Indian steel sector announces 31 million tonne CAPEX in Q4 of 2007-08

ASSOCHAM Investment Meter report said Indian steel majors have lined up investments of as much as INR 892.4 billion during January to march 2008 to fund their capacity expansion plans totaling 31 million tonnes of steel projects.

The study found that Orissa attracted almost half of the total CAPEX announcements made in the steel sector with planned investments of about INR 450 billion.

CAPEX in INR billion
Capacity in million tonnes

The study further found that almost 90% of the total investments planned by the steel majors would be made in building up of new steel plants and the remaining 10% would be utilized in expansion of existing plant capacity and building up of steel processing units among other activities.

Mr VN Dhoot president of ASSOCHAM said that “Even if two third of the investment announcements materialize, the resultant capacity expansion would be instrumental in easing the pressure on prices in long run.”

Mr Dhoot added that “It is imperative to maintain investment friendly environment in order to ensure that planned investments are actually made and capacity gets enhanced as quickly as it is possible.”

SAIL inks MoU with BEML for crucial equipment supply

Steel Authority of India Limited has signed a MoU with Bangalore based Bharat Earth Movers Limited for supply of crucial equipment required for the company's present operations as well as for its ongoing modernization & expansion program.

Mr VK Gulhati director (technical) of SAIL and Mr M Poongavanam director (mining & construction) of BEML signed the MoU in the presence of Mr VS Natrajan CMD of BEML.

Under the MoU, BEML will supply the required equipment at a mutually agreed price for the next 3 years. The agreement will also enable SAIL to contain maintenance cost, as BEML will undertake maintenance of the equipment for their entire economic life with guaranteed equipment availability.

SAIL's growth plan, which envisages its hot metal production capacity rising to over 26 million tonnes by the year 2010, will call for a quantum increase in raw material requirement. This is planned to be sourced not only from the company's existing mines but also from new mining blocks. As a result, the requirement for crucial equipment like dumpers, shovels, dozers, etc, will rise substantially, both in SAIL mines and plants.

Steel firm may roll back price cuts – Report

It is reported that, taking the steel industry by surprise, centre has notified export duty on steel items which was pending since April 29th 2008.

The move comes days after Prime Minister Dr Manmohan Singh’s meeting with the steel industry, which resulted in price cuts in the range of INR 4,000 to INR 2,000 per tonne with the understanding that the government would not go ahead with the export cess.

The industry had also agreed to desist from price hikes for three months and presented Mr Singh with a set of demands which will help in offsetting increasing input costs.

According to a notification issued on May 10th 2008, 15 categories of steel products would be liable for export cess in the range of 15% to 55%. The discussion over export duty on steel items indicates the persisting differences within the government over the proposed steps to curb rise in prices of these products.

While the export duty did not come into effect till the notification was issued, the steel ministry had raised several issues and the commerce & industry ministry had also presented its views.

In the meanwhile, Dr Singh met steel industry representatives last week and cut in steel prices were announced as a mutually acceptable solution. Therefore, the steel industry was under the impression that the export cess would not be notified now.

TATA urges uninterrupted gas supply for steel mill in Bangladesh

The Nation reported that TATA would not go for any investments in steel without guarantee from the Bangladesh government on uninterrupted gas supply. It made it clear as the Bangladeshi government reopened formal negotiations with it on its record USD 3 billion investment plan.

Mr Allan Rosling executive director of TATA Sons said that "It is as simple as that, if gas is not supplied on a secured basis then we would not go for steel in Bangladesh. There are a lot of other countries who have gas. Bangladesh’s current gas situation is not as we wished it to be."

He, however, did not dismiss other investment opportunities. But he said that "The new coal policy, once published, would open up new avenues for further discussions. At this stage, the meeting was useful and effective."

It may be noted that senior TATA officials led by Mr Alan Rosling met Mr Kamaluddin Ahmed executive chairman of Board of Investment nearly two years after the conglomerate postponed what would be the biggest single foreign investment in Bangladesh.

Meanwhile, Bangladesh government is yet to reply positive or negatively, as TATA said that if the government was unable to provide gas then it would not invest in steel in Bangladesh.

Mr Kamaluddin Ahmed said that they discussed the resource position of Bangladesh. He added that "We informed TATA about our demand supply situation of gas and discussed the upcoming coal policy. We neither agreed nor disagreed to provide them gas."

In 2006 TATA offered to build a steel plant, two power plants, a fertilizer plant and a coal mine, after upgrading a 2004 plan.

Mr Syed Manzer Hossain TATA's Bangladesh chief said that it is encouraged by positive indications from the Bangladesh government. He added that "Yes, there is an intention to move it forward. It is a positive development that we formally resumed discussion after two years. Lot of developments took place on both sides and we have to look at those developments."

TATA submitted a USD 2.5 billion investment proposal way back in 2005 and revised it later to around USD 3 billion to set up a 1000 MW power plant, a steel mill with an annual production capacity of 420,000 tonnes and a one million tonne fertilizer unit in Bangladesh.

Although the negotiations came to a standstill in 2006, significant progress had been made. TATA wanted a guaranteed supply of 1.25 trillion cubic feet of gas for a 15 year period and around 3 million tonnes of coal supply to TATA per annum and upgrading of gas pipeline from the current 24 inch diameter to 30 inch diameter. But the government of Bangladesh found some of the demands made by TATA were impossible to be fulfilled and the talks faced a setback.

POSCO to part fund Haridaspur Paradip railway project

SNS reported that the much crucial Haridaspur to Paradip railway project, which has been plagued by meager allocation of funds every year, now has a ray of hope, from the industries expressing willingness to cooperate. The big names in industrial circles have come forward to extend support for early completion of the project, with POSCO alone assuring INR 27 crore.

Mr Sasank Patnaik official at POSCO said that "While half of the assured sum INR 13.50 crore was given to the union railway ministry recently, the second half would be provided as soon as possible."

Apart from POSCO, TATA, ArcelorMittal, SAIL, Jindal, Paradip Port Trust and four other big biz players have agreed to help the expedition of the project.

Sources said that the project, commissioned in 1999, has gone through acute financial crunch. With inordinate delay, the project cost has gone up to INR 600 crore. While the allotment for the 2006-07 financial year was INR 20 crore only, it has been INR 80 core in recent railway budget.

The other problem delaying the project is the non completion of land acquisition yet. About 1,780 acres of land including 1,300 acres of private land in Jagatsinghpur, Kendrapada and Jajpur districts are required for it.

Anti POSCO group forms suicide squads in Orissa

SNS reported that POSCO Pratirodha Sangram Samiti, which is leading the anti displacement movement has formed suicide squads in Nuagaon panchayat area.

As per report, the eight squads took oath at Sarala temple and vowed to lay down their lives protecting motherland today to coincide with the Mother’s Day

Mr Chitta Swain, who led the team which formed the suicide squad, said that "Goddess Maa Sarala is the presiding deity of Jagatsinghpur district and she will help us protect our land as well as livelihood. Everybody celebrates Mothers Day but nobody thinks about Mother Earth and the land grab that is going on. Eighty people from Nuagaon have joined the squad."

Mr Swain said that they have taken oath to prevent the entry of POSCO officials, government officials and police to the proposed plant site. They have threatened to take hostage these officials if they would attempt to enter in POSCO site from today to onwards. He added that "Soon a suicide squad comprising of women will be formed and such a step will be replicated in all the 3 panchayats which fall under the proposed project area."

Saria steel down on ample supply

BL reported that the wholesale prices of saria fell by INR 100 per tonne in New Delhi on stockists selling. In the saria section, kamdhenu saria 10mm and 16mm to 25mm were down by INR 100 each at INR 39,400 and INR 39,500 per tonne respectively.

Traders said that leading steel makers' decision to reduce prices of flat products by INR 4000 per tonne and those of rebars and structural steel by INR 2,000 per tonne mainly influenced the sentiments.

No clarity on export duty on steel supply to SEZs

Mr RS Gujral director general of foreign trade said that there is no clarity on whether steel supplied by domestic units to special economic zones will be subject to export duty.

Responding to an issue raised by exporters at an open house organized, Mr Gujral said that it was not clear whether such supplies to SEZs by domestic manufacturers would be eligible for Duty Entitlement Pass Book and other such concessions.

Federation of Indian Export Promotion Organizations, Pharmaceutical Export promotion Council and Engineering Export Promotion Council have jointly organized the open house with the director general of foreign trade.

EEPC expressed doubt if automobile components and parts constituted part of engineering products as commercial banks excluded them from this category whereas Reserve Bank of India brought them under engineering products.

Transworld group to buy two more vessels from China

The Hindu reported that Mumbai based Transworld group, which owns 16 shipping vessels and operates 13 feeder services, has placed an order for 2 more new vessels of 1,800 TEU capacity from China.

Mr Ramesh Ramakrishnan chairman of Transworld group said that the new ships are to be built at the Wenchong Shipyard in the Guang Zhau province of China at a cost of over USD 80 million. He added that the logistics division of the shipping conglomerate formalized an exclusive contract with Maruti Udyog Limited for the movement of Maruti cars to Kerala through coastal shipping mode. It is now carrying 250 cars per week and the figures were likely to be increased shortly.

Mr Ramakrishnan said that the finalization of this contract would definitely increase the company’s business in coastal shipping, which was in the range of 1,100 TEUs. He added that the container throughput of Orient Express Lines, the flagship company’s of the group, had grown steadily over the years and in the year 2007, it had moved close to 500,000 TEUs.

Government reviewing export duty on products – Mr Pandey

Sources close to union finance ministry told CNBC-TV18 that steel export duties are part of the Parliament approved Finance bill and had to be notified. The sources also revealed that exemption notification is needed to withdraw duties.

Mr RS Pandey union steel secretary told CNBC-TV18 that the final decision on export duty would be announced soon. He said that the government was seriously reviewing export duty on steel products at around 5%, 10% or 15%.

According to Mr Pandey, other demands apart from export duty are also under consideration. He said that "The revenue department told us that it was a technical necessity after having got the President’s assent on the bill, which was passed by Parliament. It had to be notified. Major producers had met the Prime Minister recently and had submitted a list of demands. One such demand includes a review of the decision to impose export taxes on steel products. That is under serious examination and a view would emerge very quickly."

He said that "We have earlier clarified that when the price cut was announced, there was no condition along with the price cut. There was a list of demands and one such demand is about export taxes. So, that is under serious examination."

Vessels over 25 years old face operational curbs

It is reported that, alarmed by the recent spate of accidents, director general of shipping has banned the use of chartered vessels older than 25 years in India's territorial waters in foul weather.

According to a circular issued by India's maritime regulator on April 25th 2008, the step is initiated following the suggestions from a working committee set up by union ministry of shipping, road transport & highways in July 2007 to study the trend in rising marine accidents in Indian seas.

At least 18 accidents were reported within 8 to 10 weeks in the monsoon last year.

By modifying the existing guidelines for chartering of vessels, director general of shipping has barred all the charter vessels more than 25 years old (30 years in case of gas carriers), including all cargo vessels, oil or product tankers and dredgers, from plying in the Indian waters.

The circular said that old vessels would not ply in the Bay of Bengal along the east coast for a period of 7 months from May 1st 2008 to November 30th 2008, while in the Arabian Sea along the west coast the vessels cannot be used between June 1st 2008 and August 31st 2008. In addition, the circular also states that charted vessels can only ply in the Indian waters if they are classified by the Indian Register of Shipping or any other government classified societies.

Mr Samuel Darse deputy director general of shipping said that "Since analysis of the accidents over the last 3 years showed a significant correlation between the age of vessels and the break downs that caused these casualties, the committee recommended the revision of guidelines to restrict the age of vessels and a tighter regime of survey and inspection."

According to industry sources, in 2007 the Indian fleet stood at 850 vessels, which includes overseas vessels of different categories, crossing 900 million gross tonnage for the first time. The average age of Indian fleet as on October 2007 was 18 years.
Mr S Hajra CMD of Shipping Corporation of India said that "Even though it cannot be firmly said that age of the vessel was one of the grave reason for accidents, but if the government considers that this move could reduce accidents and then one should wait for its effect and not jump to conclusions."

Mr Anil Delvi CEO of Shreyas Shipping said that "We had put forward this argument with the ministry and the DGS but they have assured us that IRS was geared up for the new challenge." He added that there is any evidence to show that past accidents were linked to the age of the vessel. However, he hoped that the DGS could always relax the rule if it was not effective.

Industry players have also urged the DGS to make public the accident inquiries in future cases.

Japan to fund INR 8,582 crore in India’s infra projects

It is reported that Japan has committed to give India INR 8,582 crore as assistance for developing 9 infrastructure projects.

The assistance will help in undertaking infrastructure projects, including Kolkata metro project, Hogennakal water supply project and Tamil Nadu urban infrastructure project.

The phase II of the Delhi metro project will also be funded by Japan. This is the highest ever official development assistance by the Japanese government to India.

Jharia residents adopt new moves to save historical township

Ranchi Express reported that the latest approval of the much awaited Jharia Action Plan by Jharkahnd government has now added more fuel to the ongoing agitation by the residents in protest against what they term as a fresh move to end the existence of the historical township.

The situation was further got aggravated after the central trade unions and the political parties joined the movement with the Jharia Coalfields Bachao Samiti that has been spearheading the agitation to save the township. The JCBS is convening an emergency meeting to chalk out the further course of action in view of the state government's initiatives to approve the rehabilitation plan.

Bhavnagar Energy to set up power plant

Projects Today reported that Bhavnagar Energy Company Limited has initiated steps to set up a 500 MW to 600 MW lignite based pithead power project, based on circulating fluidized bed technology at Padva in Gujarat.

Mr Mehul Danait finance director of Bhavnagar Energy said that the project would entail an investment of INR 2,000 to INR 2,200 crore depending on the final picture emerging from the bid process. He added that "It is in the process of seeking bids for general civil and structural works. The response for the bidding process for supply of steam generator units and steam turbine generator units, both with associated auxiliaries, has been encouraging. Power generated from the plant will be exported to the state grid."

BECL is a JV company formed by 7 state PSUs, namely Gujarat Power Corporation Limited, Gujarat State Investments Limited, Gujarat Mineral Development Corporation Limited, Gujarat Industries Power Company Limited, Gujarat Alkalies & Chemicals Limited, Gujarat Narmada Valley Fertilizers Company Limited and Gujarat State Fertilizers & Chemicals Limited.

MAN Group to set up rail wheel plant in India

Germany based MAN Group will enter the business of manufacturing premium wheels for high speed trains in India largely catering to the export market. It has finalized a fellow German technology partner and is in advanced process of selecting an Indian partner as a third player in the JV project.

The initial investment for the project will be USD 310 to USD 320 million to be shared among the partners. Both German companies will hold 51% in the JV only if an Indian player in taken aboard. An announcement to this will be in June 2008.

MAN Group has finalized the site of the plant which would be located in the steel rich producing area of central India. It will set up two units forging and finishing within one of India's special economic zones. The plant shall be operational in the next 24 to 30 months.

The plant will have an initial production capacity of about 180,000 units, which would be eventually ramped up to 300,000 units a year. Of this, about 15,000 units would be targeted to be sold in India primarily with the rest to be exported to Europe, South America and Asia Pacific regions. About 60,000 units of black wheels will be exported directly to Germany from here.

The plant will essentially make high speed compliant train wheels suitable for the German and other European markets. Besides, it will also make wheels for the metro rail transport and other locomotives.

A MAN Group official said that "The demand from the Indian market for train wheels is about 15,000 units a year, but our facility will be producing much more than that basically to cater to the huge export market. We will be tying up with a major European innovative wheel manufacturer."

In addition, the group announced that it will launch premium heavy trucks used for applications in the mining and construction industry in the domestic market in the second half of the year. These trucks will be marketed in India through its Pune based JV partner Force Motors and will be made available through direct imports from the company's manufacturing base in Italy. It intends to sell about 500 to 800 such premium trucks in India by 2010-11.

MAN Force Trucks, a 30:70 JV, has been selling medium and heavy commercial vehicle in the domestic market having a capacity of 16 tonne or more. It aims to export 12,000 units, out of the installed plant capacity of 24,000 units to Asian and African countries by 2010.

BHEL to invest INR 1000 crore in Tiruchi plant

Bharat Heavy Electricals Limited has announced that it would invest INR 1,000 crore in its Tiruchi plant in the current fiscal to increase boiler capacity.

Mr RN Misra executive director of BHEL Tiruchi Complex said that "We are planning to invest INR 1,000 crore in the Tiruchi plant to increase the boiler capacity from 5,750 MW to 10,000 MW by June or July 2009. The current order book of Tiruchi plant stands at INR 7,200 crore. We would take this figure to INR 17,000 crore in 3 years time."

BHEL is contemplating more joint ventures with other state electricity boards. It has already designed 800 MW boiler, but the order for the same are yet to be placed.

It may be noted that BHEL and NTPC Limited formed 50:50 JV on April 29th 2008 to carry out engineering construction procurement contracts for power plants and infrastructure projects, manufacture and supply equipments in India and abroad.

FM to provide funds for Hyderabad metro project

Union finance ministry has agreed in principle to provide funds worth about INR 2,000 crore for the Hyderabad metro rail project estimated to cost over INR 10,000 crore, under the public private partnership.

The funds could now be released to the state government in a phased manner to implement the project. Four bidders, including a consortium of Reliance Energy and Canada based Bombardier, have been pre qualified for the project and technical bids have been invited.

Hyderabad Metro Rail Project, to be implemented on the pattern of Delhi Metro, involves development of 3 elevated corridor of total length of 67 kilometers with real estate rights along the corridor.

TIL plans mobile cranes manufacturing unit in WB

Tractors India Limited is planning to manufacture mobile cranes in West Bengal in a phased manner. It will acquire about 200 acres of land for the purpose and first phase of the project is estimated to cost around INR 200 crore.

The proposed plant will produce components for Germany based Grove Worldwide. It hopes to start commercial production by the first quarter of 2009.

750 MW and provide 1,050 MW to Gujarat

Rebar price drop weakens demand

It is learnt that small and medium real estate developers and engineering contractors are now relived of the increasing trend in rebar prices in the first 4 months of this year and are adopting cautious approach by limiting their buying to bare minimum, resulting in week demand scenario.

During the period, when prices were surging, the entire supply chain was accumulating stocks anticipating higher prices but with the government intervention and announcement of freezing prices for 3 months by steel majors, the market sentiment is quite week. The supply chain cleared their inventories during this period and is now buying only limited quantities anticipating stable if not further drop in prices.

This has resulted in a severe drop in sales for almost all steelmakers including from the secondary sector.

Although steel majors such as TATA Steel, SAIL and Vizag Steel announced price cut of INR 2000 per tonne for rebars last week, the smaller rebar makers have reduced their prices by substantial amounts to bring their prices below INR 40,000 levels on landed basis.

Indian cold rollers allege arbitrary pricing by HR makers

It is reported that secondary steel producers have complained to the finance minister that after announcing conditional price reduction of up to INR 4,000 a tonne, the major steel producers, both in private and public sectors, have started to arbitrarily fix the ratio between the export and domestic sales of their customers in order to extract higher prices.

Cold Rolled Steel Manufacturers Association of India, in a letter to the Mr P Chidambaram union finance minister, has complained that the ratio between domestic and export sales are being arbitrarily fixed.

Mr SC Mathur ED of CORSMA said that the major producers are offering a portion of the total quantity at reduced prices and charging the pre reduction prices for the remaining quantity assuming that it would be used for export production.

Mr Mathur said that though the major producers are in no way equipped to monitor how much quantity is being exported by a secondary producer, they are charging higher prices by fixing arbitrary ratios which should immediately be stopped.

He added that "The secondary producers are trying to benefit from lower domestic prices and using Indian steel for making export products despite their commitment to the contrary to the government. If the government wants it can check out the customs data and take penal measures."

It may be noted that major steel producers, while announcing the price reduction earlier this week after a meeting with the Prime Minister, had made it clear that the reductions would be applicable only for steel that gets consumed in India either directly or after processing.

Bangladesh seeks USD 500 million loan from ADB

The International News reported that Bangladesh has sought nearly USD 500 million in loans from Asian Development Bank to install 2 power plants with the total capacity of 175 MW.

An official of government’s power division said that a power plant with 50 MW capacity would be set up at the Karnaphuli hydroelectric plant in Chittagong and another will be installed at Barapukuria in Dinajpur district with a 125 MW capacity. He added that the funds will also be used for installing and upgrading transmission and distribution networks.

The official said that "Often we are unable to transmit and distribute the electricity to the users due to very weak and age old system, so we need to upgrade it. We will require nearly USD 1 billion to upgrade transmission and distribution networks systems when the power generation capacity will be at 8,000 MW in 2012."

Bangladesh plans to raise its electricity generating capacity to 8,000 MW from the existing capacity of up to 4,000 MW. Bangladesh’s only hydro electric power plant in Kaptai has 5 units with 50 MW power generation capacity each but at the moment all the units are able to produce less than 200 MW of electricity as some of them are very old. The coal based Barapukuria plant has two units with 125 MW capacity each.

It may be noted that Asian Development Bank provided USD 465 million in 2007 to Bangladesh under the Sustainable Power Sector Development Program. At present Bangladesh faces up to 1,500 MW of electricity shortages daily.

BHEL gets award for Excellence in Cost Management 2007

PTI reported that Bharat Heavy Electricals Limited has won the 'ICWAI National Awards for Excellence in Cost Management 2007.'

The annual award is presented by the Institute of Cost & Works Account of India to corporate entities for excellence in cost, quality and delivery.

During 2007, BHEL recorded the highest ever turnover of INR 21,608 crore, crossing the INR 20,000 crore mark for the first time. It aims to become a INR 45,000 crore firm by 2011-12 and has unveiled a 'Strategic Plan 2012' that would enable it to grow at an annual growth rate of 20%.

Indian Railways to sign MoU with French Railway

Indian Railways is scheduled to sign a MoU with French Railway on May 14th 2008 to expand cooperation in high speed rail corridor and maintenance and upgrading of tracks and signaling system.

The MoU will be valid for 3 years and it can be extended for a year if both the counterparts desire so.

Update on solar energy generation in India

During the Tenth Five Year Plan period, the Ministry of New and Renewable Energy had sanctioned projects for installation of 1500 kWp capacity of grid connected solar photovoltaic power plants in the country and projects for a total capacity of 900 kWp have been installed.

The Ministry has fixed a target of 50 MW for setting up grid connected solar power plants during the Eleventh Five Year Plan. In order to achieve this, a new demonstration program to support MW size grid connected solar power plants has been announced. Under this program the Ministry will provide generation based incentive up to INR 12 per kWh for the power actually fed to the grid from a solar photovoltaic power plant and up to INR 10 per kWh from a solar thermal power plant, taking into account the tariff given by the state utility, for a maximum period of ten years. The solar power projects are to be set up on build, own and operate basis. Preference will be given to projects in the States, where the concerned State Electricity Regulatory Commissions have announced tariff for solar power.

During 2008-09, an amount of INR 123.25 crores has been allocated for various activities relating to promotion and popularization of solar energy in the country, including an amount of INR 19.75 crores for setting up grid connected MW size solar power plants.

TCIL not to pay dividend for 2007-08

Tinplate Company of India Ltd has informed BSE that its board of directors at their meeting held on May 9th 2008 has not recommended any dividend in respect of the year ended March 31st 2008.

Everest Kanto Chinese unit begins production

Everest Kanto Cylinder Limited announced that its wholly owned subsidiary in China EKC Industries (Tianjin) Co Ltd has successfully completed the trial production phase and commercial production has been commenced in the first week of May 2008.

JBM Auto and Ashok Leyland for sheet metal component JV

It is reported that JBM Auto has entered into a JV agreement with Ashok Leyland at Chennai for supplying of sheet metal components for their G90 Cab and G-90 FES.

JV will set up state of art facilities at Pant Nagar in Uttarakhand at an estimated investment of INR 100 crores. The JV will have large pressing and welding facilities.

NTPC earmarks 0.5% of profit for green growth

NTPC Limited has decided to allocate 0.5% of distributable profit annually for its “Research and Development Fund for Sustainable Energy”. This fund will be used for sponsoring and undertaking research leading to development of green and clean technologies.
The research project may include development of Coal Gasification Technology for commercial use, reducing cost of harnessing Solar Energy, LED lighting, improvement in efficiency of its power stations etc.

The release said that “NTPC is committed to controlling CO2 per unit of power generation with portfolio management, adoption of the State of the art technology with special thrust on the renewable energy sources, develop one million square feet of Green Building Space within NTPC premises by the year 2017, spearhead awareness campaigns nation wide to orient the people, strengthen and leverage the Government’s efforts in this area.:

It added that “With its priority of generating clean power, the long-term focus areas of NTPC shall cover re-powering and replacement of old units, introduction of ultra super critical technology, modifying the fuel portfolio with higher share of renewable, clean coal technologies.”

NTPPC is undertaking massive afforestation covering vast areas of land in and around its projects and till date it has planted more than 18.37 million trees at its projects. As a result of pursuing sound environment management systems and practices, all NTPC stations have been certified with ISO 14001 and OHSAS 18001 by reputed national and international certifying agencies.

RINL bags Enterprise Excellence Award from IIIE

Rashtriya Ispat Nigam Limited has been awarded “Enterprise Excellence Award-2007’ for their financial and operations strength under five perspectives such as Financial strength, Achievements, Internal Processes, Innovation & Learning and External Customer Orientation by the Indian Institution of Industrial Engineering.

The award in the form of Golden Shield and a Certificate will be presented in a function on May 16th 2008 during the 11th CEO’s Conference which would be held at Goa.

S-E Rly freight earnings up 39% in April

BL reported that the South Eastern Railway handled 9.9 million tonnes of originating freight traffic in April 2008 up by 17.5% YoY. However, the freight earning during the period at INR 553 crore went up by 29% YoY.

1. Iron ore - 6.4 million tonnes
2. Coal - 1.5 million tonnes
3. Pig iron and steel -0.82 million tonne
4. Cement - 0.54 million tonnes
5. Steel plant raw materials except iron ore - 0.21 million tonnes
6. General goods 0.28 million tonnes

GTB to launch Fe 500 TMT in Sri Lanka

Asian Tribune reported that Sri Lankan rebar maker GTB is planning to launch Thermo Mechanically Treated Bars with superior mechanical property. GTB has used THERMEX thermo mechanical process developed by QEK of Germany.

As per report, technology from Thermax of Germany is used for the first time in Sri Lanka produce GTB TMT 500.

SAIL to set up rebar mill at Kangra in Himachal

It is reported that Steel Authority of India Limited is planning to set up a rebar mill in Kangra district of Himachal and the work would start next month.

The plant, which would be set up at a cost of little over INR 100 crore, would be completed within this year. Apart from TMT, wire drawings and corrugated sheets would be manufactured in the plant.

As per report, representatives of SAIL have even identified the land and struck a deal. SAIL had demanded at least 200 kanals which have been made available by the state government.

Ramsarup to earn INR 690 million through carbon credits

It is reported that Kolkata based steel wire maker Ramsarup Industries Ltd will earn INR 690 million over 7 years by selling carbon credits from its power plant.

Ramsarup Industries Ltd in a press release that “The plant will generate up to 20 MW power per hour using waste gas, which will help in reducing dependence on the power grid, and reduce carbon dioxide emission by 114,996 tonnes every year. It will earn one carbon credit for reduction in each tonne of carbon dioxide.

Mr Ashish Jhunjhunwala MD told Reuters that it has contracted about 35% of the total carbon credit at EUR 11.75. he said "We are in talks to sell these carbon credits. We have entered into informal agreements with some parties. For the 35%, we have completed the deal."

Sumitomo plans to revise domestic pricing of seamless pipes

Sumitomo Metal Industries Ltd announced that it has begun negotiations to revise domestic pricing of seamless pipes for all domestic customers.

The revision will apply to all domestic customers spot sales and long term contracts of seamless pipes. The revision will apply to seamless pipes produced from July 2008 onwards. The revision will be an incremental price increase of 10%.

Sumitomo Metals had implemented a price revision a 15% increase of seamless pipes produced in and after April 2008. Since then, the surge in prices of raw materials such as iron ore and coking coal has far exceeded our initial forecasts.

Summitomo said that in the current fiscal year ending March 2009, export demand of seamless pipes is expected to remain strong in the energy related sector. Domestic demand is also likely to remain strong, particularly in the construction machinery, industrial machinery, and plant engineering sectors. Under the circumstances, we are receiving some strong requests from our customers to increase supply of seamless pipes.

Gerdau Q1 revenue up by 23.8% YoY

Brazilian steelmaker Gerdau announced that its first quarter profit fell by 7.5% as costs from recent acquisitions and a strong local currency outweighed a sharp increase in sales.

Highlights
1. Crude steel production grows 25.1% in Q1 as compared to the same period in 2007, totaling 5.1 million tonnes.

2. Gross revenue reaches BRR 10.0 billion in the period from January to March this year, up by 23.8% higher than the same period in 2007.

3. Exports from Brazil generate revenues of USD 362.9 million, totaling 616,900 tonnes.

4. Net profit reaches BRR 1.1 billion in the quarter, with net margin of 12.2%.

5. EBITDA reaches BRR 2 billion until March this year, up by 30.4% higher than the value achieved in the same period in 2007.

6. Metalurgica Gerdau SA and Gerdau S.A. conclude capital increase of approximately BRR 1.5 billion and BRR 2.9 billion, respectively

7. Acquisitions announced and closed this year represent investments of USD 2.3 billion and business expansion abroad.

Nucor sets USD 120 sheet hike for June

Because of the increase of scrap prices, Nucor will raise the surcharge on sheet and SBQ bar prices by USD 120 per short ton from June 1st 2008 deliveries.

Nucor said that in the contract of May 2008 shipments, it had increased USD 170 per short ton. The benchmark scrap price determines the surcharge each month. Nucor's surcharge on sheet and SBQ bars upped by USD 380 per short ton since December 2007

(Sourced from YEIH.com)

Gerdau Ameristeel Q1 net income up by 22% YoY

Gerdau Ameristeel Corporation reported net income of USD 163 million for the first quarter ended March 31st 2008 up by 22.1% YoY as compared to net income of USD 133.5 million in first quarter 2007.

Gerdau Ameristeel net sales for the first quarter increased by 53.8% YoY to USD 2 billion from USD 1.3 billion for the three months ended March 31st 2007. For the first quarter, finished steel shipments increased to 2.4 million tonnes, an increase of 488,2000 tons from the three months ended March 31st 2007, primarily as a result of the acquisition of Chaparral Steel in September 2007. In comparison to the fourth quarter of 2007, which included the Chaparral facilities, shipment volume increased 9.5%. Average mill finished steel selling prices for the three months ended March 31, 2008 increased 24.4% YoY over the level in this same period in 2007 and 7% QoQ over the fourth quarter 2007 levels. EBITDA was USD 387.4 million as compared to EBITDA of USD 244.5 million for the three months ended March 31st 2007.

Gerdau Ameristeel said that for the three months ended March 31st 2008, metal spread, the difference between mill selling prices and scrap raw material costs, was USD 458 per ton, an increase of USD 84 per ton from the same period in 2007. The increase is primarily attributable to the higher margin Chaparral products.

Mr Mario Longhi president & CEO of Gerdau Ameristeel said that "Gerdau Ameristeel delivered another quarterly earnings record as strong global demand for steel has driven selling prices higher and provided us the opportunity to export our product globally. We offer a well balanced steel product mix of rebar, merchant and structural shapes, wire rod and flat rolled sheet which when combined with our expanding downstream business, has allowed us to deliver these attractive results.”

CSC updates for April 2008 production

Taiwanese steel major China Steel Corporation has given the following update on production during March 2008

In tones

In million TWD

CSC said that the revenue for April is TWD 20,427 million, which declines slightly by 0.09%. It added that due to machine maintenance in this month, production volume is 772,192 tones and sales volume is 835,637 tones, each declines by 12.77% and 6.66%, respectively.

Venezuela to pay right price for Ternium – Mr Chavez

Thomson Financial reported that Venezuela will pay what its considers the right price for Argentine steel business Ternium Sidor, which is 60% controlled by Argentina's Techint.

Mr Hugo Chavez president of Venezuelan in a broadcast over the weekend said that “We will pay what's fair, not the USD 4 billion that they are talking of. I have made it known to the boss of Techint we have seen the accounts and they have debts and taxes, they weren't paying taxes, they were declaring losses and they were taking all out of the country.”

According to the Venezuelan government, the steel works is worth around USD 800 million.

POSCO rated world’s most ethical steelmaker

According to Cobalance a Geneva based consulting firm Korea POSCO is the world’s most ethical steelmaker

Cobalance said that it calculated its ethical quote score by subtracting the number of negative news from that of positive news on companies between January 1st 2002 and March 31st 2008. The news includes media reports and documents released by civic groups.

The survey covered some 200 global companies, or 20 companies each in 10 industries such as cars, banking and chemicals.

POSCO ranked sixth among 16 iron and steel companies worldwide and first among the top four steelmakers, such as Nippon Steel and JFE of Japan and China Steel of Taiwan.

The Korean firm was also named the most ethically developing company and the company with the most positive news.

Rebar prices up in Japan

Japanese Tokyo D Bar Steel has announced to rise rebar price by USD 95.8 per tonnne for May orders which is the company’s fourth price rise in 2008.

Current price of rebar has reached USD 1,053 per tonne for 16mm to 25mm size. The mill is increased the prices in order to counteract the rising costs of scrap, freight and other ferroalloy. Moreover, it has cut 15% to 20% capacity for April to June in order to avoid demand fall.

(Sourced from YEIH.com)

PT Timah plans to acquire three coal mines

Reuters reported that Indonesia's PT Timah Tbk is planning to acquire three coal mines with total reserves of 50 million tones.

Timah has a mine in South Kalimantan which produces up to 1.4 million tonnes of coal a year, but the firm has been looking for new mines because of depleting reserves. It said that the company is aiming to sell 1.8 million tonnes in 2008.

Mr Gatot Hari Prasetio commerce director of Timah said that the company is working on a plan to acquire three coal mines in South Kalimantan and South Sumatra, but gave no details.

Mr Wachid Usman president director of Timah told reporters that his company could spend IDR 2 trillion on acquiring coal mines and about IDR 1.4 trillion on boosting output, exploration and business development.

Japan's crude steel production expected to up

According to the Ministry of Economy, Trade and Industry, Japanese steel mills plan to produce 30.94 million tonnes of crude steel in the second quarter, up by 96,000 tonnes as compared to the first quarter of 2008.

The demand for crude steel is expected to be 30.27 million tonnes an increase of 673,000 tonnes than last quarter and the output of common steel products is expected to be 21.483 million tonnes, dropped by 321,000 tonnes than the previous quarter.

(Sourced from YEIH.com)

Cuu Long Vinashin Steel ink USD 30 million contract with Macsteel

VNA reported that the Cuu Long Vinashin Steel Company has recently inked a USD 30 million contract with Macsteel of Hong Kong to export hot rolled plate steel to the US.

According to Vinashin, the mother company of the Cuu Long Steel, the first shipment of the product is scheduled to be delivered at the end of May 2008, marking the country’s first ever export of plate steel.

The Cuu Long Vinashin Steel Company is the first producer of hot rolled plate steel for the shipbuilding industry in Vietnam, rolling out its first products in December 2007

Malaysian builders hail steel decision

It is reported that the Master Builders Association Malaysia welcomes the Malaysian prime minister’s decision to abolish the ceiling price for steel.

Mr Patrick Wong president of Master Builders Association Malaysia said that the decision was an important milestone for the construction industry as currently contractors had been facing difficulty in obtaining steel bars at the ceiling price.

Mr Wong said that contractors would also have the choice of importing steel bars directly without applying for import licenses and were exempted from import duties.

First Ship to buy 3 vessels from Yang Ming

Reuters reported that Singapore's First Ship Lease Trust FSLT.SI will buy three container vessels from Taiwan's Yang Ming Marine for a total of USD 210 million.

The report said that the vessels will be leased back to Yang Ming for 12 years.

Mitsui to increase metal resource investments

JMB reported that Mitsui & Co will increase the investment for metal resources to JPY 160 to JPY 170 billion for fiscal 2008 started April mainly for existing projects of iron ore and nickel compared with JPY 150 billion for fiscal 2007.

Mitsui said that it also expands the utilization of recycling resources including ferrous and nonferrous scrap. The firm tries to secure metal resources under long term strategy toward 2020.

America's steel wire prices moving up

America’s wire and wire welding prices kept increasing along with the increasing wire rod cost. According to related statistics, America’s domestic steel wire price has been risen by USD 661 per ton in the first five months of 2008.

In May, some makers raised their price by USD 331 per ton. For example, Davis Wire price of Heico Co increased by USD 165 per ton on May 1, then it increased by USD 165 per ton again on May 15.

ArcelorMittal has announced an increase of USD 165 per ton for its steel wire products on April 26. In May, they made an further increase of USD 138 per ton.

(Sourced from YEIH.com)

TKC Steel posts tenfold income hike to PHP 154 million in 2007

It is reported that the shift to steelmaking from information technology boosted TKC Steel Corp’s net income by more than tenfold to PHP 154 million in 2007.

TKC Steel in a statement said that its subsidiary, Treasure Steelworks Corp contributed PHP 226 million, offsetting a PHP 51 million loss by another unit, Zhang Zhou Stronghold Steel Works Ltd. It said that its steel product sales almost tripled to PHP 4.73 billion, with Treasure Steelworks contributing the bulk at PHP 4.29 billion

TKC bought the companies, which manufacture steel products, last year after shareholders approved the change in its corporate name and purpose. TKS used to be called SQL Wizard, Inc an IT firm.

TKC Steel said that "The higher net income was driven by the increase in sales volume, improved gross profit margin and enhanced control in operating expenses.”

Ann Joo Resources Q1 net profit jumped three fold to MYR 104 million

It is reported that Ann Joo Resources Bhd’s net profit jumped more than threefold to MYR 104.94 million in the first quarter ended March 31st 2008 as compared to MYR 30.23 million in first quarter of 2007 on the back of higher selling prices of steel products.

Its revenue surged over 50% YoY to MYR 671.3 million as compared to MYR 446.62 million due to the rising trend in international steel prices driven by strong worldwide demand.

Ann Joo Resources said that the surge in revenue from higher billets exports and local rolled products saw its pre tax doubling to MYR 125.86 million in the first quarter from MYR 63.46 million in the fourth quarter of FY07.

It said its stockist business would continue to remain focused on the trading of high-margin engineering and structural steel products through a strategic business alliance with international steel mills.

Ann Joo Resources said the company would continuously be on the lookout for strategic procurement and inventory management in anticipation of a volatile market with further price escalation of raw materials.

On the local front, the company said demand for construction steel was expected to remain steady due to strong economic fundamentals and construction activities.

It said the group will continuously on the lookout for opportunities for strategic procurement and inventory management in anticipation of a volatile market with further price escalation of raw materials.

Ann Joo Resources said that "Riding on the robust international steel market, the group's stockist business will continue to remain focused on the trading of high margin engineering and structural steel products through strategic business alliances with renowned international steel mills.”

Rebar prices in Italy up by EUR 20 per tonne

It is reported that Italian steel mills have announced an increase of EUR 20 per tonne in the base price for steel rebar.

Hyundai Steel pays more for American H1 scrap

South Korea’s Hyundai Steel has purchased American H1 scrap from Sims group. As per report the price was settled at around USD 717 per tonne about USD 38.5 per tonne higher compared to the previous purchase.

At the same time, Japan exported the H2 scrap to South Korea at JPY 67,200 per tonne (USD 642) CNF. Although in different grades, the prices of Japan H2 scrap were still well below America H1's.

(Sourced from YEIH.com)

Hayes Lemmerz to close Georgia based facility

AP reported that Hayes Lemmerz International Inc, which makes aluminum and steel wheels for cars and trucks, will close a facility at Gainesville in Georgia by the end of 2008.

Hayes Lemmerz in a statement said that worldwide overcapacity in the light vehicle aluminum wheel market and aluminum wheel imports caused the company to close the facility. The facility employs 290 people.

Mr Curtis Clawson CEO of Hayes Lemmerz said that "The phase out is a difficult but necessary step in our overall plan to provide our customers the highest quality products at competitive prices and to improve profitability.”

Solideal introduces steel surcharge on wheels

Solideal has announced that it is to introduce a steel charge on all wheels and assemblies effective May 15th 2008.

According to an official statement on the matter, the action is strictly due to the hyper inflation in steel prices. The surcharge will be evaluated monthly and will begin at the rate of USD 0.49 per kg.

Mr Cesar Clemente CEO of Solideal said that “As commodity prices are increasing so dramatically, we have absolutely no choice but to make this move.”

Schnitzer awarded Recycler of the Year by SMA

As recognition for the Company’s leadership in recycling and mercury switch removal, the Steel Manufacturers Association recently named Schnitzer Steel’s two auto parts businesses as Recycler of the Year. The award will be formally presented during SMA’s Annual Members Meeting in Washington DC on May 20th 2008.

Schnitzer Steel Industries, Inc annually recycles approximately 300,000 end of life vehicles through its Pick n Pull and GreenLeaf Auto Recyclers businesses, which are part of its Auto Parts Business. These businesses, which include 53 self service and full service auto parts stores across the United States and Canada, purchase vehicles and offer recycled auto parts to consumers and businesses.


Mr Thomas Klauer senior vice president & president, Auto Parts Business at Schnitzer Steel said that “It is an honor to receive this award from the Steel Manufacturers Association. We are committed to remaining a strong steward of the environment as we continue to grow our businesses and provide our customers with an increasing supply of auto parts.”

Across the nation, millions of end of life or damaged automobiles are recycled each year by auto dismantlers. A number of these vehicles contain mercury switches, which if left in place have the potential to release harmful mercury into the environment when the automobiles are processed into scrap metal. Through carefully designed processes and the dedication of its employees to protecting the environment, Pick n Pull and GreenLeaf have become a leader in mercury switch recycling within the automobile dismantling industry. Both businesses participate in the national End of Life Vehicle Solutions Corporation program, which was formed by the automotive industry and is a signatory to the US Environmental Protection Agency’s National Vehicle Mercury Switch Recovery Program. Since joining the program in 2006, Pick n Pull and GreenLeaf have recycled more than 110,000 mercury switches, which equates to more than 244 pounds of mercury.

ArcelorMittal SA completes Saldanha reline

Engineering News reported that South Africa's largest steel producer, ArcelorMittal South Africa had successfully completed the reline of both its Corex and Midrex plants at its Saldanha Works which were shut down on February 4th 2008 for a scheduled reline outage.

The ZAR 294 million reline of the Corex and Midrex plants was the first in the ten year history of the plant and were completed according to the planned scope and without any significant incidents or problems.

Ms Nonkululeko Nyembezi Heita CEO of ArcelorMittal South Africa said that "An outstanding feature of the relines was that the work was carried out safely, with zero lost time injuries recorded. The relines will improve plant reliability, which will yield corresponding higher production outputs.”

Corex was back in operation on April 22nd 2008 and the furnace was currently being ramped to full maximum capacity. Midrex which uses Corex's off gas, completed its reline before Corex, and started up when Corex gas became available.

Nippon Steel to increase SBQ plate prices for Q3

Japanese Nippon Steel is planning to increase its export price of ship plate to JPY 120,000 per tonne to China in the third quarter. The main reason is that global demand is strong and raw material cost continues to rise in recent times.

Japanese major steel mills are gearing up production capacity to meet the strengthening demand.

(Sourced from YEIH.com)

US weekly crude steel production decrease by 0.7%YoY

American Iron & Steel Industries reported that in the week ending May 10th 2008, US’s raw steel production was 2.136 million net tons while the capability utilization rate was 89.5%. Production was 2.121 million net tons in the week ending May 10th 2007, while the capability utilization then was 88.4%. The current week production represents 0.7 % decrease from the same period in 2007.

Production for the week ending May 10th 2008 is up by 1.8% from the previous week ending May 3rd 2008 when production was 2.098 million net tons and the rate of capability utilization was 88%.

Adjusted YTD production through May 10th 2008 was 39.590 million net tons at a capability utilization rate of 88.7%. That is a 3.4% increase from the 38.278 million net tons million net tons during the same period last year, when the capability utilization rate was 85.1%

District wise production for the week ending March 15th 2008
1. Northeast Coast: 177
2. Pittsburgh/Youngstown: 212
3. Lake Erie: 87
4. Detroit: 107
5. Indiana/Chicago: 512
6. Midwest: 259
7. Southern: 687
8. Western: 95
(In thousands of net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months

Thai association warns government over loosing steel plant

It is reported that the Iron and Steel Institute of Thailand has warned the government that multinational steel makers may turn to neighboring countries to site their steel blast furnace projects.

Dr Chatchai Somsiri deputy director of the Iron and Steel Institute said that “Although Thailand has the region's highest demand for steel products, the government's policy to attract investors for an estimated investment of over THB 100 billion remains unclear.”

He said that "If we have steel blast furnaces in Thailand, steel makers and related industries will not face a shortage of raw materials and price volatility adding the country will have to compete with Indonesia and Vietnam which have iron ore.”

Mr Wikrom Vejaragupta director of Iron and Steel Institute said that if the government did not speed up its decision on investment incentives and land plots for steel furnace projects, the country could lose ArcelorMittal's project to Indonesia.

ArcelorMittal, the world's largest, is one of the four steel makers which previously submitted a letter of interest to Thailand's Board of Investment to set up steel blast furnaces here.

Russel Metals Q1 profit remains flat

Russel Metals Inc reported that first quarter net earnings of CAD 29 million. Its consolidated revenues for the first quarter of 2008 were CAD 712 million, an increase from the first quarter of 2007 revenues of CAD 684 million and from CAD 598 million reported in the fourth quarter of 2007. Operating profits were CAD 52 million for the first quarter of 2008 as compared to CAD 46 million for the first quarter of 2007 and CAD 38 million for the fourth quarter of 2007. Operating profits as a percentage of revenues improved in both metals service centers and steel distributors, which reflects the steel price increases announced by steel mills.

Russel’s revenues for energy tubular products segment were up CAD 35 million to CAD 214 million for the first quarter of 2008 as compared to CAD 179 million for the first quarter of 2007.

Operating profits for our metals service centers for the first quarter of 2008 were CAD 32 million, up by CAD 7 million from the first quarter of 2007. The metals service centers results strengthened from the first and fourth quarter of 2007 due to steel price increases initiated in the first quarter of 2008. Steel price increases improved margins and operating profits. Demand, excluding JMS Russel Metals, was consistent with the first quarter of 2007.

Revenues for our steel distributors segment were down by CAD 44 million to CAD 96 million, impacted by both lower imports and lower demand compared to the first quarter of 2007.

Mr Bud Siegel president & CEO of Russel Metals said that "Since January 2008 steel mills have increased the price of steel consistently month over month. The cost of metallic inputs, energy and transportation have all dramatically increased resulting in steel pricing reaching all time highs in the second quarter of 2008. Our metals service centers had progressively higher operating profits throughout the first quarter of 2008 as a result of increased pricing and we anticipate margins to be significantly higher during the second quarter of 2008 due to the on-going steel price increases. In addition, the energy tubular products segment had continued strong volumes from sales to the oil sands of Northern Alberta and oil and gas drilling activity in the US Rockies, resulting in higher operating profits despite tighter margins."

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec Industries, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York Ennis.

Mr Chavez signs law to take over Ternium Sidor

Bloomberg reported that Mr Hugo Chavez president of Venezuelan signed a law to formally take control of the country's biggest steelmaker from Luxembourg based Ternium SA.

Mr Chavez said that Mr Rodolfo Sanz mining and basic industries minister will take over as president of Ternium subsidiary Siderurgica del Orinoco, known as Sidor and named a commission to oversee the transition of the company by June 30th 2008.

Mr Chavez said that “It is not about Sidor returning to what it was when it was privatized. Sidor has to convert itself into a socialist company.''

He added that Venezuela is still in talks with Ternium over how much compensation it will pay. He said that the government values the company at USD 800 million, while Ternium is seeking between USD 3 billion and USD 4 billion.

The Venezuelan government, backed by surging oil revenue is seeking greater control over the private sector through nationalizations, as Mr Chavez tries to deepen the country's transition toward a socialist economy.

Arab countries produce 24.8 million tonnes of finished steel in 2007

Arab steel industry has achieved a specific leap in the field of production of finished products. According to the initial estimates, production amounted to 24.82 million tonnes in 2007, with an annual increase of 16.46% YoY as compared to the production of 2006, which amounted to 21.31 million tonnes.

Production of the long products amounted to 19.92 million tonnes, with an increase of 18.71% YoY over 2006, the flats 4.9 million tonnes up by 8.17% YoY. The Arab production of finished products accounts for about 2% of the total world production estimated by one billion two hundred million tons during 2007.

The report also mentioned that the production of the top 12 Arab companies amounted to 19.579 million tonnes or 79% of the total production. Production of other 45 Arab companies amounted to 5.25 million tonnes.

In order, Ezz Steel ranked first among the top companies in 2007 with a production figure of 4.853 million tonnes of finished steel products and an increase of 130,000 tonnes over the level of its production in 2006. SABIC Hadeed ranked second with a production figure of 4.742 million tonnes with an increase of about 783,000 tonnes over the level of its production in 2006. The companies of Al Tuwairqi Group ranked third in terms of the total production of long products with a production figure of 2.2 million tonnes.

Of the companies whose production exceeded 1 million tonne are Libyan Iron & Steel Company with 1.175 million tonnes, ArcelorMittal Annaba with 1.06 million tonnes and the National Iron & Steel Company Morocco with 1.05 million tonnes.

Turkish steel price surge

Strong demand in the Middle East has brought a good opportunity to Turkish steel factories, in line with the constant rises in scrap and billet prices.

As a result of continually rising export and demand steel prices in Turkey, Turkey’s steel price has already become one of the highest global price areas.

Turkish rebar export prices to Dubai have reached highs of up to USD 1,200 per tonne.

Chalco may ink MoU with MMC and Binladin for aluminum JV in Saudi Arab

Xinhua reported that Aluminum Corporation of China Limited will team up with Malaysia's MMC and Saudi Arabia's Binladin for a joint aluminum project in Saudi Arabia.

The USD 4.5 billion project includes an aluminum smelter plant and an equipped power plant in Jazan Economic City. The smelter will have an annual production capacity of 1 million tonne.

Chalco would take a 40% stake in the plant as the largest shareholder and control 20% of the power plant shares. It would also provide technology and alumina for the project.

According to earlier reports, Chalco was to take a 40% stake in the project, while MMC and Binladin would each take 20% stakes. Other Saudi investors would share the remaining 20% stake.

The three sides also signed a MoU on supporting issues with the Saudi Arabia General Investment Authority, which promised to offer necessary support to the JV project.

Sarawak welcomes lifting of steel curbs

Mr Datuk Abang Johari Tun Abang Openg Sarawak’s housing minister said that the scrapping of restrictions on the import of steel is beneficial because it will allow the price of the material to be determined by market forces.

Mr Openg added that "Now that steel can be imported more freely, it will give us more options in the market, and prices will be determined by supply and demand."

It may be noted that Mr Datuk Seri Abdullah Ahmad Badawi Prime Minister of Sarawak announced that the government had decided to remove the domestic ceiling price on steel bars and billets, and to exempt steel importers from import licensing and paying import duties.

Earlier, Mr Abang Johari said that the Vista Wawasan project, comprising 633 units of low and medium low cost houses and other mixed development, was part of Syarikat Prasarana Negara Berhad’s plans to build 15,000 affordable houses in Sarawak under the 9th Malaysia Plan. He added that SPNB is also developing the MYR 90 million Vista Ilmu at Kota Samarahan, comprising 1,152 medium to low cost apartment units. In addition, it will launch its MYR 326 million Vista Perdana project in Permyjaya in June 2008.

Saudi Arabia plans USD 426 million dockyard at Jeddah

Khaleej Times reported that Saudi Arabia is planning to build a third major dockyard in the Kingdom at a cost of USD 426 million at the Jeddah Islamic Port.

Dr Jabara Al Seraisry Saudi minister of transport said that the dockyard will be built on a build, operate and transfer basis under a Saudi Malaysian pact. The construction work is expected to begin soon and the dockyard will have capacity to store 2 million containers. He added that it would be larger than the others and would have better loading and unloading facilities.

Dr Al Seraisry said that a Chinese specialized company is currently studying the design and construction of the Kingdom’s 9th port at Ras Azzur in the Eastern province at a cost of USD 586 million. He added that "It will be a great priority for the government since it would facilitate the mining industry in the region. There will be plenty of more opportunities for foreign companies that have the expertise in the relevant field."

He further added that under the proposed land bridge project, which will link the east and the west coast via Riyadh, trains would carry 8 million tonnes of goods by the end of 2015. He said "A total of 700,000 compartments will be built for the trains that would commute in the 1150 kilometer long rail line."

Emal aims for a green aluminum smelter

The high price of oil and massive liquidity in the Gulf due to windfall profits has fuelled the appetite for carbon capture with the UAE leading the charge and Emirates Aluminum is the latest to join a growing green movement.

Mr Duncan Hedditch CEO of Emal said that it is undertaking a feasibility study, together with Masdar, to create a carbon capture and storage scheme. He added that "It is still in a very early investigations stage. We are looking at whether this is economically and technologically feasible and whether we would be able to do this."

Emal already has on board an engineering, procurement, construction and management contractor, a JV between Canada's SNC Lavalin and Australia's Worley Parsons. SNC Lavalin was tapped by Masdar in February 2008 to undertake the CCS study in Abu Dhabi, which is set to be the world's largest carbon capture and storage project. The study has identified 4 to 6 projects with an approximate cost of USD 500 million each that could be quickly executed.

Reductions in the UAE's carbon emissions would come to between 6 million and 8 million tonnes per year. That is from a total of around 76 million tonnes per year of present and planned emissions in the UAE. Carbon capture and storage is an approach to mitigate global warming by capturing CO2 from large point sources such as fossil fuel power plants and storing it instead of releasing it into the atmosphere.

Emal is set to produce 700,000 tonnes of aluminum per year in the first phase, which will increase to 1.4 million tonnes in the second phase.

Egypt construction sector export in 2007 up by 2.7% YoY

Business Today Egypt reported that, encompassing the production of steel, cement, waterproofing and insulation materials, Egypt’s building and construction material industry currently accounts for around 7% of the country’s GDP and employs more than a million people. The sector reached EGP 20.8 billion in exports in 2007 up by 2.7% YoY from EGP 31.4 billion in 2006.

Egypt is the 3rd largest steel producer in the Middle East and the 6th largest cement exporter in the world. With an extra push for the remaining sub sectors, including waterproofing and marble, the government is trying to put Egypt on the map as a primary exporter of building materials. According to the ministry of trade & industry, despite the promising future, the sector has seen its fair share of turmoil over recent months, assaulted by export tariffs, the staged removal of energy subsidies and most recently a 6 month ban on cement exports. Combined with strong domestic demand this resulted in an export growth of only 0.51% over 2006’s EGP 13.5 billion in exports.

Steel production, as a pillar of industry in Egypt, has often been given special attention by the government, with heavy subsidies going to both the sector and its support industries, such as energy. From 2003 to 2006, iron and steel exports increased from USD 376 million to USD 814 million. From January to September 2007, exports reached USD 614 million. And although the sector’s three year forecast sees exports topping the USD 1 billion mark, turmoil in the domestic market and several government initiatives look like they may put a dent in this figure.

EIIC set to invest AED 1.8 billion on cable aluminum units

Emirates International Investment Company has announced an ambitious plan to build 6 hi tech factories in the UAE, Saudi Arabia, Algeria, Romania and Vietnam by investing AED 1.8 billion. The Saudi Arabian, Romanian and Vietnam factory blueprints are completed and the sites have already been selected.

EIIC’s decision to construct these factories in the 5 countries comes at a time when the region is experiencing a great construction boom. To satisfy market demand, EIIC is estimating production levels of 40,000 tonnes per annum of copper and 7,000 tonnes annually of aluminum low, medium and high voltage cables.

EIIC has already begun construction on 2 UAE based factories in Mussafah, Abu Dhabi. The first unit manufacturing aluminum rods producing 100,000 tonnes per annum while the second unit manufacturing magnetic wires producing an estimated 25,000 tonnes annually.

Mubark Al Gethmi wins Emaar EC’s SAR 200 million contract

Khaleej Times reported that Emaar has awarded a SAR 199.09 million contract to Mubark Al Gethmi Contractors for constructing the concrete skeleton for 4 residential towers within Bay La Sun Village.

Mr Fahd Al Rasheed board member & CEO of Emaar EC signed the contract with Mr Nabil Al Jamal chairman of Mubark Al Gethmi Contractors. The contract covers the structural work of the towers.

The 4 residential towers, all 13 storeys each, will feature studios, one to three bedroom apartments and a group of two storey penthouses at the top of every tower in addition to car parking.

Mr Al Rasheed said that "Bay La Sun Village has introduced a new lifestyle concept to the Kingdom, and as the first fully integrated residential community within KAEC, we are creating a world class neighborhood by employing best practices on engineering and construction. Mubark Al Gethmi Contractors have proven competencies in undertaking projects of international standards in design and construction."

The towers have a total built up area of 200,000 square meters with phase one scheduled for completion at the end of 2008 and phase two in early 2010. In all, the project will feature 532 apartments, parking space for 1,500 cars and retail area of 9,000 square meters. Offering spectacular views of the Red Sea, the towers will border open corridors lined by retail and leisure amenities.

KAEC is the single largest private sector led project in the region and has 6 key components namely the Sea Port, Industrial Zone, Central Business District, Resort District, Educational Zone and Residential Communities. Work is progressing according to schedule on the various zones.

Iran ready to send workers to Qatar

Mehr News Agency quoted Mr Mohammad Jahromi Iranian minister of labor & social affairs as saying that Iran is ready to dispatch skilled human resources to Qatar. He added that "We are ready to train and dispatch skilled human resources to Qatar, if the skills are specified by that country."

Mr Jahromi said that Iran and Qatar have enjoyed a long history of relations which has been strengthened more with President Mr Mahmud Ahmadinejad’s recent trip to Doha and the Qatari Prime Minister Mr Hamad bin Jasim bin Jabir al Thani’s visit to Tehran. He added that "Iran is one of the leading countries in the world regarding agriculture and processing industries and it has a satisfactory place in the oil and gas sector."

Over USD 30 million worth of development projects underway in Anzali

Mehr News Agency reported that 5 development projects valued at SAR 273 billion was commenced in the northern Anzali Port free trade zone.

Mr Firoozabadi MD of Anzali said that these projects include road renovation, construction of a 63 kilovolt power substation, water treatment plant, landscaping, illumination of thoroughfares, and establishment of medium-voltage power transmission line. He added that "The road renovation project has been allocated over USDS 15.7 million."

Mr Firoozabadi said that the 63KV substation and the landscaping projects were allotted some USD 5.4 million and &1.6 million respectively.

Anzali free trade zone measures some 3,200 hectares area in which over 100 manufacturing and industrial units with over 3,000 workers are active.

Iraq postponed deadline for bids to develop Akkas gas field

Saudi Press Agency reported that Iraq has postponed the deadline for bids to develop the Akkas gas field until May 18th 2008.

The announcement comes two weeks after the previous deadline expired. Authorities have not provided any reason for the postponement.

The Akkas field, which has estimated reserves of more than 2.15 trillion cubic feet, is located in Anbar province.

Emaar’s Al Nada residential project ready for launch

Arab News reported that Emaar Middle East, a subsidiary of Emaar Properties PJSC focused on project development in the Middle East region, will launch the first residential village within Alkhobar Lakes.

Mr Alaa Abdullah Saed CEO of Emaar Middle East said that "Alkhobar Lakes is one of the largest gated communities in the Kingdom of Saudi Arabia and sets new standards in residential developments. The focus of the project is to create a distinctive location ambience through lakes and water bodies, which have been carefully designed following extensive studies to create an environmentally conscious neighborhood, while adding to the quality of living by offering private villas and community amenities."

Al Nada Village, with an area of 250,000 square meters, is the first of 9 residential villages within the first phase which spreads over a total area of 2.6 million square meters. Al Nada Village features 242 elegant three to six-bedroom villas with residents having direct access to a 13,000 square meter lake.

Customers can choose from 16 villa styles designed with Arabic and Andalusian architectural elements at the sale to be held at Alkhobar Lakes Sales Center. The villas are due for completion in 2010.

Experts seek resolution of dispute over coal ownership in Pakistan

The Post reported that Pakistan’s eminent experts on coal energy revealed that the mining of only 544 million tonnes of coal can produce 101,800 MW of electricity per day for 30 years. They also revealed that the indigenous coal power production up to 1000 MW will save the foreign exchange equivalent to USD 495.31 million annually in the form of fuel only and can create 20,000 jobs.

Linking the issue related to the ownership of coal with provincial autonomy and constitutional rights, experts at a seminar opined that since the coal is completely a provincial subject as per constitution but federal government has once again encroached and considering establishing a forum to control the matter at federal level. The centre Sindh row over coal ownership may create hurdles in exploiting the largest coal reserves in the world and may hamper efforts in overcoming the energy crisis, country is facing in these days.

The experts said that more studies were required to be conducted to get exact cost effectiveness and potential of the coal in Pakistan as proper studies had not been taken so far. They said that coal based power generation is not a new business to deal with and various technology solutions are available to mitigate the environmental pollution problems in order to make Thar coal potential technically and economically feasible.

Pakistan owns around 184 billion tonnes of coal deposits. Apart from the potential of 184 billion tonnes of coal, Pakistan has 12.597 billion tonnes of coal reserves in 6 blocks of Thar area alone, while work on block VII and VIII is underway.

Dubai grants rebar product conformity certification to Qatar Steel

Dubai Central Laboratory of Dubai Municipality has signed an agreement with Qatar Steel Company FZE granting it the license to use the DCL conformity mark on its products. The agreement was signed by Ms Hawa Abdulla Bastaki director of DCL and Mr Sheikh Nasser Bin Hamad Al Thani chairman of Qatar Steel Company FZE.

As per the agreement, the DCL will supervise and control the use of its conformity mark. The provisions of the agreement also said that the products manufactured and supplied by Qatar Steel Company shall comply with the requirements stated in the relevant standard specifications and the provisions of its general and specific rules.

Qatar Steel shall apply the DCL conformity mark on its products in accordance with the marking and tag requirements for the control of reinforcing steel bars in the Emirate of Dubai as per DM Circular (159) 2007. It also agrees to carry out the quality control testing as per the Internal Product Quality Assurance Plan.

The DCL will carry out periodic surveillance of the company’s compliance with its obligations through implementation of the independent testing plan and monitoring of continuing compliance with the requirements for factory quality management system through factory surveillance audits. In addition, the DCL also has the right to collect sample from the factory, warehouse, construction site etc and carry out tests on them for verification purposes, whenever necessary.

Ms Bastaki said that the use of the DCL mark is a demonstration of the company’s commitment to ensure that their product continues to comply with approved international standard specifications. She said that "This agreement will have a positive impact on the contractors and consultants as they will be adhering to the international specifications as far as using steel bars. This agreement also represents confidence as the consumer will be ensured of the quality of the products buys."

Qatar Steel will have the right to publish that it has been authorized to use the DCL conformity mark on the products covered by the license or certificate. The DCL, on its part, has the right to publish in newspapers, information related to the granting of the license or certificate to the company, as well as information related to the suspension, cancellation or withdrawal of the license or certificate.

Iran to produce 60% of locomotive parts domestically

Tehran Times reported that Iran is planning to produce 60% of its locomotive parts domestically.

Mr Ali Akbar Tarikhi deputy director of Iran Railways Company said that "In this year’s budget, we have considered the production of 60% of its required locomotive parts domestically and through cooperating with the private sector. Before production we will prioritize the parts required to be domestically manufactured based on production potentials, raw material availability, and the country’s rail policies."

Mr Tarikhi also explained that two locomotive prototypes were to be domestically produced this year through investing approximately USD 10.8 million.

UAE has to integrate gas pipeline networks – Experts

Khaleej Times reported that UAE has to integrate its pipeline networks for a more efficient, cost effective supply of fuel, apart from sourcing more supplies from Qatar and Iran, to support its economic growth.

Mr Khalid Al Awadi operations manager at Emirates General Petroleum Company said that "We, in northern emirates, can save AED 800 million worth fuel during the peak summer months of the years, as we burn expensive diesel for power generation, which if replaced with natural gas available with Abu Dhabi, can have a lasting impact on the economy. By doing this we can save energy which is going waste. It constitutes best use of natural resources."

Mr Al Awadi said that the integrated pipelines would have a single owner or holding company, to be set up after forming gas pipeline owners' union, who will sort out issues of gas transportation, its regulations and cross border tariffs among federating units. He added that "There is urgent need for a gas law in the country, in this connection, on the lines of Europe where different companies are selling the same commodity like electricity."

Mr Al Awadi said that for alternative means of fuels, nuclear energy can fill the gap, but will take many years to come on line. He added that "We have 3 pipeline networks in the country transporting gas to their customers in their respective emirates. If these pipelines are interconnected at national level this can result in tremendous economic benefits."

At the moment, UAE is facing a net shortage of natural of 1.5 billion cubic feet gas, as there is a demand of 5.4 billion cubic feet growing at an annual rate of 10% to 13% while the nation has a supply of 4 billion cubic feet only. The deficit currently is being met through consuming expensive diesel, due to which there is a high cost of consuming gas which can be met by sourcing gas from Iran or Qatar.

PSM sales in 10 months up by 31% YoY

PPI reported that sales of Pakistan Steel Mills during July to April 2008 rose by 31% to PKR 31,212 million as against PKR 23,830 million in July to April 2007.

In April 2008, Pakistan Steel achieved the highest ever monthly sale of PKR 3,747 million as against PKR 3,648 million in July 2007.

The target of Pakistan Steel sales for 2007-08 is PKR 36.244 billion and it is expected to cross PKR 39 billion mark.

PSM achieved sales of PKR 30.066 billion in 2006-07 up by 45.65% YoY as against PKR 20.643 billion in 2005-06 and earned a profit of Rs3.1 billion.

1st private steel mill in West Iran to come on stream soon

Tehran Times citing Mr Khosro Samei director of Hamedan Province Industries and Mines Organization reported that West Iran’s first private steel complex will be inaugurated in Malayer.

Mr Samei said “The production capacity and development of this project depends on companies’ cooperation and their readiness to construct new plants. 11,000 square meter of land have been allocated to warehouses and the two factories in this complex will come on stream in two months.”

The complex will be spread over 250 hectares area and over USD 32.6 million will be invested in this project, Construction of this complex was launched in 2006-7 and will be finalized within three years of its launch.

Hamedan Province’s annual steel production capacity is currently 95,000 tonnes which can be notably increased with this complex putting into operation.

Iran plans rail network from ports to Basra in Iraq

MEED reported that Iran has launched feasibility studies for a cross border rail network to link two of its Gulf ports to the southern Iraqi city of Basra. The study has been undertaken by the Iranian group Metra Consulting Engineers

Metra's feasibility study will consider the technicalities of checking and making the land safe along the Iran-Iraq border, which was heavily mined during the war between the two countries in the 1980s.

The first phase of the proposed line would run for 30 kilometers from Basra across the border to the Iranian port of Khorramshahr, then a further 80 kilometers to the larger Imam Khomeini port.

Feasibility study on 2 rail project in Saudi Arab to finish in October

MEED reported that two studies for major transport projects in Saudi Arabia are nearing completion, with the Mecca light rail project proposal due in September, followed by the feasibility plan for the GCC railway in October.

Samir Ashour resident manager of Lebanese engineering group Khatib & Alami, which is involved in the study said that the feasibility study for the GCC railway, launched in September 2007 and originally expected to take 12 months to 18 months, will be finalized by October 2008.

The Mecca network will link up two holy sites in the city and is expected to involve an elevated system similar to the one under construction in Dubai.

Al-Rajhi to part fund Saudi Landbridge rail project

MEED reported that project finance for the Saudi Landbridge rail scheme is expected to include an Islamic tranche that will be worth about USD 1 billion. As per report. local Islamic bank Al-Rajhi Bank is expected to underwrite the sharia compliant tranche, which the executive expects to come to the banking market in late 2008 or early 2009.

The report added that, following the award of the contract for the project to the Tarabot consortium in May, banks advising the group will start their first meetings to discuss structuring the project finance.

Current cost estimates put the project to link the kingdom's Red Sea and Gulf coasts at about USD 7 billion, with about 70% of that amount to be debt finance.

BNP Paribas is the financial adviser on the project along with Saudi Fransi, Samba, Mashreq-bank, Arab Banking Corporation and Royal Bank of Scotland.

The Landbridge is one of the most significant construction projects ever undertaken in the kingdom. By linking the deep-sea port at Jeddah to the Gulf, companies will be able to move goods from coast to coast in 24 hours, rather than taking five or six days by sea to go around the Arabian peninsula.

Update on Qatar to Bahrain causeway project

MEED reported that the four winners of the 40 kilometer long Qatar to Bahrain causeway face an additional nine month wait to determine the value of their contracts after being instructed by the client to work on an open-book basis until the design process is completed.

Following a six-month evaluation period, the design and build contract for the causeway was awarded on May 6th 2008 to a consortium of France's Vinci Grands Projects, Germany's Hochtief, Athens based Consolidated Contractors International Company and Middle East Dredging Company. Denmark's Cowi is working as the design consultant on behalf of the contracting consortium.

The consortium signed a memorandum of understanding with the Qatar Bahrain Causeway Foundation in October last year. With the contractor now in place, a further award is expected in June for the client representative and program management role, for which bids were submitted in March. The bidders include UK based Mott MacDonald and a joint venture of the US' KBR and the UK's Halcrow.

The successful bidder will report directly to the foundation and will be responsible for managing the construction of the project on behalf of the client.

Construction work is scheduled to start in early 2009, once the program manager has been selected and the design of the scheme has been finalized. It is expected to take about four years.

Known as the Friendship Causeway, the project will link the western Qatari coast of Ras Ashiraj to the village of Askar on the eastern coast of Bahrain. The crossing will be a dual carriageway. For the 18 kilometers where the sea is shallow it will run over embankments, and for the 22 kilometers where there is deep water, it will use a series of bridges and viaducts, including two 400 meter cable stayed bridges over the main shipping channel.

SA keen to import gas from Qatar

It is reported that South Africa is looking to import liquefied natural gas from Qatar.

Mr Thabo Mbeki President of SA during a recent state visit to Qatar said that "South Africa is indeed interested to acquire from Qatar, liquefied natural gas.”

South Africa is planning an integrated energy project at the Coega Industrial Development Zone, east of Port Elizabeth, which would use LNG to produce electricity. 1.7 million tonnes a year of LNG will be shipped into the Port of Ngqura, of which around 1.4 million tonnes will be used to produce about 2 400 MW of electricity.

Shougang put CR complex into production at Shunyi

It is reported that cold rolled steel production line of Shougang put into production on May 10th 2008 in Shunyi direct of Beijing.

The total investment of the project was CNY 6.4 billion and the total capacity is 1.5 million tonnes with 800,000 tonnes of CRCA and 700,000 tonnes of HDG. The products are mainly focused on high quality automobile plate, steel sheet used for construction etc

The total area of the project was 730 thousand square meters. The foundation was laid on July 2nd 2007. It is learned that Shougang issued CNY 2 billion convertible bonds in 2003 and all used for the projects construction.

Sinosteel XTMMC and Shougang ink strategic pact

It is reported that recently, Sinosteel XTMMC and Shougang Group held a strategic cooperation agreement signing ceremony. Mr Qiankai GM of Shougang and Mr Xue Linghu GM of Sinosteel XTMMC were present at the signing ceremony.

The agreement will have important role in promoting the deeper cooperation between the two sides, enhancing the competitiveness in the market for the two sides.

Sinosteel XTMMC and Shougang Company have many years cooperation and the cooperative scope between the two sides has expanded in recent years.

With the relocation of Shougang, the number of steel enterprises in Hebei province of Shougang is increasing gradually, through the product structure adjustment, the proportion of various types of large scale steel strip in steel products is gradually increasing.

As per reports, Shougang is the tenth steel enterprise that has signed strategic cooperation agreement with Sinosteel XTMMC in China.

Xinxing Casting to supply steel plates to Harbin Boiler

It is reported that Xinxing Casting Pipe and Harbin Boiler Company have signed strategic cooperation agreement which is about the steel grid plate in 2008.

According to the agreement, 2008 procurement of steel plates will be not less than 10,000 tonnes and locked the supply price for 2008 that the two sides can accept.

The two sides also make a decision that negotiating the next year’s procurement volume and price of the steel grid plate in every year’s December.

Chinese steel exports in 4 months dips by 23.9% YoY

Mysteel.com, citing figures from the General Administration of China Customs, reported that China exported 16.17 million tonnes of steel products in January to April 2008 period, down by 23.9% YoY, while imports fell by 2.2% YoY to 5.68 million tonnes.

In April 2008, China exported 4.78 million tonnes of steel products, down by 33.2% YoY, while imports stood at 1.5 million tonnes down by 7.9% YoY.

Imports of steel billet in January to April 2008 period fell by 32% YoY to 70,000 tonnes with April 2008 imports at 20,000 tonnes while exports of steel billet in the same period decreased by 96.2% YoY to 100,000 tonnes with 10,000 tonnes exported in April 2008.

China exported 4.28 million tonnes of coke in the January to April 2008period, down by 16.6% YoY, with 1.34 million tonnes shipped in April 2008. It also imported 153.49 million tonnes of iron ore, up by 15.2% YoY. It imported 42.85 million tonnes of iron ore in April 2008, up by 28.4% YoY.

(Sourced from MySteel.net)

Summary of Chinese steel export prices

Chinese domestic steel market prices are still on the rise except rebar and wire rod. Most steel prices are going to remain at high level in May 2008 and this is also the case with export offers. Despite the continuous rise in prices, it is worthwhile to pay attention to the possible downward adjustment in end of May 2008 or June 2008.

Rebar and Wire rod
Construction steel market has been flourishing in China since February 2008. While export tonnages also see rebound. However, domestic prices see evident decrease today following the swift increase. The market is likely to start its correction in the short term.

On Shanghai market, HRB335 20mm rebar with exemption from Inspection is being offered at CNY 5340 to CNY 5350 per tonne, while those common products are only tagged at CNY 5220 to CNY 5240 per tonne, down by CNY 150 per tonne from peak levels. HRB400 rebar price go down by CNY 100 per tonne to CNY 5530 to CNY 5550 per tonne. Commercial and hi speed wire rod goes remain flat at CNY 5670 per tonne and CNY 5760 per tonne respectively.

Taking Shanghai price for HRB335 20mm as benchmark, it is going to see further downward adjustment unless it could exceed CNY 5500 per tonne. However, the strength above CNY 4900 per tonne would hint that any drop is merely adjustment.

Export offer for rebar is about USD 950 to 960 per tonne and that for wire rod goes at USD 970 to USD 980 per tonne FOB. Sources say that rebar with vanadium is normally being concluded at USD 920 per tonne FOB, but there is almost no transaction for common products. Contract price for wire rod is about USD 940 per tonne FOB.

HRC
Hot rolled steel coil prices will continue to move up on in China and the increase is expected to maintain for at least four weeks. HRC prices are expected to increase on seven consecutive months.

On Shanghai market, commercial 4.75 to 11.5mm*1500mm HRC is being offered at CNY 5650 to 5680 per tonne, 1800mm wide material at CNY 5900 per tonne. Low alloyed 7.5mm HRC goes at CNY 5750 per tonne, while 11.5mm thick HRC has jumped to CNY 6000 per tonne.

Taking Shanghai price for commodity grade 4.75 to 11.5mm*1500mm HRC as benchmark, it is going to approach CNY 6000 per tonne as long as it remains above CNY 5500 per tonne.

Export prices are also bullish at moment. Prevailing offers for commercial thick gauge hot rolled steel coil are at USUSD 930 to USD 950 per tonne FOB and some even have jumped to USD 960 to USD 980 per tonne FOB. There is strong likelihood that quotations are going to reach about USD 1000 per tonne fob if domestic price rise to CNY 6000 per tonne.

Steel Plate
Steel plate export market is still quite strong in China and prices are expected to keep at a high level this month. The strong demand and high cost are bolstering the upward trend and it is not going to alter in the short term.

Chinese domestic plate price is always edging up steadily, though by small range. On Shanghai market, 16mm plate by Yingkou Steel is being quoted at CNY 6430 per tonne, which compares with CNY 6200 per tonne for similar products by tier two producers. Low alloyed 40mm plate goes at CNY 6950 per tonne.

Quotation for commercial plate by tier two steelmakers is at about USD 1130 to USD 1150 per tonne FOB, up by USD 30 to USD 40 per tonne than late April 2008. By comparison, that by tier one steel producer is around USD 1180 to FOB 1220 per tonne FOB.

Though transaction is not ideal, steel makers are still confident that prices would continue to go up. Currently, ship plate and high end plates account for most part of steel exports from China due to much higher profits.

CRC
Cold rolled steel coil price are still on the rise in China and the upward trend is expected to continue in May 2008.

On Shanghai market, 1.0mm CR sheet by Anshan Steel is being quoted at CNY 6880 per tonne, 1.2 to 2.0mm sheet CNY 6820 to CNY 6850 per tonne. 1.0 CR coil by Maanshan Steel goes at CNY 6780 per tonne.

As forecast in previous reports, 1.0 CR sheet by Anshan Steel has reached CNY 6800 to CNY 7000 per tonne. If it could keep above CNY 6800 per tonne, the next target would be CNY 7200 per tonne. Export offers for CRC have also been raised accordingly. That for 1.0mm cold rolled coil is prevailing at USD 1020 per tonne FOB, up by USD 20 per tonne from late April 2008.

Some traders are worried that prices are going to drop after such a great increase. However, there has been no evident signal of correction in the short term. The strength is expected to maintain for another 4 to 6 weeks.

Angang supports Panzhihua Steel overall listing as third party

China Business News reported that Chongqing Titanium Industry Company Limited declared that Angang will be the cash option right third party in the group's assets restructuring, suggesting that Pangang and Angang are going into substantial cooperation.

On April 14th 2008, Panzhihua Steel & Vanadium Company Limited, Chongqing Titanium Industry Company Limited and Chang Cheng Special Steel Company Limited, three listed units of Pangang, all announced approval of the group's overall listing by the state owned asset supervision and administration commission. The three listed units will be incorporated into Panzhihua New Steel & Vanadium Company Limited, with Chongqing Titanium Industry and Chang Cheng Special Steel to logout.

Pangang will then put all iron and steel, vanadium, titanium and minerals resource assets into Panzhihua New Steel & Vanadium Company Limited and realize overall listing by right of this platform. If any particular shareholders refuse to accept holistic listing for any assets shrink concerns or being pessimistic toward the prospect of overall listing, they can choose to sell stake to the third party Angang.

Panzhihua Steel & Vanadium Co had proclaimed signing of a pact on offering Angang third party cash option right. As agreed, Angang will unconditionally buy the shares of the three listed units' holders who want to sell, at CNY 9.59 per share for Panzhihua Steel & Vanadium Co, CNY 14.14 per share for Chongqing Titanium Industry and CNY 6.50 per share for Chang Cheng Special Steel.

Analysts said that Pangang and Angang have often collaborated before and are supportive to each other. With Angang being the third party, investors will also be confident in success of Pangang's overall listing. Additionally, this is a union between two strong steelmakers that can give the listing a push.

(Sourced from MySteel.net)

Chengde and Sichuan ZhuYu form JV

It is reported that by Chengde Vanadium Titanium Company and Sichuan Zhuyu Group has formed a 51:49 JV Chengde Zhuyu Canadium Titanium Company.

As per reports, the total investment of the new company is CNY 68 million, and has the annual production capacity of processing V2O5 3,000 tonnes, processing 50 vanadium iron 3,000 tonnes and processing vanadium tailings of 100,000 tonnes.

Chengde is the largest vanadium and titanium steel enterprise in north China and Zhuyu Group has been engaged in vanadium products processing business for many years.

Baosteel among Green benchmarking corporations

The result of appraisal of the first yearly Chinese benchmarking green corporations was announced recently where Baosteel was one of the 20 benchmarking corporations.

The appraisal was sponsored jointly by China Entrepreneur Magazine, Price Waterhouse Coopers and Climate Change Capital. The appraisal group comprised of authoritative experts from related fields and representatives of nongovernmental organizations from home and broad.

The appraisal criterion involves various links such as corporation strategy operation, product, marketing etc and for the first time in China was proposed the complete systematic framework for appraisal of Chinese corporation environment and social strategy.

All the corporations chosen as Chinese benchmarking green corporations of the first time are excellent in their respective fields, with good operation achievements and social reputation and at the same time outstanding in environment protection and social responsibility.

Chinese auto market future mixed

China Business News reported that many automakers experienced sales declines in April 2008 as compared with March 2008, triggering great anxiety about China's auto market in the future.

According to many automaker executives like Mr Ren Yong vice GM of Dongfeng Nissan and Mr Liu Yuhe executive VP of Dongfeng Honda, the soaring consumer price index and slowing world economic growth bring too many uncertainties to China's auto market in the second half of 2008.

According to a survey conducted by Sinotrust, 71.6% of consumers surveyed do not want to see auto price hikes in 2008, 13.6% say price hikes will occur and the remaining 14.7% say they will wait and see.

But Mr Li Chunrong VP of Dongfeng Passenger Vehicle Company said that China's auto market will continue to grow as Chinese economy's upward trend continues.

Latest figures from the price supervision center under National Development & Reform Commission suggested that Chinese domestically manufactured vehicle prices edged up by 0.15% MoM, but down by 3.17%YoY.

Baosteel succeeds in nanotechnology trials

It is reported that the metal surface organization nanotechnology reconstruction project which is led by Baosteel and ranked into national high tech plan has made significant progress.

Metal roller to be nanotechnology on surface can comprehensively utilize nano material’s high hardness and coarse crystal’s high plastic to significantly improve the roller’s wear resistance and anti fatigue life.

Since 2000, scholars at home and abroad have proposed various methods of making nano metal but most of them are remain in the basic research stage. Through many rounds of production industrial test, the key technology, equipment operation and the production performance all have reached the desired objectives, the hardness, wear resistance, and fatigue life of the roller of surface nanotechnology have been greatly improved.

It marked that Baosteel becomes the world’s first steel enterprise that has the level of trial on the surface of nanotechnology.

China cuts steel on first deepwater semi

Shanghai Waigaoqiao Shipbuilding Co, a subsidiary of China State Shipbuilding Corporation began construction on China's first deepwater semi submersible drilling unit in April 2008. The steel cutting ceremony on China's first semi submersible was held on the afternoon of April 28th 2008 at the Chinese yard located in Pudong in Shanghai.

The semi submersible will be equipped with DP3 and the ability to drill up to 12,000 meters in water depths of up to 3,000 meters. Delivery is scheduled for the second quarter of 2011.

Shanghai Waigaoqiao was commissioned by CNOOC to build the semi in 2007. Construction of the semi also marks China’s move towards deepwater exploration following the discovery of Husky Oil's South China Sea Liwan 3-1 field in 2006.

Panzhihua shuts down two units after earthquake

Chinese steel maker Panzhihua Iron & Steel Group announced that it has shut down operations at two units due to earthquake in the southwest of the country.

The company said in a statement on the state owned Assets Supervision and Administration Commission's website said that that Chengdu Iron & Steel Co and Sichuan Changcheng Special Steel Co have suspended production. It did not say when production would resume.

Chendu Iron has annual iron capacity of 1.5 million tonne and steel capacity of 1.8 million tonnes.

Sichuan Changcheng Special Steel has an annual crude steel capacity of 650,000 tonnes.

Xingang new coke ovens ignited

It is reported that Xingang Company’s 3 million tonne steel project in Jiangxi Province of China, No 5 coke oven has been completed on May 10th 2008.

Coke oven project started construction in July 2007 and the total investment of is about CNY 900 million. The new No 5 coke oven is built with advanced technology.

It includes two 63 holes 6 meters coke ovens, and the designed annual coke production is 1.25 million tonnes.

As per reports, after the firing of this coke oven, it must undergo heating cycle of 82 days and will be formally put into production on July 31st 2008.

Xingang Company’s coke output will reach more than 2.6 million tonnes every year with this commissioning.

H beams from Jinxi used in prestigious projects

It is reported that Jinxi Iron and Steel’s H beam line has completed two years of operations on May 5th 2008. During theses two years, its H beams have been used in many large projects both in domestic and overseas markets.

Its H beams were