SAIL RMD developing railway siding at Chiria mines

FE reported that Steel Authority of India Limited’s Raw Materials Division of 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. This will reduce loading time by up to 40%.

SAIL 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.

Update on performance of major ports in India in 2007-08

As per available reports, the traffic handled by India’s major ports has increased substantially during 2007-08. In 2007-08, the 12 major ports handled a total of 519 million tonnes of cargo up by 12% YoY over 463 million tonnes handled in 2006-07.

The ports also surpassed the target of 515 million tonnes set up the shipping ministry by 0.75% for 2007-08. Incidentally, all the ports achieved positive growth during the fiscal, with 6 ports achieving double-digit growth.

Kandla emerged as the largest cargo handling port in 2007-08 with a handling of 64.89 million tonnes up by 22.48% YoY. It overtook marginally the Visakhapatnam port, which had the record of being on top for 8 years in succession.

In million tonnes

Indian auto majors firms meet alloy steel producers on price issue – Report

BL reported that, faced with the imminent possibility of another round of price hike in the automobile sector, India’s top automobile manufacturers met major India steel producers to hammer out a reasonable contractual price for the April to June 2008 quarter.

The meeting was attended by representatives from TATA Motors, Mahindra &Mahindra, Ashok Leyland, Eicher Motors and Hero Honda amongst others and some automotive component manufacturers were also present in the meeting.

An industry official said that "This kind of a price increase will lead to the de growth of the entire automobile industry. The two wheeler industry has already been declining due to restricted financing. With rising steel costs, there will be a limit to which the market will be able to absorb the hike and consequently the bottom lines of automobile companies would get eroded." The official cited that the sharp price increase in the domestic steel prices at a time when the prices in Russia and China are comparatively lower would make India made vehicles uncompetitive in the overseas market.

According to official figures made available by Joint Plant Committee of union steel ministry, the bench mark 2mm hot rolled steel, which is the raw material for manufacturing various auto grade steel, has gone up by around INR 10,000 per tonne in the spot market between March 1st 2008 and April 1st 2008.

Last week, Automotive Component Manufacturers Association of India had also sought government intervention stating the need to control prices in the absence of which the industry would be rendered uncompetitive both in the export market. Officials at Automotive Component Manufacturers Association of India said that "Most auto component manufacturers are almost completely dependant on steel raw material for manufacturing high tech and safety critical components transmissions, engine and engine parts, steering gears, suspensions as well as a host of sheet metal parts that are used in vehicle bodies and chassis."

Mr Jitin Prasada assumes charge of minister of state for steel

The newly inducted minister of state for steel Mr Jitin Prasada has formally taking over charge.

Elected to the Lok Sabha from the Shahjahanpur constituency in Uttar Pradesh, Mr Prasada is one of the youngest to be included in the council of ministers. Born in 1973, Mr Prasada, an MBA, was educated at Sri Ram College of Commerce and IMI Delhi. He is a member of the Parliamentary Consultative Committee of the Civil Aviation Ministry and Committee on Petitions and Committee on Information Technology and Communications.

He told newsmen that the rise in the prices of steel is a matter of concern. He said “Demand is rising and there is a shortage in supply. The government will do everything to protect the interest of the poor and ordinary people.”

Indian Railways to procure 20,000 wagons

PTI reported that Indian Railways is going ahead with their plan to procure 20,000 wagons during current financial year 2008-09.

Mr KC Jena chairman of railway board said that "Indian Railways will procure a record 20,000 wagons during 2008-09 to meet the shortage of wagons during the peak time demand."

He added that a key concern of the customers regarding the inability of Indian Railways to meet peak time demand during January to March 2008 period due to shortage of wagons is being addressed in the coming years. Besides, rolling stock with higher capacity is also being inducted.

Mr Jena said that induction of 250 diesel locomotives and 220 electric locomotives has been planned for the next year and process has also been initiated for procurement of high horse power locomotives through JV route.

In order to encourage private investment in procurement of wagons and development of freight terminals, Indian Railways are initiating various schemes including liberalized wagon investment scheme, wagon leasing scheme and terminal development scheme. Indian Railways are also planning to develop multi logistic parks to cater to freight traffic requirements.

Indian power capacity addition falls short of target – Report

BS reported that the capacity addition during 2007-08 of 9,263 MW is a little over half the target of about 17,000 MW and like the previous years, power ministry officials blamed delays in equipment supply. This is even lower than the 10,000 Mw announced by Mr P Chidambaram union finance minister in his budget speech in February 2008.

According to latest data, the average energy shortfall went up to 13.4% in February 2008 as against 12.8% in January 2008. Peak power deficit in February 2008, though, was 17.1%, the same as in January 2008.

Mr MS Verma member of Central Electricity Authority said that "I think we are better placed this year. The main reason for this confidence is the increase in equipment production capacity. This year, the main equipment supplier, Bharat Heavy Electricals Limited, has expanded capacity to 10,000 MW per annum from January 2008 from 7,000 MW at the beginning of the last financial year. It plans to further expand it to 15,000 MW per annum in the next 2 years."

Mr Verma said that "We will be adding about 12,500 MW capacity in 2008. About 16,500 MW will be added in the next 2 years and 23,500 MW is projected to be added in the last year of the Plan."

According to the 11th Plan document, about USD 20 billion was to be invested in the power sector in the first year of the Plan. Most economists guesstimate that the investment target is unlikely to have been met given the poor capacity addition, though the final numbers will only be available with a time lag. If the performance in the first year of the 11th Plan sets the tempo for the rest of the plan period, India is headed for even higher power shortages in the coming months and years.

Indian Railways target 1,100 million tonne freight for 11th Plan

Mr KC Jena chairman of railway board said that Indian Railways have set a target of carrying 850 million tonnes of freight in 2008-09, going up to 1,100 million tonnes by the last year of the 11th Five Year Plan.

He informed that Indian Railways has already shown record loading of 794 million tonnes freight in the financial year 2007-08. Mr Jena said that "This exceeds the initial budgeted target of 785 million tonnes as well as the revised target of 790 million tonnes. With this, India Railways have achieved a growth rate of 9% YoY as compared to the previous year. Indian Railways have also simultaneously achieved the highest ever incremental loading during a single financial year to the tune of 65.59 million tonnes, beating the previous year’s record of 64.61 million tonnes."

Claiming that in the period between 2003-04 and 2007-08, average growth in freight loading was to the tune of 10.56% per annum, he said that this was all the more spectacular considering the normally long gestation periods in infrastructure sectors like the railways.

Mr Jena stressed that coal remained the backbone of Indian Railways’ loading revenue and constituted 42.4% of the total loading revenue. It grew by 7.47% YoY in 2007. But the highest growth took place in the loading of iron ore, which went up by 19% YoY.

He said similarly, there was growth in the loading of petroleum oil lubricant products. He added that "In the last 4 years, POL loading has been growing at a steady rate of 3.34%. Investments on the eastern and western dedicated freight corridors will commence shortly."

He further added that Japanese investment for the western corridor was likely to arrive in the latter half of 2009. He said "For the eastern corridor which is being developed with World Bank funding it may happen earlier."

NTPC to form 50:50 JV with UPRVUNL for power plant

National Thermal Power Corporation Limited recently announced that it has formed a 50:50 JV company with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited under the name Meja Urja Nigam Private Limited on April 2nd 2008 for setting up a power plant of 1320 MW at Meja Tehsil or any other suitable site in Allahabad district in the state of Uttar Pradesh.

Rathi Ispat goes to BIFR

Rathi Ispat Limited has informed BSE that due to erode of net worth, it has made a reference before BIFR under the provision of Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

It said “Further to earlier announcement dated March 13th 2008 under Regulation 7(3) of SEBI (Substantial Acquisition of shares and Takeover) Regulations, 1997 it has informed that BIFR on dated March 10th 2008 has given direction to Punjab National Bank not to sale or transfer such 8.01% equity shares of the company without order of BIFR.”

Bengal CM dedicates 900 MW hydel project

Mr Buddhadeb Bhattacharjee chief minister of West Bengal has on the weekend dedicated 900 MW pump storage hydel power project at Ayodhya Hills in Purulia to the state.

The 900 MW and INR 2,953 crore project, funded by Japan Bank of International Co operation, became operational between October 2007 and January 2008 helping the state power utilities to run at high plant load factor during non peak hours and maintaining the grid stability. The projects uses 1100 MW power to pump water on the storage tank at the hill top during the non peak hours followed by production of hydel power during the peak hours.

The project, therefore, will correct the basic imbalance in the system and will make profit by selling high cost power during the peak hours. Purulia pump storage project was conceived in 1978. The detailed project report was prepared in 1992.

BHEL secures orders for two power plants in Chhattisgarh

IANS reported that Chhattisgarh State Electricity Board has issued an order to Bharat Heavy Electricals Limited to install 2 thermal power plants in the state. Mr Vijay Mishra spokesman of CSEB said that "Mr Rajib Ranjan chairman of CSEB has issued an order to BHEL for construction of coal fired 500 MW Korba West power plants in Korba district and another 1,000 MW at Madwa in Janjgir district."

He added that the deal with BHEL was clinched after meetings with officials of the company after they agreed to charge the lowest ever construction rate of INR 19.6 million per MW. Mr Mishra said that CSEB has set a deadline of 42 months for BHEL to complete the construction at both plants. The plants will come up in state's northern region having almost 18% of India's coal deposits.

Mr Rajib Ranjan said that "The negotiation over the cost was completed in record 34 days no parley had been concluded in such a short time. The lowest rate for any power project in India could be achieved following the successful outcome of a series of meetings with the senior officials of BHEL and Central Electricity Authority."

It may be noted that Chhattisgarh power consumption was about 900 MW when the state came into existence in November 2000. It has now gone up to 2,400 MW during peak hours. The CSEB generates 1,923 MW. The rest is purchased from private players and drawn from the central pool. CSEB has recently awarded the letter of intent to Indiabulls Power Generation Limited to set up 1,600 MW Bhaiyathan thermal power project.

UK fund manager New Star ties up with TATA Group

PTI reported that British fund manager New Star Asset Management has entered into a JV with TATA Group that will see the two companies launch an Indian equity fund for UK investors later in 2008.

The fund will be run for New Star by TATA's investment division, TATA Asset Management, which currently has around 6 billion dollars in assets under management. The India fund will be New Star's second foray into global emerging markets following the launch of its Heart of Africa fund in November 2007.

Mr John Duffield chairman & founder of New Star said that "TATA Asset Management's investment expertise in India is second to none. Its competitive advantage, combined with New Star's expertise in the UK, makes for a compelling investment proposition in what is one of the world's most exciting growth markets."

Mr Duffield said that the JV with TATA deal was compelling but admitted he was late into India. He added that "The attraction for us is enormous. TATA is the greatest name in India and this deal offers quality and time. If we had done it on our own it would have taken ten years to get to where we are now. With hindsight I wish we had done it years ago but its better late than never."

Mr Farrokh Kavarana of TATA said that "Earlier in 2008 we made the strategic decision to make our fund management available to UK investors and we are very pleased to be doing so in partnership with New Star."

JSPL goes to Nepalese Supreme Court over hydel project

IANS reported that Nepal’s hydro power sector, mired in allegations of corruption, is caught up in a legal tangle as Jindal Steel & Power Limited has filed a case in Nepal Supreme Court against an Indian public sector undertaking that outbid it. . It has asked for a stay on the awarding of the contract to Sutlej Jal Vidyut Nigam as well as an order to include it in the selection process.

Responding to the petition, the apex court has asked the government to appear before it on April 23rd 2008 and show cause why the contract was awarded to the Indian PSU Sutlej Jal Vidyut Nigam.

As per report, JSPL has gone to court over the 402 MW Arun III hydropower project that was recently awarded to the Sutlej Jal Vidyut Nigam, in which India’s Himachal Pradesh government has a stake along with the Indian government.

9 companies had bid for the project with Sutlej Jal Vidyut Nigam finally wrapping up the contract after almost three months of negotiations. In the beginning, Sutlej had offered to give Nepal 4.5% free energy but later hiked it up to nearly 22%. The report said that JSPL has questioned the award as its initial offer was at 21%.

This is the second petition in the Supreme Court involving Arun III. In March 2008, a group of Nepali filed public interest litigation against the award of the contract to Sutlej Jal Vidyut Nigam. The petitioners are urging the court to order the government to discuss the project in parliament first since it relates to Nepal’s natural resources.

SC upholds ST penalty on Bharjatiya Steel

It is reported that Supreme Court has upheld the penalty imposed on Bharjatiya Steel Industries by the Uttar Pradesh commissioner of sales tax for buying iron scrap from the railways at a public auction at concessional rate of tax and then selling it to another person.

Bharjatiya Steel Industries is a manufacturer of steel ingots and it used 90% of the steel scrap for manufacturing purposes by melting and converting them into finished products. The rest of the scrap, weighing 2,533 tonnes, was sold without informing the assessing authority.

Therefore, the authority imposed a penalty for illegally selling the scrap. It argued that what was sold was worthless and it could not find the quality of the material as the auction was on as is where is basis.

However, the second buyer manufactured goods from the rejects. Therefore, the sale was done with a guilty mind, the Supreme Court said, justifying the penalty.

Chennai Port Trust to construct mega container terminal

PTI reported that Chennai Port Trust would construct a mega container terminal to handle 5 million TEUS and 500,000 cars at a cost of INR 3,100 crore.

Mr K Suresh chairman of Chennai Port Trust said that the centre had given in principle approval for the project and the union environmental ministry had also cleared the project. He added that the project would come under the build, operate and transfer scheme.

Chennai Port Trust had earned a profit of INR 257.55 crore for the fiscal ending March 31st 2008 as against INR 196.98 crore for the 2007 fiscal. It registered a 7% YoY hike in cargo handling and 27.41% YoY hike in containers handling.

BSL bottom line to remain intact - MD

Mr Neeraj Singal MD of Bhushan Steel & Strips informs that it is going to rollback between INR 500 to INR 1,000 on the corrugated galvanized sheets but it will not have a very big impact on the bottom line.

Mr Singal said that "The major impact is coming on the long product which is the TMT bars where the prices are likely to go down by INR 2,000 and primarily it is being done by TATA Steel, SAIL and RINL. As far as our product range is concerned, which is primarily flat product, we are going to rollback between INR 500 to INR 1,000 on the corrugated galvanized sheets, so I do not think it will have a very big impact on our bottom line."

He said "We had a meeting with the government recently, it was agreed that the HR coil prices would not be increased for April 2008, so by having a INR 500 to INR 1,000 rollback on the corrugated sheets, it will not have a major impact, maybe it should be a 0.02% or a 0.03%, because the corrugated sheets is a very small percentage of our total product line."

Mr Singal further added that "Definitely the raw material prices and the coal prices have gone up, but since the inflation is high and at the moment it’s too much of a pressure on the government, we may hold up the prices for maybe one month but it cannot hold for a very long time. Regarding the cold rolled and galvanized business, if there is a hot rolled price increase, we have to pass it on to the customers, and the other integrated plant where we are making the billets, where we have iron ore and coal, if the prices of iron ore has to be factored in INR 3,000 to INR 4,000 then the price increase is required."

Centre to increase steel allocation for SMEs by 20% - Report

It is reported that in the high profile meeting between the steel secretary and top steel producers last week, government has increased the allocation of steel for small & medium enterprises by 20% to 6 million tonnes.

Hero Group cancels JV plan with UK's Ultra Motor

ET reported that the proposed JV between Hero Group and UK’s electric vehicle firm Ultra Motor for electric 2 wheelers is off as the two have decided to part ways within a year of launching co branded scooters and bikes in India. While the existing technical collaboration cum joint marketing deal has been disbanded, the proposed 50:50 JV announced in October 2007 has also been scrapped.

Under the terms of the deal, Ultra was to provide electric vehicle motors for the two wheelers while Hero Cycles, was to assemble the vehicles at its Ludhiana unit. Ultra has also set up an exclusive distribution network of 150 dealers across India.

Mr Joe Santana chairman of Ultra Motor said that "Our vision did not match with that of the Hero Group. We wanted to expand at a much faster pace. The congestion in cities creates a natural market for electric two wheelers. Now, we have our own plan which is to invest INR 150 crore over the next 3 years."

Mr Vijay Munjal MD of Hero Cycles said that "We have terminated our technical agreement with Ultra Motors. The proposed JV also stands cancelled. We have our own range of low speed electric vehicles in the market under the Hero Electric brand. We have a strong R&D base and will soon foray into the high speed electric vehicle segment."

The duo had started with a technical collaboration cum joint marketing deal for light electric vehicles, signed in late 2006. It was a precursor to a formal JV with plans of a new manufacturing facility. One of the prominent players in the nascent EV market in India, the duo had exceeded targets and clocked sales of 22,000 units in FY’08 capturing 20% market share.

Pursuant to this break up, Ultra is going to launch Ultra Motor branded electric two wheelers independently. It will bring in motors from a production unit that it acquired in Taiwan in 2007, to be assembled through a Hyderabad based partner in India. Hero Cycles is expected to bring in electric vehicle kits from China or Taiwan and assemble them under its own brand.

Jharkhand HC summons state over mining lease to Kohinoor Steel

The Telegraph reported that Jharkhand High Court has summoned Mr Jai Shankar Tiwary state mines & geology secretary to explain why Kohinoor Steel’s application for mining leases has been kept pending. The court observed that there is no explanation for the delay in deciding about the application for mining lease of Kohinoor Steel.

A high court bench directed Mr Tiwary to be in court on April 15th 2008, when the matter will be taken up for hearing.

Kohinoor Steel had signed the MoU with the state on July 18th 2005. The government pledged support to help it acquire land, coal block and iron ore mines. In return, Kohinoor agreed to invest INR 505 crore to set up a plan in phases. After signing the MoU, it purchased 35 acres near Chandil and started constructing the factory. By February 2006 it had finished the first phase of construction and set up a sponge iron plant, captive power plant and a steel melting shop with an induction furnace.

Kohinoor Steel also applied for the necessary permits to start production and submitted papers before the mines department for the lease. Kohinoor had applied for mining rights in the iron ore mines in Parambaljori, Barabaljori, Karampada, Setaruiya and Tatiburu in West Singhbhum. However, the government did not take any decision, resulting in heavy losses for Kohinoor Steel. When the government was not keeping its end of the bargain, Kohinoor went to court.

Adhunik Alloys, Abhijeet Infrastructure, Monet Ispat and Prakash Industries and Ispat Industries have also filed cases against the state for not providing them the required leases for mining iron ore.

48 Indian companies in Forbes 2,000 List

With India emerging as a hot spot for wealth creation, 48 Indian firms have made it to this year's list of 2,000 biggest global companies, which is compiled by Forbes magazine.

The following is the list of Indian companies, including their global ranking and market value in USD billion

In USD billion

Forbes magazine release said that "In total, the global 2,000 companies now account for USD 30 trillion in revenues, USD 2.4 trillion in profits, USD 119 trillion in assets and USD 39 trillion in market value. Around the world, 72 million people work for these companies. This year, 60 countries have global 2,000 entries versus 51 in our inaugural list in 2004."

The magazine said that the US still dominated the list of global giants but with 61 fewer entries than last year and 153 fewer than in 2004, as many US companies failed to keep pace with global competitors. It added that "In contrast, China, India and Brazil are rapidly adding companies to the list. India has 48 companies in 2007 versus 27 in 2004."

Updates on core industries growth in India

India’s Core infrastructure industries' growth has accelerated to 8.7% YoY in February 2008, reviving hopes that industrial production would speed up and arrest an economic slowdown. Growth in coal, power and cement, 3 of the 6 industries that make up the core infrastructure sector, aided the healthy growth in February 2008 as compared to 7.6% in February 2007.

These industries, including steel, crude petroleum and petroleum refinery products, carry 26.68 weightage on the index of industrial production. Hence, they could influence higher industrial growth and in turn GDP expansion. However, in April 2007 to February 2008 period, infrastructure growth remained lower at 5.6% compared to 8.7% in April 2006 to February 2007 period due to less than 5% growth in the 4 preceding months this fiscal. The infrastructure sector had grown by a poor 4.2% in January 2008.

Source of data: concerned ministries/departments/organizations

NB: Indices and Growth rates are provisional

PTC India commissions wind energy project

PTC India Limited has informed BSE that it has successfully ventured into wind energy generation business by commissioning 6 MW wind farm project on March 31st 2008. The project consisting of 4 numbers of Suzlon machines of 1.5 MW each are located at Sinnar, Nashik in Maharashtra.

The release added that it has also acquired 11% equity of Teesta Urja Limited, which is developing 1200 MW Teesta III hydra electric project in Sikkim.

Updates on Neyveli Lignite achievements in 2007-08

Neyveli Lignite Corporation Limited, which was established in 1956 and is a pioneer in the excavation of lignite and generation of power at pit head thermal power stations, announced that it has spread its wing right from Rajasthan in north to Tuticorin in the south and Gujarat in the west to Orissa in the east by augmenting the production of lignite and power generation by expanding its existing projects and by entering into JV for the new mining projects in the other states of India.

It now operates three open cast mines at Neyveli namely mine I of 10.50 million tonnes per annum, mine II of 10.50 million tonnes per annum, mine IA of 3 million tonnes per annum and 3 thermal power stations namely thermal power station I of 600 MW, thermal power station II of 1470 MW and thermal power station I expansion of 420 MW provide power to the southern states.

All the mines and thermal power stations of Neyveli Lignite have been accredited with ISO 9001:2000, ISO 14001:2004 and OHSAS 18001: 1999 certificates for quality management system, environmental management system and occupational health & safety assessment series respectively.

During the year 2007-08, the lignite production and excavation of overburden from its mines and its power generation from its power stations have surpassed its previous records and are the highest for any year since inception. The detail of its production performance during the year 2007-08 is given below

1) The overburden removed is 135.623 million cubic meters against 134.541 million cubic meters achieved during 2006-07 registering a growth of 0.8% YoY and is the highest for any year since inception.

2) The lignite production from its mines is 21.575 million tonnes against 21.014 million tonnes achieved during the year 2006-07 registering a growth of 2.67% YoY and is the highest for any year since inception.

3) The total power generation 17455.90 million units as against 15786.58 million units achieved during the year 2006-07 registering a growth of 10.57% YoY and is the highest for any year since inception.

4) The power generated from thermal power station II is 10518.27 million units which is the highest for any year since its inception

5) The power generated from thermal power station I expansion is 3266.40 million units which is the highest for any year since its inception.

During the year 2007-08, the overburden removal, lignite production and power generation have exceeded their targets set by 3.37%, 7.61% and 11.15% respectively.

BEML turnover in 2007-08 up by 15.5% YoY

Bharat Earth Movers Limited has achieved a turnover of INR 3005 crore with 15.5% YoY growth and with profit before tax of INR 350 crore with 11% YoY growth compared to last year. The order book as of year end stands at INR 3795 crore. During the year it has achieved export sales of INR 257.72 crore as compared to INR 110 crore in the previous year, an increase of 132% YoY.

Some of the highlights of BEML’s performance in the years are

a) Rail unit II at KGF was inaugurated and commenced commercial production of Rail coaches on October 9th 2007 and employed only ex employees and dependents of closed BGML, KGF.

b) BEML JV BEML Midwest Limited head quartered at Hyderabad for contract mining business was inaugurated and commenced its operation.

c) Raised INR 526 crore through follow on public issue.

d) Company wide ERP was implemented with effect from October 1st 2007.

e) Commissioned 5 MW wind mill farm, which will produce 13.2 million units per annum.

f) Opened global ware house at Malaysia and China.

BEML has a vision to achieve INR 5000 crore turnover by the year 2013-14, Golden Jubilee year of the company by expansion and diversification through
1) High capacity dumpers
2) 20 cubic meter rope shovel
3) Metro coaches for broad gauge and standard gauge
4) Stainless steel EMUs
5) Airport link high speed trains
6) Bogies for high speed trains
With sustainable potential for business growth in all business segments in particular mining & construction and rail & metro, BEML is poised to achieve 18% YoY to 20% YoY growth.

BEML is a Mini Ratna category I company under the union ministry of defense. The equity capital of BEML is INR 41.77 crore, with 54% held by centre and the balance by financial institutions, public and employees. BEML has its manufacturing plants at Kolar Gold Fields, Bangalore, Mysore and a Subsidiary steel foundry at Tarikere. The total employee strength of BEML as on date is 12318. The business areas of BEML include
1) Mining and Construction
2) Defense
3) Rail & Metro
4) Technology division or e engineering solutions
5) Trading division.

Change of guard at Punj Lloyd

Punj Lloyd Limited has informed BSE about the changes in the key management personnel of the subsidiaries of the company.

Mr Ric Grosvenor has taken over as president & CEO of its Singapore subsidiary Sembawang Engineers & Constructors Private Limited from Mr Alwyn Bowden.

Mr Mark Leggett has joined as president & CEO of Simon Carves Limited, a wholly owned subsidiary of SEC in UK.

Mr Brian Waltmaler has retired from the position of MD of Simon Carves Limited.

POSCO blinks on coking coal benchmark price for 2008

It is reported that the world's fourth largest steelmaker POSCO has agreed to a tripling in the price of coking coal from an Australian miner. The deal, which took effect from April 1 for fiscal 2008, came after floods in Australia reduced global supplies.

Ms Ko Min Jin a spokeswoman of POSCO said that "We agreed to a 205% to 210% price increase for some of the coking coal provided by an Australian company, which we cannot identify.”

He added that "The rise is applied to only part of our Australian supplies.”

POSCO said it could not disclose the new price. But it previously purchased coal from the same company for about USD 98 a tonne, meaning the latest price would be around USD 299 to USD 304 a tonne.

Australian suppliers in total provide 60% of POSCO's entire coking coal imports.

ArcelorMittal announces retirement of Mr Malay Mukherjee

ArcelorMittal announced the retirement of Mr Malay Mukherjee, member of the group management board with responsibility for Asia, Africa, CIS, Mining, Stainless and Pipes & Tubes. He will retire from his executive duties on May 13th 2008.

As per release “The Board of Directors will propose to the Annual General Meeting of Shareholders that he will be appointed a non executive member of the Company's Board of Directors effective from that date.”

Mr Mukherjee joined ArcelorMittal on January 1st 1993 as executive director of the company's Mexican operations, where he subsequently became CEO. Following his tenure in Mexico, he then moved to Kazakhstan in 1996 where he spent three years as the company's CEO. He left Kazakhstan in 1999 to become President and CEO of Ispat Europe. Then in 2001 he was appointed Chief Operating Officer, first of Ispat International and subsequently of Mittal Steel Company, following the merger between Ispat International, LNM Holdings and International Steel Group to create the world's largest steel company. Following the merger in 2006 between Arcelor and Mittal Steel, Mr Mukherjee was appointed as one of the six members of the company's Group Management Board, with particular responsibility for Asia, Africa, the CIS, Mining, Stainless and Pipes and Tubes. Prior to joining ArcelorMittal, he spent many years with the Steel Authority of India Limited, where his last position was as ED works at the Bhilai Steel Plant.

Mr Mukherjee said that "It has been a real privilege to have spent the last 15 years of my career working for ArcelorMittal. When I joined the company it was producing 1.3 million tonnes of steel. Today it is not only the leading steel company, but the company that has transformed the fortunes of the industry through driving a new approach and business model. When I first met Mr Mittal his drive and commitment was obvious, but I could not have imagined that the impact of this would be so substantial or extensive. I feel honored to have enjoyed a ring side seat in what has been an exhilarating, challenging and enormously rewarding journey, working so closely with such an exceptionally talented and motivated leader. Even though I am now taking a step back from the day to day operations of the company, I am delighted to have been asked to become a Member of the Company's Board of Directors. I have no doubt that the ArcelorMittal journey has only just begun and that the company will continue to go from strength to strength.”

Mr Mittal said that "I am very sad to be announcing Malay's retirement from the executive board of ArcelorMittal. He has been an exceptional colleague over the years, someone with deep operational experience, impeccable judgment and great professional integrity. His counsel has been invaluable and he has played a very considerable role in helping ArcelorMittal become the leading steel company that it is today. On behalf of all my colleagues who have worked extensively with Malay, we are very sorry to see him go. However I am very pleased that our collaboration will continue on the Board of Directors, where I have no doubt Malay's views will be invaluable in the company's next stage of development."

Chubu sets thermal coal benchmark at AUD 125

Reuters reported that Japan's Chubu Electric has agreed to a 125% rise in Australian thermal coal prices in the industry's first annual deal, setting an AUD 125 a tonne benchmark for peers and producers.

Top thermal coal exporter Xstrata Plc won the deal with Chubu, Japan's number three utility, on Friday, one source involved in the talks told Reuters.

Analysts said the settlement level for fiscal year 2008/2009 prices was expected after Australian spot market prices surged to a record high above AUD 150 a tonne earlier this year, straining profits for power companies and fuelling inflation amid a global commodities prices boom for everything from oil to wheat.

The first such deal of the season normally sets a benchmark that most others will follow, spelling higher costs for utilities like Japan's biggest thermal coal user, Electric Power Development Co but bumper profits for big producers like Rio Tinto Ltd.

Last year's benchmark was AUD 55.65 a tonne, a modest 6% rise from the year before, but prices surged in late 2007 and early this year after China briefly banned exports and flooding stymied shipments from top two exporters Indonesia and Australia.

ArcelorMittal announces new investments at Gandrange

ArcelorMittal announced a range of new investments at its Gandrange site in the Lorraine region of France and a number of other initiatives aimed at reinforcing its commitment to France and has guaranteed a job for every employee affected by the project at the Group’s operations for instance in nearby Florange or Luxembourg.

Following a meeting held with the Workers Council on April 4th 2008, ArcelorMittal is pursuing the information and consultation process with the unions regarding the specialization of its Gandrange site as a rolling mill in order to secure a sustainable and viable future for the operation, which has been consistently loss-making despite continuous investment.

ArcelorMittal also announced that it intends to develop a number of downstream facilities on the site to complement its rolling mill activities and ensure the sustainability of its operations in the region. These investments, which will require a total investment of EUR 30 million and will create 124 new FTE, are as follows:
1. The creation of a Service Centre in Gandrange for the construction Industry;
2. The development of a Distribution Processing centre for Beams, involving two new processing lines;
3. The development of a Solar Panels Project, to develop solar technologies;
4. The building of a new R&D facility for Wire Solutions; and
5. Investment in the existing rolling mill.

ArcelorMittal is also considering setting up a new Technical Education Centre for the Lorraine region. Over the next ten years, approximately one third of its industrial workforce in France will retire. The existing system is unlikely to deliver enough qualified people to fill these roles. The Technical Education Centre will require a EUR 5 million initial investment, to provide the facilities and technical equipment necessary for the education of up to 120 students. Training would last for two years and would include part time employment with ArcelorMittal. Upon graduation, students would be employed by either ArcelorMittal or its subcontractors.

ArcelorMittal will also continue to look for other opportunities to expand its activities in Gandrange.

Nippon Steel refutes coking coal price settlement news

Nippon Steel Corp said that talks to settle contract coking coal prices are continuing, denying a Nikkei newspaper report that it agreed to pay three times more for the raw material.

Mr Masato Suzuki a spokesman of Nippon Steel said that “Nothing has been decided in coal price negotiations with raw material suppliers.”

Nikkei English News, without citing anyone, had reported that Nippon Steel is likely to accept BHP Billiton's plan to triple the price of coking coal. It had reported that BHP plans to increase the price of the material for the first time in three years to USD 300 per tonne from USD 98 per tonne and other miners such as Rio Tinto etc are likely to follow BHP's price increase.

ArcelorMittal makes commitments to France

In addition to investments at Gandrange site in the Lorraine region of France, ArcelorMittal has also announced more commitments I n France

1. Florange
ArcelorMittal announces that, provided the right economic and regulatory conditions prevail, including the issue of relevant emissions quotas, it intends to maintain blast furnace operations at its Florange facility beyond 2012. As part of the previous “Apollo” plan launched by Arcelor in 2003 the hot steel-making facilities at Florange were due to be closed in 2010/11 affecting over 1000 employees. Following the merger to form ArcelorMittal, the decision was taken to maintain the hot-phase until 2012.

ArcelorMittal also announces today that it intends to carry out a feasibility study at its Florange site to ascertain its suitability of the site for implementing a CO 2 carbon capture and storage prototype project. As the lead member of the ULCOS project, which aims to substantially reduce the CO 2 emissions from the steel making process, ArcelorMittal is looking to build a prototype blast furnace at one of its operations that will be able to capture and store CO 2 gasses in an effective manner. No decision will be taken to implement such project in any of its operations until such feasibility study has been completed.

2. Poweo
ArcelorMittal is also investigating the potential to co-operate with Poweo for the construction of new power plants in the Lorraine region.

3. Research and Innovation
ArcelorMittal and the French government have agreed to study the possibility of cooperating on potential research and innovation projects for the benefit of the Lorraine region. A joint contribution of EUR 20 million is presently being discussed.

Mr LN Mittal president & CEO of ArcelorMittal said that "France is the industrial hub of ArcelorMittal’s European operations and we are very committed to our presence here. We want to strengthen our operations in terms of R&D and value-addition to ensure that we maintain a strong competitive advantage that supports the sustainability of our operations in France. These initiatives and investments have been designed to help us deliver on this aim. I would like to thank President Sarkozy for his support. The President is very dedicated to ensuring that France retains a strong industrial presence and has played an important role in helping us identify these projects. I also want to take this opportunity to reassure all the employees of Gandrange that we will have a solution for each and every one of them.”

Portman acquires 11% stake in Golden West Resources

Golden West Resources Limited said that Portman Limited has acquired 11 million shares or a 10% stake in the company. Golden West Resources said it represented confidence in its business model and quality assets.

The iron ore hopeful has been the target of a takeover bid by Fairstar Resources Limited who lost control of about 10 million Golden West shares as part of its exposure to collapsed brokerage Opes Prime.

Golden West Resources said. that “Golden West welcomes Portman’s investment as a clear vote of confidence in the company and its flagship Wiluna West iron ore project. Golden West Resources looks forward to discussing how the two companies may work together for the benefit of their respective shareholders.”

Meanwhile, there were further reports that on Friday Portman had raised its stake in Golden West Resources to nearly 13%.

ArcelorMittal SA pulls back from Duferco Steel Processing merger plan

South African Competition Commission last week said that ArcelorMittal Steel Company has withdrawn its proposed merger with Duferco Steel Processing. Commission welcomed the withdrawal as it said it would support the tribunal's efforts to ensure that exported product was available to local customers with prices approaching export prices.

Because Duferco Steel Processing represented a source of competitive rivalry to ArcelorMittal SA in the cold rolled coil galvanized products markets, the commission said that the Duferco transaction would be a move in the opposite direction to that of improving competitive outcomes. The Competition Commission said that “The merger represented a substantial prevention or lessening of competition.”

ArcelorMittal had proposed to buy 50% of Duferco Steel Processing from Switzerland's Duferco Group, plus the remaining 50%, which is held by the Industrial Development Corporation.

The transaction was to have been considered next month by the country's highest competition authority, the Competition Tribunal, after the commission recommended in September last year that the deal be blocked.

A commentator familiar with the deal said that Mittal 's decision to end the merger application might have been prompted by the commission's finding, as the assessment had opened the possibility for further investigation and sanctions if the group was found to have circumvented conditions the tribunal had imposed on it.

Recession reports – US consumer confidence slides

Reuters reported that US consumers' confidence plunged to a five year low this month on worries over rising inflation and fewer jobs, with a record drop in home values in January providing additional cause for their woes.

According to two closely watched Standard & Poor's Case Shiller gauges, prices of existing US single family homes slumped about 11% YoY in January 2008 from the same month in 2007.

A report by the Conference Board showed consumer expectations for the future were at a 34 year low in March and anxieties over job prospects and inflation at their highest since the aftermath of Hurricane Katrina in late 2005.

The Board said its index of consumer sentiment fell in March to 64.5 the lowest since March 2003 from an upwardly revised 76.4 in February.

Mr Nigel Gault chief US economist at research consultancy Global Insight at Waltham in Massachusetts said that "These are dramatic declines with all the bad news hitting consumers. It's hard to say anything positive for the consumers."

PT Bumi 2007 net profit soars by 255% YoY

Indonesia's largest coal miner, PT Bumi Resources Tbk reported a sharp 255% YoY increase in net income in 2007 of USD 789 million as compared with USD 222 million in 2006. Its Operating parameters sharply improved reflecting all round enhanced performance efficiencies demonstrated by Bumi. Sales revenue rose by 22% YoY to USD 2,265 million in 2007 as compared with USD 1,851 million in 2006.

Average FOB price increased by 8% YoY to USD 44 per ton in 2007 compared with USD 40.8 per ton in the previous year. Notably, sales volume rose by 11% to a record 55.4 million tonnes in 2007 as compared with 50 million tonnes in 2006. EBITDA increased by 20.6% to a record USD 480 million in 2007 compared with USD 398 million in 2006 reflecting increasing liquidity.

Mr Ari Hudaya president director of PT Bumi Resources Tbk said that "We are proud of our outstanding performance in 2007 in spite of heavy unseasonal rainfall. Not only was Bumi able to achieve an increase of 11% in sales volume but we continued uninterrupted shipments to our global clientele when many producers declared force majeures and reneged on contracts. Bumi preserved its unblemished record of being the world's most reliable thermal coal supplier.”

He added that "we successfully concluded the 30% sale of our coal assets to Tata Power Company during the year and we are almost debt free saving annualised interest of over USD 100 million.”

5 Railway firms in US sued on anti trust grounds

According to e Cargonews Asia, the five big railroads of the US are being sued on charges of violating anti trust laws in fixing their fuel surcharge. The railroads named in the suit are Omaha based Union Pacific Railroad, Texas based BNSF Railway, Florida based CSX Transportation, Virginia based Norfolk Southern Railway and Montana based Kansas City Southern Railway.

The lawsuit accuses the five railroads of setting fuel surcharges by working through the Association of American Railroads, which publishes the indices used by railroads to calculate rates.

AAR’s board comprises the CEOs from five railroads, according to lawsuit which does not say the surcharges are illegal but accuses the railroads of illegally acting in concert. The law suit said that “The uniform pricing could not have happened by chance or coincidence.”

Milpo stresses own value in face of Votorantim offer

BNamericas reported that Peruvian zinc miner Milpo is urging shareholders to think twice about tendering their shares to a public offer from Brazilian owned Votorantim Metais.

Milpo in a statement sent to the Lima stock exchange said that Votorantim's offer to buy up to 147 million common shares in Milpo at USD 2.87 per share, would raise it's stake by 20.9% to control over 50% of the voting rights, adding its current share price is higher than the offer price.

Milpo asked shareholders to consider the performance of its mines and potential of its upcoming projects, as well as exploration programs, which reflect the growth and creation of value in the company, when deciding whether to tender their shares.

Milpo said that "The acceptance or not of the public offer is a decision for each shareholder to make to do that they must have all the necessary information. It is not up to the board to establish what the offer price should be; however, this report contains aspects that must be taken into account by shareholders to have a more complete idea of the situation."

The miner said it is prepared to sustainably achieve its goals of maximizing the value of the company for the benefit of shareholder and workers, and aims to become one of the biggest polymetallic producers in the world over the next five years.

Indonesian port workers strike could cripple operations

It is reported that a nation wide strike by port workers could cripple operations at Indonesian ports from Tuesday onwards. Workers at Indonesia's state owned port operator have threatened to strike if the government passes a bill to end the operator's monopoly on running 112 ports across Indonesia.

Mr Sudjarwo chairman of Indonesian Port and Dredging Worker Union said that “We reject the government's bill to end PT Pelabuhan Indonesia's exclusive right to operate ports. The bill, if passed, will likely result in Pelindo workers losing their jobs.”

Mr Sudjarwo added that Pelindo workers at all 112 ports will go on strike if the bill is passed.

Indonesia's parliament will decide on the bill on Tuesday, which also reported demonstrations by port workers outside parliament last Friday to protest the bill. According to Indonesia's transportation ministry, the bill aims to make the ports industry more competitive.

Outotec won grinding mill orders in Sweden and Russia

Outotec announced that it has been awarded two grinding technology orders by Nordic Mines AB of Sweden and Polymetal Trading Ltd of Russia. The total value of the orders amount to approximately EUR 25 million.

Nordic Mines ordered two grinding mills and related spare parts and services for its Laiva gold project in central Finland. The mills are designed to treat 250 tonnes ore per hour and the production is estimated to begin in March 2010.

Polymetal is Russia's largest silver producer and third largest gold producer, ordered six grinding mills and spare parts for the Albazino project and flotation technology and spare parts for the Dukat project, both located in Russia.

Outotec's deliveries will take place during 2009.

AK Steel increases price of carbon steel products

AK Steel announced that it will increase spot market prices for its carbon steel products by USD 150 per ton for all new orders, effective immediately.

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

Salzgitter sees POSCO coking coal settlement as benchmark

Salzgitter AG said no agreement has yet been reached with suppliers of coking coal after Asian peer POSCO accepted a 200% price increase.

A spokesman of Salzgitter AG said that POSCO’s agreement can be seen as a benchmark for the whole industry but declined to say whether he expects similar price hikes for Salzgitter.

POSCO on Monday said that it has agreed to a more than 200% price increase on some of the coking coal it buys from an unnamed Australian resource company for fiscal 2008.

Meanwhile, Nikkei reported over the weekend that Japan's Nippon Steel Corp is expected to agree to a proposed 200 percent increase in coking coal prices by Anglo Australian resource company BHP Billiton Ltd for fiscal 2008, but did not say where it got the information.

Japanese H2 scrap prices up

Japanese H2 scrap average price in April was JPY 53,324 per tonne in Kanto and Kansai areas. The price was increased by JPY 2,716 per tonne than last week.

The H2 scrap price was JPY 54,000 per tonne in the Kanto region. It increased by JPY 2,650 per tonne than last week. The scrap price was JPY 52,640 per tonne in middle region. It increased by JPY 2,500 per tonne. The scrap price was JPY 53,333 per tonne in Kansai region, a rise of JPY 3,000 per tonne.

(Sourced from YIEH.com)

Mexican tube maker Tuberia Laguna build small size tube mill

Mexican pipe producer, Tuberia Laguna plans to build a new mill nearby its existing pipe mill in the middle western state of Durango in Mexico. The new plant will be designed to produce small diameter tubes and pipes.

Laguna's capacity is about 125,000 tonnes per year. It can produce API 5L pipe. The diameter ranges from 6 inches to 24 inches. The new line for small diameter tubes below 6 inches is still processing.

It is excepted that the new line can be put into production this year.

(Sourced from YIEH.com)

Italian domestic prices of rebar on upward trend

It is reported that the price of Italian deformed bar has been rising since last December, due to strong oversea demand. As per report the deformed bar price has increased by EUR 200 to EUR 210 per tonne since last December and prices are continually increasing.

The market participants indicate that the demands of domestic market are still quiet but the booming demands from oversea pushed price up. Right now, the mill said that the productions in April have sold out already.

At present, the industries are expecting that Italian steel bar base price and surcharge will keep rising for next 2 months. However, if exportation slow down, they believe deformed bar price will fall along with it.

(Sourced from YIEH.com)

Lilama 18 and 4 Japanese firms launch steel structure JV

VNA reported that a joint venture between Lilama 18 company and four Japanese specialist steel structure producers made its debut as USF Vina Japan on April 7th in Vietnam.

As per report Lilama 18, an affiliate of the Vietnam Machinery Installation Corporation holds 15% of the newly established company’s stakes, while Mitsubishi contributes 30%, Takigami 30%, Metal One Corp 15% and Marusada 10%.

The joint venture received a license to build a factory worth USD 5.74 million at the Vietnam Singapore Industrial Park in southern Binh Duong province. The plant will be capable of producing 6,000 tonnes of steel structures per year when it becomes operational in January 2009.

The transfer of technology to USF Vina Japan is now underway and a number of engineers have been sent to Japan for further training.

USF Vina Japan said it will focus on producing framed steel products used in bridge and high rise building construction.

Rio Tinto Alcan accelerates study of Alma smelter expansion project

Mr Tom Albanese, chief executive of Rio Tinto while speaking at a Canadian Club luncheon at Montreal in Quebec announced that Rio Tinto Alcan will proceed, on an accelerated basis, with a pre feasibility study for an expansion of the Alma smelter in the Saguenay Lac Saint Jean region of Quebec.

The potential expansion would add approximately 170,000 tonnes to the current Alma smelter production of slightly more than 400,000 tonnes.

Mr Albanese said that "I am very pleased to announce another positive step along the way in our ten year, USD 2 billion Quebec investment program. Rio Tinto intends to follow Alcan's lead as a champion of Canada and Quebec and build upon its positive economic and social legacy by continuing with investments that will create value and opportunity."

Mr Jacynthe Côté president & CEO of the Rio Tinto Alcan Primary Metal business unit said that "Our objective is to complete the various feasibility studies on an accelerated basis. This is another important part of our investment strategy and a further demonstration of our ongoing commitment to the development of the Saguenay Lac Saint Jean region."

Alma is one of Rio Tinto Alcan's most modern and efficient smelters. The expanded smelter would have a capacity of approximately 570,000 tonnes and be one of the largest in North America. The study will evaluate the cost, timetable and conditions for completing the expansion, which is part of Rio Tinto Alcan's Quebec investment program announced in December 2006.

ArcelorMittal announces results of delisting of Inox Brasil

ArcelorMittal announced the results of the auction held Friday, April 4, 2008, on the São Paulo Stock Exchange in connection with the delisting offer to acquire all of the remaining outstanding shares of ArcelorMittal Inox Brasil SA that are not yet owned by ArcelorMittal or any of its affiliates as described in the Notice of Public Tender Offer for Acquisition of Common and Preferred Shares issued by ArcelorMittal Inox Brasil SA registered with the CVM.

It said that “As of the close of the auction, in the aggregate, 1,008,306 common shares and 28,954,035 preferred shares of ArcelorMittal Inox Brasil were tendered, representing 40.32% of the total share capital and 94.77% of the free float of ArcelorMittal Inox Brasil. Following the auction on April 4th 2008, an additional 97 common shares and 11,459 preferred shares of ArcelorMittal Inox Brasil were acquired by ArcelorMittal. With these additional purchases, the total number of shares acquired represents 40.33% of the total share capital and 94.81% of the free float of ArcelorMittal Inox Brasil.”

It added that “As a result of the acceptance of the Offer by shareholders representing more than two thirds of the shares qualified for the auction and in accordance with the regulations of the Brazilian Securities and Exchange Commission, ArcelorMittal Inox Brasil's registration as a public company will be cancelled. As required by Brazilian regulations, from April 7th 2008 to July 4th 2008, any holder of shares willing to sell his/her shares to ArcelorMittal at the Offer price may do so by presenting a request to that effect. The price will be adjusted by the Referential Rate, starting on the settlement date of the Offer to the date of effective payment. The purchase price for shares sold pursuant to this process will be payable within 15 days of the date of the request of the shareholder to sell the shares.”

JFE steel moves office to Brisbane

AAP reported that a major Japanese steel producer will relocate its Australian office from Sydney to Brisbane this month. JFE Steel Corporation will be the first Japanese steel company to have a permanent presence in Queensland.

Ms Anna Bligh Bligh premier of Queensland who is mid way through a 13 day trade mission to China, Japan and India, made the announcement after a lunch in Tokyo. Ms Bligh said that the Brisbane office would initially have a workforce of six, but the number would increase as JFE made further investments in the state.

She added that "Relocation to Brisbane will provide JFE Steel with more convenient access to coal suppliers, infrastructure providers and other major players in the coal business.”

Ms Bligh said the Japanese steel manufacturers were critical to her state's export performance, purchasing AUD 3.8 billion worth of coking and thermal coal from Queensland in 2006/07 more than 10% of the state's total merchandise exports.

Kobe Steel to raise raw steel output to 8.4 million tonnes 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.

As per report the firm raises the output after expansion of blast furnace at Kakogawa and Kobe works in fiscal 2007

Recession reports- US economy at virtual standstill- IMF

According to Mr IMF Simon Johnson chief of IMF, US economy has come to a virtual standstill and will remain weak in coming quarters due to deeper problems in housing and credit markets, but avoided calling it a recession.

Mr Johnson speaking ahead of the April 9th 2008 release of the IMF's World Economic Outlook said that "Notwithstanding the strong response from US policymakers, tighter financial conditions, higher energy prices, softer labor markets and the weak housing market all conspire to weigh heavily on the US economy in the near term.” He added that economic growth in Europe would also slow this year, perhaps with some lag, because of the United States' weak performance.

Mr Johnson said deeper and more protracted strains in financial markets posed the biggest threat to the world economy, with economic growth in major emerging economies also likely to weaken, although it should stay above trend. He cautioned that "An intensification of problems in the US housing and credit markets could further slow the US economy and weigh on the arc of recovery.”

According to leaked copies of the IMF's upcoming global forecast, the IMF now expects the global economy to grow by 3.7% in 2008, below an earlier forecast of 4.1%.

South Korea to introduce insurance on raw materials

Yonhap last week reported that South Korea will introduce a new insurance scheme to help local company’s better cope with sharp gains in global raw material prices and sudden changes in foreign exchange rates.

The Ministry of Knowledge Economy said that to be offered in May, the raw materials price fluctuation insurance scheme is expected to benefit 800 small and medium enterprises that import resources.

Recession reports – Global aviation business hit

AFP reported that economic slowdown in the US is taking a growing toll on the airline industry as passenger occupancy rates hit the lowest level for four years.

Mr Giovanni Bisignani director general of International Air Transport Association in a statement said that “The global passenger load factor fell to 73.3% in February, down 0.6% from the previous year.

He added that "Things are slowing down. Load factors tell the story. They fell in the four largest carrier regions showing the growing impact of the US economic slowdown on the airline industry.”

He noted that the weak US dollar is boosting exports and outbound business flights, while conversely the strong euro is damaging the competitiveness of European carriers.

IATA said that the European PLF saw the single biggest drop, down 1.6 percentage points to 71.7%. Asian carriers saw PLF fall by 0.1 percentage points to 75.2% while North American airlines dipped 0.5 percentage points to 74%. The Middle East saw PLF down 0.9 percentage points to 72.6%, though this was balanced against a 20.3% growth in passenger traffic supported by the oil business.

Miming delays shift focus to nickel pig iron

Herald News Services reported that delays at nickel mines around the world will force big industrial consumers like stainless steel makers to rely on low grade nickel pig iron for years.

Mr David Humphreys chief economist at Norilsk Nickel, the world's biggest producer of the metal said that nickel pig iron, a lower grade nickel that has become a key supply source for the stainless steel sector, will continue to play a big role for the foreseeable future. He added that "It is essentially a stop gap measure. Having said that the measure will be around for quite a time to come.”

He added that "Certainly for the moment, it is required in the market."

Nickel pig iron output is estimated to have risen to around 100,000 tonnes in 2007 from about 30,000 tonnes a year earlier.

AGE expects 2008 sales to rise by 50% YoY

Bangkok Post reported that Asia Green Energy Co, a coal importer controlled by the Kok Huad Group of the Kuansataporn family, expects bituminous coal import sales to rise at least 50% YoY in 2008 to THB 1.56 billion.

Mr Panom Kuansataporn MD of Asia Green Energy said that we also expects coal trading revenue to grow by 40% in the year ahead, Since 2004, the group has diversified away from biomass, in which it has 40 years of experience, into coal trading managed via wholly owned AGE.

The firm's clients are mostly in the industrial sector, which was now rising in line with the increasing number of manufacturers that want to shift from fuel-oil to coal to cope with the surge in oil prices.

Mr Kuansataporn said the group decided to shift from biomass as the market has been saturated for the past few years and suffers from raw material constraints.

Vietnamese cement makers want coal price increase delayed

VietNamNet Bridge reported that Mr Nguyen Van Thien chairman of the Cement Association Council on March 25 sent a document to the prime minister of Vietnam, asking him to instruct the Vietnam Coal and Mineral Industries to delay the coal price increase plan.

Mr Thien said that in January 2008, Vinacomin raised the price of coal sold to cement producers by 70%. On March 25, Vinacomin once more asked to raise the coal price. The continuous coal price increases may lead to the price increases of a lot of commodities and services, threatening to make the current difficult situation worse.

He added that the 70% coal price increase in early 2007 alone made cement production costs increase by VND 30,000 per tonne. Meanwhile, cement producers also have to pay more for fuel, transport fees and import materials.

Mr Thien said that Vinacomin has called on the Vietnam Cement Corporation and other cement producers to go to Vinacomin’s office to negotiate the new coal sale price. The coal producer has announced its intention to raise the coal dust price 4A.HC to VND1.150 million per tonne and 4B HC to VND1.1million per tonne.

According to the Cement Association, the new coal price levels will make the production costs of cement increase by another VND40 50,000 per tonne.

Ivanhoe Mines announces 2007 result

Ivanhoe Mines Ltd announced its results for the year ended December 31st 2007.

Highlights:

1. A new NI 43 101 initial resource estimate at the Heruga Discovery in Mongolia has added 13.4 million ounces of gold and 8 billion pounds of copper to the Oyu Tolgoi Project's total inferred resources and drilling is continuing to expand the discovery.
2. Oyu Tolgoi's Shaft #1 has reached its total depth of 1,385 meters, allowing commencement of underground mine development of the copper and gold rich Hugo Dummett North Deposit.

3. The Oyu Tolgoi Project is awaiting an approved Investment Agreement with Mongolia to begin full scale construction.

4. Ivanhoe's 81% owned subsidiary, SouthGobi Energy Resources, has raised USD 117.9 million and is preparing to open its first coal mine in Mongolia.

5. Ivanhoe Australia has significantly expanded its exploration program, targetting major copper, gold and uranium discoveries in northwest Queensland.

6. Ivanhoe is advancing development plans to bring the Bakyrchik Gold Mine in Kazakhstan into commercial production.

7. Ivanhoe's 42% owned subsidiary, Jinshan Gold Mines, has started production from its first gold mine in China with an initial target of 120,000 ounces per year.

8. Ivanhoe incurred USD 304 million in exploration and mine development expenses in 2007.

Burj Dubai becomes tallest man made structure in world

It is reported that Burj Dubai, the iconic high rise developed by Dubai based Emaar Properties PJSC, has surpassed the height of the KVLY TV mast in North Dakota of USA to become the world's tallest man made structure.

At 629 meters, Burj Dubai is now the worlds tallest man made structure, having surpassed the record held by KVLY-TV mast in North Dakota of USA since 1963.

Burj Dubai is already the world's tallest building and tallest free standing structure and at 160 storeys, is taller than Taipei 101 at 508 meters in Taiwan and CN Tower at 553.33 meters in Toronto. Burj Dubai is billed to meet all four criteria listed by the Council on Tall Buildings and Urban Habitat, which classifies the world's tallest structures. CTBUH measures the height of buildings to the structural top, the highest occupied floor, the top of the roof and the tip of the spire, pinnacle, antenna, mast or flag pole.

Mr Mohamed Ali Alabbar chairman of Emaar Properties said that "Emaar's Burj Dubai has accomplished another milestone in its development, placing the city of Dubai and Burj Dubai once again in the global spotlight. With over 160 storeys now, the most number of liveable floors in any building in the world, Burj Dubai is already pushing the frontiers in architecture, construction and engineering excellence."

He added that "The significance of Burj Dubai surpassing the height of the KVLY TV mast is that it demonstrates the pioneering achievement of mankind in creating urban environments that defy conventions. With over 5,000 professionals and skilled workers from around the world working on site, Burj Dubai's new feat is another celebration of teamwork."

When completed, Burj Dubai will have used 330,000 cubic meters of concrete, 39,000 tonnes of steel rebar and 142,000 square meter of glass. Emaar is partnering with South Korean construction major Samsung Corporation and New York based Project Manager Turner Construction in constructing Burj Dubai, which was designed by Adrian Smith and Skidmore, Owings & Merrill of Chicago. Burj Dubai will feature residences, commercial space and retail space and hospitality elements including the world's first Armani Hotel and Armani Residences.

AMB Qatar receive FrameCAD steel frame building solution

Al Masaood Bergum Qatar has announced that it is one of the first companies in the Middle East to receive the revolutionary 'FrameCAD' machinery, which enables high volume production and construction of cold-formed steel buildings from villas to warehouses, by accurately cutting, punching and dimpling the steel.

The Qatar facility is the first to receive this groundbreaking equipment, ahead of AMB facilities in Dubai and Abu Dhabi. The new machinery will go to improve on Al Masaood Bergum's already competitive and efficient offerings, ensuring that clients receive cost effective, quality projects on time and within budget.

Mr McNamara Clinton country manager of AMB Qatar said that "We are extremely pleased to be one of the first companies in the region to use the FrameCAD machinery, to increase productivity, which will in turn reduce costs for our clients. We are eager to see new technological advancements being introduced in the region to ensure that we are global industry leaders, raising standards and improving return on investment. We will continue to purchase and introduce quality machinery, making our facility one of the best in the world for manufacturing turn key building solutions."

FrameCAD is a fast and precise building solution that streamlines the steel frame design and building process. The result is an increase in return on investment, with a dramatic increase in productivity. The steel produced complies with internationally certified quality standards.

AMB, the leading supplier of prefabricated steel and timber frame buildings in the Middle East, is committed to providing customers with solutions for all their building needs. The company offers clients on and off shore turnkey solutions that includes design, approval and service installation, together with furnishing and landscaping.

Dana Gas imports from Iran to reach UAE by mid 2008

Khaleej Times reported that Dana Gas is set to begin importing gas from Iran by the middle of 2008 and also expects its gas projects in Iraq to start operating at the same time.

Mr Hamid Jafar executive chairman of Dana Gas said that "For 2008, Dana Gas aims to build on the strong foundations of 2007." He added that 2007 saw Dana Gas achieve its first revenues and operating income. This year it also plans to develop gas cities in other countries in the Middle East and North African region and is looking to acquire companies in the Gulf and North Africa.

He said, aside from its expected start-up operations in Iran, the UAE natural gas producer and distributor based in Sharjah will also drill 19 new wells in Egypt to increase production and take advantage of the high prices of energy. While building upon its positions and assets in the UAE in 2007, Dana Gas also made important entries into all areas of the natural gas business in Egypt and Iraq’s Kurdistan region.

Mr Jafar said that it has established strong positions in the UAE, Egypt and Iraq due to high oil prices and increased interest in the energy sector worldwide. These positions cover all areas of the natural gas business from exploration and production to processing and pipeline transmission as well as gas marketing and downstream projects.

Dana Gas posted revenues in excess of AED 1 billion for 2007 and had total assets grown by 59% YoY to AED 10.8 billion from 2006.

Pakistan searches for solution to power shortages

According to statistics from the seven nations South Asia Association for Regional Cooperation, Pakistan is experiencing shortages of electricity despite its miserly electricity use with per capita consumption of 546 kilowatt hours per year.

The problem stems from the fact that Pakistan has failed to build new power plants to keep up with the demand for electricity. As a result, the poor who are connected to the grid are going without during the nearly four hours of outages that are occurring per day this month. In wealthier neighborhoods, however, the streets come alive with the sounds of generators.

The power outages have increased generator sales and their price tags but have also cooled sales of fans, air conditioners and other appliances with consumers asking why they have such devices without the electricity to run them. A graver concern for the economy is the outages' effects on the industrial sector, which is Pakistan's biggest consumer of electricity, and factories having to shut down during the outages. Police have also reported increased crime during the blackouts in bigger cities.

Out of Pakistan's 19,500 MW of production capacity, a little more than 60% is from imported oil and domestic natural gas power plants. Hydropower generated from the country's two major dams accounts for about 30% and its one nuclear power plant produces less than 5%. Coal plant production is even less, but that could change if Pakistan exploits what has been estimated as the world's third-largest known coal reserves in the south-eastern part of the country.

Mr Tahir Basharat Cheema with DG Energy Management said that "The answer lies in using local coal." He suggested the government's Water and Power Development Authority develop coal generation.

OPEC chief rejects calls for output hike

Khaleej Times reported that Mr Abdullah al Badri secretary general of OPEC has rejected calls from oil consuming states for a hike in the cartel’s crude output, saying that non fundamental factors were to blame for current high prices.

Mr al Badri blamed the US economic recession, lack of refining capacity and depreciation of the dollar’s value for the record oil prices. He said "At the moment there is enough oil in the market and no need to change OPEC’s output."

Mr al Badri said that "No one can put OPEC under pressure because we decide based on our interests." He added that it is unlikely that OPEC would hold an extraordinary meeting before its next scheduled gathering in September 2008 to discuss the global economic turbulence caused by the collapse of the US sub prime home loan market.

The crude basket price of OPEC has topped the USD 100 mark for the first time. But Iran, OPEC’s second biggest oil producing member, also strongly backed leaving the current output production ceiling unchanged.

Iran expects Turkmen gas deliveries to resume soon

IRNA news agency quoted Mr Reza Kasaizadeh MD of National Iranian Gas Company as saying that Turkmen gas deliveries to the Iran would resume soon after Turkmenistan halted the flow citing technical problems. He added that negotiations were still under way but gave no details of the talks.

Turkmenistan halted its gas deliveries of up to 23 million cubic meters a day to Iran in late December 2007, citing technical issues. Iran sits on the world’s second largest gas reserves but has been slow to develop exports, partly because of US sanctions.

It has imported some gas from Turkmenistan which mainly helps supply an area in north Iran far from the main national grid. Iran previously asked Turkmenistan to let it pay in euros when supplies resume, part of a bid to reduce reliance on the US dollar because of US sanctions.

Shortly after Turkmen cut the supplies, in the depths of Iran’s coldest winter in decades, Iran accused Turkmenistan of an immoral act and warned it could stop buying supplies if they were not resumed.

Gulf banks stick to 2010 single currency target

The Peninsula reported that Gulf central bank chiefs have decided to stick to their target date of 2010 for a single currency and did not discuss revaluing their dollar-pegged currencies against the tumbling greenback. They also agreed on fresh impetus for efforts to create the single currency by 2010. As per report, central bank governors from the Gulf Cooperation Council will meet again in 2 months to complete the legislation and the matters relating to monetary union as we march to reach 2010.

The governors’ regular twice yearly meeting discussed removing obstacles to the single currency plans. Of the six countries, Oman said in 2006 that it would not join by a January 1st 2010 target and Kuwait dropped its dollar peg in May 2010, throwing the plan into disarray.

Sheikh Abdullah bin Saud Al Thani governor of Qatari Central Bank said that "We are going to review the date in 2009. It is realistic. We are committed to working towards that target." He added that the six countries will have to work more closely together to resist going their separate ways on currency policy as interest rates fall and the US dollar weakens.

Sheikh Abdullah said that "We meet recently against the backdrop of very difficult and complicated developments, in terms of their impact on our economic conditions in general, and fiscal and monetary in particular."

He said "The pressure on our economies has piled up in the last year, be it in terms of interest rates or exchange rates. These pressures appear to be likely to continue over the current year in a manner that requires us to deal with them with the greatest level of coordination and consultation."

Saudi Arabia, the UAE and Qatar are among the oil producers that have come under pressure to revalue their currencies or drop their pegs as the link forces them to track declining US interest rates when their own economies are surging. Oil prices have surged five fold during the last 6 years. The UAE inflation hit a 19 year high of 9.3% in 2006 and probably accelerated to more than 10% in 2007. In Qatar, it was 13.7% in the fourth quarter of 2007-08.

Pakistani PM assures exporters of level playing field

The News quoted Mr Yousaf Raza Gilani Prime Minister of Pakistan as saying that the government would ensure a level playing field to all exporters to enable them to compete in the international market.

Mr Gilani said that "We will try and ensure that a level playing field is provided for all our exporters in order to compete with countries such as China, India, Sri Lanka and Bangladesh. We will also make all possible efforts to bolster our exports and all necessary steps shall be taken to facilitate the exporters. Besides, concrete measures will be adopted to increase the confidence of foreign investors."

He said "Special emphasis should be laid on the export of value added products. It should also be your top most priority to make Pakistan an attractive market for foreign investors." He added that the government would make all possible efforts and provide required infrastructure and facilities to make the country a preferred destination for foreign investment.

Referring to the ongoing energy crisis, Mr Gilani said that the matter would be addressed on top priority. Talking about impending shortage of water, he said the government intended to construct small dams in the short term and large dams in the long term.

UAE economic growth among highest in world – Study

According to the study by Global Research, UAE’s real economic growth rate, which excludes the direct impact of changes in oil prices, is among the highest in the world. It said that UAE has achieved a compound annual growth rate of 9.3% in the past 5 years.

Construction, real estate, banking and tourism helped to boost the UAE’s nominal gross domestic product by 16.5% to AED 698.1 billion in 2007. The real gross domestic product is believed to have grown by 7.4% to AED 420.2 billion in 2007.

But despite the recent successes of diversification efforts in some of the emirates, the oil and gas sector still contributed 35% to the UAE’s GDP in nominal terms in 2007 and continues to be critical for the country’s economic growth. The Abu Dhabi Chamber of Commerce & Industry said that the emirate’s economy will grow by 8.2% in 2008 and 13% over the coming years.

Global Research report said that, with oil prices likely to remain relatively high over the next few years, the country’s economic boom looks set to continue. It added that "Going forward, the government’s main challenges include pushing ahead with diversification into more labor intensive activities and leveraging the emirate’s strong hydrocarbon sector to stimulate and support broader economic growth."

The UAE’s growth momentum continued in 2007, albeit at a more moderate level than before because oil production fell as a result of the country’s commitment to the OPEC.

According to analysts, prudent government spending at federal and emirate levels led to a decline in the non-oil fiscal deficit as a percentage of GDP in 2006. At the same time, a number of large investment projects are being undertaken by public and quasi-public entities outside the budget in the hydrocarbon, infrastructure, real estate, and tourism sectors, as a result of which government debt has increased. However, as a percentage of government revenues it is on a declining trend.

The report said that "The efforts of the government have started to bear fruit with the UAE fast emerging as an important hub for international trade, finance and tourism. It continues to attract large inflows of foreign direct investment and expatriate workers and is increasingly playing an important regional economic role."

Yemen LNG syndicates USD 2.64 billion project loan bankers

Reuters reported that the USD 2.64 billion financing backing Yemen's liquefied natural gas project has launched to syndication.

French oil company Total is the main sponsor for the USD 4 billion liquefaction plant in the port of Balhaf on the southern coast of Yemen. It will be able to produce 6.7 million tonnes per year of LNG. The project financing comprises a USD 1.44 billion senior limited recourse facility as well as a USD 1.2 billion loan that has a guarantee from Total.

The USD 1.44 billion facility is split between a USD 750 million bank funded term loan and 3 other bank funded loans with guarantees from one of three export credit agencies namely Export Import Bank of Korea, Nippon Export and Investment Insurance and France's Coface.

In addition, Japan Bank for International Co operation and KEXIM are together expected to provide direct loans of USD 360 million. The Coface loan totals USD 450 million, the KEXIM loan is USD 160 million and the NEXI tranches is USD 80 million. All three have a maturity of 15.75 years.

Bank of Tokyo Mitsubishi UFJ, BNP Paribas, Citigroup, ING, Royal Bank of Scotland, Societe Generale and SMBC are initial mandated lead arrangers and book runners on the USD 1.44 billion and USD 1.2 billion facilities, with Calyon joining the lenders on the Total guaranteed loan.

Yemen LNG has agreed three 20 year sales contracts for its output with Korea Gas Corporation, Total Gas & Power and Suez LNG Trading. As well as Total, the project is sponsored by US Hunt Oil, Yemen Gas Co, SK Energy Co, Korea Gas Corporation, General Authority for Social Security and Pensions of Yemen and Hyundai.

China SS output to rise by 23% in 2008 - Macquarie

It is reported that an analyst with Macquarie Group Ltd said that China, the world's biggest producer of stainless steel, may raise output 23% in 2008 because of strong domestic demand and plant expansions.

Analysts and traders said production output may rise to 9.1 million tonnes from 7.4 million tonnes in 2007. The increase would support Chinese demand for nickel and chrome, ingredients used to make stainless steel.

According to Macquarie, China, which overtook Japan as the world's top stainless steelmaker in 2006, is building new capacity for the alloy as demand from carmakers and kitchenware manufacturers rises. The country will become a net exporter of stainless steel in 2009.

Analyst Bonnie Liu said as long as producers make a profit, the government doesn't have the capacity to stop them from increasing output. He said recent recovery in stainless steel demand and increases in coking coal prices will boost nickel prices in a near term. Gains in Chinese nickel imports were a natural result.

Chinese overflowing FOREX reserves to propel overseas acquisitions

Xinhua reported that China has accumulated at least USD 2 trillion of foreign exchange assets over the past 30 years, which is expected to stimulate more mergers and acquisitions overseas.

Mr Guo Shuqing chairman of China Construction Bank said contrasting the fast growing hoard held by government and residents, China's fixed-assets due to overseas investment reached USD 100 billion by the end of last year, which is obviously disproportionate with the huge stockpile.

Mr Jiang Jianqing chairman of ICBC's on the ongoing China Economic Development forum said Chinese banks are expected to stage more M&A abroad also a challenge for them.

Mr Guo said on the forum considering clients demand and risk dilution, Chinese banks are eager to go global, stressing CCB sticks to localization, other than direct control of the banks. He cautioned Chinese banks to be careful because of their lack of experience.

Mr Jiang Jianqing said compared with leading global banks, overseas performance is still weak in Chinese banks. Overseas assets account for only 3% of the total, while overseas profits take up 3.6%. He noted the Chinese banking sector has gradually strengthened its presence after going public and introducing strategic investors globalization is a must trend for them.

Anben to acquire Lingyuan Steel Soon

It is reported that Anben Steel Group is in the process of purchasing Lingyuan Steel, hopefully to make it the first deal after its real combination.

As per report Anben Group had wished to acquire Lingyuan Steel as early as starting its merged company. This is echoed by an official who said talks with Lingyuan Steel began in 2005, when Angang and Bengang were also under negotiation of combination.

During the CPPCC and NPC sessions, Mr Zhang Xiaogang GM of Angang's noted Anben Group is likely to achieve substantial re-composition within this year while Mr Yu Tianchen chairman of Bengang's also said definitely the re composition plan should be released after the sessions. Once this completes, acquisition of Lingyuan Steel will be picked up.

Lingyuan Iron and Steel Company is one of a small number of domestic enterprises which have owned mines, can guarantee 30% iron ore materials supply for iron and steel companies. It is the reason that Anben Group desires to purchase Lingyuan Steel. The domestic experts believe that after the acquisition, Anben Group will have steady upstream channels, and it can even ignore the unfavorable factor that international iron ore price rise. In fact, the number of steel enterprises that want to perfect the steel industrial chain is majority. China Baosteel, WISCO etc gained overseas ore mining rights like that modes.

Iron ore price negotiations – China threatens to stop Australian purchase

It is reported that Mr Chen Xianwen vice chairman of China Iron & Steel Association in Beijing that both buyer and seller can not afford hostility as they are inter dependent.

Mr Chen Xianwen said that if Rio Tinto and BHP ask for higher prices, Chinese steel companies may refuse to purchase iron ore from Australia. He indicated that higher price would make iron ore from Australia lose competitiveness comparing with iron ore from Vale.

He said that “Iron ore imported from Australia takes 40% in total import volume in China, but if the price is not competitive, Chinese steel companies would not purchase iron ore from Australia and it should definitely be a great loss for Australia.”

Mr Chen Xianwen noted that Chinese steel companies are not satisfied because Rio Tinto supplies too much iron ores to spot market. He believed that it has broken obligation listed in the contract signed between each other.

Chronology of Chinese trade barriers for steel export

It is reported that Mr Lou Dingbo assistant to GM of Baosteel Iron & Steel Co in the sixth steel market seminar last week gave a specialized analysis on the current international trade environment facing China's steel.

He said that China's current policy is not supportive to fast growing steel export and informed that following measures have been taken by the Chinese government since 2006 to curb steel exports

Stone laid for Baosteel JV Nanjin Automotive Mould

It is reported that on March 28th 2008, the new factory of Nanjin Automotive Mould Company was founded. Baosteel Group, Shanghai Automotive Industry Group and Dong Hua Company laid its foundation at Nanjing Pukou high tech development zone.

Baosteel is the strongest steel production enterprise in China, Shanghai Automotive Industry Group is the strongest car manufacturing company in China, Dong Hua Company is the joint venture of Shanghai Automotive Industry Group and Nanjing Yuejin Group.

In order to further implement industrial development policies, and promote the development for the enterprises in the Yangtze River Delta, Baosteel and Shanghai Automotive Industry Group, Dong Hua Company formally signed cooperative agreement with Nianjin Automotive Mould Company on February 28th this year.

The total investment of the new factory of Nanjing Automotive Mould Company is CNY 432 million, the main equipments are introduced from abroad, it will construct 3 automation punch production lines with domestic first-class level and one welding pine with four gateway and two covers. It will provide the main parts for Shanghai Automotive Industry Group and Nanjing Automotive Group. It is expected to be put into operation by the end of September next year.

Minmetals to purchase ferrochrome mine in Africa

It is reported that Minmetals Development, a listed subsidiary of Chinese trading house and steel mill equipment supplier Minmetals Group, plans to acquire exploration rights to the Naboom ferrochrome mine in South Africa at a cost of USD 6.5million.

Minmetals Development said the purchase is a good example of its strategy to develop upstream flows and overseas investments for the steel industry.

Minmetals spokesman said “Working with the South African mine’s owners, Mission Point and Versatex, we will further secure raw material supplies from overseas.”

China imports more than 90% of the chrome needed for its production of stainless steel. China’s economic planner NDRC has still to approve the purchase. If granted, Minmetals will carry out further development upon completion of feasibility studies.

Meigang HR plate mill crosses 20 million tonnes since inception

It is reported that up to March 2008, Meigang’s 1442 HR Steel Plant has produced 20.55 million tonnes of HR plates since it put into production in November in 1994.

After the completion of the production line, the company completed