SAIL RMD sets new output records in 2007-08

It is reported that Steel Authority of India Limited’s Raw Materials Division, which operates 7 iron ore mines in eastern India, has achieved record production in 2007-08.

1. Iron ore production - 18 million tonnes up by 5.7% YoY
2. Iron ore dispatch - 16.92 million tonnes up by 4.19% YoY

The performance of SAIL RMD’s mines in 2007-08 is as under

SAIL RMD has also intensified its corporate social responsibility by launching an archery academy at Kiriburu, opening an industrial training institute at Gua, and developing a model steel village at Kalta Basti in Orissa.

SAIL RMD has stepped up production of iron ore at its mines and is aiming for 42 million tonne of iron ore by 2010-11.

BEML in driving seat amidst mining boom in India

Bharat Earth Movers Limited has pegged its growth on the booming business of mining & construction and expects its contract mining foray to fructify during the current fiscal with 2 to 3 blocks coming to its JV.

Mr VRS Natarajan MD of BEML said that its M&C business has grown up by 10% YoY over 2007 to nearly INR 1,800 crore and is poised to grow further with contract mining. Ironically the mining and the rail businesses have outgrown its core defense segment, leaving it behind at INR 765 crore, with an equivalent order book.

Mr Natarajan said that the mine blocks allocated to some 80 to 100 public entities including state governments, electricity boards and power corporations were waiting to be tapped.

He added that "The states are asking us to enter JVs with them and take over the mines. We are working with some of them and hope to have 2 to 3 blocks by 2009. It will be a win win scene for both of us and it will mean a 30 to year business along with equipment sales from BEML. This is a huge opportunity to leverage our growth."

IIL reduces GC prices

Reuters reported that Ispat Industries Limited has reduced prices of galvanized corrugated sheets by INR 500 per tonne to INR 1,000 rupees a tonne.

Mr Vinod Garg ED marketing of IIL told Reuters over the telephone that "We will be only slightly affected as it doesn't contribute to our revenues a lot.” Mr Garg told that Ispat produces nearly 90,000 tonnes of galvanized sheets annually which contributes to only around INR 84 million of its revenue.

NCDEX to launch steel ingots trading by April end

PTI, citing its CEO, reported that India’s National Commodity and Derivatives Exchange Ltd will launch steel ingots trading in the spot exchange by April end.

Record FDI inflows into India

It is reported that India witnessed highest foreign direct investment equity capital inflow during the year 2007-08 till February 2008, which has reached a record level of USD 20.1 billion up by 70% YoY as compared to USD 11.88 billion in April 2006 to February 2007.

This is the highest FDI into equity in India during any year.

FDI inflows received in the month of February 2008 are an unprecedented USD 5.671 billion. The inflows in the month of February have surpassed the inflows received in any single year since 1991 barring last year ie 2006-07. The FDI inflows received in February 2008 is an increase of 712% over that in February 2007.

SAIL develops Chiria siding

FE reported that the raw materials division of Steel Authority of India Limited has invested around INR 2 crore to modify the Manoharpur railway siding for its Chiria mines.

SAIL, which is looking forward to increasing production at Chiria, has extended the siding for full rake loading and will reduce loading time by up to 40%.

CIL MCL celebrates 17th Foundation Day

It is reported that Coal India Limited’s Mahanadi Coalfields Limited has organized a three day function to celebrate its 17th Foundation Day and is planning to take up the challenge of attaining a production of 152 million tonnes of coal over the next 5 years.

Mr PS Bhattacharya CMD of CIL, while addressing employees of MCL, said that "After completing 16 successful years, MCL cannot get complacent with 88 million tonnes of coal production. We now shoulder a bigger responsibility and we have to meet to dream production of 152 tonnes."

Mr Bhattacharya said that "Starting from just 23 million tonnes productions in 1991, the production crossed 88 million tonnes in the year 2007-08. We further expect to cross 100 million tons during the current year."

Casting light on the unending problems of the land oustees, he further assured the land oustees would be given fair deal from MCL. He added that "To protect the interest of the land oustees, coal bearing areas and the Orissa state as a whole is the prime duty of the coal company and there would no compromise in it."

TATA Group to earn more in Europe than in India – Report

It is reported that TATA will derive more of its revenues from UK based businesses than from Indian ones after its planned take over of Jaguar and Land Rover, marking an important step in the globalization of corporate India.

As per report, the combined turnover of Corus and Jaguar & Land Rover is about USD 36 billion as compared with the USD 28.8 billion the TATA group reported in the financial year ended March 2007. It has not yet released data for the financial year ended on March 31st 2008. But they are expected to show that the UK has become TATA's single biggest overseas market and its European market as a whole is nearing the size of India.

Mr Alan Rosling executive director of TATA Sons said that "In the current year, Europe becomes almost as big as India for us."

SER freight earnings in 11 months up by 10% YoY

BS reported that South Eastern Railway has generated a record freight earning of INR 4,882 crore in April 2007 to February 2008 period up by 10.8% YoY as against INR 4,405 crore earned in April 2006 to February 2007 period. It reported freight traffic of 100.24 million tonne up by 12.2% YoY.

Details of freight carried in April 2007 to February 2008 are

In million tonnes

Mining equipment segment in India to grow to USD 15 billion

It is reported that Bharat Earth Movers Limited’s mining and the rail businesses have outgrown the company’s core defense segment, leaving it behind at INR 765 crore, with an equivalent order book.

Mr VRS Natarajan MD of BEML highlighted a 2007 McKinsey report on the Indian earth moving industry, which has forecast a 6 fold growth in the equipment business, from USD 2.3 billion to swell to USD 15 billion by 2015.

BEML’s strategy of having 21 mining equipment dealers across the country had paid off with sales of INR5 crore for 717 equipment, almost doubling sales year on year. BEML was also diversifying into high capacity dumpers, rope shovels and pushing sales of loaders, small excavators and dozers.

BEML had also signed a MoU with SAIL to supply mining equipment worth INR 400 crore for 3 years, including a maintenance and repair contract.

BHEL bags INR 50,000 crore equipments order in 2007-08

It is reported that Bharat Heavy Electricals Limited has bagged INR 50,000 crore order for supply of critical equipments including transformers for power generation in the last fiscal ended March 31st 2008.

Mr RK Singh CEO of BHEL Bhopal unit said that "Competition is growing. In spite of stiff challenges from India's Crompton and Greaves and International player like Siemens, BHEL bagged order of over INR 50,000 crore including INR 1200 crore for export."

Mr Singh said that the unit bagged an order of INR 4,014 crore during 2007-08 as compared to INR 3,065 during 2006-07. He added that the unit has earned INR 504 crore profit during 2007-08 as compared to INR 410 earned during 2006-07, up by 23% YoY.

He further added that at the national level, BHEL bagged an order of INR 23,000 crore while it was just INR 16,000 crore 2 years back. By June to July 2008, BHEL would be able to achieve 30,000 MW target of power generation, which is 18,000 MW at present.

NTPC to enter into renewable energy sector

DNA Money reported that National Thermal Power Corporation is planning to enter the renewable energy market, primarily focusing on wind energy.

Mr T Sankralingam CMD of NTPC said that "NTPC is looking at developing a diversified portfolio over the next few years to reduce its dependence on coal and other depleting sources of energy." He added that it is also planning to enter the renewable power sector and wants to see substantial capacity coming up by the end of 2017.

Mr Sankralingam said "Though the targets are not in place yet but we have made a decision to foray into the renewable field." He added that NTPC will be aiming to set up a wind power generation capacity of up to 500 MW by the end of 2013.

Apart from the new initiatives, NTPC has planned mega thermal capacity expansion programs under the 11th Five Year power generation plan of government of India, which started in 2007 and will end by March 2012. Out of the total 78,577 MW that the government is planning to add under the 5 year plan, NTPC had set a target of 22,600 MW alone.

NTPC is also targeting 47 million tonne of coal mining capacity by 2017. It had also signed a JV with Bharat Heavy Electricals Limited, which might help it in procuring equipment faster.

SPS Steel acquires 55% in Ascon

SNS reported that SPS Steel & Power Limited has taken 55% management control of Ascon Agro Products Exporters & Builders Private Limited, which had recently set up a 100% export oriented unit for manufacturing potato flakes at Dhaniakali in Hooghly district.

Mr Bipin Kumar Vohra CMD of SPS Steel said that keeping in mind the high production of potatoes in the state, one of the key areas of development would be the setting up of a multipurpose cold storage area, in which 50,000 tonnes would be devoted to potatoes and 6,000 tonnes reserved for other vegetables. He added that "This would entail an investment of INR 15 crore. The potato flakes plant has an installed capacity of 7,000 tonnes a year and is expected to produce 3,500 tonnes in the first year, working on a single shift basis."

A meat processing zone and a food park, with Ascon Agro being the principal developer, were also in the pipeline. While 20 acres of land has already been acquired, accretion of 70 acres was in process. SPS has a total planned investment of INR 175 crore in this venture with at least 75% being financed through debt or advances from banks.

BHEL Bangalore records INR 1,687 crore turnover in 2007-08

BS reported that Bangalore based operations of Bharat Heavy Electricals Limited have posted a turnover of INR 1,687 crore up by 13% YoY and a profit before tax of INR 429 crore up by 14% YoY. The Bangalore unit, which comprises electronics division, industrial systems group and electroporcelains division, had an order book of INR 4,695 crore by the end of the 2007-08 fiscal.

BHEL had bagged significant orders during 2007-08, including one from National Thermal Power Corporation and Karnataka Power Corporation Limited. It had also bagged an order from Hindustan Petroleum Corporation Limited for supply, installation and commissioning of grid interactive solar photovoltaic systems along with street and yard lighting systems at 57 of their outlets in the latter’s south and west zone operations.

The control and instrumentation business, which has a market share of 65%, booked orders of INR 1,825 crore during 2007-08, highest in a year. The city units together booked orders of INR 3,227 crore during the year. The electronics division has signed a business sharing agreement with Strukton Railinfra of Netherlands for propulsion systems for the railways rolling stock. It has also bagged an order from Chittaranjan Locomotive Works for supply of 50 sets of control electronics for 6,000 HP AC Loco during 2008-09.

The Bangalore based units booked exports contracts worth INR 347 crore and registered an exports turnover of INR 211 crore. The electronics division has filed 6 patent applications for process and product related features in control equipment and solar photovoltaic areas.

The Bangalore units of BHEL have embarked on a major expansion plan in their existing business areas so as to achieve an annual turnover of over INR 4,000 crore by 2011-12. BHEL has developed test bed and higher rating semiconductor diode for use in 800 MW turbo generators and these products will help the company handle super critical projects.

Kishan Kanaiya to sign PPA for Gujarat hydropower project

Projects Today reported that Kishan Kanaiya Hydropower is planning to sign a power purchase agreement with Gujarat Urja Vikas Nigam for a 3 MW small hydropower plant on Karjan dam in Narmada district of Gujarat.

The project will be implemented in two units of 1.5 MW each, with an investment of INR 16 crore. Hydrotech Consultant is the consultant for the project. Kishan Kanaiya had invited bids for the execution of the project on EPC basis on March 25th 2008.

The scope of the work includes design, manufacture, supply and erection, testing and commissioning of Francis turbines, including electro hydraulic governing units for operating runner and guide vanes.

The power project has received all necessary clearances from the state and Central governments. Work on the project is expected to start by September 2008, with completion scheduled within 12 months.

Kishan Kanaiya Hydropower is also setting up a 1 MW Wanakbori hydel based power unit at Wanakbori in Kheda district of Gujarat. The detailed project report for this project is currently under way.

GERC puts distribution companies on notice

BS reported that Gujarat Electricity Regulatory Commission has come down heavily on state owned distribution companies for arbitrarily collecting reconnection charges from all types of consumers without physically disconnecting power for unjust enrichment.

GERC has directed all the 4 state owned power distribution companies to refund the amount of reconnection charges to consumers concerned after verifying the genuineness of each case. It has also directed that all the licensees distribution companies issue a general public notice in two daily newspapers regarding the same.

The petitioners Ahmedabad based Consumer Education & Research Society and Surendranagar District Industries Association claim they have received many complaints from the consumers.

These include Paschim Gujarat Vij Company Limited, Rajkot, Uttar Gujarat Vij Company Limited, Madhya Gujarat Vij Co Limited, Vadodara and Dakshin Gujarat Vij Co Limited.

UPPCL evaluating bids for two thermal power plants

It is reported that public private partnership model in the power sector has started to take shape in the power starved Uttar Pradesh with technical bids to develop 2 power plants with a generating capacity of 3,300 MW under evaluation. As per report, Uttar Pradesh Power Corporation Limited is evaluating the technical bids submitted by nine companies to set up 2 ultra mega thermal power projects at Bara and Karchhana respectively in Allahabad district.

Mr Avnish Awasthi MD of UPPCL said that while the technical bids were being evaluated. To tide over the persistent power crisis in UP, the state government has proposed to ramp up its total power generation capacity by over 10,000 MW in the 11th Five Year plan.

UP government is setting up 1,980 MW and 1,320 MW thermal plants respectively at Bara and Karchhana based on super critical technology by adhering to a tough bidding process. The technical and financial bids would together form the criteria for the award of the critical projects.

Four companies Jindal Steel & Power Limited, NTPC, Lanco Infratech and Reliance Power submitted their bids for the Bara project. The Karchchna plant had Calcutta Electric Supply Co, Jindal Steel & Power, JSW Energy, Reliance Power and Lanco Infratech as bidders.

UP has to import power from the central sector and other states to fill the demand supply chasm, which widens during summers every year. Recently, the state signed up an agreement with the hill state of Himachal Pradesh for supply of power during the coming months.

UPPCL has also undertaken the renovation work for its existing plants on a massive scale to tide over the power crisis and taken several steps to check the rampant power pilferage and theft, besides line and distribution losses. The power sector in UP has long been a laggard with no capacity addition in the last several years, while the demand has grown by leaps and bounds.

Coking coal benchmark price to cross US 300 - Report

Kyodo News reported that negotiations between Nippon Steel Corp. and BHP Billiton are likely to result in a 210% spike in the price of coking coal in the next business year.

At present, BHP Billiton charges USD 98 per tonne of coking coal and the imminent markup would push up the cost to roughly USD 300. The coking coal markup, the first in three years, would price the material at a level far surpassing the past record of USD 125 in fiscal 2005.

As per reports, spot cargoes of coking coal have been sold recently at prices as high as USD 350 per tonne.

The results of negotiations between Nippon Steel and BHP Billiton have functioned as the de facto bellwether in price talks between coking coal suppliers and global steelmakers and if settled, other miners are likely to adopt these levels.

POSCO considering raising steel prices

It is reported that POSCO is considering a rise in steel prices.

It said that “We are considering raising steel prices but details in terms of the timing and the level of the price hike have not been decided.”

The potential price hike, which would be the second this year soothes concerns that rising costs of raw materials, such as iron ore, will eat into its profits. POSCO, which has lagged its local rivals such as Hyundai Steel in raising prices, has come under mounting pressure due to rising costs of coking coal and iron ore used to make steel.

7 firms reported to be in interested in Kremikovtzi

Novonite reported that 7 steel makers from around the world are interested in buying 71% of Bulgaria's largest steel mill Kremikovtzi. This was announced by Merill Lynch representatives after they met Mr Petar Dimitrov economy and energy minister of Bulgaria.

Mr Dimitrov said that "No decision for Kremikovtzi sale has been taken yet and talks are still underway.”

The Merill Lynch representatives announced they needed several weeks to complete a deal with some of the bidders for the 71% share of Bulgaria's steel mill. Merill Lynch has been hired by Global Ispat Holding, the present owner of the stake, as a consultant to aid in the search for a new investor in the steel factory.

As per reports in Bulgarian media seven firms has shown interest in acquiring stake in Kremikovtzi.
1. Ukrainian Mr Konstantyn Zhevago, who controls Ukrainian iron ore producer Ferrexpo and steel company Vorksla
2. ArcelorMittal
3. Ukrainian Mr Rinat Akhmetov owner of Metinvest
4. Turkish Erdemir
5. Swiss based Duferco Group
6. Russian steel maker
7. US Steel

The Bulgarian government, which owns 25.3% of the plant firmly requires that the new owner should invest immediately in the recovery plan for Kremikovtzi including certain environmental measures.

Bulgaria sold a 71% stake in Kremikovtzi to the Bulgarian Finmetals Group in 1999 for a token USD 1 along with debts to the state and suppliers standing at USD 420 million. In mid 2005, Global Steel Holding Ltd bought Finmetals and took control of the mill, which employs 8,000. The company put forward but failed to implement an ambitious turnaround plan. Kremikovtzi has a production capacity of 2.2 million tonnes but produced only 1.4 million tonne in 2007.

Mr Chavez to nationalize cement industry in Venezuela

Venezuelan President Mr Hugo Chavez has announced that he will immediately nationalize cement companies in Venezuela, including Mexico’s Cemex and France’s Lafarge.

Mr Chavez in a cabinet meeting late Thursday broadcast on radio and television said that “We are going to nationalize the cement industry. Starting now, take all the legal and economic steps to nationalize in the short term the national cement industry, everything that was privatized.”

He however added that effected companies would be compensated. He said “We are going to make an assessment, we will pay what it cost these people and we will at the same time make a technological plan to modernize the cement plants while putting social power in the hands of the state."

France’s Lafarge and Mexico’s Cemex are the two major cement companies in Venezuela.

US Steel pulls out of bidding for Kremikovtzi

Novonite reported that US Steel, which was earlier reported to have been interested in the acquisition of a majority stake in Bulgaria's biggest steelmaker Kremikovtzi has withdrawn from the sale.

The report cited Mr Petar Dimitrov economy and energy minister of Bulgaria as saying that "The American company does not seem to be interested any more in Kremikovtzi, unlike the Ukrainian bidder.”

More than 80% of employees reject Sidor offer

BNamericas reported that Venezuelan steelworkers union Sutiss said that over 80% of the 4,032 employees able to vote in a union vote have rejected Ternium Sidor's salary offer.

The point of the union vote was to determine whether employees accept the company's economic offer or prefer that Sutiss continue negotiating.

Mr José Rodríguez union president told BNamericas that "3,238 employees rejected the company's salary offer, which is over 80%.”

In mid March, Ternium Sidor made a final offer to boost employee salaries by BOB 44 per day (USD 20.52), raising the basic monthly wage from BOB 1,240 to BOB 2,572. But employees have been organizing strikes and protests to pressure for a raise of BOB 68.

Malaysian Lion plans up to USD 1.3 billion in investments

Reuters reported that Malaysian property to retailing firm Lion Diversified will spend up to MYR 4.2 billion (USD 1.32 billion) on an iron manufacturing complex and a mill to boost its steel making capacity.

Mr William Cheng CEO of Lion said that "With the completion of these projects, we will be able to produce high grade and clean steel as well as special steel.” He added the new projects will boost the group's steel making capacity to more than 8.2 million tonnes and make it one of the biggest steel producers in Southeast Asia.

Lion Diversified will set up a MYR 2 billion iron manufacturing plant complex in the central Malaysian state of Selangor, which includes a blast furnace, coke oven, sinter and pellet plants and port jetty facilities. It added that the facilities are expected to be operational from July 2009.

Lion Diversified also plans to invest up to MYR 1.8 billion on a mill to make plates and install a MYR 400 million power plant, which will run on waste gas from the iron making complex.

US SS makers and buyers disagree on pricing

Purchasing.com reported that there is considerable debate about the future direction of stainless steel flat rolled in the US market.

AK Steel this week said that it plans to increase transaction prices for stainless steel sheet, strip and continuous mill plate products by adjusting the functional discount rate, which will equate to an increase in base prices of approximately 4% to 6%, depending on the grade. The AK Steel pricing action affects the 200, 300 and 400 series, as well as duplex grades of sheet and plate shipped after April 6.

The Ohio based steelmaker said that the price increases are in response to stronger demand for stainless steel, as well as the need to recover increased costs of steel production. Key alloys in making stainless steel nickel, molybdenum and chrome have all risen in price lately because of reduced supply in the face of solid offshore demand. But, OEM buyers have reduced purchasing considerably and said that they have no plans to increase buys anytime soon.

According to Purchasingdata.com, with early 2008 consumption off by almost 11% from the fourth quarter tonnage of sheet and plate, stainless steel lead times still are less than two months for supplier deliveries. It added that in fact, some mills are shipping cold rolled sheet in coil in four weeks. The latest report to clients from MEPS said that “while demand for stainless steel flat rolled sheet and plate products from the capital goods sector is very strong, other segments are weakening.”

Purchasingdata.com reports that stainless steel cold rolled sheet, grade 304, cost an average USD 4211 per tonne in March, which is forecast to slide to USD 4109 by June. Another market survey by MEPS reports that a March average of USD 3969, noting that “customers are only ordering what they need for immediate consumption and service centers are reluctant to restock.”

Malaysian may ease curbs on steel and cement imports

According to Mr Tan Sri Muhyiddin Yassin international trade and industry minister of Malaysia the government may consider easing restrictions on the import of steel bar and cement in Peninsular Malaysia. He said this when asked whether builders in the peninsula would be allowed to import steel bar and cement like those in Sabah and Sarawak which were allowed to do so this year.

Mr Muhyiddin told reporters after witnessing the signing of the agreement between Lion Blast Furnace Sdn Bhd and Beijing Shougang International Engineering Technology Co Ltd for coke oven and sinter plant contract that "Yes, we might have to look at this matter when the industry is in the shortage position. But we have to set a certain timeframe. It will take some time.”

An analyst had said the lifting of the ban on the import of these materials could benefit property buyers as there would be less upward pressure on prices of new homes due to cheaper construction materials.

The Real Estate and Housing Developers Association and Master Builders Association Malaysia had attributed the shortage of steel products in the country to local steel millers preferring to export them to capitalise on higher prices overseas. Both associations said contractors had to buy steel bars from the grey market to keep up with construction schedules, at prices higher than the rates set by the government.

Mr Muhyiddin also said his ministry, together with Domestic Trade and Consumer Affairs Ministry, were in the process of studying the need to liberalize the steel and cement industries to allow for more healthy competition. He added that "The government has imposed certain restrictions on the price and import. We will look at them closely to ensure that the consumers, as well as industry players, get a fair deal adding that the market should be allowed to determine the price.”

US flat rolled steel buyers testing uncharted waters

The Platts price assessments of hot rolled and cold rolled coil in the US market edged up to midpoints of USD 815 per short tonne ex works Indiana for HRC and USD 905 per short ton for CRC. Large volume transactions 10,000 short ton or more for May delivery were reported as low as USD 800 per short tonne for HRC, but spot deals in the 1,000 to 2,000 per short tonne range were being conducted north of that price.

According to market sources, some smaller mill order books are still open for May deliveries. But customers told Platts they had been informed the minimum price sought would be USD 840 per short tonne ex works Ohio.

Steel Dynamics has also yet to reveal a May price, following its recent pattern to come out late in the month with prices higher than most other producers. One of its Indiana customers said that "SDI's strategy is to wait as long as possible to announce its prices, which is smart in this rising market.”

Two weeks ago another Ohio based producer, AK Steel, increased its HRC price for May product to USD 850 per short ton ex works Ohio.

What's more, Nucor Berkeley in South Carolina still had room last week in that mill's rolling schedule but was asking customers for USD 890 per short ton ex works South Carolina. All other Nucor mills were reportedly booked.

Buyers are openly wondering what June will bring. Several interpreted Nucor's Berkeley increase as an omen that we'd hear June HRC offers of USD 890 to USD 900 per short ton. But these are uncharted waters. No one knows, even higher would not be a surprise. And after scrap's big move, it could get ugly.

US H1 scrap prices remain steady

It is reported that on March 31st 2008, the average price of H1 scrap in Pittsburgh, Chicago and Philadelphia was at USD 351.17 per long ton and bundle scrap was at USD 299.5 per long ton.

Among them, the average price of H1 in Pittsburgh was at USD 324.50 per long ton; in Chicago was at 357.50 per long ton; in Philadelphia was at 371.50 per long ton.

The Eastern coast price of NO 1 scrap in New York, Boston and Huston was at USD 312.50 per long ton. In western coast, the price of NO 1 scrap in Los Angeles, San Francisco and Seattle was at USD 116 per long ton. The prices in these two area remained the same as the prices of last week.

(Sourced from YIEH.com)

Massey sees higher metallurgical coal prices

US coal company Massey Energy Co said that it expects metallurgical coal prices over the next three years to be significantly higher than it previously forecast and is raising spending to take advantage of the opportunity.

Massey expects 2008 metallurgical coal prices to be as much as 17% higher than its previous projections and sees the prices climbing even higher in 2009 and 2010.

Massey said that it is raising its capital spending budget for the year by an additional USD 90 million to accelerate its expansion project, bringing total capital expenditures to around USD 550 million. That includes an investment of about USD 310 million to expand its coal mining operations in Central Appalachia.

Massey also said its Q1 coal production fell about 6% to 9.9 million tons, while shipments for the period fell 3% to 9.6 million tons. Its average produced coal revenue is projected to be between USD 55.50 to USD 56 per ton.

Integrity Metals wins approval to open new yard

It is reported that Integrity Metals Inc a scrap metal recycling firm based in Connerville received approval by the Morristown Planning Commission to build a site in the city. The new yard will be on 15 acre and will include an American Pulverizer auto shredder

The report added that after the Morristown Planning Commission approved the move by Integrity the Commission held an opening for public comments. The final approval for the new facility took place on April 2.

Mr Price Glazer president of Integrity Metals said that the installation of the auto shredder should be complete by next fall, and should allow the company to handle an additional 3,000 to 4,000 tons of scrap metal a month. He added that while the new location will have an auto shredder on site, the new yard will take in both ferrous and nonferrous metals.

According to local press reports planners in the city gave the design plans for the new facility high marks.

Additionally, with continued controversy swirling over the Sturgis Iron auto shredder in Elkhart, Ind., several parties expressed concerns about noise and other pollution factors generated by the shredder. However, Mr Glazer noted that the auto shredder if far smaller than the Sturgis auto shredder.

EPS says Xstrata mine pollution within guidelines

The Environmental Protection Agency said that mining giant Xstrata is operating within the regulatory requirements, even though its Mount Isa facilities are among the nation's largest polluters.

The National Pollutant Inventory this week has identified the north west Queensland operations as being the top emitter of seven substances, including lead and sulfur dioxide.

Mr David Wainwright of EPA's said that the data is an estimate of what is released from the mine's smoke stacks and is not a surprise. He said that "The actual levels don't bear a relationship to what actually people are being exposed to in the community there.”

He added that "There's the process of dilution and dispersion after those substances get emitted from the stacks and it's really the monitoring that takes place on the ground that gives an indication of what the air quality is."

Hsin Kuang Steel revenue jumps in March

Taiwan’s Hsin Kuang Steel Co Ltd reported that March 2008 revenue hit TWD 1.29 billion up by 55.4% YoY as compared to TWD 830 million in 2007. Its revenue in the Q1 totaled TWD 3.11 million up by 49% YoY.

Hsin Kuang Steel reported that as the global steel price has continually risen, China’s Baosteel and Taiwan’s China Steel Corp and Chung Hung Steel have also raised their steel price for March. They also stated that since steel demand is growing ceaselessly, the anticipation is that the steel market will experience continuous activity in the future.

(Sourced from YIEH.com)

Champion Minerals acquires option on Gullbridge property

Champion Minerals Inc announced that the Company has executed a letter of intent with Copper Hill Resources Inc to acquire an interest in the Gullbridge Base Metals Property in the Buchans Mining Camp, Newfoundland.

Pursuant to the letter of intent, Champion has the option to earn a 51% interest in the Property by paying Copper Hill CAD 30,000 over a three year period, issuing common shares of the company as follows, 50,000 common shares within 15 days of signing a definitive option agreement, 100,000 common shares on the first year anniversary of the option deal and 150,000 common shares on the second year anniversary of the option agreement and completing CAD 800,000 in exploration work on the Property over a 3 year period, whereby CAD 200,000 would be required in each of the first two years and CAD 400,000 in exploration work would be required for the third year.

Champion said that it would have a further option to increase its interest to 75% by funding an additional CAD 700,000 in exploration and issuing an additional 150,000 common shares of the company within a further 2 year period. Champion would also have the option to increase its interest to 85% by funding all necessary expenditures to completion of a positive bankable feasibility study.

Metso Minerals to supply a stacker reclaimer to Drax Power

Metso Minerals announced that it will supply a bucket wheel stacker reclaimer to Drax Power Limited at North Yorkshire in the United Kingdom. The delivery will be completed during the last quarter of 2009. The value of the order will not be disclosed.

The order is for the design, supply, installation and commissioning of a bucket wheel stacker reclaimer for handling coal at Drax Power's power station. The equipment will replace the existing bucket wheel stacker reclaimer, which was installed by Metso in 1974. The order includes the dismantling of the current equipment. The new equipment has a stacking capacity of 3000 tons per hour and a reclaiming capacity of 2500 tons per hour and a boom outreach of 38 meters.

The power station of Drax Power Limited is the largest, cleanest and most efficient coal fired power station in the UK and has a total capacity of just under 4000 MW. Drax Power also operates a second bucket wheel stacker reclaimer on the site, which was installed by Metso in 1982.

Metso Minerals is a global supplier of solutions, equipment and services for rock and minerals processing. Its expertise covers the production of aggregates, the processing of ores and industrial minerals, as well as construction and metal recycling.

Rotterdam remains major port for Europe

Rotterdam remains the most important port for intra European transport by ocean going vessel for the 27 EU Member States.

As per report in Rotterdam, 184 million tonnes were handled, almost the same as the previous year, representing 7.4% of the EU total. Antwerp came second with 68 million tonnes, followed closely by Marseilles with 62 million.

The proportion of European cargo handled in Rotterdam is in excess of 50%, with 168 million tonnes coming from or heading for other continents.

Rotterdam is in the lead when it comes to liquid cargo, dry bulk and containers. In roll on roll off, the port failed to make the top 5 in 2006, behind specialists Dover, Calais, Lübeck, Zeebrugge and Immingham. However, this position is within sight for Rotterdam in 2007.

Taiwanese mills plan to raise tube prices in April

After Chung Hung Steel’s price hike announcement, most of the domestic carbon steel pipe mills in Taiwan are set to raise the prices by NTD 3,000 per tonne to NTD 3,500 per tonne.

CHS has increased the prices by around NTD 2,500 per tonne on all products in the domestic market. Therefore, domestic carbon steel pipe mills intend to increase by NTD 4,000 per tonne in considering of CHS’s price rise in April.

Amisco Q1 sales drop by 23.3% YoY

Amisco Industries Ltd announced that it recorded net sales of USD 5.7 million during the Q1 ended March 2008 down by 23.3% YoY from USD 7.5 million in the same period of 2007. It incurred a net loss of USD 72,444 as compared with a net loss of USD 93,424.

Amisco said that in Canada, sales decreased slightly, from USD 2.5 million in the Q1 of 2007 to USD 2.2 million in the first quarter of the current fiscal year. US sales fell 29% from USD 4.9 million in the first quarter of 2007 to USD 3.5 million in the Q1 of the current fiscal year. This sharp decline is due mainly to the real estate crisis in the United States and the reduction in the rate used to convert sales into Canadian dollars.

Gross profit amounted to USD 1.2 million as compared to USD 1.7 million in the Q1 of 2007. Despite its lower sales and the unfavorable exchange rate, the Company posted a gross profit margin of 21.7%, down slightly from 23.2% in the Q1 of 2007.

Amisco Industries Ltd is a North American leader in the design and manufacture of composite painted tubular and steel sheet residential furniture.

Sumitomo Metals expands application environmental initiative

Sumitomo Metal Industries Ltd has included helping to preserve the environment as one of the highest priority management issues in its Medium Term Business Plan.

As per release “Sumitomo Metals has been taking various measures to enhance environmental management and prevent global warming. As one of these measures, the Company started providing environmental household account books to a part of its employees, based on the viewpoint of raising employee awareness regarding the prevention of global warming even at home. Sumitomo Metals will expand this Environmental Household Account Book initiative by including its application to all employees of the Company and Group companies from April 2008.”

The Environmental Household Account Book provides one way to review one's lifestyle. The households which participate in the program find out the amount of CO2 emissions in their home life by recording the consumption of electricity and gas.

Carbon dioxide emissions, which cause global warming, occur in various situations in home life. It is therefore important to reduce CO2 emissions by leading an environmentally conscious energy-saving lifestyle.

Taiwanese flat market quiet

It is reported that Taiwan’s flat market has remained quiet recently, so the price did not rise in an irrational manner. However, since Asian market activity remains on the high side, the imported price is not favorable.

It is reported that South Korea’s CR price to Taiwan is at USD 1,100 per tonne CNF in April or about TWD 33,680 per tonne.

Chung Hung Steel’s CR price is TWD 29,500 per tonne and the market price is at TWD 33,000 per tonne. China was offering a CR price of USD 935 per tonne CNF. Taiwan’s buyers are finding it difficult to accept South Korean prices.

(Sourced from YIEH.com)

Inuit communities receives profit sharing from Xstrata

Xstrata Nickel announced that it has presented a cheque in the amount of CAD 32.6 million to the Makivik Corporation, representing the local Inuit communities’ share of the profits generated in 2007 by the Raglan nickel mine operation located in the Nunavik Territory of Northern Quebec.

This yearly profit sharing is part of the Raglan Agreement, a comprehensive agreement signed on February 28th 1995 with Makivik and local Inuit communities. The agreement supports the harmonized relations and fostering of opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management.

Mr Pita Aatami president of Makivik Corporation said that “This year’s profit sharing will be again put to good use in developing economic and training opportunities, which will contribute to the well being of Inuit communities.”

Mr Ian Pearce CEO of Xstrata Nickel said that “The Raglan Agreement addresses a variety of areas, including preferential hiring of qualified local Inuit personnel and businesses, environmental protection and mitigation, procurement and profit-sharing measures. To date Xstrata Nickel has delivered Cdn$58.6 million back to the community. We are proud of our strong relationship with the local communities and remain committed to fostering effective engagement with all stakeholders.”

Xstrata Nickel’s Raglan mining camp was constructed at a cost of CAD 600 million and began production in 1997. In 2007, capital investments included CAD 48 million to refurbish existing wharf facilities and Cdn$50 million to expand accommodation facilities. Exploration results have confirmed Zone 5-8 as the largest mineralized zone in Raglan’s history, adding an estimated 4.5 million tonnes of inferred resources in 2007.

Raglan consists of three underground and one open pit nickel mines and a concentrator. Approximately 620 employees and 250 contractors work at Raglan. The mine site is linked by all weather roads to an airstrip at Donaldson and to ship loading facilities at Deception Bay.

Queensland to commemorate miners killed on the job

ABC News reported that Queensland state government said that a memorial day will be held to commemorate the 1,450 miners killed in Queensland since the 19th century.

Mr Geoff Wilson mines minister of Queensland said that the miners' memorial day will be held in September, on the anniversary of the Mount Mulligan disaster which killed 75 miners in 1921. He added that it will reflect on those killed in mining accidents, to make people aware of how important mine safety is.

Mr Wilson said that "Mining has helped forge our strong economy here in Queensland, from the gold rush days of the 1800s right up until the multi billion dollar industry that is now powering the state. So while we enjoy the benefits of the resources boom, we should reflect on how we got here and the price that has been paid."

Pacific Steel expanding Yakima facility

Yakima Herald Republic reported that a Montana steel and recycling firm will be expanding its Yakima location, doubling the number of people it employs. The company has outgrown its current facility where it offered only steel services such as custom cut steel for manufacturers.

Pacific Steel & Recycling has started construction of a larger facility in Terrace Heights that includes a new 20,000 square foot steel warehouse and office space, along with a 12,000 square foot building for recycling. Construction of the new facility is expected to be completed by October or November.

Mr Tim Orth manager said that strong demand has made it necessary to increase capacity. The company expects sales to double over the next year. He said "It will make us more efficient," Orth said. "We'll be able to stock more product and serve more people in the area."

Southern to buy 25 million tons of Powder Basin coal in 5 years

Reuters reported that Southern Company Services Inc is offering to buy as much as 25 million tons of US Powder River Basin coal over five years for power plants in Alabama and Georgia.

As per report the deal for 1 million to 5 million tons per year for up to five years from 2009 through 2013 requires coal with sulfur content no greater than 0.6 pounds per million British thermal units. It said that the actual amount of coal to be bought and for exactly how many years will be determined by the buyer after evaluation of bids.

Minimum Btu content was not specified, but the price will depend on the Btu content of coal offered. Most Powder River Basin coals contain 8,000 to 9,000 Btus per pound.

Pipe scrap hitting ship breaking sector in Pakistan

The News reported that the smuggling of scrapped steel pipes from the former Soviet states is damaging the profitability of the Pakistani ship breaking industry and causing revenue loss to the government a growing number of re rolling mills are buying these pipes instead of ship scrap to make mild bars.

As per report, scrapped pipes, locally called Pharra, were used in Soviet era to supply gas and an international network of suppliers that excavates and ships them to regional buyers. These low quality pipes are more than 50 years old and reach Pakistan via Afghanistan.

Mr Azam Malik chairman of Pakistan Ship Breakers Association told The News that the association is planning to arrange a meeting with the new government on the issue of curbing Pharra smuggling in the country.

He said that due to the availability of more ships at the Giddani ship breaking yard these days the prices of rebars has come down to 65,000 per tonne from 75,000 per tonnes in a week or so.

Egypt cuts tariffs and caps price caps to curb steel prices

While Egyptian government passed legislation to amend customs duties and lift tariffs on several foodstuffs as well as cement and steel, experts believe it is a quick fix solution that will only curb soaring prices on a short term basis.

Mr Hosni Mubarak Egyptian President issued a presidential decree amending customs duties on 111 items, in what minister of finance Mr Youssef Botrous Ghali called an attempt to curb the rise in prices of food products and to support the low income population.

Custom duties on cement, steel and some glass products have also been exempted, while duties on coal have been reduced to five percent. Tariffs on products, such as home appliances, medical material and intermediary products have also been cut between 2% and 30%.

As for lifting duty on steel and cement, Cairo brokerage Beltone Financial said that the new legislation would make little difference because these products are still more expensive in the surrounding markets and it would not be more feasible to import after removing tariffs, which had only amounted to around 5%.

Recent reports show that prices of steel have again soared to a range between EGP 5,250 and EGP 5,700 per tonne, with some retailers crossing the EGP 6,000 per tonne mark in Cairo and Alexandria. Cement prices have also been on the rise, climbing to EGP 450 per tonne from EGP 330 in the 3 months from November 2007.

Pakistani cement sales in 9 months up by 25% YoY

Dawn reported that Pakistani cement sales surged by 25% YoY in the July 2007 to March 2008 period as compared with July 2006 to March 2007 period, driven by growing construction demand.

Mr Shahzad Ahmed secretary general of All Pakistan Cement Manufacturers Association said that cement sales during the period totaled 21.9 million tonnes as compared with 17.5 million tonnes.

During the July 2007 to March 2008 period, cement exports from Pakistan jumped by 140% YoY to a record 5.16 million tonnes as compared with 2.15 million tonnes. Pakistani cement manufacturers have capitalized on a shortage in the region and started exporting to India and analysts said they were now looking for new markets.

Karachi Port breaks 15 year old ship handling record

Dawn reported that Karachi Port broke its 15 year old record by handling 215 ships in March 2008. It is the second time that Karachi Port has crossed the figure of 200 ships in a month.

In August 1993, Karachi Port had handled 208 ship arrivals which also included 33 fishing trawlers. However, March 2008 figures do not include arrival of fishing trawlers, but all cargo and container ships.

The container terminals with latest gantry cranes were not there in 1993 and only geared container vessels used to call at Karachi port. With the induction of private sector, arrival of gearless container vessels became possible at the port which resulted in reduced vessel turn around time.

PSM supplies 20 MW power in March 2008

Daily Times reported that Pakistan Steel has supplied 20 MW to KESC in March 2008 from its power generating system.

A Pakistan Steel spokesman said that system improvements were introduced in the company’s electricity generating units, following directions of Mr Muhammad Javed chairman of Pakistan Steel.

The spokesman said that it was after these steps that the Pakistan Steel was able to achieve a target of 75 MW. He added that in February 2008, 7.25 MW was supplied to KESC from the total production of 75.53 MW, while in March 2008, it supplied 20 MW to KESC from its total production of 102MW.

Pakistani inflation at all time high – Report

Business Recorder reported that Pakistan’s inflation has gone up to an all time high mark of 19.83% YoY on the week ended April 3rd 2008 as compared to the week ended April 3rd 2007 due to continuous rise in the prices of essential commodities.

The data released by Federal Bureau of Statistics showed that SPI based inflation, since adjustment of oil prices in March 2008, surged to 19.83% YoY on April 4th 2008 from 12.16% YoY on February 12th 2008, making life harder for the low income group.

Weekly data showed that dearness was 21.44% for families grouped in PKR 3000 monthly income, 21.17% for PKR 3001 to PKR 5000 income, 20.35% for PKR 5001 to PKR 12000 and 18.20% for families with income of PKR 12000.

The prices of 23 essential commodities increased during the week while 11 declined from the list of 53 essential commodities used to measure weekly inflation. The SPI bulletin, based on data of 53 items collected from 17 urban centers, showed no let up for the poor from price hike, who have to spend more money to buy the same good every week.

Mubadala acquires 20% of Shell Algerian operation

Abu Dhabi's state investment arm Mubadala has announced that its energy unit Liwa Energy has bought 20% of Royal Dutch Shell's stake in production and exploration projects in Algeria.

Mubadala said in a statement that "Liwa Energy bought a 20% stake in the projects carried out by Shell's exploration and production in Algeria."

Liwa is a wholly owned subsidiary of Mubadala. Mubadala and Shell agreed in 2005 to work together on energy projects outside the UAE in the Middle East and North Africa. Liwa has bought into 2 production sharing agreements that Shell holds in Algeria. They are production sharing agreements for the Reggane Djebel Hirane and the Zerafa areas.

After the sale, Shell affiliates own 60% of the concessions for the two areas, Sonatrach owns 25% and Liwa owns 15%. The 5 year contract was awarded to Shell in 2005. Mubadala already holds investments in power stations and oil and gas projects in Algeria.

Funds such as Mubadala and the International Petroleum Investment Company are investing the government's windfall oil revenues on international assets as Abu Dhabi looks to diversify its holdings.

CNOOC still keen on developing North Pars gas field – Report

Tehran Times reported that China National Offshore Oil Corporation is still in talks with Iran on joint development of the North Pars gas field in the Persian Gulf.

In February 2008, CNOOC and Iran's Pars Oil and Gas Company were about to sign a final contract, worth about USD 16 billion to develop the gas field. However, the contract signing has been delayed due to international sensitivity, but the two sides are still in talks on the issue.

CNOOC and the Iranian partner signed a memorandum of understanding on North Pars early in 2007. Under the initial agreement, CNOOC was to purchase 10 million tonnes of liquefied natural gas annually from Iran providing the feed for its 3 operational LNG units

IPEDC inks deal with NIDC for Kish gas field drilling project

Tehran Times reported that Iranian Petroleum Engineering & Development Company and the National Iranian Drilling Company has signed a contract for drilling 12 wells in the massive Kish gas field.

Mr Mehdi Bazargan MD of the Iranian Petroleum Engineering & Development Company said that the deal marks the first phase of development in the field which is estimated to have 48 trillion cubic feet of gas and 514 million cubic feet of in situ gas condensates. He added that the first 12 wells will be drilled onshore, with the second phase of 15 test wells to be done offshore.

Mr Heidar Bahmani MD of National Iranian Drilling Company said that it has drilled, repaired and refurbished some 150 rigs in the past Iranian year ended March 20th 2008 saving over USD 1.1 billion.

The National Iranian Oil Company has previously forecast production of 3.5 billion cubic feet a day from the field, with around 75% of all gas reserves thought to be recoverable.

Iran inks EUR 700 million LNG liquification deal

Mehr News Agency reported that Iran has signed a EUR 700 million deal for the liquefaction segment of Iran LNG plant with Chinese and European consortia.

Mr Ali Kheirandish MD of Iran LNG Company said that the value of LNG contract, consisted of 3 packages, is to the tune of USD 4.5 billion. He added that the first LNG project of Iran was divided into 7 packages and the liquefaction contract was the last part of the project that remained unsigned.

Mr Kheirandish said that the division into separate packages was designed to reduce the cost of the project, estimated at USD 4.5 billion, some 40% lower than the figure suggested by Total Corporation. The project has so far progressed by 9 percent, he said and added that the required budget for the project is secured through the Foreign Exchange Fund and financing by the two contracting companies.

The project includes 2 production trains which will be fed 995 million cubic feet per day from phase 12 of the South Pars gas field. It is to yield 10.5 million tonnes per year of LNG.

Iran plans to float shares in Iran LNG and has been talking to Austria’s OMV and other European companies, to make them shareholders in the project in a bid to reduce its financial burden. Iran LNG will also produce propane, butane, gas condensates and sulfur.

Chinese CR export prices climb up by USD 20 last week

It is reported that export offers for Chinese cold rolled coil have remained firm this week but were largely unchanged.

On Shanghai market, 1mm CR sheet by Anshan Steel is being quoted at CNY 6570 per tonne up by CNY 50 per tonne from last Friday and 1mm CR coil by Tangshan steel was at CNY 6400 per tonne.

My Steel said that, in the short term, strength above CNY 6400 per tonne would further bolster the bullish outlook to CNY 6800 per tonne to CNY 7000 per tonne for 1 CR sheet by Anshan Steel.

However export offers for 1mm CRC was raised by USD 10 per tonne to USD 20 tonne to USD 970 per tonne to USD 980 per tonne on FOB basis.

Global long products price may remain firm - CISA

According to Mr Qi Xiangdong the vice executive secretary general of China Iron & Steel Association that that global long products price is rising up firmly and domestic long products price would recover soon.

He outlined three reasons for this forecast

1. The hike of prices of iron ore, coal and coke will seriously restrict the production of medium and small sized companies, which would directly affect the release of long products capacity.

2. China strengthens outdated capacity elimination, so the production scale of long products in medium and small sized companies would be limited.

3. Due to the introduction of export tax on low value added steel products, the export price of long products would be driven up which would boost prices high in both international and domestic market.

Moreover, due to the decline of billet export, billet supply in international market would be tighter. The demand for long products from developing countries and new emerging markets are still strong, as well as the demand in domestic market. The conflict between supply and demand is the key factor boosting long products strong.

Shanxi Taigang SS to establish subsidiary in Shenyang

Shanxi Taigang Stainless Steel Company Ltd announced that it will establish a wholly owned subsidiary, a Shenyang based stainless steel company with a registered capital of CNY 2 million

Shougang to raise long product price in April

China's Shougang Group has announced price increases for its steel long products in April 2008. The prices for wire rod and rebar will be raise by CNY 100 per tonne.

The new price for 6.5mm wire rod now climbs to CNY 4,950 per tonne. Rebar updated prices are shown HRB335 16mm to 25mm at CNY 4,930 per tonne and 12mm to 14mm at CNY 5,080 per tonne.

Chinese utilities squeezed by surging coal prices

It is reported that China’s ever rising coal prices and the stalled government controlled electricity price are putting pressure on power generators, and companies are losing money. The five biggest power producers have been urging an upgrading of the coal electricity linkage policy for some time. The National Development and Reform Commission is said to be studying the question but so far coal goes up while electricity prices remain the same.

While coal prices have been left to market determination, the price of electricity is under strict regulation. Naturally, coal prices have been rising these years. Since the 2002 marketization of coal, the price of coal used to generate electricity has increased from CNY 110 per tonne in 2002 to nearly CNY 950 now and in some regions, the price has reached CNY 1000 per tonne. Taiyuan’s coal companies, affected by the price hike of raw materials and the shortage of supply, have increased their coke prices by CNY 100 to CNY 200 per tonne. Many miners are now selling their first level coke at over CNY 2000 per tonne.

Mr Lu Qizhou general manager of China Power Investment Corporation said that the company’s price for coal increased CNY 35 per tonne on average in 2007, and in some regions, the price increased CNY 65 per tonne, resulting in a CNY 1.968 billion rise in annual production costs. According to contracts with coal companies this year, the price of coal will rise another CNY 40.12 per tonne, bringing an energy cost increase of more than CNY 4 billion. China Power Investment Corporation’s 2007 annual profit was CNY 4.5 billion.

Ms Li Xiaolin general manager of China Power International Development claims that coal and electricity use, the construction of power plants and the allocation of coal resources have not been optimized. She suggests that the government should try to create a harmonious and healthy environment in the coal and electricity sector by paying special attention to financial resources and market entry threshold, encouraging collaboration between the two industries, and increasing the amount of electricity produced from coal per unit.

Currently the five biggest power producers, including big regional power plants, have sped up their collaboration with coal enterprises. Most of them have become coal firm shareholders, but as coal prices rise, acquisition will become the focus of some power producers, starting with relatively small coal operations.

Mr Wang Yonggan general secretary of the China Electricity Council said “The coal price has increased 8.9% this year, further narrowing margins for power producers. In recent years, profit growth in the electricity industry has lagged behind that of industrial enterprises. This year, the increase is predicted to be 20%, below the 38% level of other industrial firms.”

According to the coal electricity linkage policy, if average coal prices rise more than 5% in 6 months, electricity prices will be adjusted accordingly. By the end of 2007, the price of coal in the National Coal and Coke Trade Fair had increased by more than 10%, and the coal used for generating electricity by CNY 30 to CNY 40, adding around CNY 42 billion to power producers’ costs. Analysts have calculated that the increased cost could be absorbed by an increase of only CNY 0.02 per KWH in the electricity price. But prices have not been allowed to rise

China cheats and Pennsylvania losses - AMM

Alliance for American Manufacturing announced last month end that a new analysis found that the US trade deficit with China has taken a surprising toll on Pennsylvania workers with annual job losses in Pennsylvania due to trade with China average three times higher than losses discussed by some of the presidential candidates and attributed to NAFTA.

AAM’s analysis of Economic Policy Institute data found that Pennsylvania lost 78,200 jobs from 2001-2006 of all sectors as a result of the US trade deficit with China. That works out to an average of 15,640 lost jobs per year. Using an identical analysis, AAM found that Pennsylvania lost 44,173 jobs from 1993-2004 of all sectors as a result of NAFTA, for an average of 4,016 jobs lost per year.

Mr Scott Paul director of AAM said that “In just a few short years, tens of thousands of Pennsylvania jobs have been shipped to China. The presidential candidates are rightly concerned about the potentially damaging effects of unfair trade and they need to focus more attention on our record trade deficits with China, which have cost us more than 1.8 million jobs since 2001. Vigorous enforcement of our trade laws will ensure American workers and companies have the chance to compete in a fair global market. We call on the presidential candidates to make this commitment to the voters of Pennsylvania.”

Mr Paul added that “China cheats and Pennsylvania loses.”

The Alliance for American Manufacturing is a unique non-partisan, non-profit partnership forged to strengthen manufacturing in the US. AAM brings together a select group of America’s leading manufacturers and the United Steelworkers to promote creative policy solutions on priorities such as international trade, energy security, health care, retirement security, currency manipulation, and other issues of mutual concern.

A state by state breakout of U.S. jobs lost to China is available at: www.americanmanufacturing.org/inyourstate/

Chinese pig iron market to continue uptrend in April

It is reported that Chinese Domestic pig iron market will restart the uptrend in April, following modest downswings in mid March.

After announcement of iron ore benchmark prices in February, EXW price for pig iron increased by CNY 200 per tonne to CNY 300 per tonne within a short time, but slid in mid March by CNY 50 per tonne to CNY 100 per tonne in most regions.

In April pig iron price will resume uptrend, owing to the following reasons

1. 65% iron ore price advance will be implemented
EXW prices for steel products will rise by different ranges. Despite notable upswings in previous period, too swift price growth resulted in suffocated demand in end market and steel market began to dive in mid Mar. As iron ore price hike will come into effect, pig iron price advance will be passed on to steel price rises.

2, Production costs for pig iron keep increasing.
Coke price will gain RMB100-150/ton in Northeast China and Shanxi from today, inevitably arousing coke price increases in other regions. Besides, on account of the implementation of the 65% rise for contracted iron ore, ore price will possibly firm up or even rebound. Production costs will climb further, and iron markers can hammer out price hikes at any time.

3. Reviving steel market provides opportunities and space for pig iron price advance
Steel market has stopped declining and began to recover during the past week. Prices for wire rod and rebar jump in most regions during recent days. Steel stocks in Shanghai, Nanjing and so on have fallen dramatically. Steel market is expected to further more upwards in Apr since booming season has come for steel consumption in both northern and southern regions. Up going steel market promises possible price hikes for pig iron market.

(Sourced from MySteel.net)

Rio Tinto sponsors Royal Ballet Tour to China 2008

Mr Tony Hall CEO of the Royal Opera House announced at a press conference in China that The Royal Ballet Tour to China 2008 is to be generously supported by Rio Tinto.

Mr Paul Skinner chairman of Rio Tinto said that "China's economy is expanding rapidly and it is an increasingly important consumer of the metals and minerals we produce. We hope to forge even closer ties with China by helping to make the tour possible and bringing this outstanding company to Chinese audiences. This is a particularly prestigious and important tour as it coincides with the Beijing Cultural Festival."

The Royal Ballet returns to China this summer for the first time in nearly ten years and embarks on a five week tour to Beijing, Shanghai and Hong Kong. The Royal Ballet will perform at the new National Centre for the Performing Arts in Beijing,

China to pledge USD 50 billion in investment in Nigeria

Bloomberg Cited Mr Shamsuddeen Usman Finance Minister of Nigeria as saying that a Chinese delegation will visit Nigeria next month to pledge as much as USD 50 billion in investment for the African nation's infrastructure. He said the delegation is coming in the first week of April with a very comprehensive package for the power industry.

Mr Usman said “What this economy needs is a massive investment and some European countries were also planning to invest. He didn't give details. Nigeria needs to add 50,000 megawatts of generating capacity over the next 10 years, compared with the 3,000 megawatts it currently produces.”

Nigeria, Africa's largest oil producer and most populous nation is facing an energy crisis resulting in prolonged power outages and fuel shortages because of inadequate investment in infrastructure.

Chinese silicon manganese export in February 2008

According to the recently released information by Chinese custom authorities, Chinese silicon-manganese export during February 2008 amounted to 38,232 tonnes.

In tonnes

Lingang develops special steel for nuclear power plants

It is reported that Tisco Group Lingang Company has successfully developed Z2CN18-10 grade of steel for nuclear power plants thus breaking dependence on imports.

To product Z2CN18-10 nuclear power steel, the company was in accordance with the international standard quality system, made a tight production scheme. After the assessment from experts, the product fully accord with the French nuclear power steel testing requirements.

As per report, Z2CN18-10 nuclear power steel belongs to high end stainless products, it has special requirements on the performance, nondestructive, testing, packaging etc.

In recent years, Tisco Group Lingang Company continually optimized the products structure, and fully excavated the advanced equipment’s potential of 3300mm medium plate production line, heat treatment pickling line.

Major wind power plant to complete construction in August

Xinhua reported that the country's third largest wind power farm should be completed by August. The farm, in China's eastern Zhejiang Province, in coastal Daishan County, uses Danish technology but is being built for the provincial government by a Chinese firm.

The project, with 48 windmills in three wind farms, will produce an estimated annual capacity of 40.8 MWfor the booming province, 13.6% of the total of the famous Qingshan Nuclear Power Station. The farm will produce the same amount of energy as 31,285 tonnes of coal in thermal power plants.

Mr Xu Jie project's construction manager said "With nine 81 meter high rotors set up, the construction work will be finished in August and begin generating electricity by the end of the year."

Mr Peter Matheasbn engineer in charge of setting up the Denmark imported equipment told Xinhua that the only thing holding back the construction is the sometimes very windy weather, which also has its advantages.

Officials explained that the wind power plant is expected to alleviate power shortages with zero greenhouse gas emission, echoing the government's push to develop eco friendly renewable energy, backed by the renewable energy law passed in 2006.

Shanghai becomes second largest container port in the world

It is reported that Shanghai has leapt over Hong Kong to become the world's second busiest container port with 26.15 million TEUs crossing its wharves last year. Hong Kong handled 23.99 million boxes.

The Yangtze River Delta port remains behind Singapore which handled 27.9 million containers in 2007. However, significant expansion at Shanghai's giant Yangshan port complex means its move into number one spot is a matter of time.

The 20.4% increase in throughput helped Shanghai International Port grow its net profit by 22.75% to USD 518.77 million. Cargo volume handled stood at 353 million tonnes up by 13.1% while operating revenue rose 27.6% to USD 2.32 billion.

The port expects container throughput to reach 30 million TEUs this year, although concerns have been raised by the National Reform and Development Commission.

Chinese billets and slabs import in February 2008

According to the recently released information by Chinese custom authorities, Chinese billet/slab import during February 2008 amounted to 15,136 tonnes.

In tonnes

Price of imported pellet at Urumqi up greatly

It is learned from Urumqi Customs that the price of pellet recently rose to USD 130 per tonne from the original USD 103 per tonne, increased by nearly 50% YoY than the same period of last year.

Customs person analyzed that the iron ore price hike earlier was the main reason to bring pellet price soaring this time.

Chung Hung Steel to raise plate price

Chung Hung Steel announced that they plan to raise prices of domestic and export products for April to May 2008. They will raise the agreement price of HR coil, CR coil and coated sheet for April for USD 83 per tonne and at the same time they will raise export price of plate products for April and May for USD 120 to USD 150 per tonne.

After the price uplifting, ex work price of hot rolled coil in domestic market of Chung Hung Steel in April will be NTD 26.5 thousand to NTD 27,000 per tonne, NTD 28,500 to NTD 29,000 per tonne for CR coil, and NTD 32,000 to NTD 32,500 per tonne for CR galvanized coil plates.

The local traders said the turnover in this quarter dropped by around 28% than the same period of last year. Some said the client who wants to purchase extra steel should pay the additional fee. Also one trader said the additional fee of cold rolled coil will be NTD 4500 per tonne. The new export price will be announced at the beginning of April.

Steel laden MV Bright Ace collides off South Korea

UPI reported that crews searched Saturday for five sailors whose Chinese fishing boat collided with a cargo ship off the shores of South Korea and sank.

Xinhua reported at least seven crew members were aboard the fishing boat when it hit the South Korean cargo ship "Bright Ace" Saturday near the South Korean island of Mara. The cargo ship had 6,000 tonnes of steel aboard when it left Masan Port late Thursday for Singapore.

Two crew members from the fishing boat reportedly were rescued by workers on the cargo ship.

BNP Paribas and Societe Generale to lead NLMK loan syndicate

Interfax reported that BNP Paribas and Societe Generale will arrange a syndicated loan of USD 1.5 billion loan for Novolipetsk Steel to refinance the debt of the Maxi Steel Group and for general corporate purposes.

A source in banking circles told Interfax that the syndicate has been joined by ABN Amro, Bank of Tokyo - Mitsubishi, UFG, Deutsche Bank, Fortis, SMBC, UniCredit and KBC and the syndication would be launched soon.

NLMK bought 50% plus one share in Maxi Group, a steel mini mill developer from the Sverdlovsk Region, for USD 600 million at the end of last year and has filed with the Federal Antimonopoly Service for clearance to buy the group's remaining shares from the group's founder Mr Nikolai Maximov.

Ukrainian coke output in Q1 up by 8.4% YoY

Ukrainian Journal reported that Ukraine increased production of 6% moisture metallurgical coke in the first quarter of 2008 by 8.4% YoY to 5.31 million tonnes.

Tangrong passes TUV NORD audit

It is reported that Taganrog Metallurgical Plant, a subsidiary Pipe Metallurgical Company, has successfully passed the annual surveillance audit firm TUV NORD.

Following the audit, seamless and welded pipes Taganrog Metallurgical Plant deemed compliant following European standards: DIN EN 10210, DIN EN 10216, DIN EN 10240, DIN EN 10255.

In addition, the audit found that testing samples of seamless and welded pipe factory in the central laboratory in line with international requirements. Specialists firm TUV NORD recognized all the samples tested tubes compliant with European standards.

Inprom to issue promissory notes for RUB 1.5 billion

Inprom announced plans to issue in 2008 promissory notes totaling RUB 1.5 billion. The proceeds are to be used for financing working capital.

A return on the three and six month notes will be set in the range between 10.5 % and 12% in Q2 of 2008 and further adjusted depending on the situation on the financial market.

Veles Capital Investment Company is the organizer of the issue.

Russian Coal wins rights to Rostov coal property

Interfax reported that Russian Coal won auction for the rights to the Zamchalovsky-Yuzhny coal block in the Rostov region with a bid of RUB 44 million, one bidding increment above the starting price of RUB 40 million.

A source at the natural resources department for the Southern Federal District told Interfax that the winner will get a 20 year exploration and mining license to the property, which is located in the Krasnosulinsky district and has reserves of 11.9 million tonnes of coal.

Russian Coal's coal mining assets include Gukovugol in the Rostov region; the Yevtinsky, Zadubrovsky and Belorussky open-pit mines and Leninskoye mine administration in the Kemerovo region; the Stepnoi pit in Khakasia; and Amur Coal in the Amur region.

India signs oil and gas deal with Turkmenistan

RIA Novosti reported that India signed a MoU on oil and gas with Turkmenistan in a bid to open up Indian companies' access to the Central Asian country's rich reserves.

The agreement was signed after a meeting between Mr Hamid Ansari vice president of Indian and Mr Tachberdy Tagiyev Turkmen Deputy Prime Minister for Oil and Gas.

A source in India's oil ministry told RIA Novosti "This agreement will open the doors for Indian investment in Turkmenistan."

The deal foresees bilateral cooperation in production, processing, and transport of hydrocarbons, including the possible construction of a liquefied natural gas processing facility.

Kazakhs eying stake in Arkhangelsk Port

It is reported that Mr Yuri DEmochkin GD of MIK Severo Zadap during the conference “Russian Ports: investment opportunities and financing strategies” said that Kazakhstan has reached preliminary consent on participation in a project of a new deepwater port in Arkhangelsk. It was not said what way will Kazakhstan participate in the project through the state structure or private one.

As per report due to the project the port will be able to handel ships up to 70,000 DWT and the capacity of the port will total 30 million tonnes per year with investment of about RUB 50 billion. It is schedule to realize the project within 5 years.

According to Mr Viktor Galakhov deputy director of the head of the Arkhangelsk region transport and communication department, currently technical and economic feasibility study for the project is being prepared. There is also a possibility to apply for establishing a special port economic zone there.

The operator of the project is MIK Severo-Zadap-Prikamie established by the administrations of Komi, Permsky kray, the Arkhangelsk region and some unnamed private companies.

RZD forecasts the drop in energy consumption

It is reported that Russian railways estimates that the specific fuel and energy consumption in 2008 would go down by 15% and 11% respectively. It would be achieved due to the usage of the gas engine fuel, gas turbine engines.

As per report, to provide the energy efficiency the investment project on the introduction of saving technologies will be realized.

RZHD is one of the largest energy consumers in Russia.

Gazprom takes 19th place on 2008 Forbes top 2000 companies

RIA Novosti reported that Russian energy giant Gazprom took 19th place in the 2008 list of the world's top 2000 companies compiled by US magazine Forbes.

LUKoil, Russia's largest independent oil producer is the second Russian company after Gazprom. There are 29 Russian businesses on the list in all. LUKoil is followed by electricity monopoly Unified Energy System of Russia the country's largest state owned bank Sberbank and the state-owned oil company Rosneft.

Forbes ranked each company according to sales, profits, assets and market value.

The publication said the 2008 list includes companies from 60 countries, employing a total of 72 million people. The United States has the most number of listed companies although 61 US companies are missing from the 2008 rankings compared with 2007. The list also shows the increasing role of Chinese, Indian and Brazilian businesses. The number of Indian companies almost doubled to 48 against the 2004 ranking.

The world's top three companies are Britain's banking group HSBC, US General Electric and the Bank of America. It ranks fifth on the Forbes list for market value with USD 306.79 billion.

RZD export cargo handling through ports of Russia, CIS and Baltic up by 4% YoY

It is reported that in 2007, transportation of export cargo by Russian Railways through the ports of CIS and Baltic states grew by 4% YoY to 256 million tonnes. Export through Russian ports accounted for 69% of all export cargo through the ports of Baltic state down by19%, ports of Ukraine down by 12%.

In 2007, shipment of import cargo from the ports of Russia, CIS and Baltic states amounted to 13 million tonnes up by 38% YoY. In Russian ports shipment of import cargo grew by 37%, in Ukrainian down by 73% in the ports of Baltic state down by 19%.

Transportation of transit cargo to the ports of Russia, CIS and Baltic states grew by 30% to 15.6 million tonnes. Transportation of transit cargo to the ports of Ukraine grew 1.8 times, to the ports of Baltic state down by 21%. Transportation of transit cargo through the ports of Russia fell by 5%.

Gazprom reviews progress in Hungary

It is reported that Gazprom Headquarters hosted a working meeting between Mr Alexey Miller chairman of the Company’s Management Committee and Mr Zsolt Hernadi director general & CEO of Hungarian oil and gas company MOL.

As per report the parties addressed the progress with the joint construction of UGS facilities in Hungary as well as the outlook for cooperation in the gas sector with regard of the intergovernmental agreements signed in relation to the South Stream project and the growing role of Hungary as a major gas transmission hub in Europe.

Gazprom to boost gas supplies to Europe

Mr Alexander Medvedev deputy CEO of the Russian energy holding said during a conference on energy security in Europe that Gazprom's management believes that the company will be able to export 250 billion cubic meters of gas before 2020. He pointed out that, under existing agreements, Gazprom's share in gas exports to Europe could go up from 26% to 33%.

Mr Medvedev also noted that it was not logical for the company to switch to setting the price for supplies under long-term contracts on the basis of the market price. He explained that situations similar to the gas crisis with Ukraine could result in speculative play and, therefore, speculative prices on gas.

Mr Medvedev also stated that in the long term only Russia, Iran and Qatar could secure the growing demand for gas in Europe, and, therefore, gas supplies could not be diversified.

LUKoil plans to increase oil output by 2% in 2008

RIA Novosti cited Mr Vagit Alekperov CEO of LUKoil as saying that LUKoil plans to increase oil output by 1.8% to 2% in 2008. He said that his company would increase oil output by 1.8% to 2%, excluding new acquisitions.

Mr Alekperov while addressing at a conference held by the Russian presidential envoy to the Northwest Federal District said that LUKoil had opened 21 deposits in the region in 2000 to 2007 and would commission 60 oil and gas fields in the region by 2020.

Mr Ravil Maganov executive vice president of LUKoil said LUKoil planned to invest around RUB 28 billion in geological exploration in northwest Russia by 2017.

LUKoil plans to produce 260 million tons of oil in the region by 2017.

OGK-2's net profit in 2007 down by 73% YoY

RIA Novosti reported that Russian wholesale generating company OGK-2 2007 net profit calculated to Russian Accounting Standards down by 73% YoY to RUB 39.3 million.

OGK-2’s sales reached RUB 33.8 billion in 2007, four times as much as in 2006. According to its business plan, it expects a net profit of RUB 694.7 million in 2008.

OGK-2, established in 2005 as part of the restructuring of Russia's electric power sector, operates five hydropower plants in different Russian regions. The generating company currently has a charter capital of RUB 26.5 billion

Itera's RAS net profit in 2007 up by 24% YoY

RIA Novosti reported that Russian independent natural gas producer Itera for 2007 net profit calculated to Russian Accounting Standards up by 23.7% YoY to RUB 2.9 billion. Itera's sales also increased 23.7% YoY to RUB 29.7 billion in 2007.

The Itera oil and gas company is currently developing natural gas production in the Yamal-Nenets Autonomous Area in West Siberia. The Sverdlovsk Region in the south Urals is Itera's major gas consumer.