”

Mr Prasada said that “On the supply side, rise in price of steel can be attributed to a steep rise in the price of critical input materials such as iron ore, coking coal and metcoke in domestic and international markets. On the demand side the mismatch in demand and supply is the main reason for the rise in steel prices.”

Mr Prasada added that “In a liberalized scenario the price of steel is determined by the interplay of the market forces. Nonetheless, the Government has taken the several measures for stabilizing the steel prices in the domestic market.”

He assured that the government is closely monitoring the movement in steel prices and will take appropriate fiscal measures, if necessary.

PM to take call for measures to cool down steel prices

It is reported that a four member ministerial committee to look into the issue of rising steel prices is set to suggest a package of revenue neutral measures aimed at taming domestic steel prices.

Mr Ram Vilas Paswan union steel minister said that the final decision would be taken after the report is submitted to the prime minister.

He added that "All the ministries have their own views and we will place them before the prime minister who will take a final decision. The only point which was agreed to by all the ministers was that the price of steel has to come down."

ASSOCHAM opposes proposal for blanket ban on steel exports

Associated Chambers of Commerce and Industry of India said that a blanket ban on export of steel items will have serious repercussions as the industry will not only lose international market and dent India’s credibility, but will attract huge litigations in courts overseas.

According to ASSOCHAM, Indian exporters on one hand would have to be spending huge amount of money to fight litigations, on the other massive stocks of inventories be piling up of materials already produced specifically for export purposes.

Mr Venugopal N Dhoot president of ASSOCHAM said that "It is ironical that we continue to export freely the very important raw materials with a nominal export tax and the end product is being banned from export."

ASSOCHAM said that the total percentage of exports of steel at the moment is not more than 6% to 8% of the total production. A significant part of the exports of steel consist of products which do not have a domestic market or are surplus to domestic requirement. A blanket ban on the export of steel items will put a strain on the existing manufacturers who have imported and established steel mills to convert raw steel into exportable product. With a blanket ban on exports, what happens to the material which necessarily has to be produced or to the equipment already established which will be rendered idle and in fructuous.

Mr Dhoot said that the export markets are established with considerable efforts and long term investment. If exports are banned abruptly, international buyers would seek other markets and India would lose its export markets on a very long term basis. It will take years for India to regain export initiative once again.

It may be noted that the major steel manufacturers have already given an assurance to union steel ministry on March 26th 2007 that they will be voluntarily controlling exports and exercise self restraint. Naturally, such self restraint would not be at the cost of dishonoring existing long term export contracts or failing in their obligations under EPCG to the government and thereby committing an offence.

Government of India has already withdrawn the benefits or incentives given under sovereign assurances to the steel industry to encourage exports through the earlier national trade policies. The effects of these withdrawals are yet to be seen as they have happened only in the last week or so. The exporters have not been given reasonable time to adjust their exports to these withdrawals.

Urging the government to review the iron ore exports policy, Mr Dhoot said that high and medium grade iron ore reserves would not last more than 19 years, even if exports of these grades are frozen at the current level and if the targets set out in NSP 2005 are to be met. This necessitates computation of depletion premium for ion ore to carry out economic analysis. The depletion premium works out to USD 10.18 for a steel producer located within the state. No such depletion premium has been applied for coking coal, as the prices did not exhibit any trend prior to the recent steep price hike.

Finance minister warns on cartelization in cement & steel

BL reported that, under severe criticism in parliament for its failure to tackle rising prices in the economy, the centre has accused the domestic steel industry and cement manufacturers of operating in a cartel like fashion. It cautioned that tough administrative measures would be taken if the behavior of economic players in some sectors does not change.

Hitting out at the cement and steel manufacturers, Mr P Chidambaram union finance minister said that "I have no hesitation in repeating that cement manufacturers are behaving like a cartel. There are signs that even steel manufacturers are behaving like a cartel. If they do not understand the gravity of the situation and behave responsibly, centre will not hesitate to take tough administrative measures."

Mr Chidambaram said that the steel makers’ contention that steel prices rise due to increase in prices of gas and iron ore was creating a logjam and that somewhere this logjam had to be broken.

He added that "While many commodities will indeed reflect international prices, the capacity to exploit excess demand in the economy must indeed be addressed by fiscal, monetary and administrative measures. We have taken fiscal and monetary measures. But we cannot rely entirely on fiscal and monetary measures. We have to take such administrative measures that restrain the proclivity of producers to increase prices simply because the situation allows them to exploit."

Global pig iron prices to surge on Indian export ban

Indian government’s proposal for stopping export of pig iron to stop to feed high domestic demand is likely to push global levels substantially.

Brazil, Russia and India are the top three pig iron suppliers in the world.

SAIL to hold prices

BL reported that Steel Authority of India Limited has decided not to increase prices for the moment.

The report cited a senior SAIL official as saying that “We have been told by the government to hold prices. Any decision on price revision will come only after the Government clearance.”

TATA Steel to raise USD 175 million via bonds - Report

Reuters reported that TATA Steel is expected to raise up to INR 7 billion rupees (USD 175 million) by selling bonds.

The report quoted some investment bankers familiar with the deal as saying that there would be two tranches to the issue. The planned 5 year bonds would carry a coupon of 9.75% and the 7 year bonds would pay 9.90%.

As per bankers, Citigroup is the sole arranger to the issue.

Orissa earmarks land for ArcelorMittal steel plant

Reuters reported that Orissa has earmarked 7,000 acres of government and private land for a steel project proposed by ArcelorMittal.

Mr Ashok Dalwai industry secretary of Orissa said that "We have cleared 7,000 acres of land for the steel project and captive power plant so that they can start work."

He added that most of the land is owned by the state but ArcelorMittal would have to purchase some from farmers, a potentially controversial process the Orissa government would facilitate.

In December 2007, Arcelor Mittal had signed a multi billion deal with the state government to build the 12 million tonne plant. It also includes a 750 MW power plant. It had asked for 1,000 acres on which to build homes for workers, in addition to 7,000 acres for the steel plant itself.

In July 2007, Mr Lakshmi Mittal CEO of ArcelorMittal had said that a detailed project report would be ready by mid 2008 and the first phase of the plant would be commissioned within 4 years of the report's completion. However, state officials said that the project would only get formal clearance once that report had been submitted.

RKKR Steels may sell 15% stake in SBQ Steels

BL reported that RKKR Steels Limited may sell 15% stake in its wholly owned subsidiary SBQ Steels to a private equity fund. The report cited Mr Rajiv Rai MD of RKKR Steel as saying that a decision is likely in a couple of months. He added that "We may dilute up to 15% of our stake in SBQ Steels if we decide to go ahead."

Mr Rai said that "While the money raised through private equity would be to part fund the II phase of the project, for the debt part of it, the company is in talks with 7 banks." He added that 3 banks have given in principle nod and the other 4 are expected to send in their clearance soon.

SBQ Steel is putting up an INR 2,000 crore project for producing specialty steels, cement and power. It is also setting up a Greenfield fully integrated steel plant near Nellore in Andhra Pradesh through a special purpose vehicle SBQ Steels Limited. The project, which also includes a 300,000 tonne cement plant and 65 MW thermal power plant for captive purpose, is coming up on a 500 acre piece of land.

The first phase, which will be completed by October 2008, will have capacity to manufacture 250,000 tonne steel and it will be doubled in the second phase. The entire project cost is pegged at INR 2,000 crore and will be funded through debt and equity in the ratio of 65:35.

Bhuwalka Steel acquires stake in Benaka Sponge Iron

Bhuwalka Steel Industries Limited announced that it has taken over 299,900 equity shares of INR 100 each at INR 334 per share in Benaka Sponge Iron Pvt Ltd at Bellary by way of all cash deal of INR 10.02 crores.

Benaka Sponge Iron Pvt Ltd located in Belagal Village of Bellary, having proximity to iron ore belt yielding logistic advantage. Benaka has at present 2 Kilns of coal based sponge iron plant of the capacity of 100 tonnes per day each

Benaka Sponge Iron Pvt Ltd posted a turnover of INR 40.21 crores with a PAT of INR 2.02 crores during 2006-07 and it is estimated to post a turnover of INR 59 crores with a PAT of about INR 2.80 crores for the year 2007-08.


The acquisition will enable the Company to have backward integration and have synergy with the operations of the Company.

Indian iron ore exports decline marginally in 2007-8 – FIMI

BS reported that, amid surging freight costs, the iron ore exports fell marginally to 93 million tonnes in 2007-08 from 93.7 million tonnes in financial year 2006-07.

According to Federation of Indian Mineral Industries, ocean freight rates rose by 56% and the railway freight soared by 68% in the last financial year which have affected the iron ore export. Similarly, infrastructure bottlenecks, shortage of ocean vessels and export duties imposed by the centre also affected the shipment of iron ore.

Nr SB Chauhan advisor to FIMI said that "The 100 million tonnes mark has become elusive. In 2007, there was a high demand for Indian iron ore from China. Australia and Brazil could not make the shipments in time due to inclement weather and port congestion. However, we could not capitalize on the demand since we had our own share of problems."

Steel & cement makers decline to respond to cartel charges

PTI reported that steel and cement manufacturers have refused to respond to charges of cartelization leveled by government, which promised tough measures against those fuelling prices.

Mr Moosa Raza president of Indian Steel Alliance, when asked about the charge of cartelization leveled by finance minister Mr P Chidambaram in the Lok Sabha during a debate on prices, said that "We will not respond."

As per report, most of the cement producers also ducked the issue.

MMTC board approves proposal for mining JV with TATA Steel

It is reported that state run trading company MMTC’s board has approved the proposal for the JV with TATA Steel for exploration and development of mines for minerals, ferrous and non ferrous ores, precious metals, diamonds and coal on public private partnership route.

Sino Indo steel meet calls for better ties

Mr SK Bhattacharya former MD of Durgapur Steel Plant, while addressing at SIEMS 2008, a two day Sino Indo steel plant equipment manufacturers and suppliers’ meet, said that cross border co operation is the order of the day and to meet challenges of achieving the targeted growth rate in steel sector, India must explore the possibilities of involving the Chinese.

Mr VK Gulhati director technical of Steel Authority of India Limited, who was the chief guest at the function, said that the targeted production figure could be achieved only if there was a synergy among the equipment manufacturers, suppliers and the expanding steel making facilities.

Earlier, Mr AS Mathur chairman of the organizing committee and executive director of CET has welcomed the 200 odd delegates from both the countries. He said that the target of 110 million tonnes in India as envisaged in the national steel policy 'Vision 2020' has been deemed revised upward and was currently being projected at 200 million tonnes per annum by 2020.

SIEMS 2008 is being organized by the Ranchi chapter of Indian Institute of Metal in association with Centre for Engineering and Technology and research & development centre for iron and steel of both SAIL units and Mecon Limited.

BSRM blamed for rebar price hike in Bangladesh

The Daily Star reported that Bangladesh Steel Re rolling Mills has been identified as main offender behind the increase of rebar price in the local market, which stuck construction work especially in the housing sector.

The daily Star quotes an intelligence report as saying that "BSRM had imported 49,300 tonnes of billet between July 2007 and January 2008 at USD 500 per tonne. At the same time the other rod manufacturers imported nearly 40,000 tonnes of billet. But the BSRM illegally increased price of rod which it imported at lower rate earlier. It increased the price of iron rod for making extra profit."

The report also identified that the Bangladesh Ship Breakers Association made a syndicate for importing scrap ship though the association, which has created artificial crisis of raw materials in the market resulting an increase of iron rod price.

Industry ministry sources said that the government is considering action against the BSRM and other steel mills for making the rod market instable. An official said that "We are considering actions against the still mills for making extra profit illegally."

Meanwhile, On April 11th 2008, the government has re fixed prices of different categories of iron rod to bring it at reasonable level at a meeting with the businessmen. But none of the businessmen are following the government decision and selling iron rod at higher price.

The recent unusual price hike of iron rod, rise from BDT 45,000 to BDT 65,000 within few days, has also affected the government's annual development program marking a poor implementation rate.

JSPL commissions 250MW unit

Jindal Steel & Power Limited announced that its subsidiary Jindal Power Limited’s second unit of 250 MW capacity has started generation of power for commercial purposes.

The release said that other two units of 250 MW each are in the final stage of implementation and the project of 1000 MW is likely to be operational by August 2008.

The release added that laying down of 400 KVA Transmission line from the power plant of Jindal Power Limited up to Sub station of Power Grid Corporation of India Ltd at Raipur in Chhattisgarh has also been completed.

Rathi Udyog becomes Rathi Steel & Power Limited

Rathi Udyog Limited has informed BSE that its name has been changed from Rathi Udyog Limited to Rathi Steel and Power Limited with effect from March 20th 2008.

EC sets April 30th deadline for TATA Motor JLR review

It is reported that The European Commission has invited meanwhile interested third parties to submit to it their observations on the proposed operation. EC has set itself the provisional deadline of April 30th 2008 to announce the results of its investigation.

The European Commission was notified on March 26th 2008 of the proposed purchase by TATA Motors of the Jaguar & Land Rover business from the Ford Motor Company.

BHEL may get NTPC deals on a negotiated price

It is reported that union power ministry has finally agreed to give Bharat Heavy Electricals Limited a few of NTPC’s supercritical 660 MW and 800 MW projects on a negotiated basis. This would ensure smooth transfer of technology for supercritical units between Alstom Siemens and BHEL.

As per report, a formula has been worked out that would ensure both competitive bidding as well as an opportunity for BHEL to ensure an effective technology transfer and a cabinet proposal to this effect will be taken up for consideration soon.

Sources said that the proposal seeks to give some NTPC projects to BHEL at a predetermined price. Of the proposed projects, some would be given out through competitive bidding. The lowest bid in these competitively bid projects would become the price that BHEL will have to pay for the projects that it is awarded on a negotiated basis. BHEL has maintained that it would require eight to 10 units to effect the technology transfer for the supercritical units.

A power ministry official said that this would help ensure NTPC gets the best possible price while at the same time ensuring that India gets the opportunity to acquire advanced technology to indigenize.

BHEL has a technology transfer arrangement with Alstom and Siemens for the 800 MW supercritical units. BHEL has asked that 8 to 10 units of NTPC’s projects which would use 800 MW supercritical technology be awarded to it, so that technology transfer from Alstom and Siemens can take place. This would allow it to internalize and develop indigenous capacities to manufacture units with supercritical technology.

Chennai & Ennore ports pushing for growth

Mint reported that two government owned ports located just a few kilometers away on India’s eastern coast are slugging it out to develop container handling facilities with private investment to cater to rising needs of exporters and importers in the world’s second fastest growing major economy. Demand for container facilities is rising in India and both the Chennai and Ennore ports are looking to tap it.

One of them, Ennore Port Limited, was set up primarily to handle the so called dirty cargo such as iron ore and coal and free Chennai Port. But, with Ennore getting into the business of handling clean cargo such as containers, Chennai Port says it sees no reason to give up dirty cargo.

The fight between the 2 ports started when Ennore Port floated a global tender on March 8th 2008 to set up an INR 1,300 crore container cargo facility with an annual capacity of 1.5 million TEUs at the port.

Chennai Port floated a global tender for building a mega INR 3,150 crore container terminal with an annual capacity of 4 million TEUs at the port, leaving bidders confused as to which one to bid for.

Chennai and other 10 union government owned major ports are run as trusts under the Major Port Trusts Act, 1963. These ports are regulated by the Tariff Authority for Major Ports.

PFC net profit in 2007-08 up by 23% YoY

Power Finance Corporation Limited has posted a net profit of INR 1209 crore in 2007-08 fiscal up by 23% YoY as against INR 986 crore posted during 2006-07 fiscal. While the loan sanctions touched an all time high of INR 69,498 crore up by 123% YoY, disbursements recorded a rise of 15% YoY at INR 16,211 crore. Its total income rose by 28% YoY as against INR 3928 crore.

Some of the major loans sanctioned by PFC during the 2007-08 fiscal include
1. Sikka thermal power station in Gujarat – 5000 MW
2. Utran thermal power station of GSECL – 370 MW
3. Kothagudem thermal power station of APGENCO – 500 MW
4. Rayalseema v of APGENCO – 210 MW
5. Ukai thermal power station – 490 MW
6. Hissar thermal power station of HPGCL – 1200 MW
7. Krishnapatnam thermal power station of APGENCO – 1600 MW

The cumulative sanctions and disbursements reached a figure of over INR 186,418 crore and over INR 92,065 crore, respectively. PFC had so far financially supported projects of over 70,000 MW and about 33,000 MW had been commissioned accounting for about 23% of India's installed capacity.

DPR for Sindol hydro power project by October 2008

Project today reported that the detailed project report for the Sindol hydro power project at Deogaon in Sambalpur district of Orissa is likely to ready by October 2008.

The project promoted by Orissa Hydro Power Corporation Limited will be implemented in 3 phases and coming up on Mahanadi river basin. It will set up 2 units of 90 MW each in stage I & II, 120 MW in the III stage.

The pre feasibility report for the 300 MW hydro based power project is ready and Orissa Hydro Power Corporation Limited is in the process of achieving the financial closure. Tender for machinery suppliers and civil contractors will be floated soon.

Water & Power Consultancy Services India Limited, the consultant for the project, has prepared the pre feasibility study.

Indian auto majors to hike car prices - Report

ET reported that car prices are likely to increase by 2% to 3% due to rising input costs. As per report, premium cars will cost INR 14,000 to INR 16,000 more and entry level cars will be dearer by INR 4,000 to INR 6,000.

As per report, Maruti Suzuki India is analyzing the quantum of hike to neutralize the impact of high commodity prices like steel, aluminum, nickel, plastic and rubber. The report cited Mr Mayank Parekh sales & marketing head of Maruti India as saying that "It is tough to manage the input cost situation. We are currently working on the price strategy so that the burden on the customer is minimum. There is no sign of commodity prices easing."

Mr Jnaneshwar Sen VP sales & marketing of Honda said that "We are looking at increasing prices, but are still undecided on the exact hike. We are studying the commodity prices as well as the currency rate fluctuations in the international market for imports from Japan and Thailand before announcing any price revision on our cars."

The utility vehicle makers are also following the car companies and evaluating to increase prices to neutralize rising input costs. Utility vehicle major Mahindra & Mahindra president

Mr Pawan Goenka president of Mahindra & Mahindra said that "There is a massive pressure due to surging commodity prices and we have no option but increase prices. We have been absorbing the increase for the past few months, but now the industry is prepared to increase prices on the final product. We are facing an unprecedented increase of 20% to 30% in different commodities. It is not just sheet metal prices, cost of alloys for foundries and castings have also gone up.”

The report added that other major players like TATA Motors and Hyundai Motor India are yet to take a call on price revision."

Titagarh Wagons to list on April 21st 2008

It is reported that Titagarh Wagons Limited will list on the bourses with its equity shares on April 21st 2008. It has been fixed the issue price at INR 540 per equity share for its initial public offering of 23,83,768 equity shares of INR 10 for cash at a price determined through 100% book building process.

The issue was subscribed to 6.75 times. The qualified institutional bidder portion was subscribed approximately by 10.37 times, non institutional bidder portion by 2.77 times and retail bidder portion by 0.98 times.

The objects of the issue were to utilize the proceeds of the fresh issue towards the purposes of
1. Setting up an EMU manufacturing facility at Uttarpara unit
2. Modernizing and expanding existing facilities at Titagarh & Uttarpara units
3. Setting up an axle machining and wheel set assembly facility at Uttarpara unit
4. Constructing a corporate office and a design cum research and development office
5. Strategic acquisition or investments
6. Brand building exercise
7. General corporate purposes

The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co book running lead manager is JM Financial Consultants Private Limited.

Mumbai and Hyderabad Metro rail to be operational through PPP

Pitching for the public private partnership in urban infrastructure, centre has said that projects like Metro rail can also be implemented through PPP model.

Mr Jaipal Reddy union urban development minister said that "Metro rail projects in Hyderabad and Mumbai are to come up through PPP model. This is for the first time in the country that we are allowing Metro to be operational in these two cities through PPP. Despite the fact projects in the urban sector do not lend themselves easily to the PPP model and there are limits to what the government can do, Metro projects in these cities are being implemented under the PPP mode."

Mr Reddy said that, besides Metro, government is also keen to allow bus rapid transit system, construction of road over bridge and underpass through the PPP mode. He added that "It is an important milestone in the reform agenda of the government. The scheme envisages creation of infrastructure in cities through government assisted fund. Till now the scheme is operational in 63 cities."

Kerala earmarks INR 25.7 crore for Vizhinjam port

Exim News Service reported that Kerala government has earmarked an investment support of INR 25.70 crore to Vizhinjam International Seaport Limited in its annual budget. This will be utilized to establish rail road connectivity and provide water supply, power and other infrastructure for the proposed international deep sea container transhipment terminal.

An official revealed that Vizhinjam International Seaport Limited had received 5 bids from different consortia to the tender floated for the proposed INR 5,348 crore terminal. The 3 stage evaluation of the bids is in progress and is expected to conclude within 45 days.

Vizhinjam International Seaport Limited is a public company floated by the state government for the project and is responsible for the project.

Startek Shipyards launches 2 dredgers

Chennai based dredgers manufacturer Startek Shipyards Private Limited has unveiled its first amphibious cutter suction dredger and a bucket dredger.

The 2 dredgers namely Crawl cat 400 and C90 Conver are manufactured with technology from IHC Merwede of Holland for a private company in Kolkata and Andhra Pradesh Power Generation Corporation in Vijayawada.

Mr Deepak Rao Beedu executive director of Startek Shipyards said that Crawl cat 400 can move from land to water on its own. This model is ideal for fishing harbors, inland waterways, minor ports, cooling water intake points of power plants and lakes. He added that with a dredging depth of maximum of 6 meters, it can adjust to its own height using its track poles.

The second model, which is ideal for small irrigation canals, is a bucket dredger that scoops mud from the bottom and can go 3.5 meters deep.

According to Mr Beedu, the size of the dredger market in India is 3 units a year and there are only 2 companies in India to manufacture dredgers. Startek has orders for 5 dredgers worth INR 35 crore and the work will be executed in the next 18 months.

India had 72.7 million registered motor vehicles on March 2004

Mr KH Muniyappa union minister of state for shipping, road transport & highways informed parliament that, as per the latest available data, the total number of registered motor vehicles in India as on March 31st 2004 was 72,717,935.

He said that the number of motor vehicles had steadily increased at an average rate of 10% per annum during the years 1994-2004.

He added that “However, the road space is not increasing commensurate with the increase in number of vehicles resulting in many serious problems such as traffic congestion, increase in number of road accidents etc.”

Ternium and Venezuela to start Sidor takeover talks

Reuters reported that steelmaker Ternium SA expected to start talks on Thursday with the Venezuelan government regarding the terms of a state takeover of its Sidor operations.

Ternium controlled by Argentine conglkmerate Techint said it created a transition committee with the Venezuelan government. The committee will oversee Sidor operations until the nationalization is complete.

Ternium said that "The discussions among representatives of Ternium and the Venezuelan government regarding the terms and conditions under which all or a significant part of Ternium's interest in Sidor should be transferred to the government are expected to begin today.”

Ternium Sidor had long running conflicts with its workers, but thought it would avoid nationalization after it signed an agreement with Venezuela last year to prioritize steel sales to the domestic market. Mr Hugo Chavez president of Venezuela ordered the takeover of Ternium Sidor, the country's largest steel plant, last week. It was his latest move to put what he calls strategic industries in the South American oil nation under state control.

EU opens inquiry into Hungarian state aid to Dunaferr

The European Commission said that it has opened an in depth inquiry into EUR 37.4 million of aid granted to Hungarian steel producer Dunaferr. The commission said it will investigate whether the subsidy is in line with European Union state aid rules which prohibit investment aid for steel products.

The commission said it doubts whether the aid to Dunaferr, which owns the only integrated steel works in Hungary and is part of the Ukranian Industrial Union of Donbass, respects the provisions of the 2002 Multi Sectoral Framework, which prohibits aid for investment projects in the steel industry because of the structural overcapacity of this sector.

In January 2007, the Hungarian authorities notified that it granted investment aid to Dunaferr in December 2006. They granted the aid under a scheme previously approved by the commission, which established tax incentives to ensure productive investment in the less developed regions of Hungary. The Hungarian authorities argue that the aid concerns only products which are not part of the steel sector. Therefore, the commission's investigation will focus in particular on the classification of certain products.

Steel inventories drop sharply in March in US and Canada

According to the latest Metals Activity Report from US based Metals Service Center Institute, the slowing North American economy overwhelmed the normally positive seasonal business pattern for steel and aluminum in March. With metals service centers tightly managing inventories, US sales of steel were fell at double digit rates from those of March 2007, while Canadian steel sales also dropped sharply.

Service center inventories, which normally expand this time of year in response to market demand, instead were flat to lower from February levels and remained well below year ago levels.

Steel shipments from US metals service centers were down 11.2% from March 2007, to 4.25 million tons. First quarter shipments of nearly 13.1 million tons were 4.8% below those of the 2007 quarter. Steel inventories at the end of the month totaled nearly 12.1 million tons, 18.6% lower than at the end of March a year ago and equal, at current shipping rates, to a 2.8 month supply.

Canadian steel shipments for March of 298,500 tons were 12.7% lower than a year ago and first quarter volume of 956,300 tons was 3% below last year. Canadian steel inventories of 1.1 million tons were down 10.2% from March 2007 and, at current shipping rates, represent a 3.7 month supply.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

Kao Hsing Chang plans to build new plate plant in Taiwan

Taiwan’s Kao Hsing Chang Iron & Steel Corp is going to have the interim board of shareholders meet to discuss its heavy plate plant project in the Southern Ping-Tung Industrial Area.

According to the news report, KHC has invited China Steel Corp to invest in this project and so far, CSC has already had theist evaluation team evaluate this investment. The management of CSC said that if KHC can insure that they will have no problem in getting the raw material source, then CSC will be able to invest in this project.

On the other hand, KHC also said that if CSC can invest in this project, then KHC will be able to complete the plant's construction within two years and start production.

(Sourced from Yieh.com)

Rautaruukki acquires Hybri Steel Oy

Rautaruukki Corporation announced that it has acquired the business operations of Hybri Steel Oy which has operations at Uusikaupunki in Finland.

Hybri Steel’s core business is laser welded sandwich panels and laser and laser hybrid welding. The company is one of the world's leading manufacturers of laser welded sandwich panels and its business is based on technology that allows laser welding to be used in mass production.

Mr Olavi Huhtala president of Ruukki Metals said that “The acquisition supports our growth strategy in special products. Laser and laser hybrid welding not only give our customers entirely new opportunities to exploit more dynamic and efficient structural solutions, but also enable the properties of special steels to be fully utilised. The unique expertise and equipment brought about through the acquisition of Hybri Steel together with the bevelling laser recently brought into use at the Seinäjoki service centre clearly expands our service offering and Ruukki’s know how in special product services.”

Laser welded sandwich panels as well as laser and laser hybrid welding is used specifically in construction, shipbuilding and the lifting, handling and transportation industry. The advantages of the technology over traditional welding methods are high speed, high quality and minimal welding distortions.

Tin prices are setting a record

Purchasing.com reported that tin futures rose to a record USD 9.66 per short tons on several exchanges as China and Indonesia, the world's largest producers, appear to be restricting supplies.

As per report China’s Yunnan Tin Co, the world's biggest producer, has halted shipments because of a lack of buyers willing to absorb China’s new and higher export duty. Indonesia, the world's second largest producing nation is reported to be capping production at 100,000 tonnes in 2008 and next to extend mine life and limit damage to the environment.

Mr Cui Lin an analyst with Beijing Antaike Information Development Co said that further tightening in global supplies will take place after what happened in Indonesia.

Tin prices have surged 46% in the past year amid rising demand for the metal used in soldering in China and a crackdown on illegal mining practices in Indonesia. China has been a tin net importer since August 2007 and is likely to remain that way for a time.

Alert Steel to acquire the business of General Steel and Sovereign Park

South African Alert Steel Holdings Ltd announced that Alert Steel Limited has entered into a sale of business agreement dated April 16th 2008, in terms of which the seller, General Steel Limited and Sovereign Park Benrose Limited collectively, will sell the business and sale assets of General Steel, as a going concern and the property owned by Sovereign Park to Alert Steel.

The cash purchase price payable by Alert is the aggregate of the sum of ZAR 14.650 million being ZAR 3.20 million in respect of the property and ZAR 11.450 million in respect of the business, plus the amount of any liabilities applicable to the property and taken over by Alert Steel, being ZAR 1.600 million and the amount by which the net tangible asset value at the effective date exceeds an amount of ZAR 6.60 million being the NTAV guaranteed by the seller limited to ZAR 1.50 million.

The release said that “If the profit after tax in respect of the financial statements for the year ended February 29th 2008 is less than ZAR 3.8 million a downward pro rata adjustment will be made to the purchase consideration. The effective date of the transaction will be May 1st 2008.”

Alert Steel was established by Mr Wynand Schalekamp on a part time basis 27 years ago. Alert Steel, through its operating subsidiaries, is a large retailer of prime steel, building materials, plumbing and hardware products through its various 11 retail branches and 2 rebar manufacturing plants.

ArcelorMittal confirms interest in Kremikovtzi

Denvik reported that Mr Petar Dimitrov minister of economy and energy of Bulgaria has held a working session with representatives of ArcelorMittal.

As per report, Arcelor Mittal working group is headed by Mr Michel Wurth member of the group management board. He presented the company to Minister and confirmed the interest in acquiring Kremikovtzi steel mill.

Mr Dimitrov declared the government’s readiness to cooperate with the new owner in solving the mill’s problems if concrete steps are undertaken to implement the viability and environmental measures plan.

Merrill Lynch, a financial management and advisory company, pointed to ArcelorMittal as one of the potential investors in Kremikovtzi steel mill.

Altri to spin off steel unit Ramda

Reuters reported that Portuguese paper and pulp maker Altri will spin off steel unit F Ramada, offering shareholders one share of the new company for every four Altri shares they own.

Altri in a statement said that the spin off would offer greater transparency and market value to its two main business areas and had been motivated by the increasing management challenges posed by the growing size of its paper and pulp business.

It added that the steel business will be wrapped into a company called Ramada Investimentos, which will begin to trade separately on the Lisbon stock exchange in July.

Blast in Yemen steel plant injures 6 workers

State news agency Saba reported that 6 workers were injured after an explosion rocked a steel plant in the southern Yemeni port city of Aden at midnight on Thursday.

The agency said the explosion occurred in a steel mill furnace at the Bazaraa plant in Aden. It quoted a municipal source in Aden as saying that six injured workers were rushed to hospital and treated for burns. Three were discharged after receiving treatment, while three others remained in critical condition.

Police initiated an investigation to find out the cause of the blast, according to the agency.

The extent of the damage to the plant is not immediately clear.

Italian mills to slash production on scrap shortage

According to some sources in the industry, some Italian steelmakers now experienced hiking price and lacks of scraps so they have to trim down their production, especially in 2 or 3 weeks.

As most prices of raw material continue to climb, price of scrap now is expected to soar by another EUR 80 per tonne to EUR 100 per tonne in April.

Many electric arc furnaces in Italy need scrap for operations, which is mostly imported from France, Switzerland, Austria and Germany.

(Sourced from YIEH.com)

Simpson acquires assets of Liebig companies

Simpson Manufacturing Company announced that its newly formed subsidiary, Simpson Strong Tie Ireland Limited, has purchased certain assets of Irish’s Liebig International Ltd, Heinrich Liebig Stahldubelwerke GmbH, Liebig GmbH & Co KG and Liebig International Verwaltungsgesellschaft mbH, all German companies, Liebig Bolts Limited, an English company and Liebig International Inc a US Company.

The purchase price was USD 18.3 million in cash.

Liebig manufactures mechanical anchor products in Ireland and distributes them primarily throughout Europe through warehouses located in Germany and in the United Kingdom.

CMC receives supplier excellence award from Eaton

Commercial Metals Company announced that it’s National Accounts Group, part of the CMC Recycling division, received Eaton Corporation's Supplier Excellence Award. CMC was among 42 best suppliers who were honored with this award at Eaton's third Supplier Awards Program held on April 1 at the downtown Cleveland Marriott.

The award winners’ fall within one of three categories Direct, Indirect or Logistics and CMC's recognition was in the Corporate Indirect supplier category for its scrap metal management program.

Mr Richard D Holder VP of Eaton Business System said that "Of the thousands of Eaton suppliers around the world, these are the best in terms of quality, productivity, innovation and technology."

Mr Larry Olschwanger VP of CMC Recycling added that "We are honored to receive this recognition from Eaton, and I am proud of our team for their commitment to quality service and their dedication to continuous improvement. We have been associated with Eaton for a little more than one year and we are delighted that, in such a short period of time, they see the true value of our scrap management program."

Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety.

H1 scrap price in US on upward trend last week

The average price of H1 scrap in Pittsburgh, Chicago and Philadelphia on April 14th 2008 was at USD 502.50 per long ton, increasing by USD 3.33 per long ton form last week.

Price of bundle scrap was at USD 454.50 per long ton as the same as last week. The price in H1 scrap in Pittsburgh was at USD 499.50 per long ton; in Chicago was at 514.50 per long ton; in Philadelphia was at 493.50 per long ton.

In Eastern coast, the average price of H1 scrap in New York, Boston and Huston was at USD 475.83 per long ton. In western coast, the average price of H1 scrap in Los Angeles, San Francisco and Seattle was at USD 192.67 per long ton, the prices remained the same as the prices last week.

(Sourced from YIEH.com)

SSAB clarifies on the sale of the tubular business in North America

SSAB, which announced the sale of the tubular business of the IPSCO Division in North America on March 14th 2008 clarified that pending completion of the transaction in the second quarter of 2008 and the sold business will be reported as a discontinued operation in accordance with the international accounting standards.

The release said that “Accordingly, all revenue and expenses attributable to the tubular business in North America will be removed from the consolidated income statement and presented separately on a line as Profit after tax for discontinued operations.”

The release added that “Assets and liabilities attributable to the tubular business will be reported on separate lines in the balance sheet as holdings for sale. A separate income statement and balance sheet regarding the tubular business will be reported in a note. The transaction is assessed as not resulting in any capital gain or loss.”

US February steel shipments up by 9.9% YoY

The American Iron and Steel Institute reported that for the month of February 2008, US steel mills shipped 9.174 million net tons up by 9.9% YoY from the 8.350 million net tons shipped in February 2007 and a 0.8% MoM decrease from the 9.246 million net tons shipped in the of January 2008.

YoY comparison of YTD shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 8.2%
2. Automotive, up by 3.1%
3. Construction and contractors’ products up by 4.5%
4. Oil and gas up by 5.3%

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

Taiwanese exports of rebar and H beam up in March

It is reported that Taiwan exported 52,769 tonnes of steel rebar in March 2008 up by 31% MoM from 40,000 tonnes in February. Exports in the first three month amounted to 140,000 tonnes, increased sharply by 136% YoY.

Besides, Taiwan exported 29,122 tons of H beam in March, up by 18% MoM and the total export from January to March was at 117,000 tonnes, decreased by 26% MoM.

(Sourced from YIEH.com)

Reliance Steel Q1 sales up by 3.6% YoY

Reliance Steel & Aluminum Co announced its financial results for the first quarter ended March 2008. For the 2008 first quarter, net income was USD 107.4 million compared with net income of USD 111.7 million for the 2007 first quarter.

Its first quarter sales were a record USD 1.91 billion, an increase of 3.6% YoY as compared with 2007 first quarter sales of USD 1.84 billion. The 2008 first quarter financial results include in cost of sales a pre tax LIFO expense amount of USD 17.5 million as compared with a pre-tax LIFO expense amount of USD 18.8 million.

Mr David H Hannah chairman & CEO of Reliance said that “The 2008 first quarter turned out well. Pricing for our products was strong with significant increases in carbon steel, leading to improved gross profit margins. Demand in the markets that we serve remained fairly healthy, especially in the non residential construction, energy, oil and gas, and aerospace industries. Additionally, our cash flow from operations during the quarter was strong and we managed our working capital well.”

Mr Hannah stated that “As we look forward through the second quarter, we expect prices to be up or flat for most of the metals we sell. Demand remains more difficult to predict. We believe our customers will continue to be cautious in their buying, especially given the uncertainty in many areas of the economy and the mostly negative views of business activity portrayed by the media, therefore we do not expect any significant changes in demand in any of our market segments. We do expect continued improvement in our gross profit margins as carbon steel prices increase further during the second quarter. As a result, we currently estimate earnings per diluted share for the 2008 second quarter to be in a range of USD 1.50 to USD 1.60.”

Mr Hannah added that “On April 1st 2008, we acquired Dynamic Metals International, LLC based at Bristol in Connecticut. Dynamic was founded in 1999 and is a specialty metal distributor of primarily maraging steel. Dynamic’s 2007 revenues were approximately USD 11 million. Dynamic will operate as part of our subsidiary, Service Steel Aerospace Corp. headquartered in Tacoma. This strategic acquisition expands our existing Service Steel Aerospace specialty product offerings in a new market area.”

Reliance Steel & Aluminum Co is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United Kingdom, the Company provides value added metals processing services and distributes a full line of over 100,000 metal products.

Nucor net earning in Q1 of 2008 up by 8% YoY

Nucor Corporation announced record first quarter net earnings for the fifth consecutive year. Consolidated net earnings for the first quarter of 2008 were USD 409.8 million, an increase of 8% YoY compared to the first quarter of 2007 net earnings of USD 381.0 million and an increase of 12% QoQ from the fourth quarter of 2007 net earnings of USD 364.8 million.

Nucor's consolidated net sales increased 32% YoY to a record USD 4.97 billion compared with USD 3.77 billion in the first quarter of 2007 due to a 15% increase in average steel sales price per ton, an 11% increase in average steel products sales price per ton and a significant increase in steel products shipments attributable to acquisitions made in 2007. The increase in sales is also due to the February 29th 2008 acquisition of the stock of SHV North America Corporation, which owns 100% of The David J Joseph Company and its affiliates, for a cash purchase price of approximately USD 1.4 billion. DJJ, which now operates as a wholly owned subsidiary of Nucor Corporation, has been the broker of ferrous scrap to Nucor since 1969.

Consolidated net sales increased 13% QoQ over the fourth quarter of 2007 primarily due to an 8% increase in average steel sales price per ton and the acquisition of DJJ.

The average scrap and scrap substitute cost per ton used increased 29% YoY from USD 259 in the first quarter of 2007 to USD 333 in the first quarter of 2008 and increased 17% QoQ from USD 285 in the fourth quarter of 2007.

In the steel mills segment, steel production increased 4% YoY to 5,831,000 tons in the first quarter of 2008, compared with 5,585,000 tons produced in the first quarter of 2007 and increased 4% QoQ over the 5,586,000 tons produced in the fourth quarter of 2007.

Sandvik says buys Teeness ASA

Tool and specialty steel maker Sandvik announced that it has signed a deal to buy 92.55% of shares in Norway's Teeness ASA.

Sandvik said that it has agreed with the major shareholders of the Norwegian maker of anti vibration tools to pay SEK 197 per share in a deal worth around SEK 240 million (USD 40.8 million) in total.

Teeness had sales of about SEK 200 million last year and has some 105 employees.

Serbia halts A Tec copper smelter sale

Trend Capital reported that Serbia halted the sale of copper smelter RTB Bor to A Tec Industries AG after the Austrian company asked for more time to pay. The report added that in its decision, Serbia's privatization board also recommended that the government open talks with Mr Oleg Deripaska's company SMR, the runner up bidder for Bor.

Mr Mladjan Dinkic economy minister of Serbia said that “The privatization panel decided on this move because the Austrian company did not honor the conditions of the deal and asked for the deadlines to be postponed and that was unacceptable.” He also cited doubts that A Tec will have money for future investments. Serbia's cabinet is expected to make the final decision soon.

A-Tec has paid USD 150 million of a USD 466 million sale price agreed with Serbia's government in February. A Tec also pledged to invest USD 180 million dollars in the debt laden smelting and mining company.

A Tec in a statement said that it was deeply disappointed by Serbia's decision.

Taiwanese import of H beam in March surges

In March, Taiwan’s import of H beam amounted to 5,700 tonnes, made a big leap by 420% MoM and all the 5,700 tons of H beam were supplied by Japan at the price on average of TWD 22,270 per tonne.

(Sourced from YIEH.com)

ThyssenKrupp may close two elevator production sites

Thomson Financial reported that ThyssenKrupp AG is considering closing its elevator production plants at Valencia in Spain and Gratkorn in Austria.

A ThyssenKrupp AG spokeswoman, without providing full details, told Thomson Financial that she expects a final decision to be made on the plant closure at the end of May or in June.

Consortium planning 1 million tonne steel plant at Kalabagh

Daily Times reported that a consortium of eight local steel manufacturers has offered to develop iron ore deposits of Kalabagh in Pakistan and establish a steel mill having a capacity of 1 million tonnes per annum. The offer was made in a meeting of follow up committee on steel workshop held on January 25th 2008.

The consortium informed the participants that a Chinese company has expressed readiness to transfer technology related to extraction of mines at Kalabagh.

However, they said main hurdle in establishing a steel mill at Kalabagh is the provision of land on lease as well as the provision of roads, rails, gas, power and other infrastructure related facilities.

In order to resolve all such issues confronting steel sector, the consortium would meet in Lahore on 24th April. During the meeting they would sort out the issues pertaining to logistics like railways and leasing of mines. The Engineering Development Board was asked to take up the issue with the concerned authorities and present a progress report in the proposed meeting.

Steel price surge effecting construction activity in Pakistan

The Post reported that many contractors in Pakistan have halted work on their projects, citing increase in costs of construction, rise in prices of steel from PKR 47,000 per tonne to PKR 84 000, upward movement of cement prices thrice in 9 months.

The report cited Mr Noman Akbar, who booked a house in under construction housing scheme in a locality in Rawalpindi, as saying that his contractor had stopped work on house as he could not bear its costs any more. Mr Noman Akbar added that "Construction activity supports at least 50 other industries in Pakistan. How these industries will survive if there is no activity at all."

Many people attribute this unprecedented hike to previous government's lack of vision to foresee the coming boom while others term it as unlawful cartelization of manufacturers.

Experts believed the government should sit with various stakeholders to find out the modus operandi to address this problem. The said export of cement should be banned, abolition of sales tax and excise duty be announced immediately, controversial clauses from contractors agreement should be abolished.

Zamil Industrial takes 50% stake in Ranco Precast

Trade Arabia News Service reported that Zamil Industrial has signed a JV agreement with Rabiah & Nassar Group under which Zamil will acquire a 50% stake in Rabiah & Nassar Precast concrete factory based in Riyadh. The total investment value in this factory is SAR 117 million.

The facility designs, manufactures and erects precast concrete buildings used for various applications including residential, schools, shopping malls, plants, wall panels, and fabricates a variety of other concrete-based products. Precast concrete structures are known for their attractive designs, rapid assembly and low maintenance.

Dr Abdulrahman Al Zamil chairman of Zamil Industrial said that "Zamil Industrial board of directors’ decision to become a partner in this factory is part of the company’s strategy to expand its operations and deliver new products and solutions, in addition to its current offerings of innovative, high quality air conditioning systems, steel products, architectural glass products and fiberglass insulation products, as well as to invest in the building and construction sector."

Mr Abdulwahab S Al Nassar board director at Rabiah & Nassar Group said that "A primary objective of forming new partnerships is to expand our operations within and outside Saudi Arabia, as well as to establish new industries in the building materials arena that meet the increasing demand for these products in Saudi Arabia and the region. We have chosen Zamil Industrial as a new strategic partner because of its well known local and international reputation and its marketing, managerial and technical capabilities, which we believe that it will add a significant value to RANCO precast on the long run."

Zamil Industrial is also planning to construct 2 new factories to produce Hollocore and concrete panel systems and to expand its operations in new locations to become one of the biggest precast concrete factories in the region.

Oman National Aluminum plans OMR 4.1 million CAPEX

It is reported that the board of director of Oman National Aluminium Products Company has decided to expand installed capacity of the existing plant at Rusayl Industrial Estate.

The expansion will enhance capacity from 16,500 tonnes per annum by about 50%. Total investment in the project is estimated at OMR 4.1 million, which will be funded through bank loans and internal accruals. As per report, National Aluminum Products Company will not seek any additional equity infusion for this expansion.

The need for the expansion has been felt for quite sometime based on the excellent performance by the company in the last 2 years and the response from its customers to its product and services.

DGCX ties up with SHFE

Khaleej Times reported that Dubai Gold & Commodities Exchange has signed a strategic alliance with Shanghai Futures Exchange.

The partnership will facilitate deeper cooperation in areas such as product development, clearing and technology, adding a new dimension to the information and expertise that already exists in the UAE and China. The MoU signed by the 2 exchanges caps an initiative that began in 2007.

Mr Malcolm Wall Morris CEO of DGCX said that "The agreement with Shanghai Futures Exchange will open a new window of opportunities for market participants in both regions. It will also enable us to jointly pursue initiatives aimed at higher efficiencies and improved liquidity."

Mr Wang Li Hua chairperson of Shanghai Futures Exchange said that the pace of growth at DGCX and the breadth of its portfolio position it as a natural regional partner. He added that "We are pleased to partner with the Middle East's premier derivatives exchange. In addition to pioneering derivatives trade in the region, the exchange offers a choice of alternate investments to a region with liquidity."

Shanghai Futures Exchange zinc futures was listed on the exchange in March 2007 and quickly gained recognition by being awarded the most popular futures product in 2007 by Futures and Options World. The exchange also trades copper, which is now one of the world's largest contracts as well as futures in aluminum, natural rubber and fuel oil.

Emaar Q1 2008 profits steady at AED 1.6 billion

Dubai based Emaar Properties has recorded net profits of AED 1.655 billion in the first quarter of 2008, which is at similar levels to profits earned in the first and the last quarters of 2007. Driven by robust sales in its home market, Emaar’s revenues reached AED 3.961 billion in the first quarter of 2008. The revenue in this quarter is similar to the revenue achieved in the first quarter of 2007 of AED 3.969 billion in spite of significantly lower land sales in 2008.

The decline in revenue in the first quarter of 2008 as compared to the revenue of AED 5.141 billion in the fourth quarter of 2007 is due to decreased revenue from John Laing Homes by AED 1.2 billion, which is due to cyclical delivery pattern at the US subsidiary. The fourth quarter of 2007 also included income from land sales from the company's associates in Morocco and India.

Mr Mohamed Ali Alabbar chairman of Emaar Properties said that "Despite operating in an extremely challenging global economic environment, Emaar Properties continued to add value to our stakeholders through our focus on geographic expansion and business segmentation. Emaar’s farsighted approach of investing in dynamic emerging markets and our ongoing commitment to creating trend setting neighborhoods in Dubai were among the prime drivers of our value creation for our shareholders."

Mr Alabbar explained that "Downtown Burj Dubai, our AED 73 billion flagship project, has evolved to become the region’s most compelling new lifestyle destination. Three hotels and a shopping mall complement the thriving residential communities in this new neighborhood, which is anchored by Burj Dubai, already the world’s tallest structure. The Dubai Mall, one of the world’s largest shopping and entertainment destinations, continues to prove a magnet for global investors, and is scheduled for opening on August 28th 2008."

Emaar has strengthened its global operations with the signing of strategic partnerships earlier this year. Emaar became one of the first property developers from the region to expand into China by signing a JV agreement with Shanghai China News Enterprise Development Limited. The JV was announced during Mr Sheikh Mohammed’s recent visit to China.

Sanctions have no effect on Iran's economy – VP

IRNA quoted Mr Parviz Davoudi vice president of Iran as saying that sanctions imposed on Iran for its peaceful nuclear activities have no effect on the country's economy but rather led to further foreign investments.

Mr Davoudi made the remarks during his address to the opening ceremony of the 13th International Oil, Gas & Petrochemical Exhibition. The 5 day exhibition is attended by 860 domestic and over 500 active foreign oil companies from 30 countries. It aims at attracting foreign investments among other objectives.

Mr Davoudi said that the anti Iran sanctions had advert effects on the country's economy as many of the international companies and businessmen have expressed readiness to work and make investments in Iran. He stressed that Iran's oil industry has made a great progress resulting from government's protective policies.

The 13th Exhibition of Oil, Gas & Petrochemical products was inaugurated by oil minister Mr Gholam Hossein Nozari. The main objectives of the exhibition include attracting foreign investments, introducing final products, increasing market share, studying marketing, identifying opportunities for joint ventures and holding meetings with final consumers of products as well as current purchasers. Representatives and companies from 30 world countries including, Belgium, China, France, Germany, Austria, Italy, Russia, Romania, South Korea, Spain, the UAE, Poland, Holland, Qatar, Switzerland, Turkey, Bahrain, Britain, Japan, Belarus, Finland, Ukraine, India, Sweden, Norway, Denmark, Greece, Canada, Australia and the US have attended the exhibition.

Al Zour refinery cost blowout flagged at USD 5 billion

Gulf Daily News reported that Kuwait's energy giant new Al Zour refinery could cost as much as USD 19 billion, USD 5 billion more than previously budgeted, as it considers adding more units to the plant. Rapidly rising costs in the energy industry have hit projects worldwide and already delayed the start up date for the 615,000 barrels per day Kuwait refinery by more than a year.

An official at Kuwait National Petroleum Company said that "There is an intention to raise the budget to add more process units, it is under consideration."

Al Zour is planned as a relatively simple plant as Kuwait needs to produce more fuel oil to burn for power generation. Elsewhere, new refinery plans typically include more complex units to produce more transport fuels and reduce fuel oil output. Kuwait plans to produce low sulphur fuel oil to limit the impact on the environment. The cost of building the desulphurization units has played a part in driving up the refinery budget.

Industry sources said that Kuwait Petroleum Corporation will work to raise the approved budget for the plant to USD 19 billion from USD 14 billion. Kuwait had already doubled the budget to USD 14 billion from its initial cost estimate.

Dolphin Ras Laffan gas plant to be inaugurated on May 12th 2008

Doha Times reported that Dolphin Energy’s gas processing plant at Ras Laffan will be inaugurated on May 12th 2008.

Dolphin Energy’s major strategic initiative Dolphin Project involves the production and processing of natural gas from the North Field and the transportation of dry gas by sub sea export pipeline from Qatar to the UAE.

Dolphin sources gas from Qatar under an agreement with Qatar Petroleum. Dolphin Energy recently crossed a major milestone by achieving for the first time targeted daily production of 2 billion standard cubic feet of gas a day.

Dolphin’s initial supplies of processed natural gas from Qatar to the UAE began to flow in July 2007. Since then, Dolphin Energy has been transporting gas through the company’s export pipeline in ever increasing quantities. The gas is produced from Dolphin’s 24 production wells offshore Qatar. It is then processed at the Ras Laffan plant and the natural gas compressed and flowed through the 48 inch, 364 kilometer long sub sea export pipeline.

Dolphin Energy Limited is created to develop substantial energy projects throughout the GCC and to create long-term economic wealth and new business opportunities for Gulf nationals, far into the future.

Saudi non oil trade in 2007 up by 22% YoY

Saudi Press Agency reported that Saudi Arabia's non oil trade grew up by 22% YoY SAR 104.46 billion in 2007 as compared to SAR 85.52 billion in 2006. The export volume rose by 12% YoY 39,693 tonnes in 2007 as compared to 35,286 tonnes in 2006.

The major exported commodities by Saudi Arabia in 2007 were petrochemicals, plastics, base and manufactured metals and re export commodities. The largest recipients of Saudi exports included the UAE, China, Kuwait and Qatar, respectively.

The Department of General Statistics & Information said that the total value of imports increased by 29% YoY to SAR 338.08 billion in 2007. The imports volume rose by 7% YoY to 50,181 tonnes in 2007. The main commodities imported were electrical machines, equipment and tools, transport machines, base and manufactured metals and foodstuff.

MEA crude exports to double by 2030 – Report

Emirates Business 24-7 reported that Middle East crude exports are set to double by 2030, with gas sales predicted to increase by more than 6 times.

Mr Noe van Hulst secretary general of international energy forum said that total oil exports from the region are predicted to surge from around 18 million barrels per day in 2005, to more than 36 million barrels per day in 2030.

According to Mr Hulst, Middle East currently supplies around 22% of the world’s crude oil, with its share expected to increase to more than 30%. Transition economies, including Russia, are expected to increase exports from around 8 million barrels per day in 2005 to 12 million barrels per day in 2030, while African exports are likely to grow by 1 million to 9 million barrels per day.

Middle East gas exports are expected to soar from 50 billion cubic meters in 2005, to nearly 300bn cubic meters in 2030.

Iran to invest in expansion of Sri Lankan oil refinery

Mr AHM Fowzi Sri Lankan oil minister, in his interview with Kyodo news agency, said that Iran has decided to increase its investment in expansion project of an oil refinery in Sri Lanka by up to USD 1 billion.

Mr Fowzi added that "Iran's President Mr Mahmoud Ahmadinejad has allocated this amount to the purpose, which would cover 70% of the require investment for the refinery's expansion, in form of a 10 year loan, with a 5 year exemption period from payment of the loan's installments."

According to Kyodo's report, Mr Ashanta Domel MD of Ceylon Petroleum Corporation has said that the pilot study for increasing the production of Sri Lanka's only refinery from 50,000 to 100,000 barrels per day has been completed by Iranian oil engineers. He added that "Iran would make the major part of the required investment for expansion of this oil refinery with 70% and the CPC would cover the rest or 30%."

Oil experts predict that Sri Lanka's oil refinery would increase its production after the Iranian oil engineers would end their work here within the next 2 to 3 years.

Update on Chinese steel industry related output in Q1 of 2008

National Bureau of Statistics of China announced that the China crude steel output in March up by 12% YoY to 44.87 million tonnes, pushing total output in the first quarter to 124.94 million tonnes up by 8.6% YoY from the same period of last year.

In million tonnes

(Sourced from MySteel.net)

Angang targeting 18 million tonnes crude steel in 2008

It is reported that Shenzhen Stock listed Anshan Steel Company plans to produce 18 million tonnes of crude steel and 17 million tonnes of finished products in 2008.

Angang's 5 million tonnes per year Bayuquan project would commence production in the second half of this year. Angang's investment spend on Bayuquan is CNY 5.1 billion for 2006, CNY 12 billion this year and CNY 4.6 billion in 2008. It would put another 2 million tonnes per year steel complex into production in August of 2009.

A company official said that the purchase cost of iron ore has reached CNY 790 per tonne in first quarter and the price is set to rise further in the second half and the coking coal price is likely to gain some CNY 100 per tonne to CNY 200 per tonne in Q2 in addition to CNY 880 per tonne in previous quarter.

Mr Tang Fupin general manager of the listed arm said the company has bought 75% iron ore from the parent company and 25% from foreign suppliers mostly under long term contract, which has enabled them to put a cap on ore imports price. However, Angang intends to trim down the export ratio this year since the gross margin of steel exports is 3% less than domestic sales.

(Sourced from MySteel.net)

Magang new HDG comes on stream

It is reported that Magang new area 2130mm cold rolling hot dip galvanizing lines, one of its keynote projects of technical innovation and restructuring, were sent into operation April 11th 2008 by signing the final acceptance certificate with the foreign suppliers of key technology and facilities.

Signing of the final acceptance certificate marked success of the debugging of the 2130 lines and overall beginning of operations.

As per report the hot dip galvanizing lines, will get the pickled steels treated through annealing, galvanizing, passivating and fingerprint resisting, with finished products targeting the high end home appliance and auto steel industries.

Angang to raise Q2 prices by over 10%

It is reported that Angang Steel, one of the mainland's major steelmakers, expects to increase its product prices by more than 10% in the second quarter to offset the surge in raw material costs.

Mr Fu Jihui a director and company secretary at Angang Steel said "We can handle the increased costs by raising product prices.”

He added the average price of its products, mainly iron and steel, had been raised by 11% in the first quarter in addition to an increase of more than 10% this quarter.

Mr Fu said material costs remained high in the first quarter and expect coking coal prices to surge further in the second half, but iron ore will stabilize, adding that the coking coal price has soared to CNY 880 per ton in the first quarter from CNY 710 last year.”

Angang earned CNY 7.5 billion last year up by 6.2% YoY increase over 2006. Total sales for 2007 gained 20% to reach CNY 65.3 billion. However, the gross margin declined to 22% last year from 23% in 2006 because of rising costs.

Benxi Steel releases May prices

It is reported that Liaoning based Benxi Steel has hammered out its May prices based on prices released on March 17th 2008:

HR price unchanged
SPHC price up by CNY 100 per tonne
Latest EXW price stands at CNY 4900 per tonne for Q235 3.0mm HRC and CNY 4650 per tonne for Q235 5.5*1500mm HRC.

CR price unchanged
Q195 1.0mm*1250 case sheet is quoted at CNY 5670 per tonne 1.0mm CR coil price at CNY 5600 per tonne.

GI: unchanged for products produced by No 1 Mill and No 2 Mill.
ST01Z1.0mm*1250 galvanized coil is now offered at CNY 5850 per tonne.

PPGI price unchanged
Price for TDC51D 0.47mm*1250 color coated steel is posted at CNY 7100 per tonne.

Prices listed above are exclusive of 17% VAT effective as of April 16th 2008.

(Sourced from MySteel.net)

Tangshan 2007 net profit up by 50.9% YoY

XFN-Asia reported that Tangshan Iron & Steel Co Ltd posted a net profit of CNY 2.14 billion in 2007 up by 50.9% YoY on the back of reduced operating costs.

Tangshan booked operating revenues of CNY 41.79 billion last year up by 38.5% YoY from a year earlier. Earnings per share stood at CNY 0.95 up from CNY 0.63 a year earlier.

Tangshan produced 9.35 million tonnes of iron last year up by 1.43% YoY while steel output rose 7.35% YoY to 10.84 million tonnes and steel products output grew by 18.77% YoY to 10.41 million tonnes.

Tangshan said it faces challenges from rising raw materials costs and the government's monetary tightening policies. It target 12.3 million tonnes of iron 12.4 million tonnes of steel and 10.94 million tonnes of steel products in 2008.

Hengyang Steel Tube undertakes successful trial

It is reported that Hunan Hengyang Valin Steel Pipe Group’s 108 technological transformation project HR line successfully completed thermal load trial run recently.

It can produce 51mm to 219mm outside pathway, 8mm to 50mm wall thickness steel pipe and the output can reach 180,000 tonnes.

As per report, this HR production line was undertaken by BERIS Engineering and Research Corporation. The total time limit for this project is 11 months.

Codelco to reinforce relationship with Chinese firms

Interfax China reported that Chilean-based Corporacion Nacional del Cobre, the world largest copper producer, will strengthen its relationship with longtime partner China Minmetals Corp and will also seek to supply other Chinese companies with mining equipment

Mr Jose Pablo M Arellano president & CEO of Codelco said on the sidelines of the “Chile, a Strategic Partner in Latin America" seminar held in Shanghai that "Codelco opened a new office in Shanghai this year to carry out business promotion in China. We look to strengthen relations with existing Chinese partners like Minmetals over copper trade, and are willing to explore new areas of development with future new partners on exporting mining equipment to Chile."

Mr Arellano said however, the company has no plans so far to team up with local partners on mining projects in China. When questioned as to whether Codelco will sign a contract with Minmetals to sell the Gabriela Mistrel Copper Mine he said "We do not have a timetable for selling the Gaby Mine."

The Chilean Copper Workers' Union said last week that they will resort to industrial action if state owned Coldeco sells the mine.

China adds 1.21 billion tonnes of oil reserves in 2007

XFN-Asia cited China Ministry of Land and Resources said in a report that China added 1.21 billion tonnes of oil reserves and 697.4 billion cubic meters of gas reserves in 2007. The ministry did not specify whether the reserves are in the proven or recoverable category.

In 2006 China's new proven reserves of crude were at 949 million tonnes with new proven natural gas reserves at 581.6 billion cubic meters.

As per report new oil finds last year involving reserves of at least 100 million tonnes included Jidong Nanpu, Daqing Gulong and Changqing Jiyuan fields, which are run by PetroChina. Newly discovered natural gas deposits of at least 30 billion cubic meters include Jilin Changling, Changqing Shenmu, Sichuan Guangan, Tarim Dabei and Beifang Songnan fields, which are run by either PetroChina or Sinopec.

The ministry said China also added coal reserves of 40.63 billion tonnes in 2007.

China's industrial output in Q1 2008 up by 16.4% YoY

China’s National Bureau of Statistics announced that China's industrial production rose 16.4% YoY in the first quarter of 2008. The increase was 1.9 percentage points lower than that in the same period of 2007, said the

CNPC signs Tarim gas production deal with Shengye

China National Petroleum Corp, the parent of PetroChina said that it has signed a production sharing contract with Hong Kong's Shengye Petroleum Group covering a gas block in the Tarim basin in northwestern China's Xinjiang region.

It said Shengye will act as operator of the Dina Block 1 during the evaluation and exploration period and the two companies will share any commercial discoveries in the block.

CNPC did not disclose stake arrangements for the block's commercial operations.

Turkey cancels AD duty on Ukrainian steel

Ukraine’s economy ministry last week told Interfax Ukraine that Turkey has canceled anti dumping measures on imports of Ukrainian semi finished iron and steel products, which have been in effect since 1995.

A representative of the ministry said that first there had been an anti dumping duty of USD 17 per tonne, after a review of the duties USD 4 per tonne and from March 20th 2008, it was canceled.

Update on MMK 5,000 mm plate mill construction

MMK announced that the company has been visited by delegations of SMS Demag of Germany and WISDRI of China for reviewing the status of the 5,000 mm Plate Mill.

The released added that the guests accompanied by Mr Valentin Antoniuk Director for Construction of MMK’s visited the site of the future mill and witnessed the activities of over a thousand construction men working there who have by now completed 95% of all foundation work and mounted 19,000 tonnes of steel structures out of a total of 32,000 tonnes. Roofing work has started.

Mr Dieter Rosenthal Vice President of SMS Demag said “Each visit here brings new experience. The scale of the project is immense. Today we have seen a serious progress in the mounting of steel structures. What has already been done is very impressive. But we have still a long way to go before this ambitious project materializes.”

The meeting was attended by Mr Guennadi Senichev VP of the MMK Managing Company for Operations, Mr Vladimir Shmakov VP of the MMK Managing Company for Finance and Economics, and the Company’s Chief Rolling Engineer Mr Alexander Titov. The meeting discussed general issues related to the progress of the design engineering, time frame for the start of equipment installation, and the overall schedule of the project’s completion.

The contract for the delivery of equipment for the 5,000 mm Plate Mill was signed with SMS Demag in November of 2006, with the commissioning scheduled for mid 2009. The Chinese company WISDRI is in charge of the project’s part related to water treatment and electric power supply.

RUSAL expects to close Norilsk deal next week

Reuters reported that Aluminum firm United Company RUSAL expects to close a deal to buy into rival Russian metals firm Norilsk Nickel by the end of next week.

The source told reporters on condition of anonymity "The first tranche of the money has already been transferred. The next tranche will be transferred shortly. We expect to close the deal before the end of next week."

An Onexim spokesman said Prokhorov's investment vehicle Onexim Group declined to comment. "We are acting within the framework of the existing agreement with UC RUSAL."

UC RUSAL, the world's largest aluminum producer has not disclosed how much it will pay for the stake. Payment will not be in cash alone, since as part of the deal, Prokhorov will take an 11% stake in UC RUSAL through his investment group Onexim.

UC RUSAL, controlled by Mr Oleg Deripaska billionaire has agreed to buy 25% plus one share in Norilsk from another Mr Mikhail Prokhorov Russian tycoon in a deal that may eventually pave the way for a full blown merger of the miners.

UC RUSAL has agreed a USD 4.5 billion, two year syndicated loan with a group of international banks to support the acquisition.

Update on large dia pipe mill at TMK’s Volzhsky Pipe Plant

TMK announced that the installation of a new large diameter longitudinal welded pipe mill is underway at its Volzhsky subsidiary. Commissioning of Volzhsky’s large diameter welded pipe capacity will amount to 1.2 million tonnes per annum.

TMK contracted HAEUSLER AG of Switzerland, one of the world’s biggest producers of welded pipe production equipment, to supply the new pipe mill for the production of large-diameter longitudinal welded pipes. The mill will include bending, welding, and finishing stations. Azovinteks Design and Construction LLC will install the equipment and production of large-diameter longitudinal welded pipes is expected to start in Q3 2008.

The pipe mill will utilize Haeusler’s leading edge roll bending technology as it ensures high productivity and high quality production characteristics.

The released added that the new 650,000 tonne mill will produce longitudinal welded pipes of X80 grade with diameters ranging from 530mm to 1420mm and wall thickness of up to 42mm. Interior smooth coating and exterior anticorrosion coating capacities will be added to this mill.
These pipes are used in long distance oil and gas pipelines including offshore pipelines, oil field pipelines, general purpose pipelines, and in the construction of heating systems and nuclear power stations.

TMK successfully implements SAP ERP

TMK announced that it has successfully completed the implementation of an SAP ERP based corporate information system at its Russian mills and proceeded to its industrial use. The system is implemented at Volzhsky, Seversky, Sinarsky and TAGMET mills by SAP CIS.

The release said that “The implementation of the SAP ERP based corporate information system will allow TMK to control and manage, in real time, its sales, production, supplies, finances, accounting and human resources. TMK customers will benefit from increased production quality, a unified billing platform, and real-time order and shipment tracking.”

Mr Konstantin Semerikov CEO of TMK’s said “The implementation of our corporate information system was designed to consolidate and streamline the company’s strategies and operations, putting the company one step ahead of its peers. Moreover, we believe that facilitating cooperation and communication within the group will greatly benefit our customers and suppliers.”

Mr Iovan Maryanovich CEO of SAP CIS said “We hope that this SAP implementation, which is based on global corporate experience and production efficiency standards, will further enhance TMK’s competitiveness by giving it unique production advantages. He also commented on the execution of the project, paying special attention to the implementation schedule and quality.”

The implementation of the SAP ERP based corporate information system, given its scope and complexity, was undertaken in different stages. On January 1st 2006, the SAP ERP system was launched at Volzhsky Pipe Plant and integrated the operations and production areas. Seven integrated modules sales, production, supplies, accounting, finance, automation, and human resources were consolidated in one system. For the first time in the Russian metallurgical sector, a just in time production environment was established. Earlier this year “Maintenance and Equipment Repair” and “Project Management” functionalities were added to Volzhsky’s corporate information system. The second stage consisted of implementing the system at the group’s other facilities. From January 1st 2008 all of TMK’s Russian mills have been integrated in the ERP system industrial use.

Mechel offer for Oriel Resources become unconditional

Mechel announced the following update in relation to the recommended cash offer made by Mechel for the entire issued and to be issued ordinary share capital of Oriel by means of an Offer Document dated March 26th 2008.

Its release said that “The board of Mechel is pleased to announce that all the conditions of the offer have now been satisfied or waived and that, accordingly, the offer is today declared unconditional in all respects.”

Evraz Group declares 2007 final dividend

Evraz Group has announces that its board of directors has recommended that the annual general meeting of shareholders to be held on May 15th 2008, approve a final dividend of USD 4.20 per common share, or USD 1.40 per GDR in respect of the year ended December 31, 2007, payable to shareholders on the share register record date of May 14th 2008.

The release added that “When added to the interim dividend this will make a total dividend for the year of USD 9.00 per common share, or USD 3.00 per GDR.”

Russia and Libya to set up joint oil and gas venture

RIA Novosti reported that Russia's state natural gas giant Gazprom and the National Oil Corporation of Libya have agreed to set up a joint venture. The deal came during Mr Vladimir Putin's president of Russia visit to the North African country where he met with Libyan leader Colonel Mr Muammar Qaddafi.

Mr Alexei Miller CEO of Gazprom said the new joint venture will operate in literally all areas of cooperation in the oil and gas sector, on all parts of the chain from geological prospecting to production, transportation and sales, both in gas and oil.

He also said Gazprom is interested in joint liquefied natural gas projects with Libya, as well as taking part in the construction of a gas pipeline from Libya to Italy and operations in other North African markets.

Ukraine accepts responsibility for European gas shortfalls

Kazinform reported that Ukraine is prepared to bear responsibility for a possible shortfall in Russian natural gas supplies transited to Europe.

Ms Yulia Tymoshenko PM of Ukraine while speaking at the spring session of the Parliamentary Assembly of the Council of Europe said "Ukraine is prepared to take on that responsibility, with all that it implies."

Ukraine, which transits about 80% of Russia's Europe-bound gas, threatened to start tapping fuel when Russia halved shipments to the country amid a dispute over Kiev's gas debt and supply scheme earlier this year.

European consumers did not report any shortfall in supplies this year, unlike at the start of 2006, when a bitter pricing row led Moscow to briefly cut off deliveries to Ukraine.

Gazprom eying Sahara pipeline venture - CEO

Reuter reported that Russian gas monopoly Gazprom is holding preliminary talks with Nigeria about participating in a multibillion dollar project to pipe Nigerian gas to Europe across the Sahara.

Mr Alexei Miller CEO of Gazprom while speaking to reporters on a visit to Libya with Mr Vladimir Putin president of Russia said the Russian company's expertise in big projects potentially made the ambitious venture a natural fit.

He said "We have an interest in this project. Gazprom, by its technical capability is the No 1 company in the world. Such big projects naturally interest us. We are holding preliminary consultations with our Nigerian partners."

The report said that the Saharan project, with capital costs estimated at USD 10 billion for the pipeline and USD 3 billion for the gathering centers, would send up to 30 billion cubic metes a year of gas to Europe through a 4,128 kilometer pipeline from Nigeria, through Niger and Algeria starting in 2015.

The project is looking for support from European governments and gas consumers, which are concerned about falling domestic supplies and increasing reliance on gas piped in from Russia. Mr Andris Piebalgs European Union Energy Commissioner has welcomed the venture as being in the interests of European energy security and the environment and of Africa's development. He has also said the EU might help in financing it.

Oil could be pumped via Odesa-Brody pipeline this year

Interfax cited Mr Bohdan Sokolovskiy the Ukrainian presidential commissioner for international energy security issues as saying that Ukraine could start pumping Caspian oil from the Black Sea coast to Slovakia via the Odessa Brody oil pipeline as early as this year.

Mr Sokolovskiy told foreign ambassadors accredited in Ukraine recently that "Very little remains to be done some trifles before we show to the whole of Europe and to the world that we can in practice pump from 7 million to 9 million tonnes of oil this year via the Odessa Brody-Slovakia-Czech Republic pipeline."

Mr Sokolovskiy also said that Ukrtransnafta, the operator of the Ukrainian oil pipeline system, had signed a deal with Transpetrol to pump oil for Ceska Refinerska as which comprises two oil refineries in Kralupy and Litvinov with a total handling capacity of 8 million tonnes of oil.

He said the Czech oil pipeline operator MERO CR as has confirmed it's readiness to transport Caspian oil to the Kralupy and Litvinov oil refineries.

OMK Trubodetal reports its operating results for Q1 2008

Trubodetal part of United Metallurgical Company has reported its operating results for March and the first quarter of 2008.

Trubodetal manufactured 5,461.8 tonnes of products in the first quarter. Therefore, the planned figure was surpassed by 27.3%, or 1,172 tonnes. Output was up by 97.6% YoY compared with the first quarter of 2007 and 275.7% compared with the first quarter of 2006.

In the first quarter of 2008, Trubodetal produced 1,091.2 tonnes of pipe bends manufactured using high frequency currents. This was a 1.1% increase over the planned target. The plant produced 2,779.2 tonnes of pipe fittings in accordance with the specifications, or 44.8% more than planned. Insulation was applied to 8,477.2 square meters of products, which is 34.1% than the planned figure. Trubodetal produced 1,591.4 tonnes of pipe fittings in accordance with the GOST requirements.

The plant manufactured 1,851.5 tonnes of products in March 2008, which surpasses the planned targets by 8.4%. This is 88.6% more than the March 2007 figures.

Gazprom to take over Serbian soil firm after election

RIA Novosti reported that Gazprom will close a deal to buy a controlling stake in Serbia's oil company Naftna Industrija Srbije after the May 10 parliamentary election in the Balkan state.

Gazprom Neft, the main oil producing arm of Gazprom signed a deal on the purchase of a 51% stake in Serbia's state owned oil monopoly during talks between Mr Vladimir Putin president of Russia and his Serbian counterpart Mr Boris Tadic in Moscow on January 25.

Mr Alexei Miller told reporters in Libya's capital, where he is staying as part of the Russian business delegation during Putin's visit to the North African country that "The agreement must be ratified. This is just a technical issue."

Gazprom reportedly offered USD 580 million for a 51% stake in NIS, which produces about a million metric tons of crude annually, refines 7 million metric tons and has Serbia's largest network of filling stations.

Centric Alloys inks agreement with ArcelorMittal in NA

Centric Alloys Corporation and ArcelorMittal Stainless & Nickel Alloys have announced a new partnership for North America. Centric Alloys will be the US sales and distribution channel for the nickel alloy bar and wire rod products supplied to the North American market.

Under the terms of the agreement, Centric Alloys will provide a full complement of sales, multi location distribution, technical assistance, and other valued services to distinguished customers in the North American market.

Mr Guy Virrion VP sales & marketing for ArcelorMittal Stainless & Nickel Alloys said that "The unique experience and knowledge of a team dedicated to nickel alloys is a key for us. Their core management group brings forth the depth, experience and vision we’re looking for to ensure that the ArcelorMittal product is positioned as the leading brand in Nickel Alloy long products."

Mr Michael Walsh president of Centric Alloys said that "We are extremely pleased to be a partner of ArcelorMittal in such an important marketplace. Together, we are certain that the customer will benefit by virtue of this partnership."

Based in Doylestown, Centric Alloys sells and distributes specialty alloys, stainless steels and aluminum products.

IMFA posts record ferrochrome production fir 2007-08

Kalinga Times reported that ferroalloy major Indian Metals & Ferro Alloys Ltd has recorded a 31% increase in ferrochrome output for the year 2007-08 at 169,947 tonnes as against 129,848 tonnes in 2006-07.

Its chrome ore output mined entirely for captive use increased by nearly 30% YoY to 418,524 tonnes while power generation stood at 785 million units. IMFA exported a record 116,357 tonnes of ferrochrome during 2007-08up by 27% YoY.

It said that "This was the outcome of a concerted strategy to increase ferrochrome output as a result of which ferrosilicon production declined to 16,104 tonnes as against 30,624 tonnes in 2006-07.”

Mr Subhrakant Panda MD of IMFA said "We have strived hard during the recently concluded financial year to capitalize on our unique strength of being India's only fully integrated producer of value added ferrochrome. The record output coincides with a bullish outlook for the alloy on the back of strong demand from the stainless steel industry."

Types of corrosion in stainless steel

Perth based Stirlings Australia Global Metals Distributor, a stockist distributor of stainless steel long, flat and fluid products and facilitator of value added services, announced that stainless steels are not indestructible materials but nor immune to all corrosive attack.

It said that the family of stainless steels is excellent combatants of corrosion and provides a wide choice of materials which, with careful selection and proper fabrication, enable the manufacture of cost effective critical components to meet the diverse needs of many industry sectors.

The more common forms of corrosion which affect all metals and alloys, including stainless steel are briefly outlined.

General Corrosion of Stainless Steels
General corrosion is a uniform attack of the entire metal surface. It is the least dangerous because rates of corrosion can be measured and predicted. Stainless steel has very low general corrosion rates in many aggressive environments.

Galvanic Corrosion of Stainless Steels
Galvanic corrosion occurs when two different metals are in electrical contact and immersed in the same corrosive solution. Stainless steels are noble metals and therefore seldom suffer increased corrosion rates as a result of galvanic corrosion.

Erosion Corrosion of Stainless Steels
Erosion or abrasion corrosion is a combination of mechanical and corrosive attack. Abrasive particles in suspension, or high velocities, expose fresh metal surfaces which then suffer high rates of corrosion. Stainless steels offer a high resistance due to the tenacious and stable passive film on their surface.

Intergranular Corrosion of Stainless Steels
Intergranular corrosion is due to the formation of chromium carbides at high temperatures between 450°C and 859°C.These form preferentially at the grain boundaries thus reducing the chromium content and resulting in a path of lower corrosion resistance around the grains. With correct choice of material and care during fabrication this form of corrosion should not occur.

Pitting Corrosion of Stainless Steels
Pitting corrosion is a dangerous, very localized form of corrosion which results in small holes or perforations through the material, but with little measurable general metal loss. Some corrosive environments have the ability to attack localized weak points in the passive film. Due care in the selection of material should be taken if aggressive ions are present, especially in acidic solutions at elevated temperatures. If conditions which promote pitting corrosion cannot be modified, materials with higher alloy content such as the duplex stainless steels and the stainless alloys will often give a solution to the problem.

Crevice or Shielded Corrosion of Stainless Steels
Crevice or shielded corrosion occurs where the surface of stainless steel is shielded or occluded thus preventing the free access and availability of oxygen to the surface. The passive film therefore tends to break down in these areas. Any conditions which give rise to a crevice should be avoided.

Microbiologically Induced Corrosion of Stainless Steels
MIC results from the attraction and adherence of bacteria to the surface of the metal. A condition similar to a crevice is thereby produced. Certain bacteria produce aggressive metabolic products which aggravate the situation.

Stress Corrosion Cracking of Stainless Steels
Both pitting and crevice corrosion can lead to SCC under certain conditions. Stress corrosion cracking is a brittle fracture occurring in an otherwise ductile material. The austenitic crystal structure is prone to SCC whereas the ferritic crystal structure prevents its development.

SAIL RDCIS steel develops special steel for warships

The Telegraph reported that Steel Authority of India Limited’s Research & Development wing has developed a special type of steel to be used in the construction of submarines and ships for the Indian Navy.

As per report, the Research & Development Centre for Iron and Steel is calling the material bulb bar. It would be used to reinforce the hull of ships and submarines used by the navy. The material reportedly gives better durability to the marine vehicle even in the most adverse environmental conditions.

Mr Jagdish Singh ED in charge of Research & Development Centre for Iron and Steel said that "India has been importing this special steel mainly from Russia to meet the navy’s requirements. Bulb bar developed by RDCIS would act as a substitute and thereby help save precious foreign exchange."

Mr Singh said that RDCIS and SAIL steel plants have developed special types of steel for aircraft carriers and bulletproof armors required by the defense services. He added that RDCIS had risen to the occasion in the past and is confident to of meeting all challenges in the future also.

RDCIS provided the required technical inputs to develop the steel. Due to the critical profile, the special billet was manufactured by Alloy Steel Plant, Durgapur, while the rolling was done at the IISCO plant in Burnpur.

Jinduicheng Molybdenum rises 24% in Shanghai debut

It is reported that shares in China's Jinduicheng Molybdenum rose 24% in their Shanghai debut after Asia's top molybdenum producer raised CNY 8.9 billion as investors were lured by strong prospects for demand for the metal.

Jinduicheng issued 538 million shares, or 20% of its expanded capital. The listing came in the wake of heavy losses in China's stock market due to worries over monetary tightening, excessive supply of new shares and the US economic outlook.

Prices of Molybdenum, used to toughen alloy steel and as a catalyst for chemical production and oil refining, are around USD 33 a pound in London MLY-OXIDE-LON, more than 10 times levels seen between 1999 and 2001.

Some analysts have warned, however, about the cyclical nature of Jinduicheng's business which is tied to the automotive, shipbuilding and property sectors. The company produces 7% of the world's molybdenum.

Shares of Hong Kong listed China Molybdenum Co another major Chinese producer of the metal have tumbled nearly 50% since the start of the year compared with a nearly 15% drop in Hong Kong's benchmark Hang Seng Index.

Baosteel develops titanium alloy steel for large aircrafts

It is reported that China's top steelmaker Baosteel has successfully developed structural titanium alloy steel and undercarriage steel to be used by large size airplanes on the countdown of setting up of a state company of this type of aircraft.

As per report, since launch of the large size airplane construction project last year, Baosteel has exerted its full advantage in developing special aircraft quality steel and finally tapped 300M super high strength steel and structural titanium alloy steels of four specs.

Large size airplane refers to 100 tonnes or above airplane for military or civil uses or airliners with more than 150 seats. It uses some 100 tonnes alloys and its undercarriage 15 tonnes special high strength steel.

A well informed source disclosed the state company of large size airplane is to set up in Shanghai before May 1st 2008. Aside from the State owned asset supervision and administration commission, Shanghai municipal government etc, Baosteel group will plunge some CNY 1 billion to take 5% stake in it.

Mr Goddard to assume as executive chairman of Hardide Plc

Hardide Plc recently announced that its current CEO Mr Jim Murray Smith has resigned and that chairman Mr Robert Goddard will assume the role of executive chairman until a suitable replacement for Mr Smith is found.

Hardide Plc, which makes specialist coatings for steel and alloy components, said it has begun the process of identifying suitable candidates for a full time chief executive role. It said that it is continuing to review its financial outlook with regard to the suspension of its shares.

On April 1st 2008, Hardide had requested suspension in trading of its shares on AIM pending investigations into a corporate government issue.

EnduraMet 32 stainless rebars available

It is reported that EnduraMet 32 stainless, a new grade of high quality, low nickel reinforcing bar is now available as a lower cost alternative to stainless Alloy 2205 and AISI 316LN.

EnduraMet 32 stainless is a high manganese, low nickel, nitrogen strengthened austenitic stainless steel that provides a significantly higher tensile strength than conventional austenitic stainless steels such as Type 304 and Type 316 without adversely affecting ductility, corrosion resistance or magnetic properties. In the hot rolled condition, yield strengths of 75 ksi or higher can be achieved for bar diameters up to 2 inches.

EnduraMet 32 stainless can be considered for bridge decks and parapets, barrier and retaining walls, anchoring systems, chemical plant infrastructure, coastal piers and wharves, pilings, dowel bars, welded wire mesh and tie wire and many other applications where excellent corrosion resistance and superior strength are required.

When imbedded in concrete, the new rebar alloy has corrosion resistance and strength comparable to that of the well known premium quality materials. The new product is made by Talley Metals, a subsidiary of Carpenter Technology Corporation.

With its low magnetic permeability, EnduraMet 32 stainless may be considered for concrete rebar applications in close proximity to sensitive electronic devices and magnetic resonance medical equipment.

BHPB bid for Rio – Rumors abound for sweetened offer

As per reports in media, BHP Billiton is poised to increase its 3.4 for 1 offer for Rio Tinto to 4 for 1, valuing Rio at more than USD 200 billion.

Fuelling the speculation was a report that one of the executives leading