ArcelorMittal plans USD 25 billion investment in India

PTI reported that ArcelorMittal is very bullish about India and is committed to invest nearly USD 25 billion in India.

Mr Malay Mukherjee member of the group management board of ArcelorMittal said that "India is one of the star performers and we are very bullish about it. We are committed to invest nearly USD 25 billion.”

Mr Mukherjee said that “Besides investing USD 10 billion each in Orissa and Jharkhand on 12 million tonnes steel project each, we propose to have more customer oriented projects such as service centers in India. We are also working in JV in Chennai in stainless steel, for the automotive sector."

Mr Mukherjee added that "We still have fire in our belly and one of the areas where we do believe that a lot still needs to be done is definitely India."

POSCO site turns into war zone

Statesman News Service reported that lawlessness reigned supreme in Gobindpur, Dhinkia and Mathsahi areas of the proposed POSCO project site last night with a couple of people sustaining injuries in a bomb attack.

As per reports, some senior police officers were held hostage for over 12 hours and released only after the demand for withdrawal of police from Gobindpur was conceded.

The report said that the law and order machinery collapsed under the onslaught of the POSCO Pratirodh Sangram Samiti led Vikalp Vikash Samabesh meeting on April 1st 2008 and it held a meeting and set fire to leaflets and other literature about benefits of rehabilitation package of the company etc.

It is alleged that this led to tension and the pro project activists clashed with their rivals. Bombs were hurled injuring at least three persons, including two PPSS activists.

Indian may ban futures trading and bring steel under ESMA

Warning that the battle against inflation will fail if states do not join hands with the centre, Mr Kamal Nath union minister of commerce & industry said that the fresh offensive on price control may include a ban on forward trading and bringing steel under ESMA.

Mr Nath said that "If the states are not going to exercise the power they have to check profiteering, hoarding, fight against inflation is going to collapse." He added that the centre needs to prevail more strongly on the states to take effective steps for arresting the price rise.

Asked whether the government would ban futures trading, Mr Nath replied that "If forward trading is the reason of inflation, why would not we do it. We want to contain inflation."

As for steel, which has seen a price rise of 49% in the last one year, Mr Nath said that if the states failed to rein in inflation, the centre was prepared to take stern action. He added that "In the end we will have to think of steps. You know there are steps such as the Essential Commodities Act for steel such as 18 (G) of the Industrial Development Regulation Act."

Revenue neutral model for excise cut for steel in India

BL reported that there could be an additional burden of over INR 4,600 crore in the form of export duty on iron ore in case Indian government adopts the steel ministry proposed revenue neutral model to bring down steel prices.

The model, proposed by Mr Ram Vilas Paswan India’s steel minister, suggests reduction of excise duty on steel products from 14% to 8% and recovering the shortfall through additional imposts on iron ore exports.

At a meeting held on April 15th 2008 between Mr P Chidambaram finance minister, Mr Ram Vilas Paswan steel minister, Mr Kamal Nath commerce minister and Mr Sis Ram Ola mines minister, Mr Chidambaram is reported to have said that he is open to excise duty cut in steel but insisted that the loss in revenue on account of steel should be compensated by some other means.

According to the latest full year excise collection data available with the government, during fiscal 2006-07, when excise duty on steel was 16%, the top 10 steel producers had paid INR 12,392.03 crore as excise duty. Assuming that the level of production prevalent in 2006-07 is maintained and without factoring in the price rise during last fiscal at 14% duty rate the excise receivable from these companies would have been INR 10,843.03 crore in the current fiscal. According to the steel ministry, If the excise rate is brought down to 8%, the Government would receive INR 6,196 crore, thereby leaving a gap of INR 4,647 crore which could be compensated by a 15% export tax on iron ore.

But, another important point to be notes is that as excise duty is based on the value of steel, which has almost doubled over last year, reduction in excise duty from 14% to 8% would not reduce government revenues anyway, without considering compensation for increase in export duty on iron ore.

PSL bags orders worth INR 1.225 crore

PSL Limited recently informed BSE that it has been awarded with yet another series of prestigious orders encompassing supply of steel pipes for both oil & water pipelines aggregating to INR 1.225 crore from two prestigious companies namely Larsen & Toubro Limited and HPCL Mittal Pipelines Limited as per following details

1) Contract from L&T
Under this contract, which is related to 220 kilometer long Barmer Pipeline for water transport, PSL would fabricate and coat MS pipes of various diameters and supply the same from its Jaipur facility to Larsen & Toubro. The aggregate value of the said contract is approximately INR 308 crore.

2) Contract from HPCL - Mittal Pipelines Limited
Under this contract, PSL is required to supply the entire requirement of 1024 kilometer of steel pipes to HPCL Mittal Pipelines Limited for its Mundra Bhatinda crude oil carrying line. The subject pipes would be supplied from its facilities located at Kandla in Gujarat. The aggregate value of the said contract would be approximately INR 917 crore.

The awarding of the aforesaid two contracts will assist in PSL achieving its desired objectives of the current financial year 2008-09.

India may change iron ore export tax on value basis

Union finance ministry is believed to have favored computing export tax on iron ore on the basis of value rather than quantity, a move that could help garner higher revenue in view of the galloping prices of the mineral.

The views coincide with that of the steel ministry, which has been pushing for a 15% ad valorem duty on iron ore to offset any possible revenue loss to the exchequer if the government cuts down excise on steel and allow its duty-free import to check rising prices.

Official sources said that the views from the two ministries were believed to have been voiced during inter ministerial meeting held here earlier this week to explore options for checking steel prices.

The ministries of commerce and mines are understood to be opposed to the move and the matter has been referred to Prime Minister Dr Manmohan Singh, who is expected to take the issue to the Cabinet Committee on Prices early next week before the government announces steps to check steel prices that have risen by up to 49% in the last one year.

The finance ministry is of the opinion that export duty on iron ore would not jeopardize interests of the mining industry, as despite imposition of export duty on iron ore last year, there is no reduction in the volume of exports. The finance ministry while agreeing to Mr Paswan’s contention that fiscal measures need to be taken believes that they will have to be revenue neutral.

ArcelorMittal plans USD 300 million R&R and CSR in Jharkhand

It is reported that ArcelorMittal has decided to spend about USD 300 million on rehabilitation & resettlement and corporate social responsibility in Jharkhand. The money will be spent in the next few years at Torpa and its adjoining areas, where it will set up a plant with a capacity of 12 million tonnes per annum.

Mr Remi Boyer VP of ArcelorMittal said that it is very serious about welfare of the people at the proposed site of the Greenfield project. He added that "We are here to stay and for generations. Indian projects are on the priority list and the company is serious about the welfare of the local population, their ethnic needs and culture. To ensure this, it will invest about USD 300 million on welfare activities in the first phase. This will include the amount spent on R&R and CSR."

He said that the amount will be spent under different heads, including health, development, economic activities, socio culture aspects, education and women empowerment. Once the plant starts operating, the amount spent on CSR will be something in between 1% and 3% of the profits depending on requirements.

Mr Sanak Mishra CEO of ArcelorMittal India Limited said that the initial work for the project has been completed and a detailed project report would be ready by December 2008.

IIL to raise INR 500 crore through warrant issue

Ispat Industries has announced that it would raise over INR 500 crore through issue of share warrants to promoters on a preferential basis as its board has approved the issue and allotment of 11.32 crore share warrants to eligible promoters at a price of INR 44.69 each aggregating to INR 506 crore.

Ispat Industries said that the holder of the share warrants would have an option to apply for and be allotted one equity share at any time after the date of allotment in one or more tranches.

SAIL RSP launches new scheme for underprivileged children

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has launched a scheme to provide financial support children from the underprivileged sections of its peripheral villages, resettlement colonies and reclamation blocks.

Mr BN Singh MD of Rourkela Steel Plant has presented scholarships worth INR 1.14 million to 103 underprivileged students including 42 girls. Over 80 students from class 1 to 5 received cheque of INR 10,800, receiving INR 900 per month for a year. Similarly 23 students of class 6 to 10 were presented with a cheque of INR 12,000, receiving INR 1000 per month.

Mr Singh said that "RSP is making constant efforts to ensure that no bright student in its periphery has to forsake education for lack of finance. The scholarship given by RSP is adequate to take care of the educational needs of the students. I firmly believe that each recipient of the scholarship will become highly qualified and worthy citizens of the country thereby creating a hub of educated people in and around Rourkela."

He also touched upon the various initiatives taken by RSP for the development of the entire periphery in general and the 16 model steel villages adopted by the steel plant in particular. He added that "We have taken up the responsibility of making our periphery populace our partners in progress and we are very much committed to this noble cause."

NTPC agrees to locate Sampur plant as Colombo wants

It is reported that India has finally agreed to locate a 500 MW coal based plant of the National Thermal Power Corporation at Sampur town in Sri Lanka’s Trincomalee district.

According to reliable sources, New Delhi’s decision was conveyed to Sri Lankan government. Though the two countries signed an agreement in December 2006, there was no unanimity on the plant location.

Sri Lanka identified Sampur, which its military wrested from the Liberation Tigers of Tamil Eelam in September 2006, though an NTPC team earlier preferred a site near the Indian Oil Corporation oil complex, close to the Trincomalee harbor. Sri Lanka’s move locate the plant at Sampur triggered a controversy with the pro-LTTE Tamil National Alliance raising political and environmental objections.

The project, involving an investment of USD 500 million, is to be implemented by a JV company, in which the NTPC and the Ceylon Electricity Board will each hold a 50% stake and which will be funded with a debt equity ratio of 70:30.

For Sri Lanka, this is one of the largest ever infrastructure investments and the project will augment its power capacity by 20%.

Indian cement production to grow up by 11.5% in 2008-09 – CMIE

Centre for Monitoring Indian Economy, in its monthly report, said that cement demand outlook this fiscal remains healthy, driven by rising investment in construction and real estate sectors.

The CMIE expects cement production to grow up by 11.5% and cement consumption by 12% during 2008-09. The total annual installed capacity of the cement sector increased by about 22 million tonnes during 2007-08, of which 12.7 million tonnes were added during the March 2008 quarter. The CMIE expects another 25 million tonnes of new capacity to come on stream in 2008-09, boosting the production growth.

CMIE in the report said that "We expect the production to grow 11.5% during 2008-09 backed by the northern region, which has seen additional capacity of around 15 million tonnes in 2007-08. The year 2009 would see an addition of another 7 to 8 million tonnes in the region." It added that western and eastern regions would continue to face a deficit. However, surplus volumes from the north are expected to meet demand in these regions.

CMIE said that sales volumes would drive the sector’s growth during the fiscal. With limited YoY rise in realizations, the measures to improve cost efficiencies would play a significant role in determining the sector’s profitability. After decelerating in the previous 3 months, cement production and consumption growth rate picked up during February 2008.

Coming over a low base, production and consumption grew by a robust 12.6% and 14.8%, respectively. The growth was driven by a healthy performance of the northern region, which saw its production and consumption rising 25% each.

Indian Railways unveils new wagon leasing schemes

Exim News Service reported that union railway ministry has unveiled two schemes namely wagon leasing scheme and the liberalized wagon investment scheme, which will allow private companies to own and lease wagons, hitherto the prerogative of the Indian Railway Finance Corporation.

Under wagon leasing scheme, high capacity wagons with a payload of at least 2 tonnes more than the prevalent 25 tonne and 22.9 tonne axle load wagons or special purpose wagons for specific commodities can be owned and leased out by private companies.

Companies with a net worth of at least INR 250 crore and with a minimum experience of 5 years will be eligible for the scheme. Such companies will have to pay a one time registration fee of INR 5 crore to Indian Railways. This will be valid for a period for 20 years, after which extension can be given for 10 years based on the performance of the leasing company.

Wagon leasing firms will also get freight discounts between 12% and 15%. High capacity wagons with a payload of 2 tonnes or more will get a freight discount of 12% and 0.5% for every additional tonne for 20 years based on the current freight rate.

Liberalized wagon investment scheme will also work on similar lines as the leasing scheme. Private companies manufacturing commodities such as fly ash, fertilizer, etc can invest in high capacity wagons. However, profitable commodities like coal, coke, ores and minerals are exempt from this scheme.

The companies will procure wagons rake wise, along with some spare wagons directly from manufacturers or import them. They will then have to be certified for safety and specifications. Their wagons, however, will not be merged with Indian Railways’ rolling stock.

Iron Ore in India: The Present and the Future of It

'Iron Ore in India: The Present and the Future of It', authored by prominent author Dr AS Firoz provides you the valuable information on Indian iron ore market and is scenario. The report covers the reviews of the developments in Indian iron ore industry.

This report critically looks at the current situation in the industry, potential of the iron ore market growth in the medium term, growth plans of the individual major companies, demand and supply issues related to raw materials like coal and iron ore, competitive positioning of steel production in the country, socio economic and political factors which may have direct and indirect impact on the growth dreams of the Indian steel makers, etc among a large number of other relevant issues of strategic importance.

This report is the product of extensive and in depth analysis with incredible amount of time spent to put the numbers in perspective. There are neutral and frank expert views on matters which have drawn attention of the industry in the recent period.

The phenomenal rise in iron ore prices and their continued shortages worldwide have raised many important questions on the future of the iron and steel industry globally especially in the context of the changing dynamics in the environment surrounding especially in respect of raw materials to this industry. The steel makers are undergoing a phase of uncertainty, volatility and speculation amidst a supply side crisis looming large over raw materials, importantly iron ore and coking coal.

The Indian story is no different. A country having over 25 billion tonnes of officially declared iron ore resources and producing over 210 million tonnes of them annually and exporting nearly 95 million tonnes of them is important from all angles to the world of iron ore business.

Publish Date: April 2008
No. of Pages: 178 (103 analytical perspective + 25 Tables + 50 Charts)
Price: INR 100,000 plus 12.36% service tax for Indian buyers
USD 2800 for overseas buyers
Delivery Format: PDF Format

You can order your copy to reports@steelguru.com, who will send you an invoice of INR 100,000 for the report

IIL announces changes in board

Ispat Industries Limited has informed BSE that its board of directors has decided to effect the following changes in the composition of the board of directors of the company

1) Mr VK Mittal MD has been re designated as vice CMD
2) Mr Vinod Garg executive director (Marketing) has been re designated as executive director (Commercial)
3) Mr BK Singh has been appointed as an additional director. He shall be a whole time director designated as executive director (Steel Plant).

All the aforesaid changes come into effect immediately.

ADB and WB grant funds for projects in North East

Indian government has taken a special initiative to mobilize external aid, including from Asian Development Bank and World Bank, for up gradation of the North Eastern regions roads, bridges, urban infrastructure and boosting trade.

At present, there are three ADB assisted and two World Bank assisted projects in the North Eastern region. The projects include ADB assisted North Eastern State Roads Project, North Eastern Urban Development Project, NE States Trade Investment Creation Initiative Project, World Bank assisted North Eastern Region Livelihood Projects and Study on Water, Natural Resources & Environment.

The main objective of North Eastern State Roads Project is to upgrade 1300 kilometer of priority roads, 5500 meters of bridges and construction of 4700 meters of causeway Irish crossings in the eight North Eastern states so as to facilitate regional integration and trade flows. The total estimated cost of the project is USD 428 million of which ADB proposed to finance up to USD 300 million and government of India is required to finance the balance USD 128 million.

Through North Eastern Urban Development Project, centre seeks to improve urban infrastructure in nine cities in the region in 2 phases. The estimated cost of phase I of the project is USD 350 million.

Union railway ministry plans bulk terminals

Union railway ministry is planning terminal development scheme for private entities, which will enable private companies manufacturing products such as cement, fertilizers and fly ash to build their own terminals for transporting these freight items keeping in mind their specific requirements.

The terminal is likely to be set up near the manufacturing hub either on private land or on land owned by railways. The developer will have to build the terminal at his own cost according to his specific needs and can house facilities for storage, loading, unloading and packaging of the commodity. According to initial estimates, setting up such terminals will require investments of at least INR 40 crore each.

It is learnt that, as an incentive, the terminal owner will enjoy freight discounts stretching over a period of 20 years. This will translate into a freight concession of 15%, a waiver of the hefty busy season surcharge along with a waiver of the terminal surcharge for the developers of the terminals.

Consultants for Delhi Mumbai industrial corridor by June 2008

It is reported that centre is soon likely to appoint a group of consultants for the Delhi Mumbai Industrial Corridor project. Till now, it is learnt that sixteen consulting agencies have been short listed and the government is expected to take a final call by June 2008. The group of consultants appointed by the government will then start work by July 2008.

The DMIC project is spread over an area of 4,36,486 square kilometer and will pass through Delhi, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra and the union territories of Daman & Diu and Dadra & Nagra Haveli.

Progress to achieve 11,000 MW capacity target in 2008-09

PTI reported that union government is closely monitoring progress to achieve the 11,000 MW capacity addition target for the current fiscal in the wake of many projects facing delays.

Mr Jairam Ramesh union minister of state for commerce & power said that "The target for addition of power generating capacity in 2008-09 is around 11,000 MW." He added that government is intensively monitoring the progress of those projects which are facing delays.

He was addressing a gathering after commissioning 250 MW thermal power unit executed by NTPC SAIL Power Company Private Limited. He said that NTPC is keen on setting up a 4000 MW power project at Lara in Chhattisgarh for which it has a coal mine linkage and has sought the state government's support.

PGCIL to study sub sea power link to Sri Lanka

It is reported that a pre feasibility report is being undertaken by Power Grid Corporation of India on the proposed India Sri Lanka Electricity Grid Interconnection Project, to lay an undersea line between Rameswaram and Talaimannar, which could be commissioned within 42 months.

ADB lends USD 113 million for wind power in India

Asian Development Bank will provide USD 113 million loan to the wholly owned Indian subsidiary of Hong Kong's CLP Holdings to fund the development of 2 wind energy facilities in Gujarat and Karnataka.

The projects will together add 183.2 MW of capacity in the 2 states and will have a total estimated cost of INR 990 crore. ADB will grant a loan of INR 445 crore and that the private sponsors will use internal funds and long term debt from other sources to complete the funding requirements.

Gammon India bags commercial project contract in MP

Gammon India has bagged an order worth INR 800 crore from Madhya Pradesh government for the construction of commercial project at South TT Nagar in Bhopal. An agreement regarding the purpose was signed between Gammon India and the state government on April 18th 2007.

As per the agreement, 15 acre land will be given on lease for 30 years for construction of retail and office spaces, multiplex, hotel and other commercial development with ancillary residential development.

Madhya Pradesh Housing Board is the nodal agency for implementation of the project and will be the project management agency till its completion.

Global crude steel production in March up by 5.8% YoY

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute was 119.5 million tonnes in March 2008 up by 5.8% YoY.

Total world crude steel production was 340.7 million tonne sin January to March 2008 up by 5.6% YoY.

In the first three months of 2008, China produced 124.9 million tonnes of crude steel up by 8.6% YoY. In March 2008, China’s moving annual total growth rate slowed further to 11.5% as compared to its MAT growth rate of 21% in March 2007. China’s crude steel production for March 2008 was 44.9 million tonnes up by 11.5% YoY.

We shall be publishing more details soon

Nippon Steel to seek 40% price hike – Report

Nikkei business daily reported on that Nippon Steel Corp plans to ask automakers and other customers to accept a nearly 40% increase in prices for its mainstay steel products to offset soaring raw materials prices.

The report quoted Mr Shoji Muneoka president of Nippon as saying that “Nippon Steel will have to propose a price hike of JPY 30,000 (USD 290) for the year to March 2009.

Nippon Steel had earlier sought a hike of roughly JPY 20,000 per ton, assuming that high materials prices would result in a JPY 2 trillion increase in costs to the steel industry. But with coal and other materials becoming more expensive, the company now expects the cost increase to come to slightly more than JPY 3 trillion to the steel industry.

The report said that steel users including auto majors, machinery and electronics products are expected to resist such a large price hike. If steel prices go up JPY 30,000 per tonne, cost increases will likely reach JPY 460 billion a year in the auto industry and JPY 200 billion in shipbuilding.

The report added that other major steelmaker's will follow suit.

EUROFER sees slowdown in steel consumption in EU

The European Confederation of Iron and Steel Industries said that the consumption of steel is to slow down to more sustainable levels in 2008 and 2009.

Eurofer in a statement said that "In the first months of 2008 the EU economy has been able to keep its strength amid increasing growth fears. This is underpinned by largely stable or even improving confidence levels and still healthy first quarter 2008 economic indicators; particularly the labor market situation looks positive. Nevertheless, it remains to be seen how the EU’s coping mechanism performs in case of a prolonged US recession, further significant Euro appreciation or deepening financial crisis. The current outlook sees the EU economy growing by 1.9% in 2008 and in 2009.”

It added that “Meanwhile, the business situation in the key steel using sectors in the EU remained healthy; most companies report strong order books, relatively high capacity utilization rates and difficulties in finding qualified personnel. The current outlook shows 2.6% output growth in 2008. This represents a 0.4% downward reduction compared with the previous outlook, basically reflecting increased risks and uncertainties. Going into 2009, growth is seen developing in line with industrial production growth at around 2%.”

EUROFER said that The latest steel market projections indicate that following the 2006/07 period of exceptional end-use strength, real steel consumption growth will slow down to a more sustainable rate in 2008 and 2009. Steel inventories at the start of 2008 returned to levels largely in balance with the downstream activity situation. In addition, import license applications indicate that for the time being imports coming into the EU27 could remain below the very high levels registered in 2007. All in all, this bodes well for EU steel market conditions in 2008, particularly for the 1st half of the year. Nevertheless, imports disturbing the supply-demand balance remain a risk for the EU steel market.”

It concluded that “On balance, apparent steel consumption is forecast to rise by 0.8% in whole of 2008. First projections for 2009 signal a growth in apparent consumption of just below 2% with a fairly neutral impact of the stock cycle over the year. “

MEPS forecast global steel production to rise by 5.6% in 2008

MEPS forecast crude steel production in 2008 at 1420 million tonnes up by 5.6% YoY. It said “This rate of growth is below the year earlier figure of 7.6 percent, due in part to the weaker global economic climate and an anticipated reduction in the rate of steel output expansion in China.”

MEPS said that “Blast furnace iron making is still expected to exceed one billion tonnes this year, rising broadly in line with crude steel output. Direct reduced iron manufacturing is predicted to climb to near 70 million tonnes in 2008. The popularity of this process is growing, particularly in South America, Africa, Middle East and Asia.”

MESP added that “Global steel output in 2007 reached another all time high. Record levels of production were recorded in half the 98 countries investigated. On a regional basis, NAFTA and Africa failed to reach past peak values. The outturn in the former USSR was at a new post 1991 level. However, substantially larger figures were recorded in the 1980’s, prior to the break up of the Union.”

(In millions tonnes)
Source: MEPS - World Steel Outlook

MEPS has made the following observations

1. Crude steel output in non EU Western Europe is forecast to expand by almost 10% in 2008, year on year. The main drivers for this are very strong demand and rising capacity for steel manufacturing in Turkey. High levels of investment will continue over the period to 2012. Much of the growth in output is still related to the construction sector. In the remainder of the region, Serbian output is forecast to rise this year.”

2. A substantial increase in steel manufacturing in 2008 in the former USSR. All steel producing nations are forecast to show improved results from their year earlier figures.

3. Steel production in the NAFTA region in 2008 is expected to be 2 million tonnes up on the year earlier figure. Imports from the Far East and Europe will decline because they are not competitive since the decrease in the value of the US dollar. This will enable mill activity to expand.

4. Crude steel output in South America is forecast to reach another all time high in 2008. Demand across the entire region should remain solid. Revenues from iron ore and other raw materials are expected to rise. This will provide opportunities for expansion of the economies.

5. Total African steel production in 2008 is forecast to reach an all time high. Demand across the region is quite strong. Last year’s outturn was blighted by a series of blast furnace relines.

6. 8% rise in steel output in the Middle East region this year. Consumption will expand and much of the higher requirement will be supplied from increased capacity at the local mills.”

7. China will lead the way with an increase of more than 38 million tonnes.

ArcelorMittal announces new appointments to Group Management Board

ArcelorMittal announces new appointments to its group management board. The three new members are as follows
1. Mr Sudhir Maheshwari, currently Executive Vice President responsible for Finance and M&A
2. Mr Christophe Cornier, currently Executive Vice President responsible for Flat Products Western Europe
3. Mr Davinder Chugh, currently Senior Executive Vice President responsible for Shared Services

The prime responsibilities of Mr Sudhir Mr Maheshwari and Mr Davinder Chugh are M&A/Business & Project Development and Shared Services, respectively. Mr Christophe Cornier’s new responsibilities will include Asia, Africa & India, Steel Greenfield Projects and Equipment Manufacturing. The appointments o will become effective from May 14th 2008.

Mr LN Mittal CEO of ArcelorMittal said that “Adding these skilled and valued colleagues to the GMB ensures that our senior executive team continues to enjoy the relevant talent and expertise it needs to continue to deliver the best possible performance to all our stakeholders. This expanded team reflects the increasing size, scope and ambitions of ArcelorMittal. We welcome Mr Sudhir, Mr Christophe and Mr Davinder to the GMB and look forward to their continued contribution to our success.”

Tokyo Steel raises H beam prices by 11%

It is reported that Tokyo Steel Manufacturing Co, the biggest maker of steel girders in Japan, has raised H beam prices by 11% to a record to cover higher scrap metal prices and other material costs.

Tokyo Steel Manufacturing in a statement said that it increased prices by JPY 12,000 (USD 116) a tonne for April. Japanese scrap prices last month jumped to a record on rising demand from China and South Korea and as a domestic slump in construction cut supply of used metal.

Mr Naoto Ohori MD of Tokyo Steel said that “Steel scrap prices are rising quickly and other materials are increasing along with energy costs, so we have to raise prices.”

Tokyo Steel, which cut output last year amid a housing slump in Japan, may reduce production further should customers balk at price increases, it said last week.

Techint seeking USD 3.6 billion for Sidor - Report

Buenos Aires newspaper Clarin reported that the Techint Group will seek USD 3.6 billion in compensation from the Venezuelan government for its nationalization of steelmaker Siderurgica del Orinoco.

Buenos Aires based Techint controls Ternium SA, which owns a majority stake in Sidor as the Venezuelan steelmaker is known. The newspaper said the USD 3.6 billion estimate was made by experts whom it didn't name.

Mr Hugo Chavez president of Venezuela moved to nationalize Sidor, the country's only maker of flat steel products, because the company said it wouldn't meet union demands on pay.

Sumitomo succeeds in fracture arrest test of X100 pipe

Sumitomo Metal Industries, Ltd announced that it has succeeded in a full scale fracture arrest test for the X100 ultra high strength line pipe, which is positioned as the next generation high strength pipe for gas transmission pipelines.

Sumitomo Metals' newest full scale test, however, has proved the arrest of running fracture, as predicted by a new simulation model developed by the Company. This has become the world's first successful fracture arrest of the X100 line pipe.

It has been developed to meet the requirements of expanding use and supply of natural gas, a clean form of energy. Up to now, full scale burst tests of the X100 have not been successful in demonstrating the arrest of ductile running fracture in a high pressure gas pipeline.
This event raised the reliability of safety performance of the X100 and will promote its commercialization for high pressure gas pipelines. Also, Sumitomo Metals' simulation technology for fracture propagation will become more highly recognized in the world.

To read the full release please visit
http://www.sumitomometals.co.jp/e/news/news2008-04-21.html

Japanese rebar demand to drop by 10% in April to June 2008

JMB reported that Japanese demand of concrete reinforcing steel bar is likely to decrease by around 10% to around 2.7 million tonnes in April to June 2008 from same period of 2007.

A rebar maker source concerns the demand could decrease more when condominium sales decrease due to the higher selling price along with the slower building activity nationwide caused by the new building standard law. The market has uncertainty when general contractors revise the building plan, mainly for small and medium sized building under slower demand and higher steel and materials price.

German steel in Q1 of 2008 reach highest level in 17 years

According to the German Steel Federation, Germany Q1 output for steel industry is likely to be 13.5 million tonnes of steel, which would be the highest quarterly output since the reunification of Germany in 1991.

The steel federation said in the first two months of 2008 alone, orders were up about 18% YoY.

Explosion and fire at Sparrows Point plant

It is reported that an explosion caused by a chemical reaction burned one person and caused a two alarm fire at a Cole Chemical building in the Sparrows Point Industrial Plant.

According to officials from the Baltimore County Fire Department, liquid steel came in contact with water causing an explosion around 12:30 Monday morning. The man handling the steel was burned 50% of his body, but is expected to recover.

The explosion apparently then caused a fire in the building. Hazmat crews were also called to the scene when four unknown drums were found. The hazmat was later canceled.

It is not known exactly how the liquid steel came in contact with the water or the condition of the victim, though we are told he will survive.

Pallinghurst and POSCO sign co investment deal

Pallinghurst announced that it has signed a co investment agreement with POSCO. Under this agreement, POSCO commits USD 200 million for investments in approved projects developed by Pallinghurst in the natural resources sector internationally.

POSCO joins AMCI, Investec, NGP Midstream & Resources and Pallinghurst Guernsey as co investment partners with total commitments from the 5 co investment partners now amounting to approximately USD 1 billion.

Under the Pallinghurst investment program the first joint investment to be made with POSCO will be the acquisition of an effective 13% stake in a manganese project located in the world renowned Kalahari Basin in South Africa. The project, 49% owned by the Pallinghurst consortium, is expected to come into production in 2010 and have in excess of 30 million tonnes of measured ore resources.

Commenting on the transaction Mr Brian Gilbertson chairman of Pallinghurst said that "We greatly value POSCO's partnership as we set out to build a world class supplier of steelmaking materials. Competition for access to these commodities is likely to increase substantially in years ahead."

Pallinghurst Resources LLP acted as advisor to the Pallinghurst consortium.

EUROFER position on emission trading scheme

EUROFER position on the Commission proposal for the revision of the EU Emissions Trading System Proposal for a Directive of the European Parliament and the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community

The European steel industry’s situation with regard to Climate Change policies is characterized by

1. A history of achieved CO2 reductions both expressed per tonne of products and absolute2The European Environment Agency calculates for the EU 27 steel industry a reduction of 21 % in 2005 compared to 1990 levels
2. Operating at the technological limits of the currently available production processes,
3. Commitment to research into breakthrough technologies,
4. Exposure to fierce international competition.

In response to the EU’s Climate Change commitments and in view of the above conditions, EUROFER calls for a Climate Change policy which
1. Has the ultimate goal of implementing a global CO2 price which provides for equal conditions for competing industries,
2. Meanwhile, by promoting best performance, maximises industrial CO2 mitigation effects within the EU whilst avoiding carbon leakage,
3. Strengthens financing of research.

To realize the above, EUROFER deems it appropriate to include criteria on the avoidance of competition distortion into any International Agreement; to support Global Sectoral Agreements as an additional driver towards an International Agreement or as one of its building blocks; to base allocation of EU-ETS-allowances on “benchmarking” until an International Agreement as described above comes into force; to consider carbon equalisation measures for cases of carbon leakage not addressed by benchmarking; and to provide for substantial support by the Community and the Member States for industry research activities.

The research project of the steel industry with the highest profile in terms of reducing carbon use in steelmaking is the ULCOS project. It attempts to achieve clarity on the technical feasibility of certain breakthrough-technologies and their combination with capture and storage between 2015 and 2020. The steel industry’s activities are also aimed at the development of steel applications, which offer CO2 mitigation potential, for example, for energy efficient housing, higher efficiency for electricity generation, sea-borne wind power stations, submerged hydro-electricity, lightweight vehicles or more energy efficient electricity transformation.

The European steel industry is committed to contribute to the EU’s objective to reduce greenhouse gas emissions by 20% in 2020 compared with 1990 and by 30% provided that other countries commit to comparable efforts in the framework of a global agreement.

In pursuing this path towards a low carbon economy EUROFER recalls3Presidency Conclusions, Brussels European council, 13/14 March 2008, doc 7652/08 the need to be consistent with EU sustainable development, competitiveness, security of supply the need for sustainable growth and to recognize the risk of carbon leakage in certain sectors. The Commission referred to the need to achieve high environmental performance and energy efficiency without losing competitiveness 4Communication on the Competitiveness of the Metals Industries.

In line with the general position of EUROFER on Climate Change politics as described above and the recommendations of Council and Commission, EUROFER welcomes the proposal for a reviewed EU ETS Directive but identifies the need for the amendments which we list above to secure the objectives set by the European Council.

Maghreb Steel orders for meltshop and caster

Morocco’s Maghreb Steel has awarded to Germany’s SMS Demag an order to construct an electric steel plant X Melt and a single strand continuous slab caster X Cast.

The facilities are designed for an annual production of 1 million tonnes of steel and will supply the upcoming steckel rolling mill with input stock. The product mix comprises low & medium carbon steels and high strength low alloy steels.

The SMS Demag supply scope consists of a 120 tonne electric arc furnace with modern ARCCESS® technology, a 120 tonne ladle furnace, a dust collecting facility and the materials management system for alloying agents. Also contained in the SMS Demag supply scope is a single-strand slab caster for the production of slabs in widths of 900 mm to 2,150 mm and a thickness of 200 mm.

SMS Demag will be supplying the detail engineering, mechanical equipment and hydraulic system, as well as the complete X-Pact® electrical equipment and automation package including process models. Commissioning is scheduled for the beginning of 2011.

Maghreb Steel is one of the largest companies in the North African region for the manufacture of cold rolled products and has its head office in Casablanca. Most of the exported products are hot-dip galvanized sheets and plates. The hot strip needed for these has hitherto been imported.

Feng Hsin Iron and Steel increases rebar prices again

Taiwan's Feng Hsin Iron and Steel has raised its rebar price by about TWD 700 per tonne this week after its price rise announcement of TWD 600 per tonne last week.

The move is due to a combination of raising international scrap price and tight scrap supply in the global steel market. Feng Hsin's new price of rebar has leaped to TWD 30,000 per tonne.

On the other hand, the company is adding its scrap price by TWD 400 per tonne this week, but its scrap price is still much lower than the import scrap price. Therefore, Feng Hsin will still have the chance to push up its scrap price again next week, according to market player.

(Sourced from YIEH.com)

BlueScope to raise USD bonds – Report

Reuters reported that BlueScope Steel Ltd is planning to raise debt in the US private placement bond market. The report cited some sources as saying that Bank of America and Westpac Institutional Bank are tipped to win the mandate to arrange the offer.

The report added that BlueScope has declined to confirm the planned offer but said that it is considering its refinancing options, as highlighted in February when the company posted its half year results.

If implements, the planned offer will be Bluescope's second such bond issue, following a USD 300 million bond placement in 2003 with ABN AMRO acting as the agent. The issue offered seven and 10 year maturities.

The US private placement market has been a popular source of funds for Australian corporations looking for long dated debt. Typical buyers of traditional private placements are US insurance companies keen on long dated paper to match their liabilities. They require a rating from the National Association of Insurance Commissioners.

Rescission report - Plan to try to avert financial crises

Finance officials from the world’s top economic powers have recently endorsed a plan aimed at preventing another financial crisis like the credit and mortgage debacles that erupted in the United States and quickly sent tremors around the globe.

The G7 officials in a joint statement said that rapid implementation of the plan will not only enhance the resilience of the global financial system for the longer term but should help to support confidence and improve the functioning of the markets. The G7 officials said that “The turmoil in global financial markets remains challenging and more protracted than we had anticipated,”

Treasury Secretary Mr Henry Paulson and Federal Reserve Chairman Mr Ben Bernanke hosted the Group of Seven discussions, where officials embraced a plan that would seek to increase the openness or transparency of financial markets and to sharpen regulators response to urgent financial problems. Mr Paulson said that “Given the significant short term downside risks, we are taking action. He warned that The G7’s decision to adopt the plan. There may be more bumps in the road.

In the United States, where credit troubles sprang forth with a vengeance last August and quickly spread financial turmoil worldwide, the damage is sorely felt. Foreclosures have surged to record highs, job losses in the first three months of this year have neared the staggering quarter-million mark and financial companies have racked up billions of dollars in losses. Many economists now believe the United States has fallen into a recession and the odds of a worldwide downturn have risen sharply to one in four according to the IMF, a global financial firefighting institution.

Japanese crude steel output hit record in 2007-08

According to Japan Iron and Steel Federation, crude steel output in Japan hit a record high 121.5 million tonnes in the year to March 2008 on strong ongoing domestic demand from carmakers and shipbuilders while exports zoomed. Production rose 3.2%. Crude steel output in March rose by 5.1% YoY, the 22nd consecutive increase

A spokesman at the trade body said that top Japanese steel mills have already been producing at full capacity to keep up with the strong demand and renovation of blast furnaces at several steelmakers, including Sumitomo Metal Industries Ltd and Kobe Steel Ltd, enabled them to inch up output.

The previous high was 120 million tonnes in the business year to March 1974, when Japan was enjoying economic growth of more than 10% and a construction boom.

The spokesman said that exports have remained strong despite the yen's advance this year due to robust demand for sheet steel from Japanese manufacturers operating in other Asian countries.

Arcelor Mittal members of GMB and their core responsibilities

Mr LN Mittal: CEO
1. Shared Services (including Purchasing, Legal, IT, Shipping and Energy)
2. Marketing and Commercial Coordination
3. Human Resources
4. Health and Safety
5. International Affairs
6. Internal Assurance
7. Mining

Mr Aditya Mittal: CFO, M&A, Strategy, Flat Americas
1. Chief Financial Officer
2. M&A
3. Business & Project Development
4. Flat Americas
5. Strategy
6. Investors Relations
7. Communications

Mr Gonzalo Urquijo: Long, China, Stainless, P&T, CR
1. Long
2. China
3. Stainless Steel
4. Pipes and Tubes
5. Corporate Responsibility

Mr Michel Wurth: Flat Europe, Steel Solutions and Services, Product Development and R&D, Global Customers & Automotive
1. Flat Europe
2. Steel Solutions and Services
3. Product Development and R&D
4. Global Customers and Automotive
5. Plates
6. Packaging

Mr Sudhir Maheshwari: M&A and Business Development
1. M&A
2. Business & Project Development
3. Member of Corporate Finance and Tax Committee

Mr Christophe Cornier: Africa, Asia & India, CTO and Steel Greenfield Projects
1. Asia, Africa & India
2. Chief Technology Officer
3. Steel Greenfield Projects Execution
4. Equipment Manufacturing
5. IAC member

Mr Davinder Chugh: Shared Services
1. Shared Services (including Purchasing, Legal, IT, Shipping and Energy)
2. IAC member

Forgemasters win prestigious learning and skills award

Sheffield Forgemasters has been honored with a top regional learning and skills award thanks to its contribution to training and apprenticeships. Up against the most innovative and committed companies in Yorkshire and the Humber region, Forgemasters took the Clive W Leach Award for Outstanding Contribution to Training by a Company at the Celebration of Learning and Skills Awards 2008.

Brand new for 2008, the Clive W Leach Award saw Forgemasters short listed for its exceptional program of development for its own apprentices which is putting vital engineering skills back into the industry.

Mr Graham Honeyman CEO of Sheffield Forgemasters said that "Forgemasters has made great strides forward and much of that is down to the hard work and enthusiasm from the workforce. The management team at Sheffield Forgemasters has always understood the importance of training a skilled workforce and we are delighted that the work that has been put into the apprenticeships scheme has been recognized with this award.” He added that "I feel very proud to be a part of this company, and would like to thank each of our apprentices for rising to the challenges set before them."

Mr Fearne Cotton presenter of the awards said that "The Celebration of Learning and Skills Awards are an important way to recognize the importance of learning and skills in all of our lives. I've thoroughly enjoyed being a part of the CoLaS 2008 and especially witnessing the inspirational success stories of individuals' and employers' learning and skills achievements many in the face of adversity."

The 200 year old company, which is the largest open die forging company in the UK, is currently training 61 apprentices from a total of 708 employees for specialist careers and roles in all departments across the 64 acre Brightside Lane site

ADB may finance USD 5 billion in TAPI pipeline project

It is reported that Asian Development Bank is willing to invest USD 5 billion in the Turkmenistan Afghanistan Pakistan India gas pipeline and wants to support energy sector projects in Pakistan.

Mr Jaun M Miranda director general for central & west Asia department at ADB said that although the bank was willing to finance the TAPI project, it would not finance the USD 7 billion Iran Pakistan India gas pipeline project on which the United States had reservations.

The TAPI project is expected to transport 100 million standard cubic meters per day of gas, of which India’s share is likely to be 60 million standard cubic meters per day. The 1,680 kilometer long pipeline will run from the Dauletabad gas field in Turkmenistan to Afghanistan.

Mr Miranda said that the ADB would not reduce its annual financing to Pakistan, currently ranging between USD 1.5 billion and USD 2 billion. However, the bank would try to focus on priority areas. The ADB is at present funding 60 projects in Pakistan. He added that ADB is also willing to invest in dams and projects to reduce electricity transmission losses and improve private sector’s power production capacity.

Energy topped ADB’s priorities which included infrastructure, irrigation, urban services and reforms for the decentralization process.

Pakistani cement exporters eyeing USD 400 million mark

Daily Times reported that Pakistani cement exports have witnessed huge jump in the recent months and the manufacturers are eyeing USD 400 million mark. The cement production has also witnessed around 32% increase in 2008.

Official sources said that the Indian government has banned its cement exports and ultimately it would benefit Pakistan, as the construction boom is taking place in Gulf countries. India exported around 0.55 million tonnes of cement to UAE while Pakistan exports remained 0.25 million tonnes. In such situation, the local manufacturers are set to capture the Middle Eastern market.

The cement export in 2006-07 remained 2.79 million tonnes and Pakistani manufacturers got orders between USD 65 to USD 70 per tonne. Resolutely, the industry fetched around USD 190 million. However, this year the price is roaming at USD 70 to USD 75 per tonnes. So far, the exports in recent nine months are at 4.45 million tonnes and the manufacturers are expecting to export 5.5 million tonnes of cement by July 2008, getting around USD 400 million.

Currently, Pakistan is producing 28 million tonnes of cement annually and the capacity with addition of new projects would be enhanced to 37 million tonnes. A number of plants including Lucky, Bestway, Kohat and Gharibwal would start production and it would enhance the cement production in Pakistan.

During July 2007 to March 2008 period, Pakistan produced 21.88 million tonnes of cement and exported around 4.45 million tonnes to different countries like India, Afghanistan, Middle East and some of African countries.

In 2008, the cement exports have witnessed a huge increment, as in 2007 Pakistan exported around 2.79 million tonnes of cement including 1.72 million tonnes to Afghanistan and 1.07 million tonnes to other countries. This year, the Indian government allowed cement import and it remained attractive market for the Pakistani producers. So far, the industry has witnessed around 50% enhancement in cement exports while clinker exports have also seen huge improvement. In 2007, clinker exports stood at 0.39 million tonnes while in the previous nine months, they remained 0.7 million tonnes.

Sanctions have no effect on Iranian progress

IRNA quoted Mr Ali Akbar Mehrabian Iranian minister of industries & mines as saying that imposition of sanctions on Iran for its peaceful nuclear activities had no effects on the progress of the country's industries.

Mr Mehrabian said that the value of Iran's currency has increased compared to foreign exchanges. He added that "The enemy resorted to various ways to stop the progress of Iran's industries, however, the country has continued its way forward stronger than ever."

OGC to expand South Oman gas transportation system

Oman Gas Company SAOC has unveiled plans for a major expansion of its gas transportation network in the south of the country, designed to serve a number of new customers in Dhofar Governorate.

Mr Yousuf al Ojaili CEO of Oman Gas Company said that the new South Oman Gas Transportation System will provide natural gas as feedstock and fuel to upcoming projects in Salalah. He added that "It involves the expansion of the Southern gas network to supply gas to Salalah Methanol and the new Salalah Power & Desalination project. This initiative translates the commitments made by the Government to support the development of industries across Oman and also to continue to provide the needs of power and desalination infrastructure in the different parts of the nation."

OGC's upgraded network will also be used to supply natural gas to a new independent power & water project, which will be built at Taqah near Salalah. Oman Power & Water Procurement Company is overseeing the development of the new IWPP of a capacity of 370 MW to 430 MW and 68,000 cubic meters per day of desalination capacity. The plant is due to be fully operational by early 2011, although some early power is expected to be available from 2010.

According to Mr Al Ojaili, a contract for the execution of the South Oman Gas Transportation System will be awarded by the third quarter of 2008. The project is due to be completed by 2009, well before the scheduled start ups of the methanol and IWPP ventures. A number of local and international companies are lining up to bid for OGC's contract to implement the South Oman gas transportation system on an engineering procurement construction basis. The South Oman Gas Transportation System is one of several initiatives currently being pursued by OGC in line with its goal to meet the expanding feedstock and fuel needs of customers around the country.

Mr Al Ojaili said that "We are in the final stages of installation of gas compression plants in Al Buraimi and Fahud to increase the capacity of the gas transmission system. Also, we have started construction work to add a second pipeline parallel to the existing Salalah pipeline to increase the capacity to consumers along the pipeline. We are also providing the third phase gas supply to some Sohar customers."

Significantly, OGC is gearing to facilitate the imminent import of gas into Oman for the first time in the country's history. Qatari gas supplied by Dolphin Energy Limited will begin to flow into the Sultanate effective from later in 2008.

OGC's gas transportation infrastructure has been growing at a rapid pace in step with the growing demand for natural gas around the country. It currently owns and operates more than 2,000 kilometers of pipelines and 23 gas supply stations, serving power plants, industries, and other consumers around the country. In 2006, OGC delivered 7 billion cubic meters of natural gas to customers.

Iran generates 5,000 MW electricity from renewable sources

Mehr News Agency reported that Iran is currently producing 5,000 MW of electricity benefiting from renewable sources of energy.

Mr Parviz Fattah energy minister of Iran said that generation of electricity using nuclear power will be inevitable in future because on the one hand fossil fuel deposits are on the decline and on the other hand electricity generation is costly using current methods. He added that "Fortunately, Iran enjoys ample sunlight and wind as renewable sources of energy and the energy ministry has prepared plans for taking advantage of these boons."

The 30 MW Binaloud wind power plant, the 100 MW Manjil power plant and the Shiraz solar power plant are some of the plans of the ministry in this respect.

Emal awards USD 200 million contract to Alstom

Trade Arabia News Service reported that Emirates Aluminum has awarded a USD 200 million contract to Alstom for the supply of its gas treatment centers. The deal is the largest of its kind in the aluminum industry and secures the use of Alstom’s best practice technology to reduce both fluoride and sulphur dioxide emissions as a core part of Emal’s focus towards strict environmental controls.

As a landmark JV between Dubai Aluminum Company and Mubadala Development Company, the investment reflects Emal’s commitment, both as a key player in the UAE’s economy and towards raising global smelting standards.

Mr Duncan Hedditch CEO of Emal said that "This significant investment shows how seriously Emal is taking its environmental commitment. The smelter’s gas treatment centers will utilize some of the most environmentally sound technology currently available in the market."

Mr Gregoire Poux Guillame MD of environment control systems for Alstom said that "Alstom is honored to work collectively with Emal to take significant steps towards environmentally sound aluminum production."

Alstom gas treatment centers are responsible for conducting fluoride and alumina recovery, sulpher dioxide scrubbing as well as power generation. Alstom will be responsible for a turn key supply of the plants that includes all aspects from design to erection, as well as commissioning of the performance tests. Each gas treatment centers at Emal will consist of 32 compartments, with the total filtration area for each GTC corresponding in size to approximately eight soccer fields.

Chinese rebar and wire rod export offers continue to move up

It is reported that export offers for rebar and wire rod have been increased recently reflecting the rise in Chinese domestic prices and the booming international market. The increasing production cost and short supply in China is expected to further bolster the increase of export prices.

On shanghai market, commercial HRB335 20mm rebar is being quoted at CNY 4940 per tonne to CNY 4950 per tonne, HRB400 grade rebar goes at CNY 5010 per tonne to CNY 5030 per tonne. Commercial wire rod is tagged at CNY 5130 per tonne and hi speed material at CNY 5140 per tonne to CNY 5160 per tonne. HRB335 20mm rebar price is forecast to approach CNY 5100 per tonne CNY 5200 per tonne or even higher soon as long it remains above CNY 4900 per tonne.

Export quotation for rebar has been prevailing at USD 910 per tonne to USD 930 per tonne FOB and the highest even have jumped to USD 960 per tonne to USD 970 per tonne FOB. Laiwu Steel has shoot up rebar export quotation to USD 1000 per tonne CFR or shipment to South Korea ends May or early June shipment.

According to trading sources rebar export contracts are said to be picking up for delivery to Middle East, but the latest transaction price is merely between USD 860 per tonne to USD 870 per tonne FOB. In general, export tonnages are anticipated to rebound in the next two to three months.

Offer for wire rod is prevailing at USD 960 per tonne to USD 970 per tonne FOB and it is expected to reach USD 1000 per tonne FOB in the near future. The export volume to the EU and Middle East market is reported to be on the rise.

(Sourced from MySteel.net)

Masteel to develop high grade rebars

It is reported that recently, the National Science and Technology Support Program high efficiency and cost saving type construction steel’s development and applied research project is launched in Masteel.

This project is supported by Anhui province Science and Technology Office and State Ministry of Science and Technology, can advance the steel products development capacity, and realize optimization of China’s construction steel production process.

Masteel is the important production base of construction steel, Magang will fully exert advantages to complete this project. As per report, take the 400MPa as the example, it can save CNY 60 per tonne cost because of reduce the alloy quantum by using this technology.

Nanjing Steel raises EXW prices

It is reported that Jiangsu's Nanjing Steel has hiked EXW prices fro some products as under

1. Round Bar price up by CNY 50 per tonne
2. Carbon Quality Structural Round Bar price up by CNY 50 per tonne
3. Medium Plate price up by CNY 50 per tonne
4. Low alloy Plate price up by CNY 100 per tonne.

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

(Sourced from MySteel.net)

Hyundai China to increase use of local steel

It is reported that Beijing Hyundai Motor Co, the Chinese unit of Hyundai Motor Co, plans to increase the use of Chinese steel in its auto production.

Mr Noh Jae-Man president of Beijing Hyundai Motor Co told reporters ahead of the Beijing Auto Show that "We will use as much steel as possible if it is cheap and good quality. He said we will not use Baosteel product because it is too expensive. We are testing product from other steel makers such as Wuhan and Anshan."

He said the China unit is confident of meeting its 2008 sales target.

Beijing Hyundai currently uses Hyundai Hysco, the steel unit of Hyundai Motor Group, to buy most of its steel from POSCO and JFE Holdings.

Chinese industrial output in Q1 up 16.4% YoY

China Knowledge quoted the National Bureau of Statistics announced that China's industrial output grew 16.4% YoY in Q1 2008. The growth of heavy industry was 17.3%, and light industry rose 14.7%.

According to the bureau, the industrial output of state owned and state held enterprises, collective enterprises and private sector share holding enterprises rose 12.9%, 11.6% and 18.9% respectively.

The report added that profits of large industrial enterprises rose 16.5% to CNY 348.2 billion, while the YoY rise of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan reached 14.3%. Moreover, output of motor vehicles and cars rose 15.8 % and 14.7% respectively. Crude steel and steel products expanded 8.6% and 12.2% respectively. Meanwhile, power and coal output grew 14% and 14.6% respectively.

According to the sourced during the period, the sales ratio that measures the percentage of industrial products sold against those went into inventory rose 0.5% to 97.7%.

Province wise output of coke in China in Q1 of 2008

China province wise output of coke product in Q1 2008 is as under

In million tonnes

(Sourced from MySteel.net

Jigang net profit in Q1 reaches CNY 400 million

It is reported that Jinan Iron and Steel issued the first quarter report that in the first quarter 2008, Jinan Iron and Steel Company realized operation revenue CNY 10.228 billion up by 32.96% YoY and the net profit was CNY 393 million up by 32.54% YoY and the earnings for per share was CNY 0.29 up by 10.43%.

The reasons for the growth of outstanding achievements is that the steel market is better, the steel price was higher than that of the same period previous years, at the same time, the operating costs also increased 34.79% lead by the steel cost increase.

Fushun Special Steel 2007 net profit up by 50%

According to Fushun Special Steel’s annual report that its 2007 net profit reached CNY 23.73 million, increased by 51.99% and the earnings for per share was CNY 0.0456, but only CNY 0.03 in 2006. At the same time, the company released its 2008 first Q1 report that it realized profit CNY 6.49 million in the first quarter.

The report shows that Fushun Special Steel produced 648,300 tonnes steel and 508,500 tonnes steel materials in 2007 same as the previous year.

The company will fully launch the technological transform for the existing technics equipments and production lines, and also plans to construct new production line, the total investment is expected to reach CNY 275 million, in order to ensure the demand capital, the company doesn’t plan to distribute the 2007 profit.

Shanxi includes steel industry in safe supervision system

It is reported that Shanxi Province has listed iron and steel industry, non ferrous metal industry and construction materials industry to provincial safe supervision system.

The supervising authorities in the province will check safe production conditions of three industries hereinbefore and raise entry standard of these industries since this year.

In addition, Shanxi province will also strengthen the safe supervision of piped natural gas and coal bed methane exploration. By the end of this year, the enterprises which don’t receive safety production permit will not be allowed to operate.

NLMK announce preliminary results for 2007

Novolipetsk Steel, the LSE listed leading Russian steel producer, announced its preliminary consolidated US GAAP results for the year ended December 31st 2007.

NLMKs key financial highlights for 2007

In billion USD

Mr Alexey Lapshin president of NLMK’s said “2007 proved to be a very successful year for NLMK. An increase in sales of high value added products coupled with growing demand for steel products as well as ongoing production costs control enabled NLMK to achieve a high level of operating profit. Highly professional management and sustainable steel demand have encouraged the company’s more efficient use of existing capacity: steel making and rolling facilities have been operating at almost 100% capacity.”

He said that “The decrease of semi-finished product share in total sales volume and further development of high value added product portfolio are key targets of NLMK’s strategy. In 2007, the company has made a significant progress in this area. The total sales during the year amounted to 9.2 million tonnes of steel products while the sales of high margin products, hot dip galvanized and grain oriented steel went up 13% and 45%. At the same time, the sales of semi finished products decreased by 10%.These developments combined with upward pricing trends in key markets allowed us to remain profitability leader in the global steel industry.”

Mr Galina Aglyamova Commenting CFO of NLMK’s said “NLMK Group has demonstrated record financial results last year. The consolidated sales revenue for 2007 reached USD 7,719.1 million. All Group segments showed increase in production volumes and financial results. The consistent implementation of the company’s growth strategy and utilization of our competitive strengths helped us to achieve a record financial performance. EBITDA improved by 28% to USD 3 366.2 million, with an EBITDA margin of 44%.”

He said that “The liquidity crisis at the end of last year did not affect NLMK’s financial results. During 2007, we continued to finance organic growth and acquisitions by group cash-flow. This year, we do plan to use debt to finance dynamic development of the company through asset acquisitions and capital expenditures. Given the company’s robust financial position and high credit ratings we are confident of the effectiveness of this approach.”

Update on NLMK CAPEX in 2007

NLMK has continued its dynamic development through the implementation of the 2nd Phase of the Technical Upgrading Program in 2007

1. NLMK has signed contract on the supply of two new ladle furnaces for the Company's main site in Lipetsk.

2. NLMK has signed contract on the construction of Blast Furnace No.7 with 3.4 million tonnes capacity. This project will enable the production of crude steel at NLMK’s main site to increase to 12.4 million tonnes by 2012.

3. NLMK has started construction of the third pre-painting line with an annual capacity of 200,000 tonnes. After the project completion, NLMK will increase coating capacity to 1.1 million tonnes, including 0.6 million tonnes of pre painted steel.

4. NLMK has started construction of two new transformer and dynamo steel rolling mills, each with an annual capacity of 110,000 tonnes and one HDG line of 300,000 tonnes capacity.

5. NLMK has upgraded its reversing cold rolling mill for the production of electrical grain-oriented steel to raise its capacity from 67,000 to 130,000 tonnes.

6. NLMK has commissioned a new 300,000 tonnes per year pickling line for hot rolled transformer and carbon steel at the main production site in Lipetsk.

Update on acquisitions by NLMK in 2007

NLMK has continued its dynamic development through optimization of the existing Group structure and continuation of its dynamic M&A activities in 2007

1. Disposal of shareholdings in energy assets for USD 78.7 million in February 2007. Proceeds from the transaction were directed to the modernization and development of in-house energy facilities.

2. Disposal of the Company’s 54.88% stake in Lipetskcombank for USD 47.7 million in June 2007.

3. In December 2007, NLMK acquired a 50%+1 share stake in Maxi-Group. The acquisition price is approximately USD 558 million. Maxi-Group comprises several enterprises from collecting and processing scrap to manufacturing long products. The production facilities of existing sites comprise billets 2.4 million tonnes, rebar 1.3 million tonnes and metal ware 0.55 million tonnes. The Scrap Collection division includes 300 scrap collection yards with total capacity of 3.0 million tonnes.

4. NLMK’s subsidiary NTK which ensures the timely supply of raw materials for metallurgical processes and the shipment of finished products to both domestic and international customers increased its fleet of rented and owned railcars to 2,809.

5. In November 2007, NLMK entered into an agreement with TBEA, the major Chinese transformer producer to create a joint service centre to process and sell transformer and dynamo steels in China. The service centre project is aimed at increasing sales volumes and service quality in the rapidly developing Chinese market.

6. Duferco US Investment Corporation, wholly owned subsidiary of Steel Invest & Finance S.A acquired Sharon Coating based at Pennsylvania in USA. The acquisition price was approximately USD 212 million. Winner Steel is one of the largest independent galvanized steel producers in the United States. Its operations are located on a single site in Pennsylvania and include three galvanizing lines with combined annual capacity of more than 1.0 million tonnes.

7. The coke production facilities at Carsid SA were shut down. NLMK now supplies 100% of the coke requirements of the Duferco JV facilities.

NLMK to hold AGM on June 6th 2008

NLMK announced that on April 18th 2008 its Board of Directors took the decision to hold a General Shareholders' Meeting on June 6th, 2008.

The annual general meeting of the Company's shareholders will address the following agenda items:

1. Approval of the Company's 2006 annual report
(a) Annual financial statements, including statement of income
(b) Allocation of profit including dividend payment and losses for the financial year 2006.
2. Election of members to the Company's Board of Directors.
3. Election of the President of the Company Chairman of the Management Board.
4. Election of members to the Company's Internal Audit Commission.
5. Approval of the Company Auditor.
6. Approval of related party transaction.
7. Payment of remuneration to the members of the Board of Directors.

The Company's Board of Directors has recommended that the general shareholders' meeting approve a decision to declare cash dividends for 2007 on ordinary issued shares in the amount of RUB 3 per ordinary share. Taking into account previous interim dividend payments for the first half of 2007 of RUB 1.5 per ordinary share, the Board of Directors recommends paying an additional RUB 1.5 per ordinary share.

The list of persons entitled to participate in the annual general meeting of the Company's shareholders will be prepared on the basis of the NLMK Shareholders’ Register as of 12AM April 18th 2008.

Technopromexport's profit in 2007 up by 31% YoY

RIA Novosti reported that Russian state controlled power plant manufacturer Technopromexport net profit calculated to Russian Accounting Standards grew 31.2% YoY in 2007 to RUB 727.15 million.

Technopromexport, which builds hydraulic, thermal, geothermal and diesel power plants, and power transmission lines in 50 countries said its sales in the reporting period totaled RUB 16.46 billion.

Technopromexport's portfolio of orders currently stands at USD 3.37 billion.

Novatek net income in 2007 up by 33.7% YoY

RIA Novosti reported that Novatek net income calculated to International Financial Reporting Standards increased by 33.7% YoY in 2007 to RUB 18.73 billion.

Novatek said its revenues in the reporting period grew 26% to RUB 62.32 billion. It said early in April that its proven SEC-standard natural gas reserves had grown 0.3% YoY in 2007 to 653 billion cubic meters.

Novatek established in 1994 handles prospecting, production and refining of gas and liquid hydrocarbons. Its gas fields are located in the Yamal-Nenets autonomous area which has the world's largest natural gas reserves. The region accounts for over 90% of Russian natural gas output and around 20% of global gas production.

Serbia to start gas agreement discussions with Russia

Interfax reported that Serbian legislators will start discussing the ratification of an oil and gas agreement with Russia at a parliamentary session on April 24th 2008.

The report added that the current Serbian government, which is only carrying out technical functions because of early elections slated for May failed to approve an agreement on cooperation in the oil and gas sphere with Russia on April 3rd 2008. The agreement was signed in Moscow on January 25th 2008.

The Russian-Serbian agreement on cooperation in the oil and gas sphere envisions the construction of a branch of the South Stream gas pipeline in Serbia, the construction of an underground gas storage facility and Gazprom Neft's acquisition of a 51% stake in the Naftna Industrija Srbije.

ThyssenKrupp invests EUR 56 million for new forging line in Unna

It is reported that ThyssenKrupp VDM is investing strongly to increase its competitiveness and around EUR 56 million has been spent, among other things on the construction of a new forging line in Unna.

Mr Jurgen Fechter executive board chairman of ThyssenKrupp Stainless AG said that "In Unna we now have one of the world’s most advanced open die forging operations. It opens up new possibilities to attract further customers, particularly in the promising aerospace industry."

Dr Olbrich chairman of the management board of ThyssenKrupp VDM said that "We are closing a technology gap in the production of nickel long products and expanding our range significantly."

Mr Christa Thoben North Rhine Westphalia economics minister said that "A lot is talked about corporate responsibility these days. So it gives me great pleasure to come across a company like ThyssenKrupp VDM which is investing in the latest production facilities and through this commitment is strengthening North Rhine Westphalia as an industrial location and offering the people here securing livelihoods."

ThyssenKrupp VDM GmbH is working hard to cement and expand its position as one of the world’s leading suppliers of high performance nickel alloys. To achieve this goal, various investment projects totaling more than EUR 70 million were launched around 2 years ago as part of a forward strategy. At the Unna plant they included the expansion of remelting capacities as well as the construction of the new 5,000 tonne forging press.

ThyssenKrupp VDM already supplies high performance materials for the construction of wide body aircraft such as the Airbus A380 and the Boeing 787 Dreamliner. In the future the company also intends to supply materials for rotating aircraft parts. The expansion of the forging operations in Unna has also had an impact on the number of jobs at the plant, which has risen by roughly 30 to just under 320.

OMC hiked chrome ore price by 33% to INR 18,250 per tonne

India’s Orissa Mining Corporation has increased its April to June 2008 quarter chromium ore prices by 33% to INR 18,250 per tonne duty paid.

Orissa Mining Corporation produces around 600,000 tonnes per year of chromium ore, most of which goes to the domestic market. TATA Steel produces over 1 million tonnes per annum of chromium ore, but it goes to ferrochromium producers who convert it on a toll basis instead of supplying the market.

Minerals & Metals Trading Corporation, which co ordinates India’s chromium ore exports, is also likely to raise prices for the April to June 2008 quarter. It has already increased chromium ore export prices for March 2008 by USD 100 per tonne to USD 510 per tonne but with private exporters selling at USD 580 per tonne, industry players feel that MMTC will again raise its prices. High carbon ferrochromium prices in India have risen to over INR 100,000 per tonne.

Japanese SS scrap market to weaken

Japanese stainless steel scrap prices have dropped due to restrained buying. Currently trader's stainless steel scrap purchase price was between JPY 270,000 to JPY 275,000 per tonne. It is estimated that scrap price will fall further in the coming weeks.

Besides, exporter stainless steel scrap export price was at JPY 275,000 per tonne. Trader's stainless steel scrap purchase price was JPY 27,000 per tonne in middle part, but it may fall to JPY 260,000 per tonne.

(Sourced from YIEH.com)

TATA Steel titanium venture facing land issues in TN

It is reported that the INR 2,500 crore TATA Steel’s titanium dioxide project has been stalled with the TATA Steel giving up trying to buy land for the project in Tamil Nadu.

According to TATA Steel officials, it has shut down their offices in Tirunelveli and Sattankulam earlier in 2008 and stopped all attempts to buy land. In the last one year, against an estimated 9,829 acres needed for the project it has been able to get 25 acres.

TATA Steel feels that unless the government intervenes in land purchase, it would be an impossible task. It hopes to make a representation to the government later in April 2008 to support it in buying land.

TATA Steel spokesperson said that the constraints are the legal hassles involved and the arbitrary hike in land prices by middlemen. The main hassle in land purchase is the lack of clarity in legal documents, absence of parent documents and the tough job of tracing the absentee landlords. It had earlier said that it would have to talk to over 4,100 land owners to aggregate the required land area.

TATA Steel is willing to pay the market value as fixed by the government. Land purchase transactions in 3 to 6 months back have ranged around INR 40,000 an acre. But the prices quoted are thrice or four times as much and it would affect the viability of the project.

After nearly a decade since the project was conceived, the Tamil Nadu government entered into an agreement with the TATA Group with its chairman Mr Ratan Tata signing an agreement in the presence of the chief minister Mr M Karunanidhi in June 2007. This was the third such attempt with the state government entering into agreements in 2002 and 2005 to launch the project with the TATAs. The titanium dioxide project, involving mining of 500,000 tonnes of the ore limonite, was touted as one of the two major projects that would drive the economy of the state’s southern districts. TATA Steel had planned to start production by mid 2008.

CGW Camel Grinding introduces Zirconia cut off wheels

CGW Camel Grinding Wheels has introduced a line of 3 inches and 4 inches diameter Zirconia cut off wheels.

Manufactured in the United States, CGW Camel said that its new type 1 cut off wheels are made from premium Zirconia aluminum oxide grain for use on metal, steel and stainless steel.

The new CGW line consists of eight wheels in 60 grit size with a T grade bond. Carton quantity is 50. CGW also offers 3 inches and 4 inches cut off wheels in high speed aluminum oxide and fast cut series.

Shougang to explore chromium ore concentrate in Philippines

It is reported that Shougang Group plans to jointly explore Cr ore concentrate resource in Philippines with a Xiamen based private enterprise. The project is expected to yield 1 million tonnes of chrome ore concentrate per annum valued at more than USD 4 billion.

As per report the private enterprise has set up a joint venture with Shougang Mining in Xiamen with registered capital of CNY 58 million. Shougang Mining takes 51% shares and the rest goes to the private enterprise.

Once the project is approved, the JV will pour CNY 180 million in the first stage to produce 1 million tonnes of 1 million tonnes of Cr ore concentrate and 2 million tonnes to 5 million tonnes of iron ore concentrate each year.

So far the project has gotten nod from Philippine government and is awaiting approval from Ministry of Commerce of China.

Indian iron ore spot prices in downward trends

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has announced the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on April 21st 2008.

The change is with respect to prices posted on March 10th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Newcastle thermal coal price rises for 3rd week

Bloomberg reported that thermal coal prices at Australia's Newcastle port rose for a third week as constraints on exports in New South Wales and Queensland limit supplies amid rising demand from power generators.

According to the globalCOAL NEWC Index, the weekly index for power station coal prices at the New South Wales port gained AUD 5.51 or 4.4% to AUD 130.93 a tonne in the week ended April 18, a seven week high.

Mr Clyde Henderson, a Sydne based analyst at Barlow Jonker Pty, a unit of Wood Mackenzie Consultants Ltd said that “It's still a very tight market. It will be quite a long time before things do much in New South Wales or Queensland and it's still not exactly wonderful out of South Africa and China as well.''

The port, the world's biggest coal export harbor, increased shipments of the fuel by less than expected in the first quarter as wet weather and a lack of available coal crimped loadings early in the period. Xstrata Plc, the world's largest exporter of power-station coal, in February declared force majeure on deliveries from its Newlands mine in Queensland after heavy rain.

Port Waratah Coal Services Ltd in a report said that shipments at Newcastle's two coal terminals rose 6.8% to 22.26 million tonnes in the three months ended March 31, from 20.84 million a year earlier.

ArcelorMittal to buy stake in Coal of Africa

It is reported that the world's biggest steel producer, ArcelorMittal, will buy a 16% stake in South African coal producer Coal of Africa, which has 4 coal mines in South Africa.

Coal of Africa in a statement said that ArcelorMittal will pay around GBP 66.7 million for new shares representing approximately 16% of CoAL's issued capital.

Under the agreement, Coal of Africa will supply ArcelorMittal with a minimum of 2.5 million tonnes per year of coking coal. ArcelorMittal has an option to increase the supply to five million tonnes per year.

ArcelorMittal will also have the right to name one of the directors at Coal of Africa L.

Ferrosilicon prices on upward trend in China

It is report that ferrosilicon market kept running smoothly with the price further increasing last week. Although recent export market appeared to be a little bit quiet, the price kept increasing.

The ex work price of ferrosilicon 75# has been broken through CNY 7,500 per tonne about USD1,074 per tonne in domestic market and RMB7,400 per tonne about USD1,060 per tonne for 72# respectively. It was said that one Japanese purchaser finished his deal with the price of USD 1,630 per tonne CIF Japan for 1,000 tonnes delivered in April.

Domestic price was increasing and said that raw materials for ferrosilicon production showed further increase, especially coke price. Moreover, it is rumored that power cost will be further hiked up. Based on increasing production cost, producers further increased their purchase price.

As per report during the period of July 20th to September 20th those enterprises with high pollution have to be closed down or reduce their production. In order to reduce the loss, the enterprises have made full efforts to produce. As a result, the demand for ferrosilicon appears stronger. Moreover, magnesium ingot price also jumped up both in domestic and international market. Robust magnesium market also has positive influence on high ferrosilicon price.

This week the international market seemed to be quiet, expect Japanese market. It was said that the demand for ferrosilicon was pretty strong in Japan. The transaction price of ferrosilicon 75# was stable at 94 to 97 cent/b in American market. Furthermore, only small deals to be done with Indian purchasers recently according to traders.

It is predicted that the ferrosilicon market will keep robust in the near future, and the price may further increase.

(Sourced from Ferro-alloys.com)

Queensland coal expansion wins environmental approval

It is reported that Gladstone Ports Corporation, the authority for the largest port in Australia's Queensland State, has won final environmental approval for the expansion of a coal export harbor.

Mr Peter Garrett Federal Environment Minister has signed off on the environmental impact study for Wiggins Island Coal Terminal, an expansion of Gladstone port's coal terminal. Which is follows the Queensland government's approval earlier this year.

Ms Anna Bligh Premier of Queensland said that 16 mining companies have made initial bids for capacity at the terminal. She said the terminal would open in 2012 to 2013, employing 500 people in construction and 130 in operation. She added that the first AUD 1.3 billion stage of the expansion would boost Gladstone's coal exports by a third or 25 million tonnes and generate up to AUD 1.8 billion annually.

Mr Paul Lucas Infrastructure Minister said the expansion would take Gladstone's port to its limit handling 75 million tonnes of coal each year. He said "I think it's unlikely that there will be further coal port development there at Gladstone."

The report added the project which got environmental approval from the state government in January will require AUD 500 million of investment to upgrade railways to transport coal to the new terminal.

Chinese coal import and export prices increase in the first 2 months

It is reported that China's import and export coal prices in January and February both rise by a big margin. The export prices increased by 23.1% YoY to USD 72.2 per tonne on average and the import rate for 38.3% YoY averaging at USD 63.3 per tonne.

According to custom statistics, China earned USD 630 million by exporting a total of 8.75 million tonnes of coal in the first two months of this year up by 39.7% YoY and 13.5% YoY respectively. Yet the figure of exports in February 2008 registered about 3 million tonnes down by 32.1% from January 2008.

China's coal imports dropped by 18.2% YoY to about 7.06 million tonnes and the import value totals about USD 450 million for the first two months up by 13.1%YoY. In February alone the imports volume plunged by 28.2% YoY to 2.82 million tonnes.

A Customs report shows that China's coal price is driven up by constantly robust demand as well as international tight supply. And the cost of this material was also raised after the government adopted stricter energy saving and emission reducing and environment protection measures on coal sector. Among other factors, the soaring oil also plays a part in spurring a continuous coal price hike. The report also indicates that, encouraged by the upsurge of international coal price, domestic coal enterprises have got more initiative for exporting coal since the second half of 2007. Due to the bigger profit margin from export, their enthusiasm for coal export can hardly be cooled despite the limited export quotas.

Yasynivka Coke to start reconstruction of coke battery No 4

It is reported that Ukrainian Yasynivka Coke Plant intends to start the reconstruction of coke battery No 4 in May 2008. The battery, with a capacity of 49,000 tonnes per annum will be launched in April 2009.

YASK is working on implementing a cost efficient charge thermal pre treatment technology at its coke battery No 3, which would raise its capacity by 12,000 tonnes per annum.

(Sourced from Millennium capital)

Peabody increases equity position and export capacity in DTA Coal Terminal

Peabody Energy said it is increasing its equity ownership in the DTA coal terminal to 37.5%, increasing Peabody's export capacity at one of the nation's busiest coal ports. DTA coal terminal, located in Newport News, Va., has an annual capacity of up to 20 million tons of coal. DTA coal terminal expects throughput to approximately double in 2008 over 7.5 million tons in the previous year.

The acquisition increases Peabody's total share of DTA coal terminal throughput capability to approximately 6 to 7 million tons annually. This is just one of several initiatives Peabody is pursuing to increase its global coal throughput as demand for seaborne coal continues to grow.

Peabody has the largest seaborne coal sales of any US based company at a time when net US exports are expected to more than triple between 2006 and 2008. Peabody expects to double its US exports in 2008 and has committed to more export coal shipments in the first three months of 2008 than it did in the past two years combined. Peabody has US export agreements from five regions through its production and trading operations.

Mr Richard A Navarre president & chief commercial officer of Peabody said that "We're increasing our US exports and capacity at a time when growing global coal demand and constrained supplies are creating a strong pull for our high-quality products. Peabody is one of the world's largest coal traders, and we're leveraging growth markets with the world's best reserve position and the lead operations in key regions."

Peabody shares ownership in the facility with Alpha Terminal Company and Arch Coal, Inc through its subsidiaries.

Peabody Energy is the world's largest private sector coal company, with 2007 sales of 238 million tons and USD 4.6 billion in revenues. Its coal products fuel approximately 10% of all US electricity generation and 2% of worldwide electricity.

Yanzhou Coal to cut coal sales by 2% in 2008

It is reported that Shandong based Chinese coal producer Yanzhou Coal Mining Co plans to sell 2% less coal in 2008 partly for its decision to cut coal exports.

As per report Yanzhou Coal's projects sales volume of 34.4 million tonnes in 2008, down from 35.11 million tonnes in 2007. Its 2008 export is planned at 500,000 tonnes down from 1.74 million tonnes in 2007.

Yanzhou Coal's plan to cut coal export is in line with the government policy of reducing coal exports while increasing imports. Coal price has been rising quickly in China and on international markets on strong demand. And analysts said the small sales volume decrease will not affect the sales value of Yanzhou Coal.

UK Coal may re open an underground mine

It is reported that mining and property group UK Coal has is looking at re opening a deep mine that could end up being its biggest pit.

Mr Jon Lloyd CEO of UK Coal said the Harworth site in Nottinghamshire was being probed to see if it had up to 40 million tonnes of coal available. That would give it bigger reserves than Daw Mill in the West Midlands Europe's biggest single colliery which currently has around 22 million tonnes. Mr Lloyd said "We are looking