Rebar price drop weakens demand in India

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.

TATA Steel promises to maintain reduced prices

It is reported that TATA Steel will stand by its promise to keep prices at the reduced levels, despite the notification of export duty.

Mr B Muthuraman MD of TATA Steel in a press statement said that "We have promised to keep steel at the reduced price for three months, we will keep that promise."

Some of the steel producers were awaiting a final decision on the export duty, after which it would take a call on the pricing strategy and a reversal of the rollback in prices was also not ruled out.

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.

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.

Usha Martin to seek export duty relief for wire rod supplies to Thai unit

The telegraph reported that Indian wire rope manufacturer Usha Martin Ltd plans to seek duty relief from Indian government on exports to subsidiary companies

Mr Rajeev Jhawar MD of Usha Martin said that “We are hopeful that the government will re look the export duty issue. In case nothing changes, we will plead exemption of duty on sale to subsidiary companies.”

Usha Martin exports about 30,000 tonnes of wire rod to its subsidiary in Thailand, Usha Siam Steel Industries Public Company Ltd, where the rods are converted to wire and wire ropes. The export will now attract a 10% duty, which is likely to impact the margins of the Thai company.

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.”

NTPC 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.

Dhaka says not enough gas for TATA project

AFP reported that talks between TATA and the Bangladesh government on a USD 3 billion investment were stalled after the two sides failed to make a breakthrough. Bangladesh's view that there was not enough gas for the projects, appears to be behind the failure of the weekend talks.

Mr Kamaluddin Ahmed Bangladesh's investment board chief said that they have appraised the group about the resource position adding the country does not have enough gas to ensure dedicated supply to TATA.

Mr Alan Rosling executive director of TATA group said that "The government has not said no to us. Equally they have not said we can dedicate 2 trillion cubic feet of gas to you. Clearly, the basis of steel and chemical plants we proposed was gas based. And we always said it is simple. If gas is available we can discuss, if gas is not available then there are other places in the world which do have gas."

The talks were the first between the authorities and the company after the military backed government took power in January 2007 following the imposition of emergency rule. The government has promised to take up all necessary projects to promote long term economic growth and vowed to clean up corruption before restoring democracy and holding elections before the end of 2008.

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."

NTPC eyeing stake in Indonesian thermal coal mines

Reuters reported that National Thermal Power Corporation Limited is looking to buy majority stakes in one or two Indonesian coal mines.

Mr RS Sharma chairman of NTPC said that "We have already appointed 3 merchant bankers for this and our endeavor is to finalize the stake purchase by the end of this financial year."

He added that it is looking for coal mines with reserves of up to 300 million tonnes of coal.

Mr Sharma said that NTPC has a generation capacity of 29,144 MW. It plans to add 22,430 MW by 2012 and take total capacity to 75,000 MW in 2017 to meet the exploding power demand in the country. NTPC generates most of its power from coal and will need up to 130 million tonnes in the current 2008-09 fiscal year, up from 122 million tonnes a year ago.

Usha Martin net profit for Q1 up by 29% YoY

Indian special steel major Usha Martin Limited has posted a jump of 29% YoY in net profit in the January to march 2008 quarter. Its profit after tax also grew by 29% to INR 505.2 million and net sales increased by 25% YoY to INR 6.73 billion,

Mr Rajeev Jhawar MD of Usha Martin Limited said that “Demand for value added steel products helped us grow.”

For the year 2007-08, its net sales rose by 17.5% YoY to INR 2,308.77 crore, while profit increased by 27.6% YoY to INR 175.38 crore.

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.

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.

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.

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.

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 an 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.

PGCIL eying overseas business opportunities

It is reported that, buoyed by increased autonomy accorded under its newly acquired Navratna status, Power Grid Corporation of India Limited is looking to spread its business overseas and is eyeing opportunities in West Asia and the African markets, with consultancy forays in Nigeria and Dubai on the anvil.

Mr J Sridharan director finance of PGCIL said that "We are in talks with Dubai Electricity & Water Supply to operate consultancy business for them." He added that opportunities in Nigeria are also being looked at. PGCIL has already received a contract for laying 3 transmission lines in Myanmar, while the firm has completed a pre-feasibility report on a proposed under sea transmission between India and Sri Lanka.

PGCIL is planning investment to the tune of INR 55,000 crore over the next 5 years for strengthening the national grid, including inter regional transmission systems and system strengthening schemes. It is planning to increase inter regional power transfer capacity of the grid to more than 37,000 MW by 2012.

PGCIL’s net profit for 2007-08 fiscal stood at INR 1,420 crore, while turnover was recorded at INR 4,700 crore, on the back of increased revenue from its core business and from telecom and consultancy functions.

Patel Engineering bags USD 280 million dam project in US

It is reported that Patel Engineering has bagged the USD 280 million Taum Sauck Upper Reservoir Dam reconstruction project in Missouri USA.

The project will be executed by Patel Engineering’s wholly owned subsidiary ASI RCC. The Taum Sauk Plant is owned and operated by Ameren UE, a subsidiary of Amren Corporation. The Tom Sauck plant is a reversible pumped storage project used to supplement the generation & transmission facilities of Amren UE. Ozark has been chosen to rehabilitate the existing dam at Tom Sauck.

The scope of work involves rebuilding the existing inoperable upper reservoir with the construction of a concrete-faced symmetrical roller compacted concrete dam.

Mr Rupen Patel MD of Patel Engineering said that "This project is a landmark event in the Indian construction sector as it is for the first time that an Indian construction company has penetrated the most stringent and demanding western market. Successful implementation of projects demands latest technology solutions and cutting edge project management skills. These skills, coupled with inexpensive and experienced labor from India, will help us compete against some of the existing giants in the global infrastructure arena."

ASI RCC is a multi state general contractor with prime focus on roller compacted concrete dam construction. Patel Engineering acquired ASI RCC, a US based engineering company for their specific engineering expertise in roller compacted concrete used in construction of dams.

SKS Logistics to enter inland water transport

BL reported that Mumbai based SKS Logistics is planning to enter inland waterways services in a big way. SKS jointly with Inland Waterways Authority of India would be investing INR 100 crore to operate 14 inland vessels in National Waterways 1 and 2 connecting Ganga and Brahmaputra.

SKS along with IWAI have floated two JV companies for operations on these waterways called Royal Logistics & SKS Waterways Limited. In the 60:40 JV, SKS will hold 60% equity and 40% will be held by IWAI. It plans to go for a 70% debt and 30% for funding the projects.

Mr SK Shahi CMD of SKS Logistics said that it is one of the first to be a part of this public private initiative in inland water transport. It has entered into a shareholder agreement with IWAI to start the new venture.

Mr Shahi said that "The vessels would be of 2,000 DWT each and we are looking at Goa as a possible option to build vessels. However, the board will finalise a shipyard by the second week of May 2008." He added that the JV companies will also construct a jetty at Haldia, Kolkata and Pandu in Assam, which will be useful in loading and unloading of containers and so on.

He said that "The vessel will carry cargo such as petroleum products, tea, coal, cement and others. In the first year of operation, we hope to carry one million tonne cargo which will go up to 2 million tonnes in subsequent years. It will generate income of more than INR 100 crore in a year."

SKS Logistics owns and operates 37 coastal vessels carrying 4 million tonnes of cargo.

IWAI undertakes projects for development and maintenance of inland water transport infrastructure on national waterways. It has outlined areas where private sector players can participate for development of Inland Water Transport. They are areas of new technology and forming of joint venture companies for building inland vessels for cargo, passenger or dredgers and river training in National Waterway 1 and 2.

Mr Ratan Tata among biggest brains in business – US magazine

PTI reported that, after being chosen as one of the most influential people in the world by Time magazine, Mr Ratan Tata of TATA Group has been named among the biggest brains in business by another US publication.

The list of '73 Biggest Brains in Business', compiled by business publication Conde Nast Portfolio, features Mr Tata for his USD 2,500 car Nano, along with the likes of media mogul Mr Rupert Murdoch and chief executive of investment bank Goldman Sachs Lloyd Blankfein.

Conde Nast Portfolio, in the accompanying report, said that "Brilliance comes in many forms, whether it is founding a startup that kicks sand in Microsoft's face or creating an affordable car for the developing world. A small number of innovators influence the rest of the influencers in business."

The list published in the latest issue of the magazine is further classified into 5 groups, namely game changers, connectors, tastemakers, rebels and upstarts.

Recently, Time magazine had also named Mr Ratan Tata as one of the 100 most influential people in the world.

Warana Group forays into power generation

It is reported that Warana Group is planning to enter the power generation sector with capital participation along with Maharashtra government.

Maharashtra government's Urjankur scheme will be carried out by the Warana Group for which the group will receive INR 48 crore.

Nucor to form beam JV with Duferco in Italy

Nucor Corporation announced that it has entered into an agreement to acquire 50% of Duferdofin Nucor Srl and a new joint venture being created with Duferco SA for the production of beams in Italy and the distribution of beams in Europe and North Africa. The joint venture will include the Duferco Group's Italian long product production assets and associated distribution companies.

Nucor will pay EUR 423.5 million (USD 658 million) for its 50% equity stake in Duferdofin Nucor. Formation of Duferdofin Nucor and finalization of the acquisition of the 50% stake by Nucor will occur after satisfactory resolution of any regulatory approvals, the transfer of appropriate permits and other contracts and other closing conditions. The transaction is expected to close during the third quarter of 2008. The investment by Nucor values the new venture at around 6.3 times adjusted EBITDA.
Duferdofin Nucor will be the leader in beam production in Italy and Southern Europe. Production of beams and other long products from Duferdofin Nucor's plants in San Zeno, Pallanzeno and Giamorro exceeded 900,000 tonnes in 2007. A new merchant bar mill is under construction in Giamorro and is expected to be operational in late 2008. Additional investments in the Italian operations are under review by the two companies.

Mr Bruno Bolfo chairman of Duferco said that "Since our earliest contacts with Nucor, we have experienced a complete agreement on business vision, which is a fundamental basis for the success of any venture. Nucor's recognized operating skills will greatly assist in further improving the industrial performance of the joint venture and also assist in the future industrial design of the plants. We are very excited by the prospects of this joint venture and look forward to close cooperation with Nucor.”

Mr Dan DiMicco CEO & chairman of Nucor noted that "Our teams have worked together smoothly from the development of the memorandum of understanding through execution of the definitive agreements. Both companies have a similar focus on both customer service and working together as a team. We look forward to working even more intensively together through the closing of this deal and into the exciting times ahead. We are convinced that, working together, Nucor and Duferco will reach new heights of achievement in customer service for the full range of beam and structural products."

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.

ArcelorMittal announced change to its board

ArcelorMittal announced that the Annual General Meeting of shareholders and Extraordinary General Meeting of shareholders of ArcelorMittal that were held today in Luxembourg approved all resolutions on the agenda. 877,992,526 shares, or 63.12% of the Company’s share capital, were present or represented at the meeting. All the resolutions on the agenda were adopted by the shareholders by an overwhelming majority.

It said that “In particular, the shareholders acknowledged the resignations of Mr Romain Zaleski, Corporación JMAC BV and Mr Manuel Fernandez Lopez from the Board of Directors, as well as the expirations of the mandates of Mr Joseph Kinsch and Mr Edmond Pachura. They elected Mr Lewis B Kaden, Mr Ignacio Fernández Toxo, Mr Malay Mukherjee and Mr Antoine Spillmann as members of the Board of Directors.

Mr LN Mittal chairman & CEO of ArcelorMittal, expressed his gratitude to Mr Kinsch for his contribution to the steel industry and ArcelorMittal by saying that “I have been working with him for over two years now and I have come to respect his determination, integrity and strength of character.”

Strike at Raahe works of Rautaruukki

It is reported that the strike at Rautaruukki's Raahe Works in Finland has grown this morning and there are now approximately 800 persons on strike.

Rautaruukki' said that “The workers' action is contrary to the commitment to industrial peace in the valid collective bargaining agreement. The strike affects steel production and rolling, as well as deliveries from Raahe.”

It added that “According to information received by the employer from the local trade union branch at the works, the strike will last about 24 hours. The trade union branch has stated disputes relating to the wage structure and wage increases as the reason for the strike. “

Despite the strike, all functions essential to the personnel, processes and environmental safety are being maintained.

POSCO Gwangyang BF No 3 makes day production world record

POSCO has established a new world record in daily maximum production. POSCO’s 3rd blast furnace at Gwangyang Works produced 14,350 tonnes of hot metal on the April 18th 2008, exceeding the record of 14,200 tonnes established by Oita Steelworks of the Nippon Steel Corporation in March last year.

It also achieved 2.97T/D/m4 as the average monthly discharging rate in April, that is the new world record in the average monthly discharging rate among the large size blast furnaces bigger than 3000m4.

Mr Sang Ho Lee superintendent of Gwangyang Second Steel Manufacturing Plant in charge of the 3rd blast furnace said that “When 14,000 tonnes of hot metal, that we never dreamed, were pouring out, we were strongly self confident and now another goal of challenge is heating the field. We will also achieve the new record in the part of average monthly production and establish the base on which to stably supply 14,000 tonnes of hot metal a day.”

Usually, the competitiveness of blast furnace is evaluated by the standard of daily production, average monthly discharging rate and monthly production. It is significant that the 3rd blast furnace at Gwangyang Works renewed a new world record in two items of them.

ArcelorMittal submits bid for Kremikovtzi

BNN reported that representatives of consultant company Meril Lynch have presented Bulgarian Economics and Energy Minister Peter Dimitrov the bid of ArcelroMittal for 71% of the Kremikovtzi steel mill.

As per report, the actual numbers in the proposal are not supposed to be published before the actual bidding begins but the Minister, however, has ordered that syndicates should also be aware of the data in it.

Other bidders are reported to be Ukrainian billionaire Mr Kostyantin Zhevago and Ukrainian tycoon Mr Rinat Akhmetov.

Ternium willing to keep talks on for Sidor

It is reported that Ternium will continue negotiating the amount pursued for its majority shareholding in Siderúrgica del Orinoco, nationalized formally by the Venezuelan government on Monday.

It said that "Ternium preserves all its rights under agreements, investment treaties and Venezuelan and international regulations. And in order to minimize damages, it is prepared to continue negotiations with the Venezuelan government on the adequate and fair terms and conditions where all or a significant portion of its shareholding in Sidor would be transferred to said government.”

Mr Hugo Chávez president of Venezuela enacted on Monday the nationalization law of the company and set June 30th 2008 as the deadline for Ternium to transfer its local subsidiary to the state.

Mr Zhevago to make bid for Kremikovtzi

Sofia Echo reported that Vorskla Steel is likely to present its offer to take over the management and operations of Bulgaria’s largest steel mill Kremikovtzi. Mr Lyudmil Pavlov chairman of the Metalurzi labour union, part of the Podkrepa labor union bloc confirmed this in a news conference on May 13th 2008.

Mr Pavlov said that Mr Konstantin Zhevago, has the only viable proposal to solve the factory’s problems and Mr Zhevago was committed to keeping the steel mill's payroll unchanged if he takes over Kremikovtzi.

Mr Pavlov said that Mr Zhevago plans to invest USD 10 million to pay overdue wages and USD 90 million would be injected to pay off current debts and boost the cash flow to keep the steel mill running at full capacity, while USD 30 million will be paid to the local Ministry of Environment and Water Affairs as a guarantee that the steel mill's environmental commitments would be met.

He said that “If Zhevago takes over the steel mill, it will be saved from liquidation.”

ArcelorMittal announces changes to Management Committee

ArcelorMittal announced new appointments to its Management Committee, following changes to the Group Management Board announced on April 21st 2008. Members of the Group Management Board also sit on the Management Committee.

The new members of the Management Committee are Mr Robrecht Himpe CEO Flat Europe and Mr Arnaud Poupart Lafarge CEO Africa and CIS. Two of the current members of the Management Committee, Mr André van den Bossche in charge of Global Trade Policy, Steel Contact Groups, Mandates and Associations and Mr Narendra Chaudhary CEO Africa and CIS will be retiring in due course. Mr Van den Bossche will continue to serve as a consultant to the CEO. Mr Chaudhary’s responsibilities will be assumed by Mr Poupart Lafarge upon his retirement.

Mr Vijay Bhatnagar remains a member of the Management Committee and will be taking up his new responsibilities as CEO of India.

ArcelorMittal’s new Management Committee structure is as follows
1. Mr Bhikam Agarwal: Executive VP, Head of Finance
2. Mr Vijay Bhatnagar: Executive VP, CEO India
3. Mr José Armando Campos: Executive VP, CEO Flat South America
4. Mr Narendra Chaudhary: Executive VP, CEO Africa and CIS
5. Mr Philippe Darmayan: Executive VP, CEO ArcelorMittal Steel Solutions and Services
6. Mr Bernard Fontana: Executive VP, Head of Human Resources
7. Mr Jean Yves Gilet: Executive VP, CEO Stainless
8. Mr Pierre Gugliermina : Executive VP, Chief Technology Officer
9. Mr Robrecht Himpe : Executive VP, CEO Flat Europe
10. Mr Carlo Panunzi : Executive VP, CEO Long Americas
11. Mr Michael Pfitzner: Executive VP, Head of Marketing and Commercial Coordination
13. Mr Arnaud Poupart-Lafarge: Executive VP, Africa and CIS
14. Mr Gerhard Renz : Executive VP, CEO Long Europe including Annaba, Bosnia, Ostrava and Sonasid
15. Mr Mike Rippey : Executive VP, CEO USA
16. Mr Lou Schorsch: Executive VP, CEO Flat Americas
17. Mr Bill Scotting: Executive VP, Head of Strategy

Mr LN Mittal CEO of ArcelorMittal said that “I believe that we have a first class management team in place. I have every confidence that with this new structure, and with the collective talents of the individuals appointed to these roles, we are truly building a company built to last”.

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.

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

Tenova to supply a rotary hearth furnace for Volvo Powertrain

The Swedish company Volvo Powertrain has awarded LOI Thermprocess a Tenova LOI Italimpianti company, a contract to supply a roller hearth furnace for the gas carburizing of transmission parts to increase production capacity at its Köping plant. Quality, efficiency and high precision combined with versatile production technology are the requirements posed by Volvo Powertrain for the new plant.

The LOI Italimpianti rotary hearth gas carburizing furnace features zone separation designed for flexible programming and implemented using thermally insulated, gas tight intermediate doors. The heating up, carburizing and diffusion stages of the process are therefore carried out in separate zones of the continuous furnace ring. The use of a controlled atmosphere enhances quality, reduces process times and cuts costs. The charge material is transferred through the furnace on trays. These trays are charged into the furnace and discharged by a manipulator, thus reducing wear. Following the completion of the heat treatment program the charge can be quenched in an oil bath at oil temperatures of 40 to 70°C or 50 to 200°C. The furnace is heated by vertically positioned low NOX radiant tubes.

The LOI Italimpianti furnace design with zone separation ensures extremely precise temperature and atmosphere control in the various furnace zones. Production with the new heat treatment plant is scheduled to start in June 2009.

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.

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.”

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.

Thyssenkrupp share buyback completed

On the basis of the authorization granted by the Annual General Meeting on January 18th 2008, the Executive Board of ThyssenKrupp AG resolved on January 31st 2008 to purchase up to around 3% of the Company’s capital stock before the authorization expires.

On March 7th 2008, Commerzbank AG, Frankfurt am Main, completed the buyback. The stock was purchased exclusively in the XETRA trading system of the Frankfurt Stock Exchange.

A total of 14,791,100 shares, representing around 2.9% of the capital stock, were purchased at a cost of around EUR 522.7 million.

Lead & Zinc Complex to inject BGN 120 million

Standart reported that Lead & Zinc Complex PLC, one of Bulgaria's largest lead and zinc refineries, will make BGN 120 million investments.

CAPEX is earmarked for construction and renovation works as well as for extensive modernization, which will be carried out in three stages.

Lead & Zinc Complex PLC hopes to meet the latest and highest eco requirements. The company has already signed a BGN 4 million contract with the locally based building company Ustra Stroi which is the one to revamp the complex.

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.”

ArcelorMittal Q1 net up by 5% to USD 2.4 billion

World’s largest steel company ArcelorMittal has announced results for the three months ended March 31st 2008.

Q108 highlights
1. Shipments of 29.2 million tonnes up by 8% YoY
2. Sales of USD 29.8 billion up by 22% YoY
3. EBITDA of USD 5.0 billion up by 16% YoY
4. Net income of USD 2.4 billion up by 5% YoY
5. Merger synergies run rate of USD 1.6 billion achieved by end of quarter
6. Three dimensional growth strategy advancing with
A. Transactions announced or completed in Argentina, Brazil, China, Costa Rica, Egypt and Venezuela
B. Development of product diversification, with transactions in pipes and tubes and wire businesses
C. Enhancement in value chain, with progress in both mining activities and distribution. New mining initiatives announced or completed in Russia, Mozambique and South Africa

Mr LN Mittal chairman and CEO of ArcelorMittal said that “ArcelorMittal has again delivered a strong set of numbers for the quarter, with EBITDA of USD 5 billion.”

He added that “We have also now fully captured the USD 1.6 billion of synergies that we announced we expected from our successful merger with Arcelor.”

ArcelorMittal gives positive guidance for Q2 of 2008

World’s largest steel company ArcelorMittal, while announcind results for the three months ended March 31st 2008, has given a positive outlook for Q2 of 2008.

It said that EBITDA guidance for Q2 of 2008 to exceed USD 6.5 billion as compared with USD 5.0 billion in Q1of 2008 and USD 5.3 billion in Q2 of 2007.

Mr LN Mittal chairman and CEO of ArcelorMittal said that “Despite global economic uncertainties, we are continuing to see strong demand for steel and a healthy pricing dynamic. This global demand is supported by the continued industrialization of a number of key, emerging economies and ArcelorMittal is well positioned to continue to take advantage of these dynamics. “

He added that “Looking forward, we expect EBITDA in the second quarter to be higher than in the first quarter to exceed USD 6.5 billion, largely on account of strong demand for our products across all regions.”

ArcelorMittal to hike flat products prices in EU in Q3

ArcelorMittal has announced a price increase for its flat carbon products in Europe, for new bookings with delivery scheduled for July and August 2008.

It said that the new base price level for hot band will be EUR 720 per tonne and cold rolled and coated flat product prices will increase accordingly.

ArcelorMittal release said that “This further price increase is a direct consequence of the significant rise in raw material prices since the beginning of this year including coking coal and has been further exacerbated by the sharp rise of scrap prices in recent months”

Mr Patrick Depardon VP sales and marketing of ArcelorMittal Flat Carbon Europe said that "These price increases have been made necessary on account of the unprecedented escalation in input costs that we have seen this year. We are taking all available steps to ensure undisrupted supply to our customers."

Zinc surges on supply cut fears in China due to earthquake

Bloomberg reported that zinc prices on LME and SHFE have surged on concerns that China's strongest earthquake in 58 years may reduce output and supplies zinc in the world's largest producer.

Zinc for delivery in three months on London Metal Exchange rose by as much as USD162 or 7.4% to USD 2,340 per tonne, the biggest intraday increase since February 27th 2008. It later traded at USD 2,310 per tonne.

Zinc for July delivery on the Shanghai Futures Exchange, rose by as much as CNY 725 per tonne 4% from the previous settlement to CNY 18,920 yuan per tonne, the highest since April 11th 2008.

As per reports, zinc smelters in Sichuan province, where the magnitude 7 9 quake struck on May 12th 2008, accounted for 5.5% of total Chinese output in 2007. Sichuan Hongda Chemical Industry Co, China's third largest zinc producer, is based in the area.

Mr Wang Zheng, an analyst at Fubao Metal Co in Shanghai said that “People are not just worried about production losses in Chengdu. Output may be lost from neighboring Gansu province as well because of power shortages.' The provinces affected by the quake account for more than 10% of China's total production of refined zinc. It may take at least three months to restart output if it is halted.

NanoSteel appoints Mr Baker to board of director

The NanoSteel Company, a leader in the development and commercialization of nanostructured steel alloy surface technologies for industrial applications announced the appointment of mining industry business leader Mr Mark R Baker to its board of directors.

Mr Dave Paratore president & CEO of NanoSteel said that "I am very pleased to welcome Mr Mark Baker to NanoSteel's board of directors. His outstanding reputation as a leading advisor in the mining industry and his extensive senior management experience and strategic business planning expertise will be very beneficial to our company. Since mining is an important market for NanoSteel, I look forward to Mark making significant contributions to the future development and market share growth of our portfolio of Super Hard Steel coating solutions in this industry."

Mr Baker is a former board member and senior executive of Komatsu America, Inc. While at Komatsu, Baker led the initial product development and worldwide strategic business planning for the introduction of the first commercial autonomous haulage system in the mining industry. Before joining Komatsu, he was a co founder of Modular Mining Systems, a mining management and control system software development company in Tucson, where he held various positions of increasing responsibility, including executive vice president and director.

US officials clear Patriot Coal purchase of Magnum

It is reported that US antitrust officials on Tuesday cleared a deal for Patriot Coal Corp to acquire Magnum Coal Co, an Appalachian producer owned by several investment funds, including one controlled by Microsoft Corp founder Bill Gates.

The transaction was included in the US Federal Trade Commission's daily listing of deals cleared by antitrust officials.

An April filing with the US Securities and Exchange Commission showed Cascade owned nearly 5 million shares of privately held Magnum. Bigger stakes were held by two ArcLight Energy Partners funds and smaller stakes were held by several Citigroup funds and the Howard Hughes Medical Institute.

Patriot Coal in a statement said that the deal still needed the approval of its stockholders and that the acquisition should be completed by mid 2008.

American Coal lays off 187 workers at southern Illinois mine

AP reported that the owner of a southern Illinois coal mine laying off 187 workers because of what it calls sudden, unforeseeable circumstances and physical calamities.

American Coal Company said that affected workers at the New Future Mine in Galatia were told of the layoffs Friday.

Mr Rob Murray vice president of American Coal's parent company Murray Energy said that the physical calamities are operational in nature from a mining engineering and geological standpoint. He added that they're beyond the company's control.

The layoffs came one day after a Congressional committee's chairman asked federal prosecutors to investigate last year's deadly collapse at a mine in Utah at least partly owned by a Murray Energy subsidiary.

Japanese ferrous scrap export price hits record

JMB reported that Japanese ferrous scrap export price hit record JPY 64,850 per tonne from Tokyo bay for H2 grade at monthly tender for June shipment held by Kanto Tetsugen on Tuesday, which increased by JPY 6,850 from previous tender.

Recession reports - Unlikely to affect steel world - USIMINAS

According to Mr Renato Vallerini director of sales to external markets for Belo Horizonte based integrated steelmaker Usiminas, the economic slowdown in the US is not expected to affect the global steel market or Brazilian steelmakers.

Mr Vallerini during a presentation at the Coaltrans 2008 conference in Rio de Janeiro said that "Risks in the American economy are not likely to inhibit new investments worldwide. In fact, the short to medium erm scenario looks very favorable for investments in steel mills around the world.”

Mr Vallerini during his speech praised China as being responsible for giving the industry a much needed boost in 2002. He said that "China rescued the steel industry from stagnation six years ago. If it weren't for China and other Asian countries, steel production in the rest of the world would have been insignificant. China should continue to drive growth in the global industry."

Mr Vallerini pointed out that 25% of world production is in countries with low production costs. He added that the global steel production should continue to rise but annual growth rates are due to gradually diminish in coming years.

He said that "Production should go up 6% in 2008, 5.5% in 2009, 5% in 2010 and also 5% in 2011.”

OSAKA and Sumitomo develop highly active visible light responsive Photocatalysts

OSAKA Titanium Technologies Co Ltd and the Corporate Research & Development Laboratory of Sumitomo Metal Industries, Ltd announced that they have jointly developed a new type of highly active visible light responsive photocatalyst.

This new product shows about five times higher visible light photocatalytic performance than conventional products for decomposition of volatile organic compounds such as acetoaldehyde and toluene. Moreover, it can decompose odoriferous substances such as ammonia. Because of its performance, the new product may be able to bring about rapid spread of visible light responsive photocatalysts in the various fields.

Accordingly, OSAKA Titanium Technologies Co Ltd is planning to start mass production of the new product during the current fiscal year in order to meet the expected growth in demand.

Photocatalysts absorb light and decompose organic matters using its energy have drawn attention as eco materials with various environmental purification functions. The current market size of photocatalysts is said to be approximately JPY 90 billion most of which is estimated to be for the outdoor use of UV type photocatalysts. Going forward, the market is expected to reach about JPY 400 billion by 2015 as a result of an increase in the application of visible light responsive photocatalysts indoors or under illumination during the night when UV light is limited.

Kobe Steel opens new compressor plant in Shanghai

Kobe Steel Ltd announced the opening of the new compressor plant of subsidiary Kobelco Compressors Manufacturing Corporation at Shanghai in China.

Kobelco Compressors Manufacturing relocated its operations to the northern part of Shanghai's Jiading Industrial Zone, about 15 kilometers northwest of its former facility. The new plant continues the manufacturing operations, as well as continues to employ the workers of the previous facility.

In April 2005, Kobelco Compressors Manufacturing began manufacturing standard compressors in the southern part of the Jiading Industrial Zone in northwestern Shanghai. However, Shanghai decided to implement the Jiading New Town Plan, which involved the moving of dozens of Japanese companies in the area. In response to the Chinese government's request to relocate, KCMS moved to the northern part of the district with the guidance and support of the Consulate-General of Japan in Shanghai and JETRO Shanghai.

Kobelco Compressors Manufacturing began marketing the energy efficient Kobelion II series of oil flooded standard compressors in 2007 in China first, ahead of the Japanese market. The compressors are noted for having one of the world's highest levels of discharged air volume and energy efficiency. Orders for these compressors have been growing. Users have given high marks to the Kobelion II series and with an expanded number of distributors, orders from Japanese affiliates and local companies in China have risen. With higher sales volume, the Kobelion II series is contributing to higher profits at KCMS.

In comparison to the previous facility, the new plant has a larger floor space, cranes with higher lifting capacity, and a larger power source for trial compressor operation. The new plant is also equipped to manufacture large oil-free screw compressors with motor outputs up to 400 kW.

Name: Kobelco Compressors Manufacturing (Shanghai) Corporation
Location: Jiading Industrial Zone, Shanghai, China
Capital: USD 5 million
Equity share: 75% Kobe Steel, Ltd.
Established: February 2004
Start-up: April 2005
Product: Standard compressors
Chairman: Mr Shuzo Mohri senior officer of Kobe Steel, Ltd. & General Manager, Compressor Division
Employees: 51

Moody assign Ca rating to Kremikovtzi

Moody's Investors Service said that it has downgraded the corporate family rating of Kremikovtzi AD to Ca from Caa3 citing the company's failure to make a timely payment of interest under its EUR 325 million notes.

The outlook on the Bulgarian steel producer is stable

Bekaert Q1 trading update

Belgian steel cord and wire manufacturer Bekaert announced that in the first quarter of 2008 it achieved consolidated sales of EUR 593 million and combined sales of EUR 903 million, an increase of 15.3% YoY and 11.4% YoY respectively compared with the same period in 2007.

Bekaert consolidated sales increase was 13.5% from organic growth and 7.1% from the net movement in acquisitions and divestments, while fluctuations in several exchange rates had an adverse effect of 5.3%.

Consolidated sales

(Sale in EUR million)

Combined sales

(Sale in EUR million)

Bekaert advanced wire products posted vigorous sales growth. The Asian and Latin American activity platforms in particular performed excellently, as did building products. Wire Europe had a strong quarter, with higher demand for galvanized wire products mainly. Wire North America’s firm sales increase by 13.2% driven partly by the start up of a trading operation for wire products, was canceled out entirely by exchange rate movements. Wire Latin America’s sound growth was the product of higher volumes and higher selling prices reflecting the immediate pass-through of price increases of raw material. Wire Asia performed well, thanks to the successful start-up of galvanized wire production at Karawang in Indonesia. The growth in building products sales was due partly to increased market penetration in Turkey and the Middle East.

ThyssenKrupp announces result for H1

ThyssenKrupp AG, Germany's largest steelmaker, against the background of slowing global economic growth, it maintained its course in the H1 of 2007/2008. As expected, order intake and sales matched the strong prior year levels, while profits were higher than anticipated.

The Group’s earnings before taxes reached EUR 1,388 million. They were impacted in particular by pre operating costs of EUR 128 million for the construction of the new steel mills and restructuring expense of EUR 10 million in the Steel segment as well as gains on disposals of EUR 27 million. Before these nonrecurring items, earnings would have been EUR 1,499 million. The Group’s earnings were lower than a year earlier, mainly due to the drastic decline in stainless steel prices.

The highlights for the H1 of 2007/2008 were as follows:

1. Order intake was level with the previous year at EUR 27.4 billion.
2. H1 sales were virtually unchanged against the prior year period at EUR 25.5 billion.
3. EBITDA was EUR 2,280 million as compared with EUR 2,538 million a year earlier.
4. H1 earnings before taxes decreased from EUR 1,634 million in the prior year to EUR 1,388 million.
5. Net financial liabilities at March 31st 2008 were EUR 1,988 million, an increase of EUR 2,211 million as compared with September 30th 2007, when we reported net financial receivables of EUR 223 million. On March 31st 2007, net financial liabilities stood at EUR 897 million.

The highlights for the Q2 of 2007/2008 were as follows:

1. Order intake at EUR 14.1 billion was up slightly from EUR 14.0 billion.
2. At EUR 13.2 billion, sales were higher than EUR 13.1 billion a year earlier.
3. EBITDA was EUR 1,197 million, an improvement of 16%
4. Earnings before taxes were EUR 742 million as compared with EUR 572 million in the 2nd quarter 2006/2007. Before major nonrecurring items, EBT would have been EUR 784 million.

Dr Ekkehard Schulz executive board chairman said that “We continue to forecast earnings before taxes before nonrecurring items including pre-operating expense for the steel mills in Brazil and the USA of over EUR 3 billion. Based on the current situation we expect to achieve sales of EUR 53 billion.”

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 marks.

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.

PSL FZE to supply pipes for Palm Beach Housing in Dubai

Indian pipe major PSL Limited announced that its Sharjah based subsidiary PSL FZE based in, has received an order worth USD 45 million for steel pipes from Japanese Hanwa Co Ltd.

PSL FZE shall be supplying pre coated piling pipes, totaling 60 kilometer in length and fabricated from steel along with anti corrosion coating, for the water home project at the Palm Beach Housing Complex of Dubai based Al Nakheel Properties.

Mr Ashok Punj MD of PSL said that "The production against this order is expected to commence shortly and is required to be completed within next 12 months.”

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.

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.

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.

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.

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.

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.

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.

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.

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.

DEWA signs 6 water and power deals worth USD 3.2 billion

Dubai Electricity & Water Authority recently announced the signing of 6 mega projects worth a total of AED 12 billion in power generation and water desalination as demand rises.

Dubai has seen a significant rise in utility requirements. The emirate's power consumption in 2007 was 24,756 giga watts as compared to 21,475 in 2006 and the number of consumers was 403,669 compared to 339,900 in 2006. Water consumption in 2007 was 72,588 million imperial gallons per day as compared to 64,961 million imperial gallons per day in 2006, with the number of consumers at 331,318 as compared to 279, 247 in 2006.

Some of the projects undertaken by DEWA, signed with leading national and international companies, will be finished in 2009, while the rest will be completed by 2010.

Meanwhile, a statistical study recently released by the Federal Electricity & Water Authority has revealed that in Fujairah, Ajman, Umm Al Quwain and Ras Al Khaimah, 588.72 million gallons of water and 756.24 giga watts of power were consumed in 2007.

Dr Abdullah Al Amiri chairman of Emirates Energy Award Committee said that alternatively, a substitute to traditional energy is being pursued by the UAE government. He added that "The growing interest in alternative energy sources is a big step forward that should be supported by the introduction of relevant legislation. We should take all necessary measures to protect the environment and forestall further deterioration of the earth resulting from the detrimental effects of global warming."

Mr Al Amiri also mentioned that Dubai is making a concerted effort by implementing initiatives such as the current waste recycling projects, which are design-ed to turn waste into energy resources.

FEWA has approved a draft law that is now with the Federal National Council, adding an amendment to Article 23 under which private investors will be permitted to establish power and water plants in areas supervised by FEWA, with the water and power tariffs to be supervised by FEWA. The amendment has, however, triggered some reservations, for it is likely to lead to further power and water price increases.

Turkish rebar mills to cut production on higher billet prices

Turkish rebar produces said that they are suffering as a result of the rising prices for billets and therefore they are cutting production.

Current import price of steel billet in Turkey has reached USD 1,000 per tonne FOB. Higher billet prices means higher rebar prices, but the export price of Turkey’s steel rebar is prevailing at USD 1,150 to USD 1,200 per tonne.

Scrap prices pushing Turkish rebar prices

Rusmet reported that, with a surge in scrap prices worldwide, Turkish steel mills are paying more than USD 700 per tonne on CFR basis for imports. It has resulted in a big jump in prices of billets and other long products.

As per market reports, billets have been sold to re rollers at price levels of USD 1,100 per tonne and now moving towards USD 1150 per tonne, as a result, Turkish mills are now offering sections at around USD 1,200 per tonne on FOB basis.

Turkish producers are aiming now to achieve USD 1,200 per tonne on CFR UAE ports for rebars on theoretical weight invoicing.

Chalco raises cost of Saudi smelter project by 50%

It is reported that Aluminum Corporation of China Limited has raised the cost of its smelter project in Saudi Arabia by 50% to USD 4.5 billion after allowing for the construction of a power plant. Chalco will hold a 40% stake in the 1 million tonne per annum capacity plant and 20% of an associated power plant. The smelter will cost USD 3 billion.

Mr Xiao Yaqing chairman of Chalco said that it plans to tap cheaper power resources in the Middle East as electricity prices rise in China.

Meanwhile, Fitch Ratings said that aluminum production in the Middle East will outpace growth in other regions over the next 5 years as producers abandon higher cost locations in the US and Western Europe. It added that aluminum production in the region could double by 2011 from 2 million tonnes now.

Iran inks maritime MoU with Azerbaijan

Islamic Republic of Iran Broadcasting reported that Iran and Azerbaijan have signed an agreement to cooperate in maritime trade and shipping, expressing interest in cooperation in the Caspian Sea.

In the joint Iran Azerbaijan ports and maritime cooperation commission, the two countries' officials stressed the expansion of cooperation in various fields, including expansion of transportation ties, especially in activities relating to shipping and ports.

A senior official with Iran's Ports & Shipping Organization said that compliance with maritime safety regulations and inspection rules as well as environmental issues in the Caspian Sea are among the key points of the MoU signed between the two sides.

The Azeri delegation visited the facilities and investment projects at the Imam Khomeini Port. They also discussed and exchanged views with the officials of Tide Water and Kaveh companies on possibilities for joint investments and transportation of transit products.

Angang plans 10 million tonne steel plant in Fujian

China Times has reported plans of Angang Steel's plan of building a 10 million tonne per year steel project in Fujian Province, after Baosteel and WISCO projects in Guangdong and Guangxi Provinces were approved.

As per report, the Angang’s project would be supported by Fujian Province and is expected to come near the port of Ningde city. Framework agreement of the project was r signed in June 2006 between Fujian provincial government and Angang.

The report added that Fujian authorities on May 7th announced that Ningde city is suitable for constructing the projected two phases that will have capacities of 6 million tonnes per year and 4 million tonnes per year respectively.

In fact, Angang had proposed to build a 1 million tonne per year wire rod item in Ningde in 2005, which was aborted under effect of Tieben issue. But it seems that Angang has never given up its intent of entering into the Fujian market.

Fujian Province is reportedly produced 5.884 million tonnes of steel in 2007, in contrast to estimated demand of 13 million tonnes.

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.

Chinese HDG export offers moving up

It is reported that hot dipped galvanized coil price are still going up in China.

On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 6900 per tonne, 0.5mm material by a private steel mill at CNY 7230 per tonne up by CNY 300 per tonne to CNY 350 per tonne and CNY 230 per tonne respectively from April end.

Export offers are further raised to reflect the rise in domestic market. A Hebei based tier two steel maker told Mysteel that it is quoting for 1.0mm HDG in DX51D SGCC Z120 at about USD 1080 pet tonne to USD 1090 per tonne for June production and July shipment. There is an extra of USD 60 per tonne to USD 65 per tonne and USD 100 per tonne for 0.55mm to 0.59mm and 0.5mm to 0.54mm material respectively.

(Sourced from MySteel.net)

Sinosteel to take major stake in EAF maker in Changchun

It is reported that Sinosteel Group and the Economic Committee of Changchun City’s Changchun Electric Furnace Equipment company signed a framework agreement on May 11th 2008 in Beijing.

Sinosteel Group and Changchun Electric Furnace will adopt cooperation mode including setting up of joint venture, Sinosteel will invest by cash and Changchun Electric Furnace will use its effective asset to invest. Sinosteel Group will hold at least 60% stake of the joint venture.

It is understood that after the reorganization, Sinosteel Group and Changchun Electric Furnace will strive to construct "China EAF base" with international advanced level, annual production value exceeding CNY 500 million, of which Sinosteel Group will invest CNY 100 million to CNY 150 million.

At present, Changchun Electric Furnace main products includes steel making electric arc furnace, refining furnace etc, the domestic market share reached more than 70% and export to more than 10 countries. The production value of 2008 is expected to reach CNY 200 million.

Shuicheng to hold steel prices due to earthquake

It is reported that Shuicheng Iron and Steel Group has decided not to increase the prices of steel products in Chengdu and Chongqing areas, which are severely damaged by the recent earthquake.

The decision was collectively responded by most steel companies in Southwest China, who required that sales companies and distributors are not allowed to increase the price of steel products to deal with the aftermath and reconstruction together with people in these areas.

Shuigang announced that if any of their distributors increases the price, they should be informed so that they can take necessary action against such firms.

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 utilized utilization in Beijing National Stadium, also known as Bird’s Nest, the main track and field stadium for the 2008 Summer Olympics and the new center of CCTV/

Jinxi’s H beams have won ISO9001-2000 quality mark and are also certified for CE marking. They have been exported to more than 15 countries during last 2 years.

Sinosteel donates CNY 5 million for earthquake relief

It is reported that Sinosteel has donated CNY 5 million to China Red Cross Organization for the rescuing and helping earthquake affected people.

Sinosteel called on all sectors of the society to take urgent actions to help people in earthquake stricken areas tide over the difficulties.

The 7.8 magnitude devastated a region of small cities and towns set amid steep and forestry hills northwestern of Sichuan provincial capital of Chengdu with its epicenter in Wenchuan County. Striking in mid-afternoon on Monday, the sudden earthquake caused great economic losses and spiritual injuries.

After the earthquake, Sinosteel immediately contacted with Sinosteel of Sichuan, Sichuan Carbon Company of Sinosteel and other subsidiaries close to the epicenter to find out the situation and devote to the rescue work. Presently, Sichuan Carbon Company of Sinosteel is affected a little seriously with its office building cracks and part of the production facilities collapsed, but the company has taken effective measures to settle these.

Jiangsu Shagang supporting Nanjing Industrial University

It is reported that on May 12th 2008, Jiangsu Shagang Group and Nanjing Industrial University signed an agreement to create a new platform for production and research cooperation. According to the agreement, the two sides will jointly explore new type of effective school enterprise strategic cooperation mode.

The main areas includes
1. To establish Nanjing Industrial University Shagang Institute on the basis of Shagang Group staff training center
2. To recruit metallurgical engineering, machinery and other genius
3. To build laboratories, engineering technology centers, enterprise postdoctoral innovation base

Ansteel hikes domestic plate prices for June shipment

It is reported that Ansteel has raised its medium and heavy plate prices by CNY 150 per tonne for June shipments.

The new price for Q235 grade 12mm to 20mm medium and heavy plate is now CNY 5510 per tonne not including taxes or price including taxes is CNY 6467 per tonne.

But the company retained the ex work price of hot rolled coil and cold rolled coil for June as the same level as in May 2008.

The mainstream quotation of hot-rolled coil of Q 235 5.5 mm in Shanghai was CNY 5700 per ton, rose up CNY 100 per ton than that at the end of April and CNY 6700 per ton for 1.0mm cold rolled coil price, rose up CNY 200 per ton than that in the end of April.

Most traders agreed the price adjustment this time and they think that price now are high enough, if they continue to raise price, it will bring pressures for their sales.

Chinese steel mills plan for HR production in May

According to Mysteel's survey on the Chinese steel makers, Chinese major steel makers plan to produce 7.482 million tonnes HRC in May 2008 down by 3.7% MoM.

The planned export allocation is 1.457 million tonne, which will account for 19.4% of total output. The tonnages affected by maintenance will be 130,000 tonne.

According to above data, the production in May 2008 is normal but also subject to raw material cost. Also the HRC export tonnage will skyrocket for May 2008 shipment and allocation for domestic market is expected to drop.

Thus the production in May 2008 is normal and the HRC export tonnage continues to go up for May shipment and allocation for domestic market is expected to drop.

Planned sales volume in home market in ‘0000 tonnes
Planned export tonnages in ‘0000 tonnes
Change MoM CNY

Update on Chinese export and import in 4 months

In million tonnes

In million tonnes

South Korea to import more steel from China

Xinhua reported that Chinese steel imports into South Korea are expected to see further increase due to fast and stable economy growth in South Korea as the annual growth rate of 4% to 5% ensures that its demand for steel products would keep going up.

South Korea's import value of steel, agriculture, semiconductors in 2007 saw growth of 58.7% YoY, 53.8% YoY and 36.1% YoY respectively

It has to import lots of raw material to meet the demand from the export oriented economy. Customs show that the value of total imports improved by 15.3% to US$256.69 billion, an increase of 15.3% year on year. Government forecasts that the total import value would approach RMB399.08 billion and the estimated growth is likely to grow by 13.1% to US$399 billion

At the same time, South Korea is promoting the implementation of free trade between South Korea and US. In addition, it is also in negotiation with Japan, Canada, Mexico and India on expansion in free trade. Besides, the national consumption growth and equipment investment increase in South Korea is forecast to reach 4% and 6% respectively, which would play a great role in bolstering the increase in imports.

As a matter of fact, the structure of bilateral trade between South Korea and China is complementary. South Korea import large quantities of raw material and products from China to produce what they need to export.

Though the growth rate of average import price is 23.9% in Q1, the price increase of imported Chinese product only contribute 2-3%, which shows that imports of Chinese products would not cast adverse effect on South Korea's economy.

MMK hikes steel production in 4 months by 11% YoY

RBC reported that Magnitogorsk Iron and Steel Works boosted its steel production by 10.8% to 4.753 million tonnes in the January to April 2008 period as compared to January to April 2007 period.

The report said that MMK's steel products output amounted to 4.346 million tonnes in January to April 2008, which is 10% YoY greater than in the same months in 2007. Pig iron production climbed by 10.1% YoY to 3.434 million tonnes and rolled steel production went up by 11% YoY to 4.6 million tonnes.

NLMK declares Q1 results for major companies<