PM urges steel industry not to fall prey to temptations of market

Prime Minister Dr Manmohan Singh has urged the steel industry not to fall prey to the temptation of seeking windfall gains from market manipulation in a period of excess demand.

Dr Singh, while addressing at centenary function of TATA Steel, said that "Industry and trade must eschew short term gains that hurt consumers and disrupt the stability of the process of economic growth. I would advise our steel industry to take a long term view the Indian economy will continue to grow and the demand for steel will continue to grow."

Dr Singh said that in the present context where industrial prices are on the rise, there is an opportunity for corporate leaders to deploy corporate power in the best interests of society. He added that "TATA Steel has a proud record of corporate social responsibility. It can show the way forward in deploying corporate power in public interest."

Indian auto majors seeks long term contracts from steelmakers

It is reported that, in order to ensure assured supplies of steel at a negotiated price through long term contracts, Society of Indian Automobile Manufacturers will meet primary steel makers represented by the Indian Steel Alliance over the next few days. The move is aimed at keeping vehicle prices stable, at a time when the economy is reeling under rising inflation and the automobile industry hit by declining sales.

Mr Dilip Chenoy director general of SIAM said that "We are meeting different steel associations to have a common approach. We plan to meet ISA to ensure availability of steel at a price where the cost of vehicles is not affected."

In the new contracts being negotiated, steel companies have asked automobile companies a price hike in the range of 20% to 35%. At this rate of increase, SIAM estimates that the cost of commercial vehicle is required to increase in the range of INR 50,000 to INR 75,000. While two wheeler makers have already hiked prices in the range of INR 500 to INR 1,000, car manufacturers are also likely to take a decision by May 2008.

Sources in the steel industry said that finalizing the long term contract prices with automobile manufacturers may take a little longer than usual this year because there are strong possibilities of the government initiating fiscal measures to bring down steel prices. The final contract price with the automakers would probably be decided only after there is clarity on the government front.

PM visited Jamshedpur on TATA Steel’s Centenary

It was a defining moment for TATA Steel as Honorable Prime Minister of India Dr Manmohan Singh visited Jamshedpur to participate in TATA Steel’s Centenary celebrations.

On his arrival in Jamshedpur, Dr Singh was received at the airport by Mr B Muthuraman MD of TATA Steel. The function began with the plantation of a Banyan tree sapling by the Prime Minister of India, which was dedicated to the citizens of Jamshedpur. This was similar to the tree plantation which was done by Mr Jawaharlal Nehru, Prime Minister of India in 1958, when TATA Steel celebrated its 50th anniversary.

In his welcome address, Mr B Muthuraman thanked Dr Singh on visiting the steel city and it was a moment of pride for everyone at TATA Steel.

While addressing the guests, Dr Singh congratulated TATA Steel on its milestone of completing 100 years, achievement accomplished by few. He said that TATA Steel has been a leader in steel making and it must continue to provide leadership on all fronts. He unveiled a postage stamp that had been created as a memento by the government of India’s ministry of communications to salute TATA Steel’s 100 years of selfless service to India.

Dr Singh said that it symbolizes TATA Steel’s commitment and dedication not only to trigger the industrial revolution in India in 1907 but also to continue to create benchmarks in every field that it has ventured in the last 10 decades.

Though it was a brief visit, it was definitely an enlightening and privileged one for not only TATA Steel but also for the citizens of Jamshedpur. It was the most prestigious day for TATA Steel to be acknowledged by Prime Minister for 100 years of selfless service to the nation. TATA Steel has traveled a long distance without fatigue. It has kept alive the thoughts and philosophy of its founder JN TATA with high intensity.

Dr Mukherjee awarded Bessemer Gold Medal 2008

UK based Institute of Materials, Minerals & Mining has awarded Bessemer Gold Medal for the year 2008 to Dr Tridibesh Mukherjee TATA Steel group director of integration & development for his service to the steel industry. The award will be presented at a dinner on July 2nd 2008in London. Dr Mukherjee will deliver the Bessemer Lecture this year.

Dr Mukherjee has served as chairman the International Iron & Steel Institute’s technology committee for 3 years to 2007. His contribution in the use of technology, as a means to competitiveness is recognized internationally. He worked for British Steel from 1968 to 1971. He then joined TATA Steel in 1971 and rose to deputy MD. As group director now, he is responsible for integration and R&D and technology.

Mr Harry Bhadeshia winner of the Bessemer Gold Award 2006 said that “Mr Tridibesh Mukherjee has had an outstanding career as a metallurgist, manager and innovator in the steel industry. At the same time, his fairness, humility and concern for the progress of humanity make him an unsung hero to many who have felt his presence. He deserves the recognition that comes with the award of the Bessemer Gold Medal."

IOM3 was established and endowed by Sir Henry Bessemer in 1874. It exists to promote and develop all aspects of materials science and engineering, geology, mining and associated technologies, mineral and petroleum engineering and extraction metallurgy and is the professional body for the international materials, minerals and mining community. It awards a number of medals and prizes to recognize achievement within the profession, of which one of the most prestigious is the Bessemer Gold Medal for outstanding services to the steel industry.

Previous winners of the award include Mr JRD TATA (1986), Mr Stuart Pettifor ex COO of Corus (2005), Sir Brian Moffat ex chairman of British Steel (1996) and Mr Lakshmi Mittal president & CEO of ArcelorMittal (2007).

Mr Paswan presses Jharkhand for Chiria iron ore to SAIL

FE reported that Mr Ram Vilas Paswan union steel minister and Mr Madhu Koda chief minister of Jharkhand used the launch platform of SAIL Bokaro Steel Plant's modernization and expansion program to discuss the Chiria dispute. Mr Paswan, sore over Jharkhand's delay in renewing the lease on the giant Chiria mines in favor of SAIL, did not miss the opportunity to air his view point.

The report cited Mr Paswan as sating that "SAIL wants to set up a 12 million tonne steel plant in Jharkhand, which means it is thrice the size of Bokaro Steel Plant's present capacity, employing 20,000 people. But Mr Madhu Koda is not in a mood to cooperate with SAIL on the mining issue."

Mr Paswan said that SAIL has revised its target of increasing steel capacity and plans to take it up to 124 million tonnes by 2011-12 against 110 million tonnes by 2010 as planned earlier.

SAIL Bokaro plant is increasing hot metal capacity from 4.5 million tonnes per annum at present to 7.44 million tonnes per annum by 2010 at a cost of INR 11,000 crore, an upward revision from the initial estimate of INR 9,000 crore.

Chiria, with 1 billion tonne of iron ore under the ground, is said to be the second largest iron ore reserve in the world. However, the Jharkhand government, which has a proposal from steel tycoon Mr LN Mittal as well, is yet to decide whether to divide Chiria for all players or renew the lease in favor of SAIL.

India steel export ban could cost USD 100 million per year

Platts reported that the interruption of India’s steel exports by both state backed and private producers could cost mills USD 100 million per year in lost revenue.

The report quoted an industry insider as saying that exported primary steel products are normally sold on average at USD 20 per tonne to USD 25 per tonne higher than that of domestic market and with the country exporting 4.5 million tones of steel per year the lost value could reach USD 100 million.

The source said that in late March 2008, the Indian government asked local steelmakers to curb their exports to prevent shortages and to slow the rise of steel prices. He added that "Since then, mills have respected this informal agreement and have indeed not taken any new foreign orders for steel products."

Indian watchdog may take action against steel firms – Report

India’s Planning Commission, echoing union finance minister Mr P Chidambaram's assertion that cement and steel firms were behaving in a cartel like manner, has warned that Competition Commission could take action against steel producers in case they do not lower prices.

Mr Montek Singh Ahluwalia deputy chairman of Planning Commission said that "It would be in the interest of steel manufacturers if they reduce prices. Otherwise the Competition Commission could take action against them."

Pointing out that steel prices have gone up substantially this year, he said that steel manufacturers were exploiting the market by raising the rates to encash the rise in demand. He added that there is a usual tendency among manufacturers to raise prices whenever there is rise in demand and shortage of supply, but steel manufacturers have raised prices beyond all limits.

When asked how a non functional Competition Commission could take action against the cartel of steel producers, he said that it could be made functional through government support and could take action against any alleged cartel.

Only new capacities can contain steel prices – Mr Muthuraman

Mr B Muthuraman MD of TATA Steel said that the only way to contain steel prices is to create new steel capacities in India.

Mr Muthuraman said that while prices of everything, from raw materials to energy inputs and ocean freight had been rising, demand driven growth for steel from developing economies coupled with inadequate raw material availability was seeing steel products touch unprecedented highs.

Mr Muthuraman said that "In a scenario like this, apart from exercising self restraint on steel prices amidst rising input costs, which SAIL and TATA Steel were practicing, albeit with self imposed difficulties, the only way to contain steel prices was to create new steel capacities in India matching or even exceeding the fast pace of demand growth unleashed by our liberalized economy."

Mentioning the domestic steel industry was growing by 10% to 15% year on year, Muthuraman said that "We need to increase the speed with which new steel capacities are getting created in India."

He also alleged that a couple of countries along with 4 to 5 companies were dictating terms to the industry globally.

Indian ports could soon run out of capacity – Ernst & Young

According to an Ernst & Young report, India's ports could soon run out of capacity. Entitled “Transforming Indian ports into world class facilities”, the report highlighted a 12% YoY jump in cargo throughput at Indian ports for the financial year 2007-08 and said that such increases are putting pressure on port performance and productivity.

The report outlined 3 key measures for Indian ports to achieve world class status namely focused infrastructure development along related logistics chains, emphasis on trade facilitation value added services and increasing competition through privatization.

Mr Rajesh Samson associate director of Ernst & Young said that "India needs to have full fledged information technology systems like Portnet and Tradenet of Singapore in place. It should encourage competition and devise a comprehensive multi modal transport policy to develop its ports into world class facilities."

The Ernst & Young report was released just as Indian government announced new plans to double cargo handling capacity at the country's ports to 1.5 billion tonnes per by 2012.

Mr APVN Sharma secretary for the department of shipping in ministry of shipping, road transport & highways said that the investments, through public private partnerships, would total some USD 25 billion. He highlighted the government's aim of attracting more private sector involvement in infrastructure projects, including investment from global companies.

TATA Motors gets US antitrust OK for Jaguar Land Rover

Reuters reported that US antitrust authorities have cleared TATA Motors purchase of Jaguar and Land Rover from Ford Motor Co.

US Federal Trade Commission said in a notice issued said that antitrust authorities completed their review of the USD 2.3 billion deal without taking any action to block it.

JSW Steel statement on holding steel prices

JSW Steel Limited announced that the inflationary trends in the country in the last few months are a cause of concern and to ease the inflationary pressures in the system, JSW Steel has decided to maintain the current price levels for two to three months.

Its release said that “The input cost for steel making has seen an unprecedented increase in the last few months. Added to this is the fact that there is a restricted availability of raw materials on a sustainable basis. Despite a global cost push, JSW is voluntarily exercising restraints on the prices. The next few months should give clarity on whether there will be any respite to the steel maker on this front.”

Mr Sajjan Jindal vice CMD of JSW said that "Pro active policies should be put in place to improve the supply side of steel by putting the Greenfield steel plant projects on a fast track and ensuring adequate raw material linkages. This would ease the pressure on prices in the long term."

ArcelorMittal experts visit HEC to discuss business

The Telegraph reported that experts from ArcelorMittal paid a visit to the Heavy Engineering Corporation Limited to assess the possibility of a long term partnership to manufacture equipment and spares for the steel sector. In case the deal comes through, ArcelorMittal and HEC partnership would be in a position to supply equipment and parts to steel industries both within India and abroad.

HEC officials said that two ArcelorMittal expert inspectors namely Mr Jacques Thomas and Mr G Wachowski toured all the 3 plants of HEC and held discussions with plant officials to assess HEC’s capabilities for a long term relationship. The 3 plants are heavy machine building, heavy machine tools and foundry and forge.

During the visit, the two experts evinced particular interest in forgings and foundry jobs being carried out at the plants and showed satisfaction at the various orders being executed by HEC.

An HEC official said that "Today’s visit of the two experts is a follow up of ArcelorMittal India CEO Mr Sanak Mishra and Mr Alain Bordet’s visit to the company in January 2008. The two officials had held detailed discussions with HEC CMD Mr GK Pillai, who made presentations highlighting HEC’s capabilities."

The developments come close in the wake of HEC clinching orders worth INR 2,508 crore from various SAIL plants within a span of 3 months.

IIL to hold steel prices

Reuters reported that Ispat Industries Limited said that it will not raise steel prices till June due to pressure from the federal ministry to control prices to rein in inflation.

KIOCL Iron Ore appointment

BL reported that Mr TM Gopalakrishna Bhat, who was GM finance, has taken over as ED finance of Kudremukh Iron Ore Company Limited on April 16th 2008.

Mr Bhat, a chartered accountant, joined the company in 1978 and served in various positions in finance and accounts department.

Regulatory panel proposed for ports and shipping sector

Exim News Service reported that the parliamentary standing committee on transport, tourism and culture has recommended the setting up of a regulatory authority for the shipping and port sector. Such an authority was suggested on the lines of regulators in the telecom and insurance sectors, so as to foster healthy competition and adjudication of disputes.

The committee observed in its report that "Since much of the activities in the port and shipping sector are taking place with private participation, there is need to establish a regulatory authority well in time, and that too before coming across any problem, for better control, coordination and monitoring for achieving excellence in port and shipping sector."

The panel also pointed out that in spite of having 12 major ports and 200 small ports in India, the department of shipping was unable to exploit the boom that was taking place the world over in areas of shipbuilding, dredging and merchant shipping.

Indian auto industry sets eyes on Eastern Europe

BS reported that Indian auto component and tyre companies are making a beeline to set shop in Europe, especially Eastern Europe considering the large and growing market for their products in that region. Another critical reason why Indian auto companies want to enter Eastern Europe is the possibility of labor arbitrage.

Some of the recent moves in this regard are listed below
1. In March 2008, Apollo Tyres announced that it is setting up a EUR 200 million Greenfield venture outside Hungary
2. Amtek Auto will set up a production base which will come in to operation in 2009 in Romania
3. Sundram Fasteners has manufacturing bases in the UK & Germany
4. Bharat Forge & Sona Koyo Group’s operations in Europe extend to France and Germany.

The report cited Mr Sunam Sarkar chief marketing & sales at Apollo Tyres as saying that "The replacement market is around 250 million tyres a year. Replacement and OEM together adds up to around 300 million passenger car tyres a year."

Mr Amit Kalyani executive director at Bharat Forge said that "Europe has the size and scale to become a large market for us and European customers were focused on technology. Today, it is our largest market in the world and also very fast growing market for us. It is not just the number of vehicles but the value of vehicles that are sold in Europe that is significantly higher than rest of the world. Cost is the biggest challenge. Besides wage costs going up, you have tremendous increase in energy costs, tremendous increase in steel which is global. Costs are a killing factor in Europe."

An Amtek Auto official said that "While parts of Europe like the UK and Spain have expensive labor, Eastern Europe is cheaper. While they are 3 to 4 times more than India, they are 5 times less than the rest of Europe."

CPI demands cancellation of leases to curb price hike

BL quoted Mr K Narayana state secretary of Communist Party of India as saying that the government can reduce prices of materials like steel, gravel and cement used for construction and infrastructure by canceling the existing leases with contractors and dealing directly with customers.

Mr Narayana said that unless the government took measures to break the grip contractors had over steel, quarry and mining sectors, it would be difficult for it to check the rise of prices. He added that “Long term contractors had total control over the steel business. The steel mills sold the material through these commission agents, who created artificial scarcity whenever there was an increase in demand.

He further added that 10 families that had LTCs in over 60 names controlled the steel business by forming into a cartel. He said that the cost of developing infrastructure like buildings, bridges and roads could be reduced by 50% to 60% by breaking this cartel.

MS Agarwal Foundries sets up TMT mill in Hyderabad

It is reported that MS Agarwal Foundries has set up a manufacturing plant in Hyderabad in technical collaboration with steelmaker Hennegsdorfer Stahl Engineering Gmbh to manufacture TMT bars called MS Thermex (Germany) TMT bars.

The release said that “MS Agarwal Foundries manufactures TMT bars with its own MS billets. It maintains carbon levels at much lower than the specification of BIS, which results in excellent ductility, high bendability, better corrosion resistance and superior weldability. The other undesirable impurities like sulphur and phosphorous that impair the overall longevity of rebar inside construction are also maintained at much lower than specification in MS Thermex. This is possible because of the purity of steel of MS Thermex which is 100% processed through the primary steel making route.”

Andhra CM calls upon shipping ministry to discuss shipyard

It is reported that Mr YSR Reddy chief minister of Andhra Pradesh has recently called on Mr Thiru TR Baalu union minister of shipping, road transport & highways to discuss the modalities of setting up of an international size shipyard on East Coast.

Mr Baalu told Mr Reddy that the ministry of shipping, road transport & highways is ready to sign a MoU with Andhra Pradesh to chart out a detailed road map for the development of the proposed shipyard. The MoU is expected to be signed by the middle of the next month. He also emphasized that state level statutory clearances should be granted in a time bound manner to ensure that the project is completed within the given time.

Mr Reddy assured Mr Baalu that preparation of the techno commercial feasibility report and detailed project report would be completed within 3 to 6 months as a consultant has already been engaged for the purpose.

As per report, Andhra Pradesh has offered to make available 2000 acres of land within next 6 months free of cost to the centre for the development of shipyard. It has proposed to develop the shipyard at Vodarevu Port in Prakasam district of Andhra Pradesh.

Government of India has proposed to set up two international level shipyards, one on the East Coast and the other on the West Coast.

Update on power capacity addition in Haryana

BS reported that, with companies like Reliance Industries Limited, EPURON, Admire Energy Solutions Limited, Albina Power, Acme Telepower Limited and Emco Limited showing interest in harnessing electricity from solar energy in Haryana, the state government’s aim to add 10% of the new capacity addition of power through renewable energy by 2012 seems a possible reality.

It may be noted that Haryana Renewable Energy Development Agency, which is the nodal agency to promote and implement renewable energy projects, recently invited applications from independent power producers and other parties to set up solar photovolatic power plants across the state.

An official said that the department had received around 20 applications that were above their expectations. If all the companies get nod to set up the solar photovolatic power plants the state would receive additional 127 MW electricity throughout these projects. Also the state is likely to earn anywhere between INR 20 to INR 25 crore per MW electricity generated form these projects. He added that "The rate at which the state would purchase electricity is yet to be ascertained, but if any company wishes to seek subsidy from the Government of India, it could quote a maximum rate of INR 15 per unit."

Haryana is an electricity deficient state and has taken several steps to solve the electricity problem. To facilitate power generation through renewable sources, the state government in its cabinet meeting held yesterday has decided to exempt the renewable energy power projects from change of land use charges, external development charges, scrutiny fee and infrastructure development charges.

Andhra CM lays foundation stone for Machilipatnam deep port

It is reported that Mr YS Rajasekhara Reddy chief minister of Andhra Pradesh has laid the foundation stone for the proposed INR 1,590 crore Machilipatnam deep water port on April 23rd 2008.

Maytas Infra led consortium consisting of Nagarjuna Construction Company, Sarat Chatterjee & Company Private Limited and SREI Infrastructure Finance Limited is developing the port that is expected to be operational within a period of 2 years. Located on the banks of Goguleru creek, the port will have 12 berths initially.

Its hinterland includes Krishna, West Godavari, Khammam, Nalgonda, Hyderabad and other Telangana districts. Once completed, it would handle export of agricultural products and coal transportation for the Vijayawada Thermal Power Plant besides catering to the shipping requirements of cement plants located in the Krishna belt.

Indian Railways plans bulk terminal development thro PPP

Exim News Service reported that union railway ministry has drawn up a terminal development scheme for private players. Under this scheme, private companies manufacturing cement, fertilizer and fly ash are proposed to be allowed to build their own terminals for transporting these products.

This would help Indian Railways obtain guaranteed freight customers for at least 20 years, while simultaneously relieving the burden of handling the freight. The scheme allows for special terminals to be built for bulk commodities which can be transported in loose quantities as well as terminals for finished products like iron and steel, bagged cement and bagged fertilizers by the manufacturer.

The terminals may be allowed to come up near the manufacturing hub either on private land, or on land owned by Indian Railways. The developer would have to build the terminal at his own cost, according to his specific needs. These terminals may house facilities for storage, loading, unloading and packaging of bulk commodities.

According to initial estimates, setting up such a terminal would require an investment of at least INR 40 crore. But as an incentive, the terminal owner will enjoy freight discounts over a period of 20 years. This would translate into a freight concession of 15%, a waiver of the hefty busy season surcharge along with a waiver of the terminal surcharge for developers of such terminals.

In the first year of operation, the developer will have to provide the Railways with at least 0.5 million tonnes of freight. In the second year, this would rise to 0.75 million tonnes and, in subsequent years, Indian Railways must be provided with a minimum of 1 million tonne from each of these terminals.

BHEL geared to meet demand of PSU power firms

Mr Raghunath Jha union minister of state for heavy industries & public enterprises said that Bharat Heavy Electricals Limited has been able to meet demands of state run power companies although there were delays in execution of some projects due to dependency for inputs from multiple agencies.

Mr Jha said that "Another reason is shortage of special imported types of raw materials which are not manufactured indigenously and for which there is shortage worldwide due to heavy capacity booking by Chinese companies."

Mr Jha further added that with a view to meeting the growing demand of power equipment and the emerging power capacity requirements in the country, BHEL is taking steps to enhance its power generation equipment manufacturing capacity from 10,000 MW to 15,000 MW per annum by December 2009.

UK firms eying railway projects in India

Mr Tim Gray international business development director of London based Railway Industry Association said that UK companies in the railway sector would be interested in joining hands with their counterparts in India to bid for various railway projects in India, including the proposed dedicated freight corridors.

Mr Gray said that the areas where the members of his association would be interested in forging alliance and these included, among others, design and construction of the railway systems, signaling and telecommunication, management techniques and data processing, passenger interface information and supplying measuring equipment for train performance.

Earlier, in his presentation, he pointed out how the privatization of the British Rail boosted the performance of the railway system in the UK, as was evident from the jump in passenger and freight earnings and steep fall in accidents.

Meanwhile, Mr Bob Docherty railways international business specialist at UK Trade & Investment said that UK experience showed that it should be possible to provide innovative rail solutions to supporting innovation, master planning, development of infrastructure, greener energy efficient transportation system, safety and security and proper management and maintenance of assets.

GVK Power 2007-08 net profit up by 133% YoY

GVK Power & Infrastructure Limited has posted consolidated total income of INR 532.14 crore for the financial 2007-08 up by 26% YoY as against INR 423.29 crore in 2006-07 fiscal.

Net profit for the year was up by 133% YoY to INR 135.47 crore as against INR 58.3 crore during financial year 2007.

These results include GVK Industries Limited phase II, GVK Jaipur Expressway and Mumbai International Airport.

Reliance Power to achieve financial closure for hydro projects by 2009

BL reported that the hydro power business of Reliance Power, which is poised to invest about INR 10,500 crore in 3 projects with total capacity of 2,100 MW, is in the process of expediting clearances and also achieve financial closure by the first half of 2009.

Reliance Power, which is executing 700 MW project at Tato II in West Siang District of Arunachal Pradesh, 1,000 MW of Siyom project at West Siang district of Arunachal Pradesh and 400 MW at Urthing Sobia in Pithorgarh district of Uttaranchal, is planning for some more projects coming up for competitive bids.

A senior Reliance Power official said that "The focus of the company is on expediting the process of implementation of these projects. We believe that we are well placed to implement them ahead of the 6 year time schedule provided to us."

The official said that with the government’s recent hydel policy, which also provides for merchant power sales, that is a big boost for such hydel projects, these are now well poised to achieve financial closure which we expect to do so by early 2009. He added that apart from sales through the Central Electricity Regulatory Commission fixed rates for supplies to states, the ability to offer merchant sales is a big booster for these projects as it allows pricing arbitrage and higher returns.

Reliance has appointed consultants SMEC of Australia for Urthing Sobla, SNC Levalin of Canada for Tato II and Halcrow of the UK for Siyom for preparation of detailed project reports.

BHEL orders reach 38,906 MW

Mr Raghunath Jha union minister of state for heavy industries & public enterprises said that as on April 1st 2008, Bharat Heavy Electricals Limited has received orders aggregating to 38,906 MW including part supplies and commissioning of Ratnagiri Block III, of domestic utility power sets for commissioning during the 11th Plan period.

Out of these orders, BHEL has already commissioned 4,984 MW of BHEL manufactured sets and 740 MW of Ratnagiri Block III. It has also commissioned 220 MW nuclear set at Kaiga during 2007-08.

The remaining orders of domestic utility power projects are scheduled to be manufactured and commissioned as follows

These projects are progressing as per schedule

GACL to invest INR 490 crore in power projects

Gujarat Alkalies & Chemicals Limited is investing INR 490 crore to set up a power unit at Dahej and a wind mill project in Kutch district of Gujarat by 2008 end.

Gujarat Alkalies is setting up a 90 MW gas based power unit at Dahej for INR 350 crore and another 40 MW wind mill project at INR 140 crore in Kachchh district. It is also increasing the capacity of caustic soda manufacturing plant from the existing 1,200 tonnes per day to 2,000 tonnes per day. It has undertaken 600 tonnes per day caustic soda expansion project, 50 tonnes per day anhydrous aluminum chloride plant at Dahej along with the 75 tonnes per day hydrogen paroxide plant expansion project.

MMTC 2007-08 net turnover up by 12.7% YoY

Minerals & Metals Trading Corporation has registered a record turnover of INR 262.76 million for 2007-08 fiscal up by 12.7% YoY as compared to INR 233 million in 2006-07 fiscal. It also posted a profit after tax of INR 2.061 billion up by 63% YoY as against INR 1.268 billion.

MMTC is India's largest importer of gold and silver and has plans to strengthen its presence in the gems and jewelry sector through a number of new initiatives that have recently been finalized.

BHEL to tie up with others for Assam power project

It is reported that Bharat Heavy Electricals Limited is likely to partner Engineering Projects India and Gopal Energy for setting up the 250 MW power project at Cachar district in Assam at an investment of about INR 1,250 crore.

Currently, details of the project are being worked out and BHEL will be the main equipment supplier for the project. The proposed project will have an initial capacity of 125 MW that will be subsequently expanded to 250 MW.

Coal India Limited will provide 1.5 million tonnes per annum coal to the project.

Outokumpu to acquire Italian SS distributor SoGePar

Outokumpu has signed an agreement whereby it will acquire the SoGePar Group, an Italian distributor of stainless steel from its current owners, the Borromeo family.

Outokumpu will pay EUR 195 million in cash and take on debt in the company in the amount of EUR 140 million. The transaction is expected to be completed by the end of the second quarter after regulatory clearances and satisfaction of other customary closing conditions.

SoGePar operates stainless steel service centers in Castelleone in Italy and in Rotherham in the UK. Additionally SoGePar has stock operations in Italy, the UK, Belgium, Finland, France and Ireland as well as a commercial office in Germany and a representative office in Turkey. Sales of the SoGePar Group in 2007 amounted to EUR 560 million, operating profit to EUR 44 million and deliveries to 134,000 tonnes.

As a result of this transaction the earlier announced EUR 70 million investment to expand Outokumpu's current stock and processing operations in Italy can now be avoided. The SoGePar operations will eventually be integrated with Outokumpu's service center network. The current SoGePar operational management will continue in their posts. Due to this acquisition Outokumpu's Stock & Processing capacity in Italy and the UK will be in excess of 240,000 tonnes. In total, with the SoGePar acquisition and the service center investments announced recently, Outokumpu's global annual stock and processing capacity will increase from the current 300,000 tonnes to in excess of 740,000 tonnes by 2010.

Mr Karri Kaitue Deputy CEO of Outokumpu said that "This transaction enables Outokumpu to better serve its customers through the expanded service center network, expand its customer base and positively develop end user and project sales which in turn should bring more stability. The acquisition is a determined step towards Outokumpu's strategic ambition of building a more stable and profitable business model for the Group. Furthermore, the acquisition of SoGePar will significantly strengthen Outokumpu's position in stainless steel distribution in Italy, which, together with Germany, is the largest market for stainless steel in Europe.”

Mr Vitaliano Borromeo MD of SoGePar Group said that "We believe that this transaction gives significant new opportunities for us and our customers as we become a part of a strong and integrated stainless steel group. Outokumpu's high technological know how and expertise in special grades are an added attraction."

SUMMA Corporate Finance is a financial advisor of Outokumpu in the transaction.

Gerdau buys stake in CCA to enter Central America

The Gerdau Group has entered into a strategic alliance with Central America's largest steel manufacturer, Corporación Centroamericana del Acero, with an installed capacity of 500,000 tonnes of steel and 690,000 tonnes of rolled products

As a result of this alliance, the Gerdau Group now holds 30% of the company shares and has committed to investing USD 180 million in the operations of Corporación Centroamericana del Acero in Central America. The company management will be shared with current stockholders.

The transaction announced today involves a steel mill in Guatemala, four rolled product rolling mills in Guatemala and Honduras, sales offices in Guatemala, Honduras, and El Salvador and distribution units in Guatemala, Belize, El Salvador, Honduras, and Nicaragua. Additionally, the company holds minority interest in the Intrefica company in Honduras, dedicated to die related activities.

Mr André Gerdau Johannpeter CEO of Gerdau Group said that “The partnership with Corporación Centroamericana del Acero places the Gerdau Group among the major players in Central America and the Caribbean. Central America is a strategic region and has now become an important operation, along with the units in Mexico and the Dominican Republic, in meeting the local market demands. In addition, Central America has presented significant levels of economic growth over the past few years.”

Corus announces heavy price increases for plate and sections

Corus Construction & Industrial based in Scunthorpe has announced increases in the price of reversing mill plate and structural sections.

It said that “Global demand for reversing mill plate and structural sections continues to be strong. At the same time steel manufacturers, including Corus, continue to incur significantly higher costs for raw materials and energy.”

The release added that “As a consequence, Corus will be increasing basis prices for reversing mill plate by GBP 60 per tonne effective to all dispatches from June 1st 2008. It will also be raising basis prices for structural sections by GBP 80 per tonne. This change will apply to all structural sections dispatched from June 29th 2008.”

Nucor ranked as America's largest steelmaker

According to rankings published in the May 2008 issue of American Metal Market no company produces more steel in the United States than Nucor Corporation. Nucor topped the list with more than 22 million tons. US Steel was second with 16.8 million tons and ArcelorMittal USA Inc was third.

Mr Daniel R DiMicco president & CEO of Nucor said that "The American Metal Market rankings highlight Nucor's commitment to the American worker and our investment in domestic production capacity. At a time when more and more manufacturing jobs are moving overseas, Nucor's approach is to partner with our employees to make our company the safest, highest quality, lowest cost, most productive and most profitable steel company in the world."

Headquartered at Charlotte, Nucor operates 53 facilities throughout the United States and one plant at Point Lisas in Trinidad. It also has other operations through wholly owned subsidiaries, Harris Steel and the David J Joseph Company.

Nucor's US mills are in Darlington, Norfolk, Jewett, Plymouth, Auburn, Birmingham, Kankakee, Jackson, Seattle, Marion, Wallingford, Memphis, Crawfordsville, Hickman, Berkeley County, Decatur, Blytheville, Hertford County, and Tuscaloosa.

It has steel products, finishing, building products, fastener, wire and other operations in Florence, Norfolk, Fort Payne, Grapeland, St Joe, Brigham City, Chemung, Phoenix, Fontana, Antioch, Darlington, Oak Creek, Maryville, Waterloo, Swansea, Terrell, Eufaula, Carson City, El Paso, LaCrosse, Lathrop, Portland, Starkville, Wallingford, New Salem, Denton and Dallas.

PT Antam and PT Krakatau ink JV for DRI plant

It is reported that Indonesian mining and minerals company PT Aneka Tambang and steel major PT Krakatau Steel will build a USD 60 million ore processing plant in South Kalimantan province this year.

Both parties signed a joint venture agreement to create Meratus Jaya Iron & Steel. Antam will hold 34% stake in the venture, while the remaining 66% stake will be held by Krakatau.

The plant will have capacity of 315,000 tonne per year initially. The ore processing plant will produce direct reduce iron with all of the output consumed by Krakatau Steel in Banten province. The plant is expected to be built November 2008 and on stream by 2010.

Antam and Krakatau will finance 35%, while the remaining 65% will come from national bank loans.

Mr Fazwar Bujang president director of PT Krakatau said that the joint venture was the follow up to a memorandum of understanding signed by the two companies. He said Mr Fazwar said that "In phase one, the plant will have a capacity to produce direct reduced iron from 315,000 tons of iron ore, which will be used by Krakatau's plant at Cilegon in Banten province.”

In the future, both companies plan to expand the facility's capacity to 1 million tonnes per year and the investment needed on the expansion program is expected to reach USD 600 million.

Recession report - May become worst in last 30 years

Government of Singapore Investment Corp, the sovereign fund that has invested about USD 18 billion in UBS and Citigroup since December, said the world economy may be headed for its worst recession in three decades.

Mr Tony Tan, deputy chairman of GIC in a speech to more than 500 employees in Singapore said that “We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years.”

Mr Tan said that GIC, which oversees more than USD 100 billion, faces its most challenging years since being founded 27 years ago, as the global supply of credit contracts. His remarks come as the fund considers investing more in UBS, which is reeling from USD 38 billion of writedowns.

Mr Guy de Blonay a director at New Star Asset Management in London, which manages USD 1.2 billion in financial stocks said that “The banking industry will probably be the worst affected by a global recession.” He added that “You cannot rule out the possibility of an operating environment for banks taking a sharp turn for the worse. Indeed, history suggests that a deep banking crisis is not over until the sector has been subject to broad re-capitalization and management shake ups.”

The International Monetary Fund this month changed its forecast for global economic growth to 3.7% for 2008 from an earlier projection of 4.1%. It also said there's a 25% chance of a world recession, citing the worst financial crisis in the US since the Great Depression.

Mr Tan said that “The next years may well be among the most challenging years for GIC since our establishment. As banks continue to deleverage, cutting down on their lending activities and causing contraction in credit supply, the prospects for the US economy and possibly even the world economy are fraught with considerable downside risks.”

SSAB to invests in plate heat treatment capacity in US

SSAB Svenskt Stal AB has decided to construct a new advanced heat treating line for quenched and tempered steel plate in the United States. The investment is part of SSAB's strategic focus to increase the volume of core niche steel products and to better meet customers' growing needs for quench and tempered steels. The investment of SEK 1 to SEK 1.5 billions increases the capacity with 200 kilo tonnes to 300 kilo tonnes.

SSAB in a statement said that “The heat treating facility, which will be located at one of SSAB's two plate mills in Montpelier, Iowa or Mobile, Alabama in the United States, will process steel produced at the Company's plants. The final location of the facility has yet to be determined and will be based on consideration of site-specific issues, including regulatory approvals.”

Mr Olof Faxander CEO of SSAB said that “This is a step to further meet the strong and increasing global demand for quenched and tempered steels. The investment enables us to continue to develop the strong production base we now have in the US. This will strengthen our strategy to be the global leader in high strength steel.”

He added that heat treated steel plate is used throughout the manufacturing and construction sectors in applications where strength, hardness and toughness are required beyond those available from as-rolled material. Thanks to its superior properties, the steel from SSAB provides significant environmental advantages, a factor which has a positive influence on demand.

Vallourec and Petrobas develop oil tubes - CEO

Reuters reported that steel tube maker Vallourec is working with Petrobras to develop tubes for two new offshore oilfields in Brazil.

Mr Pierre Verluca CEO of Vallourec at an opening ceremony of a new continuous casting line said that Vallourec will help Brazilian state controlled oil copmany Petrobas to see what kind of tubes are best for the new fields, without giving more details.

Mr Etienne Bertrand director of investor relations of Vallourec told Reuters that Vallourec's business was brisk but the company, like all European firms, was suffering from the effects of a weak dollar.

Mr Betrand said that higher raw material prices were also eroding margins because of fixed-price contracts, meaning there was a delay of a few months before the price increases could be passed onto clients.

ArcelorMittal signs placement and off take agreement of Coal Africa Limited

ArcelorMittal confirmed that it has reached an agreement with Coal of Africa Limited, the coal development company operating in South Africa. ArcelorMittal will enter into an off take agreement with CoAL.

The agreement relates to two mines. The first, Baobab is 100% owned by CoAL has an estimated yield of 2.45 million tonne per annum. The second, Thuli is 74 % owned by CoAL has an estimated yield of 4.2 million tonne per annum. Both mines are located in the Limpopo Province of South Africa.

The agreement will take effect from commencement of mining operations at both mines expected by the end of 2009. Full production at both mines is expected to come on stream by 2011. ArcelorMittal will secure a minimum of 2.5 million tonnes per annum of coking coal from the two mines.

ArcelorMittal also has an option to increase its coal off take to 5 million tonne per annum and will also have the right to nominate one person to be appointed as a director of the Company following completion of the placement of shares. It has been agreed in principle that the coal will be delivered to the town of Musina in the Limpopo province, at a Free on Rail price linked to the FOB price of Kestrel hard coking coal sold by Rio Tinto and reported by Wood Mackenzie.

ArcelorMittal will subscribe to 60 million new ordinary shares in the sum of GBP 66.7 million which represents approximately 16% of CoAL's issued capital on a diluted basis.

Tranche 1 of the placement to ArcelorMittal is now complete. Accordingly, a total of 46,365,000 Shares have now been allotted and issued. Tranche 2 of the agreed placement to ArcelorMittal of 13,635,000 shares remains subject to approval by the Australian Foreign Investment Review Board. Terms and conditions of the of -take agreement are subject to final negotiations, completion of formal documentation and securing all relevant regulatory approvals.

Coal of Africa Limited is focused on the acquisition, exploration and development of thermal and metallurgical coal projects. The Company's key projects, along with its leading metals processing company NiMag Group Ltd are in South Africa.

South Korea slab import prices nearing USD 1000 per tonne

South Korean import price of slab continues to increase on short supply. As per report the current import price is quoted at as high as USD 1,000 per tonne and quotation price from Far Eastern region is prevailing at USD 970 per tonne.

The report added that South Korean mills are facing increasing pressure on their profits, as the squeeze was mainly due to escalating raw material costs.

(Sourced from YIEH.com)

Corus signs major IT outsourcing deal with Capgemini UK

Corus has recently signed a major deal with Capgemini UK to outsource its IT in the UK as well as India and Poland.

Corus has awarded five year outsourcing contracts worth GBP 26 million to IT services and business consultancy Capgemini UK. Capgemini is already managing the mainframe computers vital for its business, with a relationship lasting over ten years. Under the new contracts Capgemini will make the transition of existing IBM and ICL (Fujitsu) mainframe services from Corus sites to Capgemini secure data centres in Bristol and Rotherham.

Capgemini said that it will provide overall service management from the UK, but operational management would be provided from its infrastructure management command centre at Krakow in Poland and additional support from a centre at Mumbai in India.

Mr Dean Freeman director of the IT Multisourcing program at Corus said that "Capgemini was able to demonstrate a terrific track record in running mission-critical IT for major multinationals and key government departments.” He added that "They have also done excellent work for Corus over the last ten years and gained deep understanding of our business and IT needs, and all these factors, together with their convincing and cost effective proposals, made them our first choice in awarding these important contracts.”

Capgemini aims to introduce new techniques such as utility computing, virtualisation and adaptive storage, which it says will reduce mainframe running costs as well as deliver enhanced service levels.

The Corus mainframe computers will be used to support core production, supply chain, stockholding, purchasing, sales ordering and invoicing for around 10,000 employees. The steel maker’s manufacturing sites include Llanwern, Motherwell, Port Talbot, Rotherham, Scunthorpe and Teeside.

AK Steel increase spot prices for carbon steel products

AK Steel announced that it will increase spot market prices for its carbon steel products by USD 50 per ton for all new orders, effective immediately.

AK Steel said that the price increase is in response to increased demand for carbon steel products, as well as the need to recover unprecedented increases in steelmaking inputs.

US steel import in March up by 1.2% MoM

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2.513 million net tons of steel in March 2008, including 2.064 million net tons of finished steel up by 1% MoM and 7% MoM respectively.

Total and finished steel imports through the first quarter of 2008 are both down by 12% YoY total and finished steel imports are up by 8% QoQ and 13% QoQ respectively. Total and finished steel imports on an annualized basis are down 8% YoY and 7% YoY. On an annualized basis, total imports of steel in 2008 would be 30.7 million net tons.

Key products with large increases in March compared to the month before include:
1. Plates cut lengths up by 81% MoM
2. Standard pipe up by 69% MoM
3. Oil country goods up by 47% MoM
4. Galvanized Hot Dipped Sheets & Strip up by 45% MoM
5. Mechanical Tubing up by 35% MoM
6. Plates in Coil up by 27% MoM
7. Tin Plate up by 24% MoM

For the first three months of 2008, products showing increases vs. the same period in 2007 were
1. Line Pipe up by 43% MoM
2. Oil Country Goods up by 14% MoM
3. Heavy Structural Shapes up by 9% MoM

For March, the largest volume of finished steel imports from offshore were:
1. China 239,000 net tons up by 1% MoM
2. South Korea 159,000 net tons up by 5% MoM
3. Japan 138,000 net tons up by 56% MoM
4. India 98,000 net tons up by up 18% MoM
5. Germany 79,000 net tons down by 17% MoM

Tokyo Steel hikes steel prices by JPY 12,000 per tonne

Tokyo Steel Manufacturing announced that it has increased the selling price of all steel items by JPY 12,000 per tonne for distributors for May order.

The price level renews the record for 2 months in a row hitting JPY 100,000 for all items. The firm tries to pass higher cost for raw materials under firm steel demand at home and abroad.

POSCO to hike export price of galvanized steel sheet

South Korea POSCO has raised its list prices for galvanized steel sheet to Japan by KRW 20,000 to KRW 22,000 per tonne.

The increase is being sought to offset skyrocketing raw material expenses. Besides, POSCO is also considering canceling all kind of its price discounts on their steel products.

Once POSCO has canceled the discounts, the new price will push up by another KRW 50,000 per tonne. The reason for the move is because POSCO’s prices are much lower than the prevailing market rate in the global market.

(Sourced from YIEH.com)

Corus plan to invest GBP 60 million in Scunthorpe

It is reported that plans have been submitted for the first phase of a GBP 60 million investment to North Lincolnshire Council.

The cash is set to be spent by the BOC Gas Group as part of a 15 year deal to supply nitrogen and oxygen to the town's blast furnaces.

The work would see two pipelines laid above and below ground one almost three miles in length from the company's plant in Warren Road. A new air separation unit would also be built on the site, which has been supplying the steelworks for 50 years. It is designed to produce more than half a billion tonnes of oxygen and nitrogen a year and would be operational by June 2010.

European rebar price up in April

It is reported that although rebar price in Europe in the first quarter fell behind the global market level, they have climbed up quickly since April.
As per reports, rebar price has increased by EUR 100 per tonne from March to early April. The base price in Italy market this week was at EUR 440 to EUR 450 per tonne. Ex work price for medium size was at EUR 655 to EUR 665 per tonne.

And export price steel rebar in Italy was at EUR 640 to EUR 650 per tonne. In Spain, the base price of steel rebar was at EUR 440 to EUR 450 per tonne and the price in Greece was at EUR 680 to EUR 690 per tonne.

(Sourced from YIEH.com)

Oil price to reach USD 125 a barrel – Hedge fund

Mr T Boone Pickens heads of BP Capital hedge fund recently said that “It will go up. Oil is moving to a substantially higher level say above USD 125 a barrel.” He added that US crude futures hit a record USD 115.54. Oil prices have more than quintupled since 2002, propelled higher by soaring demand from emerging economies like China alongside slow increases in global production capacity.

Mr Pickens said that despite new production from the Canadian oil sands and elsewhere, Mr Pickens said that global crude oil production is unlikely to rise above its current rate of about 85 million barrels per day, while global demand will likely hit 87 million barrels per day in the third quarter of 2008.

Mr Pickens also expects that US natural gas prices to rise from current levels near USD 10 per million British thermal units to USD 12 to USD 14 this upcoming winter.

Mr. Pickens said his fund is now looking for oil and natural gas prices to rise. He told reporters that “The position is long, not short. I covered the short position it was a mistake on my part.”

Northwest Pipe announces result for Q1 of 2008

Northwest Pipe Company announced results for the first quarter of 2008. Sales for the quarter ended March 31st 2008 were USD 94.0 million compared to USD 90.7 million in the first quarter of 2007. Net income for the first quarter was USD 5 million as compared to USD 4.5 million in the first quarter of 2007.

Water Transmission
In the first quarter of 2008, sales were USD 63.9 million for the Water Transmission Group, compared to sales of USD 67.8 million in the first quarter of 2007. Gross profit in the first quarter of 2008 was USD 14.5 million for this Group, or 22.6% of sales compared to gross profit of USD 13.8 million, or 20.4% of sales, in the first quarter of 2007.

Mr Brian W Dunham, president & CEO of Northwest Pipe said that "Overall volume was a little lower than we expected, while margins were a little stronger, resulting in a solid performance. The results for Water Transmission include the results of operations for the Monterrey, Mexico plant which were previously reported separately.”

Tubular Products
The Tubular Products Group recorded sales of USD 30.1 million and gross profit of USD 3.3 million, or 11.1% of sales, in the first quarter of 2008 as compared to sales of USD 23.0 million and gross profit of USD 2.3 million or 10.1% of sales, in the first quarter of 2007.

Mr Dunham said that "We are seeing significant increases in our sales of energy products and continuing growth in pipe for fire protection and agricultural applications. We saw steady improvement in gross margins throughout the quarter and expect that trend to continue for the next few months."

Northwest Pipe Company manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of applications including construction, agricultural, energy, traffic and other commercial and industrial uses.

SSAB Q1 sales up by 47% YoY

Swedish steel maker Svenskt Stal AB announced that its first quarter profit after financials up by 11% to SEK 2.372 billion from SEK 2.138 billion a year earlier, boosted by strong sales development and price increases.

Highlights of Q1 result are:
1. Sales increased by 47% to SEK 12,910 million, of which the North America division accounted for SEK 3,357 million
2. Profit after financial items amounted to SEK 2,372 million, an increase by 11%
3. Profit after tax amounted to SEK 1,701 million, an increase by 10%, entailing earnings per share of SEK 5.17
4. An agreement on the sale of IPSCO Tubular for USD 4,025 million was signed on March 14; accordingly, the business is classified as discontinued operations and is reported in this report separately from the continuing operations.

Mr Olof Faxander president & CEO of SSAB said that “SSAB is able to report a strong first quarter for the results as well as the cash flow. The increased iron ore prices have not fully impacted the results during the quarter since we partially produced and delivered from our stocks. The price increases during the first quarter have largely been able to offset the increased iron ore costs incurred by the Group during this period. The scrap metal prices increased and had an almost immediate impact on the costs for the North America Division, which could not be fully off set by price increases during the quarter.”

Mr Faxander added that “The largest event during the quarter was the sale of the tubular business within IPSCO. We obtained what was, for SSAB, an advantageous price notwithstanding a turbulent financial market. We have thereby secured increased financial flexibility to continue to expand within our niches and expand on new markets. The synergies identified at the time of the acquisition of IPSCO are maintained in the steel operations. The sale is expected to be completed during the second quarter and is conditional on governmental authority approval. Until then, the tubular business is reported as a discontinued operation. The year has begun well. Based on what we see today, we anticipate continued strong demand during the remainder of the year. The full impact of the heavy price increases for coal will not be felt until the third quarter and our ambition is to gradually during the year compensate for these price increases as well as the price increases of iron ore and scrap metal.”

Rautaruukki Q1 profit lower and missing expectation

Steel group Rautaruukki Oyj announced first quarter profits that were lower year on year and that also came in below market expectations. Pretax profit came in at EUR 143 million down from last year's EUR 178 million.

First quarter 2008 highlights
1. Good demand continued for non-residential construction in Northern Europe, Russia, Ukraine and Poland during the first quarter. Demand for infrastructure construction also continued good for road and railway construction and foundation construction.
2. Significant contracts to deliver steel structures and solutions in Russia and the Nordic countries.
3. The order books of engineering customers have remained strong. The demand was brisk especially in the energy industry.
4. Ruukki Engineering launched a profitability improvement program aimed at improving the division’s operating profit by around EUR 20 million in 2008.
5. Good demand for steel products. Driven by strong demand, special products continued to form an increasing share of Ruukki Metals’ net sales to account for 28%.

Mr Sakari Tamminen president & CEO of Rautaruukki said that “The favorable market situation in the company’s core market areas and main customer industries continued during the first three months of the year. Demand for non-residential construction was good, albeit a colder winter than a year earlier in Central Eastern Europe decreased sales volumes in this market area year on year. Residential construction slowed in the Nordic countries and Baltics. The order books of engineering customers are strong and this was also reflected in the demand within Ruukki Engineering. There was good demand for steel products, especially for plate and special steel products.

He said that “Ruukki Construction and Ruukki Engineering increased their share of the company’s net sales year on year as a result of investments and acquisitions. Strong demand for special products clearly increased the percentage of net sales of these products within Ruukki Metals. We will continue to invest to enhance the delivery capacity of special products. Rautaruukki has launched extensive investments to increase production capacity in the rapidly growing Russian and Central Eastern European markets. This will strengthen our position in non-residential construction. The building of new production lines and growing headcount added to costs during the first quarter. The company’s operating profit decreased compared to strong performance year on year, but improved compared to the last quarter of 2007.”

Mr Tamminen said that “Higher than expected increases in the price of raw materials on the world market will add considerably to our own steel production costs during the current year. To offset growing costs, price increases will be implemented and cost-efficiency improved. Brisk demand in the company’s main customer industries and a strong balance sheet provide us with a good platform to grow our business in our core market area both through investments and acquisitions. We expect comparable net sales growth in 2008 to meet the target and to exceed 10%. Operating profit in 2008 is expected to be higher than in 2007.”

Malaysian scrap dealers oppose state move for sole agent

Recycling Today reported that scrap metal dealers in Kota Kinabalu of Malaysia are seeing red over the state’s move to appoint a sole agent to purchase scrap metal despite their objections. The dealers said they were shocked by the announcement by the state.

Their spokesman Mr Callistus Wong said that “The appointment of Superpanel Sdn Bhd is a monopolistic move that would deprive them of their right to earn a living. The dealers would be out of business if they were forced to sell their scrap metal to a sole agent at below market prices.”

Mr Wong said that "Unfortunately, it turned out that the meeting was to introduce the sole agent without giving us a chance to present our case, including our proposals to resolve the issue.”

The dealers noted that, since early this year, the authorities had no longer renewed licenses yearly but on a monthly basis. Dealers also have to sign an agreement with the sole agent and its subsidiary company.

Besides this, they are required to pay MYR 20,000 to Superpanel on signing up and another MYR 12,000 as annual management fee to Winapeak.

The dealers argued that metal theft could be reduced through police cooperation with government departments and agencies and not by appointing a sole agent. They hoped the state would consider their plight and reconsider the decision to appoint the sole agent.

PT Antam to build alumina plant in 2008

Reuters reported that Indonesian state miner PT Aneka Tambang ANTM.JK plans to start building a chemical grade alumina plant on Kalimantan island this year.

As per report the plant is part of the Antam’s plans to reduce its dependence on nickel and step up its bauxite and gold business. Last year, Antam teamed up with three international firms partners, including Japan's Showa Denko KK and Marubeni Corporation to conduct a feasibility study for the plant which will process bauxite into alumina.

Mr Dedi Aditya Sumanagara said that "Our target is to start construction later this year adding that the plant is expected to have a capacity to produce 300,000 tonnes of alumina every year. But he did not elaborate on the investment needed for building the plant as it is still being negotiated with the partners.

Antam plans to speed up a number of projects to help sustain growth when the price of nickel, a key ingredient for stainless steel, falls. The projects include a nickel pig iron project on Maluku island with China's Tsingshan Holding Group and a USD 1.5 billion alumina and bauxite complex with Russia's United Company RUSAL.

Kobe Steel announces issuance of domestic bonds

Kobe Steel Ltd has issued a notice that it has decided to issue Domestic Unsecured Yen Bonds under the terms as set forth below

I .Domestic Unsecured Yen Bonds due 24 April 2013
1. Name: Kobe Steel, Ltd.Series 49 Unsecured Bonds
2. Total Amount of Issue: JPY 10 Billion
3. Denomination of Bond: JPY 100,000,000 each
4. Interest Rate: 1.29% per annum of the principal of the Bonds
5. Issue Price: 100% of the principal amount of the Bonds
6. Redemption Price: 100% of the principal amount of the Bonds
7. Maturity Date: To be redeemed in a lump sum on 24 April 2013
8. Offering Period: 18 April 2008
9. Closing Date: 24 April 2008
10. Method of Issue: Public offering in the domestic market
11. Date of Payment of Interest on the Bonds: Semiannually on 24 April and 24 October
12. Status of the Bonds: Unsecured by assets or guarantees
13. Fiscal Agent: Mizuho Corporate Bank Ltd
14. Underwriters: Mitsubishi UFJ Securities Co Ltd
15. Mizuho Securities Co Ltd as the "Joint Lead Managers"

II .Domestic Unsecured Yen Bonds due 24 April 2018
1. Name: Kobe Steel Ltd Series 50 Unsecured Bonds
2. Total Amount of Issue: JPY 10 Billion
3. Denomination of Bond: 100,000,000 Yen each
4. Interest Rate: 1.84% per annum of the principal of the Bonds
5. Issue Price: 100% of the principal amount of the Bonds
6. Redemption Price: 100% of the principal amount of the Bonds
7. Maturity Date: To be redeemed in a lump sum on 24 April 2018
8. Offering Period: 18 April 2008
9. Closing Date: 24 April 2008
10. Method of Issue: Public offering in the domestic market
11. Date of Payment of Interest on the Bonds: Semiannually on 24 April and 24 October
12. Status of the Bonds: Unsecured by assets or guarantees
13. Fiscal Agent: Sumitomo Mitsui Banking Corporation
14. Underwriters: Mitsubishi UFJ Securities Co., Ltd.
15. Daiwa Securities SMBC Co Ltd as the Joint Lead Managers

Kobe Steel said that both the Proceed to be applied mainly toward the redemption of bonds and also repayment of loans.

AK Steel declares common stock dividend

AK Steel announced that its board of directors has declared a quarterly cash dividend of USD 0.05 per share of common stock, payable on June 10th 2008, to shareholders of record on May 16th 2008.

The company has approximately 112 million shares of common stock outstanding.

Paranapanema presents new re-financing plan

BNamericas reported that Brazilian mining and metals company Paranapanema has presented a proposal to securities regulator CVM to issue convertible debentures worth up to BRR 900 million (USD 541 million).

The offering is part of a financial restructuring agreement between the company and its primary shareholders including pension funds Previ, Sistel and Petros as well as BNDESpar, the private equity arm of national development bank BNDES. The debentures will be convertible into shares

Paranapanema abandoned a plan to carry out an initial public offering of shares earlier this year, due to unfavorable market conditions. At the end of 2007 Paranapanema's debt stood at BRR 1.3 billion (USD 741million). The company reported a 109 million real loss in 2007.

Paranapanema’s businesses include copper smelting and fabricating and fertilizers as well as the Minercão Taboca tin operation. Group tin production is set to rise to around 8,000 tonnes this year following the planned completion in June of a revamp and expansion of mineral processing capacity at the Pitinga mine.

Metso introduces BEST Sea container loading system

Metso announced The BEST sea container loading system from Metso Minerals Industries delivers raw materials to overseas markets by eliminating the bottleneck at the port via traditional break bulk loading.

Metso said that the designed to load shipping containers for export of ferrous and nonferrous scrap quickly and efficiently. Key product features and advantages include a reduction in total loading time; present loading weighment, a single operator design; 20 foot and 40 foot container loading designs and a low maintenance vibratory feeder.

BEST, Brunswick, Ohio, is a leading supplier of precision engineered equipment, turnkey systems and technologically advanced controls. The company’s recycling product line includes nonferrous systems; Enviro-Clean dedusting systems, shredder isolation mounts, metering drum feeders, undermill magnet and ECS feeders, screeners, water injection, shredder controls and BestView production management software.

Rebar prices in Pakistan soften

The International News reported that rebar prices in Pakistan have come down to PKR 60,000 per tonne from PKR 80,000 per tonne, after rising from PKR 50,000 per tonne levels.

The report cited Mr Qaisar Saleem GM marketing of said Pakistan Steel Mills as saying that the government’s decision to import raw material from Iran and India would make raw material availability stable but it is far difficult to plug steel prices. But he added that “There are minimal chances that steel prices would come down even after the government has decided to import raw material from Iran and India.”

He said that international steel prices are going up and due to this it is very difficult to reduce steel prices despite the fact that PSM is providing steel products at the least possible rates.

TMK participated in the Syrian oil and gas exhibition

It is reported that Russian pipe major TMK took part in the 6th Syrian International Oil & Gas Exhibition “Syroil 2008”, which was held from April 7th to April 10th 2008 in the city of Damascus.

Exhibition Syroil, the only oil and gas exhibition held in Syria takes place every two years under the auspices of the ministry of petroleum & mineral resources of Syria. It is one of the most successful specialized exhibitions. It attracts exhibitors and visitors from around the world and was attended by 262 companies from 43 countries around the world.

TMK has become one of the 12 companies representing Russia at the central exhibition event petrochemical complex in Syria. TMK exhibition booth attracted international visitors, among whom was Mr Ibrahim Haddad minister of oil & mineral resources of the Syrian Arab Republic.

PSMC privatization - Panel concerned over delays

Daily Times reported that Pakistan’s Cabinet Committee on Privatization has shown concern over the delay of privatization of Pakistan Steel Mills, Faisalabad Electric Supply Corporation and Services International Hotel and directed the concerned officials to remove the bottlenecks causing delay in the process.

According to sources, Privatization Commission informed that the dispute between federal and Sindh governments over the land was the main cause of delay in privatization process of steel mills. It further informed the committee that industry ministry has been asked to resolve the issue of land with Sindh government.

The committee was further told that the government has decided to take only the land of plants from the Sindh government as the latter was demanding more amount for the land that is under the steel mills.

Officials from the ministry of industries told the committee that issue has been taken up with the Sindh government and the matter would be resolved very soon. As many as PKR 4.5 billion have been approved for repairing of steel mills plants.

According to sources, the cabinet committee also showed concern over the delay in the privatization process of two other public sector entities namely Faisalabad Electric Supply Company Limited and Services International Hotel.

India ready to join TAPI pipeline project talks

PTI reported that India is set to join US backed Turkmenistan Afghanistan Pakistan gas pipeline project this week, even as it rejoins talks on a rival project from Iran.

Mr Murli Deora union petroleum minister said that "We are going to Islamabad at an invitation of Asian Development Bank to attend the steering committee meeting of TAP project. The talks scheduled for April 23rd to April 24th 2008 will see India joining the project." He added that besides signing project heads of agreement, the four nations would also ink a gas pipeline framework agreement for the pipeline.

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

US offers coal exploring technology to Pakistan

It is reported that, following developments on the possible Iran Pakistan China gas pipeline project, the United States has stepped in to offer Pakistan every possible technical and assistance in order to harness one of the largest coal reserves of 198 billion tonnes.

US have asked Pakistan to hold a joint international investment conference in Islamabad in the next two months to promote private sector investments in coal based projects in Pakistan.

Ms Anne W Patterson US Ambassador to Pakistan has formally made this offer when she called on Raja Pervez Ashraf federal minister for water & power. The two sides discussed the regional and global situation along with bilateral cooperation between the two countries particularly investment opportunities in the power sector.

Mr Ashraf stated that Pakistan had close and long standing relations with the United States and stressed the need for continued support of the US to help overcome the energy shortage in Pakistan.

Egypt to raise gas prices in July 2008

Al Mal reported that Egypt will raise the prices energy intensive industries pay for natural gas in July 2008 and again in January 2009 as part of a plan to reduce subsidies.

As per report, Egypt will hike the price of natural gas to USD 2.22 per million British thermal units in July 2008 from USD 1.85 and would increase the price of electricity by 20%.

Egypt has recently announced that it would boost gas and electricity prices for energy intensive industries by 110% and 61% respectively in August 2008, through the gradual elimination of subsidies over 3 years. It added that natural gas would eventually rise to USD 2.65 per million British thermal units. The price increases apply to Egypt's iron, cement, aluminum and fertilizer industries also.

Mr Youssef Boutros Ghali finance minister of Egypt said that energy subsidies would rise to USD 11.13 billion in the 2008-9 fiscal year.

Nabucco project cannot succeed without Iran – Report

Fars news agency reported that the Nabucco project to transfer gas from the Caspian Sea to Europe cannot succeed without Iran.

Mr Nosratollah Seifi MD of National Iranian Gas Exports Company said that the 3,000 kilometer long Nabucco gas pipeline will face a number of technical problems on its long route from the Caspian region to Europe. He added that the project has already been stalled in the absence of guarantees that there will actually be enough gas flowing through the pipeline.

Mr Seifi dismissed the idea of substituting Iraq, Turkmenistan or the Republic of Azerbaijan for Iran in this project and said that "Iraq is currently facing a serious shortage of natural gas in its northern region and it will take many years for the country even to supply enough gas for its domestic consumption."

He further added that transfer of gas from Turkmenistan through the Caspian Sea will be expensive and in addition, Turkmenistan’s obligations to export gas to Russia and China do not allow it to export gas to other countries in Europe.

Tenders floated for 2 key dry dock contracts at Duqm Port

It is reported that development of a world scale dry dock at Duqm continues to gather pace with the Tender Board inviting specialized international and local firms to bid for 2 key contracts involving the supply of dock gates and pump systems for the project. A pair of dock gates, collectively weighing around 3,000 tonnes, will be installed at the entrance of two graving docks that are at the heart of the ship repair yard currently under development as part of the Duqm Port and Dry Dock complex.

Development of the dry dock complex is being overseen by Oman Dry Dock Company, with South Korea’s Daewoo Shipbuilding & Marine Engineering Co Limited as its strategic partner. The function of the dock is to seal the dock for water tightening during dry docking of vessels and ship repair work.

Mr Young Seok Choi manager procurement department said that "The dock gates are the main facilities for the highly efficient operation of a dock. The docks adopted by ODC have a ballasting system with ballast tanks to keep the seawater inside, as well as a gravity pumping system to allow the gates to float. When the vessels are moved into the dock, the dock gate will be set on the dock entrance and sunk for water tightening with water ballasting. Then, water inside the dock will be pumped out via a dock pump system. Consequently, the dock gate will seal the dock through the pressure differences between inside and outside of dock gates."

Mr Choi said that fabrication of the dock gates will require specialist expertise. The overall length of the first set of dock gates is an enormous 96.6 meters and boasts a height of 14.05 meters. The second set is slightly smaller at 81.6 meters, but features the same height. Both sets of gates are 8 meters thick. He added that "Transporting these huge structures, which weigh a total of 3,000 tonnes, will not be easy. Moreover, they have to be delivered as whole single pieces. Shipping them in rough seas and windy conditions can be hazardous. Therefore, we have offered interested bidders the option of fabricating the dock gates directly at our site in Duqm."

ODC is expecting major international pump makers to bid for this contract. The pump system must be in place before the installation of the dock gates. Meanwhile, work on the general infrastructure for the Duqm Port & Dry Dock project is well underway.

India to hold talks with Pakistan over IPI

It is reported that Mr Murli Deora petroleum minister of India will hold talks to resolve differences with Pakistan over the transit fee and transportation tariff for Iran Pakistan India pipeline project on April 25th 2008.

Mr Deora's visit marks the first formal contact between India and Pakistan since the new coalition government led by the Pakistan People's Party assumed office. India and Pakistan will also hold talks on the USD 7 billion IPI project for the first time since June 2007.

Official sources said that differences remained on the transit fee and transportation tariff to be charged by Pakistan for Iranian gas sent to India by the proposed IPI pipeline. It added that Mr Deora's talks with his Pakistani counterpart Mr Khwaja Asif will be aimed at narrowing down these differences.

Yemen inks oil sharing agreement with 10 oil firms

Yemen news agency Saba reported that Yemen has signed oil production sharing agreements with 10 oil companies in seven exploration areas as it plans to raise its oil output to around 500,000 barrels per day in 2010 with these and other deals with international companies. Production at the end of 2007 stood at 317,000 barrels per day.

Among the companies that have signed deals were Austria’s OMV, India's Indian Oil Corporation, Norway's DNO and independent oil firm Kuwait Energy Company. The contracts were for blocks awarded in Yemen’s third international bidding round held in 2006.

Yemen launched its fourth round in August 2007 for 11 blocks and said in January 2008 that it had accepted 25 of 30 bids from international companies for the blocks. It will announce the winners of that bidding round on July 30th 2008.

Companies accepted in the fourth bidding round included US major Exxon Mobil, France's Total, Norway's Statoil and Spain’s Repsol.

ADB ready to finance Pakistan for IPI project

Daily Times reported that Asian Development Bank has assured Pakistan to provide financing for materializing the billion dollars Iran Pakistan India gas pipeline project. Mr Peter L Feden country director of ADB in Pakistan assured this Mr Khawaja Asif federal minister for petroleum & natural resources.

ADB is also a sponsor of Turkmenistan Afghanistan Pakistan India gas pipeline project. ADB has conveyed to Pakistan, besides sponsoring TAPI gas pipeline project, it is ready to provide financing for other major gas pipeline project too.

Mr Feden said that "Pakistan is the second country, after India, for which ADB is contributing for the development projects and that normal contribution of ADB for Pakistan stands at USD 1.5 billion."

Pakistan and Iran have finalized the draft of gas sales purchase agreement on IPI gas pipeline deal that is ready to be signed between two sides. The draft of GSAP on IPI had been finalized during the round of talks between Iran and Pakistan here in Islamabad, but it has not been signed so far. Sources said that Iranian President would visit Pakistan on 28 April and progress would be made on the project.

Oman Shipping earmarks USD 4 billion for fleet expansion

Mr Kuldeep Mathur CFO of Oman Shipping Company said that it will spend up to USD 4 billion in 3 to 4 years to expand its fleet size.

He added that it is looking to expand its fleet mainly to meet demand for energy transportation.

Eni SpA eyeing oil development contracts in Iraq

Bloomberg reported that Italian oil major Eni SpA is bidding for new oil development contracts in Iraq as it seeks to attract foreign investment.

It may be noted that Iraq will open at least 6 major oil and natural gas fields for exploration and production in its first licensing round since the US led invasion in 2003, as the country seeks to raise output. Iraq selected 35 out of 120 US, European and Asian companies that submitted bids to participate in the licensing round.

Exxon Mobil Corporation, Royal Dutch Shell Plc and BP Plc were among the 35. ConocoPhillips, Chevron Corporation, Total SA, Eni and Russia's OAO Gazprom and OAO Lukoil also are part of the group.

Oil companies are seeking resources to replace production from maturing fields and boost earnings as oil rich countries demand a larger stake of the profits. Iraq wants to almost double production to 4 million barrels a day by 2009 with expertise from international companies.

Cicek Shipyard launches 1300 TEU container ships

Portnews.com reported that Turkey based Cicek Shipyard has launched its first container ship. The 1300 TEU ship was named Ayse Naz Bayraktar and is due for delivery in July 2008. She is the first of two 22,000 DWT multipurpose container ships ordered from the yard by Bayraktar Shipping.

The design of these two ships allows for a high intake of 9 feet 6 inches high containers and two hatches can accommodate 45 feet containers, including the 2.5 meter wide palletwide containers now widely used in the intra European trades. However, they have been designed in such a way that they could be switched to break bulk or bulk operations if required.

The vessels’ nominal container capacity is stated to be 1287 TEU, 775 TEU being on deck and 512TEU below deck. At 14 tonnes homogeneous, the container capacity is 910 TEU. Further flexibility is provided by two 45 tonne Liebherr shipboard cranes, making the ships fully self sustained. An MAN B&W main engine, developing 11,060 kW at 127rpm, provides sufficient power for a 19 knot service speed at 90% micron.

Bayraktar’s existing container vessels are all chartered out to leading global carriers for feeder operations and the new vessels are expected to be similarly employed, although they are equally suitable for trades such as Mediterranean and North Europe.

DP World Nhava container traffic in 2007-08 up by 11% YoY

DP World Nhava Sheva, which began operations in 1999, has handled a record 1.508 million TEUs of container traffic in 2007-08 up by 11% YoY as against 1.359 million TEUs in 2006-07.

Gazprom and Iran sign cooperation agreement

Interfax reported that Gazprom has signed an agreement with Iran on development of oil and gas fields, participation in exploring for hydrocarbon reserves and investment.

Mr Seifollah Jashnsaz the managing director of the National Iranian Oil Company announced the signing on Iran's English-language Press TV recently. He said discussion is now underway in the Oil Ministry to have the agreement serve as the basis for signing a contract.

Indo Pak study group setup for combined export strategy

Daily Times reported that India and Pakistan have agreed on a series of trade related confidence building measure and announced setting up of a joint study group at the private sector level to explore possibilities of coordinated export strategy in potential areas.

Four members from the private sector will be identified from each country to be part of the joint study group. The group will make recommendations for enhancing the combined share of India and Pakistan in the world market with special focus on cooperation in the textile sector.

Mr Tariq Ikram CEO of Trade Development Authority of Pakistan said that in the textile sector, the combined market share of India and Pakistan in garments, made ups, towels, etc was far below that of China. He added that "A joint strategy for marketing such goods in the international market would be of great help to both the countries. There could be possibilities for forming joint ventures between the two countries in product lines that hold promise to make inroads into export of goods, where world market is increasing phenomenally."

He said that India can directly import oil and oil products, cement, fishery products, fruits and vegetables, cut and uncut diamonds and engineering goods from Pakistan, which otherwise reach here via third country. Pakistani official told gathering to a thunderous applause that a major breakthrough has been achieved with the import of cement from Pakistan via Wagah border.

He also responded favorably to a suggestion by Indian industrialists that Pakistan should prepare a positive list for imports from India along with a few negative items that can be taken out of the free trading basket. He, however, said that such decisions could be taken only after discussing the issues with the stakeholders in Pakistan.

Turkmenistan ready to resume gas supply to Iran

Interfax quoted Iran's Press TV channel reported that Mr Rashid Meredov Foreign Minister of Turkmen has expressed Ashgabat's readiness to resume gas deliveries to Iran at a meeting with Mr Mohammad-Reza Forqani Iranian Ambassador to Turkmenistan.

The TV company said "Mr Meredov said at the talks with Forqani that the export of Turkmen gas to Iran will soon be resumed."

Turkmenistan stopped natural gas deliveries to Iran in late 2007 after the two countries failed to agree a price.

Chinese steel plate export transactions soften

It is reported that hot rolled steel plate export offers have been on the rise, but the transactions are described to be not ideal in face of current high price level. There have been fewer contracts, especially for shipments to Asia.

Quotations for commercial 15mm to 40mm plate by tier two steel makers are prevailing at USD 985 per tonne to 995 per tonne FOB, May production and June shipments. There has been a jump of USD 45 per tonne to USD 50 per tonne from those for April shipments. While offers by tier one steel mills have rise to USD 1080 per tonne to USD 1100 per tonne FOB. The swift rise is mainly driven by the strength of Chinese domestic market price and further increase in overseas market. However, most traders and steel mills disclose that buyers are not so interested to purchase at the updated levels.

According to its export department some tier two steel makers have further lowered the proportion of common carbon plate exports and emphasis is attached to the sales of ship plate and low alloyed plates. Tianjin Steel is exporting more plate under the grade of SM490 and S355JR or S355J2 so as to gain better profit. There is an extra of USD 25 per tonne to USD 30 per tonne for S355JR grade on the basis of S235JR.

Ship plate by tier two steel mills are being tagged at USD 1140 per tonne to USD 1160 per tonne FOB as base for 14mm to 25mm thickness in 2.5 meter width and 8 meter length. While those by tier one producers are well above USD 1200 per tonne FOB as base Price for 6mm to 8mm ship plate even have jumped to around USD 1400 per tonne FOB.

(Sourced from MySteel.net)

Iron ore stocks at Chinese ports reach record levels

It is reported Chinese iron ore stockpiles are now at an all time high of 61.6 million tonnes around 15 million tonnes higher than the end 2007 total.

(In million tonnes)

Hanbao Steel commissions BF No 1

Mr Liu Rujun, the board chairman of Handan Iron & Steel Group announced on April18th 2008 that Hanbao Steel Company under Handan Steel Group has commissioned BF No 1 having 3,200 cubic meter capacity.

Mr Li Lianping general manager of Hangang said that the commission of BF No 1 reflects that the new address project in Hangang has entered a new construction phase. In the process of the construction, design, the participation units closely cooperated with each other, overcame difficulties one after another. He hopes the units can continue to make efforts to timely complete the construction project.

Malaysian Smelting to build new tin unit in China

Xinhua reported that Malaysian Smelting Corp Bhd will spend USD 6.37 million to build a new tin smelting plant it partly owns in China’s Guangxi Autonomous Region.

Mr Mohd Ajib Anuar CEO said “The smelting plant will have an initial output of 3,000 tonnes per year of refined tin and tin based products, including tin chemicals. It will increase production to up to 10,000 tonnes per year, subject to market demand.”

Last year, MSCB entered into a joint venture to own and operate the tin smelting plant with Guangxi Guilin Jinwei Realty Co. and Vertex Metals Inc of Taiwan. The joint venture company is called Guilin Hinwei Tin Co Ltd. The plant, of which the company holds a 40% stake, is due to begin production by June this year.

Baotou Steel in Q1 exports reach 283,000 tonnes

It is reported that steel products export of Baotou Iron and Steel in the first quarter this year reached to 283,000 tonnes valuing at USD 176 million up by 35% YoY. Other products export was 12.34 million tons, valuing at USD 1.49 million.

It is learned that Baogang wins 83,000 tonnes of steel rail order from Malaysia at the end of March this year. The total import value of the company reached to USD 92.57 million increased by 70% YoY. Iron ore import in the first quarter reached to 680,000 tonnes up by 23% on an annual basis.

Laiwu Steel supplies H beam to Chonche Group

It is reported that Laiwu Steel and Chonche Group Beijing Chonche Vehicle Company recently signed the supply contract for the first batch of 2,050 tonnes Q345B low alloy H-beam steel.

It marks that Laiwu Steel’s H-beam has successfully entered into Chonche Group, and the products were sent to the construction scene on April 13th 2008.

Beijing Chonche Vehicle Company is a subsidiary of Chonche Group, is the vehicle accessories, vehicle manufacturing plant designated by the Ministry of Railway. The company is building Chonche industrial park in Jinan high-tech zone.

The success of the signing of the contract opens up vast prospects for more in-depth cooperation between Laiwu Steel and Chonche Group, and lays foundation for Laiwu Steel’s H-beam new product used in equipment flat-vehicle crossbeam to enter into Chonche Group.

WISCO sells carbon credits to Italian ENEL

It is reported that carbon transaction between Wuhan Iron & Steel Group Co and ENEL in Italy have already been approved by international authorities and is now declaring for registration in UN. Technology Department in provincial government in Hubei confirmed the information on April 21st 2008.

According to the agreement, ENEL will purchase 3 million tonnes of carbon dioxide emissions reduced by WISCO at a price of EUR 28 million per year (CNY 300 million), which would continue to support energy saving and emission reduction in WISCO.

WISCO has constructed eight projects during “11th five year plan”, including No 1, No 2 and No 3 CDQ power generation, No 2 and No 4 BF gas power generation. These projects would not only reduce carbon dioxide emission, but also could generate 3 5 billion KWH power per year. Total investment of these projects is CNY3.1 billion.

Province wise output of ferroalloys in China in Q1 of 2008

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

In million tonnes

(Sourced from MySteel.net)

Taiyuan maintains May prices for HRC

It is reported that latest EXW price of HRC of Shanxi based Taiyuan Steel stands at CNY 4790 per tonne for Q235 3.0mm HRC and CNY 4710 per tonne for Q2355.5mm HRC.

Prices listed above are exclusive of 17% VAT effective from April 23rd 2008.

(Sourced from MySteel.net)

Taiyuan hikes May prices for medium plate

It is reported that Shanxi-based Taiyuan Steel publishes its latest prices for medium plate produced in May. Prices are raised by CNY 100 per tonne from the level in April.

Q235 14mm to 20mm medium plate is now quoted at CNY 5260 per tonne.

Prices listed above are exclusive of 17% VAT effective as of April 23rd 2008.

(Sourced fro