PM launches modernization of SAIL BSL

Indian Prime Minister Dr Manmohan Singh has laid the foundation stone for the INR 11000 crore modernization and expansion project of SAIL’s Bokaro Steel Plant.

At the push of a button, the plaque bearing the inscription of the historic occasion was unveiled before a 10000 strong enthusiastic gathering of the people of Bokaro Steel City. The Prime Minister also unveiled a monument of 4 steel men holding aloft the well known symbol of SAIL atop an open book symbolizing the start of a new chapter in the life of BSL. He also inaugurated the electrification of 10 villages of Bokaro district under the Rajiv Gandhi Rural Electrification Program by pushing a button to start power supply on line in two villages namely Obra and Pordag.

This modernization and expansion program will enhance BSL's capacity for hot metal production from the present 4.585 million tonnes per annum to 7.44 million tonnes per annum, that of crude steel from 4.36 million tonnes per annum to 7 million tonnes per annum and of saleable steel from 3.78 million tonnes per annum to 6.53 million tonnes per annum by the year 2010. The program consists of Greenfield projects for a new steel melting shop of 3.8 million tonnes per annum and a new cold rolling mill of 1.8 million tonnes per annum. In addition, the existing facilities in the coke ovens, sinter plant, blast furnaces, steel melting shop II, hot strip mill and cold rolling mill will be modernization to enhance capacity, efficiency and productivity.

Dr Singh commended the contribution of SAIL in nation building. He reminisced about the epithet of Temple of Modern India given to Bokaro by the first Prime Minister or India Pandit Jawaharlal Nehru and called Bokaro a symbol of self reliance. He described steel as a rising sector and expressed hope that many projects would come up to augment the availability of steel and also create new job opportunities. Dwelling on the immense potential of Jharkhand, Dr. Manmohan Singh talked about a number of infrastructure development projects being taken up in the state and the significant fund outlay for these projects.

Mr Paswan union steel minister heaped fulsome praise on SAIL for its all round achievements in production, efficiency and profitability and excellent work in the area of corporate social responsibility. Referring to the National Steel Policy and the ambitious plans of the Ministry of Steel, he urged the government of Jharkhand to support the plans of SAIL towards expanding steel production capacity in India, especially Jharkhand.

Mr Madhu Koda chief minister of Jharkhand praised the contribution of Bokaro Steel in the development of the state of Jharkhand and assured that the state government would support the expansion plans of the company.

JSW Steel not to hike steel prices for 3-4 months

Mr Sajjan Jindal vice CMD of JSW Steel Limited recently said that it has no immediate plans to raise steel prices and is willing to absorb the ensuing hit in profit margins for up to 4 months.

Mr Jindal said that "Margins will be hit, but we are willing to absorb the impact for another 3 months to 4 months. Beyond that, we have to follow global trends."

He said that the government could artificially keep domestic prices low, but over a longer period, it would force steel producers to cut production and even shut down. He added that "It may be possible to temporarily control prices by artificial means, but in the long term if the industry is hurt, there will be no expansion."

He added that global steel prices may moderate in the medium to long term on slower growth worldwide.

TATA Steel to hold steel prices

It is reported that TATA Steel announced their plans not to increase steel prices for next two to three months shortly after Dr Manmohan Singh prime minister of India visited their plants and advised them to hold prices.

Dr Singh said the nation’s steelmakers should not take advantage of the surge in prices globally and consider the public interest. He said that “The steel industry should be satisfied with short term gains and not seek windfall gains.”

Mr B Muthuraman MD of TATA Steel said “In view of the suggestions made by the Prime Minister of India Dr Manmohan Singh in Jamshedpur today during TATA Steel’s Centenary celebrations function, TATA Steel will hold the prices of its steel products at current levels for the next 2 months to 3 months.”

Steel Authority of India Limited on the weekend and JSW Steel earlier this week, have also made a similar announcement.

The decision is expected to please the government which has been trying hard to rein in surging prices of the metal.

Railway ministry seeks ban on iron ore export

Ruling out any reduction in the freight rate on steel, union railways ministry has suggested increasing the export duty on iron ore by 15% to ensure the availability of mineral for domestic steel producers.

Mr Lalu Prasad Yadav union railways minister said that "Government should ban iron ore export and impose 15% duty to discourage its export. This would help the local industry. I am not in favor of export of iron ore. Not even a small quantity of iron ore should be allowed to be exported."

Mr Yadav said that "It is an irony that a country that imports steel, in a reckless manner refuses a ban on exports of iron ore without considering that if this is not stopped, the country’s mineral wealth will be depleted. Till a complete ban on the country’s iron ore exports is placed, the imposition of customs duty could work as a temporary measure."

Speaking about his ministry, Mr Yadav said that he would lay down his office next year with a surplus of about INR 1,000 billion for the Indian Railways as against INR 690 billion in 2007-08. He added that manpower was the organization’s strength.

He added that “The government had a proposal to retrench the employees as the railways were running into losses. But it was turned down. I felt the great human resource of the railways should not be retrenched, it should be strengthened. It was because of this reason that the railways could ensure its turnaround in the last couple of years."

SAIL BSP awards coal plant handling order to HEC

IANS reported that Heavy Engineering Corporation has got a work order worth INR 10.53 billion from SAIL Bhilai Steel Plant. This will be the biggest ever work order in the history of HEC.

The turnkey work comprises designing, engineering, manufacture, supply, erection, testing and commissioning of the coal plant. HEC will have to complete the work in a period of 30 months.

Mr Abhay Kanth company secretary of HEC said that "In the recent tender for the augmentation of raw material receipt and handling facilities of the Bhilai Steel Plant, HEC was declared the lowest bidder at INR 1053 crore amid stiff competition from Bharat Heavy Electricals Limited.”
He added that earlier, HEC had bagged the work order of BSL worth INR 7.7 billion for manufacturing of raw material and coal handling plant. When we get the work order of INR 1053 crore, then our total work order will cross INR 3,000 crore."

Global Steel files lawsuit against Nigerian government

Independent.co.uk reported that Global Steel Holdings has filed a lawsuit at the International Court of Arbitration over the Nigerian government's decision to renege on its sale of its largest iron and steel plant.

Nigerian government, in addition to canceling the concessions and halting the sale, the government has accused Global Steel Holding of asset stripping and of borrowing almost USD 200 million from local banks by pledging the plants' assets. Global Steel Holding has denies both accusations. Global Steel is fighting the decisions and has now lodged a lawsuit at the arbitration court of the International Chamber of Commerce to have the concessions reinstated and the sale completed.

The report quoted Mr Pramod Mittal vice CMD of Global Steel Holding as saying that "This is a very wrong decision. We have expended so much effort in restarting plants which have not operated for 20 years, if at all. We are absolutely dismayed by these decisions from the new federal government. They have set alarm bells ringing throughout the global business community because it appears there is now in place a firm policy to confiscate all assets which have been bought in good faith by major businesses."

As per report, Global Steel Holdings has invested USD 450 million in the Ajaokuta Steel Company and National Iron Ore Mining Company over the past 4 years, making a USD 192 million down payment on stakes in them. The report cited a company official as saying that Ajaokuta Steel Company went from zero production when it became involved 4 years ago to producing 1 million tonne of steel per year now and was due to be upgraded to produce 5 million tonnes a year.

Global Steel is not the only international company to experience difficulties since Mr Umaru Yar'Adua was elected as Nigeria's president in 2007. The new government has reversed sales of several state assets believed to favor business allies of Mr Olusegun Obasanjo the former president, including assets belonging to Shell, ExxonMobil and Chevron.

Everest Kanto acquires 100% stakes in CP Industries Inc

Everest Kanto Cylinder Limited recently announced that it has successfully completed the acquisition process and has acquired all the assets of CP Industries Inc for an amount of USD 66.3 million.

In March 2008, Everest Kanto had signed an asset purchase agreement with the US based Reunion Industries to buy all of the assets and liabilities of its pressure vessels division CP Industries.

Mr Prem Khurana CMD of Everest Kanto said that "This acquisition will enable EKC to capitalize the robust global demand for specialty and CNG gas storage systems across various countries."

Pittsburgh based CP Industries manufactures and sells large seamless pressure vessels for the containment and transportation of pressurized gases. Reunion Industries' principal activities are to own and operate industrial manufacturing operations that design and manufacture engineered products for specific customer requirements.

Closure notice served on 5 sponge iron plants in Orissa

SNS reported that Orissa Pollution Control Board has decided to close down 5 sponge iron plants in the mining town of Keonjhar in Orissa for creating excessive pollution. The authorities have also directed concerned units to stop the supply of iron ores and coal
The firms are
1. BK Steel
2. Grewal Associates
3. Deepak Steel & Power
4. Hima Ispat
5. Sponge Division of Rungta Mines.

The report cited some sources as saying that these plants are not implementing the required measures to check pollution.

The local people allege that most of the companies here are creating pollution. They said “There is nobody to ensure that if the pollution control machinery in these industries are functioning or not. Apart from these 5 sponge iron plants, there are many more units defying the pollution checking norms. Nuisance of these 5 units is just tip of the iceberg and thorough investigation by the pollution board would unearth more such plants.”

Some complain that the erring industries get prior information of the pollution board staff visits, as the units are located in deep forest and connected through dilapidated roads.

Vizag dealers ask RINL to supply steel directly – Report

BL reported that Visakhapatnam Steel & Cement Dealers’ Association has appealed to the Rashtriya Ispat Nigam Limited to sell steel products directly to them at the plant level to eliminate middlemen and to bring down steel prices in the market.

Mr K Ganesh president and Mr N Venkateswarlu secretary of Visakhapatnam Steel & Cement Dealers’ Association said that the distribution system being followed by the steel plant is a faulty one and of the total steel production of 3 million tonnes, 1 million tonne is being sold through middlemen and the latter were charging a hefty margin.

They said that “Therefore, the steel retail prices are ruling high, as the long term contract holders were adding INR 5,000 to INR 15,000 to the plant price and as a result the steel dealers are unable to provide steel to customers at reasonable prices.”

They said the retail steel prices in the local market could be brought down by INR 10,000 a tonne, if the steel plant agreed to sell steel directly to them. At present, they said, the long term contract holders were buying steel at INR 35,000 to INR 40,000 a tonne from the plant and selling at INR 55,000 or so.

They said that “It is imperative to change the system at least now and Visakhapatnam Steel & Cement Dealers’ Association had passed a resolution on Sunday evening to that effect and that they would strive to change the system.”

Pipavav Shipyard urges for support to domestic ship building sector

It is reported that Pipavav Shipyard has appealed to the Indian government to help the domestic ship building industry to succeed.

Mr Ray Stewart CEO of Pipavav Shipyard, while recently addressing at International Shipbuilding Conference 2008, said that the Korean and Chinese governments have helped their ship building industries attain global number one and two positions, respectively.

Mr Stewart’s topic was “A Spotlight on India” and he called upon the Indian government to come out clear on the issue of continuation of the subsidy scheme for the country’s ship building industry that expired in August 2007.

He said that "This is needed in order to encourage other companies to enter the industry and enable a critical mass to be achieved in India. This would in turn lead to further investment from international and national equipment and material suppliers."

Senior executives from major yards in Japan, South Korea, China and Europe also made their presentations, in addition to contributions from ship owning, steel, financing, ship broking and legal companies.

TATA and RIL among 25 most innovative companies globaly

It is reported that TATA Group and Reliance Group have made it to the league of the world's 25 most innovative companies, riding on the cheapest commercial car Nano and an aggressive growth path, respectively. Both TATA and RIL have made it for the first time to the annual list.

The list is topped by Apple Computer followed by Google, Toyota, General Electric and Microsoft. TATA group is ranked at the 6th position, while Reliance Industries is at 19th spot.

About TATA group, BusinessWeek said that "It jumps onto our list for the first time, fuelled by its paradigm busting USD 2,500 Nano car for the masses. The car, from its TATA Motors unit, is the world's cheapest, thanks partly to a distribution model that sells the auto in kits to entrepreneurs who assemble them for buyers."

About RIL, it noted that "It made it onto our list this year thanks to fans of its aggressive growth. But its ambitious plans to reach into grocery retailing, which is dominated in India by small shopkeepers who have rebelled against corporate entrants, have faltered."

The list, published in the April 28th 2008 edition of BusinessWeek magazine, has been compiled by the US financial publication in collaboration with Boston Consulting Group.

Ennore Port to divert iron ore cargo vessels to Chennai Port

BL reported that Ennore Port Limited has decided to shift iron ore cargo vessels to Chennai port from April 2009, to complete its ongoing expansion projects on time without cost overrun. As on date, 25% of the dredging work is over and the liquid cargo terminal will be ready for commissioning by September 2008.

Mr S Velumani CMD of Ennore Port Trust said that are not competing with the Chennai Port, but are keen to lend a helping hand.

He added that “In fact, the Chennai port is eagerly awaiting early completion of the Ennore port’s expansion plan so that it can move iron ore and coal cargo vessels to the modern port and transform itself into a clean and greener port by giving preferences to general cargo, passenger ships and cruise.

According to Mr Velumani, Ennore port has completed dredging 1.1 million cubic meters as against 4.2 million cubic meters and it will be completed by August 2008.

in 2007, Ennore Port handled about 2.2 million tonnes of iron ore through temporary facility. It is now constructing a new facility costing INR 480 crore that can handle 12 million tonnes of iron ore per annum. Ennore port is also in the process of setting up a common user coal terminal with 8 million tonnes per annum capacity at a cost of INR 400 crore and a liquid cargo terminal with 3 million tonnes per annum capacity costing INR 200 crore. The new iron ore and coal terminals will be ready by August 2010, and the containers berth by April 2011.

Ennore port achieved operating income of INR 127.21 crore in 2007 as against INR 101.04 crore achieved in 2006. The profit before tax stood at INR 36.01 crore as against INR 30.64 crore.

DVC to increase installed capacity to 11,000 MW by 2012

IANS reported that Damodar Valley Corporation will increase its installed capacity to 11,000 MW from the current 2,400 MW by 2012.

Mr Jairam Ramesh union minister of state for power said that "DVC is to achieve a remarkable growth during the next 4 years with its installed capacity reaching 11,000 MW from the current 2,400 MW by 2012. Out of this total 11,000 MW capacity, 99% would be coal based." He added that 250 MW Mejhia expansion unit of DVC would start functioning from May 2008 and two more expansion units of 250 MW each would be commissioned at Chandrapura in Jharkhand in 2008.

Mr Ramesh said that DVC would require a total investment of INR 400 billion in the next 4 years and for that it would have to borrow capital from the Power Finance Corporation, Rural Electrification Corp and commercial banks. He added that "DVC is also in a process to set up a wholly owned subsidiary so that it can go to public and raise resources. An agency has been appointed to undertake necessary study in this regard."

Mr Ramesh said that DVC would set up a world class research and development centre with an investment of INR 1 billion at Rajarhat Township near Kolkata. He added that "It will be set up in collaboration with Indian Institute of Technology Kharagpur. The centre will start its activities from May 2008 and would be run at a rented place but later will be shifted to DVC’s own premises. A piece of land has already been acquired for the purpose."

Mr Bajaj does not want government intervention on steel prices

PTI reported that Mr Rahul Bajaj chairman of Bajaj Auto and member of Rajya Sabha said that the government should not act toward controlling steel prices.

Mr Bajaj said that "I do not want government intervention even though Bajaj Auto consumes steel. I do not want Mr Ram Vilas Paswan or Mr Chidamabaram to determine steel prices."

He, however, added that the sharp increase in prices of steel and aluminum has solidly impacted the auto industry.

On alleged cartelization among steel producers, he said that "I do not have any proof of cartelization. However, market forces will determine prices till there is a shortage."

Reliance Power to float a shipping subsidiary to import coal

TNN reported that Anil Dhirubhai Ambani Group’s Reliance Power Limited, after secured coal mines in Indonesia, is now planning to float a shipping subsidiary to cart the coal to India and is looking at an investment of around USD 1.2 billion initially.

Reliance Power has drawn up an ambitious strategy for its shipping business in the next three years. It plans to have a fleet size of almost 12 vessels, including 5 capsize carriers. It has also appointed international brokers like Clarkson to work out finer details, and the final orders are expected to be placed in about two months. Shipping yards in China, Japan and Korea are to be tapped for ship building.

As per report, Reliance Power plans to have 4 to 5 capsize vessels, having capacities of between 160,000 tonne and 200,000 tonne and around 5 Panamax ships. As of now, GE Shipping is the only Indian company to own capsize vessels, which require a draft of almost 18 meters.

For Reliance Power, this will be a backward integration move, as it will help the company in transportation of coal, the fuel for its power projects. The proposed shipping company will have an assured business of around 20 million tonne annually in the initial stage, which is equivalent to the coal required for Reliance Power’s Krishnapatnam and Shahapur plants. Reliance Power has won the rights to build and operate two ultra mega power projects in the past 6 months.

PGCIL to lease bandwidth for TV

BS reported that Power Grid Corporation of India is planning to offer bandwidth on its fiber optic network to entertainment companies for the first time.

The report cited a PGCIL official as saying that "We plan to enter the entertainment space with a joint venture in Andhra Pradesh. We are talking to two private companies which will actually roll out the business. The move is aimed at leveraging our fiber optic network. Also since the rate of return on investment in our core electricity transmission business is fixed at 14%, we hope to garner greater revenues from other businesses."

PGCIL has a 20,000 kilometer long fiber optic network and leases bandwidth to all major telecom players like Bharti Airtel, Reliance Communication and BSNL. It is also planning to rent out its over 20,000 transmission towers to cellular and entertainment companies.

PGCIL has recorded revenues of INR 125 crore from its telecom business in 2007-08 up by 62% YoY as against INR 77 crore in 2006-07. Mr RP Singh CMD of PGCIL said that "We plan revenues of around INR 300 crore from our telecom business by 2010."

PGCIL owns and operates the bulk of India’s inter state power transmission network and transmits about 45% of the power generated in India.

Futures trading not fueling prices – Expert panel

FE reported that an expert committee, whose report is being awaited by the government to decide whether futures trading on essential commodities be banned, has found no firm evidence that such trading was leading to rise in prices.

The committee's draft report said that "It cannot be concluded emphatically whether future trading has in anyway fueled increase or volatility in prices of agricultural commodities."

The committee pointed out that blaming the commodity market for fueling inflation is not unique to India and it is a global phenomenon and markets get accused in the developed countries such as the US.

In view of criticism about futures trading, the report said it is essential to minimize the potential adverse impact of futures trading on prices of agricultural products. It added that "Well functioning futures markets have the potential of bringing about price stability over medium to long term."

It may be noted that the centre had set up an expert committee under the chairmanship of Planning Commission member Mr Abhijit Sen to study the impact of futures trading on prices of agricultural commodities. Mr Sen said that he would submit the report this week for which the draft was circulated among the members of the Panel on Saturday.

RPG to enter into power trading

ET reported that, with an eye to participating in the growing national electricity market, RPG is taking big strides in the power trading spectrum and has floated a brand new corporate entity called RPG Power Trading, which will have offices in Kolkata and Delhi.

The Registrar of Companies has issued relevant statutory clearances. RPG Power Trading will shortly put in an application with Central Electricity Regulatory Commission for a trading license and to resolve interconnection issues.

Mr SK Dubey has been appointed as CEO of RPG Power Trading from his earlier post of senior executive at Power Grid Corporation India Limited.

RPG group’s decision to get into power trading is significant in the light of group flagship CESC’s plans to set up mega Greenfield generating stations in Haldia, Jharkhand and eventually Orissa. The objective is to trade the off peak generation surplus of these future group ventures in addition to the existing 350 to 400 million units of annual off peak surplus from existing CESC units. The traded power would largely cater to the needs of power deficient northern and western states.

Energy needs of cement industry may double in 2 years – Experts

According to Mr M Vasudeva director general of National Council for Cement & Building Materials, the energy requirement of cement industry is likely to go up by over 50% in the next 2 years and there is a need to adopt more efficient and eco friendly fuels.

Mr Vasudeva, while addressing at the inaugural session of ”Green Cementech 2008” recently, said that the total capacity of the cement industry is poised to reach 350 million tonnes by the end of the 11th Plan from 185 million tonnes at present.

He said that NCB is currently working on nanotechnology based cement production methods which will be more energy efficient and cause less pollution. He added that "Further, we have also submitted a draft on eco friendly norms to be adopted by cement producers to the Pollution Control Board."

Mr KC Jain senior president of Kesoram Cement said that almost all players in the industry had taken up capacity expansion projects. He added that "The capacity expansion being undertaken at present is first of its kind, after removal of controls on cement in 1989. The growth has never been like this."

Mr G Jayaraman chairman of Cementech 2008 said that cement plants are now exploring the use of alternative and waste fuels such as municipal solid water, industrial waste, used tyres and rice husk to replace the use of coal in the kilns. He added that "Over the last 10 years, the electrical energy consumption in the cement industry was reduced by 26.7%, besides an 11% reduction in the thermal energy consumption."

Inflation is imported phenomenon – Mr Chidambaram

Mr P Chidambaram union finance minister, while addressing a development seminar called “Kannur Vision 2020”, said that the rise in prices being experienced by India now is an imported phenomenon.

Pointing out that investment is the key to growth Mr Chidambaram said that it should come from the savings of the people. He added that "We also should tap the savings of other countries as well."

Addressing the function, he said that rise in prices of steel and cement now is the result of a serious mismanagement of the demand supply position.

Market commentary on ship breaking

GMS Weekly reported that ship recyclers remained uncertain about the direction in which their local markets are moving.

It said that “In Bangladesh, this week was accentuated by lack of activity. The government backed price ceiling on ship steel has ship recyclers bewildered. In both India and Pakistan, local steel prices have fallen in spite of no such orders from the government.”

It added that “Cash Buyers are finding it increasingly difficult to judge the market as well. While the supply of tonnage remains consistent, most owners are not ready to accept today’s lower levels and as a result, ships that were expected to be sold this week remained unsold.”

It said that “Unless steel prices unexpectedly increase over the next few weeks, it will be very hard to see demo prices return to the roaring. The news of price ceiling on steel prices in Bangladesh, convinced Indian and Pakistani ship recyclers, that they would be able to buy ships considerably cheaper than before.”

However, while there is no denial of a correction, Bangladesh did surprise her neighbors once again by benchmarking prices well above other markets. As a result, Bangladesh took back the pole position in demo rankings.

GMS demo rankings for the week are summarized below

In USD/lt ldt
(Sourced from GMS Weekly)

Level playing field sought for domestic dredging firms

It is reported that Indian Dredger Owners Association has objected to the pre qualification criteria laid down by the major ports when they call for tenders to execute dredging works, on the ground they are tailor made and are so stringent that no domestic dredging companies having Indian flag dredgers will be able to qualify.

While appreciating the spirit behind the Dredging Policy guidelines laid down by union shipping ministry, the association has written to the ministry that the domestic dredging companies must be given fair opportunity to participate in dredging by ensuring that the major ports do not deviate from the policy guidelines.

Citing the example of the tenders floated by the Mumbai Port Trust recently for capital dredging work for the proposed projects I and II, the association pointed out that the conditions prescribed by the ports that the bidders shall own trailing suction hopper dredgers are restrictive. It should be left to the bidders to charter or lease the dredgers, as even in the Sethusamudram ship channel work, chartered dredgers are working.

Sources said that the shipping ministry had constituted a committee of chairpersons of major ports to study various aspects of dredging contracts and make suggestions for changes in the procedure to be followed in inviting tenders. However the ministry, without waiting for the recommendations of the committee, had announced the new Dredging Policy for a period of three years in 2007. The meeting convened in May 2007 to discuss suggestions regarding the new dredging policy was postponed.

The sources added that the association has, therefore, represented that in the light of the suggestions, the policy guidelines may be reviewed.

Revised DPR for Talong hydro power project

It is reported that as the detailed project report prepared by Central Electricity Authority for the 160 MW Talong hydro electric power plant in East Kameng district of Arunachal Pradesh has insufficient data, a revised DPR is likely to be prepared.

The project being implemented by North Eastern Electric Power Corporation will develop the project on build, own, operate and transfer basis. The power unit, to be built at a cost of INR 900 crore, will be funded through a 70% debt component and the balance through equity. The project is to be commissioned by end of 2011.

It has appointed GMR Energy as the build, own, operate and transfer contractor for the project. GMR Energy has already signed a MoU with the Arunachal Pradesh government for the project. The agreement entails implementation, operation and maintenance of the proposed power project on River Kemeng in Seppa district.

Suzlon Energy secures 200 MW orders in China

Suzlon Energy Limited recently informed BSE that its subsidiary Suzlon Energy (Tianjin) Limited has secured orders totaling nearly 200 MW of capacity for wind farm projects in China.

The first order from Ao Lu Jia New Energy Development Limited, calls for the delivery of 148.5 MW of wind turbine capacity through 99 units of the S82 1.5 MW turbines for use in 3 wind farms. Deliveries for the first wind farm are scheduled for shipment during the second quarter of financial year 2008-2009.

Whereas the second order from Beifang Longyuan (North Union) calls for the delivery of 50 MW of wind turbine capacity through 40 units of the S64 1.25 MW turbines, scheduled for delivery in the first quarter of financial year 2009-2010.

Work on Chennai Metro to start in July 2008

Dr E Sreedharan MD of Delhi Metro Rail Corporation said that work on the first phase of the Chennai Metro is expected to start in July 2008, with tenders being floated for the same in the next 2 months.

The project, to be completed in 2 phases in about 6 years and encompassing 2 lines in the first phase, will be built on standard gauge, unlike the Delhi Metro that is built on broad gauge.

Dr Sreedharan said that phase I of the project, extending over 23 kilometer, will start from Washermanpet through Broadway, Central Station, Mount Road, Teynampet, Guindy, Kathipara Junction and end at the Chennai Airport. About 14 kilometer of this line, from Teynampet to the Airport, will be an elevated section, the rest being underground. It is this section for which work is expected to commence first and will be completed in about 3 years.

The second line under phase I will extend for 22 kilometer starting from Central Station via Poonamallee, Egmore, Shenoy Nagar, Anna Nagar, Koyambedu, Inner ring road, Kathipara junction and end at St. Thomas Mount. An interchange facility for switching lines with those of the railways will be available at Alandur, St. Thomas Mount and Central Station.

The total cost of the first phase is estimated at about INR 11,000 crore, all of which will be financed through debt and loans. A special purpose vehicle called Chennai Metro Rail Limited has been floated by the state and centre with 50% investment each to carry out the project. This entity will contribute about 40% to the project cost, the rest being financed by the Japan Bank for International Cooperation.

CLP India to invest INR 500 crore in Samana power project

PTI reported that power company CLP India is planning to invest INR 500 crore in its wind power plant at Samana in Gujarat.

Mr Andrew Brandler CEO of CLP said that "The Samana project makes an important contribution to its renewable energy portfolio, which is growing both geographically and in terms of its contribution to the company's generating capacity."

The 100.8 MW plant is the largest power project undertaken by CLP and involves the building of 126 turbines of Enercon E53, each with a capacity of 800 KW. The project is expected to be completed by January 2009.

CLP India is a wholly owned subsidiary of Hong Kong based CLP Group.

DVC to raise INR 1,000 crore via SPV

BS reported that Damodar Valley Corporation will raise INR 900 to INR 1000 crore through a special purpose vehicle in about 6 months and has appointed an international consultancy company KPMG to prepare a feasibility study for the purpose.

As per report, DVC would initially dilute 10% stake in the SPV and raise between INR 900 and INR 1000 crore. The SPV would be a wholly owned subsidiary of DVC. A DVC official said that "We would initially offload 10% of the stake and watch how the market reacts, although the final call would be taken once we get the KPMG report. The size of the issue would be anything around INR 900 to INR 1000 crore."

The official added that "Being a public enterprise, there are some sentiments attached. So it is difficult to gauge the public reaction to the IPO announcement. Therefore, KPMG has been asked to study the legal views on the future stake holding in the SPV and assess the possible reactions from different quarters."

Mr AK Burman chairman of DVC said that it has not decided on the projects that would be undertaken by the proposed SPV. He added that "We have appointed KPMG to study and suggest measures towards the IPO. KPMG would complete the report shortly and we would decide accordingly. We are yet to decide on whether we would shift some of the existing projects or have a complete new set of projects."

1 MW solar power plant costs INR 16 to INR 20 crore

Mr Vilas Muttemwar union minister of state for new & renewable energy said that the estimated capital cost of setting up a solar power plant is in the range of INR 16 crore to INR 20 crore per MW.

He added that the cost of generation is around INR 12 to INR 15 per unit, depending upon technology efficiency etc.

Mr Muttemwar said that the government is taken several steps in order to make solar energy systems more cost effective. They include research & development, improve the efficiency and performance of solar energy systems, incentives to manufacturers and others and subsidy to encourage utilization of solar energy systems.

Sirmaur hydel power project to completed by July 2008

Projects Today reported that Delhi based Himalayan Crest Power's 3 MW hydel power project near Ghiri River in Sirmaur district of Himachal Pradesh is scheduled for completion by July 2008, as around 96% of the project work is completed.

The INR 17.47 crore project was earlier scheduled for completion by February 2008, but is delayed due to delay in civil works. Currently, work on the project is underway and after completion the power generated from the proposed power unit will be supplied to HPSEB.

Shanti Flat & Foundation is the civil contractor for the project.

Hero Group inks 40:60 JV with Daimler AG for truck unit

It is reported that Hero Group has signed 40:60 JV with Daimler AG to form new company called Daimler Hero Corporation Limited with an investment of INR 4,400 crore and is scouting for locations for this Greenfield venture.

Mr Sunil Kant Munjal chairman of Daimler Hero Corporation Limited said that "It could be Chennai, Pune or Haryana. A decision will be taken within the next 2 months."

He added that it plans to manufacture light and medium CVs initially, and heavy duty vehicles by 2012. Mr Munjal said that "There are multiple drivers for the truck industry in India now, like the economy growing fast, better roads connectivity ensuring that large volumes can be transported, modernization of supply chains, improvement in logistics and specialized application needs in the pre mixed cement and mining industries."

Mr Andreas Renschler member of Daimler AG board of management and also head of Daimler trucks said that "Our strategy in India is two pronged. First, we plan to target the country, which is a key high growth market. Next is to make India a production base for the export market."

BHEL wins INR 2,030 crore supply order in Bihar

Bharat Heavy Electricals Limited has won orders worth around INR 2,030 crore from Bharathiya Rail Bijlee Company Limited for supply and installation of the main plant package at the 1,000 MW Nabinagar Thermal Power plant project in Bihar.

Slated for synchronization in the 11th Plan, the units will add 24 million units every day to the grid on commissioning.

While BHEL Tiruchirapalli will manufacture steam generators with electrostatic precipitators, the auxiliaries and others will be made ready by the Ranipet unit.

Talcher Bar Association threats for economic blockade

SNS reported that the lawyers of Talcher Bar Association have threatened to impose economic blockade paralyzing coal production and transportation soon if their 10 point charter of demands are not met by the government immediately.

They also announced to go for Talcher bandh shortly to press for the fulfillment of demands. The lawyers’ body is on relay dharna in front of sub collector office since April 2nd 2008 demanding fulfillment of their demands.

The demands include the setting up coal bearing tribunal at Talcher and separate district for Talcher. The demands also include the establishment of district judge court at Talcher, new coal company at Talcher and routing of all express trains via Talcher station.

Presenting justification to locate the coal bearing tribunal at Talcher, they said that no one outside Talcher is affected by Coal Bearing Act nor not a single inch land outside Talcher is acquired under this act .So there is a legitimacy of setting up the tribunal at Talcher.

CRIS receives PM award for excellence in public administration

Unreserved ticketing system developed by Centre for Railway Information System has received the Prime Minister’s award for excellence in public administration for the year 2006-2007. The award was conferred by Prime Minister Dr Manmohan Singh at a function on the occasion of Civil Service Day.

A 28 member project team lead by Mr Vikram Chopra director operations of CRIS has received the award on behalf of the Indian Railways from the Prime Minister.

The unreserved ticketing system has been developed to cater to 16 million unreserved passengers who travel on Indian Railways everyday. In addition to providing more than 3600 points of sale at 1300 locations on Indian Railways, this system provides a facility to passengers to purchase their tickets not only from the journey origination stations but also surrounding stations to reduce the queues at booking counters on major stations.

As an extension of unreserved ticketing system, CRIS has developed automatic ticket vending machine which has a user friendly interface. These machines have become very popular in Mumbai suburban area where more than 60,000 passengers are buying their journey tickets daily through the ATVMs.

Indian Railway freight revenue up by 13.86% YoY in 2007-08

Indian Railways has generated INR 47558.78 crore revenue earnings from freight traffic during the fiscal 2007-08 up by 13.86% YoY as compared to INR 41768.35 crore during the 2006-07. It carried 794.21 million tonnes of freight traffic during fiscal 2007-08 up by 8.98% YoY as compared to 728.77 million tonnes.

The earnings from freight traffic during the month of March 2008 was INR 4856.96 crore up by 18.22% YoY as compared to INR 4108.37 crore during March 2007. It carried 78.48 million tonnes of freight traffic during March 2008 up by 8.35% YoY as compared to 72.43 million tonnes of freight traffic.

Details of total earnings during March 2008 are

Earning in INR crore
Volume in million tonnes

EU steel prices soar again prompting buyers to seek imports

UK based MEPS said that “In Germany, consumption is normal but service centre inventories are building as buyers make speculative purchases because they fear material will continue to be in short supply.” MEPS said that “Additionally, they anticipate even higher prices in the future. By late third quarter, stock levels could be too high for demand. The general economic situation is not good. The high value of the Euro is having a negative effect on exports of manufactured goods and energy costs are rising. Nevertheless, the European mills will probably announce another round of price advances for period three. Third country offers are not attractive at present but may well become so, due to the weak US dollar.”

MEPS said that “Prices are rocketing in the French market with increases taking place on a weekly basis. Meanwhile, demand is described as average with stock levels satisfactory at both distributors and end users. Availability is constrained as imports from non EU sources continue to decline. Sales to the auto sector remain fairly good but activity in the home appliance industry is weaker.”

MEPS added that “Despite relatively low consumption due to a poorly performing general economy, steel prices continue to escalate in Italy, sustained by supply side restrictions. There are virtually no workable offers from third country sources. Moreover, many market players believe that European mills are maintaining low output levels in order to drive values up using higher input costs as justification. Certainly, the producers are talking of further hikes through to August. Inventories are normal at the service centers, where resale prices are failing to keep pace with the steel makers' increases.”

MEPS said that “Supply is limited in the UK with virtually no material available from third countries. Domestic mills are already preparing customers for a huge price hike in the third quarter. In the meantime, values for the remainder of period two continue to soar, despite muted demand and no sign of any significant improvement. Distributors are keeping stocks on the low side because they do not want to be left with high priced inventories as they run into the holiday period.”

MEPS said that “Belgian buyers are being informed that the second quarter is nearly fully booked and ArcelorMittal is claiming a further increase of around EUR 80 per tonne for July deliveries. Demand is stable at a normal level but there is a lack of material in the market place and customers complain that mill delivery delays are becoming more pronounced. Stock volumes are reasonable but with gaps appearing because of the extended lead times. Non-EU import offers are scarce.”

MEPS added that “Spanish values continue on an upward trend but service centers report weak demand, particularly from the construction sector where activity levels are crashing. Customers are becoming increasingly cautious because they fear a price reversal later in the year. They are buying for their immediate needs with no speculative purchasing whatsoever. Stocks at distributors are on the low side of normal with some shortages developing for certain grades/sizes. More offers are becoming available from third country suppliers but prices are still very high.”

Salzgitter to increase Q3 steel prices by EUR 50 per tonne

Reuters, citing Mr Wolfgang Leese CEO of Salzgitter, reported that Germany's second largest listed steelmaker Salzgitter will raise prices in the third quarter by EUR 50 per tonne.

Salzgitter had said late last month it would raise prices again in the third quarter following a EUR 100 per tonne hike in the second.

Mr Leese cautioned that the price it pays for coking coal could rise to USD 350 per tonne to USD 370 per tonne from a current USD 300 per tonne.

Mr Leese said that the first quarter developed in line with plan and he saw no reason to question his full year guidance.

Global DRI production in March 2008 up by 10.9% YoY

International Iron and Steel Institute have released the production figures for direct reduced iron for the month of March 2008. The global production of DRI in March 2008 was 4.885 million tonne up by 10.9% YoY.

India retained the top slot with 1.6 million tonne production accounting for 33.9% of share out of total global DRI production.

In million tonnes
Source – IISI

Global crude steel production in March 2008 up by 6.1% YoY

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute was 119.511 million tonnes in March 2008 up by 6.1% YoY as compared to March 2007.

The growth in crude steel production during March 2008 among regions was again led by Asia as usual.

In ‘000 tonnes
Source – IISI

Top 20 nations

In ‘000 tonnes
Source – IISI

ArcelorMittal ready to invest EUR 300 million in CO2 capture in France

Thomson Financial reported that ArcelorMittal is ready to invest EUR 300 million in a pilot CO2 capture project in France if it has the support of the French government.

The report quoted Mr LN Mittal CEO of ArcelorMittal as saying that other governments have said they are interested in the CO2 project but that his strong preference is for France.

ArcelorMittal is facing hostility in France after it confirmed plans to close parts of a steel facility at Gandrange in eastern France, hitting 575 jobs. In an interview with Les Echos, Mr Mittal reiterated that all the workers affected by the plan will be offered posts elsewhere within the group and observed that the group is investing EUR 330 million renewing furnaces at the Florange plant a few miles a away.

PT Krakatau privatization to harm national interest – Lawmaker

ANTARA News reported that Indonesia government should cancel its plan to privatize state owned steel company Krakatau Steel if the move means sacrificing the country’s ability to meet its defense needs.

The report quoted Mr Mutammimul Ula a member of the House of Representatives Commission I on defense affairs as saying that "The privatization of the steel company should not harm the country’s interest, much less sacrifice the interest of the nation’s defense needs.”

He said that "Almost all of the country’s main armament industries need iron ore as raw material. National metal industries have contributed a lot to the procurement of the nation’s main defense system equipment.” He added that the government should show its commitment to empowering national defense industries, in this case Krakatau Steel as a state owned strategic industry, to maximize its production capacity.

Mr Ula said that Being a strategic asset, Krakatau Steel should be maintained as it was the government’s mainstay to develop domestic defense industries. He said that "We should not lose our strength as a state by letting foreigners take over all of our assets. Therefore, I want to stress once again that the government should cancel its plan to privatize Krakatau Steel.”

CSC update for March 2008 production

Taiwanese steel major China Steel Corporation has given the following update on production during March 2008

In tonnes

In million TWD

CSC said that revenue of Q1 of 2008 increased compared with Q4 of last year due to higher ASP and Q1 pretax profit is TWD 14,336 million declined 4.26% QoQ.

Alter Trading acquires Mississippi salvage yard

Alter Trading has acquired Jake’s Auto Parts, a salvage yard based in Mississippi. The facility will now be known as Alter Metal Recycling. Alter’s acquisition enables Alter’s continued growth in the southern United States.

The facility is located at Gulfport in Mississippi and is situated on 10 acres of concrete. The location was originally established as a salvage yard in the mid 1970s; in 1998, Jake’s Auto Parts took over management. Alter will continue to accept all types of ferrous and non-ferrous materials including old cars and catalytic converters.

Mr Cody Waite will serve as facility manager and Kirk Polk will serve as account executive.

Dongkuk to raises steel prices by 23%

Reuters reported that South Korea's third largest steelmaker Dongkuk Steel Mill would raise prices of steel plates used in shipbuilding by 23% to pass on soaring global raw material prices.

Dongkuk, which raised steel prices by 13% in February, said it would increase prices by another KRW 190,000 (USD 191.2) to KRW 1,010,000 per tonne starting Friday.

Global steel firms are raising prices as rising costs stemming mainly from higher prices of raw materials such as iron ore and coking coal eat into profits.

AK Steel Q1 net income up by 60% YoY

AK Steel reported net income of USD 101.1 million for the first quarter of 2008, an increase of 60% YoY compared to net income of USD 62.7 million for the first quarter of 2007, which included a USD 15.1 million pre tax, non cash pension curtailment charge.

Net sales in the first quarter of 2008 were USD 1,791.4 million on shipments of 1,578,400 tons compared to net sales of USD 1,719.9 million on shipments of 1,596,200 tonnes for the year ago first quarter. The company said its average selling price for the first quarter of 2008 was a record USD 1,135 per tonne, a 5% YoY increase over both the USD 1,078 per ton in the first quarter of 2007 and the USD 1,079 per ton level reached in the fourth quarter of 2007. The increase in selling prices resulted from higher spot and contract steel prices, coupled with increased raw material surcharges.

Operating profit for the first quarter of 2008 was USD 169.7 million, or USD 108 per ton, an increase of about 40% YoY compared to the operating profit of USD 120 million or USD 75 per ton, in the first quarter of 2007, which included the previously noted pension curtailment charge.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "AK Steel is off to an excellent start in 2008 as we forge ahead on our plan to create more value for our shareholders. We executed well during the first quarter, and our employees were again recognized for their excellence in safety, quality and productivity."

Sidertul to increase crude steel output

Mexican longs producer Siderurgica de Tultitlan has commissioned its expansion project for raising its crude steel capacity by 25%.

The expansion project will increase its capacity to 500,000 tonnes per year. Sidertul is a subsidiary of Gerdau that produces and transforms steel into round reinforcing bars, angles, flats, rounds, squares and channels.

(Sourced from YIEH.com)

US weekly crude steel production up by 1.9 YoY

American Iron & Steel Industries reported that in the week ending April 19th 2008, US’s raw steel production was 2.154 million net tons while the capability utilization rate was 90.3%. Production was 2.113 million net tons in the week ending April 19th 2007, while the capability utilization then was 88.3%. The current week production represents 1.9% increase from the same period in 2007.

Production for the week ending April 19th 2008 is up 0.9% from the previous week ending April 12th 2008 when production was 2.134 million net tons and the rate of capability utilization was 89.4%.

Adjusted YTD production through April 19th 2008 was 33.238 million net tons at a capability utilization rate of 88.7%. That is a 4.4% increase from the 31.927 million net tons during the same period last year, when the capability utilization rate was 84.3%.

District wise production for the week ending March 15th 2008
1. Northeast Coast: 180
2. Pittsburgh/Youngstown: 215
3. Lake Erie: 91
4. Detroit: 106
5. Indiana/Chicago: 515
6. Midwest: 258
7. Southern: 694
8. Western: 95
(In thousands of net tons)

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

SDI reports record sales and earnings for Q1

Steel Dynamics, Inc announced Q1 2008 net income of USD 143 million reflecting the company’s recent two for one stock split. Net income increased 40% and net sales more than doubled to USD 1.9 billion, compared to the first quarter of 2007. Comparing first quarter 2008 results to the fourth quarter of 2007, net income grew by 46% and net sales increased by 31%.

SDI said that its first quarter 2008 results benefit from the company’s acquisitions of The Techs and OmniSource Corporation. A major factor positively impacting the quarter results is a significant improvement in steel operations results. First quarter steel shipments of 1.6 million tons reflect increased sequential shipping volumes by all six steelmaking operations. Flat rolled steel shipments from the Flat Roll Division and The Techs were particularly strong, together totaling 947,000 tonnes, an increase of 109,000 tonnes. Shipments by the four long-products steel mills increased by 7% sequentially.

Another significant impact on the quarter’s increased net sales and earnings is OmniSource Corporation. OmniSource was accretive to first quarter earnings by approximately USD 0.09 per diluted share. During the quarter, OmniSource experienced very strong demand for recycled ferrous scrap, both from the Steel Dynamics mills and from other mini mills, integrated steel mills, and foundries. Its favorable inventory posture entering the quarter put OmniSource in a position to capitalize on high scrap demand during the first quarter.

Mr Keith Busse chairman & CEO of SDI said that “SDI’s first quarter results exceeded our March 11 earnings guidance of USD 0.625 to USD 0.65 per diluted share, primarily due to the continued strengthening in the quarter of the flat roll steel market and the metals recycling business. Prices for both flat-rolled steel and scrap climbed faster and higher than we had anticipated, accelerating the margin growth we had predicted for the second quarter. Current market conditions suggest that resource cost increases can be offset by surcharges and selling price adjustments resulting in growing margins.

He added that “Our outlook for 2008 continues to be very positive. Even with weakness in the US economy, we continue to see strong demand for flat-rolled steels, due principally to constrained domestic supply, low steel inventories, and limited steel imports. Second quarter backlogs for structural steel, merchant bars, and SBQ remain strong due to relatively steady demand as well as limited import activity. Likewise, we expect our metals recycling business to continue to perform well during this period of high demand for ferrous and non ferrous recycled resources and pricing above historical levels. As long as global steel demand remains high and global steel prices meet or exceed US prices, we should expect that steel imports into the US will remain at a low level especially in light of a weak dollar. The path that resource costs and product pricing will take in the second half of the year is uncertain although we believe that second quarter as well as third quarter domestic market conditions will remain favorable, allowing us to adequately recover any increase in costs. As a result, our preliminary earnings estimate for the second quarter of 2008 is in a range of USD 0.80 to USD 0.90 per diluted share.”

Harsco Q1 sales up by 18% YoY

Worldwide industrial services company Harsco Corporation reported record first quarter 2008 results from continuing operations. First quarter 2008 diluted EPS from continuing operations was a record USD 0.67, up by 24% YoY from USD 0.54 in the first quarter of 2007. Income from continuing operations was a record USD 56.9 million, compared with USD 45.4 million last year, an increase of 25% YoY.

Overall operating margins were 10.1%YoY compared with 10.3% in the first quarter of last year. First quarter sales totaled a record USD 988 million up by 18% YoY from sales of USD 840 million in the same period last year. The weaker US dollar in relation to foreign currencies added approximately USD 62 million to first quarter sales and approximately USD 6.6 million in pre tax income, but the weakening dollar is also a key factor in the Company’s increase in fuel costs. The Company was particularly impacted during the quarter in its Mill Services Segment, which incurred higher fuel costs in excess of USD 5 million over this time last year.

Mr Salvatore D Fazzolari CEO of Harsco said that “We are pleased with such a strong start to 2008. Notwithstanding the uncertainties that many companies face today, we remain confident in our positive outlook for the full year. Having created a well-balanced company serving fundamental industries on a global scale, we believe the Company’s stockholders will continue to benefit throughout 2008 and beyond. We are particularly gratified by the operational progress shown by our Minerals & Rail Services and Products group. Led by significantly improved year-over-year results from our Harsco Track Technologies and Excell Minerals Divisions, this group is becoming an equal partner with our other two segments in providing earnings balance across all three platforms of our business. Our Access Services Segment turned in another solid quarter of growth. We continue to have a very positive outlook for this Segment and expect further improvements in operating performance as the year progresses.”

Mr Fazzolari said that “Our Mill Services Segment did not perform up to our expectations in the quarter. The single biggest contributing factor to the Segment’s underperformance in the quarter was sharply higher fuel prices compared with last year. While many of our contracts allow us to recoup the majority of these higher prices, it takes between six and twelve months to do so. In addition, we continue to aggressively pursue a number of margin improvement initiatives, as previously discussed in prior quarters. While the fundamentals of this business remain sound and our contract backlogs continue at record levels, it will take several quarters before operating margins in our Mill Services Segment return to more historical levels. The overall balanced company that has been created leaves us with a high degree of confidence that we will continue to meet our growth objectives for 2008 and beyond.”

2nd steel worker dies in week

The Patriot News reported that for the second time in less than a week, an industrial accident has claimed the life of a Dauphin County man.

According to county coroner Mr Graham Hetrick, Mr Roger H Prichard 58, of Hummelstown was killed Friday afternoon after he got trapped in between a piece of machinery at the ArcelorMittal Steelton plant, causing massive internal injuries.

Five days earlier, Mr Jaren Hoover 19, the son of Dauphin County Judge Todd A. Hoover, died after his chest and abdomen were crushed at the Dura Bond Pipe factory in Steelton.

Both deaths which Mr Hetrick ruled accidents are being investigated by the federal Occupational Safety and Health Administration and United Steelworkers Local 1688.

AK Steel to make USD 75 million pension trust fund contribution

AK Steel said that its board of directors has authorized the company to make an early USD 75 million contribution to its pension trust fund. The contribution will be made during the second quarter and is expected to fulfill the company's funding requirement for 2008. Following the contribution, AK Steel will have made more than USD 750 million in pension fund contributions since 2005.

Taiwanese scrap prices jump

Stimulated by price increments for US scrap, Japanese scrap price has been raised four times in 10 days. The total increase is around JPY 4,500 to JPY 5,000 per tonne.

Consequently Taiwan’s import price of scrap has continuously raised as well. Import price for Japan H2 scrap is priced as high as C&F USD 660 per tonne.

Taiwan local scrap price has also increased by around TWD 400 per tonne last week. Current selling price is about TWD 17600 to TWD 18600 per tonne. It is also expected that the scrap price will reach TWD 19,000 per tonne soon, due to low inventories.

(Sourced from YIEH.com)

North American galvanizing and coatings gains

It is reported that shares of North American Galvanizing & Coatings, Inc are gaining ground ahead of the opening bell after the provider of galvanizing and coatings for corrosion protection of fabricated steel products reported first quarter earnings that beat the consensus on Wall Street, while revenues met.

As per report shares gained 10.6% to USD 5.95 ahead of the bell.

AISI committed to a sustainable future

The American Iron and Steel Institute held an environmental briefing on Capitol Hill, highlighting the industry’s commitment to reducing its environmental footprint through research projects at universities around the country and featuring a lead researcher who discussed one of the promising technologies currently being developed. The goal of these research projects is to reduce, and eventually eliminate, CO2 emissions from the steel making process.

As part of a joint program between AISI and the Department of Energy known as the CO2 Breakthrough Program, research is currently underway at the University of Utah, under the leadership of Dr Sohn to produce iron by Hydrogen Flash Smelting. Hydrogen Flash Smelting is a process during which iron is separated from iron ore at high temperature and at very fast reaction times. The unique characteristic is the use of hydrogen as the fuel. At today’s briefing, Sohn cautioned that the research is still in the beginning phases, but what has been demonstrated thus far is encouraging.

In addition to the University of Utah project, AISI has three other long-range projects that will have a positive impact on the environment. These three projects include: Molten Oxide Electrolysis at the Massachusetts Institute of Technology; Geological Sequestration of CO2 at the University of Missouri Rolla and Integrating Steel Production with Mineral Sequestration at Columbia University. There are also several short-term projects being conducted by AISI and its members that will also have important environmental impacts.

Mr Andrew G. Sharkey III president & CEO of AISI said that “The American steel industry is proud to be an environmental leader that is committed to a sustainable future. The industry has already reduced energy use per ton of steel shipped by 29% since the Kyoto baseline year of 1990, which also puts reduction by America’s steel sector of greenhouse gas emissions far below Kyoto standards. Even with these great strides, we are actively investing in research and new technologies to sustain significant progress.”

Mr HY Sohn professor, metallurgical and chemical engineering, University of Utah said that “This is an exciting time to be working with the steel industry. We are trying to take drastic steps forward to reduce carbon emissions from the steel industry.”

Car makers hit 85% recycling target in 2006 - BERR

According to figures collated by the Department of Business, Enterprise and Regulatory Reform, when a car is scrapped, 85% of it can now be recycled or re used as per legal requirements.

Data on cars scrapped by licensed treatment facilities in 2006 show that car makers have hit one of the benchmarks set in the End of Life Vehicles Directive. This said that 85% of a scrap car must be capable of recovery by 2006, rising to 95% by 2015.

Under the End of Life Vehicle Regulation, manufacturers were required to contract with Authorised Treatment Facilities. These licensed premises would ensure convenient and cost free take back of scrap cars for owners. But they would also guarantee that vehicles had been disposed of in an environmentally friendly way, with Certificates of Destruction issued to the owner and DVLA.

The process firstly involves de polluting a vehicle, removing its harmful liquids, tyres and deploying the airbags. The remaining materials are then shredded to recover valuable parts like steel, aluminum and recyclable plastics. Recovery rates are collated by Business, Enterprise and Regulatory Reform.

According to Business, Enterprise and Regulatory Reform figures, a total of 305,000 vehicles were handled by the two agents contracted by manufacturers, Cartakeback and Autogreen, in 2006. Of these 190,000 were handled under contract with manufacturers. In total, 685,000 Certificates of Destruction were issued in 2006. The DVLA was also notified of a further 215,000 vehicles through Notices of Destruction.

Cemex Q1 sales increase by 26% YoY

Mexico's CEMEX the world's third largest cement maker announced that consolidated net sales increased by 26% YoY in the Q1 of 2008 to USD 5.4 billion as comparable period in 2007. EBITDA grew by 10% YoY in the Q1 of 2008 to USD 951 million versus the same period of 2007.

CEMEX's Consolidated First Quarter Financial and Operational Highlights:
1. The integration of Rinker and better supply demand dynamics in most of our markets contributed to higher sales.
2. Free cash flow after maintenance capital expenditures for the quarter was USD 487 million, up 78% YoY from USD 274 million in the same quarter of 2007.

Mr Hector Medina executive vice president of planning and finance, of CEMEX said that "The strength of our business model allowed CEMEX to complement organic growth with contributions from acquisitions. The diversity of our asset portfolio and the greater synergies identified in the Rinker integration helped CEMEX to overcome a challenging environment. Even in the face of the correction in residential spending experienced in the United States, we continue to reduce debt and improve efficiency. We have a solid financial foundation and remain focused on creating value for our shareholders."

EUROFER launches new Website

The European Confederation of Iron and Steel Industries, EUROFER, goes online with its new website www.eurofer.eu. With a modern design and faster access to information it replaces EUROFER’s internet presentation on ‘www.eurofer.org’ and ‘www.eurofer.be’.

The new site includes Latest News section, position papers on steel relevant European legislative projects, market relevant information and a useful tool for everyone who is interested in steel “Steel Dictionary” for English, French, German, Italian and Spanish

The website will be completed with further information and documents over the next few weeks.

Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370,000 people, producing 200 million tonnes of steel per year.

Bulgarian metallurgical industry to invest BGL 1.7 billion by 2010

According to Bulgarian Association of the Metallurgical Industry, the local and foreign investors are expected to pump BGL 1.7 billion in Bulgaria's metallurgical industry through 2010.

Mr Politimi Paunova chairperson of the Bulgarian Association of the Metallurgical Industry said that that industry data showed that production of ferrous and non ferrous metals like lead, zinc and copper rose 10% in 2007 and the industry manufactured products for BGL 7.7 billion in terms of value last year or 15% of Bulgaria's total industrial output.

He added that the only laggard is ferrous metallurgy which posted an output that twice as low the relevant EU mark.

Strip prices on rise in Southern Europe

Southern European steel strip price is expected to remain on a very high level. The main reason is due to decreased supply volume of raw material.

Current prices for HRC, CRC and coated zinc plate are at EUR 650 to EUR 700 per tonne, EUR 700 to EUR 750 per tonne and EUR 720 to EUR 760 per tonne respectively.

Some major steel mills are beginning to replenish their inventories before price rising in the third and fourth quarter.

(Sourced from YIEH.com)

Mr Fazzolari appointed as chairman and CEO of Harsco

Following the completion of today’s 53rd Annual Meeting of Stockholders, the Board of Directors of Harsco Corporation announced the appointment of Mr Salvatore D Fazzolari as chairman & CEO of the Company, succeeding Mr Derek C Hathaway upon his retirement which became fully effective April 22nd 2008. Mr Fazzolari was appointed CEO effective January 1st 2008.

Addressing stockholders at the Annual Meeting, Mr Fazzolari reaffirmed the Company’s continuing growth outlook as a leading worldwide industrial services organization, saying that, based on its continuing strong end markets, numerous international expansion opportunities, and its enterprise wide process optimization initiatives, the Company expects another record year in 2008. Reflecting these expectations, the Company earlier today raised its full year 2008 guidance for diluted earnings per share from continuing operations to a new range of USD 3.45 to USD 3.55 per diluted share, up from the previous range of USD 3.40 to USD 3.50 per diluted share. Using the mid point of the increased guidance, this represents a 16% improvement in diluted EPS for 2008 over 2007.

Mr Fazzolari also highlighted to stockholders Harsco’s increasing global balance and additional international scalability, as the Company continues to execute its strategic objectives for international growth and market expansion. International markets accounted for nearly 70 percent of Harsco’s total revenues in 2007. The Company sees significant opportunities ahead within numerous international markets, including the growing economies within Latin America, Eastern Europe, Asia/Pacific and the Middle East/Africa.

TOUAX enters agreement with IRS for 6,000 railcars

TOUAX Rail, a leader in intermodal railcars leasing in Europe, announced a frame agreement for the purchase and delivery of 6,000 railcars between 2009 and 2012 from International Railway Systems, the leading manufacturer of freight railcars in Europe.

Under the agreement IRS will manufacture a variety of railcars including:3,600 intermodal railcars for the transportation of shipping containers comprised of 40', 45' and 60' platforms, 1,200 railcars for the transportation of iron and steel, and 1,200 hopper cars for the transportation of coal. TOUAX plans to lease the railcars to a customer base of major industrial groups and to leading public and private rail operators throughout Europe. TOUAX Rail manages a fleet of 5,424 railcars and has over 2,000 railcars on order in 2008, almost all of which are already leased. With these additional railcars from IRS, TOUAX Rail expects its rail fleet to reach 10,000 cars by 2009.

Mr Fabrice Walewski managing partner of TOUAX Group, said that "IRS has been a valuable and reliable supplier to TOUAX for 10 years and with this agreement we have consolidated our position as the second largest leasing company of intermodal railcars in Europe. We look forward to working with IRS to meet the needs of our customers in the years ahead."

Mr Juergen von Schwerin CEO of International Railway Systems said that "TOUAX Rail is one of the largest leasing companies in Europe and we are pleased to have secured this major contract. We have been seeing strong demand for railcars across our markets and both the size and backlog of our contracts confirm this as operators seek to reinvest in their fleets and build capacity. As the leading manufacture of freight railcars in Europe we are committed to maintaining out reputation for superior quality and ability to meet delivery timelines."

International Railway Systems and TOUAX first worked together in 1998 for the ordering and refurbishment of second-hand railcars at IRS's Romvag workshop and today's market announcement marks the 10th Anniversary of this original partnership. The TOUAX Group has specialized in the transportation of containers by rail, which uses intermodal railcars, since 1998. Via its subsidiary Gold Container Corp, TOUAX also leases approximately 450,000 shipping containers to the leading global shipping companies.

TOUAX is specialized in operational leasing of four types of equipment: shipping containers internationally (48% of 2007 revenue), modular buildings in Europe and United States (24%), river barges in Europe, North and South America (8%) and freight railcars in Europe and North America (21%).

International Railway Systems headquartered in Luxemburg, is Europe's leading manufacturer and producer of freight railcars, bogies and forgings for the railcar industry. IRS possesses the largest railcar design, engineering and testing capabilities in Europe. IRS operates multiple subsidiaries from 14 locations throughout Europe including the Czech Republic, Germany, Romania, Slovakia and Switzerland.

Tube City IMS announces promotiona

Tube City IMS, LLC, a provider of products and services to steel mills and foundries throughout the United States, Canada, Europe, Mexico, South America and Asia, announced several promotions.

1. Mr Chris Ochoa has been promoted to district manager, Southeast Region USA, Tube City Division, Tube City IMS. He will be responsible for business development and expansion of the Company’s Outsourced Purchasing Division.

2. Mr Carey Sullivan has been promoted to Southern Agency Manager, Tube City Division, Tube City IMS, and will be responsible for the growth and maintenance of the Company’s accounts in Fairfield, AL.

3. Mr Jordan Strauss has been promoted to District Manager, Texas Region, Tube City Division, Tube City IMS. He will be responsible for expanding the Company’s presence in the Southwest as the Company opens its first outsource trading office in Dallas.

4. Mr Steve Helbig has joined the Company as Senior Manager of Technical Services in the IT Department.

Tube City IMS, LLC is a leading provider of outsourced steel services, including raw materials procurement, scrap management, raw materials optimization, slag processing, metal recovery and surface conditioning services to integrated steel mills, mini-mills and foundries. Tube City IMS has operations at 69 plants throughout the United States, Canada, Europe, Mexico, South America and Asia.

AK Steel jumps to 351 on Fortune 500 in 2008

AK steel with revenues of USD 7 billion in 2007 has jumped 27 positions on the FORTUNE 500 this year, claiming the 351st spot on the magazine's annual list of America's largest corporations.

AK Steel was ranked 378 on the previous year's list. AK Steel was also ranked fifth in revenue in 2007 among all US metals producers and was listed among the fastest growing companies in profits for the year 2007.

Mr James L Wainscott chairman, president & CEO of AK Steel said that “AK Steel's record performance in 2007 reflects our steadfast commitment to our customers, and our ongoing efforts to achieve long-term, sustained profitability. I congratulate, and thank, all of our employees for their contributions to the company's success."

In addition to its FORTUNE 500 ranking, AK Steel was listed among FORTUNE magazine's "America's Most Admired Companies" in 2008, receiving a number-one ranking in the metals sector for product quality and use of corporate assets. The company was also listed among CNNMoney.com's Top 10 Best Performing FORTUNE 500 stocks for the year 2007. With a 174% gain in value, AK Steel claimed the second spot on this prestigious list. AK Steel also received Cincy magazine's MANNY award in 2008 for excellence in manufacturing.

Qatar Steel to maintains rebar prices to curb inflation

Gulf Times reported that Industries Qatar subsidiary Qatar Steel has decided to keep steel prices unchanged for three months until June as part of its measures to contain inflation in the country.

Sheikh Nasser bin Hamad al-Thani director & GM of Qatar Steel, following a high powered meeting, said that “Aligned with the government efforts to curb the current high inflation, Qatar Steel has decided to maintain the steel price in Qatar despite soaring raw materials and steel prices in the GCC countries as well as in the global markets. This strategic move is to safeguard the development and high growth in Qatar.”

Highlighting that the prices for the second quarter 2008 have been fixed, he said, accordingly, the current retail price for standard sizes will range from QAR 3,250 per tonne to QAR 3,300 per tonne.

The construction industry, under the aegis of Qatar Chamber of Commerce and Industry, has been calling for a moratorium on steel prices in view of the rising project costs, which was one of the factors responsible for the spiraling inflation, now at about 14%.

Egypt plans to cancel import duty on rebar

According to the media report in Egypt, the government plans to cancel import duties on steel rebar and 20 other products of food.

The inflation rate surged to 12.1% in January and February 2008, as the life cost is getting higher and higher to consumers.

The minister of Trade Ministry indicated that inflation has brought some damage. Therefore, the government will take some measures to reduce the inflation.

(Sourced from Yieh.com)

Ukraine applauds removal of duty on steel import by Turkey

Ukrainian Minster Mr Bohdan Danylyshyn during a meeting with Mr Erdogan Iscan Turkish ambassador to Ukraine noted that Ukrainian and Turkish cooperation is developing dynamically and is an important foundation for boosting cooperation in business, political, cultural and other areas.

He said that "Turkey has been lately holding the lead among Ukraine's main trade partners: bilateral trade turnover reached a record of USD 4.932 billion in 2007, which is almost USD 1.545 billion more than in 2006.”

Mr Danylyshyn expressed gratitude to the government of Turkey for its decision to lift antidumping measures on the import of Ukrainian iron and steel, which were imposed in 1995. He said "Abolition of restrictive measures does not stand to mean any threat from Ukrainian producers to Turkish industry.”

Pakistan to review ports and shipping policy

Mr Syed Naveed Qamar Pakistan’s minister for ports and shipping, industries, production and privatization said that that the previous ports and shipping policy will be reviewed and necessary changes would be made in order to update the sector up to international standards.

He said that there are various flaws in the port policy, which needs critical assessment and requires changes to improve the standard of the ports.

He said that Karachi Port Trust and Port Qasim are the gateway of the economy, as they are based in the commercial capital of Pakistan. Gawadar Port still lacks communication links. He noted that there are various things to be examined in the sector concerning allotment of land and employment.

Mr Qamar said that though Port Qasim’s performance has been satisfactory, there is a lot of room for improvements in it. The government would focus on that and further improve the performance of the port. He added that in the future policy, more terminals and berths would be added in Port Qasim as there is a lot of capacity.

About the Bundel and Bunndu Island, he stated that the issue is still prevailing and has not yet been settled, however, it will also be resolved. There are various aspects of the island which have to be considered and it still needs to be decided whether the land belongs to the federal government or the provincial government.

MEA maritime industry may exceed AED 50 billion in 2008

Mr Ahmed Mohammed Al Midfa chairman of Sharjah Chamber of Commerce & Industry, while addressing Gulf Maritime Exhibition recently, said that investment in the Middle East maritime industry is expected to exceed AED 50 billion in 2008 on the back of a boom in the sector across the region.

Mr Al Midfa said that in 2007, UAE terminals increased container cargo throughput by 19% to 11 million TEUs. He added that "The dependency on the trans Atlantic route has declined and new routes such as Asia Europe and Asia Middle East are now the busiest. This means more and more large cargo ships are choosing to call at Middle East ports, triggering huge demand for repair services for large vessels and feeders plying the region."

Mr Al Midfa said that "The phasing out of single hull tankers as per International Maritime Organization norms will see increased conversion activity, as shipping operators seek to convert their single hulls to either container liners or workboats."

Workboats are also in high demand on the back of reclamation projects. Massive projects such as the Dubai and Umm Al Quwain marinas, the three Palm islands, The World, Dubai Festival City, and projects that are coming up in Oman, Qatar, Kuwait and Saudi Arabia are creating huge demand for dredgers and support vessels. Thousands of these workboats are keeping the more than 10 ship repair yards in the region busy.

Mr Al Midfa said that "These developments have highlighted the need for a one stop sourcing platform and the Gulf Maritime exhibition is undoubtedly a leading event that traders can rely on to keep pace with demands of a rapidly growing industry. The industry will also have a positive impact from the AED 3.67 trillion worth of infrastructure projects under way or are being planned in the Gulf countries."

Dubai Maritime City will also support the region’s maritime operators through its comprehensive ship repair and maintenance facility situated in the Industrial Quarter, which will be managed by Dubai dry docks.

Tarabot wins USD 5 billion Saudi rail deal

It is reported that a consortium of seven Saudi Arabian partners and Australian group Asciano has been selected as preferred bidder for the USD 5 billion Saudi Land bridge rail project.

The project has been structured as a 50 year concession to build, own and operate the network. The Tarabot consortium will own 80% of the concession, with Saudi Arabia holding the remaining 20%.

The Land bridge project will connect the Saudi capital Riyadh with the major port cities of Jeddah and Damman. The existing rail network between Dammam and Riyadh will be upgraded and a 945 kilometer line constructed between the capital and Jeddah.

Mr Mark Rowsthorn MD of Asciano said that the project is expected to deliver high returns for the company, which will hold a 5% equity stake in the consortium and be a significant shareholder in the operation and maintenance company.

Other short listed bidders included the Agility PWC Logistics consortium, Mada and Saudi Binladen.

Isuzu Motors considers producing trucks in Saudi Arabia

Japanese truck maker Isuzu Motors Limited has announced that it is studying a plan to start making trucks in Saudi Arabia as one of several possible ways to accelerate its sales expansion in the Middle Eastern market.

Isuzu is likely to form a JV with local companies, including car dealers and build what would be the first Middle Eastern car plant of a Japanese company, with a total investment of as much as JPY 5 billion.

Isuzu sold 33,900 vehicles, including 24,000 pickup trucks and 9,900 full size trucks, in Saudi Arabia in 2006, up by 45% YoY from 2005 and more than double its sales in 2004. It currently exports the D MAX pickup truck, its best selling model in Saudi Arabia, from its plant in Thailand, while all the full size Isuzu trucks exported to the Middle Eastern kingdom are made in Japan.

Qatar to ease sponsorship laws for foreign workers

Peninsula daily reported that Qatar is all set to ease the regulations of its exit permit system for expert workers under a new sponsorship regime which will also make it illegal for sponsors to retain the passports of their foreign workers.

An official source said that "The draft makes it illegal for sponsors to retain the passports of their foreign workers after completing the visa formalities unless it is mutually agreed between the two parties."

It may be noted that for instance, residents cannot change their sponsorship unless they get permission from their employers. Only the minister in charge will have the right to order a change of sponsorship or, in the case of a worker having legal dispute with his employer, can allow a resident to temporarily work else where.

A resident who was here on a work visa but left the country for good after quitting the job or having been dismissed can come back to take up employment with any other company only after a gap of two years, the gap period is to be calculated from the date of his departure from Doha.

Iran discovers new gas fields

Mr Mahmoud Mohaddes director for exploration affairs of National Iranian Oil Company said that Iran has discovered a large gas field in Masjed Soleiman region in southwest of the country.

Mr Mohaddes said that "Some excavation has been done before but due to the lack of proper drilling operation technology, the operation has failed. Now in order to provide Razi Petrochemical Complex with sour gas, we have decided to restart drilling operation in the area."

He added that after the completion of drilling at the depth of 4380 meter by the end of last Iranian year, a sour gas field was discovered with an in place gas capacity of 985 billion cubic feet that some 739 billion cubic feet out of which is producible.

Iran holds the world's second largest gas reserves after Russia.

OPEC sees no need to raise output – Report

Mr Chakib Khelil president of OPEC said that it sees no need to raise oil production to counter high oil prices. He added that "There is a balance between supply and demand."

Mr Khelil said that OPEC wanted an appropriate price suiting both consumers and producers, but declined to say what that price level would be. He also said that OPEC had the ability to raise output by 2 million barrels per day.

A falling dollar was a main factor behind the surge in oil prices. US crude hit a record high of USD 117 a barrel recently.

Motorcycle prices in Pakistan hiked

The Post reported that due to increase in production cost, dealers of both foreign and locally manufactured motorcycles have made an increase of PKR 400 to PKR 1,500 in the prices of motorbikes in Pakistan.

Japanese bikes manufacturing companies raised prices of their brands Honda and Yamaha following levy of freight, forwarding and Pakistan Standards and Quality Control Authority while some Chinese bike makers also enhanced the prices to rising cost of material and parts. The price of Honda CD 70 CC has been revised upward to PKR 50,900 form PKR 50,500 and Honda CG 125 Standard to PKR 70,900 form PKR 69,900 while Honda 125 Delux with disc brakes is priced at PKR 76,900 from PKR 75,900.

According to a Honda motorcycle dealer Mr Shaukat Ali, the recent surge in bike prices was due to freight and Pakistan Standards and Quality Control Authority levy by the government. He added that "Hike in petroleum prices is another factor which forced us to raise prices of our bikes."

The entry of Chinese motorcycles in Pakistan’s local market a few years ago had coerced the Japanese assemblers to reduce their prices to keep their market shares. China bikes are priced at PKR 34,000 to PKR 35,000 as compared to PKR 50,900 of Honda CD 70.

Meanwhile, makers of bikes like Eagle, Royal, Geo, Road Prince, New Asia, Ravi and Lazer have increased price following escalating prices of iron and steel and other necessary accessories. Assemblers said that in the wake of hike in cost of production, it has become almost impossible to maintain prices of bikes at previous level.

India wants to participate in Saudi oil exploration – Report

India has made a strong pitch for participating in exploration of oil and gas in Saudi Arabia whose King called New Delhi as the dearest friend with whom he wants relations to grow, including in the field of energy.

Mr Pranab Mukherjee India’s external affairs minister after meeting Saudi King Mr Abdullah bin Abdulaziz said that "I requested that the relationship be transformed from buyer seller level. We want to participate in exploration, exploitation and development of gas based and petrochemical based industry in Saudi Arabia."

Describing his discussions with the King as good and substantial, Mr Mukherjee said that the two sides talked about the need to improve further the bilateral ties in economic, political and cultural fields.

Inviting Saudi investments, Mr Mukherjee said that there is a huge scope as Indian economy is growing at over 8% and could absorb between USD 500 and USD 600 billion over the next 6 years.

He added that India procures 26 million tonnes of crude oil from Saudi Arabia every year, accounting for one fourth of its imports of the commodity.

Ras Laffan repair yard project on track

Doha Times reported that the multi billion dollar Ras Laffan ship repair yard is expected to begin operations in 2010 after the completion of its first two phases in late 2009.

The first two phases of the project, coming up on 42 hectares of reclaimed land, will equip it to repair large ships including LNG carriers, very large crude carriers and medium sized vessels between 20,000 DWT and 80,000 DWT.