India to increase import of HRC

BL reported that in order to help bridge the demand supply gap in HR coils in India, secondary steel manufacturers and exporters during a meeting with ministry of steel have assured Indian government that they would import an equivalent amount of steel that they export.

Mr RS Pande secretary steel told media that “To increase domestic availability of HR steel the secondary producers today said that they would be importing HR steel to the extent they export cold rolled and galvanized steel. ”

He informed that “There is a demand supply gap of around 2 million tonnes of primary steel in the domestic market and this move will increase domestic availability by around 0.6 million tonnes.”

He added that “The major steel producers have already assured that they will voluntarily restrain from exports. This move by the main producers will increase domestic availability by around 1 million tonnes. So, the net increase in domestic availability will go up by around 1.6 million tonne leaving a gap of approximately 0.4 million tonne.”

This sourcing from the domestic market is expected to be balanced through additional imports, and for this, the secondary manufacturers are expected to use the existing zero duty advance license scheme available to them as exporters.

As per report, around 1.6 million tonnes of secondary steel is exported from India. Secondary manufacturers import around 1 million tonnes and source another 0.6 million tonnes from domestic HR manufacturers.

Indian steel majors on global hunt for coking coal

It is reported that India’s leading public sectors in the filed of steel, iron ore an coal have been on a trip to UK for identifying opportunities to invest into coking coal mines overseas. The delegation was led by Hon’ble steel minister Mr Ram Vilas Paswan and comprised of chairmen’s and CMD’s of Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, National Mineral Development Corporation etc and senior government officials

As per report, the delegation held a series of meetings with global merchant bankers in London over the last week and told them of India’s interest in investing in coking coal.

Mr Paswan said that "The price of steel is rising all over the world and our steps to cut duties and tariffs have not worked. At the same time we want to increase our steel production in order to develop India’s infrastructure as our economy booms. This is the problem. Identification and tying up of global coal resources has assumed utmost significance in the present scenario. At present steel production in India is growing at 6% annually, while consumption is growing at 12%, hence the pressing need to augment steel production capacities in India."

These public sector units have formed a single entity called Coal Venture International Limited, with an initial equity of INR 350 billion, whose main objective is to secure coal assets abroad by buying equity into existing mines.

The main producers of coking coal are Australia, Canada, China, Mongolia, Mozambique, South Africa and United States. India imports 26 million tonnes of coking coal and demand is projected to increase to 35 million tonnes by 2010 and 47 million tonnes by 2012.

Welspun commences new plate mill

Welspun-Gujarat Stahl Rohren Ltd has announced the commencement of its 1.5 million tonne state of the art plate mill, one of the only three mills of its kind in the World, as of March 28th 2008.

The product range is mentioned as under
Thickness - 10MM to 45 MM (API Grades)
Width - 1500MM to 4500 MM
Length – Up to 18 meters
Grade – API 5L X70 & above

It may be noted that the trial production of the mill was commenced on September 7th 2007 and since then Welspun has been able to make the most challenging plates involving sizes up to 4.5 meter wide and steel grade of X 70 API Grade.

Mr BK Goenka vice CMD of Welspun Group said "I along with my colleagues take pride in this historic moment of commencement of this one of its kind plate mill in India. We believe that this mill will not on prove the Engineering Excellence that Welspun portrays, but also strengthen its position globally."

JSW Steel posts 37% YoY growth in crude steel production

JSW Steel Ltd has announced that following the merger of Southern Iron & Steel Company Ltd with JSW Steel Ltd, it has posted a growth of 37% YoY in Crude steel production for 2007-08.

JSQ has also shown on comparable basis a 20% YoY growth in volume of crude steel production even after excluding 0.455 million tonnes of crude steel produced by the erstwhile SISCOL.

Its HSM recorded a highest ever production of 2.715 million tonnes during the financial year showing a capacity utilization of 108%.

JSW Steel has recorded volume growth in all products as given below.

In million tonnes
# Including production from the facilities acquired during the year

Kalyani Steels commissioning new mini BF

Kalyani Steels Limited announced to BSE that its 350 cubic meter capacity mini blast furnace has been successfully commissioned by the Company on March 29th 2008.

Kalyani Steels said that this would increase the hot metal capacity by 250,000 tonnes per year.

Leighton arm wins USD 1 billion order for coal mining in Jharkhand

It is reported that Australia’s leading construction company Leighton Holdings has won 2 contracts worth USD 1 billion to develop and operate an open cut coal mine in Jharkhand. As per report, Leighton subsidiary Thiess will build the infrastructure and then operate the Chitarpur coal project for 20 years in Jharkhand.

Mr Bruce Munro CEO of Thiess Asia said that "The long term contract between Thiess India and Abhijeet Group creates a solid foundation for the growth of our business in India." He added that over 115 million tonnes of coal would be mined over the next 20 years and development work was to begin by the end of April 2008, with mining commencing in October 2009.

He further added that the mine would have a maximum capacity of 6.75 million tonnes a year and would supply coal to steel plants and to a nearby 1100 megawatt power station.

Indian Railway moves 794 million tonnes in 20007-08

Indian Railways have carried highest ever loading of 794 million tonnes during the financial year 2007-08 up by 7% YoY. This exceeds the initial budgeted target of 785 million tonnes and the revised estimate target of 790 million tonnes.

Mr KC Jena chairman of Railway Board announced that the key driver behind the improvement in the performance has been the growth in freight loading. He said that “The highest ever incremental loading during a financial year of 65.59 million tonnes has now been achieved. This beats the previous record of 64.61 million tonnes achieved in 2005-06.”

Coal still remains the backbone of IR loading and contributed 42.4% of the total loading as its loading grew by 7.47% YoY. Loading of iron ore by all sectors including exports have shown a growth of approximately 19% YoY. Steel loading from major steel plants recorded a major growth of approximately 8.8 % YoY.

Indian railway have now set a target of loading 850 million tonnes in 2008-09 and an ambitious target of 1100 million tonnes of revenue earning freight traffic by the terminal year of the 11th Plan.

Indian steel industry suggests 3 measures to fight inflation

BS reported that Indian steel industry has proposed a slew of measures that will bring down prices by 12% to 15% with immediate effect.

Mr Sajjan Jindal vice CMD of JSW Steel said that the industry has suggested 3 measures that the government could take for bringing about a price reduction.

1) An excise duty cut from 14% to 6% could bring down the steel prices by 8%

2) A 25% export duty on iron ore would impact the prices by 5%

3) The withdrawal of import duty on input materials such as coke, limestone, ferro alloys, aluminum and copper would drag the prices by 2%

Mr Jindal said that the industry had decided to hold the price line for now and would take a call once the government decides on the required measures.

An industry source said that "We have informed the government that we will not increase the prices now. But a hike in the prices of raw material prices, especially by NMDC, will compel us to hike the prices."

National Mineral Development Corporation has already written to some long term customers hinting that prices will be hiked in April 2008 and the change will be implemented with retrospective effect. NMDC has long-term contracts with most of the major steel producers without captive mines.

However, a Federation of Indian Mineral Industries delegation met the commerce secretary and gave an assurance that exports would not be at the cost of the domestic industry. They further agreed to interact with others in the value chain, including sponge iron, pig iron and steel industries, in a week’s time to find ways of reducing the prices.

Steel industry sources said the raw material costs have increased by INR 12,000 a tonne in the past year. Steel prices, which have been on an uptrend since the start of the calendar year, have risen by an average INR 6,000 a tonne since January 2008.

Prompt thermal coal cargos at RBCT may lure Indian buyers

Reuters reported that fall in prices of prompt South African coal cargoes to around USD 100 per tonne on FOB basis at the Richards Bay Coal Terminal in South Africa is likely to draw out Indian buyers who have been on the market’s sidelines for the past month.

The report cited an Indian trader as saying that “There were two bids at less than USD 100 for prompt South African on Tuesday. At USD 100 or less there will be strong buying interest.”

Physical South African coal has not traded below USD 100 a tonne for several months. Freight rates have remained around USD 50 in recent weeks. Indian buyers have paid up to USD 170 a tonne including insurance and freight, but have been aiming to pay no more than USD 140 if possible.

India imported around 10 million tonnes of coal from South Africa in 2007 but in early March, Indian consumers said they expected exports to India to fall slightly because of prices were too high.

AIFI, IIFM and BAI seeks government support to curb steel prices

The Association of Indian Forging Industry, Indian Institute of Foundry Men and Builders Association of India called a press conference in Chennai for briefing media about the impact of spiraling steel prices on the Indian manufacturing industry and the forging industry in particular.

They outlined that steel prices in India shot up 33% in the last 8 weeks, crippling the industry mostly dependent on Indian steel for domestic sales and finished product exports as steel is the key input in forgings at 60% to 70% of the input cost. According to AIFI the increasing export of steel was fueling the price increase and was also keeping India in the lower rungs of the value chain.

They said that pricing of steel in India is a complex matrix and is not totally free market pricing across the board and said that
1. India has both iron ore and coal which are key ingredients for steel
2. PSUs like SAIL have 100% captive iron ore and coal mines and TATA Steel almost does
3. Indian steel mills maintain prices equivalent to landed prices of imported steel, but do not incur freight charges. Steel being bulk material, freight is a significant component
4. With the marking to market practice of equating to the landed cost of steel imports, Indian consumers are being charged rates higher than in USA and China.
5. Steel making companies have been recording EBITDA’s between 30% and 60%.
6. Even ore is priced internationally in India with gross margin of around 70%

To alleviate the situation AIFI proposes to call for the following action from the policy makers
1. Ban steel export or levy export duty
2. Ban iron ore export or levy export duty on iron ore as China does on coke exports
3. Remove restriction on import of all scrap including rails
4. Import duty on pig iron and met coke to be made nil

AIFI established in 1965 and is the spokesman of the Indian Forging Industry. About 200 organized and 1000 unorganized forging units in the country spread across Pune, Chennai, Delhi and Ludhiana. The automotive industry is the main customer for forgings with 70% share. The total capacity at present is estimated to be about 1.5 Million tonnes per annum. Total estimated production of forgings for the year 2006-07 was 983,000 tonnes and is expected to cross the 1 million tonnes in 2007-08.

IIFM represents the foundry industry and has more than 3500 members including most the foundry units in India. The foundries are supporting Automobile, Machine building, sanitary needs, house hold needs etc. 40% of the output of the foundries are for the Automobile sector The foundry industry has 4500 foundries in India producing around 7 million tonnes of castings many of them are tiny or small or medium scale. It is estimated that foundries export castings worth INR 4,000 crores in 2007-8

Builders Association of India is an all India body and the only apex body for representation of builder’s voice. This has around 90 centers comprising of 10,000 direct members and approximately 40,000 indirect members.

RINL starts civil work on MBC plant at coke oven

It is reported that as part of Rashtriya Ispat Nigam Limited’s expansion works, the civil works for Mechanical, Biological and Chemical Treatment Plant has been commenced at 4th coke oven battery. Mr AK Benerjee DE projects of RINL inaugurated the civil works on April 2nd 2008.

Total cost of the project is INR.55 crores and work has been awarded to HSCL. The project is scheduled to be completed and commenced by June-2009.

Mechanical, Biological and Chemical Treatment Plant is aimed to meet the discharge standards, which is an environmental control measure as stipulated by the Pollution Control Board.

Orissa finds fresh coal, iron ore and bauxite deposits

FE reported that Orissa has found signs of diamond deposits, besides coal, iron ore, bauxite and heavy minerals in various districts across the state.

Mr Pradip Amat Orissa’s steel and mines minister told FE of following major discoveries by states directorate of geology
1. 66 million tonne of coal deposits in Padma block of Talcher coalfields
2. 18 million tonne of bauxite in Tadapani plateau of Ramgarh area under Koraput district
3. Viable iron ore deposit of 1.9 million tonne has been located in Dholtapahar area of Sundergarh through geological mapping and drilling.

Exploration for heavy minerals such as ilmenite, monazite and rutile in Udayagri sector of Puri resulted in establishing a reserve of one million tonne of heavy minerals. The exploration for search of primary source of diamond in Dharambandha area of Nuapada district yielded positive results, where the government is planning detailed drilling. Besides, the exploration for gemstone in Shagaraha area of Kalahandi district can bring to light three iolite occurrences

Update on performance of major ports in India in 2007-8

As per available reports, the traffic handled by India’s major ports has increased substantially during 2007-08.

In million tonnes
These are preliminary figures and report from other ports is expected

Kalyani Group acquires RSBconsult in Germnay

The Economic Times reported that Kalyani group has entered into the wind energy sector with the acquisition of Germany based RSBconsult.

RSBconsult is a design and consulting house in wind energy industry having end to end design capability of wind turbine systems.

Metso to set up a multi functional industrial facility in India

Metso is planning to invest approximately EUR 30 million to establish a multi functional industrial facility to be called 'Metso Park' in India. The new facility will host both Metso's own new operations and selected key suppliers.

Metso Park will initially cater to meeting the rapid growth in demand for Metso Minerals' products and services in India. It will also have the capability to serve other Metso business. With the investment, Metso aims to enhance its logistics, inventory control, operational quality and productivity as well as supplier relationships. The implementation of the Metso Park concept is subject to regulatory approvals.

A new operating concept for the company, Metso Park will be located near the city of Alwar in Rajasthan and will include office premises, several workshops, warehousing and a logistics center. Partners operating out of Metso Park will establish their own workshops at the Metso site and will benefit from the infrastructure services provided.

Metso Park will initially manufacture components of mobile crushing and screening plants and conveyors, and pumps and rubber products for the construction and mining customers in India. Some products and components will also be exported. Operations at Metso Park are expected to commence in the second half of 2009, and the number of employees at the facility is expected to rise to 700 by 2012.

In 2007, Metso announced a EUR 12.5 million investment in expanding foundry and manufacturing operations and office facilities in India. Metso's net sale in India was approximately EUR 150 million in 2007 and employs today some 700 people in India.

Metso is a global engineering and technology corporation with 2007 net sales of approximately EUR 6 billion. It has almost 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

Sanmar Group acquires Matrix Metals in US

Recyclingtoday.com reported that integrated industrial, shipping and engineering firm Sanmar Group has successfully acquired Matrix Metals LLC from Jefferies Capital Partners. The acquisition of Matrix Metals follows Sanmar’s acquisition of a German alloy castings producer Eisenwerk Erla GmbH in 2007.

Matrix Metals operates one of the largest steel casting businesses in North America. Sanmar Group has a steel casting capacity of 60,000 tonnes and about 50,000 tonnes of capacity for premium iron alloy castings. Matrix has foundries in Keokuk, Iowa, Richmond, Texas and San Juan del Rio, Mexico, which focus on castings for flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors. According to news reports the 3 facilities have a combined capacity of 30,000 tons a year.

Following the merger, Mr B Natraj corporate director of Sanmar Group will relocate to the United States and serve as executive vice chairman of Matrix Metals.

Mr Roger Courtney CEO of Matrix Metals said that "Combining Sanmar’s expanding foundry capacity with ours will enable us to meet almost any North American customer’s casting requirements and create new business opportunities across the combined companies."

The Sanmar Group is in the middle of a capital expenditure program in India. The group is investing more than USD 26 million to expand the capacity of the steel foundry from 10,000 tonnes to 30,000 tonnes a year by adding three automated lines for sand castings.

M&M and ICICI venture to buy 100% stake in Metalcastello SpA

Mahindra & Mahindra Limited has announced that a consortium of Mahindra & Mahindra and ICICI Venture Funds Management has signed a pact to buy 100% stake in Italian gear manufacturer Metalcastello SpA.

Founded in 1952, Metalcastello has revenues of around USD 100 million. It is among the top gear manufacturers in Europe, focused primarily on the off highway segment. Its product portfolio includes complex gears & shafts for use in vehicle transmissions and drivelines. Its customer portfolio includes most of the global OEMs in the tractor, off highway & construction equipment space. Currently, financial investors hold 84.7% of which 66.5% held by private equity fund Development Capital, advised by Italian firm Alto Partners and top management holds 15.3% in Metalcastello.

Mr Hemant Luthra president of Mahindra Systech said that "Mahindra Forgings Limited has already created one of the leading forging companies in the world. Together with ICICI venture we expect Metalcastello SpA to help replicate in the gear vertical what MFL has achieved in the forgings space. The customer base of both MFL and Metalcastello is complimentary and will enhance the synergies that we are already harvesting. Consistent with Mahindra Systech's art to part expertise, Metalcastello SpA perfectly compliments this capability in the auto component space and will add immense value to its stakeholders."

Mahindra Group holds majority stake in Rajkot based gear manufacturing company, Mahindra SAR Transmission Private Limited and this acquisition augments Systech's ability to serve its customers from multiple locations in Italy, UK, Germany and India for their auto component needs. It also strengthens the Mahindra Group's position as a leading auto component player in the global market.

TATA Steel to host IISI workshop on solid by products

FE reported that representatives of around 25 leading steel producers of the world are meeting here from April 3rd 2008 to April 5th 2008 to take further the International Iron & Steel Institute project on solid by product management at various steel plants.

Mr Indranil Chakrabarti chief of scientific services & chairman of the waste utilization committee of TATA Steel, around 500 kilograms of solid waste by products are produced while making one tonne of steel. These include slag, mill scale, dusts and sludges that find gainful applications. They ate recycled back into steel plant process as a raw material for cement making, as a stone substitute for road making, etc.

Finding that use of solid by products emanating from steel plants can help prevent depletion of natural resources, many countries have already passed legislations that make it difficult to deplete natural resources where industrial by products are available as substitutes.

While the first meet of the group took place at the IISI headquarters in Brussels, the last one held in Shanghai October 2007.

CIL CCL registers record coal production in 27-08

Coal India Limited’s Central Coalfields Limited has reported production of 44.2 million tonne of coal last fiscal, accomplishing an earning of more than a thousand crore profit for the third straight year.

Mr RP Ritolia CMD of CCL said that the production in 2007-08 is the highest since the inception of CCL. He added that the record profit enabled it to become the highest corporate tax payer in Jharkhand and Bihar.

Claiming that CCL managed impressive results in production despite unfavorable geological conditions, he said that CCL had ended terminal year of the 9th five year plan with a production of 33.81 million tonne and 10th five year plan with 41.32 million tonne of coal. He added that "The 11th five year plan has started with a happy note with the production of more than 44.2 million tonne of coal and by the end of the 11th five year plan, CCL is poised to produce 78 million tonne of raw coal."

On mine safety, Mr Ritolia said that safety awareness drives were being observed and sufficient budget had been earmarked for the benefit of workers. He added that hydraulic roof bolter, total stations, fluorescent jacket, BG 4 breathing apparatus, latest version of rescue tools, non visible dust collectors for drills were some of the safety equipment produced by CCL.

Mr Ritolia said that CCL is determined to achieve production target of 47 million tonne in the year 2008-09 and 78 million tonne in the year 2011-12.

Indian Railway gets 65% of revenue from goods traffic

According to findings of Associated Chambers of Commerce & Industry of India, the turnaround growth story of the Indian Railways has been highly dependent on coal and iron ore for export, the freight earnings arising from which account for maximum of one third its total revenues.

According to ASSOCHAM eco pulse study, while the freight earnings account for 65.2% of the total revenues of Indian Railways, the majority share of this is contributed by coal with 37.4% and iron ore for export with 14.67%. The study also reveals that coal and iron ore for export have been the major drivers of goods earnings, which are expected to register a turnover of INR 178.76 billion and INR 70.04 billion respectively by the end of this fiscal, contributing heavily to the total freight income of INR 477.43 billion.

Mr Venugopal N Dhoot president of ASSOCHAM said that "The railway industry needs to effectively diversify its freight commodity basket in order to insulate itself from the sectoral risks and maintain its growth momentum."

The robust performance from the goods revenue has been mainly on account of the increase in the volume of goods traffic with coal taking a major share of 338.35 million tonnes followed by the transportation of 136.17 million tonnes of iron ore while the total tonnage estimated to be 790 million tonnes for 2007-08. The other significant contributors are
Cement - 8.24 %
POL - 6.2%
Pig iron & finished steel - 5.8%
Fertilizers – 5%
Raw material to steel plants - 1.6%

Indian cement makers hike prices

It is reported that cement manufacturers have increased product prices by in the range of 3% to 4% across India in a move that is likely to stoke inflation and invite the wrath of the government already worried over rising prices.

Cement companies have cited increased value added tax on bulk cement, higher demand and rising fuel prices as the reason behind the increase in prices. Cement companies hiked prices by INR 5 to INR 7 per 50 kilogram bag. The price is now INR 258 per bag in Mumbai.

The moves by the cement and steel industries could fuel inflationary pressures, at a time when the government is actively trying to contain surging prices. The inflation rate has risen to 6.68% in the week ended March 15th 2008.

An official with Builders Association of India said that "The hike in cement prices will not impact the construction sector immediately. We are now purchasing imported cement which is comparatively cheaper than domestic cement."

PGCIL to increase power lines by 11% in 2008-09

It is reported that Power Grid Corporation of India Limited is planning to extend its power lines network in India by 11% this fiscal year as part of targeted spending of INR 8,500 crore.

Mr RP Singh chairman of Power Grid while addressing at the Asia Power & Energy Conference in Singapore, said that it wants to add 8,000 kilometers of lines to its existing network of 70,000 kilometers by March 2009.

Mr Singh said that PGCIL is also planning to raise INR 4,500 crore via bonds and loans. It signed an agreement to borrow USD 400 million from the Asian Development Bank on March 31st 2008. It also raised USD 600 million through a World Bank loan on March 19th 2008.
It may be noted that India is seeking investments of almost USD 200 billion to generate, transmit and distribute electricity and plug a widening shortfall. The finance ministry estimates show that India loses 2 percentage points from annual economic growth each year because of inadequate power and transportation networks.

Mr Singh said that PGCIL plans to raise its annual spending by one third from INR 6,570 crore in the fiscal year ended March 31st 2008. Funding for Indian infrastructure projects will be unaffected by sub prime problems in the US. It plans to borrow about USD 3.6 billion overseas this year to grow its network.

PGCIL is working on a funding plan before it issues contracts to build a network connecting India’s North East, which has a surplus of electricity, to northern regions where there is strong demand. The project will allow the transfer of 6,000 MW from Arunachal Pradesh and Sikkim to the northern city of Agra for further distribution ahead of the 2010 Commonwealth Games in New Delhi.

NTPC inks MoU with NGRI for geothermal energy development

National Thermal Power Corporation Limited and National Geo physical Research Institute have signed a MoU for cooperating and sharing their knowledge to identify potential sites for setting up Geo thermal based power projects in India as an alternate source of energy.

Mr RK Sikri GM of NTPC and Mr Harinarayana deputy director of NGRI have signed the MoU.

NGRI is engaged in carrying out multidisciplinary R&D programs in earth sciences and having experience in identifying potential geothermal sites in India.

While, NTPC is the largest power generation company with an installed capacity of 29144 MW through 26 power stations. With nearly 20% of India’s installed capacity it contributes around 29% of India’s power generation. NTPC is poised to become a 75000 MW plus company by the year 2017.

Visa Steel appoints Mr Modi as deputy MD

Visa Steel Limited has informed BSE that its board of directors at its meeting held on March 31st 2008 has approved the appointment of Mr BP Modi as deputy MD wef April 1st 2008.

The release added that “The appointment of Mr Modi and the remuneration payable to him is subject to the approval of the members at the forthcoming AGM.”

Kalpataru Power reappoints Mr Mani as MD

Kalpataru Power Transmission Limited has informed BSE that its board of directors at its meeting held on March 31st 2008 has re appointed Mr KV Mani MD for a term of 2 years with effect from April 1st 2008.

Sunil Hitech bags structural work contracts from NTPC and JSW

Sunil Hitech Engineers Limited recently announced that it has bagged projects worth INR 1006.8 millions. The order constitutes structural works for NTPC worth INR 902.20 millions and structural works at Bellary worth INR 104.60 millions from JSW Steel. Both the jobs are to be completed within a time frame of 15 to 36 Months.

Mr Sunil Gutte executive director of Sunil Hitech said that "These orders reiterate company's intention of balancing its public private mix of clientele. Steady growth, together with our progress till date strengthens our resolve to be the most innovative and efficient contributor to the Indian power industry."

Sunil Hitech is involved in building various projects including these 2, which will generate around 1300 MW and in total 20000 MW in the near future. The total tonnage to be executed is about 42500 million tonnes which involves fabrication and erection of structures. With this order, Sunil Hitech has reached an unexecuted order book position of INR 8239.42 millions.

Gujarat Apollo invests INR 74 million in earthmovers unit

Gujarat Apollo Industries Limited recently announced that it has invested INR 74 million in its subsidiary Apollo Earthmovers Limited as part of a move to consolidate the construction equipment business of the group.

Gujarat Apollo has also invested INR 12 million in Apollo Construction Equipments Private Limited, which will be made a subsidiary of Gujarat Apollo in 2009.

Subhash Projects secures order from NTPC Bongaigaon

Subhash Projects & Marketing Limited recently announced that it has bagged order worth INR 329.48 crore for execution of main plant, civil works & offsite civil works package for 750 MW Bongaigaon thermal power project from NTPC Limited.

Global billet prices will peak by May – GFMS

GFMS said that supply side constraints and a massive expansion of rerollers has sent the global steel billet market skywards, with prices rising to between USD 900 per tonne and USD 950 per tonne, ahead of the London Metal Exchange's formal launching of its steel futures contract for billet at the end of April.

GFMS said that there was still upward pressure on prices, but this was starting to taper off and that there was relatively little extra to come in the international market. We are holding our view that April/May will be the peak before the slide sets in.

GFMS said that a reason that it gave for the anticipated price slide was that there was a premium for the export of Chinese billet, wire rod and rebar over domestic prices, which should stimulate higher output and export volumes over the second quarter of 2008. It said that “While domestic demand and prices should push higher in April, the increase in supply may impact on the domestic and import market by May or June.”

At that time, it predicted that Middle Eastern seasonal demand would have peaked, and weak demand in the US and Western Europe would continue to mean very limited import demand.

Nucor acquires Galamba Metals Group

Nucor Corporation announced that it’s wholly owned subsidiary, The David J Joseph Company has completed the acquisition, at a very attractive multiple, of substantially all the assets of Kansas City, Missouri based Galamba Metals Group.

Galamba founded in 1977, operates a total of 16 full service scrap processing facilities in Kansas, Missouri and Arkansas including two automobile shredders. It employs 385 people and processes over 500,000 tons annually.

DJJ will operate the Galamba Metals Group facilities under the Advantage Metals Recycling, LLC name. Galamba's current employees and management team will remain with Advantage Metals Recycling. Nucor and DJJ welcome the Galamba/Advantage Metals Recycling management team and employees to the Nucor family.

Nucor said that “This acquisition represents another step in Nucor's previously announced plan to utilize DJJ as a platform for continued growth in the scrap processing industry.”

Reliance Steel & Aluminum acquires Dynamic Metals International

Reliance Steel & Aluminum Co announced that on April 1st 2008, it acquired Dynamic Metals International, LLC based at Bristol in Connecticut.

Dynamic Metal was founded in 1999 and is a specialty metal distributor. Dynamic’s 2007 revenues were approximately USD 11 million. Dynamic will operate as a subsidiary of Service Steel Aerospace Corp. headquartered at Tacoma in Washington.

Mr David H Hannah chairman & CEO of Reliance Steel said that “This strategic acquisition expands our existing Service Steel Aerospace specialty product offerings.”

Reliance Steel & Aluminum Co headquartered in Los Angeles, California, is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United Kingdom, the Company provides value added metals processing services and distributes a full line of over 100,000 metal products. These products include galvanized, hot rolled and cold finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 125,000 customers in various industries.

Gerdau Ameristeel acquire Century Steel for USD 152 million

Gerdau Ameristeel Corporation announced that Pacific Coast Steel, a majority owned Gerdau Ameristeel joint venture has acquired all the assets of Century Steel Inc, a reinforcing and structural steel contractor specializing in the fabrication and installation of structural steel and reinforcing steel products, for approximately USD 152 million.

Century Steel Inc headquartered at Las Vegas in Nevada, operates reinforcing and structural steel contracting businesses in Nevada, California, Utah and New Mexico. With fabrication facilities that have an annual capacity in excess of 250,000 tons per year, Century Steel Inc participates in virtually all segments of the marketplace in the western United States.

Gerdau Ameristeel also announced that, concurrently with the acquisition of Century, Gerdau Ameristeel will pay approximately USD 68 Million to increase its equity participation in the PCS joint venture to approximately 84%.

Gerdau Ameristeel is the second largest mini mill steel producer in North America with annual manufacturing capacity of approximately 12 million tons of mill finished steel products. Through its vertically integrated network of 19 mini mills, 19 scrap recycling facilities and 61 downstream operations, Gerdau Ameristeel serves customers throughout North America.

Nucor acquires Metal Recycling Services Inc.

Nucor Corporation announced that it has completed the acquisition, at a very attractive multiple, of substantially all the assets of Metal Recycling Services Inc based at Monroe in North Carolina.

Metal Recycling Services founded in 1999, operates a full service processing facility including an automobile shredder and two North Carolina feeder yards. MRS employs 150 people and expects to process 220,000 tons annually. MRS will operate under the Metal Recycling Services, LLC name.

Metal Recycling Services will become part of Nucor's wholly owned subsidiary, The David J Joseph Company, one of the leading scrap companies in the United States.

Nucor and DJJ welcome the Metals Recycling Services management team and employees to the Nucor family. This acquisition represents a step in Nucor's previously announced plan to utilize DJJ as a platform for continued growth in the scrap processing industry.

Patriot Coal acquire Magnum Coal Company

Patriot Coal Corporation announced that it has signed an agreement to acquire Magnum Coal Company. Magnum is one of the largest and lowest cost coal producers in Central Appalachia, operating 12 mines and 7 preparation plants. It sold 18.4 million tons of coal in 2007 and has over 600 million tons of proven and probable reserves in southern West Virginia.

Under the terms of the agreement, Magnum stockholders will receive approximately 11.9 million shares of newly issued Patriot Coal common stock. Additionally, Patriot will assume net debt estimated at USD 150 million, bringing the total acquisition price to approximately USD 709 million based on the April 2nd 2008 closing price of Patriot common stock. While bridge financing has been arranged, the Company expects to have permanent financing in place by closing. The acquisition is subject to certain regulatory approvals, approval by Patriot stockholders and customary closing conditions. The proposed transaction is expected to be completed around mid year.

On a pro forma basis, the combination of Patriot and Magnum would have sold more than 40 million tonnes in 2007 and generated revenues of just under USD 2 billion. Proven and probable reserves on a combined basis will exceed 1.9 billion tonnes. The combined assets will provide Patriot a more balanced production mix, with approximately 70% underground and 30% surface mining. With a strong base of low sulfur thermal coal and growing production of metallurgical coal, Magnum's properties are in close proximity to Patriot's Central Appalachian properties, thereby enabling cost effective optimization of the combined assets.

Mr Richard M Whiting president & CEO of Patriot said that "This transaction fits squarely with Patriot's strategy of growing through synergistic, accretive acquisitions, particularly in the fragmented Central Appalachian region. Magnum further strengthens our metallurgical coal position and expands our thermal coal presence in the important CAPP region, provides both current production and valuable reserves for future expansion, and is expected to be highly accretive within the first year. Importantly, Magnum shares with Patriot a strong emphasis on the safety of its miners. Magnum's significant presence and expertise in surface mining will further diversify Patriot's extensive asset base. With the addition of Magnum, Patriot will be positioned as the second largest coal producer in CAPP and the seventh largest in the US overall."

Cliffs declares force majeure on coal shipments from Pinnacle Mine

Cleveland Cliffs Inc announced its Cliffs North American Coal, LLC subsidiary has declared force majeure on coal shipments from its Pinnacle Mine at Pineville in West Virginia. Cliffs indicated the longwall plow is currently mining through a sandstone intrusion into the coal seam, which has caused coal production at the mine to significantly slow, as well as reduced shipments.

The sandstone intrusion is a continuation of the same geology that slowed production at Pinnacle Mine in August 2007.

Cliffs said the fault area accounts for approximately 1,200 feet of the approximately 10,000 foot coal section being mined and that the longwall plow has progressed approximately 300 feet since first encountering the area in mid March. It also indicated that prior to encountering the adverse geologic conditions it had already begun development on the next coal section in its mine plan and expects to avoid similar conditions in this next section.

As a result of the current mining conditions at Pinnacle Mine, Cliffs said its total metallurgical coal production forecast for 2008 will be impacted by approximately 100,000 tons for every 30 days of mining in the fault area.

Mr Joseph A Carrabba chairman, president & CEO of Cliffs said that “As always, safety of employees is our first priority. While disappointed to find the same geologic condition in the current section of the mine as the previous section, the discovery provides useful information on the fault direction and slope for use in our mine planning for the rest of 2008 and the future. We estimate that we are currently 25% through the fault area and our North American Coal team is diligently working to move the plow forward through this difficult mining. At this time, we believe we will be in difficult mining for 60 to 90 days.”

Sojitz sets up separate steel business unit

Platts reported that Japanese trading house Sojitz has launched a new business unit for steel trading, separating it from nonferrous metal operations. The new steel unit will trade in finished steel products and iron ore.

A spokesman of Sojitz said that the steel business Unit, with a staff of 30, will be part of the energy & mineral resources division. Earlier, steel, coal, ferroalloy, and nonferrous metal trading were all under the Mineral Resources Unit. The spokesman added that "This reorganization signifies the company's determination to have a stronger focus on steel.”

The spokesman said that coal trading will continue to be a part of Mineral Resources Unit.

FMO to produce 24 million tonne of iron ore in 2008

BNamericas reported that Venezuelan iron ore producer Ferrominera Orinoco expects to churn out 24 million tonne of iron in 2008 up by 16.5% over 20.6 million tonne in 2007.

A company executive told BNamericas that "We are already taking steps to meet the challenge by revamping equipment, purchasing more railcars and improving the railway.”

According to the executive, the executive, pellet production is expected to reach 2.7 million tonne in 2008.

Ferrominera Orinoco's pellet plant currently supplies almost 50% of Venezuela's domestic demand of 14,000 tonne per day. It expects to have a new pellet plant in operation by 2011 to further supply the domestic market, which will require a USD 2 million investment.

Brazilian crude steel output up in 2 months up by 9% YoY

According to figures from Brazilian Steel Institute, Brazil turned out 5.68 million tonne of crude steel in January to February 2008 up by 9 YoY. Crude steel output in February 2008 alone rose by 8.1% YoY to 2.71 million tonne.

IBS figures show that production of rolled in the first two months amounted to 4.29 million tonne, divided among 2.55 million tonne of flat products and 1.74 million tonne of long products, up by 9.8%, 4.8% and 17.9%, respectively.

Rolled production in just February rose by 7.9% YoY to 2.04 million tonne, split into 1.19 million tonne of flat products, up by 1.7% YoY and 849,500 tonnes of long products, up by 17.9% YoY.

The Brazilian steel industry raised its domestic sales of rolled products by 27% in January to February 2008 to 3.53 million tonne and by 28% YoY in February to 1.75 million tonne. Meanwhile, Brazil's pig iron production increased by 9.6% YoY to 6.04 million tonne in the first two months and 7.1% YoY to 2.89 million tonne in the second month.

Japan special steel demand rises by 2.2%

According to Japan’s ministry of economy trade and industry, Japan demand of special steel hot rolled products will increase by 2.2% YoY to 1.809 million tonnes including export in monthly average in April to June 2008 from same period of 2007.

According to the ministry the domestic demand for automobile and industrial machinery decreases from peak season of January to March 2008 while the export decreases from January to March 2008 due to lower export of high tensile steel.

Daewoo to pass on increased steel prices to its customers

Bloomberg reported that Daewoo Shipbuilding & Marine Engineering Co, the world’s third largest shipyard, may increase prices in 2008 to pass on higher steel plate costs to customers.

Mr Nam Sang Tae, CEO of Daewoo Shipbuilding & Marine Engineering, told reporters last week in Seoul, without giving more details that, “The increase will be a small one. This year’s profit will be better than last year.”

Mr Nam said steelmakers, including POSCO and Nippon Steel Corp, plan to charge more for products, including plates used to make ship hulls, as they will probably have to pay as much as 71% more for iron ore. He added that Dongkuk Steel Mill Co, seller of almost a third of the steel used by South Korean shipyards, also raised prices by 13% to KRW 820,000 a tonne this month.

Mr Nam said sales at Daewoo Shipbuilding will rise 39% to a record KRW 9.9 trillion in 2008 as it builds vessels at higher prices to carry fuel and consumer goods, reiterating the company’s January 3rd forecast. It expects to receive USD 17.5 billion in new orders in 2008.

Carpenter completes divestiture of Ceramics Businesses

Carpenter Technology Corporation announced completion of the sale of its ceramics businesses, Certech and Carpenter Advanced Ceramics, to the Morgan Crucible Company plc.

The sale of the businesses occurred on March 31st 2008 and concluded the transaction previously announced December 21st 2007. The businesses were sold on a cash and debt free basis for approximately USD 145 million.

Carpenter Technology produces and distributes specialty alloys, including stainless steels, titanium alloys and superalloys, as well as various engineered products.

Morgan Crucible is a global specialist materials engineering company that designs, manufactures and distributes fundamental components of many of the modern world's most sophisticated products. It has manufacturing locations in over 30 countries, with approximately 9,500 employees.

Konecranes raises stake in Japanese JV

It is reported that Konecranes has signed an agreement to exercise its option to raise its holding in the joint venture company, Meiden Hoist System Company, Ltd of Japan from 49% to 65%. The transaction was finalized on March 31st 2008.

Konecranes and Meidensha Corporation, a Japanese company, entered into a joint venture agreement concerning the hoist business in Japan on November 6th 2002. Under the agreement, Konecranes was granted a call option to increase its holding in Meiden Hoist System Company by 16%. The call option expired on March 31st 2008.

Meiden earlier held 51% and Konecranes 49 percent, of the shares in the joint venture company, Meiden Hoist System Company. Konecranes has signed an agreement to exercise the call option to acquire an additional 16% interest.

Meiden Hoist System Company has been marketing the MXT branded hoist in Japan since April 2003 in parallel with conventional MHS hoists, and holds approximately 10 percent of the electric wire rope hoist market in Japan. The MXT hoist is based on Konecranes' CXT hoist technology. By increasing its shareholding in MHS up to 65 percent, Konecranes targets to increase its presence in the large Japanese hoist market as well as in Japanese export markets.

Scrap Recyclers partner on Baltimore Port Site

Recycling Today reported that Joseph Smith & Sons Inc, Capitol Heights and United Kingdom’s European Metal Recycling Ltd have created a joint venture stevedoring and scrap shipping operation at the Port of Baltimore.

According to a spokesperson from Joseph Smith & Sons, the two scrap companies will work along with a Delaware based stevedoring firm to ship scrap metal and other commodities into and out of a 27 acre location at the Port of Baltimore.

The spokesman said that one goal will be to offer an additional market for scrap recyclers based in the United States who wish to export from the East Coast. Additionally, the joint venture business will seek to work with exporters and importers of other materials.

Europe top destination for HBI shipments in 2007

According to production and shipment statistics compiled by the HBI Association, more than one third of 2007 HBI shipments made by members of the HBI Association at Matthews in NC were bound for iron and steel producers in Europe, including the CIS.

The statistics noted that HBI shipments into North America represented almost 25 percent of the 2007 total, followed by Asia with 18 percent and South America with almost 14 percent. Africa and the Middle East rounded out the list with approximately 7 percent and just over 1 percent of total shipments, respectively.

It said that production and shipments of HBI topped 4.8 million tones in 2007, with Orinoco Iron and JSC Lebedinsky GOK each accounting for approximately 25 percent of the total. This was the highest shipment total, and second highest production total, since HBIA began compiling statistics in 2004.

HBI Association, Ltd is a non profit, international corporation whose purpose is to promote HBI as a preferred source of merchant steelmaking metallics, to inform ship owners and operators, and charters and terminal operators of the handling, shipping and storage benefits of HBI and to assist the global steel industry in the effective use of HBI. Its 2007 members included COMSIGUA, JSC Lebedinsky GOK, Matesi, OPCO, Orinoco Iron, Venprecar and Vikram Ispat. Qatar Steel Company became an HBIA Producer Member in March 2008.

Xstrata Mount Isa Mines named as major polluter in Australia

The latest annual National Pollutant Inventory data has shown Xstrata's Mount Isa Mines as one of the nation's largest polluters during the last financial year. It identified high levels of sulphur dioxide, lead, copper, zinc and cadmium coming from the mine's facilities in North West Queensland.

The National Pollutant Inventory data lists Mount Isa Mines as being the nation's top emitter of seven substances, including lead, zinc, copper and sulfur dioxide.

Xstrata said that it has a monitoring program in place at Mount Isa to ensure industrial emissions are at a safe level. The company also said six of those emissions have been reduced from the previous year. Xstrata said the inventory is an estimate of all emissions from industrial facilities, including those that do not leave the site, such as metal contained in dust which can be generated and settles back on the ground when a load of ore is dumped. It added that overall, Mount Isa Mines has significantly reduced emissions in recent years and is working to make further improvements.

The Mayor of Mount Isa said he is unaware of any health concerns in the city due to industrial pollution. Mr John Maloney, Mayor, said while he has not seen the new data, he is not worried about the levels of emissions. He commented, "Mount Isa City Council has an excellent working relationship with Xstrata and we will continue to communicate and work with them on all matters relevant to the wellbeing of the city. I have no problems and I've had no complaints from anyone."

RBCT March coal March exports drop by 8.7% after rain

Bloomberg reported that South Africa's Richards Bay Coal Terminal, shipped 8.7% less of the fuel in March 2008 after heavy rain cut output from BHP Billiton Ltd, Anglo American Plc and other producers.

RBCT said that the terminal shipped 4.62 million tonnes of coal in March and exported 5.06 million tonnes a year earlier and 5.08 million tonnes in February this year. It said that the terminal received 5.53 million tonnes of coal by rail during the month and 49 ships docked at the port. It has stocks of 3.67 million tonnes of coal at the terminal.

Coal from Richards Bay climbed to a record earlier this year as transport bottlenecks and rain in Australia, the world's biggest exporter of the fuel used in power plants, spurred Asian customers to seek alternative sources. Prices have since fallen to a nine week low. According to McCloskey Group Ltd, coal shipped from Richards Bay fell 2.1% to USD 118.85 a tonne last week.

Richards Bay Coal is owned by South Africa's biggest coal exporters, including Anglo, BHP and Xstrata Plc. At the current average monthly rate, Richards Bay will ship 53.1 million tonnes of coal in 2008 compared with export capacity of 76 million tonnes. Smaller volumes of South African coal are exported from Durban, as well as from Maputo in neighboring Mozambique.

Kinsteel gets nod to list Perwaja Steel

It is reported that Kinsteel Bhd has received the securities commission’s approval to list its 51% owned Perwaja Steel Sdn Bhd on the Main Board. According to the securities commission’s regulations, companies have six months from the date of approval to complete its listing on the stock exchange.

Mr Tan Sri Abu Sahid Mohamed chairman of Kinsteel said that the approval was a major step forward for the group. He said that “With this approval, Perwaja Steel will be able to access the capital markets to raise funds for future expansion opportunities; as well as unlock some value for both Kinsteel and Perwaja Steel shareholders.”

Mr Tan Sri Pheng Yin Huah managing director of Kinsteel said that the next step would be to monitor the market and get the timing right in order to maximize the value for all stakeholders, particularly Kinsteel’s minority shareholders.

Perwaja Steel, which makes upstream long steel products, would focus on strengthening its position as the only direct reduced iron producer in Malaysia. Kinsteel would focus on the higher margin downstream long steel products.

Japanese February 2008 scrap export totals 551,000 tonnes

Japanese scrap exports in February 2008 totaled 551,000 tonnes down by 2% YoY.

The top four main import countries from Japan were
1. South Korea - 491,000 tonnes
2. China - 362,000 tonnes
3. Taiwan - 70,000 tonnes
4. Vietnam - 49,000 tonnes

(Sourced from YIEH.com)

ArcelorMittal announces final price for offer for ArcelorMittal Inox Brasil SA

ArcelorMittal announced that it confirms the final price of the delisting tender offer for all shares of Arcelor Mittal Inox Brasil SA will be ZAR 95.25 per common share and ZAR 94.70 per preferred share as per the pricing mechanism previously disclosed in the relevant Offer documents.

According to the terms of Section 1.5.1 and Section 1.5.3 of the Offer Notice, published on March 5th 2008, this value corresponds to the price of ZAR 100 per common share and ZAR 100 per preferred share of the Company, after the subtraction of interest on equity, declared on December 19th 2007 and interim dividends, declared on March 14th 2008 and the adjustment by the Referential Rate TR plus 6% per year, starting February 28th 2008 through to the Offer auction date. At the current exchange rate, this transaction may represent a cash disbursement of up to around USD 1.71 billion.

Rautaruukki to increase capacity for engineering customers

Rautaruukki announced that it is to further enhance delivery capacity of special products for demanding industrial sectors through deployment of a new cut to length line at the Raahe Works in Finland. The new line will particularly serve engineering industry customers who use cut length sheets in lifting, handling and loading equipment.

The new line will be supplied by Sundwig, member of Andritz Group and come on stream by the end of 2009. The investment is worth a total of around EUR 23 million. Rautaruukki said that the new line will significantly increase the cutting capacity of hot rolled sheets. The line will have a capacity of around 200,000 tonnes a year, which is equivalent to the steel required to make 60,000 truck platforms or 150,000 excavator buckets.


Mr Olavi Huhtala president of Ruukki Metals said that “We aim to increase the share of special products to 40% of Ruukki Metals’ net sales by the end of 2010. The project will enable us to deliver cut lengths of more consistent quality to customers. The new line will also make our supply chain easier to manage and improve design opportunities.”

He added that the investment will also support Ruukki’s aim of becoming Europe’s leading provider of metal-based solutions for customers in construction and in the lifting, handling and transportation equipment industry.

Western Canadian Coal closes coking coal deal

Thomson Financial reported that Western Canadian Coal Corp has entered into pricing arrangement in excess of CAD 220 a tonne for hard coking coal with interim prices effective April 1st 2008.

Western Canadian Coal said that it expects coal contracts for the upcoming year to be completed by the end of first quarter of 2009. It said it expects to spend about CAD 90 million in capital expenditures, which includes about CAD 43 million in equipment costs. The largest portion of the capital expenditures will be spent on restarting the Willow Creek mine and on the plans to expand the Brule Mine to a 2 million tonne per year operation.

Western Canadian Coal said it expects to produce about 3.7 million tonnes of metallurgical coal, including about 1.8 million tonnes of hard coking coal and 0.2 million tonnes of mid volatile PCI coal from Wolverine Mine and about 1.3 million tonnes of low volatile PCI coal from Brule Mine. It also plans to produce about 0.4 million tonnes of ULV-PCI coal commencing September 2008 from its Willow Creek Mine.

Kobe Steel to develop steel that cuts electromagnetic waves

Jiji Press reported that Kobe Steel Ltd has developed a type of steel sheet that can drastically cut electromagnetic wave emissions from electronics products.

The steel sheet uses special additives to absorb electromagnetic waves, cutting emissions to a maximum one ninth of current levels.

Kobe expects strong demand, amid fears that the electromagnetic waves released by certain electronics products may cause other such goods to malfunction. It plans to put the steel sheet on sale this summer. The monthly sales target is 500 tonnes.

Mr Samaddar appointed as CEO of ArcelorMittal Ostrava

ArcelorMittal Ostrava announced the appointment of Mr Sanjay Samaddar to the position of the CEO.

Mr Sanjay Samaddar is vice president of Arcelor Mittal group and so far he holds the position of the marketing director of the group for Eastern Europe. In Ostrava he shall hold the vacated position of Mr Gregor Münstermann, who took over the position of the CEO in ArcelorMittal Poland.

Mr Sanjay Samaddar said that “I am looking forward to the new role here in Ostrava. I would like to continue with the present good results, especially via further modernization. Our goal is to further increase the efficiency of production, while at the same time we shall be focusing on the programs of the social responsibility of the company. And part of our everyday work must also be improvement of the customers services.”

Alpha Resources plans to raise up to USD 460 million

AP reported that Alpha Natural Resources plans to raise as much as USD 460 million, primarily to repay debt. Alpha in a securities filing said that it plans to sell USD 250 million worth of notes and USD 150 million worth of stock in separate offerings.

The securities firms underwriting the deals have options to sell an additional USD 22.5 million in stock and USD 37.5 million worth of notes.

Alpha said that it expects to raise between USD 400 million and USD 460 million, depending on whether the over allotments are exercised. It added that much of the money would go toward repurchasing up to USD 175 million worth of earlier notes and possibly acquisitions.

Tex sees long talks for Australian thermal coal pricing

The Tex Report without saying where it got the information said that contract talks between Australian thermal coal producers and Japanese power utilities are increasingly likely to run long.

Tex said that the agreement on the annual contracts that typically start on April 1st 2008 have been delayed and provisional prices linked to the spot market have been agreed. Spot prices have been falling, making utilities less eager to settle contract agreements.

Strike at Polish Port

It is reported that the strike at Poland's largest container facility the Baltic Container Terminal in Gdynia still continues. As per report up to 500 workers are currently on strike for a 21% increase in average wage levels.

PortWorld quoting Mr Johannes De Jong CEO of BCT as saying that operations at the southern Baltic Sea region's largest container facility have been disrupted for close to two weeks and, as a result some clients are seeking transshipment options elsewhere.

The strike began on March 20th 2008 after rejecting an initial increase offer of 8%. BCT handled 500,000 TEU in 2007.

Aker shareholders reject new board proposal

It is reported that Aker Yard’s shareholders have rejected a proposal to oust the existing board of directors at an emergency general meeting called by the group’s second largest shareholder. The vote was called for by Havyard Invest and its owner, the Norwegian shipowner, Per Saevik, which recently acquired over 10 percent of the Aker Yard shares.

According to Reuters, the Havyard Invest proposal was to elect four new members and replace two current members, meaning an expansion of two, although the company’s nomination committee had proposed no change to the composition of the eight-member board.

Mr Saevik is reported by Reuters to have wanted acting chief executive and chairman, Svein Sivertsen, to become chief executive and to step down as chairman because, they said, his dual role clashed with good corporate governance.

However Mr Sivertsen, who assumed the role of acting chief executive a month ago, has told Lloyd’s List that Aker is currently head hunting for a new chief executive to take up the post within the next three months.

The vote was called at a time when STX Shipbuilding, which controversially bought 39.2 percent of Aker last year, had its vote option frozen during a European Commission inquiry into a merger investigation.

However, an exemption from the EU commission shortly before the meeting allowed the Korean shipyard to vote, providing that it ‘exercises the voting rights for the purpose of seeking to secure that the existing members of the board remain as such,’ effectively preventing any change to the board structure.

Newmont offers 7% Batu Hijau stake for USD 426 Million

Bloomberg reported that Newmont Mining Corp., the US operator of Indonesia's second largest copper mine, has offered to sell a seven percent stake in the unit that runs Batu Hijau to the central government for USD 426 million.

Mr Simon Sembiring, director general of the energy and mining ministry's coal and minerals division said, “We will evaluate the offer.” He added that the offer is part of a contractual sales program that obliges Newmont and other overseas investors to cut their combined stake in Newmont Nusa Tenggara to 49 percent by 2010.

Newmont and the government filed for arbitration in March amid a dispute about the pace of earlier divestiture requirements for the mine.

Mr Rubi Purnomo, a spokesman for PT Newmont Pacific Nusantara, Newmont's local holding company, said Newmont sent the government a letter outlining the offer for the seven percent stake on March 28. The government has until April 28 to accept or reject the proposal.

According to a company statement from February 25, PT Newmont Nusa Tenggara's contract states that seven percent stakes must be offered for sale to local investors by March 31 of this year, as well as in 2009 and 2010.

Moly Mine's Spinifex Ridge resource increase

Moly Mines has announced a major expansion of its Spinifex Ridge molybdenum/copper resource with an increase of more than 100 percent in its resource tonnage results. The limits of the mineralisation have been significantly expanded by recent step out drilling, while sustained high molybdenum prices and price forecasts have prompted a drop in the cut off grade from 0.03% to 0.02% Mo for the resource.

Dr Derek Fisher MD of Moly Mines said the scale of the resource pointed to the possibility of a significantly lengthened mine life and a possible expansion to the mining and processing capacity. He explained, "We have always recognized that the Spinifex Ridge orebody was enveloped in a large, lower grade zone, but there was insufficient drilling in this area to determine a grade and tonnage for this material.”

Dr Disher said that, based on past experience with the ore-body, it is expected that the majority of the Inferred Resource will upgrade to the Indicated or Measured categories with more detailed in fill drilling.

The Company is currently running revised detailed mine plans based on the larger resource which is expected to result in a substantial increase in reserves and generate a mine plan and financial models.

EMED closer to acquiring Rio Tinto copper mine in Spain

Platts reported that EMED Mining Public Ltd continues to make progress towards triggering its option for the acquisition of the Rio Tinto mine in Spain, which has been assessed to have potential to restart copper production. EMED said the technical and economic assessments continue to deliver positive results and that formal constructive engagement had begun with all regulatory authorities and other stakeholders.

Mr Harry Anagnostaras Adams MD of EMED said, "When we arrived in Andalucia, the Rio Tinto mine was regarded by most observers as being unlikely to restart because of historical disputes. EMED Mining can now report that it is clear to most stakeholders that the Rio Tinto mine will indeed restart."

EMED's understanding of the Rio Tinto mine has improved to the point it now considers most of the conditions precedent on technical and economic matters have been satisfied, adding that formal applications had been submitted to the regulatory authorities.

The mine was mothballed in the late 1990s due to unfavorable copper prices.

Malaysia scraps coal plant plans on environment worries

Reuters reported that Malaysia has scrapped plans to build a MYR 1.3 billion (USD 408 million) coal fired power plant in eastern Sabah state on Borneo Island due to worries it would pollute the environment.

The 300 MW plant was to have been built near a tropical forest by a subsidiary of state controlled utility Tenaga Nasional and a Sabah state government agency.

Mr Musa Aman chief minister of Sabah was quoted as saying that "After weighing the pros and cons, the cabinet decided to do away with the proposal because we do not want to risk the welfare of the communities in the area including their health and any adverse impact on the environment." He added that he asked Tenaga to look for other sources of energy for Sabah.

Mr Sidek Kamiso a spokesman of Tenaga said the company had not been officially notified of the government's decision.

Eskom coal stockpiles drop to average of 12 days after rain

Bloomberg reported that South Africa state owned electricity utility Eskom Holdings Ltd state owned, coal stockpiles fell to an average of 12 days from 13 days two weeks ago after rain affected supplies of the fuel.

Mr Jacob Maroga CEO of Eskom told reporters that “The company is still targeting stocks of 20 days.”

Households, offices and shops in Africa's biggest economy are suffering rolling blackouts as Eskom repairs power plants before electricity demand peaks this winter.

Power has also been rationed to mines and smelters including some owned by BHP Billiton Ltd and Anglo American Plc.

EU clears EUR 350 million aid for coal mines in Poland

Dow Jones reported that the European Commission has allowed Poland to spend EUR 350 million towards the restructuring of its coal mining industry, between 2008 and 2010.

As per report the money is aimed at covering the restructuring costs of the coal mines resulting from administrative and legal provisions and costs associated with the financing of staff cuts. It added that the aid will also go toward costs dealing with underground safety works resulting from the closure of mines, mining damages and the rehabilitation of former coal mining sites.

The commission said that the aid will not cover costs related to current production.

Gindalbie provides update on Melewar shareholding

Gindalbie Metals Limited provide an update regarding the shareholding of a substantial shareholder, Melewar Steel Ventures Ltd, which has a portion of its shareholding subject to an equity finance contract with Opes Prime Stockbroking, which has had a Receiver Manager appointed.

It said that “Under the terms of Melewar's equity finance contract with Opes, we understand that the Receiver believes it has the right to sell those shares and it is currently exercising those rights. Gindalbie has been informed by the Receiver that approximately 32 million Gindalbie shares, representing 6.2% of the Company's issued capital previously held by Melewar, are in the hands of three stockbroking firms, Goldman Sachs JBWere, Merrill Lynch and Dresdner, which have instructions from the Opes Receiver to sell the stock. The ownership of a further 0.6% remains unclear and Melewar is considering its rights in respect of its position regarding the equity finance contract with Opes Prime Stockbroking.”

Gindalbie has been actively facilitating interested parties to acquire all of those shares and has received strong demand. Subsequently, the Company believes the firms acting for the Opes Receivers will be able to affect an orderly sale of those shares to a number of major institutional investors.

Melewar, which has been a substantial shareholder of Gindalbie since 2004, still holds a 7.6% stake in the company which is not subject to the facility and has indicated its intention to retain those shares.

Mr George Jones Chairman of Gindalbie said the company continued to value its relationship with Melewar and would offer what support it could in respect of this issue. He said that "This has been an unfortunate event involving one of our substantial shareholders. While this has been a market distraction I am pleased with the substantial interest that has been evident to acquire any available shares.”

He added that "These events have not distracted Gindalbie from its key focus of pursuing the development of the Karara Iron Ore Project, which we think is substantially undervalued by the market in relation to the progress we have made. The development of our world-class iron ore mine at Karara is effectively fully funded through our Chinese joint venture partner Ansteel, which also has offtake arrangements for all of the project's iron ore products. We also have infrastructure solutions in place covering rail, port and power and we are progressing through the environmental approvals process."

Hyundai to raise money at home for Czech plant

Reuters reported that South Korea’s Hyundai Motor Co is set to raise money at home to fund building an overseas factory as global financial markets grapple with a credit crunch. As per report Hyundai will borrow EUR 300 million from state run Export Import Bank of Korea to help set up a EUR 1.1 billion factory in the Czech Republic.

Mr Jake Jang a Hyundai spokesman without providing details such as interest rates and maturity, told Reuters that "Given tough market conditions, it was cheaper to raise money here than abroad.” Mr Jang said Hyundai had no problem raising money in other countries.

A KEXIM official declined to provide details on the loan but said that Hyundai had requested the lending. He said that we planned to support local companies' overseas projects with financial aid as firms in the global have faced hurdles to raise funds.

KEXIM in a statement said that "It is difficult to raise big money because of financial market turbulence due to the US subprime problems, but we will actively provide financial aid to overseas projects, which boost local companies' competitiveness.”

Hyundai, the world's No 6 auto maker by sales volume along with its affiliate Kia Motors Corp borrowed a combined USD 250 million from the state run bank in 2006 and 2007 for Hyundai's second factory in India.

Iron ore price negotiations – Vale, Ezz, LISCO, Qatar Steel and SABIC agree

Vale, the world's largest iron ore and pellets producer, concluded the direct reduction pellet price negotiations for 2008 with four important clients in the Middle East and North Africa.

1. Ezz Steel in Egypt
2. Libyan Iron and Steel Company in Libya
3. Qatar Steel Company in Qatar
4. Saudi Basic Industries in Saudi Arabia.

As an outcome of these negotiations, the direct reduction pellet price, FOB Tubarão, increased by 86.67% relatively to 2007. Therefore, the new reference price per dry metric ton Fe unit for 2008 is USD 2.4222 for Tubarão direct reduction pellets.

Siemens bags contract for water transmission system in Saudi Arabia

Siemens Industry announced that it has been awarded a contract to provide the equipment for a long distance pipeline which is to supply water to settlement areas in Saudi Arabia. Eight pumping stations will transport water over more than 900 kilometers of pipelines at a rate of 400,000 cubic meters per day. The contract has a volume of 60 million euros and the pipeline system will start operating at the beginning of 2010.

With the new 'Shuqaiq Water Transmission System', households in inhabited areas which are mainly in the northern and eastern parts of the country will be supplied with potable water from the Shuqaiq desalination plant on the south west coast.

The order received by Siemens includes supply of the equipment, engineering, supervision of the installation work and commissioning for the entire power distribution system, the automation system as well as fiber-optic cable communication solutions between the pumping stations.

The final customer is Saline Water Conversion Corporation, the leading producer and supplier of potable water in Saudi Arabia. The general contractor is a Saudi consortium consisting of the AZIZ Company and Stroytransgas. As early as 2003, Siemens completed a project for AZIZ to supply the city of Riyadh with potable water from Al Hunayy.

El Ezz steel hikes its rebar & flat prices

Egypt’s steel producer El Ezz Steel Rebars has announced that it would raise its ex factory selling prices for long products and flat products starting April 1st 2008.

As per report, El Ezz has raised an extra EGP 630 per tonne to bring wholesale steel prices to EGP 5,210 per tonne and consumer prices close to EGP 5,630 per tonne. This is the company’s third price increase since beginning of 2008. It has been steadily raising prices since October 2007.

El Ezz Steel officials have repeatedly justified domestic upsurges in the sector to leaps in international markets and rises in prices of raw material, which directly affected production costs. It stated that international indicators point towards further hikes in the price of raw billet, predicting it would exceed 40% in 2008.

Turkey to have its first coal mining museum

Dogan News Agency reported that a coal mine in Turkey that was used as a shelter during World War II and later as a training center for mine workers is expected to be converted into a museum.

The coal mining museum in Zonguldak province will be the first in Turkey. Located in the province's Baştarla neighborhood, the coal mine first became operational in 1880, during the late Ottoman era. It belongs to the Turkish Coal Institute.

However, mining activities were terminated in 1910 and it was used again as a shelter during World War II. After serving as a training center for mine workers in 1963, it was opened to the public in January 1997. As many as 13,000 local and foreign tourists have visited the coal mine in the past 10 years. Once the project, implemented by the Zonguldak governor's office, is completed, Turkey's very first mining museum will be inaugurated.

Located 50 meters underground and across a 800 meter long area, the museum is expected to draw more tourists through its display of equipment used for mining activities, enabling visitors to visualize the process in detail.

Mr Yavuz Erkmen governor of Zonguldak said that this project was launched to display, in its original location, how coal, the main raw material produced in Zonguldak, was extracted and processed. Erkmen said that after obtaining the necessary permission, a bidding process will be launched. He added that "Examples of mining museums can be seen in Europe, especially in Germany. And we shall open the first mining museum of Turkey in Zonguldak."

A multi functional hall will be built next to the museum. It will show movies and various other audiovisual shows about mining to inform visitors. A cafe will be opened next to the museum as well.

Export oriented units exempted from duties in Pakistan

The Dawn reported that Pakistan’s Federal Board of Revenue has exempted export oriented units from all customs duty, sales tax and federal excise duty leviable on all the goods imported into and exported by them, subject to the provisions of export oriented units and small & medium enterprises rules 2008.

According to SRO 326(I)/2008, in exercise of the powers conferred by Section 19 of Customs Act, 1969 (IV of 1969), clause (a) of sub section (2) of Section 13 of Sales Tax Act, 1990, and sub section (2) of Section 16 of Federal Excise Act 2005, Pakistan’s federal government has exempted export oriented units from the whole of customs duties, sales tax and federal excise duty leviable on all the goods imported into and exported from them. In another SRO, the FBR also issued certain provisions on the basis of which export oriented units will be dealt with for exemption under the rules.

Mr Humayun Akhtar Khan former commerce minister while presenting Trade Policy 2007-08 had announced introduction of such scheme for promotion of exports from Pakistan. Export oriented units and small & medium enterprises rules 2008 would be applicable only to the units licensed as export oriented units which are registered as manufacturers cum exporters under the Sales Tax Act 1990.

According to the definition, export oriented unit includes a small and medium enterprise and means a manufacturer having in house manufacturing facility located in the tariff area of Pakistan and licensed as such by the collector under rule 3, and exporting, at least 80% of its production to other countries if established before July 1st 2007 or 100% of its production to other countries if established on or after July 1st 2007.

Input goods means all goods whether imported or procured locally by an export oriented unit from the tariff area such as raw materials, accessories, sub components, components, assemblies, sub assemblies used in the manufacture of output goods as approved by the collector in the analysis certificate.

Egypt likely to waive import duty on steel and cement

Egyptian Daily News reported that the government has drafted legislation to waive import duties on cooking oil and 20 other basic food products, as well as steel rebars and cement.

As per report, the aim is to reduce the cost of food and building materials on the Egyptian market, where urban inflation hit 12.1% in the year to February 2008. Inflation is even higher for poor people who spend more of their incomes on food.

Mr Rachid Mohamed Rachid Egyptian trade & industry minister said that the duties, which range between 5% and 7%, would be waived within the next few days.

Mr Rachid said that the Egyptian government had to act against inflation because of the danger it posed to the economic liberalization program. He added that "People are coming and saying we do not have enough food to eat, we do not have enough food to live and that will hijack the whole reform program of Egypt. We cannot afford that."

The Cairo brokerage Beltone said that lifting the duty on steel and cement would make little difference because these products are still more expensive in the surrounding markets. It added that "It will not be more feasible to import after removing the tariffs, which had only amounted to around 5%."

(Sourced from Egyptian Daily News)

Pakistan EDB finalizes recommendations for steel sector in budget

The News reported that Pakistan’s Engineering Development Board’s committee on competitiveness and efficiency improvement in the steel sector has finalized its recommendations to be incorporated in the budget for 2008-09, which would be forwarded to the Federal Board of Revenue for final approval.

The committee decided to divide its recommendations in two categories; short and long term. The ones concerning the budget were finalized today, while the later will be taken up in the near future. It emphasized that the survival of steel sector lies in the development of local inputs, especially iron ore deposits.

It may be recalled that Engineering Development Board had formed 20 sectoral committees for suggesting the tariff structure in the forthcoming budget. Each committee comprises of manufacturers and experts as members, and is headed by an experienced industrialist or expert as its convener. The steel committee is one of these sectoral committees.

RAK Cement buys coal cargo at USD 150 per tonne

Reuters reported that UAE cement maker Ras al Khaimah Cement Co has bought a prompt cargo of South African coal from traders Glencore at around USD 150 per tonne on CIF basis.

As per report, the cargo was sold on a delivered to plant basis at around USD 155 per tonne, which works out to about USD 150 per tonne on CIF basis.

Ras al Khaimah Cement is one of several Gulf cement makers which have been in the market recently for South African coal used as a fuel and raw material in cement manufacture.

Building sector standards raised in Qatar

Doha Times reported that authorities have raised the standards of building materials and construction in Qatar to increase the assumptive age of new buildings in the country up to 75 years.

Mr Mohamed bin Saif al Kuwari MD of Qatar General Organization for Standards & Metrology said that it also plans to raise the penalty for violating the rules governing building materials from two to 10 years imprisonment.

Mr al Kuwari said that a study is underway to look into raising the fine from QAR 15,000 to QAR 100,000 to emphasize the protection of human life. He added that "QGOSM has approved 243 standards for construction materials, which the public or private sector should meet from January 2008."

He said that the approved standards are in line with the international specifications and legislation and are designed in a way that raises the assumptive age of the buildings in Qatar up to 75 years. He added that "It is important that national standards be in line with the international ones to avoid trading difficulties between the countries. To live up to such a principle, the QGOSM approved 2485 standards in the fields of products and services."

Mr Zayed Mansoor al Khayarin CEO of Ashghal said that the authority focused on the quality and continuity of work, safety conditions for the safety of the public as well as that of the workers. He added that such a commitment constituted the basic conditions in the implementation of infrastructure projects and public construction works, in addition to the legal reference for the implementation of those projects.

Mr Al Khayarin further added that Ashghal and QGOSM worked hand in hand as a team to draft these specifications and after getting the approval by a specialised team from Ashghal.

DP World launches automated gate system at Jabel Ali Port

DP World recently announced that it has activated its new automated gate system to be called Asraa on April 1st 2008 across all the gates within the container terminal 2 at its flagship Jebel Ali Port.

Container terminal 1 gates are currently undergoing installation of the system and will also be ready shortly. A special tagging device with a microchip fixed on a truck's chassis will be detected by sensors at gates fitted with optical character readers and radio frequency identification machines to record entry and exit through gates.

Heavy vehicles will no longer need to stop to finalize entry or exit transactions and obtain gate passes, thereby eliminating traffic congestion at the port entry points. By eliminating paper transactions, the new scheme will ensure smoother and more efficient operations and movement at the container terminal gates. A one off payment of AED 300 is paid for a permanent tag.

Mr Mohammed Al Muallem senior VP and also MD of DP World UAE region said that "Asraa represents a further step towards our vision of complete automation of all the services provided in Jebel Ali. Our customers are our top priority. With the application of the automated gate system, they will have their goods cleared and shipped in record time, ensuring speedy and efficient operations."

DP World is determined to implement the most advanced technologies. Systems that eliminate traffic congestion and eradicate lengthy, complicated procedure not only result in increased productivity at our ports but also result in satisfied customers.

To manage its operations both efficiently and effectively, DP World adopts an integrated strategy through which it seeks to upgrade its systems on a continuous basis to meet the increasing demands and businesses of its customers.

Dana Gas to drill 19 wells in Egypt in 2008

Dana Gas recently announced an exploration and development program, which will involve the drilling of 19 new wells in Egypt during 2008. Dana Gas has earmarked a large sum of USD170 million for the 19 new wells, which include 15 exploration wells and 4 development wells.

Mr Hany Elsharkawi director of Dana Gas’s Egyptian unit said that "This is a defining year for the upstream operation in Egypt and this exploration and development program could potentially double the size of our reserves and would provide further boost to Dana Gas production and revenues in Egypt."

The wells are located at the Komombo concession in Upper Egypt and two concessions in the Nile Delta. Dana Gas is said to be the sixth largest natural gas producer in Egypt among the 64 companies operating in the country.

In 2007, Dana Gas made a number of new gas and oil discoveries in Egypt, including Southern Egypt's first commercial oil discovery from its first exploration well drilled in the Komombo concession.

Russia to supply railway equipment and machines to Iran

Despite international sanctions under the MoU, signed by the heads of the Russian and Iranian railroads, Russia will supply railway equipment and machines to Iran.

At the meeting of the heads of the railroads in Tehran recently, the parties agreed on the purchase of 50,000 tonnes of rails UIC60, railway switches R50 and R65, 50,000 wood ties.

Chinese dependence on imported iron ore rises in 2007

XFN-Asia cited Mr Zou Jian chairman of the Metallurgical Mines Association of China as saying that China mined 707.1 million tonnes of iron ore last year up by 20% YoY compared with a 38% growth rate in 2006.

He said “Due to the low grade of domestic raw ore, increased difficulty in deeper exploitation, and constraints from environmental protection, energy saving and safety concerns, the over exploitation trend was curbed and the growth output of raw ore has narrowed.”

Mr Zou said imports of iron ore rose 17.4% to 383.1 million tonnes in 2007.

Shougang drops bid for Mt Gibson

AP reported that Chinese steelmaker Shougang has given up its bid for a stake in iron ore developer Mount Gibson after the Australian government ruled against the takeover.

Shougang's publicly listed unit Shougang Concord International Enterprises Co said in an announcement on the Web site of the Hong Kong Stock Exchange that in view of that ruling all rights and obligations of the parties under the share purchase agreement are terminated.

Russia's Gazmetal Holding Ltd agreed in January to sell Shougang a 9.3% stake in Mount Gibson Iron Ltd with an option for another 10% stake. The Takeovers Panel ruled that Shougang's purchase of a 19.73% stake would give it too much control over Mount Gibson due to the Chinese company's 18% stake in APAC Resources Ltd which has a 20.2 percent stake in Mount Gibson.

Chinese steelmakers have formed joint ventures or bought into Australian iron ore projects, seeking alternatives to their heavy reliance on international resource giants like Rio Tinto and BHP Billiton.

Shanghai Exchange waiting for approval for steel futures

Interfax China reported that the Shanghai Futures Exchange is awaiting approval from China Securities Regulatory Commission and State Council to launch steel wire futures and rebar futures trading.

Mr Yang Maijun GM of said at a conference said that "The SHFE has completed most of the preparations for the launch of steel product futures, with risk control measures and technical details already in place and is looking to launch the products as soon as possible.’

Mr Yang said that the exchange has succeeded in eliminating domestic steel mills' misconceptions about steel futures through various education programs. He said “Governmental authorities have been extremely cautious in examining steel futures, because of the vital role the steel industry plays in the country's economy.”

Baosteel to reduce exports to Europe on AD issues

China Knowledge reported that Baosteel Group Corp, China's biggest steel maker may cut down sales to Europe this year due to anti dumping probes.

Mr Zuo Jingui a top sales official with the company recently in a Beijing conference said that sales to Europe and Africa are expected to fall to 500,000 tonnes in 2008 down by 38% from 800,000 tonnes a year earlier. He said that it plans to raise sales to Africa and cut shipments to Europe.

The report added that early last month, The European Union launched anti dumping probes against Chinese steel exporters, including Baosteel, the fifth time of such probe since last September, which involved up to USD 681 million worth of steel products.

FMG to ship 25 million tonnes of iron ore to China in 2008

It is reported that Australian listed Fortescue Metals Group a new force in the global iron ore market is set to export 25 million tonnes of iron ore to China this year.

Mr Russell Scrimshaw ED of FMG's while speaking at a conference in said Beijing that the company's first phase 55 million tonnes capacity iron ore project at the Cloud Break Mine in the Pilbara region of Western Australia is on the verge of completion, with the first iron ore shipments due to start on May 15th 2008.

He said "We are in a China story. We have signed off take agreements with 35 Chinese steel mills, including the top 10 Chinese steel mills.”

Mr Scrimshaw said around 90% of FMG's production will supply China, while the remaining 10% will be shipped to other Asian countries. He said that the company has significant capital and is well positioned to finance its capacity expansion program. For this reason, it is not looking for any strategic partner at the present.

Fortescue Metals Group first phase iron ore project is expected to produce 28 million tonnes of iron ore this year, with 25 million tonnes earmarked for delivery to China.

Jinan orders for sub lance system for Converter No 4

It is reported that Danieli Corus BV has received a contract for the design and supply of a sub lance system equipped with the Static Dynamic Model for Basic Oxygen Steelmaking from Jinan Iron & Steel Company in Shandong Province of China

Jinan was one of the first steel companies in China to purchase Danieli Corus Sublance Technology. The first system was sold in March 2002 for their Converter No 1, after which in November 2004, two more sub lances were ordered for Converter No 2 and 3.

Chinese mills want to invest in Hancock Roy Hill iron ore deposits

Bloomberg reported that Hancock Prospecting Pty controlled by Australia's richest woman Ms Gina Rinehart said Baosteel Group Corp. and other Chinese steelmakers want to invest in its Roy Hill iron ore project as prices surge to a record.

Mr Tad Watroba ED of Hancock said in an interview that Hancock is considering three options, including ventures with steelmakers or mining companies to develop the project in Western Australia. He said “Many of the Chinese steelmakers have come to talk to us about investing in Roy Hill. We are trying to choose our financial adviser in the next few days.''

Mr Watroba said Hancock could develop the project by itself, or raise funds through selling shares in an initial public offering. He didn't elaborate. He said the Roy Hill project may hold more than 1.6 billion tons of iron ore, according to a preliminary estimate, Hancock said on its Web Site. Roy Hill's resources could have an iron ore content of 58.9 percent.

Roy Hill is about 80 kilometers 50 miles away from the railway track that BHP Billiton Ltd. uses to ship ore in Western Australia. BHP Billiton is the world's third-largest iron ore exporter.

Nanjing Steel hikes EXW prices

It is reported that Nanjing Steel pulls up EXW prices for some products, on the basis of prices released on February 28th 2008.

Round bar and carbon high quality structural round bar price is hiked by CNY 100 per tonne
Medium plate, low alloy steel and quality carbon plate price up by CNY 150 per tonne
Boiler plate and container plate price up by CNY 250 per tonne

Prices listed above are inclusive of 17% VAT effective as of April 1st 2008.

(Sourced from MySteel.net)

Tight credit norms to slow down small steelmakers growth

It is reported that China will slow the growth of its smaller producers of the alloy with a tighter lending policy.

Mr Qi Xiangdong vice chairman of the China Iron and Steel Association said in an interview in Beijing that the largest steelmakers won't be affected. He said steel prices in China won't plunge because producers need to cover the rising costs of raw materials.

China's Premier Mr Wen Jiabao said he plans to rein in lending to fight inflation. Baosteel Group Corp, the country's largest steelmaker in last month said market conditions could become more difficult with rising costs and the government measures.

Puda Coal bags coking coal order from Yanzhou Liming

Puda Coal Inc announced that it has entered into a new contract with Yanzhou Liming Coke and Coal Distribution Ltd to supply up to 120,000 tonnes of cleaned coking coal before the end of 2008

The released said Liming is a regional leading coke and coal distribution company located in Yanzhou city, Shandong Province. It mainly conducts coke and coal transactions with domestic and international coal users.

Mr Zhao Ming chairman & CEO of Puda Coal’s said “We are delighted to add Liming to our client base. Our increased capacity and advanced mix coal washing technology make Puda Coal an attractive supplier to various coke and steel producers in China. Our cooperation with Liming marks our expansion into Shandong province. We plan to increase our penetration in Shandong province and other regional markets to take advantage of the strong demand for cleaned coking coal in China.”

Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 3.5 million tonnes of annual coking coal cleaning capacity. Shanxi Province provides 20% to 25% of China’s coal output and supplies nearly 50% of China’s coke.

Palladon signs long term iron ore agreement in China

Palladon Ventures Ltd announces that its private subsidiary, Palladon Iron Corporation has signed a long term sales agreement with China Kingdom International Minerals & Metals Company Limited. The recent commodity price increases have made the sale of run of mine iron ore financially attractive, enabling PIC to contract for the immediate sale of run of mine iron ore, rather than await the financing and construction of a processing plant.

The five year contract provides for the purchase by CKI and its Australian operating subsidiary, China Kingdom International Australia, of run of mine iron ore at an initial annual rate of 2,000,000 tonnes. Pricing is fixed through March 31st 2009 and will adjust for future annual periods based on changes in the World Benchmark Prices for iron ore. The contract price is quoted FOB a west coast US port, with CKI responsible for all ocean going freight including the contracting and scheduling of ocean vessels.

The contract price for the initial period exceeds PIC's anticipated per ton operating and shipping costs and the run of mine sales are expected to generate meaningful free cash flow for PIC. PIC estimates initial capital investment to be less than USD 5 million with shipments expected to commence in the third quarter of this year. PIC is in the process of finalizing its mining plan and logistics plans for the start of operations at its Iron Mountain project in southwestern Utah. The electrical sub station facility has been installed, grounded, and charged, and is ready to be connected to the Cedar City power grid. Mobilization for mining and shipping will begin shortly in anticipation of the pending shipping dates.

It is anticipated that PIC will reinvest some of the cash flow from the run-of-mine sales into a formal feasibility study to help finance the eventual construction of a processing plant on site. When an iron ore concentrate processing plant is completed at Iron Mountain, the agreement with CKI contemplates modification to reflect the new product and pricing.

Mr Donald G Foot Jr president & CEO of Palladon Ventures Ltd said "We are very excited to be working with CKI. CKI gives us access to customers and shipping that we could not have achieved on our own, and we expect CKI will be a great strategic partner for PIC for many years to come. The latest global benchmark pricing increases enable us to export unprocessed iron ore profitably while we build a processing plant to produce high grade iron concentrates. The significant cash flow generated from this contract should provide for a robust future for Palladon and our shareholders."

Palladon Ventures Ltd is a junior resource company focused on redeveloping the Iron Mountain project in Iron County, Utah. Palladon also holds interests in gold exploration projects in Nevada, Utah and Argentina.

Xining Special Steel sold more than 1 million tonnes of steel in 2007

It is reported that Xining Special Steel’s output and sales volume in 2007 all exceeded 1 million tonnes and it ranked into million ton special steel enterprises. The operation revenue of the company in 2007 was CNY 5.7 billion up by CNY2.3 billion than that of in 2006.

As per report, in the product cost structure of Xining Special Steel, the main raw materials, such as iron powder concentrate, coke, pellet, lime, pig iron account for a large proportion. The company combines this situation, as well as the resources advantage in Qinghai province, and put forward mineral resources development strategy.

According to report, Xining Special Steel has controlled iron ore resources and coal resource, the next step is to speed up the development and construction. The company sets up Xigang Mining Development Company, it will exploit three iron ore mimes in Qinghai, among which, the reserves of Da Shalong iron ore mine is 32 million tonnes, Magnet hill mine is 35 million tonnes, Flood river mine is 12.1 million tonnes. It is expected to put into operation in three years and form 700,000 tonnes production capacity.

In 2008, Xining Special Steel plans to produce 1.1 million tons iron powder concentrate, up by 78.5% than that of in 2007. After three years, it will have 2 million tons iron powder concentrate production capacity, not only can meet the self-sufficiency, but also external sale.

Basteel and ministry of railway ink supply MoU

It is reported that recently, Mr Zhaoxia board chairman of Basteel Company, vice general manager of Baosteel and Mr Zhang Haijun deputy director general of Ministry of Railway held talks and signed a supply memorandum about 150,000 tonnes construction steel for railway.

In order to ease the Xinjiang ‘s railway transportation bottlenecks, during the "11th Five-Year Plan" period, Ministry of Railway will construct five railways in Xinjiang, the investment in Xinjiang this year will reach CNY 300 billion.

Mr Zhao Xia expressed that Basteel will fully support the railway construction in Xinjiang, and it will try best on quality, price and services three aspects to meet the needs of Ministry of Railway, make new contribution for Xinjiang’s economic development.

Sichuan Tranvic develops CRGO

It is reported that recently, Sichuan Tranvic Group has successfully developed cold rolled grain oriented silicon steel. The successful development of oriented silicon steel marks that the products of Tranvic Group have entered into transformers and electricity machines sectors.

Sichuan Tranvic Group is one of top private enterprises in Sichuan province. According to report, in recent years, Sichuan Tranvic Group increased efforts to develop new products, it has gradually exploited CR series, girder steel, weathering steel, pipeline steel and other new products greatly enhance the competitiveness of the company.

Guangxi to speed up Fangchenggang Iron and Steel Project

It is reported that on March 27th, Mr Ma Biao president of Guangxi Autonomous Region, met the team from Wuhan Iron and Steel Company, leading by Mr Deng Qilin general manager and had a deep discussion on boosting the construction of Fangchenggang Iron and Steel Base Project.

According to Mr Ma Biao on March 17th 2008, National Development and Reform Commission approved Guangxi Fangchenggang Iron and Steel Base Project to begin prophase work which means the project, will launch full scale preparation work and therefore local government and Wugang will have more work and more challenges.

China Coal Group posts 22% jump in Q1 profit

Reuters reported that China National Coal Group Corp, the country's second-largest coal producer posted a 22% jump in first quarter profit on Wednesday thanks to higher prices for the hydrocarbon and lower production costs.

The parent of China Coal Energy Corp said that its output of main products, revenues and profit in the past quarter had been the best in history.

China Coal Energy Corp said the company produced 27.7 million tonnes of coal in the first quarter up by 12.4% on the year. Coke output rose 22.9% on the year topping 1.43 million tonnes.

Chinese coke exports in February 2008

According to the recently released information by Chinese custom authorities, Chinese coke export during February 2008 amounted to 729,956 tonnes.