SAIL BSP posts best ever performance in 2007-08

IANS reported that Steel Authority of India Limited’s Bhilai Steel Plant has recorded its best ever performance in 2007-08 in the production of hot metal, crude steel and saleable steel.

Mr R Ramaraju MD of SAIL BSP said “BSP notched up the best ever performance in just ended fiscal 2007-08, crossing the five million tonne mark in the production of hot metal as well as in crude steel for the second time.”

Mr Ramaraju said that “During 2007-08, BSP achieved the best ever annual production of 5.268 million tonnes of hot metal, 5.054 million tonnes of crude steel and 4.427 million tonnes of saleable steel. This works out to 112.4%, 129% and 140% of rated capacity respectively.”

He added that “BSP surpassed its previous best performance by a good margin. While all previous records of finished rails and plates, merchant products and wire rods production have been smashed, a significant achievement in 2007-08 was the quantum jump in the production of value added special steel products and development of new product grades.”

Mr Ramaraju said that nearly two decades after its last expansion to 4 million tonnes, 2007-08 also saw the ground getting cleared for new structures. He added that the landscape inside the plant was also changing to make way for modern, state of the art blast furnace, steel melting shops and finishing mills as laid out in SAIL’s corporate plan.

Indian commerce ministry toughens stand against steel makers

FE reported that the Union commerce ministry wants Indian government to take a tough stand against steel producers' cartelization and is of the view that the ministry's way of urging them to reduce prices will not help.

Commerce ministry sources told FE that it is in deliberation with the finance ministry on India's looking into the option of imposing a peak export duty of 25% on all categories of steel and pig iron products like China, as restricting exports can improve supply in the domestic market effecting in reduction of prices.

The commerce ministry is proposing that the government come out with a price stabilization scheme and continues it till domestic prices are at par with that of China. The report made the following comparison of domestic prices in India and China

In USD

The commerce ministry is of the view that any reduction in duties will not help unless steel producers reduce the base price, on which the excise duty is calculated. Although the finance minister, in the Budget, lowered excise duty on steel inputs from 16% to 14%, there has not been any reduction in prices. Instead prices have gone up.

Mr Kamal Nath union minister of commerce and industry told a media briefing in Singapore that “We will not hesitate to take the strongest possible measures, including using some of the legal provisions we have, against hoarding, against profiteering, whether it is in food or in cement or in steel. We have Section 18 (G) of the Industrial Development Regulation Act. We do not propose using this; and the cement and steel industries must also ensure that the government does not look at it. That is a very stringent provision. We have to persuade them, counsel them. I do not want to see them as buckling under pressure.”

Orissa to close 9 sponge iron units for pollution

SNS reported that Orissa’s Sundergarh district administration has taken action against 9 sponge iron units who allegedly violated pollution control norms. As per report, the district administration has ordered closure of operations of 4 units in Kuanrmunda and 5 in Bonai, following directions from the Orissa State Pollution Control Board.

Dr Krishna Kumar district collector of Sundergarh said that "This was always in the offing for these units who were violating all the pollution norms with impunity." Dr Kumar said that most of these units were dillydallying in operating their electro static precipitator, the most effective machinery against controlling pollution in the industrial units.

The most common complaint against these units is that they use the electro static precipitator during the day time where as they stop using those in the night causing widespread pollution in the nearby areas. He added that "We are going to be very tough with them and will not spare much time for them. And those units functioning without ESP will only be allowed to operate once they install the ESP instead of the back filter in the next 6 months."

He said that a visit to some of the areas nearer to Kuanrmuda revealed the facts. The situation is really bad in some of the villages. A black sticky coat of is found almost everywhere due to the emissions from these units. Even the drinking and other water sources are badly affected. Besides, skin disease is becoming rampant these days.

It may be noted that Sundergarh witnessed massive industrialization from the beginning of this century and today there are more than 40 functional sponge iron units besides a few big captive plants, like Adhunik group's plant at Biramitrapur near to Kuanrmunda and the Scan Steel unit near Rajgangpur.

JSW Steel cuts galvanized sheet prices

Reuters reported that JSW Steel Ltd has reduced prices of galvanized corrugated sheets by INR 500 to INR 1,000 a tonne.

Mr MVS Seshagiri Rao finance director of JSW Steel said that "The cut is not across all the products but only for low cost housing and roofing products."

Mr Rao said that its revenues will be hit slightly by the price reduction. He added that "Definitely, some impact will be there as input costs continue to be high, but I can't tell you by how much."

It may be noted that India's large steel firms such as TATA Steel and Steel Authority of India Limited rolled back prices of long products by INR 2,000 a tonne after a meeting with the steel secretary late on April 3rd 2008.

Orissa delaying merger of NINL and SAIL

SNS reported that Orissa government is deliberately dilly dallying over the proposal to merge Neelachal Ispat Nigam Limited with Steel Authority of India Limited despite the fact that SAIL had drawn up elaborate plans to invest heavily in the unit.

Mr Ramachandra Khuntia chief of INTUC and also Congress MP alleged that "The merger would transfer NINL from a pig iron unit to an integrated steel plant. But for some strange reasons the state government is vacillating, perhaps keeping private steel maker’s interests in mind."

Mr Khuntia said that "The plant was commissioned in 2002 and MMTC held its marketing right taking a commission of 3% for supply of raw material and another 3% for selling of finished products. It has already earned over INR 200 crore as commission. The proposal had been mooted since long and the IBDI appointed to undertake the valuation. Mr Naveen Patnaik claims to have attracted mega projects and investment in the steel sector but in this case too the government has delayed matters effecting investment in NINL."

Mr Pratap Kumar Jena general secretary of the Shramik Sangha said that "The state was reportedly bargaining on a 1:2 ratio or at least two SAIL shares against each NINL share." Mr Jena informed that on April 9th 2008 the concerned parties are to meet to discuss the merger proposal again. Hopefully the state will agree to the merger and terms that are set.

It may be noted that SAIL has plans to invest INR 12,300 crore to make NINL a 3.5 million tonne steel plant. NINL is a 49.76:26.29 JV of MMTC and state government.

NMPT to celebrate Maritime Day on April 5

BL reported that National Maritime Day Celebration Committee at New Mangalore Port Trust will celebrate the 45th National Maritime Day on April 5th 2008.

Mr KV Vaswani deputy conservator of New Mangalore Port Trust said that the main objective of celebrating the day is to enable the public to know more about the activities of the shipping industry and the important role it plays in the economy.

He added that "The theme for this year’s Maritime Day celebration is 'solving the manning crisis in maritime industry'.

Mr KV Vaswani further added that Mr M Ajit Kumar commissioner at Directorate of Central Excise will release the Merchant Navy Flag for sale on April 5th 2008 and Mr P Tamilvanan chairman of NMPT will preside over the function.

Essar to announce groundbreaking for Minnesota Steel

Duluth & Superior Newspaper reported that Essar Steel Holdings, developer of the proposed Minnesota Steel project near Nashwauk, is expected to announce a groundbreaking date for the project later in April 2008.

It remains unclear whether Essar’s vision for Minnesota Steel has changed since it bought the company’s assets from its founders in mid 2007. They proposed North America’s first steel mill at a mine site, near the former Butler Taconite operation.

The mine and taconite operation near Nashwauk closed in 1983. Along the way and before the sale to Essar, Minnesota Steel scaled back the project scope from an operation making finished steel to one producing 2.5 million tonnes of lower margin, semi finished steel slabs per year. That significantly reduced startup costs but the scaled down concept still carried an estimated USD 1.6 billion price tag and a promised 700 permanent mill jobs.

Minnesota Steel secured all required environmental permits before the sale to Essar last year. While Essar has not made its plan public, Anzelc and other Iron Range legislators have championed USD 30 million in state bonding for Itasca County to help finance infrastructure improvements for the project. Anzelc said a state bonding bill with the project financing could be ready for floor votes in both legislative houses in early April 2008.

HZL CEO to take charge of Vedanta

Vedanta Resources Plc announced that Mr Mahendra Mehta would succeed Mr Kuldip Kaura as CEO when Mr Kaura retires at the end of September 2008.

Mr Mehta is currently CEO of Vedanta’s Hindustan Zinc Limited. He joined Vedanta’s Sterlite Industries in April 2000.

Kaura was appointed COO of Vedanta when it listed in London in December 2003, and was named CEO in March 2005.

Mr Anil Agarwal chairman of Vedanta said that “I would like to thank Kuldip, who has been a tremendous support to me during this phase of multifold growth and has played an instrumental role in the transformation of Vedanta into a well admired and robust organization, ready to take on opportunities of the future.”

He added that “With the appointment of Mr Mehta as his successor, we are ensuring a smooth transition.”

BHEL and NPCIL ink MoU for nuclear power JV

Bharat Heavy Electricals Limited and Nuclear Power Corporation of India Limited have signed a MoU to form a JV for carrying out engineering, procurement and construction activities for nuclear power plants.

The two companies will work jointly to complement their respective core strengths in the areas of nuclear power generation to meet the growing energy needs of the country. The JV will explore and evaluate the various technology options available for Steam Turbine Generator sets of 700 MWe rating and above and also help in development of BHEL as an indigenous source capable of designing and manufacturing Steam Turbine Generator sets of these ratings to meet the needs of various nuclear projects proposed to be set up in the country in future.

Mr Sontosh Mohan Dev, Minister for Heavy Industries and Public Enterprises said that “with our economy growing at 8% to 9% per annum, growing urbanization and rising prosperity, the demand of electricity is outpacing existing sources of supply. Options available for commercial electricity generation are hydro, thermal & nuclear. In the energy planning of the country, a judicious mix of hydro, thermal & nuclear is an important aspect. Diversified energy resource base is essential to meet electricity requirements and to ensure long-term energy security. With the limited resources of coal and oil available in the country and with growing global concerns of green house gases generated by fossil fuel fired stations, nuclear power will be required to play a greater role in medium and long term perspective”.

Mr Dev further stated that the target for nuclear installed capacity in the country is to reach a level of 48,000 MW to 63,000 MW by the year 2030 from a present level of only 4120 MW. This massive nuclear development program of the country shall provide good business opportunities to this JV Company and in view of renaissance of nuclear power all over the world, can become a hub for supply of equipment and services for nuclear power projects.

TATA Motors gets nod to make eco cars in Thailand

ET reported that TATA Motors has received Thailand government’s approval for setting up a Greenfield facility to manufacture eco cars at an estimated investment of INR 760 to INR 1,015 crore.

A spokesperson for TATA Motors said that Bangkok has approved its green car manufacturing facility but declined to share any investment details.

It may be noted that Thailand had invited car makers from around the world for manufacturing environment friendly cars while proposing to give tax benefits subject to certain conditions. Toyota and Mitsubishi have also received approval for similar facilities.

Others car manufacturers who had applied for the project included Honda, Suzuki and Nissan. They had already been permitted to establish eco car plants, ahead of the latest round of approval.

Indian sea cargo traffic poised for major growth – Report

BL quoted Mr Praveen Agarwal chairman of Mormugao Port Trust as saying that, with some of the maritime states showing considerable initiative to develop minor ports, India’s cargo traffic by sea is poised for a major leap forward in the near future.

Mr Agarwal said that India has 700 million tonnes handling capacity, which is estimated to touch 1.5 billion tonnes by 2013 and 2 billion tonnes by 2020 with demand for cargo traffic by sea increasing every year, besides accommodating bulk cargo carriers.

He lauded the initiatives of the states such as Gujarat, which leads the pack with 42 ports, followed by Maharashtra, Tamil Nadu, Orissa, West Bengal and Andhra Pradesh, all of which have set up maritime boards and are in the process of developing minor ports.

He said that Goa has notified 5 minor ports already, but felt that it would have to conduct a lot of studies of navigational channel as connectivity to handle cargo was crucial and expressed Mormugao Port Trust’s willingness to share its expertise in joint ventures with the state.

Mr Agarwal also spoke of imminent need for the country to create critical infrastructure for container traffic as no port is geared and capable to receive mega vessels of the capacity like 6,500 TEUs, as a result of which, the cost and time constraints in container traffic sector continue to dog India’s external trade.

Indian Railway production units exceeded their target in 11 months

It is reported that Indian Railway’s infrastructure manufacturing units have exceeded their respective targets during April 2007 to February 2008 period.

The production update for the month of February 2008 is as under

NALCO 2007-08 cast metal output up by 0.13% YoY

National Aluminum Company Limited has posted production of 359,213 tonnes of aluminum cast metal in 2007-08 up by 0.13% YoY as against 358,734 tonnes in 2006-07.

NALCO also achieved the highest ever metal sales of 358,878 tonnes during 2007-08.

HAL 2007-08 net profit up by 27% YoY to INR 1,500 crore

Hindustan Aeronautics Limited has posted a 27% YoY increase in net profit to around INR 1,500 crore in 2007-08 while, revenues rose by 11% YoY to INR 8,350 crore.

HAL said that the robust financial growth could be attributed to rise in the production of Su 30, Jaguar, aero engines etc. It had received orders worth INR 23,315 crore including orders for 159 advanced light helicopters during 200-08. The total order book of HAL today stands at INR 45,100 crore.

HAL is planning a capital expenditure of INR 600 crore in 2008-09, while the figure in 2007-08 was INR 450 crore.

Hind Terminals to start container train service to Kochi Port

BL reported that Kochi port will soon receive the first private container train service to its container terminal operated by India Gateway Terminal when Hind Terminals commences its service from Bangalore in May 2008.

As per report, discussions between Hind Terminals and DP World, which operates the container terminal, are in progress and it was proposed to start a weekly service with one rake carrying 90 TEUs to Kochi.

Sources said that with the commencement of the train service to Kochi, there is a possibility to attract more cargo from Bangalore as well as from ports in the south. This will also add tremendous value once the Vallarpadam Terminal becomes operational.

Sources in the shipping circle said that Hind Terminals is one of the 16 private train operators in India and it is also planning to start a similar service between Bangalore and Tuticorin shortly. It had already started a Delhi Nava Sheva service.

Considering this, the Kochi port with spare capacity could be an ideal gateway for some of the hinterland cargo from Bangalore, Coimbatore and Salem. The container handling at Kochi had also grown considerably as the India Gateway Terminal had handled 25,494 TEUs in February, which is the highest ever throughput achieved in the port.

NHPC plans to launch IPO in second quarter

It is reported that National Hydroelectric Power Corporation Limited is planning to launch an initial public offering in the second quarter of the current financial year.

Mr SK Garg CMD of NHPC said that "We will be going to the market shortly. We are planning an IPO during the second quarter of this fiscal."

NHPC, which has a paid up capital of INR 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10% as fresh equity besides five per cent disinvestment. The shares would be face value of INR 10 each.

The issue, which was earlier slated to hit the market during the previous fiscal, got delayed since it did not have the requisite number of independent directors on its board, as stipulated under the clause 49 of SEBI’s listing norms.

Port workers want ports to do own dredging operations

It is reported that All India Port & Dock Workers Federation has urged union shipping ministry to take steps to permit ports to carry out their own dredging operations by inviting competitive tenders and involving all interested parties.

In a letter to the secretary at union ministry of shipping, Mr PM Mohammed Haneef general secretary of All India Port & Dock Workers Federation, pointed out that the maintenance dredging cost was one of the major expenditures of the ports and the expenses incurred by them to carry out the work through contract has increased tremendously.

Mr Haneef said that although the port administration makes all efforts to improve the financial performance of the ports by improving the productivity on one side and restricting and controlling all avoidable expenses on the other, no serious and effective steps were taken for optimizing the cost of dredging.

He added that on the other hand, all the major ports of India are made to incur exorbitant dredging cost because of various decisions or guidelines and pre qualification norms imposed by the ministry. Moreover, those who do not satisfy the pre qualification criteria are banned from participating in the tenders.

He said the opinion of experts was that the stringent pre qualifying criteria stipulated have no relation to the aim to create a channel of particular length, width and depth and it is intended to entertain foreign cartels.

Mr Haneef further added that Indian dredging companies, which had successful track records, are disqualified because of the failure from the pre qualifying criteria especially in terms of financial criteria prescribed and this situation prevents the contractors, who have really achieved creation of channel at guaranteed depth at major ports and quoted low rates. Further, the proposals sent by several Port Trust boards to procure their own dredgers to meet their dredging requirements are either kept without taking any decision or rejected.

Indiabulls receives LoI for Bhaiyathan thermal power project

Projects Today reported that Indiabulls Power Generation Limited has received a letter of intent from Chhattisgarh State Electricity Board for setting up a 1,600 MW Bhaiyathan thermal power project in Surguja district.

The project includes development of captive coal mines containing proven reserves of 349 million tonnes per annum in Korba district to provide low cost coal supply to the power project. Out of the total power produced from the project, around 35% of power will be available for merchant sale at market rates and the remaining 65% will be sold to CSEB at the quoted levelised tariff.

Ahluwalia Contractors bags INR 354 crore multi contracts

Ahluwalia Contractors has bagged seven contracts worth INR 354 crore from different firms. They include

1) Contracts worth INR 118.50 crore from Vedanta Alumina for construction work at aluminum smelter project at Jharsuguda in Orissa

2) INR 78 crore contract from Hotel Leelaventure for construction of a 5 star hotel in Delhi

3) INR 47.90 crore contract from Ansal API for construction of IT Park in Greater Noida

4) INR 30 crore contract from Indiabulls Properties for construction work at Elphinston Mills

5) Contract worth INR 15.01 crore from Mudra Communications for construction of office complex in Mumbai

6) INR 14.82 crore contract from Tech Mahindra for construction and piling work of IT Campus in Kolkata

7) INR 49.50 crore for construction of residential apartments cum club house in Chennai

Financial bids for UP thermal power project to open on April 5

It is reported that the financial bids for 1,980 MW Bara and 1,320 MW Karchana thermal based power unit in Allahabad district of Uttar Pradesh is likely to be opened on April 5th 2008, while the technical bids for the 2 projects is still under evaluation.

The state energy department had already issued notification regarding the acquisition of land for the two projects.

Cummins India sees steel price hurting 2008-09 profit

Reuters reported that Cummins India Limited has forecast a capital expenditure of more than INR 1 billion for 2008-09 but said that profit will be hurt by rising commodity prices.

Mr Anant Talaulicar CMD of Cummins India said that "There will be a slower rate of profit growth as compared to revenue growth in 2008-09 due to a continuing hike we are seeing in pig iron, steel and certain alloys."

Mr Talaulicar said that "The currency impact is behind us at least for the time being. There is no evidence of any slowdown that we are seeing right now. So our outlook is positive from top line perspective."

Cummins India, which is a 51% subsidiary of Cummins Inc, makes engines for power generation, industrial and automotive markets. However it does not see the rupee having a similar impact in the current financial year. Cummins, which earns 30% of its revenue from exports, does not see any impact due to slowdown in the US markets, helped by increased sourcing by its parent company.

Rail projects in Karnataka facing delays

BL reported that shortage of laborers, raw material, delay in land acquisition and steep increase in the prices of cement and steel have adversely affected the execution of railway projects in Karnataka.

According to South Western Railway officials, there is no dearth of funds for execution of the projects in the state. But reluctance on the part of contractors to execute small projects, non availability of unskilled laborers and steep increase in the prices of cement and steel have brought about slow progress in the execution of several projects. Since several road projects were being executed, contractors were not showing interest in railway projects.

Mr S Balakrishna chief engineer of South Western Railway said that all sanctioned projects in the state would be completed with an investment of INR 5,000 crore in the next 6 to 7 years. He added that "The railways had taken up 200 kilometer of doubling, 350 kilometer of gauge conversion and 700 kilometer of new railway line. The state government has decided to contribute INR 200 crore in 2008-09 for implementing the projects."

Mr VP Baligar principal secretary at infrastructure department suggested awarding of contracts to big companies such as L&T for expediting railway projects. He added that "Construction companies refused to take up works below INR 500 crore. Establishment of a special purpose vehicle and timely release of funds could also tackle problems in the sector."

In order to provide connectivity, Mr Baligar said that the state has proposed to take up development of railway lines between Gadag to Haveri, Shimoga to Harihar, Talaguppa to Honnavar and Kushalnagar to KR Nagar.

Mr DH Shankaramurthy former minister has appealed to the railway authorities to correct injustice meted out to the state while sanctioning projects and funds. He said old bogies and furniture had been fitted on the Bangalore Shimoga train.

NALCO posts results for 2007-08

It is reported that National Aluminum Company has achieved the highest ever metal production and sales target in 2007-08. It achieved the highest ever metal production of 359,213 tonnes in 2008 as against 358,734 tonnes in 2007 and record sales of 358,878 tonnes. Its smelter and refinery have achieved 100 per cent capacity utilization.

A NALCO release said that the aluminum smelter in Angul had reported a 104.12% YoY capacity utilization, while the alumina refinery in Damanjodi achieved a 100.04% YoY capacity utilization with a production of 1.57 million tonnes of alumina hydrate as against 1.47 million tonnes in 2007.

Global SS production in 2007 down by 2.9% YoY

According to preliminary figures released today by the International Stainless Steel Forum, global stainless steel production was 27.6 million tonnes in 2007 down by 2.9% YoY. The decrease in production occurred in most stainless steel producing countries and regions. Only the Asia region and China showed increases in production for the year.

ISSF said that the decline in 2007 follows a 17% increase in production during 2006. That increase was driven by distributors and service centres who were increasing their stocks of stainless steel.

ISSF said that “Stainless steel production in Asia grew by 6.3% YoY to 16 million tonnes in 2007. Asia now produces 60% of all the stainless steel in the world. The driving force was China up by 36% YoY which is again the leading stainless producing country. China produced 7.2 million tonnes of stainless crude steel, increasing significantly the gap to the next largest producer, Japan by 3.7 million tonnes. The strong increase in Chinese production is partially based on new capacity that came on-stream during 2007. All other Asian stainless steel producing countries suffered production declines of between 3% and 15%.”

ISSF added that “The Western Europe/Africa region reported a 13.3% decrease in stainless steel production. Total volume for 2007 was 8.7 million tonnes.

It said that “Production in The Americas decreased by 15.2% YoY to 2.5 million tonnes. The Central and Eastern Europe region produced a total of 365,000 tonnes of stainless steel in 2007. This was 3% lower than the previous year. The region is of minor importance in global stainless steel production.

(Source: International Stainless Steel Forum)

Klöckner & Co acquires Temtco Steel

Klöckner & Co AG announced that it has entered into an agreement to acquire the operating assets of the distribution company Taylor Equipment and Machine Tool Corporation, headquartered at Louisville in Mississippi. The acquisition is still subject to the approval of the American anti trust authorities.

Temtco Steel is a leading distribution company for specialty plate with a large share of processing. It employs some 180 staff in 5 locations in the USA and generated sales of approximately EUR 226 million in 2007. The high strength quenched & tempered steels, wear resistant steels and security steels have broad areas of application such as energy and heavy equipment industries, as well as the mining and transportation sectors.

After the acquisition of Primary Steel last year, a company which also has a focus on specialty plate, Klöckner & Co, through Namasco Corporation, continues to expand its market position for specialty plate and strengthens its presence in the North American steel and distribution market.

Dr Thomas Ludwig chairman of Klöckner & Co AG management board said that "With sales of approximately EUR 226 million, Temtco Steel is just like Primary Steel, another larger distribution company in the North American market, which we acquired in 2007. The Temtco Steel acquisition not only strengthens our market presence, but also facilitates our expansion of our product portfolio in the area of high grade specialty plates with a large share of processing.”

ArcelorMittal sees coking coal price up by 150 to 200%

Reuters quoted Mr LN Mittal CEO of ArcelorMittal as saying that the price of coking coal is expected to rise by 150% to 200%.

Mr Mittal told Reuters during a break in the company's investor day that "High steel prices are mainly driven by the costs energy pricing and the coal price, which is still to be decided in negotiations between the coal producers and the major customers.”

He added that "Negotiations are ongoing and the new benchmark price will be announced in a few weeks and then we will be able to pass it on to customers.”

Asked what size of increase in coal prices he was expecting, Mr Mittal said that 150% to 200%.

Tokyo Steel to halt product exports in April

The Nikkei English News reported that Tokyo Steel Manufacturing Co will stop exporting steel products by the middle of April as high scrap iron prices and the appreciation of the yen squeeze profit.

The paper said that Tokyo steel's main steelworks has seen scrap iron prices climb 50% in 2007 and weaker steel demand in Japan might lead the company to cut production by almost 30%.

Mr Naoto Ohori MD of Tokyo Steel said that Tokyo Steel, which has stopped signing export contracts, cut its production by a little more than 20% last year, and may make deeper production cuts if housing starts in Japan decline further.

Nikkei reported that the company, which primarily exports to South Korea and Southeast Asia, will focus on sales within Japan to raise profit.

AK Steel adds USD 405 per ton surcharge for electrical steel

AK Steel has advised its customers that a USD 405 per ton surcharge will be added to invoices for electrical steel products shipped in May 2008.

AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the March 2008 purchase cost used to determine the May 2008 surcharges.

Siemens complete acquisition of Morgan Construction

Siemens announced that now it has taken over Morgan Construction Co the rolling mill specialist based in Worcester at USA. This company achieved sales of USD 230 million in 2007 and employs some 1,100 people in the USA, China, India, the UK and Brazil.

Morgan Construction will be managed as a Siemens Group Company by Siemens VAI Metals Technologies at Linz in Austria, a business unit in the Industry Solutions Division.

Morgan Construction is a worldwide supplier of wire mill equipment for the long product sector, and has constructed over 500 wire, bar and billet mills in more than 40 countries.

Dr Richard Pfeiffer CEO of Siemens VAI Metals Technologies said that “Combining Morgan's products and know how with Siemens' automation competence now enables us to present one face to the customer when offering complete solutions for equipping wire mills and for manufacturing long products. The integration of these two companies will enable us to set the market standards for future technological development. This takeover of Morgan's production plants will also enhance Siemens VAI's own value chain in the U.S., Indian and Chinese markets.”

Dr. Pfeiffer emphasized that “The engineering and service capacities we are gaining from Morgan will also further strengthen the support we can offer our customers in these countries, from modernizing and upgrading plants to spare-part management and retrofitting.”

French ArcelorMittal workers smash up office

AFP reported that French workers in an ArcelorMittal steel plant smashed up their boss's office Friday and threw furniture and files out the window after management confirmed that hundreds of jobs would be cut.

The attack, which was witnessed by reporters and police who didn't intervene, came after about 60 workers tried to break down doors to get into a meeting at which management confirmed to union leaders that the 575 jobs would be lost.

After the meeting at the Gandrange plant in northeastern France, members of the CGT union, who had been refused entry, fought briefly with members of another union, the CFDT. There were no injuries. A group of CGT supporters then headed to the plant director's office to tear it apart, journalists at the site witnessed.

Mr Edouard Martin a CFDT representative said that he hoped Mr Nicolas Sarkozy president would keep the promises he made to the workers of Gandrange on February 4."

ArcelorMittal, after Mr Sarkozy urged its owner Mr LN Mittal to reconsider, agreed to freeze its restructuring plan until April in order to consider a counter proposal drafted by specialists selected by trade unions. But union sources said that an investment of EUR 20 million to EUR 30 million is necessary to maintain operations at the plant. Gandrange is facing a restructuring plan that would see the elimination of the 575 jobs from a workforce of 1,108 between now and 2009.

Nigeria terminates concession of GIHL

Reuters reported that Nigerian government has revoked the concessions for its biggest steel plant and iron ore mine to India's Global Infrastructure Holdings Ltd citing noncompliance.

Nigerian government said it is rescinding a 10 year concession granted to Global Infrastructure Holdings to run the Ajaokuta Steel Company and the National Iron Ore Mining Company. A statement said the president had ordered criminal prosecution of officials and promoters of GIHL for asset stripping.

Global Infrastructure Holdings had won a 10 year concession for the 1.3 million tonne a year Ajaokuta Steel Co and Nigerian Iron Ore Mining Co in 2005, after it acquired control of Delta Steel Co in 2004. The deals under Mr Olusegun Obasanjo former president Of Nigeria were meant to revamp Nigeria's moribund steel sector, but they were so widely criticized that the new administration of Mr Umaru Yar'Adua president set up a panel in October to probe the transactions.

A statement from the president's office said that the panel's report, which was adopted by the government noted that the deals were largely skewed in favor of the concessionaire to the detriment of the Federal Government of Nigeria.

The panel said Global Infrastructure Holdings has breached the agreements by failing to submit a workable business plan within a specified timeframe, did not pay the concession fees and cannibalized plants and equipment, which it shipped abroad. It added that "Instead of investing external funds on the completion of both projects as expected, GIHL embarked on massive borrowing from local commercial banks, pledging the assets of Delta Steel Co as collateral.”

BHP in dispute with Australia tax office

The Australian Taxation Office has issued assessments and is in dispute with BHP Billiton Limited in respect of the 2001 to 2003 income years. BHP Billiton maintains that it is entitled to the tax relief claimed.

The dispute is in respect of payments made pursuant to a plant completion guarantee which had been granted by BHP in 1997 to third party financiers of the Orinoco Project in Venezuela. The dispute involves primary tax and interest of USD 289.6 million. The Australian Taxation Office is still considering whether or not to apply any penalty.

The Company is confident of its position. It intends to vigorously defend the assessment.

The outcome of this dispute is unlikely to be known for some time. In the meantime BHP Billiton believes that the matter is adequately provided for in the accounts.

Kobe Steel to raise raw steel output in 2008

JMB reported that Kobe Steel is planning to increase the raw steel output to 8.3 to 8.4 million tonnes in fiscal 2008 renewing record 8.1 million tonnes in fiscal 2007 to meet higher demand for high valued steel from manufacturers including automakers.

The report added that Kobe Steel raises the output after expansion of blast furnace at Kakogawa and Kobe works in fiscal 2007

Acepar stabilizes rebar output after mechanical failure

BNamericas reported that Paraguayan steelmaker Acepar has stabilized rebar production after a mechanical failure paralyzed part of its plant for nearly one month.

A sector official told BNamericas that "In addition to that, the company had problems last year with the supply of raw materials because of low water levels on the Paraguay river. It was a string of events.”

The steelmaker requires some 20,000 tonne per month of iron ore or nearly 250,000 tonne per year. Each boat that arrives normally carries 10,000 to 12,000 tonnes of iron ore to the steel factory. Shipments had fallen to 5,000 to 6,000 tonne per load because of the low water level.

The official said that “The situation put the brakes on several construction works throughout the country since no other companies in Paraguay produce the same types of products as Acepar.”

CFE re tenders for coal requirements

Reuters reported that Mexican state utility CFE has issued an emergency re tender for 390,000 tonnes of coal for delivery in April and May 2008

Suppliers said that CFE earlier this year awarded a tender for 4.9 million tonnes coal for delivery March to December for its Petacalco plant to local traders Ailia. But Ailia failed to produce the necessary performance bond, forcing CFE to go to the spot market for immediate delivery fuel.

CFE said that this week that it had been burning fuel oil at its Petacalco plant.

Pacific Steel raise prices of galvanized wire by 14%

New Zealand based Pacific Steel Group has advised customers it will be increasing the price of its soft and high tensile galvanized wire range by up to 14%, effective from May 1.

Mr John Beveridge GM of Pacific Steel Group said that the company has no option but to pass on to customers the increasing international cost of the raw materials for making steel. The latest price hike follows on from a similar increase at the beginning of March. He added that “We predicted at the time that ongoing volatility in the global steel commodities market would necessitate regular reviews of our pricing, and this has unfortunately been the case. We are, however, surprised by the magnitude and speed at which the market has increased.”

Mr Beveridge said that New Zealand wire prices are still very competitive in the global market and the company will continue to monitor commodity prices in the coming months.

Pacific Steel Group in Auckland is New Zealand’s only manufacturer of reinforcing steel and wire, under the Seismic and Wiremark brands respectively.

Minnesota approves pipeline permit

It is reported that Minnesota Public Utilities Commission has granted a permit for Minnesota Steel's natural gas pipeline, which has been named the Blackberry Pipeline. The commission also approved the final route, with two minor modifications.

The Nashwauk Public Utilities Commission is proposing to build and operate the 24 inch pipeline, which will run from Blackberry Township, to Taconite and then to Nashwauk. Its purpose is to provide fuel to the massive mining through steelmaking project in Nashwauk.

ArcelorMittal process for closing French plant continuing

ArcelorMittal said the process of closing part of its French Gandrange plant in Eastern France is continuing.

ArcelorMittal in a statement said that, following the works council meeting, the closing process was now entering a new phase during which social measures, to help affected workers, would be determined.

Mr Daniel Soury Lavergne GM of ArcelorMittal France said that the company is fully committed to offer each worker a solution within the group, most notably in plants near Gandrange.

US Steel Košice to upgrade BF and heat flux monitoring systems

Danieli Corus BV has signed a Contract with USS Košice, Slovakia for the Engineering, Procurement and Supply as well as installation Supervision of a hearth monitoring system and a heat flux monitoring system for their Blast Furnace No 1 at Košice in Slovakia.

This project is part of the revamp of the furnace in which Danieli Corus already takes part through engineering and supervision activities. This is an important amendment to the existing contract.

This order is a confirmation of the confidence within US Steel in Danieli Corus Blast Furnace technology.

Brazilian export prices peaking

Brazilian export price of hot rolled coils has reached as high as USD 970 to USD 1,000 per tonne for April 2008 shipments, supported by strong demands.

Price of cold rolled coils is at USD 1,000 to USD 1,050 per tonne. However the prices of HRC and CRC relatively were USD 620 to USD 650 per tonne and USD 650 to USD 700 per tonne at the beginning of this year.

Moreover, prices of heavy plates and strips have increased sharply by USD 350 per tonne. Led by strong domestic demand, there are few exports of heavy plates with 10mm to90mm thickness.

(Sourced from YIEH.com)

Second X Melt ladle furnace for Nucor Steel Tuscaloosa

Nucor Steel at Tuscaloosa in USA announced that it has ordered a second ladle furnace and automation package from SMS Demag.

The new unit will have a single treatment position to process 150-t heats. The project also includes an upgrade to the Level 1, 1.5 and 2 systems for the existing ladle furnace, which was also installed by SMS Demag.

Union members set to talk with Wheeling Pitt

It is reported that union members set to talk With Wheeling Pitt on Friday morning to discuss possible layoffs.

As per report about 100 jobs in Martins Ferry could be cut after the company decided to idle two of the three galvanizing lines at the plant.

Mr Johnny Waugh president of Union said that he estimates the city stands to lose around half a million dollars worth of income tax and Mayor Phil Wallace said the layoffs could be a devastating blow for the city.

Yusco raises SS prices again in April

Due to the nickel price fluctuation, Taiwan’s Yieh United Steel Corp has announced to raise prices again in April. As a result, the domestic prices are increased by around TWD 2,000 to TWD 4,000 per tonne.

Export price of 300 series stainless steel prices are raised by USD 150 to USD 250 per tonne, while export prices of 430 stainless steel will go up another USD 300 to USD 350 per tonne.

The report added that Tang Eng Iron Works is very likely to follow suit and downstream processors are trying effort to reflect a rise in production costs to their customers.

(Sourced from YIEH.com)

SDI to upgrade bloom caster

Steel Dynamics at Pittsboro in USA has contracted SMS Demag, a company of the SMS group for an upgrade to their bloom caster in order to make a larger section size.

The scope of supply includes new X-Cast® mold assemblies including coppers, segment zeros, new soft reduction units, withdrawal and run out guides, dummy bar equipment and maintenance stands. In addition, various components will be supplied to enable the customer to convert their existing equipment to the modified designs.

New X Melt meltshop for A Finkl & Sons

A Finkl & Sons a forging company located at Chicago in Illinois of USA has awarded SMS Demag an order for the supply of a 70 tonne AC electric arc furnace, ladle furnace and complete automation package.

The steel produced by A. Finkl & Sons is sold from the USA to more than 18 countries worldwide. The new meltshop will start production in 2009.

BRIC set to beat rich nations in energy use by 2030 - OECD

Paris based Organization for Economic Cooperation and Development has warned that Brazil, Russia, India and China, also known as the BRIC group of countries are expected to overtake the rich countries in primary energy consumption by 2030 and worsen their environmental calamities.

Issuing the 2008 OECD Environmental Outlook, the rich country economic think tank said “the primary energy consumption of Brazil, Russia, India and China together is expected to grow by 72% between 2005 and 2030, compared with 29% in the OECD countries. Unless ambitious policy action is taken, greenhouse gas emissions from just these four countries will grow by 46% in 2030, surpassing those of the 30 OECD countries combined.”

The OECD estimates suggest that 63% population in the BRIC countries is living under medium to severe water stress and this share is expected to increase to 80% by 2030 unless radical measures are taken. The OECD’s economic environmental projections indicate that world greenhouse gas emissions are expected to grow by 37% to 2030 and by 52% to 2050.

Mr Angel Gurria secretary general OCED said that “Countries will need to shift the structure of their economies to move towards low carbon, greener and more sustainable future. The costs of this restructuring are affordable, but the transition will need to be managed carefully to address social and competitiveness impacts.”

He said that adopting a traffic light approach to classify how environmental problems are managed, OECD said countries needed to do more in global greenhouse gas emissions, water scarcity, ground water quality and agricultural water use and pollution.

The report projects that world GDP will almost double by 2030 and it will cost 1% of GDP to implement a package that can reduce key air pollutants by about a third and contain GHG emissions to about 12% instead of the 37% growth if no immediate measures are taken. It has recommended a host of policies based on economic and market based instruments. They include use of green taxes, efficient water pricing, emissions trading, polluter pay systems, waste charges and eliminating environmentally harmful subsidies.

AmeriCast acquire AG Anderson

AmeriCast Technologies announced today it has completed the purchase of AG Anderson Ltd, which is based in London and Ontario.

A G Anderson is a respected source for patterns, high integrity ferrous castings and machined components. The hallmark of Anderson's success is delivering reliable engineered components on time with superior service and exceptional value.

Mr Tom Armstrong CEO of AmeriCast said that "We are very pleased and excited that AG Anderson has joined our team. Anderson brings to AmeriCast added capability and capacity to provide finished cast components to our customers. There are very clear synergies with Anderson and our existing machining operations at London Precision Machining that will benefit our customers. This acquisition, similar to Atlas Castings and Technology last year, further strengthens and expands AmeriCast's position as one of North America's premier value-added, steel casting and machining suppliers while diversifying and expanding our market place opportunities."

Mr David Anderson president of A G Anderson Ltd said that "These are exciting times. There are a lot of synergies between our different business units, and we at Anderson's look forward to building on those and strengthening our position as leading supplier of complex, finished machined castings."

AmeriCast serves the process equipment, power generation, hydro, military, mining, ship building, transportation, construction and industrial machinery markets through its six North American production facilities.

Administratiekantoor Bekaert lifts stake in Bekaert

Euronext reported that stichting Administratiekantoor Bekaert lifted its stake in Belgian steel cord and wire manufacturer Bekaert SA to 37.57% from 33.71%.

The statement said that stichting Administratiekantoor Bekaert and its related companies Velge & Co NV, Subeco SA and Millennium 3 SA, which together make up Beaker’s reference shareholder, conducted a number of transactions to hold 37.57% of Bekart's capital at December 8th 2007.

Other companies acting in concert with Stichting Administratiekantoor Bekaert were De Sneppe NV, BSI NV, Tirhold Inc, Beauval enterprises Corp and HLF SPRL.

The groups added that it is their policy to hold over 30 percent of shares and, where possible 'to strengthen their stake'.

Adriana appoints Mr Yeou to the board of directors

Adriana Resources Inc announced the appointment of Mr Paul Yeou to the board of directors of the Company. Mr Yeou is the president & director of Worldlink Canada Resources Ltd, Vancouver, British Columbia, Canada.

Mr Michael Beley president & CEO of Adriana said that "Mr Yeou brings a wealth of iron ore trading experience and will be another valuable team member on Adriana's Board of Directors. As we move forward with our vision to become a fully integrated iron ore producer, Mr Yeou's knowledge of the iron ore import and export business will be key in creating new business opportunities for the Company."

SDI announces completion of notes offering

Steel Dynamics Inc announced that it has consummated an unsecured note offering of USD 375 million of 73⁄4% Senior Notes due 2016. The net proceeds from the Notes will be used to repay amounts outstanding under its senior secured revolving credit facility and for general corporate purposes.

SDI also announced the completion of an amendment to its senior secured credit facility on March 31st 2008, pursuant to which commitments under the revolving credit facility increased USD 124 million and funding under the term loan A facility increased USD 94 million.

It said that the Notes were offered in a transaction exempt from the registration requirements of the Securities Act of 1933 and have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States, absent registration under, or an applicable exemption from, the registration requirements of the Securities Act of 1933 and applicable state laws.

Melewar gets court injunction to stop sale of Gindalbie shares

Bloomberg reported that Melewar Steel Ventures Ltd has won a temporary court injunction to halt the sale of its Gindalbie Metals Ltd shares that were pledged against a loan from collapsed Australian securities firm Opes Prime Stockbroking Ltd.

Melewar Steel in a statement said that a court will hear the case on April 10. It added that the total potential loss is 32 million Gindalbie shares or MYR 38 million (USD 12 million).

Gindalbie said that the receiver of Opes Prime ordered the sale of 32 million shares or 6.2% of Gindalbie, that Melewar Steel pledged against the outstanding loan from the broker.

Western Canadian announces 2009 operations update

Western Canadian Coal Corp announced an operations update for the fiscal year ending March 31st 2009. The Company expects to produce approximately 3.7 million tonnes of metallurgical coal. This includes:

1. Wolverine Mine producing approximately 1.8 million tonnes of hard coking coal and 0.2 million tonnes of mid volatile PCI coal.
2. Brule Mine producing approximately 1.3 million tonnes of low volatile PCI coal.
3. Willow Creek Mine producing approximately 0.4 million tonnes of ULV PCI coal commencing September 2008.

Iran to increase steel production in Khuzestan Province

Iranian state run provincial TV Ahvaz from Khuzestan reported that Mr Najm Al Sa'dat MD of Khuzestan Steel Company has said that this company's priority during the current Iranian year, which started on March 20th 2008, is to build the required infrastructures to achieve a production capacity of 3.2 million tonnes of steel.

Mr Najm Al Sa'dat said that KSC’s 32 major projects during this year are
1. Zamzam 2 steel mill with an capacity of 960,000 tonnes of sponge iron
2. Development of steel production with a capacity of 800,000 tonnes
3. Wide plate mill with a capacity of 1,050,000 tonnes

He said that the Oxin steel mill is the only mill for rolling wide steel plates in the Middle East and one of the ten mills of rolling wide steel plates of these dimensions in the world, which are consumed in production of oil and gas transfer pipes, major oil reserves, building ships, pressurized reserves and bridges.

He added that to avoid floating particles from spreading as a result of cutting at Khuzestan Steel Company, they have started building dust barrier at this mill in Ahvaz. He said that using steel scraps for melting again, building the dust barriers has an important role in the labourers' health and the environment.

2.14 million tonne of steel is produced by Khuzestan Steel Mill per year.

Pakistan Steel achieves 99% steel production target in March

Business Recorder reported that Pakistan Steel has sold its various products worth PKR 3,429.62 million in March 2008. It has also kept the pace of its production activity up and achieved 99% of its target for steel production.

Pakistan Steel officials said that the total production was stood at 83% in the March 2008. But Pakistan Steel produced 109% steel by its existing production capacity on April 2nd 2008. The officials also claimed that the mill was successfully producing pig iron, an essential raw material of steel, by using local Chaghi Iron Ore.

They said that by using local raw materials, the mill was not only saving money but also promoting local trade and economy. They vowed that the mill would continue production with same pace in future as well.

Gulf cement companies seek more SA coal – Report

It is reported that cement makers in the Gulf state of Oman and the United Arab Emirates have joined cement makers in India and Pakistan in seeking increased quantities of South African coal to use as a fuel and raw material.

Some industry sources said that demand from the Gulf is unlikely to be huge but will be a price boosting factor. Demand from India is expected to be 9 to 10 million tonnes in 2008, while Pakistan will take 3.5 to 4 million tonnes but South African exports are expected to fall from 66 million tonnes in 2007 and could be as low as 60 million tonnes.

Traders said that Oman Cement Co last week was seeking up to 5 cargoes of South African coal and bought one from traders Glencore at around USD 155 a tonne delivered to plant or about USD 150 a tonne CIF. Ras al Khaimah Cement in the UAE bought a prompt South African cargo, also from Glencore, at the same price. Gulf Cement in the UAE also bought a prompt South African coal cargo at USD 157 a tonne delivered to plant from Dubai based Emirates Trading.

Traders said that Gulf market is still very much a niche market which many players find difficult to operate in. The cement plants want coal delivered to their plants, not just to the ports and not all suppliers want to get involved in the logistics of moving coal to the plants.

Befesa wins contract to build desalination plant in Algeria

MEED reported that Spain's Befesa has won the contract to build a desalination plant at Tenes in Algeria. As per report, construction of the 200,000 cubic meters a day plant will begin in July 2008 and is due to completed in 24 months.

Befesa was the low bidder for the contract, submitting a price of USD 291.5 million and a tariff of USD 0.58 a cubic meter of desalinated water. The other bidders for the project are

Befesa will form a 51:49 JV with the Algerian Energy Company to carry out the project.

Syria signs oil refinery deal with China

SANA news agency reported that China has signed a deal with Syria to build an oil refinery as part of plans to bolster cooperation in the oil and gas industry. The deal was signed on April 2nd 2008 alongside an agreement by China to provide Syria with CNY 20 million to finance a series of joint projects in oil, telecommunication and agriculture.

As per report, the refinery will have a daily refining capacity of 100,000 barrels of crude oil and is due to be completed by 2011. It will be built in the Abu Khashab region of the eastern oil hub of Deir Ezzor.

China and Syria also signed a framework agreement to bolster oil and gas cooperation, including oil exploration. The agreements were signed by representatives of the China National Petroleum Corporation and Syrian oil ministry officials on the sidelines of a visit to Damascus by a Chinese communist party delegation.

In July 2007, Chinese state media reported that Beijing was planning a series of oil related projects in Syria, including a USD 1 billion oil refinery. Over the past years Syria has signed several oil and gas deals with foreign companies and launched tenders for exploration in both sectors in a bid to boost its dwindling energy output.

DEWA to install 10 substations at Palm Deira

DEWA recently announced that it will install 10 substations with transmission and distribution circuits worth AED 3.2 billion in the first phase of Nakheel’s Palm Deira development.

Mr Saeed Mohammad Al Tayer MD & CEO of DEWA said that nine 132 /22 kV substations and one 400/132 kV will be built on the development with Nakheel investing AED 1 billion for the power facilities. He added that "Dubai Industrial City, which would be home to about 450 factories and manufacturing centers by 2015, will be given 6 substations."

Mr Rashed Al Ansari MD of Dubai Industrial City said that the management will be ready to construct more should the need arise. Currently, DEWA is building 4 substations at DIC, each with a capacity of 132kV. Total investment in the construction of the substations is expected to reach AED 598 million.

DIC is DEWA’s third largest client after Dubailand and the Al Maktoum Airport. Also recently, Dubailand will build 11 substations of 132 kV, valued at AED 1.43 billion to supply power for the first phase of the development.

Mr Mohammed Al Habbai CEO of Dubailand said that the project has received approval for 10 more substations from DEWA to be built over 24 months. Last month, DEWA signed 6 contracts for mega projects at a total value of AED 12 billion. A number of them are for installation and commissioning of substations.

Yemen to develop private power project

MEED reported that Yemen is preparing to develop its first privately owned power generation project and is in the early stages of discussions with potential investors.

The World Bank's International Finance Corporation is advising Sanaa on ways to encourage private investment in Yemen and is in talks with parties interested in investing the in country's power sector.

Mr Gulrez Hoda associate director of the IFC in the Middle East & North Africa said that "Yemen is one of our focus countries. We are trying to work with the government to open up the financial and infrastructure sectors. We have signed an agreement with the government of Yemen to help them develop a series of public-private partnership projects. Hopefully the first one will be in the power sector."

Mr Hoda said that details of the project have not been finalized but a number of private groups have expressed interest. He added that "There is a general interest in investing in the power sector from a number of investors. Once the transaction advisory process moves forward we will draft a shortlist of bidders."

Iraqi southern oilfields resume production

Reuters reported that Iraq has partially restarted output from southern oilfields that pump around 100,000 barrels per day. It was shut down after a bomb attack on a pipeline last week.

As per report, production restarted from the Bazargan and Majnoon oilfields at 10 AM local time after Iraqi engineers connected a bypass for a damaged section of the pipeline from Bazargan.

An Iraqi government official said that "We resumed pumping crude this morning from Bazargan and Majnoon oil fields and Bin Umar field is ready to pump as soon as instructions are received." He added that before the shutdown on March 27th 2008, the 3 fields were pumping about 100,000 barrels per day.

The official added that southern oil exports were also affected, although Iraq has used oil in storage at both the fields and the Basra oil terminal to minimize the impact on shipments. The bypassed section of the pipeline would need more time for full repair.

Emaar inks MoU with Chinese firm for development projects

Dubai based property developer Emaar Properties PJSC has signed a MoU with Shanghai China News Enterprise Development Limited to explore mixed use property and infrastructure development projects in key Chinese cities. Mr Mohamed Ali Alabbar chairman of Emaar Properties and Mr Chen Ming Ren legal representative and GM of Shanghai China News Enterprise Development Limited have signed the agreement.

The strategic partnership between Emaar and Shanghai China News Enterprise Development Limited marks one of the first public private partnerships between the Chinese government and Dubai’s leading property developers. It also reiterates Emaar’s expansion plans to China. Emaar had earlier marked a milestone in its expansion plans by being the first Middle East developer to open a full ledged office in China in 2006.

Mr Alabbar said that "China’s booming economy is a magnet for investment in a number of high growth sectors including property. China’s impressive economic growth has also propelled demand for property to meet the requirements of an estimated 400 million urban population. Emaar’s partnership with Shanghai China News Enterprise Development Limited will explore opportunities for mixed use projects as well as investments in education, healthcare, shopping malls and hospitality & leisure."

Mr Chen said that "The strategic partnership signed between Emaar and Shanghai China News Enterprise Development Limited comes at an opportune time, when Chinese companies are exploring investment options from the Middle East. Emaar has proven competencies in property development which can be utilized to create integrated lifestyle communities in China."

Emaar’s expansion to China will consolidate the company’s presence in pan Asia. It already has significant investments in India, Pakistan, Indonesia and Singapore. Emaar’s geographic expansion is in line with its Vision 2010 to become one of the most valuable companies in the world. Emaar has also built competencies in education, healthcare, shopping malls, hospitality & leisure and financial services.

Nakilat and Qatar Shipping to name two LPG carriers

The Peninsula reported that Qatar Gas Transport Company Limited and Qatar Shipping Company will name the first of 2 in a series of 4 liquefied petroleum gas carriers at a naming ceremony to be held at Hyundai Heavy Industries Co Limited located at Mipo Bay in South Korea.

Mr KK Kothari CEO of Qatar Shipping Company said that "The 4 LPG vessels are to be owned through a 50:50 JV between Nakilat and Q Ship named Gulf LPG Transport Company."

Mr Muhammad Ghannam MD of Nakilat said that "The 4 vessels will be delivered between April 2008 and March 2009. With the increased growth in LNG production the volumes of LPG are also expected to grow, Nakilat and Q Ship have positioned themselves to meet this expected demand."

Under the terms of a vessel management agreement, Nakilat, through its subsidiary, Nakilat Shipping Limited, will operate the 82,000 cubic meter capacity carriers.

Italcementi sells its Turkish unit to Sibirskiy Cement

Italy's largest cement producer Italcementi is selling its Turkey unit Set Group Holdings to Russia's Sibirskiy Cement for EUR 600 million.

In accordance with the deal, Italcementi's French subsidiary Ciments Français is selling its assets consisting of 4 cement factories, 1 grinding facility and a port to Sibirskiy. The facilities sold include the publicly held cement factory Afyon Çimento as well as Ankara Çimento, Balıkesir Çimento, integrated cement factories in Pınarhisar Kırklareli, a cement-grinding facility in Istanbul's Ambarlı district and 17 ready mixed concrete facilities.

Italcementi will obtain EUR 400 million in cash and purchase Sibirskiy shares worth EUR 200 million. Afyon Çimento's share of 76.5% amounts to EUR 56.2 million. Via this agreement, Italcementi steps into the Russian market as well as remaining an indirect partner at the cement facilities it is selling.

Mr Adnan İğnebekçili chairman of Set Group Holding said that Italcementi made the sale decision to reassess its portfolio. He added that "The decision is neither related to the competition in Turkey's cement sector, nor to the political uncertainty in the country. If that was the case, Russians would not want to purchase."

China may buy LNG from Qatar

Doha Times reported that China may sign an agreement next week to buy liquefied natural gas from Qatar as it boosts the use of the cleaner burning fuel to cut pollution.

Mr Zhang Guobao head of State Energy Bureau said that China is still in discussions with the Middle East nation and there is hope an agreement will be signed.

Domestic oil companies led by China National Offshore Oil Corporation are planning more than 10 LNG import terminals along the eastern coast to meet a government target to double the use of the cleaner burning fuel by 2010.

Chinese HR export prices urge by USD 20 per tonne

Chinese export offer for hot rolled steel coil has moved up again in the first week of April. Though the rise is likely to continue in the short term, there is strong likelihood that price is going to witness adjustment in the near future.

On Shanghai market, commercial HRC in 4.5mm to 11.5mm thickness and 1500mm width was being quoted CNY 5350 per tonne up by CNY 50 per tonne to CNY 80 per tonne from last Friday and 1800mm wide material has jumped by CNY 70 per tonne to CNY 5650 per tonne.

Now prevailing HRC offers for June shipment are at USD 875 per tonne USD 880 per tonne non FOB basis up by USD 15 to USD 20 than late March. It is also heard that certain tier one steel producer has shoot up quotation to around USD 890 per tonne on FOB basis.

Views are mixed on whether export price hike will stick for the next 4 weeks to 6 weeks. Some traders have already made position at USD 860 per tonne to USD 870 per tonne and some just are employing a wait and see attitude. Those who bet a further rise plan to sell at USD 930 per tonne to USD 950 per tonne on FOB basis. However many others are afraid that there would be a sudden collapse following such a surge.

Accordingly, export quotations for commodity grade HRC may rise to USD 950 per tonne on FOB basis at most in April and then start to drop. Mysteel conjectures that it would go back to around USD 700 per tonne even if it approaches USD 1000 per tonne on FOB basis in next three months.

BaoSteel to turn around SS business

It is reported that Mr Fu Zhongzhe GM of BaoSteel told a conference call that Baosteel has an action plan to turn round the net loss it made in its stainless steel operations last year. He said that “BaoSteel will strive to further enhance its overall profitability by improving product structure and quality in the stainless steel business.

Ms Chen Ying director finance of Baosteel added that it benefited from a remarkable 30% YoY profit increase in the carbon steel sector. She said “We will get help from the financial market when possible for our technology development as well as the expansion projects. The company plans to issue CNY10 billion convertible bonds this year.”

The conference call came after China’s biggest steelmaker released its 2007 results, which showed a 2.75% decrease in its net profit to CNY 12.7billion last year, compared with 2006, though sales revenue rose by 18% to CNY 192 billion. Operating income was little changed at CNY 19.3billion. Baosteel produced 21.6million tons of pig iron and 23.8million tons of crude steel last year up by 7.8% and 9.4%, respectively.

Analysis for Chinese HR export prices

MySteel analysts have highlighted following factor, which are influencing Chinese export prices

1. The slower growth of world economy. With the possible recession in US economy, that in EU, Japan and other developing countries is set to be affected sooner or later. The cutback in Chinese exports, fast appreciation in RMB and aggravation in inflation has brought uncertainties to the future of economic development in China. People are worried that there is no escape for China and economy slowdown seems inevitable.

2. High priced steel exports are getting more difficult and it would be further constrained in 2008. On the one hand, CISA has disclosed that Beijing would consider raising export tariff rate for steel if there is a surge in export volume which is caused by rich profit. The total export tonnage for 2008 is not allowed to exceed 40 million tonnes in 2008, according to CISA officials. On the other hand, some buyers in Asia have reduced their purchase due to its high inventory level and saturated demand. The expensive Chinese steel products are not competitive again and there would be not be profit but risks. Ironically, Vietnam has already lost its leading position in importing Chinese steel products. In addition, some other countries in South East Asia have also tightened credit conditions to rein in inflation, which has greatly crippled the steel purchase from China.

3. It takes time to digest the surge in Chinese domestic market price. The continuous rise in steel prices is going to dent the purchase sentiment among downstream users. Besides, the substantial price increase in steel price and tightening credit policy has add to the difficulties of getting loans and increased purchase cost as well. It is quite understandable that price start to go down in late April or early May and drop in home price is going to drive down export price.

(Sourced from MYSteel.net)

ArcelorMittal awaiting go ahead to control China Oriental Group

It is reported that Global iron & steel giant ArcelorMittal is still waiting for the go ahead from the Chinese government to actually take the helm of China Oriental Group Co Ltd, the biggest private steel maker in its country.

Mr Dirk Matthys CEO of ArcelorMittal China in the recent Far East Steel Conference in Beijing revealed that only around 30% stake in the target company had been held by ArcelorMittal by far and there are a lot of things to discuss in the acquisition negotiation. Mr Han Jingyuan, the chairman of China Oriental Group, is still the majority shareholder by holding a 45.11% stake.

ArcelorMittal has signed an agreement with Mr Han to buy over his holdings at a price no less than HKD 6.12 per share within the agreed period.

ArcelorMittal, which aims to get the controlling stake in the Chinese company, must get through the review and approval from the anti trust unit of the Ministry of Commerce of China.

Fujian based steelmaker’s profits drop

It is reported that the profit of steel mills in Fujian province are facing great pressures as their profit will drop by at least 20% resulting from 65% iron ore price hike.

It is learned that the proved iron ore reserves in Fujian province is around 600 million tonnes but the annual mining capacity is only about 3 million tons while annual iron ore demand was over 10 million tonnes. It is predicted that iron ore demand in Fujiang would reach to 24 million tonnes till the year of 2010.

Baosteel exports large diameter pipe for the first time

It is reported that large diameter straight welded pipe, a new product of Baosteel, was exported to other countries for the first time on March 31st 2008.

As per report, the first batch of large diameter straight welded pipe with 5000 tonnes was loaded for India from the dock of finished products in Baosteel.

As per report, Baosteel branch’s pipe plant, Baosteel Packaging Company also customized bottom drawer for this first batch of large diameter straight welded pipe products, making effort to win initial success of Baosteel’s welded pipe in the international market.

China to tighten mining royalty payment system

According to a notice jointly issued by Chinese ministry of finance and the ministry of land & resources, mine owners have to pay for their mining rights and local governments must turn in 20% of the proceeds to the national coffer.

According to the notice, land and resources management departments will strengthen supervision on payment of mining charges by installment in reform pilots and mines are required to pay off the installments before they pass certificate registration and annual inspection.

Paying for prospecting and mining rights in the form of capital will be the focus of the follow on reform. If the prospecting charges are less than CNY 5 million or the mining charges less than CNY 30 million, then the charges should be paid one-off.

As to the prospecting and mining rights that get registered certificates issued by related provincial governments, one off payment standards will be made by the respective provincial governments according to local conditions.

Huadian Energy suffers losses in Q1

Reuters reported that Huadian Energy Co, a Chinese power producer, estimated that it suffered a loss in the first quarter of this year. In the first quarter of 2008, Huadian Energy posted a net profit of CNY 37.14 million.

Huadian Energy Co blamed increased coal prices, the fact that China's regulated electricity prices did not rise correspondingly and a drop in generating volume from the previous quarter.

Chinese steel scrap import in February 2008

According to the recently released information by Chinese custom authorities, Chinese scrap steel import during February 2008 amounted to 184,885 tonnes.

In tonnes

Section plant of Shougang to exploit international market

It is reported that Section plant of Shougang developed PSB758 rebar, PSB830 high strength finishing rolling rebar and HRB500S high strength rebar etc 17 new variety products.

The new developed products output rose to 26.77% from 15.04% the same period of last year among the total output. And they made technological exploration on PSB930 rebar production through hot-rolled and heat-treated method in order to expand the international market.

Chinese ferrochrome exports in February 2008

According to the recently released information by Chinese custom authorities, Chinese ferrochrome exports during February 2008 amounted to 30,201 tonnes.

In tonnes

Walsin Lihua to intensify investment in mainland

It is reported that Taiwan Lihua is optimistic to the outlook of domestic electrical wire and cable and stainless steel industry, deciding to add an investment of nearly USD 50 million to mainland so as to enrich its operation funds on March 30th and another over USD 2.31 million will be invested in the name of Walsin Special Steel for the acquisition of 22.99% stock right of Jiangyin Yuantai Stainless Steel Company.

Director of Walsin Lihua explained global nickel price last year soared to more than USD 50,000 and then plunged sharply at the end of second quarter, which made the company suffered a serious loss in stainless steel sector in Q3 last year.

Nickel price started to rebound in the fourth quarter, along which the losses of Huabang Electronic, Walsin Lihua had transferred up to over NTD 900 million of investments causing its profits to severely shrink.

Dandong Port to undertake expansion

It is reported that the Chinese port of Dandong in Liaoning province could treble in size on the back of an expansion program that reports say is already underway. The expansion program will boost the number of berths at Dandong to 60 large deep water berths from the current 20 over the next three to five years.

The port currently also has a large shipyard and eight kilometers of a deep water coastline, which is slated to be expanded to 15 kilometers. According to the Dandong Municipal Information Centre, the port's handling capacity should rise to 15 million tonnes per year by 2020.

According to a NewsTrak report Construction work has already begun for a RO RO facility, two container berths, a cement carrier berth and another shipyard, all of which are expected to be completed by 2010.

Dandong currently offers general, bulk cargo, container and passenger transport services.

Shaanxi Coal and Chemical to achieve 60 million tonnes output in 2008

It is reported that Shaanxi Coal and Chemical Industry Group plans to invest CNY 20 billion for key projects in 2008 after which the output of coal will reach 60 million tonnes and chemical products will reach 2.1 million tonnes. Sales revenue will break through CNY 20 billion, and the profit to reach CNY 1.2 billion.

According to the Group’s "11th Five-Year Plan", it will prevent major environmental pollution incidents, and gradually enhance the workers’ income, continue to improve the internal reforms, and speed up the construction of new projects.

NLMK Group companies post 20% dip in profit for 2007 as per RAS

Novolipetsk Steel has announces 2007 Russian Accounting Standards financial results for the Group’s major Russian companies

In RUB million

NLMK said that “The Group’s 10.4% revenue growth in 2007 was an increase in prices for steel products in our core markets. Moreover, in 2007 we changed the steel product sales structure so that commercial slab sales volumes decreased and high value added products sales increased but with the total sales volume remaining at 2006 level. NLMK operating profit decreased by 10.2% due to a dramatic rise in price of basic raw materials: coking coal, coke, iron ore and scrap. At the same time coke, iron ore concentrate and sinter ore as well as fluxes are supplied from NLMK subsidiaries. Considering our vertical integration we are expecting record consolidated financial results in 2007. NLMK’s net profit decreased by 20% YoY in 2007 due to a lack of the material disposals of assets which took place in 2006.”

VIZ‐Stal

In RUB million
VIZ Stal sales revenue grew by 16.2 % YoY and is attributable to an increase in prices and transformer steel sales volumes. The decrease in consumption ratios of transformer steel production due to the optimization of technological regulations and the production schedule significantly contributed into the production cost reduction and financial growth of VIZ Stal.

Stoilensky GOK

In RUB million
The significant increase in Stoilensky GOK’s key financials in 2007 versus 2006 is primarily attributable to favorable market conditions which contributed to iron ore concentrate and sinter ore price growth. The increase in iron ore concentrate sales volumes was due to the completion of the first stage of the fourth section of the processing factory in 2006 and in sinter ore sales volumes as the mining properties of the site had a positive influence.

Altai‐koks

In RUB million
Altai-Koks sales revenue grew by 55.5% in 2007 compared to 2006, net profit increased 2.9 times. 2007 key financial indicators were mainly impacted by an increase in coke prices in H2 2007 and an increase in sales volumes following the commissioning of coke battery #5 in late 2006.

TMTP

In RUB million
The weakening of the US dollar was the key contributing factor of the decrease in OJSC “TMTP” financial results. Freight turnover tariffs are regulated by state authorities and denominated in US dollars. TMPT results were also impacted by a decrease in bulk cargo transshipment volumes due to some discrepancies between employees and the port administration, which were settled in early 2008.

NTK

In RUB million
NTK key financial indicators grew significantly in 2007 compared with 2006 due to the usage of NTK’s own rolling stock and an increase in the amount of leased railcars which enabled OJSC “NTK” to reduce railcar usage fees paid to “Russian Railways”, thus cutting transportation costs. Another reason for this growth is the expansion of transportation services. NTK is a fully fledged transportation company with its own fleet, which is to be extended in 2008.

Ukrainian crude steel output in Q1 up by 3.7% YoY

Millennium capital reported that the total crude steel output of the 13 Ukrainian steelmakers increased to a total of 10.83 million tonnes up by 3.7% YoY in Q1 of 2008. Over the period pig iron output grew to 9.03 up by 4.4% YoY while rolled steel production reached 10.18 million tonnes up by 6% YoY.

In million tonnes

In million tonnes