TATA BlueScope launch SMARTRUSS System Image file

TATA BlueScope Steel, a 50:50 JV between TATA Steel and BlueScope Steel, has announced launch of LYSAGHT SMARTRUSS® system, a technologically advanced steel roof support system for all types of roofs and buildings. SMARTRUSS® system builds on the experience and product knowledge to enhance construction practice for the building segment and has offered an innovation in construction technology.

Its manufacturing plant at Sriperumbudur, Tamil Nadu will be supplying these truss systems for the customers in South Asian countries.

According to the company, the new offer exhibits a range of benefits over other building materials. SMARTRUSS® system is made from light weight high strength steel which provides inner strength to protect and maintain the roof’s structural integrity and quality of construction. It is light weight and therefore easier to handle, store and transport. SMARTRUSS® system is durable and strong, non-combustible, termite resistant and offers better corrosion protection and a maintenance free life. The truss members are made from ZINCALUME® steel which is 100% recyclable and an extremely environmentally friendly option for construction. Moreover, SMARTRUSS® system is designed to support any type of roofing product and provides a sustainable base to roof aesthetics.

Mr Chris Hargreaves president of TATA BlueScope Steel said “SMARTRUSS® system has been tested and researched extensively at the BlueScope Steel R&D centres in Sydney, Australia. It has been extremely successful and has proven performance in several countries including Australia, China and South East Asian nations, for residential, commercial and even small industrial applications.”

Mr Hakimuddin Ali VP Building Products and Distribution of TATA BlueScope Steel says “SMARTRUSS® system is an ideal solution to replace the current practices with the more advanced techniques that will elevate the way we do construction. The SMARTRUSS® system technology comes with many benefits such as fast and accurate design, custom built truss solution, which offers aesthetics along with speedy construction.”

Maoists raid Essar Steel iron ore beneficiation plant in Chhattisgarh

It is reported that About 300 heavily armed Maoists raided Essar Steel's plant near Kirandul in Chattisgarh burning around 53 trucks and three heavy machines.

Police said rebels overpowered a few employees working in the plant during the night shift and then sprayed diesel on vehicles and set ablaze at least 53 trucks.

The rebels left pamphlets at the attack site saying their act was to protest against the transportation of local natural resources, such as iron ore, outside the state and the country. Maoist rebels say they are fighting for the rights of the poor and landless villagers.

Essar Steel supplies iron ore from its 8 million tonne per annum iron ore beneficiation plant near Kirandul to the pellet plant in Visakhapatnam. The iron ore slurry is pumped through a 267 kilometers pipeline to the pellet plant.

SAIL RSP supplies bricks for SAIL BSL blast furnace

It is reported that a total of 16 tonnes of Mag Carb bricks, which functions as heat absorbers in blast furnaces, were dispatched from SAIL Rourkela Steel Plant to SAIL Bokaro Steel Plant.

The order worth INR 1.38 crore for supply of bricks to BSP to be used in their steel melting shop D converters was received after successfully completing an earlier order in 2005-06.

The brick produced in RSP is in demand in other steel plants because of superior quality. The plant's SMS I had achieved a record lining life of 2012 heats and SMS II had achieved a record lining life of 4267 heats in 2007-08.

Mr Ramaraju take sover as chairman of SAIL MEL

IANS reported that Mr R Ramaraju MD of Steel Authority of India Limited’s Bhilai Steel Plant has been nominated as director and chairman of Maharashtra Electrosmelt Ltd, which is based at Chandrapur in Maharashtra.

SAIL BSP statement said that “The responsibility of Mr Ramaraju will be in addition to his present posting as managing director of BSP.”

JMACC opposing ArcelorMittal plant in Jharkhand

As per media reports, Mr Xavier Dius spokesman of Jharkhand Mines Area Coordination Committee recently said that ArcelorMittal’s CSR efforts in mining areas are just a means of getting entry there.

Mr Dius said that "ArcelorMittal won’t be allowed here in any way. They might be sincere when they talk about CSR, but we will not allow even an inch of land to be mined here, even if they distribute gold. There is no entry for ArcelorMittal or any mining personnel, even from the government, in this area. For 150 years, especially after independence mining has been done. There are no forests left now."

Mr Dius said that "The Koal and Karo rivers were seen as a source for water for the industrial belt planned along the expressway from Jamshedpur to Ranchi. For 30 years, we have not allowed damming."

On asking why target ArcelorMittal, he said that "No, we are not specifically against ArcelorMittal. For us the whole industry is one, just as all iron ore and all steel is one in the metal industry. We rate Mittal on same level as Vedanta and Anil Agarwal, if not blacklisted miners. We sympathize with the 500 steel workers in Grance who are being retrenched after Mittal took charge. Besides where were they all these years? What is the history of their philanthropy or CSR?"

Two firms enter shipbuilding sector in Bangladesh

FE reported that shipbuilding industry gets a huge boost as two of Bangladesh’s biggest conglomerates announced their entry into the booming sector.

AS per report, power conglomerate Meghna Group and real estate giant Rangs said that they are going into ocean going ship building industry amid boom in orders from the European ship companies. Meghna would build Bangladesh’s biggest shipbuilding yard at a cost of USD 35 million with technical help from South Korea's giant shipbuilder, STX Heavy Industries.

Mr Afzal Hossain GM of Meghna said that "The group will sign an agreement with the STX to build a state of the art shipbuilding yard and slipways. Already we have huge land at Meghnaghat on the river Meghna. We will initially build 2500 DWT ocean going bulk carriers for our company and also for European buyers."

Mr Afzal said that Meghna would also procure all its machinery from the STX but it does not have any plan to go into JV with the STX. He added that "Our aim is to build the biggest ship building company in the country. And that's why we are signing technical and machinery deal with one of the top companies in the world."

Rangs Group, which owns one of the oldest shipyards on the river Karnaphuli near the Chittagong Port, has signed a joint venture deal with a local consortium to build ocean going vessels for a big Dutch buyer. The JV is now transforming Rangs' Fisheries Shipyard into a top class ship manufacturing facility, ready to manufacture ships within months

Mr Abdul Hannan GM of Rangs said that "We will initially build ships worth EUR 20 million annually for a reputed Dutch shipping company. If we can satisfy the company, it said it would go into JV with us within a few years. The 13 acre Fisheries Shipyard has already built a hydrography ship several years ago, but since then it remained idle, only catering to the repair needs of Rangs, fleet of ocean going fishing trawlers."

MOIL denies IPO plans

Senior officials of Nagpur based Manganese Ore India Limited said that there is no proposal to divest its stake at present. The officials were reacting to media reports of the company submitting a proposal to disinvest around 20% of the central government's share in the company, through a public issue.

An executive of MOIL said that "There is no such plan at the moment. In fact, during the visit of Mr Ram Vilas Paswan union minister for chemicals, fertilizers & steel to Nagpur for inauguration of medical camp by MOIL in January, he mentioned in his speech that MOIL may also go for employee’s stock option like many other PSUs in the India."

He added that "Accordingly, MOIL had earlier approached its administrative ministry with a proposal for ESOP. There is, however, no proposal to divest 20 % but the proposal is related to employees stock option."

Competition Council of India calls steel makers for a meet

FE reported that Competition Commission of India has put the sector under scanner and has called a meeting of steel industry associations and major players later in April 2008 to discuss their cartel like tendencies.

Sources close to the development said the Indian Steel Alliance, TATA Steel, Essar, Steel Authority of India Limited, JSW Steel are among those who have been called for the meeting. Along with them, The Cold Rolled Steel Manufacturers Association, Sponge Iron Manufacturers Association, the Indian Stainless Steel Development Association as well as alloy steel producers have been summoned by the watchdog.

Mr Vinod Dhall acting chairman of CCI is expected to stress on the need for market friendly policies by the steel companies. It is also likely to warn them against cartelization actions such as market sharing policies, bid rigging and pricing strategies, all of which can lead to hefty fines and penalties. Imprisonment provisions under the competition law will also be pointed out to the industry players.

Monopolies & Restrictive Trade Practices Commission too is inquiring allegations of cartelization against manufacturers of steel and cement.

SCI to outsource ship management

As per Mr TR Baalu union minister of shipping, road transport & highways, Shipping Corporation of India proposes to outsource management of ships.

Shipping Corporation of India’s decision is primarily actuated by the acute shortage of qualified and competent seafaring officers which in the recent past has resulted in the loss of trading days.

Keeping in view the business dynamics and availability of qualified and competent manpower, the shipping companies all over world including some Indian companies often place their vessels for manning and management under the charge of competent and qualified managers in course of their business.

The seafarer’s unions namely Maritime Union of India, National Union of Seafarers of India and Forward Seamen’s Union of India along with SCI Officers Association and SCI Staff Union jointly opposed the notice issued by SCI inviting tenders for manning and technical management of 30 vessels.

Builders renew calls for Steel Regulatory Authority'

Various associations under building construction sector has urged the union government to establish Steel Regulatory Authority to ensure fair trade practices and control the steel price which had increased by 50% in the last 3 months.

Mr Srinivasan chairman of Coimbatore Centre of Builders Association of India, Mr K Subhash former president of Association of Consulting Civil Engineers, Mr O Lakshmanan president of Indian Institute of Architects and Mr C S Ramasamy president of Coimbatore Property Developers Association said that the state and the centre were mute spectators in the unprecedented rise in the prices of the steel and cement. They added that there was no shortage of materials and no serious supply demand mismatch. It was clear that companies had hiked the prices by adopting unhealthy market practices and raised the prices of the cement to 45% and over 50% to the steel.

Mr Srinivasan said that BAI would conduct an all India meeting in Thiruvananthapuram on May 11th 2008 to decide future course of action, including stoppage of construction work.

India to investigate mystery of MV Rezzak disappearance

It is reported that Indian shipping ministry has written to the Central Bureau of Investigation to get to the bottom of the ongoing probe in the case of missing MV Rezzak by contacting its counterparts in Turkey, Russia and Panama.

Mr TR Baalu union minister of shipping, road transport & highways said that "We wrote to CBI in the wake of receiving petitions from the missing crew's family members who suspected that the ship had been hijacked. CBI, in turn, has been in touch with other agencies to find out the truth. An officer from the directorate general of shipping has been sent to Turkey and Russia to participate in the investigation along with those from Panama. His report is awaited."

The need to involve CBI was felt in wake of conflicting reports ranging from hijacking of the ship to suspected maritime fraud reaching the ministry. Though initial reports suggested that the vessel had sunk due to a technical fault, the government has refrained from jumping to any conclusion till the completion of the simultaneous probes launched in Turkey, Russia and Panama.

MV Rezzak, registered in Panama, had mysteriously disappeared on February 18th 2008, approximately 90 miles from the Turkish coast, after having sailed from Novorossisk, the previous day. The ship was carrying steel billets.

Coke price surge forces pig iron makers to use domestic suppliers

BS reported that, faced with tremendous margin pressure due to runaway raw material prices, pig iron producers have started blending domestically produced metallurgical coke with the imported variety in the proportion of 70:30. By doing this, pig iron producers save up on at least 30% of the cost of met coke which has been the only breather in terms of cost control. Prices of iron ore have surged dramatically in the last one and a half month.

Imported mainly from China, coke has gone up to INR 22,000 a tonne from INR 18,000 a tonne during the period while metallurgical coke of domestic origin is quoted at INR 13,000 to INR 14,000 a tonne with 28% ash content.

The benchmark variety with 22% ash content metallurgical coke in India is sold at INR 22,000 a tonne. The prices of iron ore have also spurted by 25% in the last one month, affecting margins. Thereby, independent pig iron producers have reduced their production capacity by half, despite huge build up of demand from steel producers.

An industry source said that "Small and medium size units are presently operating at 40% to 50% capacity. However, captive producers, including SAIL, TATA Steel and Jindal Steel & Power are operating with full capacity."

CIL plans to approve new R&R policy in 3 months

Coal India Limited said that its new resettlement & rehabilitation policy with focus on community engagement would be approved soon.

Mr Partha S Bhattacharjee chairman of CIL said that ''We will push the maximum quantity of coal to every nook and corner of India so that the crisis is over soon. It will take 3 months time to overcome the crisis.''

Describing the proposed R&R policy as unique, Mr Bhattacharjee said that the new policy would focus on the overall development of the community instead of only providing jobs to the affected people and the land oustees. He added that ''The new policy intends to change the living standard of people by increasing their employability.''

He said that the proposed policy would be better than both the national R & R policy and that of the Orissa government. Citing the instance of its Raj Mahal project in Jharkhand, he said that MCL was planning to set up first rate rehabilitation centers in Orissa and in other parts of the country.

Builders seek regulator to check steel and cement prices

Builders’ Association of India has said that the union government should establish a regulatory authority for steel and cement to curb arbitrary price rise in the materials.

Mr Mahesh Mudda chairman of the Mumbai Chapter of BAI said that the growth of the construction industry was down from about 14% to 12% in 2006-07 and expected to drop to 9.6% in 2007-08, primarily due to price rise in steel and cement.

Mr Mudda alleged that while steel prices had gone up by about 70% from about INR 28,000 in January 2007 to INR 48,000 in March 2008, cement prices over the past 3 years had risen from INR 152 a bag to INR 248 in 2008. He added that "The uniform pattern of the price increases from time to time and in tandem clearly indicated cartelization."

The component of steel and cement together account for 50% in construction works and the steep rise in their prices was forcing member-contractors working on government contracts to slow down and seek a price revision. While World Bank assisted projects provided a reasonable price escalation clause, those of Government bodies, such as municipalities and public works department, had no provision to compensate for sharp increases.

Mr Mudda said that contractors could not stop work as they had committed to execute the work and remitted security deposits. Further, stoppage of work would lead to the Government agencies withholding payments for other works either in progress or completed by them. The only option left was non participation in tender processes, which they had resorted to in the case of two tenders floated by the Central Public Works Department for works related to the Commonwealth Games in Delhi.

He further added that following a representation by the BAI, the Maharashtra government had formed a committee to look into the issue and submit its report within a month.

Consumer affairs ministry sees no link between price rise and futures

It is reported that India’s consumers’ affairs ministry has opposed continuing with the ban on some farm commodities, stating that there appears to be no correlation between price rise and trading of these items. The ministry has expressed its view to key economic ministries.

The consumer affairs ministry, which is the nodal ministry for commodity exchanges, has based its findings on independent studies carried out on price movements of various commodities both perishable such as potato and onion as well as non perishable such as pulses. Findings of a study carried out by IIM Lucknow also conclude that price movements of most of these commodities have been independent of trading in the futures market.

Citing examples to justify its stance, the ministry has quoted price movements of commodities such as steel and cement. While prices of steel remained firm and escalated steeply despite being traded, cement saw sharp price spikes even though it is not traded on commodity exchanges.

It argued that prices of some non listed commodities have also risen. For example, the price of iron ore has witnessed a substantial increase through it is not traded on the exchanges. It also argued that though future trading in rice was banned in 2007, yet its wholesale price rose about 26% in one year. Global prices of the commodity have gone up from USD 400 USD 500 per tonne to over USD 700 per tonne and expected to cross USD 1,000 per tonne by June 2008.

The ministry has also cited the Chinese example, where there has been brisk trading in agricultural commodities like soybean, maize, sugar and wheat. It said trade of essential commodities in China continues irrespective of price movement.

The ministry’s stand comes even as policy makers are debating the findings of the Abhijit Sen Committee report that went into the issue of commodity futures trading and its possible impact on spot prices. Similar views have also been expressed by the Planning Commission and finance ministry which are working overtime to rein in prices of essential food items.

Currently, more than 100 commodities are traded on 3 national and 21 regional exchanges. The volume of trade is stated to be INR 3600,000 crore in 2006-07, a significant jump from INR 1300,000 crore in 2003.

Indian Railways may sign MoU with Russia and Iran

It is reported that Indian Railways may sign a MoU with its Russian and Iranian counterparts in May 2008 in Seoul, where the International Union of Railways would have its next meeting.

The details of the MoU are yet to be worked out, though broadly it would promote the north south rail corridor in the Trans Asian Railway network. The corridor envisages connecting Northern Europe to Persian Gulf. There would be further rail cum sea connectivity with India through the Western port ports.

The Indian Railways Chairman, Mr K.C. Jena, who had recently visited Iran in his capacity as the chairman of International Union of Railways said this in media briefing here on Wednesday.

Iranian Railways has also asked its Indian counterpart to cooperate in various areas like training, electrification, rail link and port development projects in Iran. All these projects would primarily encourage rail transportation on TAR network’s north south corridor.

Mr KC Jena chairman of Indian Railways said that "Iran has sought cooperation from Indian Railways towards training its officials in India. We also discussed exchanging teaching staff for the Middle East Railway Academy, to be set up under the aegis of UIC." He added that Iran wants Indian firms to participate in developing the port of Chabahar and constructing a rail link connecting the Chabahar port to Farhaj in Iran.

With this, sea connectivity could be established between the Iranian port and western ports of India, thus bypassing Pakistan. Between Russia and Iran, the connectivity could be through rail via Azerbaijan or rail cum sea

BHEL projects can now be monitored online – Report

In a bid to streamline the monitoring of power project schedules to be completed during the 11th Plan period, the implementation of a new web based project monitoring system covering Bharat Heavy Electricals Limited’s projects has been kicked off.

Mr Jairam Ramesh union minister of state for power & commerce said that "This new monitoring system would enable us to get a real time, concurrent status on project schedules and thereby facilitate collaboration and identification of delays for timely intervention. We are trying to get the system in place by August 15th 2008."

Philadelphia based Primavera Systems Inc has been roped in for implementing the project. The system would enable connectivity to project sites through its monitoring software residing on a centrally located server, thereby enabling collation of information on manufacturing supplies status from BHEL’s units, construction status from project sites, material clearance status and resources allocations at sites.

Equipment supplied by BHEL is slated to account for between 50% and 60% of the total generation capacity of over 78,000 MW envisaged during the 11th Plan period.

Suryachakra Power creates EPC division

Suryachakra Power Corporation Limited recently announced that its board has approved the opening of an EPC, consultancy & contracts division.

Suryachakra Power Corporation is setting up projects through subsidiaries Lahari Power & Steels Limited, 105 MW coal based group captive power plant, Sri Panchajanya Power 5 to 6 MW solar thermal power plant and South Asian Agro Industries Limited, a 5 to 6 MW solar thermal power plant with support from Man Solar Millennium of Germany.

AP Genco to invest INR 9,000 crore to add 2,324 MW capacity

AP Genco has turned the corner registering profits for the second consecutive year, wiping out accumulated losses and is on course to investing about INR 9,000 crore to add about 2,324 MW. For this addition, AP Genco has achieved financial closure and these projects are at various stages of implementation with 1,500 MW to be added by this fiscal end.

Mr SV Prasad chairman of AP Genco said that the performance of the corporation has been significant with the company logging revenues of INR 4,617 crore up by 6.7% YoY over last year’s INR 4,325 crore. It earned a profit of INR 191 crore up by 26.5% YoY over INR 151 crore.

Mr Prasad said "State government support has been extended in setting up new power projects. Keeping in view the future power requirements, AP Genco has taken up 17 projects with a total capacity of 9,155 MW with an estimated investment outlay of INR 36,386 crore. This may look far fetched, but we are confident of implementing them."

Mr Ajay Jain MD of AP Genco said that its average cost of supply per unit is amongst the lowest in India at INR 1.44 and it continues to ensure that power is supplied at lowest possible cost. With an installed capacity of 7010 MW, thermal, AP Genco contributes to about 56.6% of the total state’s installed capacity of 12,381.5 MW. With the addition of various projects under implementation, the state would move closer to self sufficiency.

Mr Jain said that, in addition to the projects under implementation, Genco was in the process of securing fuel linkages for the 2100 MW Karimnagar gas based project, 600 MW Rayalaseema thermal power station, 960 MW Polavaram, 312 MW Dummugudem and 200 MW Singareddypaly.

Mr Jain said that negotiations are under way with ONGC, GAIL and Reliance for gas supply. Once the legal issues relating to gas supply are sorted out, we expect to firm up with reliance. During last fiscal, Genco added 459 MW which includes 210 MW Rayalaseema thermal Power Stage II and Priyadarshini Jurala each with 39 MW.

NTPC may form a JV company with BHEL – Report

Mr Jairam Ramesh union minister of state for power said that National Thermal Power Corporation Limited is in the process of formation of a JV company with BHEL. He added that MoU, JV agreement and a supplementary agreement has been signed and registrar of companies is being approached for allotting the name of the JV company.

The new JV company would carry out engineering, procurement & construction contracts for power plants and other infrastructure projects as well as manufacture and supply equipments for power plants and other infrastructure projects in India and abroad including plant engineering, project management, quality insurance, quality control, procurement, logistics, site management, erection and commissioning services. It shall have an initial authorized and paid up capital of INR 5 crore equally subscribed by the initial promoters namely BHEL and NTPC Ltd.

Considering the large capacity addition plan in the country during the 11th and 12th Five Year Plans, there is a need to expand the domestic power equipment manufacturing capability as well as to strengthen the related manufacturing activities including balance of plant etc. EPC for power plants and other infrastructure projects is another area which needs further expansion. NTPC and BHEL intend to leverage their respective strengths and synergies to set up manufacturing facilities of energy related equipments for generation of power and also for taking up EPC of power plants and other infrastructure projects.

Chhattisgarh see INR 3.26 trillion investments by 2010

IANS reported that dozens of steel and power companies have signed MoUs to set up plants in mineral rich Chhattisgarh by 2010 with a total investment of INR 3.26 trillion.

Mr Rajesh Munat industries & commerce minister of Chhattisgarh said that "Since December 2003 we have inked deals with various business houses for a total investment of INR 3.26 trillion in the steel and power sectors. The projects are to be completed by 2010. Out of the INR 3.26 trillion, INR 1.69 trillion will be invested in the coal fired power sector alone, with almost all the plants to be installed in the coal abundant northern districts of Korba, Raigarh, Bilaspur and Surguja."

Mr Munat said that most of the steel plants, including those of TATA and Essar, will come up in southern iron ore rich region of Bastar. He added that the companies invested INR 130 billion in the state in last fiscal. He added that TATA Steel signed a MoU with the Chhattisgarh government in June 2005 to set up a 5 million tonnes per annum plant in Bastar district’s Lohandiguda block with an investment of INR 100 billion. Essar Steel too struck a deal in the same month for a 3.2 million tonnes per annum plant in Dhurli and Bhansi villages of Dantewada district with an investment of INR 70 billion.

He said that "Industrialists are lining up to pour money into Chhattisgarh because we have created an administrative hazards free environment for them. Their proposals get cleared in a short time and on a high priority basis. They are also impressed by the huge availability of the finest quality of iron ore and coal besides government commitment to provide enough water and land for proposed plants." He added that investment proposals worth about INR 100 billion are pending as the government is assessing whether the state can back them with raw materials and suitable sites.

India wants BHEL norms for power plant equipments

Mr Jairam Ramesh union minister of state for power & commerce recently said that centre will try to standardize power projects to ensure that only technologies proven in Indian conditions are used.

Hinting at a move against imports of entire plants, he said that power projects with imported equipment are not proving viable. He added that "We found that 20% of the 78,000 MW capacity to be added during the 11th Plan period will have the main plant package imported from China. But the machinery from China already used in West Bengal’s Sagardighi and Durgapur has proved inefficient in operating with Indian coal, which has a high ash content."

Mr Ramesh said that "BHEL has proved itself with 500 MW plant packages and we are insisting that the BHEL standard should be implemented in all Indian power projects." He added that while BHEL is increasing its equipment making capacity from the current 10,000 MW to 15,000 MW by 2011, Larsen & Toubro is setting up a facility of 4000 MW capacity per annum at Hazira.

Alstom & Alsando are already negotiating with the government for boiler making units and the proposed joint venture of power utility NTPC Limited and BHEL of 4000 MW capacity will be commissioned by 2012.

Mr Ramesh said that orders have already been placed for 71,000 MW, but given India’s long term power demand projection, orders for 25,000 MW to 30,000 MW have to be placed every year. The new manufacturing units will be able to make timely delivery of these orders.

Mr Sushil Kumar Shinde union power minister had earlier said that China has 5 or 6 companies meeting the annual capacity addition of nearly 60,000 MW and India needs to learn from the China experience and have more manufacturers to support its power program.

DVC to float subsidiary for IPO

It is reported that Damodar Valley Corporation has decided to float a fully owned subsidiary to tap the capital market. The expansion, which will make DVC India’s second largest power utility after NTPC, is currently being funded with loans and internal accruals.

Mr Jairam Ramesh union minister of state for power & commerce said that the government is not thinking of amending the DVC Act since it was not created by Parliament. He added that "It is an Act made by the Constituent Assembly, 4 years before Parliament came into being."

The DVC subsidiary would enter the capital market with an initial public offer. KPMG is looking into the options of whether the subsidiary would be an umbrella company taking over a number of existing projects or whether the subsidiary would float special purpose vehicles for each project.

DVC will play an important role in the 2010 Commonwealth Games in Delhi, supplying at least 2,200 MW to the power starved northern zone. The 7600 MW that DVC proposes to add over the next 4 years would require an investment of INR 38,000 to INR 40,000 crore.

Nippon Steel net in 2007-08 dips by 6% YoY

World's second biggest steelmaker Nippon Steel Corp has posted a 6% drop in annual profit and predicted a 34% fall for the current financial year to March 2009 as raw material costs soar.

Nippon Steel’s operating profit at Nippon Steel's steelmaking division, which accounted for 87% of the total, dropped by 7.5% YoY to JPY 475.9 billion from JPY 514.5 billion in the previous year. Net income declined by 19% to JPY 88.9 billion.

Nippon Steel said that it saw JPY 370 billion in pretax recurring profit for the current year to March 2009. The company said it was still negotiating with its main domestic customers over a price increase and the forecast is provisional.

Canada starts AD review on plates from Romania, Czech and Bulgaria

On April 23rd 2008, the Canadian International Trade Tribunal, pursuant to subsection 76.03(3) of the Special Import Measures Act, initiated an expiry review of its finding made on January 9, 2004 in Inquiry No. NQ-2003-002 concerning hot rolled carbon steel plate and high strength low alloy steel plate originating in or exported from the Republic of Bulgaria, the Czech Republic and Romania.

As a result, the President of the Canada Border Services Agency initiated an investigation on April 24th 2008, to determine whether the expiry of the finding is likely to result in the continuation or resumption of dumping of the goods.

Republic to invest in precision sizing mill in New York

Republic Engineered Products, North America's largest producer of special bar quality steel, announced that it will invest approximately USD 20 million in a precision sizing mill and related equipment for its Lackawanna steel rolling facility located at Blasdell in New York.

The company has signed an agreement with the Friedrich Kocks company of Germany for the supply of a 370++ RSB/5 precision sizing mill.

The state of the art equipment will enable Republic to produce round and hex shaped bars and coils with even closer tolerances for the near net forging and cold-forming industries. Republic provides steel for domestic and international automotive, capital equipment, forging and fastener industries and the project is scheduled to be completed during the fourth quarter of 2009.

Mr Jaime Vigil president & CEO of Republic Engineered said that "We're pleased to make this investment in our Lackawanna facility. This plant thanks to the skilled workforce there has been an excellent performer for several decades. The new equipment will be an important component in ensuring that Republic maintains its position as North America's leading producer of special bar quality steel."

Republic Engineered Products, Inc is North America's leading supplier of special bar quality steel, a highly engineered product used in axles, drive trains, suspensions and other critical components of automobiles, off-highway vehicles and industrial equipment.

US DOC initiates AD and CVD probe on line pipes from China And South Korea

The Department of Commerce on April 24th 2008 announced its decision to initiate antidumping and countervailing duty investigations on imports of circular welded carbon quality steel line pipe from the People’s Republic of China and the Republic of Korea.

Alleged Dumping Margins are

The US International Trade Commission is scheduled to make its preliminary injury determination on or about May 19th 2008. If the ITC determines that there is a reasonable indication that imports from China and Korea are materially injuring, or threatening material injury to, the domestic industry, the investigations will continue and Commerce will be scheduled to make its preliminary CVD determination in June 2008, and its preliminary AD determinations in September 2008.

The merchandise covered by each of these investigations is certain welded line pipe of a kind used for oil and gas pipelines, not more that 406.4 mm (16 inches) in outside diameter, regardless of wall thickness, length, surface finish, end finish or stenciling. Welded line pipe is classifiable under subheadings 7306.19.10.10, 7306.19.10.50, 7306.19.51.10, and 7306.19.51.50 of the Harmonized Tariff Schedule of the United States. While HTSUS subheadings are provided for convenience and customs purposes, Commerce’s written description of the scope of these investigations is dispositive.

Maverick Tube Corporation, United States Steel Corporation, Tex Tube Company and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL CIO CLC are the petitioners for these investigations.

Toyota overtakes GM as top automaker in the world

Toyota Motor has taken the first quarter global automotive sales lead from General Motors, selling 2.41 million vehicles to GM’s 2.25 million over the first three months of the year.

GM said that its first quarter sales dropped across the globe by less than 1%, but Toyota said its sales were up 2.7% during the January to March 2008 period.

GM barely won the global sales race with Japan based Toyota last year. Toyota overtook General Motors as the world’s top automaker in global vehicle production last year. A record 64% of GM’s sales came from outside the United States.

GM in a statement said that strong demand in Europe supported Toyota’s world wide sales. GM posted record sales in three of its four regions, but a 10% drop in North America pulled down the overall numbers. Sales were up 8% outside of North America.

Mr John Middlebrook vice president of global sales of GM in a statement said that “While the challenges of the US economy continue to put pressure on the automotive industry there, we saw nearly 20% growth in the Latin America, Africa and Middle East and 6% growth in the Asia Pacific region.”

US HR prices up by another USD 20 to USD 975 per short ton

Platts reported that with most domestic mills now booking June spot orders, hot rolled coil prices climbed higher. The price widened more at its upper end to USD 990 per short tons, putting the current range at USD 960 to USD 990 per short tons or a midpoint of USD 975 per short tons ex works Indiana, based on reported deals.

A commercial executive at one mill told Platts that as such, HRC inched closer to USD 1,000 per short ton. I never thought we'd see thousand dollar hot rolled coil. But I am framing that first invoice as soon as it comes in." According to a variety of buying sources surveyed by Platts Most US mills are offering at or close to that level.

Steel Dynamics Inc based in Fort Wayne Indiana, came out late in the month with its May pricing of HRC at USD 960 per short tons, but reports from customers now indicate that much of that tonnage is gone. Kentucky based Gallatin Steel has yet to announce its pricing for either May or June.

Other mills, such as Ohio based AK Steel and WCI Steel, which announced immediate May spot market pricing of USD 990 to USD 1,000 per short tons are now telling customers there is very little material available for May.

For the most part, lead times for HRC are seven to eight weeks and stretching into June. According to a number of customers, depending on mill, tonnage, dimensions and other specifications, some key mill spot market offers for June include: Nucor, from USD 990 to USD 1,020 per short tons; US Steel at USD 1,020 per short tons; WCI at USD 1,000 to USD 1,020 per short tons; Wheeling Pittsburgh at USD 990 to USD 1,000 per short tons and AK Steel at USD 1,000 to USD 1,020 per short tons.

Hyundai shipyards defy recession

Bloomberg reported that new orders for ships hauling raw materials to China and finished goods to the rest of the globe are helping Hyundai Heavy Industries Co, the world's biggest shipbuilder make the strongest start in six years.

Hyundai Heavy Industries has defied a US economic slowdown, recording USD 7 billion in contracts in the first two months of 2008, more than eight times the same period the year before. The orders are dispelling concern that the global credit crisis will force owners to slash ship purchases and may lead to a 35% profit gain for the 12 months ending December 31.

Shipping lines are paying about 47% more for vessels than a year earlier as economic growth in China has increased demand. Hyundai Heavy last month raised its 2008 order target by 9.7% to a record USD 29.4 billion because of better than expected sales of ships including tankers that can transport about 2 million barrels of crude oil.

According to London based shipbroker Clarkson Plc, South Korean shipbuilders, led by Hyundai Heavy, won almost half of the record USD 190.6 billion that owners spent last year for new vessels. It said that they won about 63% of global orders in the first two months of 2008.

Mr Park Chang Suk who manages the equivalent of USD 404 million, including Hyundai Heavy shares, at NH CA Asset Management Co in Seoul said that “South Korean shipyards will fare better than rivals elsewhere because of their competitiveness. I plan to continue to increase my holdings.''

Steel prices in Vietnam begin to decline - Report

According to Mr Pham Chi Cuong chairman of the Viet Nam Steel Association, steel prices have dropped slightly this month. Early this month, Viet Nam Steel Association members said that they would maintain their current selling price even though Viet Nam based its prices on the world market price.

The local steel industry said it could lower prices because several traders had been speculating on steel with hopes of making a huge profit. Before cutting prices, though, they must sell their products and pay back bank loans.

In the first quarter, steel imports increased 110.7% in value compared to 2007, with 3.44 million tonnes at a total cost of USD 2.4 billion.

A Viet Nam Steel Association report shows that steel consumption in February and March was 296,000 tonnes and 350,000 tonnes, respectively, higher than average consumption last year.

Viet Nam Steel Association estimates that domestic steel consumption this year would increase by 20 % over last year due to strong foreign investment and the number of State projects, such as the Son La Hydro power plant and Dung Quat Oil Refinery that are still under construction.

Shipping industry concerned with falling shipbuilding standards

It is reported that executives from leading shipping companies, class societies and shipyards are alarmed by falling construction standards in the rush to meet a record demand for new ships.

Mr George Sarris MD of Enterprises Shipping & Trading manager of one of Greece’s largest fleets, while speaking at Lloyd’s List International Shipbuilding Conference in Athens, said that “We have to do something now before it is too late. A decline in shipbuilding standards, caused mainly but not solely by the emergence of numerous new yards in China, threatened to throw away the past 15 years of progress in making shipping safer. Safety and quality standards are non existent and where they should happen to exist they are being compromised all the way.”

According to Mr Sarris, many recently established shipbuilders simply copy pasted specifications from other existing designs, sometimes combining them in ways that make no sense.

His concern was echoed by a prominent private Chinese shipbuilder, Mr Simon Liang chairman & CEO of Sinopacific Shipbuilding Group, which five years ago was delivering two vessels a year but which has 45 deliveries scheduled for 2008. He said that “It is my personal opinion, but maybe 30% or maybe 40% of ships delivered by these [new] shipyards are going to be sub quality. This market will leave unsafe ships for sure.”

Mr Liang said that the industry had been growing too fast for the past five years and too few of the new builders had been able to acquire the proper knowledge or resources. However, this lack of expertise did not stop them experimenting on demanding ships, he warned. Mr Liang urged ship owners to choose very carefully when selecting a shipbuilder for their contracts.

Venezuela government could suspend mining concessions

According to Mr Gilberto Sánchez president of Venezuela's mining chamber Camiven, the Venezuelan government may be planning to issue a decree suspending all mining concessions in the country.

Mr Sánchez told BNamericas that "Just as Ecuador did recently. That possibility exists.” Mr Sánchez mentioned the possibility since time is almost up for the Venezuelan government to approve a mining reform through President Hugo Chávez's enabling law and as yet there have been no announcements on the issue.

The enabling law allows Mr Chávez to rule by decree on a broad range of issues for 18 months as of February 2007, bypassing the legislative branch.

Mr Sánchez said that "However after the enabling law expires, the president can still draw up a bill and present it to the national assembly for discussion, but that would complicate the process much more.”

He added that a draft mining reform law drawn up last year by the ministry of basic industries and mining proposed that a private company can only participate in mining by forming a JV with the state, where the state holds the majority.

Recession reports - FTI foresees gloomy results in Thailand

According to Mr Santi Vilassakdanont chairman of the Federation of Thai Industries, Thai industrial activity will slow even further in the second quarter as the impact of the global slowdown sinks in. Mr Santi said that ''Lots of negative factors that have arisen lately will be reflected in the financial results of private companies in the next quarter.”

He added that uncertainty in the world economy remains, driven by several major threats. Crude prices, which affect production costs, continue to depress the economy. In addition, the impact of the US sub prime crisis on the world economy has not yet bottomed out. Economists predict more adverse effects at least throughout the third quarter of this year.

Mr Santi said that ''The FTI's survey also shows the same thing business operators lack confidence and foresee a dimmer future.”

Amid the gloomy outlook, Mr Santi said that however, there are some bright spots. High farm prices in recent months have increased the purchasing power of farmers. Motorcycle sales are therefore expected to jump by 7% from flat growth last year. He added that passenger cars are doing even better. Some 160,000 units were sold in first quarter, a 16% rise from the same quarter last year.

Mr Adisak Rohitasune vice chairman of FTI said that ''Apart from automobiles, electronic appliances should benefit from the situation. He added that domestic car sales this year could reach 680,000 units, 50,000 units more than last year. Mr Santi said that the FTI suggested that the government control raw material prices to help curb rising production costs, adding that price caps and import taxes on steel, animal feed and petrochemical products should be considered.

US Steel changes commercial team for NA and EU

United States Steel Corporation announced a series of management changes within its North American and European commercial organizations.

1. Mr John B Peters will return to the United States from US Steel Kosice in the Slovak Republic to serve as general manager North American flat rolled customer service. He will report to Mr J James Kutka Jr senior vice president sales & customer service.

2. Mr Peter J Alvarado will replace Peters as vice president-commercial, Europe. He will report to Mr George F Babcoke senior vice president European operations & president US Steel Kosice.

Mr Bert J Phillips will fill Alvarado's role as general manager-automotive. He will report to Mr Joseph R Scherrbaum Jr vice president sales. The moves will be effective May 1.

Steelworks in Niksic appoints new directors board

MINA News Agency reported that a new Board of Directors of the Steelworks in Niksic has been appointed at the extraordinary Shareholders’ Assembly of the company, after two of the former members resigned.

On proposal of the major shareholder, the members of the Board are now Mr Marc Jacobson, Mr Alan Jacobson, Mr Daniel Brol, Mr Radomir Vukcevic, Ms Ana Kolarevic, Mr Zelimir Cerovic and Mr Andrija Rackovic.

Mr Mitar Misovic executive director of the company said that Mr Miodrag Davidovic and Mr Gregory Kenzel resigned from the Board.

Sanyo Special Steel to seek growth through technology advantage

JMB reported that Mr Nobuyoshi Fujiwara president of Sanyo Special Steel's said the firm tries to follow annualized 5% worldwide demand growth for special steel by expanding the supply ability along with better productivity.

He said the capital expenditure will increase to 60 billion yen through fiscal 2010, which is 2.5 times of expenditure in fiscal 2005 to 2007.

Forgemasters helps in two restoration projects

Sheffield Forgemasters is helping bring the city’s industrial heritage back to life with two major restorative projects.

Kelham Island Industrial Museum, part of the Sheffield Industrial Museums Trust is currently rebuilding after last June's devastating floods and Forgemasters is helping the museum on its road to recovery with the restoration of one of the museum's star attractions, the River Don Engine.

Dr Graham Honeyman CEO of SFIL said that "The Kelham Island Industrial Museum was hit very badly by the floods, as were Forgemasters, so we were determined to help them in any way we could. The museum provides a great insight into the history of the steel industry, which is obviously something very close to our heart at Forgemasters, and the sooner it is open to the public again the better."

Forgemasters is also helping the oldest surviving water wheel in Sheffield. The Shepherd Wheel, once part of a small scale knife grinding workshop, has stood in Bingham Park for more than 400 years and The Friends of Porter Valley in collaboration with Sheffield City Council, are planning to restore the historical site.

The GBP 1 million restorations will preserve the original external appearance of the buildings and restore the internal machinery to full working order, so that visitors can see how the wheel functions.

Forgemasters has made an ingot of corrosion resistant corten steel which will be forged to a slab later this year and then used to make new buckets for the wheel.

Dr Honeyman said that "The Shepherd Wheel is an important part of Sheffield's industrial past. Preserving this historical artefact will allow future generations to learn about of the heritage of the manufacturing industry which once thrived in this area."

East Africa to gets USD 1.5 billion ADB help for infrastructure

It is reported that African Development Bank will give USD 1 .5 billion to five countries in east Africa to improve roads, bridges and railways over the next three years.

Three of the five countries in the regional bloc Uganda, Burundi and Rwanda are landlocked and rely on Kenya's Mombasa and Tanzania's Dar es salaam ports to export and import essential goods. Goods then travel over a patchwork of potholed roads and ancient rail tracks, leading to astronomic transportation costs.

Mr Aloysius Ordu director of African Development Bank for east Africa told Reuters that "Infrastructure is the key to poverty reduction in this region. We are thinking about USD 1.5 billion over the next three years.”

Mr Ordu said that the money will go towards the construction of roads, railways and bridges, which will enhance the countries' connections. He said that the five countries have been moving towards economic, political and social integration under the East African Community regional body. But poor infrastructure and political uncertainties have been a deterrent to investors, due to increased risk and cost of doing business.

Hamilton Port authority sees steel imports plunging

It is reported that steel imports at the Hamilton Port Authority took a dive last year, falling 65% as the impact of steel industry consolidation and market changes rippled into the harbor. As per report, though shipments of raw materials such as iron ore and coke increased slightly in 2007, imports of semi finished products such as steel slab plunged to 350,000 tonnes in 2007 from one million tonnes the year before.

The slide in steel imports was accompanied by a 43% plunge in net profits, which Mr Brent Kinnaird port spokesperson attributed to costs related to the purchase of Pier 22. The site of Stelco's former rod mill, Pier 22, was picked up by the port for USD 17.5 million in 2006. Port profits fell to USD 1.9 million in 2007, down from USD 3.4 million the year before. Total shipments into the port fell to 11.8 million tonnes in 2007 from 12.6 million in 2006.

Mr Kinnaird said that "Because of our geography and because we are home to two major steel mills, steel remains our primary customer. With steel, we are seeing shifting trade patterns because of new ownership and new players."

US Steel bought Stelco last fall amid a rash of industry takeovers. After a lengthy tug of war between steel giants that began in 2005, Dofasco was taken over by ArcelorMittal. Those parent companies are now re examining how they move products between a broad network of operations.

Mr Andrew Sloan spokesperson for ArcelorMittal Dofasco said that much of the decline in shipments of semi finished steel can be attributed to changes at ArcelorMittal Dofasco. The steelmaker shipped 500,000 tonnes of slab from offshore into Hamilton Harbor in 2006 only to halt all slab shipments in 2007 because of market conditions. The company announced plans last year to consolidate flat steel production in Hamilton, a move that will see about 500,000 tonnes of steel slab shipped from ArcelorMittal's Quebec operations to Dofasco. But this time around, the firm will move the slabs by truck and rail, not by ship. He said that "The marine issue is a cost of transportation to and from the port, cost of loading and unloading the boats, added to the actual cost of shipping and associated tolls and fee.”

Earlier this year, the St. Lawrence Seaway announced plans to freeze tolls for the first time in a decade in an attempt to attract new business. The move, made at the request of major customers, came after the Seaway faced an 8.5 per cent decline in traffic in 2007.

The drop in steel imports primarily affected the port's harbor revenue, which fell 27% to just under USD 1.6 million from USD 2.2 million the year before. As steel imports slipped at the harbor, exports grew to 120,000 tonnes, up from 88,000 tonnes the year before. Kinnaird said the port anticipates even further growth on the export side, as steel customers ship more cargo out of the harbor.

Oil still has not reached its true value – Iranian President

Mehr News Agency quoted Mr Mahmud Ahmadinejad President of Iran as saying that oil is priced too low at USD 115 a barrel and the commodity should find its real value.

Mr Ahmadinejad, while addressing at 13th Oil, Gas & Petrochemicals Exhibition in Tehran, said that "Oil at USD 115 a barrel in today’s market is a deceiving figure. Oil is a strategic commodity and should find its real value."

He said that oil should not be a political tool in the hands of those who are inimical toward the oil rich nations. He added that "When they get hold of oil, they assume that oil is a free commodity and belongs to them and has wrongly been placed in other territories. This is the spirit of selfishness and arrogance."

Mr Ahmadinejad said that despite high oil prices, the true value of crude oil, adjusted for inflation, is currently less than what it was in 1980. He added that "While the prices of other commodities have increased, the economic value of the current oil price is even less than it was in 1980."

Besiktas to build shipyard at Yumurtalik

Turkish Press reported that Besiktas Maritime Group will construct the largest shipyard of Mediterranean in Yumurtalik free zone in southern province of Adana.

As per report, Besiktas Maritime Group will build the shipyard on an area of 320,000 square meters. Nearly 100 thousand ships can be repaired and maintained in the shipyard a year.

Mr Yavuz Kalkavan deputy chairman of executive board of Besiktas Maritime Group said that its construction would amount to nearly USD 100 million and would be completed within next 3 years.

Iran calls for setting up joint shipping line with Oman

Mr Mohammad Nahavandian head of Iran's Chamber of Commerce, Industries & Mines called on for establishment of a joint bank and shipping line with Oman and promotion of bilateral cooperation.

Mr Nahavandian said that Tehran and Muscat could expand their cooperation in various fields including telecommunications, energy and cement industry.

He further added that the best and most effective way to promote regional security is to increase cooperation among all regional states. He added that in order to have a lasting trade exchange, Iran and Oman must establish a joint shipping line as well as a joint bank.

India may opt out of IPI if Pakistan refuses to drop transit fee – Report

ANI reported that India is likely to issue an ultimatum to Pakistan to drop the demand for a transit fee, which if refused, could lead to New Delhi opting out of the proposed Iran Pakistan India natural gas pipeline project.

New Delhi’s apparent confrontational stance has been phrased after a meeting of the technical teams of both sides at Islamabad on April 16th and April 17th 2008 where Pakistan stuck to its demand that India pay 10 per cent of the gas price as transit fees.

India’s position was that 15 cents per million British thermal unit was a fair and reasonable fee that would provide Pakistan USD 180 million and save more than USD 350 million in costs each year. The changed position for the bilateral talks is that India has made enough sacrifices to deserve the waiver. Pakistan, which in June 2007 estimated the transport tariff at 59 cents per million British thermal unit, is now asking for USD 1.17 per million British thermal unit due to the rise in cost estimates because of an increase in steel prices. India wants the cost of service to be arrived through international competitive bidding, but Pakistan has indicated that it would execute the project through Pakistan Pipeco and not through ICB.

The reasons, to be cited by petroleum minister Mr Deora, are Pakistan is not purely a transit country. As Iran gas is being shared equally between India and Pakistan, both have equal stake in the project. Moreover, 70% of the pipeline through Pakistan would be used in transporting gas for both countries. India’s participation has brought in higher gas volumes and economies of scale, yielding lower transport tariff and other costs. This would improve the projects financial viability as also the comfort level of the lenders.

Both India and Pakistan want Iran to nominate the whole of South Pars gas field for pipeline supply. They also want supply assurance, asking Iran to get the gas reserve volume certified by an international consultant. Their demand is that any litigation on the pipeline be heard in a court outside the three nations, contrary to Iran’ stand that disputes be adjudicated in Tehran.

Aramco to double crude supply to China by 2010

It is reported that Saudi Aramco is aiming to double its crude oil supply to China by 2010 from about 500,000 barrels a day in 2007.

Mr Mohammed al Madi VP of Saudi Petroleum said that Aramco has signed an agreement with China Petrochemical Corporation to sell 1 million barrels of crude a day by 2010.

Saudi Arabia accounted for 8.2 million tonnes, equivalent to 650,000 barrels a day or 18% of China's crude imports of 45.5 million tonnes in the first quarter of 2008.

Saudi Arabia will increase its output capacity to 12.5 million barrels a day by 2009. It produced 9.2 million barrels a day in March 2008. Saudi's new Khursaniyah field on the east coast has started and will eventually pump 500,000 barrels a day.

Allocation of PSM dealership hits small traders – Report

Daily Times report that the allocation of Pakistan Steel Mills dealership to a few people has created difficult situation for the small industries.

Mr Ghulam Sarwar Malik chairman of All Pakistan Cottage Industries & Small Traders Welfare Association said that the government should allocate dealership of Pakistan Steel Mills to small traders also, who are badly suffering due to non availability of CP 1 pig iron in the market.

Mr Sarwar Malik said that "Presently the Pakistan Steel Mills dealership is confined to a few hands who have created artificial shortage in the market and small traders in and the sewing machine industry are in trouble."

He demanded the government should look into the matter and take measures to ensure relief for the small traders. He said if Pakistan Steel Mills issues licenses directly to the small traders, who are using CP1 pig iron, the situation could improve considerably. He particularly criticized the previous government whose wrong policies have wreaked havoc for cottage industry.

Update on Russian proposal for Gas OPEC

Russian news agency Kommersant reported that Russian proposals to create a gas OPEC will come under scrutiny at a meeting of officials from gas producing countries in Tehran next week. Energy officials representing member countries will meet in Tehran on April 28th 2008 while ministers from those countries will meet in Moscow in June 2008.

Mr Valery Yazev head of Russia's Gas Society said "The Gas Exporting Countries Forum will hold a ministerial meeting in Iran's capital on April 28th where the charter of the so called gas 'OPEC' will be discussed."

He said there were two draft charters, a 'tough' one designed by Iran, and Russia's 'more delicate' version. Iran has proposed to regulate the functioning and principles of a gas equivalent of OPEC, while Russia's draft envisages fixing gas pricing mechanisms and gas transit routs.

Mr Yazev said "We should build an alliance of gas producers to formulate fair trading rules.”

Russia wants 15 member states of the Gas Exporting Countries Forum to adopt a charter that will allow them to hammer out a universal pricing formula, coordinate construction of new pipelines and use spot deliveries to compensate for possible shortfalls in long term supply contracts.

The idea of establishing a gas OPEC was put forward by Mr Vladimir Putin president of Russia and has always been supported by Iranian officials.

UAE poised to unveil landmark USD 10 billion gas deal

ArabBusiness.com Abu Dhabi is poised to seal a USD 10 billion project with US oil major ConocoPhillips to tap the emirate's vast natural gas reserves.

Mr Jim Mulva CEO of ConocoPhillips said that the deal should be announced in the next month or two, under which Conoco would be working with Abu Dhabi National Oil Company. The gas will be used to meet soaring power demand in the UAE, which is in the midst of a massive economic boom and population explosion that is putting a strain on the Gulf state's utility infrastructure.

Conoco is competing against the likes of Royal Dutch Shell and Occidental Petroleum for the contract, which has been under negotiation for several months, but unconfirmed reports have suggested it will win the deal.

Mr Mulva said that "We are working very hard on this project. Hopefully there will be an announcement that we will be working together in the next month or two."

The emirate's peak demand currently stood at about 5,286 MW and is expected to surge to 8,276 MW in 2010 and 14,946 MW in 2015. While in Dubai demand for power is expected to grow as much as 20% per year.

Saudi Cement net profit in Q1 2008 up by 2.5% YoY

Saudi Cement Company’s first quarter income rose by 2.7% YoY on higher sales, though the growth in profit is one of the industry's lowest. It made a net profit of SAR 173.3 million in January to March 2008 quarter up by 2.5% YoY as against SAR 169 million in January to March 2007 quarter.

Saudi Cement’s production stood at 5.3 million tonnes in 2007 and about 22% of the production was exported in 2007. In contrast, Yamamah Cement, the third largest cement firm by market value and second largest by production, made a first quarter net profit of SAR 197.5 million up by 14% YoY.

Demand for cement is surging in Saudi Arabia. Companies in Saudi Arabia are developing or have announced projects in oil, gas and industries worth more than USD 460 billion.

Wärtsilä opens new offices and a workshop in Dubai

Diesel and natural gas engines major Wärtsilä has opened new offices and a workshop in Dubai in the United Arab Emirates to meet the rapidly growing market demand from marine and power plant customers in Dubai and in the Gulf in general. It will offer a wide range of services for engines, ships, automation, propellers, thrusters, alignment and in situ machining.

Mr Tage Blomberg group VP of Wärtsilä Services said that "Dubai has become an important business hub in the Middle East and its growth is foreseen to continue in the future. The expansion of Wärtsilä’s portfolio of products and services in that region corresponds to our steadfast commitment to be a one stop shop for industrial and marine customers. Being in Dubai is being where the business needs are. Local presence is of the essence in the service business."

The new offices and workshop are almost triple the combined size of Wärtsilä’s other locations in Dubai. The new workshop is state of the art with regard to layout and equipment. It enables Wärtsilä to handle larger work in terms of dimensions and weight, and using the latest tools and other maintenance equipment.

Wärtsilä has been operating in Dubai since 1992 and already has a number of premises there. The majority of the Wärtsilä employees in Dubai will work in the new premises, amounting to around 310 people. Currently there are some 325 people working for Wärtsilä in Dubai and this number is intended to be increased to at least 400 before the end of 2008 to handle the increased business. Wärtsilä also plans to open an office and workshop in Dubai Maritime City.

Wärtsilä has been expanding its network in the Middle East. A branch office was opened in Fujairah in April 2007 and in Bahrain in January 2008. Further offices are planned in Oman, Yemen, Egypt and Qatar, as well as additional offices and workshops in Dubai.

Experts urge Pakistan not to build port at Keti Bunder

The Dawn reported that ports and shipping experts have cautioned the government not to rush for building a port at Keti Bunder without carrying out prior studies related to geological history of Indus delta to avoid problem of fast silting now being faced by Port Qasim. They referred to Indus Delta map and said that the Keti Bunder was approachable via Hajamaro creek, which runs beyond Ghora Bari.

Ports and shipping experts pointed out that initial planners and hydrographers at the time of conceiving Port Qasim in the 70’s could not rightly estimate the annual dredging quantum and cost, which was far low compared to the present USD 5 per cubic meter and cutter dredging cost of USD 20 per cubic meter. Consequently, the port is today faced with serious silting problem for which it has to foot colossal annual maintenance dredging cost, which runs up to PKR 1 billion to ensure an 11 meter draft.

The experts feared that once the port was deepened, as is being planned to 14 meter at a cost of USD 140 million, the maintenance dredging would also shoot up. Furthermore, these experts said that the PQA 40 meter channel with sharp bends restricted night navigation, when compared to 3.5 kilometer long channels of the Karachi Port and Gwadar Port, where vessel can berth or sail faster.

They maintained that non availability of night navigation for deep draft vessels and long channels are considered as disadvantage in port planning. The other aspect of the new port is that there should excellent hinterland connectivity before the port is built. They added that "We must learn from the experience of Gwadar Port, which is handicapped due to non existent hinterland connectivity."

They further added that the next generation vessels required draft ranging from 16 to 21 meters thus a site, which is prone to heavy siltation costing billions in dredging, be only considered after hydrographical surveys and financial feasibility.

DP World wins Seatrade Global Performer 2008 Award

It is reported that Global marine terminal operator DP World has won the prestigious Seatrade Global Performer 2008 Award. The award was presented by Princess Anne to DP World executive VC Mr Jamal Majid Bin Thaniah at a ceremony at the Guildhall, City of London.

While the Seatrade awards have been running for twenty years, the Seatrade Global Performer award is new for 2008, awarded to the company or organization that has made a major contribution to the global shipping industry.

On receiving the award, Mr Bin Thaniah said that "We are delighted to be recognized by Seatrade and the international maritime community and honored to be the first company to win this new and exciting award. DP World is currently one of the largest marine terminal operators in the world, having seen tremendous growth over the last few years. This is testament to our management and staff around the world whose invaluable contribution has allowed us to become a leader within our industry."

The Seatrade Awards celebrate, recognize and reward innovation and success within the international maritime industry. The awards are judged by an independent panel of industry leaders from across the international maritime industry. The panel is chaired by Mr Efthimios Mitropoulos secretary general of International Maritime Organization.

DP World is one of the largest marine terminal operators in the world, with 43 terminals and 13 new developments across 28 countries1. It’s dedicated, experienced and professional team of nearly 30,000 serves customers in some of the most dynamic economies in the world. In 2007, DP World handled more than 43.3 million TEU across its portfolio from the Americas to Asia up by 18% YoY over 2006. It has global capacity of more than 48 million TEU, which is set to increase significantly in coming years with a committed pipeline of expansion and development projects in key growth markets, including India, China and the Middle East. Capacity will rise to around 90 million TEU by 2017.

TAPI gas pipeline project to begin in 2010 – Report

Xinhua reported that oil ministers from Turkmenistan, Afghanistan, Pakistan and India have signed a draft framework, agreeing to start construction work of the TAPI gas pipeline project in 2010.

After 2 day talks in Islamabad, the ministers from the 4 nations told a joint press conference that the construction work on the delayed TAPI pipeline project will be inaugurated in 2010.

The talks on Turkmenistan Afghanistan Pakistan gas pipeline project have been underway since 2002. In 2006 India was invited as an observer to the project, funded by the Asian Development Bank. This is the first time that India is participating in talks on the pipeline as a full fledged member.

The project cost has risen to USD 7.6 billion from originally estimated USD 3.3 billion in 2004. The price increase was due to sharp increase in price of steel, increase in construction cost and increase in the cost of compressor stations.

Turkmenistan side stated that audit report on certification of gas reserves will be available latest by September 30th 2008. Turkmenistan also agreed to supply the gas specification in one month.

The four countries agreed to continue further discussion on the development and implementation of the project with renewed vigor on various matters. The parties agreed that the TWG may prepare a draft of the gas supply and purchase agreement and the next meeting of the TWG may be held in New Delhi at an early date. They have agreed to form a consortium of investors to undertake the detailed feasibility study and further actions.

Petropars may tie up with Venezuelan Oil for cooperation

Tehran Times reported that Iran’s Petropars Company and Venezuelan Oil Company are to increase cooperation.

Mr Mohammad Hassan Mirzai deputy manager of Petropars Engineering Department said that "A joint company between Petropars and Venezuela’s Oil Company has been established to boost bilateral ties while the scope of their cooperation is currently being finalized."

He added that "Cooperation in the development of some blocks in the Ayacucho oilfield is also on the agenda and at this time our experts are working in Venezuela preparing the preface for future agreements."

CISA outlines 5 critical issues for Chinese steel industry

Mr Luo Binsheng executive vice chairman of China Iron & Steel Association made a speech, at a steel conference, on international and domestic environment facing Chinese iron and steel industry and the developing trend. He pointed out that there are 5 crucial missions in Chinese iron and steel industry.

1. To strictly control over speed increase of steel production and to move the emphasis of industrial development to adjusting and optimizing product mix and to increasing quality and profit. China’s crude steel output in first three months in 2007 was 124.94 million tonnes up by 8.6% YoY which was much slower than the growth rate of 15.66% in 2007 because of restricting policies and more factors affecting steel production. At this rate, it is expected that China’s crude steel output may be 42 million tonnes in 2008 which complies Chinese macro control policy.

2. To actively boost innovation and new products exploitation oriented by market demand, in order to overall increase steel products quality, to develop and expand the production of steel varieties which are short in domestic market and to satisfy the demand from domestic market development. On the basis of increasing products quality, we should increase and enlarge the quantity and proportion of high technology and high value added products, in order to replace the import and to upgrade and optimize product mix in the whole industry.

3. To continue to control steel export volume and move the keystone of our work to optimize export product mix. We should raise technology content and value added of exported products and actively replace the import by domestic steel products at the same time.

4. To strengthen energy saving, emission reduction and environment protection.

5. To accelerate interregional mergers of steelworks, to construct international super steel groups and to raise industrial centralization. Meanwhile, we should accelerate outdated capacity elimination.

SHFE reports smooth progress on launch of steel futures

According to Mr Bao Jianping director of R&D Center under SHFE Shanghai Futures Exchange is preparing for developing steel futures. Mr Bao said so far it has finished the design of wire rod and deformed steel bar contracts, and enacted regulations for these products' transaction methods and risk hedging measures.

SHFE will reinforce market research, collect suggestions, modify documents, improve dealing technology, communicate with steel enterprises, and implement the launch step by step.

The launch of steel futures is expected to optimize steel industry's structure, as the futures will help avoid risks provide pricing information for enterprises and wash out poor output capacity.

Aiming at growing into a major futures market in Asia-Pacific in five years, SHFE focuses on such futures as basic metal, noble metal, energy resources and chemical products in five years.

CSC orders for 32 Capesize vessels

It is reported that China Shipbuilding Industry Corporation and China Classification Society signed verification agreement of 180,000 tonnes of bulk cargos in Beijing on April 16th 2008. Among 46 bulk cargos orders with 180,000 tonnes in China 32 ships, will enter CCS.

As per report 180,000 tonnes of bulk carrier which will be built in Dalian Shipping Industry Company and Qingdao Beihai Shipbuilding Heavy Industry Company met the new standards of IACS and CCS. It will attract large amount of orders when it is finished. At present, many shipbuilding companies choose this ship such as Hebei Ocean Shipping Company, Hong Kong Ming WAH Shipping Company and Zhejiang Ocean Shipping Company etc.

Mr Li Kejun president of CCS said bulk carrier demand increased as China to become the world’s largest iron ore import and export country in recent years. Bulk cargos with 180,000 tonnes posses the strong market competitiveness capable of adapting and protecting the environment. In addition, according to the ship ocean trade international practices, the boat load should be 160,000 tonnes + or – 10%, 180,000 tonnes load is the most ideal.

It is learned that the shipbuilding period will last to 2011 from this year, but will put into operation after 10 years.

Biggest container maker fears declining demand in 2008

It is reported that China International Marine Containers, the world’s largest container maker fears that the global demand will plateau or decline in 2008.

China International Marine Containers spokesman said "The uncertainties of the global economic growth, caused by the US subprime mortgage crises are the main factors, adding its major operations are linked to China’s export manufacturing.”

The company statement admitted that the overproduction of containers in 2007 is another reason for the company to make provisions for 2008, in the light of fewer purchases and more competition. But it says trade in standard dry cargo containers and reefer boxes trade will not suffer much because it expects improvement in the domestic market for road operations, energy and chemicals equipment sales, as well as airport facility activity to buoy business during global slowdown.

Chongqing Steel Q1 net profits up by 51.6% YoY

Chongqing Iron & Steel Co. Ltd announced that its net profits hit CNY 186 million in the first quarter of this year up by 51.6% YoY from the same period of the previous year. It operating income in the first quarter went up by 48% YoY to amount to CNY 4.09 billion. Earnings per share were CNY 0.11.

According to its annual report also released recently its sales revenue exceeded CNY 12 billion in 2007 despite the surging fuel and raw material prices up by 24.94% YoY. Net profits of the year soared 48.33% YoY to CNY 450 million.

The Chongqing based steel manufacturer after listing on the Hong Kong Stock Exchange in 1997 raised about CNY 1 billion by issuing 350 million A-shares at CNY 2.88 apiece last year.

Kia may buy Chinese steel for production in South Korea

Reuters reported that Kia Motors Corp South Korea's No 2 auto maker may consider importing steel from China for car production in South Korea.

Mr Ahn Hee-bong executive vice president of Kia's told reporters after the company announced stronger than expected first quarter earnings that "We have no reason not to buy Chinese steel if prices are reasonable and quality is good."

Hyundai Motor Co, the country's top car maker also said it might consider buying steel from China to cope with rising raw material prices.

China favors local IPOs for foreign firms

According to Chinese Ministry of Commerce, China will steer foreign firms to go public on domestic stock markets as part of a drive to spur foreign investment. China has repeatedly stated its intention to let overseas companies list locally, but the Shanghai and Shenzhen stock exchanges still boast no foreign firms.

The ministry said on its website, without elaborating that "We will guide qualified foreign invested companies to make local listings.”

It also restated its position that it would encourage foreign firms to take over or buy into state owned enterprises. But it said factories that pollute were not welcome and foreign investments in steel, cement, aluminum and property would be subject to close scrutiny.

The ministry said China would face new challenges in attracting foreign investors in 2008, but FDI inflows would remain large.

Angang Steel acquires land use rights

Angang Steel Company Limited announced that it has entered into agreements with Anshan Iron & Steel Group Complex, the land use rights acquisition agreement in relation to the acquisition of the rights to use the relevant land parcels for use by Bayuquan project.

The total consideration for the acquisition of the rights is CNY 1,265 million.

Sinosteel offer for Midwest approved by SAFE

It is reported that Sinosteel's hostile takeover bid for Midwest Corporation Ltd has been approved by China’s State Administration of Foreign Exchange.

Sinosteel noted in an open letter to shareholders of Midwest that the approval indicates the bid does not need the nod of China's Ministry of Commerce any longer hence the clause in previous offer concerning government approval is of no effect now. It said the company has already had Foreign Investment Review Board approval to acquire the Australian company.

Sinosteel issued its bidder's statement for a cash takeover bid of AUD 5.60 per share for the Australian iron ore miner on March 31st. The company now owns 19.89% shares of Midwest and has to persuade at least 30.21% shareholders. The offer has been open since April 14 and the final closing date is March 15. Board of Midwest has advised shareholders to "take no action".

Midwest announced on April 24 to stop a proposal giving share incentive to staffs and independent directors, which was rejected by Sinosteel. The board also said it will make further advices to shareholders on the offer next week.

Russia becomes world's largest oil producer ahead of Saudi Arabia

It is reported that in 2007 Russia was the world's largest oil producer ahead of Saudi Arabia. At roughly 9.84 million barrel per day, Russia produced almost a fourth of non-OPEC crude oil in 2007. However, the latest data now suggests that the days of strong Russian oil output growth are over. After an increase of 2.3% in 2007, crude oil production plummeted in January & February. The decline accelerated further in March, to 1.0% YoY, and Russia's first quarter crude oil production averaged just 9.75 million barrel per day down by 0.8% YoY.

Following years of continued government attempts to curb private sector profits, Russia is a prime example of what is happening in many oil producing countries. Mature fields, exploding costs, a heavy tax burden, infrastructure constraints and market unfriendly government policies have led to stagnation in oil exploration and production. Base production in Western Siberia is now in steep decline, with the main fields reaching a 5% to 6% production loss relative to last year. Net, we now believe Russian production will grow by just 70 kb/d in 2008.

In addition, just as in many other emerging markets, internal demand for light products is rising quickly. At present, Russia has one of the fastest growing car markets in the world, with sales expanding at an annual rate of 10%. Meanwhile air travel demand is also growing very quickly. As a result of the strong domestic demand, crack spreads for light products have risen significantly above those in Europe. Needless to say, refiners in Russia are maximizing crude runs to benefit from the strong margins. However, due to the strong domestic demand and the skewed export tax system, exports of gasoline and diesel have been falling. In turn, all these factors have helped send oil prices to record levels in recent days.

MMK announces results of AGM

MMK is pleased to announce that all the resolutions proposed at its Annual General Meeting were approved by shareholders.

This included the approval of the annual report, annual accounting statements and dividend payments. The dividend payment for 12 months of 2007 is set at 0,502 RUB per ordinary share.

The shareholders also approved the Board of Directors.

Deloitte & Touche CIS were approved as auditors.

Mr Victor Rashnikov Chairman of MMK speaking at the Annual General Meeting commented that "2007 has been a landmark year in MMK’s development. We are very proud to have become a publicly listed company and to have welcomed a new, expanded base of high quality international and domestic investors. Overall, in terms of our financial and operational performance, this has been a very successful year for MMK.”

He said “Through our transaction with Belon and the development of Prioskol iron ore deposit, we have taken a major strategic step forward towards raw material security. Furthermore, we are continuing with our strategy of expanding internationally which we have advanced through our partnership in Turkey. Given the positive outlook both for steel prices and for demand, we expect further strong progress in 2008."

CIS to raise export prices to Turkey

It is reported that CIS has offered its plate quotation to the Turkish market as of the third week in April. The plate price has increased again compared to last month, but the range of increase is lower than last week.

It is predicted Turkish domestic mills will increase their plate price following CIS’s steel mill. HR coils from Ukrainian Ilyich to Turkey will be USD 1,040 to USD 1,050 per tonne by the end of June. Meanwhile, the HR coils from Russian MMK to Turkey will be USD 1,080 per tonne in June.

Russian government likely to control rising steel prices

It is reported that with the day by day aggravation of inflation and the domestic steel price rising so quickly Russian government is likely to take a number of actions.

The Russian government will probably attempt to control the steel price, putting restraint on prices of raw materials provided to the steel plants. The capital investment plan in Russia brings the opportunity for steel factory development this year, especially in relation to the infrastructure of steel consumption.

The Russian Automobile Association has already required the government’s antitrust organization to investigate this year’s steel price which has risen by a wide margin.

Steel consumption in Ukraine increases

According to the statistics from Ukraine, the country’s steel products consumption increased by 9.4% YoY to some 2.4 million tonnes in the first quarter compared to the same period of last year. Meanwhile, the steel products import jumped substantially by 63.7% to around 559,093 tonnes.

RusAl invests USD 20 million in Nigerian aluminum smelter

RIA Novosti reported that Russia's United Company RusAl the world's largest aluminum producer had invested over USD 20 million in an aluminum smelter in Nigeria.

RusAl acquired a controlling stake in the Aluminum Smelter Company of Nigeria in February 2007 and launched a large scale modernization program at the enterprise which had been idle for eight years. Modernization included the efforts to complete the enterprise's construction and improve existing production technologies.

UC RusAl which became the world's largest aluminum producer after a March 2007 merger between RusAl rival Sual and Swiss Glencore's alumina assets plans to invest about USD 150 million in the Nigeria facility in the next three years.

The Nigerian smelter is expected to reach its designed capacity of 197,000 tonnes of aluminum annually by late 2010.

Gazprom and Qatar discuss joint energy investment prospects

RIA Novosti reported that Gazprom and Qatar's state owned oil and gas company Qatar Petroleum are considering joint investment projects in the energy sector.

Mr Alexei Miller CEO of Gazprom and Mr Sheikh Hamad bin Jassim bin Jabr al-Thani PM of Qatar held a working meeting recently in Berlin to discuss energy cooperation.

Gazprom said in a statement that "The sides discussed possibilities for Gazprom and Qatar Petroleum to implement joint investment projects and unite efforts in third countries."

The report added that Qatar holds the third place in the world in terms of natural gas reserves after Russia and Iran. Qatar's proven natural gas reserves stand at 25.8 trillion cubic meters.

Russian gas output grows 1.8% in January to March 2008

RIA Novosti reported that Russia's gas production grew 1.8% YoY in January to March 2008 to 178.06 billion cubic meters.

Russia Industry and Energy Ministry said energy giant Gazprom which produced 151.07 billion cubic meters of gas in the reporting period, or 1.7% more on last year's figure accounted for 84.8% of Russia's total gas output. The ministry said gas exports grew 24.2%YoY in January to March 2008 to 60.63 billion cubic meters.

In the ministry's estimate, gas production in Russia is expected to grow 3% YoY in 2008 to 673 billion cubic meter with exports projected at 204 billion cubic meters. At the same time, oil and gas condensate output in Russia declined 0.1% YoY in January to March 2008 to 121.12 million tonnes.

In the ministry's estimate, crude production in Russia is expected to grow 1.8% YoY in 2008 to 500 million tonnes.

Russia could raise oil export tax to USD 400 per tonne in June

RIA Novosti reported that Russia could increase oil export duty by USD 55 per tonne to USD 59 per tonne and USD 395 per tonne to 400 per tonne.

Mr Alexander Sakovich deputy head of the ministry's customs department of Russia said "The average price was USD 101.77 per barrel in March through April 23. If the price is USD 105 to USD 113 per barrel in the next five trading days, the price for the entire monitoring period will be at a level of USD 102.1 to USD 103.1 per barrel which puts export duty in the range of USD 395 per tonne to USD 400 per tonne."

He said export duties on light oil products could rise to USD 279 per tonne USD 282 per tonne from June 1 against the current USD 241.4, and duty on heavy petroleum products could grow to USD 150 per tonne to USD 152 per tonne up from USD 130.1.

The Russian government adjusts export duty on crude and petroleum products every two months, depending on changes in the Urals blend price on world markets.

Poltava Gas & Oil to spend USD 5.5 million to hook up to pipeline

Ukrainian Journal Staff cited Mr Richard Bely technical director of Poltava Gas & Oil Company Ltd as saying that the company plans to allocate USD 5.5 million to connect to the Soyuz gas pipeline.

He said that the company has agreed a technical project on the connection to the gas pipeline with the national Naftogaz Ukrayiny.

Chinese ferrochrome prices surge

Currently, China’s domestic ferrochrome prices are rising because of tight supply, which pushed increasing international quoted price either so that steel mills are in large need of ferrochrome now.

In recent days, ferrochrome price in North China and northeast is quoted at CNY 15,800 to CNY 16,500 per tonne. CNY 16,000 to CNY 16,700 per tonne is for high carbon ferrochrome in Shanxi Taiyuan, CNY 15,800 to CNY 16,500 per tonne for southwest and Sichuan, CNY 16,200 to CNY 17,000 per tonne for Shanghai.

Low carbon ferrochrome price in Jiande Zhejiang is offered at CNY 23,000 per tonne, while contract price of low carbon ferrochrome in Jilin is CNY 27,000 per tonne.

Insider analyze that increasing price of ferrochrome is large caused by expanding production of steel mills, especially for supply shortage of ferritic stainless steel and ferritic steel scrap. High carbon ferrochrome price in America has rose to USD2.46 to USD 2.5 per pound from USD 2.36 to USD 2.42 per pound from the beginning of April 2008.

It is estimated that chrome alloys market will keep such a prosperous trend in the future.

(Sourced from ferrol-alloys.com)

Universal Stainless announces 2008 first quarter results

Universal Stainless & Alloy Products Inc has posted sales of USD 56.8 million in first quarter of 2008, which is in line with USD 56.2 million reported in the first quarter of 2007. Net income for the 2008 first quarter was USD 4.7 million as compared with USD 6.8 million in the first quarter of 2007.

These results exceeded its forecast for the first quarter of 2008 of sales in the range of USD 50 to USD 55 million and diluted EPS in the range of USD 0.60 to USD 0.65.

Nickel costs were more stable in the 2008 first quarter as compared to their high volatility in 2007 and were substantially lower than their level at March 31st 2007. The change in nickel costs reduced gross margins for its Dunkirk segment for the first quarter of 2008 by an estimated USD 157,000 as compared with an increase of USD 1.2 million in the first quarter of 2007.

Universal Stainless tax rate for the first quarter of 2008 was 33% compared to 35% in first quarter of 2007. Cash flow from operations was USD 208,000 for the first quarter of 2008 and capital expenditures were USD 3.1 million. Inventories remained level with the 2007 fourth quarter, while receivables increased due to the sequential increase in revenues.

Mr Dennis Oates president & CEO of Universal Stainless said that "Solid demand in our key markets combined with better than expected sales of power generation and tool steel products enabled us to exceed our forecast for the first quarter of 2008. In total, our sales to the power generation market rose an estimated 34% sequentially and 15% over the first quarter of 2007, while tool steel sales increased 25% over the fourth quarter of 2007 and 28% YoY. Our sales to the petrochemical market also improved sequentially, rising an estimated 30% from the 2007 fourth quarter, and matched the first quarter of 2007. Our sales to the aerospace market increased an estimated 5% from the fourth quarter of 2007, but were 15% lower than the first quarter a year ago. While aerospace demand remains very strong, our aerospace sales go through service centers and forgers, which continue to demonstrate conservative buying patterns and report pockets of excess inventory. We have not changed our view that service centers and forgers will, by necessity, return to more normal buying levels in the second half of the year."

He added that "We made progress on several priorities in the first quarter. Our focus is to accelerate sales growth by further penetrating our domestic markets as well as expanding into international sales. We are now in conversations with potential partners and new customers in North America, South America, Europe, Russia and India. This is a long term process, but we are pleased by the initial response and have several trial orders underway, including some for new products. "Operational improvement is another area of high priority for us. We are progressing with the start-up of our new state of the art high temperature annealing system in Dunkirk and remain on track to have it fully operational by the end of the current second quarter."

For the first quarter of 2008, the Universal Stainless & Alloy Products segment had sales of USD 48.2 million and operating income of USD 4.9 million, yielding an operating margin of 10%. This compares with sales of USD 48.2 million and operating income of USD 7.2 million in the first quarter of 2007.

Chinese SS ex works price will remain level in May – Report

Interfax China reported that major Chinese stainless steel producers will not reduce their ex works prices in May 2008 despite growing market stockpiles, due to upward pressure from high production costs.

European Q2 ferrochrome prices surge by 60% YoY

Contract ferrochrome prices in Europe for the second quarter of 2008 surged by 60% YoY to USD 1.92 to USD 0.95 a pound from the previous quarter on tight supply from biggest producer South Africa amid power shortages.

As demand for stainless steel outpaces supply, spot prices are rising even more than contract levels. High carbon ferrochrome was last quoted at USD 2.70 per pound, double the level nine months ago.

A power crisis in South Africa has led to electricity rationing and production cutbacks by ferrochrome producers. South African state electricity firm Eskom has asked for a price hike of 53% as it scrambles to boost capacity. It has been struggling to meet the demands of Africa's largest economy and has resorted to rolling blackouts to cut demand since the beginning of the year.

Mr John Meyer head of resources at investment bank Fairfax in London said that "Continued blackouts in South Africa keep supply under pressure. A stronger South African rand further offsets the benefits of a rise in ferrochrome prices to producers but all this also means that ferrochrome prices simply can not return to last year's levels without significant production being shut."

South Africa is the world's biggest producer of ferrochrome and has around three quarters of the world's chrome ore reserves. Xstrata, a major producer, declared force majeure to ferrochrome customers in February as a precautionary measure in case it could not make deliveries. It said in March 2008 that power shortages were expected to cut production to around 85% of capacity.

Chinese SS price to vibrate on a high track this year

According to a report by China Securities News, though Baosteel made big losses in the stainless business, Taigang Stainless Steel Co Limited revealed in its annual report that its net profit grew 73.81% YoY in 2007. The stainless steel industry still faces overcapacity pressure, but its price will remain on a high track this year and as for stainless enterprises, base production on demand should be a basic thought and product mix adjustment a strategic consideration to keep profit growth sustained.

TISCO earned net profit of CNY 4.25 billion up by 43.96% YoY. For Baosteel, its stainless business' sales income reached CNY 2.058 billion, gross profit margin came to minus 5.78%, dragging down the steel maker’s overall achievement in 2007.

TISCO needs product mix upgrade this year to sharpen competitiveness. In specific, production of 400 series should be raised, 300 series unchanged for market share, and 200 series be chopped. In 2007, TISCO output stood at 2.0255 million tonnes, with 400 series taking 40.7%. Besides, export expansion is another measure to advanced competitiveness. The price gap of stainless products in home and overseas markets is about USD 400 to USD 500 per tonne.

According to senior analyst Mr Chong Dahai, China produced crude stainless steel of 7.2 million tonnes, including 4.189 million tonnes of 300 series, 178,000 tonnes of 200 series and 1.839 million tonnes of 400 series. He added that the current capacity is yet far beyond the demand. In this case, base production on demand should be the basic guideline for steelmakers.

Taigang Steel and Camco reach carbon deal

It is reported that leading global carbon asset developer Camco Group has reached an agreement to buy 1 million tonnes of CO2 emissions from the world's largest stainless steel producer Taigang Stainless Steel Co by late 2009 under the clean development mechanism project.

As per report the project is using waste heat from Taigang's four steel making product lines to generate power which reduces CO2 emissions. The CO2 credits bought by Camco can be sold to developed countries with a CO2-reduction commitment to buy carbon credits from developing countries under the Kyoto Protocol.

Mr Henrik Dalsgard managing director of Camco said the CDM project is aimed at making enterprises aware that they can derive economic benefits by shouldering social responsibilities

Mr Hu Hao an analyst from Central China Securities said "It's a trend: more and more steel companies will join the CDM project. The steel industry is energy intensive, so there are a lot of opportunities for steel companies to reduce emissions and get on the CDM bandwagon."

Camco has already bought more than 120 million tonnes of CO2 credits all over the world.

Chinese vanadium exports in March 2008 up by 360% YoY

Statistics indicate that Chinese ferrovanadium export amount in March 2008 was 857.45 million tonnes up by 359.8% YoY as compared to 186.5 million tonnes in March 2007. The export value in January 2008 was USD 34,893,748 up by 844% YoY.

In March 2008, China exported vanadium pentoxide of 1,670.6 million tonnes up by 22.2% YoY with export value USD 36,400,927. Major suppliers in March 2008 were South Korea with 843 million tonnes, Holland with 240 million tonnes, Japan with 296 million tonnes and Canada with 60 million tonnes.

Australia regulator approves coal quota system at Newcastle Port

It is reported that Australia's competition regulator has approved a capacity balancing system for Newcastle port until December in a bid to reduce growing ship queues.

The Australian Competition and Consumer Commission said that the coal industry was concerned that without a system for the allocation of capacity during 2008, the queue of ships waiting to be loaded would increase and result in significant costs.

The ACCC said it remains concerned that the continuation of the capacity balancing system could limit investments in the coal chain and reduce incentives for industry to develop a long term solution. The CBS system provides all coal producers with an equal pro rata share of available coal chain capacity and matches vessel arrivals with capacity, so that excessive vessel queuing is eliminated.

Mr Graeme Samuel chairman of Australian Competition and Consumer Commission said that “The proposed system is likely to have the effect of minimizing the vessel queue at the Port of Newcastle, which has the potential to save industry a significant amount in deadweight demurrage costs.”

Mr Samuel told Reuters that "The CBS is meant to be a short term measure to relieve queue pressures. We don't want the system to lull producers into a false sense of security and therefore put off the long term solution, which is to invest in capacity expansion.”

Prior to the reintroduction of the CBS in May last year, queues at Newcastle port surged as miners rushed to sell coal amid robust prices, which resulted in a backlog of as many as 70 vessels waiting at the port to load coal. Port congestion and long vessel queues at Newcastle then became a headache for coal miners such as Centennial Coal and Xstrata Coal which have faced surging demurrage costs and lower sales that cut into profits.

The port has already cut shipping allocations twice this year as vessel queues hovered at 40 ships for a large part of the year. Vessel queues at Newcastle port stood at 36 for the week ended April 21.

Shanxi coke makers plan 30% output cut due to high coal prices

It is reported that sharp coking coal price rise in the international market has finally rippled into China and the coking coal price in Shanxi has gained some CNY 200 per tonne in 2008 with closures of small mill and reducing supply now posting CNY 1300 per tonne to CNY 1400 per tonne.

Mr Zhang Gangfeng secretary general of Shanxi Coking Industry Association told Shanghai Securities News that the province's coking enterprises are planning to cut 30% of output from May on account of spiking cost. Besides, the coking mills in Hebei and Shandong are reportedly to follow suit.

As per report both steam coal and coking coal pit prices are on the rise in Shanxi
1. Datong and Taiyuan steam coal gained CNY 10 per tonne
2. Liulin primary coking coal CNY 100 per tonne
3. Linfen coking coal varieties CNY 30 per tonne to CNY 100 per tonne
4. International prices reached some USD 300 per tonne presenting a wider discrepancy.

It's learned the coke price in Shanxi is hopefully to increase CNY 100 per tonne further as coking coal gets tenser and pricier. If it further rises, Shanxi first grade coke may break CNY 2300 per tonne and the second grade likely to approach CNY 2100 per tonne.

China Imported 30% more Manganese Ore in Q1 of 2008

According to statistics by China Customs, import volume and value of manganese increased sharply in the first quarter of 2008. Gross import volume was 1,793,577 tonnes up by 30% from 1,375,873 tonnes of first quarter of 2007. Soaring manganese ore price makes import value change more severely from USD 154,065,587 to USD 638,458,772 which was 4.14 times of the previous year.

According to statistics China’ manganese ore importing seems to have more origins as compared with 2007. We notice that there were 13 countries exported manganese ore to China in the first three months of 2007, while the number of exporters just doubled in 2008. 8 Countries provided more than 10,000 tonnes for China in first quarter of 2007 and the number increased to 12 in 2008. Australia, South Africa and Gabon are still chief suppliers, but their proportion in the total volume slightly decreased from 85% to 79%.

Higher price, more powerful demand, larger number of imports and more origins are not only the feature of China’s manganese ore imports in the first quarter of 2008, but would also be the main theme in the whole year.

(Sourced from ferro-alloys.com)

Vale iron ore output in Q 1 up by 10.8% YoY

In ‘000 tonnes

Rio rules out special treatment to Chinalco

It is reported that Mr Paul Skinner chairman of Rio Tinto has warned Chinese aluminum giant Chinalco that it will not be getting any special treatment for being a shareholder when it comes to any business joint ventures. And he says the onus is on Chinalco to be more forthcoming on what business relationship the two companies can forge.

Mr Skinner after addressing Rio's annual general m