JSW Steel April 2008 crude steel output up by 14% YoY

JSW Steel Limited has announced that its crude steel production rose by 14% YoY to 0.28 million tonnes in April 2008, while flat products output rose by 9% YoY to 0.23 million tonnes.

In million tonnes

JSW Steel, in a press release, said that the figures also include production from its Salem plant.

SAIL RSP MD calls for proper industrial waste management

Mr BN Singh MD of SAIL Rourkela Steel Plant, while addressing at 'International Seminar on Waste Management in Iron & Steel Industry', jointly organized by Indian Institution of Plant Engineers and RSP, said that "The steel industry produces solid, liquid as well as gaseous wastes in huge volume. In order to sustain and grow the industry has to passionately pursue the issue of waste management."

Mr Singh said that "In India we use iron ore with 60% to 65% iron content and the following process produces a lot of waste. The challenge before us is not just to utilize it but to properly manage it. Environment protection measures are nothing but cost reduction strategies."

Elaborating on the fact that the production of steel is bound to increases with the progress of the nation, he emphasized that all possible steps have to be taken to save the earth from the severe environmental hazards like global warming.

Mr NP Singh executive director (works) of RSP presented a brief on the global as well as national scenario in terms of waste generation by the steel industry. Cautioning the steel industry about the increasingly stringent environment protection regulations, he expressed his hope that the seminar will provide an excellent platform for sharing and implementing new ideas in this regard.

A number of delegates from many SAIL units, National Mineral Development Corporation as well as renowned steel producers like TATA Steel, Baosteel, Ashok Steel Industries of Nepal, Essar Steel and Beijing took part in this 2 day long seminar.

Steel prices in Nepal to surge die to Indian export tax

Himalayan News Service reported that steel and iron prices in the Nepalese local markets are going to shoot up by about NPR 10 per kilogram due to India’s decision of imposing 5% to 15% export tax.

Mr Kiran Prakash Saakha of Saakha Iron & Steel Industry said that "The new export tax will increase the prices of steel and iron raw materials by about USD 160 per tonne."

He added that the price per kilogram of iron and steel would shoot up by NPR 10.

According to him, Nepal imports steel and iron raw materials at an average rate of USD 900 per tonne. He said that "The option for the Nepali industries would be seeking special preferences on imports from India or find new import partner."

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.

Orissa CM writes to PM on mining policy

SNS reported that Mr Naveen Patnaik chief minister of Orissa has shot off yet another letter to Prime Minister Dr Manmohan Singh highlighting his demand of circulation of the proposed amendments to the Mines & Mineral (Development and regulation) Act 1957,

Mr Patnaik said that the mineral rich states are kept in the dark by the centre about the proposed national mineral policy and amendments to the MMRD Act.

He said that discussions with mineral rich states ought to take place before finalizing the national mineral policy and amending the MMRD Act. He added that by the establishment of mines based industries, the investment will increase, employment opportunities generated within the states and revenue will also be shooting up.

Mr Patnaik further added that the union government should consider the value addition of the products, as most important criterion, for leasing out the mines. He has repeatedly objected to the proposed amendments along with his counterparts of Rajasthan, Jharkhand and Chhattisgarh.

On April 12th 2008, he had written a letter to the PM seeking circulation of the proposed amendments and had also pointed out that in the absence of such documents, concerned officers of the state will not be in a position to present their views at meetings convened by the ministry of mines. He wrote to the PM again informing him of the valid demand of the mineral bearing states were being ignored by the center.

Vesuvius sees strong refractory market in India

BL reported that, with several steel making capacities expected to go on stream during the next 2 to 3 years and the domestic steel industry projected to grow in double digit from 2010-11 onwards, refractory manufacturer Vesuvius India Limited is hopeful of sustaining top line growth of 15% to 20% from 2011-12.

Mr Tanmay Kumar Ganguly MD of Vesuvius India said that it achieved a top line growth of 17% in the calendar year 2007. He added that "Last year, when the steel industry grew at 8% to 9%, Vesuvius India achieved a top line growth of 17%. This was driven by a strong domestic growth of 20% and a more modest export growth of 11%. With the steel industry expected to grow in double digits by 2010-11, we hope to achieve a top line growth of 15% to 20% from fiscal 2011-12."

Mr Ganguly said that Vesuvius had evolved from being a refractory manufacturer and seller to a company that offers total solutions. At present, 50% to 60% of the company’s new service contracts could be attributed to its new positioning as a total solutions provider. This had facilitated better market penetration and, currently, the company has a 52% share of the domestic market for continuous casting refractories.

He said the capacity of Vesuvius’ factory in Kolkata is being doubled to 1,600 pieces a day from 800 at present at an investment of INR 50 crore. It has already commissioned its 40,000 tonnes a year refractory manufacturing unit at Visakhapatnam.

During the year ended December 31st 2007, Vesuvius India registered a total income of INR 323.10 crore up from INR 275.84 crore posted in 2006. In 2007, it posted a net profit of INR 32.07 crore as compared with INR 21.18 crore in 2006.

Usha Martin embarks on INR 2,100 crore CAPEX plan

PTI reported that Usha Martin Limited has embarked on an INR 2,100 crore expansion plan to ramp up capacity to 1 million tonne.

Mr Prasant Jhawar VC of Usha Martin Limited said that the capacity would go up to 700,000 tonne from the present 325,000 tonne by November 2008.

Mr P Bhattacharya joint MD of Usha Martin Limited said that out of INR 2,100 crore, Usha Martin has already spent INR 800 crore on expansion and other work including adding up power plant capacity, development of coal mine, steel melting shop and blooming mill.

He said with all the facilities coming up within this fiscal, the company was expecting a positive growth in its business plan and eyeing a turnover of INR 3,500 crore. He added that the capacity would touch 1 million tonne by 2009-10.

Indian cement makers cut prices

In what would come as a relief to the government engaged in fighting inflation, cement prices have started falling. Significantly, this has come at a time of the year when demand usually peaks and leads to a price hike. Cement makers are reducing prices despite increase in input costs, mainly due to higher supply on account of new installed capacities and the government’s ban on export.

While Shree Cement has reduced prices, others like India’s largest cement maker ACC has decided to freeze its prices for the quarter.

Mr HM Bangur MD of Shree Cement offered no explanation for the price reduction, which has happened despite an increase in the input cost of INR 16 per 50 kilogram bag in a year’s time. Industry sources, however, said that Shree Cement’s decision to cut prices was prompted by its urge to retain its market share given the increase in overall supply.

Mr Sumit Banerjee MD of ACC said that "Responding to concerns expressed by the government, ACC has decided to hold its cement prices over the coming 2 to 3 months." He added that the price freeze will erode the company’s margins.

Meanwhile, Mr RG Bagla executive president of JK Cement Group said that the new capacities, ban on export and increased import from Pakistan have increased supplies in the market. He added that "The period from April to June is considered to be the peak season when prices go up. But it has not happened."

Graphite India to expand electrode capacity at Durgapur

BL reported that Graphite India Limited will expand graphite electrode capacity by 10,500 tonnes at a cost of INR 187.50 crore at its Durgapur plant. The expansion plan follows a surge in demand from the arc furnace steel sector locally and globally. Graphite India exports around 70% of its production.

It currently has a total electrode capacity of 78,000 tonnes, 60,000 tonnes in India and 18,000 tonnes in Germany.

Mr KK Bangur chairman of Graphite India Limited said that the expansion project would be complete within the next 18 to 24 months and internal accruals will largely fund the project. He added that "We may also go in for short term debts to part finance the project."

Mr Bangur also said that it has no plans to sell any more property. The last round of FCCB conversion has seen the company’s paid up capital grow to INR 30.22 crore.

Meanwhile, Graphite India has reported a net profit growth of 37% YoY at INR 133.66 crore for the year to March 31st 2008. The profit growth in the fourth quarter of 2007-08 has been placed at 42% YoY.

Gujarat NRE riding coking coal wave

The worldwide increase in steel production has led to a higher demand for inputs such as coking coal. Hence, it’s no surprise that the long term contract price of coking coal has surged by 200% as compared to last year to around USD 300 per tonne.

Though this has a cascading effect on steel products, coking coal miners and metallurgical coke manufacturers are set to gain from this trend. Gujarat NRE Coke Limited is one such player which manufactures met coke and mines coking coal. Looking at the current steel demand scenario and the coking coal supply problem in the international market, the prices of both these products are expected to remain robust in the near future.

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 finalize 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.

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.

SJVN conferred with Mini Ratna status

Satluj Jal Vidyut Nigam Limited has been conferred with the prestigious Mini Ratna category I status by government of India. SJVN has the distinction of being conferred with the much coveted status within only 4 years of coming into commercial operations.

Meeting all the parameters fixed by the department of public enterprises, SJVN has bagged the coveted title which will make it eligible for enhanced delegation of powers and freedom of working. The Mini Ratna companies are in 2 categories namely category I and category II. SJVN has been conferred with the category I status as a result of its commendable performance.

SJVN's 1500 MW Nathpa Jhakri hydro power station has been consistently improving power generation since coming into full commercial production in May 2004. During 2007-08, it generated 6432 million units of energy while during 2006-07 it had achieved 6014 million units. In 2005-06 the power generation was only 4104 million units and in 2004-05 it was 5147 million units.

As a result of the gradual improvement in power generation, it has been improving its net profits. For the year 2006-07, it had posted a net profit of INR 732 crore while for the year 2007-08, the net profits are likely to be INR 715.75 crore.

Against its performance for the year 2007-08, SJVN has already paid an interim dividend of INR 136 crore to the equity partners government of India and the government of Himachal Pradesh. For the year 2006-07, it had paid a dividend of INR 235 crore.

With 412 MW Rampur hydro electric project under construction and 5 projects under various stages of investigation in the states of Himachal Pradesh and Uttarakhand and one 402 MW project allocated in Nepal, SJVN has an ambitious plan to add 3000 MW of power generation during the 11th and 12th five year plans.

Bajaj, Renault and Nissan sign JV for small car project

It is reported that after 6 months of negotiation, Bajaj Auto has announced its JV with European car maker Renault and Japanese giant Nissan to manufacture a small car in India with a wholesale price tag of USD 2,500.

A tripartite JV will be formed in due course, in which Bajaj will hold 50% and Renault and Nissan 25% each. Bajaj will oversee the design, engineering and manufacturing of the ULC. The three companies will shortly sign a MoU with the Maharashtra government for the plant, which will come up in Chakan. The Maharashtra government had already earmarked 500 acres of land, of which around 200 acres will be reserved for a vendor base.

The car, code named ULC, will hit the roads in 2011, three years after TATA Motors' Nano, which is expected to launch in October 2008 and is priced at around INR 100,000.

Videocon to foray into hydropower

After foraying into the telecommunications and thermal power sectors, Mr Venugopal N Dhoot CMD of Videocon Industries said that it is sewing up plans to enter into hospitality and hydropower and in talks with the Uttarakhand government for various projects.

Mr Dhoot said that "We are certainly interested in the hydropower and hotel sectors and are ready to invest in Uttarakhand."

Videocon has already invested INR 400 crore in a manufacturing plant at Kashipur in Uttarakhand.

As far as hydropower is concerned, Videocon expects to produce nearly 2,000 MW in the first phase of the plan. Already, company officials have held talks with the top state government authorities. It has also held talks with the Uttarakhand Power Corporation Limited for selling the power.

Videocon recently came up with a proposal to set up a thermal power plant in the West Godavari district of Andhra Pradesh.

Kottayam container depot gets minor port status

Kerala government has accorded minor port status to the first inland container depot, which is nearing completion at Muttam in Kottayam district on public private participation under the Indian Ports Act 1908. The project has the uniqueness being the first inland waterway port in India. The facility will be open to public in the near future for commercial shipping operations.

Declaration of Kottayam as a minor port will also regulate the movement of vessels and prevent clandestine operations as well as assist in the Government’s efforts for industrial, agricultural and tourism development of the region and development of inland waterways.

The project will be of real utility to those in the central part of the state once the union shipping ministry’s proposal to connect the Vaikkom Kottayam waterways to national waterway number 3 materializes. The objective is to promote cargo consolidation and use the potential of inland waterways. Moreover, the total logistic cost can be reduced by resorting to road as the mode of transport, to Kochi port from Kottayam.

The project is a JV promoted by Kerala Industrial Infrastructure Corporation and South Indian Chamber of Commerce & Industry with Central Government assistance. This is an export promotion facility being set up with assistance from the union commerce ministry, which is to be operated through road and water ways.

The facility will have the capacity to handle 250 TEU of containers, for both export and import. This is being set up with the intention of catering to the needs of nearly 1,000 registered export or import concerns operating from the districts of Pathanamthitta, Kottayam and Idukki.

Jyoti receives turnkey order from Aravali Power

Jyoti Limited recently announced that it has received a prestigious turnkey order from Aravali Power Company Private Limited for design, engineering, supply, erection, testing and commissioning of cooling water system and make up water system for 750 MW Indira Gandhi Super Thermal Power Plant.

Jyoti Limited has associated itself with Hyosung Ebara Company Limited of Korea for design of cooling water pumps.

The value of this order is INR 27.24 crore and is expected to be completed within 30 months from the date of award.

NTPC Simhadri aiming for 92% load factor

BS reported that NTPC Simhadri Super Thermal Power Project, which operates a 1,000 MW plant at Parawada, is targeting to achieve 92% plant load factor during the current fiscal.

Mr R Venkateswaran GM of Simhadri Power Plant said that in 2007, the plant load factor of the unit was only 88.5% as against 92% in 2006, owing to turbines overhaul works. He added that due to drop in PLF, power production reduced to 7,779.66 million units in 2007-08 from 8,026 million units in 2006-07.

Mr Venkateswaran said that NTPC is adding another 1,000 MW at the Simhadri plant and the stage II units will start production from 2011-12. Power purchase agreements for the Simhadri stage II have been signed with Andhra Pradesh, Karnataka and Tamil Nadu, Kerala and Puducherry electricity boards. Over 30% of the stage II production would be dedicated to Andhra Pradesh.

He further added that the Simhadri power station utilized 70.54% of ash produced during the year 2007-08. The plant has been generation about 2 million tonnes of ash annually.

GAIL India announces 2007-08 results

GAIL India Limited has announced the following audited results for the quarter & year ended March 31st 2008

The results for the January to March 2008 quarter
GAIL India has posted a net profit of INR 7223.80 million for January to March 2008 quarter up by 6.1% YoY as compared to INR 6807.30 million for January to March 2007 quarter. Total income has increased from INR 39963 million for the quarter ended March 31st 2007 to INR 50349.50 million for the quarter ended March 31st 2008.

The results for the Year ended March 31st 2008
GAIL India has posted a net profit of INR 26014.60 million for the year ended March 31st 2008 up by 8.9% YoY as compared to INR 23866.70 million for the year ended March 31st 2007. Total income has increased from INR 165921.30 million for the year ended March 31st 2007 to INR 185645.50 million for the year ended March 31st 2008.

The consolidated results for the Year ended March 31st 2008
GAIL India has posted a profit of INR 27829 million for the year ended March 31st 2008 up by 9.3% YoY as compared to INR 25453.20 million for the year ended March 31st 2007. Total income has increased from INR 171014.10 million for the year ended March 31st 2007 to INR 194113.60 million for the year ended March 31st 2008.

BHEL to set up 125 MW IGCC plant in AP

Bharat Heavy Electricals Limited has announced that it would set up integrated coal gasification combined cycle power plant at Vijaywada with Andhra Pradesh Power Generation Corporation.

Mr Santosh Mohan Dev union minister for heavy industries & public enterprises said that "Today, we are crossing a milestone in power generation technology with the signing of MoU between APGenco and BHEL for setting up a 125 MW IGCC plant at Vijaywada."

Mr K Ravi Kumar CMD of BHEL said that "BHEL has earmarked on several initiatives to meet the growing demands of India's power sector. We have also formally taken over Visakhapatnam based Bharat Heavy Plate and Vessels and we are confident of meeting the capacity addition targets for the 11th plan period, with BHPV complimenting our business."

The Andhra Pradesh government has extended various concessions for the revival of the BHPV. The concessions include the transfer of title of land measuring 386.73 acres in possession of the BHPV as gift title deed in favor of BHPV and also waiver of registration and stamp duties. Waiver of sales tax arrears of INR 42.16 crore and waiver of NALA tax of INR 4.3 million.

BHEL is also planning to increase its power equipment manufacturing capacity from 10,000 MW to 15,000 MW per annum by 2009.

Jharkhand plans to put wind power capacity

It is reported that Jharkhand, which does not feature prominently on India's wind energy potential map, has taken early steps to establish wind power capacity in the state. As per report, Jharkhand Renewable Energy Development Agency is keen to develop wind power capacity with private sector participation.

Mr BK Rai spokesperson of Jharkhand Renewable Energy Development Agency said that the agency was exploiting several possibilities that include seeking consultants and turnkey contractors to set up wind farms for JREDA. Consultants will be required to assess wind power potential across several locations in the state while contractors will also enter into a 10 year complete maintenance contract with JREDA. Expressions of interest are currently being invited from potential consultants and contractors.

Mr Rai stated that, subsequently, JREDA would also look at forming JVs with potential wind energy developers. Private entrepreneurs will also be allowed to set up self owned wind power projects with subsidy benefits extended to them as per guidelines issued by the ministry of new and renewable energy.

Jharkhand currently has no installed wind power capacity. Centre for Wind Energy Technology has installed 50 meter high masts to study wind power potential in two areas namely Pithoria in Ranchi district and Netarhat in Gumla district.

FACT inks pact with Central Warehousing for CFS

The public sector FACT has reached an understanding with other public sector companies aimed at putting to effective and productive use of the assets of fertilizer company.

The FACT management and Central Warehousing Corporation have exchanged a MoU in the presence of Mr Ram Vilas Paswan union chemical & fertilizers minister to form a JV to set up a container freight station facility at Udyogamandal. The project will require about 50 acres of land and an investment of around INR 100 crore.

The project will offer a return of 20% to 25% and land for the project is proposed to be given on lease basis, with FACT retaining ownership. To increase the revenue generation, FACT proposes to diversify into profitable areas and utilize its land resources.

Container Corporation of India Limited has also expressed interest in setting up a container freight station facility on FACT’s land. CONCOR is planning for about 20 to 30 acres of land for their proposed container freight station operations at Kochi. It is also interested in establishing rail connectivity to Udyogamandal, for its joint venture, which will also be of benefit to FACT for movement of its raw material and finished projects. The project requires an investment of INR 50 crore.

GE Shipping earmarks INR 2,385 crore CAPEX

It is reported that Great Eastern Shipping would be investing INR 2,385 crore over the next 3 years to acquire ships and upscale operation of its subsidiary company, which will add to about 0.85 million DWT.

Mr KM Sheth executive chairman of GE Shipping said that it plans to fund the investments by way of 30% equity and rest from debt.

GE Shipping has recorded a growth of 24% YoY in net profit at INR 299 crore for the January to March 2008 quarter as against INR 241 crore in January to March 2007 quarter. The total income rose by 32% YoY to INR 783 crore from INR 593 crore.

Gains from sale of ships stood at INR 45 crore as against INR 18 crore. However, it suffered an exchange loss of INR 40.96 crore as against a gain of INR 6 crore in 2006.

For the year ended March 31st 2008, its net profit has gone up by 54% YoY to INR 1,357 crore as against INR 883 crore reported in 2007. Total income increased by 42% YoY to INR 3,203 crore as against INR 2,251 crore. For the full year, it had a forex gain of INR 145 crore.

Winsome Textile’s 3.5 MW hydel project in HP underway

Projects Today reported that civil works of Winsome Textile Industries' 3.5 MW hydroelectric power unit at Sidhpur in Himachal Pradesh has commenced recently.

The project is scheduled for completion by April 2010.

Winsome Textile has appointed Dr Hutarew & Partner (India) as consultant.

Financial closure for Srinivasa Constructions power plant

Projects Today reported that Srinivasa Constructions is in the process of achieving financial closure for setting up a 10 MW hydel power unit in Gajapati district of Orissa.

The project will cost INR 45 crore and is slated for completion by October 2009.

Ennore Port may tap capital markets with INR 8 billion IPO

BL reported that Ennore Port is planning to tap the capital markets with an initial public offering of about INR 8 billion. The proposal is at a very initial stage and recently discussed by Ennore port authorities with union shipping ministry officials.

Ennore Port is also considering appointment of a consultant to study the possibility of raising funds through a public issue.

In 2007-08, Ennore Port handled 11.6 million tonnes of cargo and is now constructing a new facility costing INR 4.8 billion that can handle 12 million tonnes of iron ore per annum.

Indian Railways cut port levy on iron ore for local use

BL reported that freight rate for iron ore is set to come down further with Indian Railways deciding to remove the 30% port congestion surcharge levied on the mineral meant for domestic use. The move is set to benefit steel companies such as Essar Steel, Ispat Industries and Vikram Ispat which do not have captive mines. These companies depend mainly on rail transport for moving raw material to their steel plants.

A fortnight ago, Indian Railways had shifted iron ore from class 180 to 170. The reclassification had resulted in freight cut of ore by 4% to 5%. According to industry sources, the move to remove the port congestion surcharge would act as an added cooling effect on the economy. The government has been fighting inflation due to rise in prices of various raw materials. However, the port congestion surcharge on iron ore meant for exports would continue to remain at 100%.

A senior Rail Bhawan official said that "We have done every possible policy change to bring down inflation in prices of domestic steel. However, iron ore for exports would continue to attract 100% surcharge as the companies command a significant margin outside India due to surge in global steel prices."

The proposed changes follow a series of high level government meetings over finalizing a steel package to contain inflation. The reduction in railway freight was also discussed last month in a meeting of committee of secretaries, and the finance minister had also met the concerned secretaries for taking steps to cut input costs.

Iron ore constitutes an important cost element in the entire process of steel making. Raw material prices often constitute 30% of the cost of steel. With iron ore prices rising 100% in a year and expected to rise further, India Railways’ initiative is expected to reduce cost pressure on the steel sector.

Indian Railways transported 53.59 million tonnes of iron ore for exports in 2007-08 up by 37.9% YoY as against 38.84 million tonnes of iron ore transported in 2006-07.

Secondary steel makers cut prices by INR 4,000 per tonne

BL reported that secondary steel producers have reduced prices by INR 4,000 a tonne, following a INR 4,000 a tonne price cut effected by hot rolled steel producers earlier this month. The move is expected to contain spiraling prices of downstream steel products such as cold rolled coils, galvanized steel, tubes and pipes.

The decision emerged out of a meeting convened by union ministry of steel with the secondary steel manufacturers. In the meeting it was also decided that the secondary producers will hold prices for three months, similar to the announcement made by the primary producers after their meeting with the Prime Minister earlier this month.

Mr RS Pandey union steel secretary said that "The secondary steel producers have assured that they will reduce prices of their flat products by INR 4,000 a tonne and maintain the new price line for the next 3 months."

Mr Pandey said that in order to increase availability of steel in the domestic market, the producers have also pledged to import raw material, process it and export it under the Advance Licensing Scheme to improve the domestic supply side situation. He added that the fiscal measures taken by the government have already brought down prices of long steel products by around 20%.

Mr SC Mathur secretary general of Cold Rolled Steel Manufacturers Association said that the government had assured the producers that it would consider their request to remove export duty on steel products. He added that "The ministry said that it will consider our request to keep the implementation of the notification on steel export duty in abeyance."

Lanco Infra consortium wins bid for Vizhinjam project

BS reported that Hyderabad based Lanco Infratech Limited, in consortium with Pembinan Radzai Sdn Bhd of Malaysia, has won the bid for development of the USD 2 billion Vizhinjam International Container Port project in Kerala. The port project would be developed in 4 phases with an ultimate capacity of 6.5 million TEUs.

According to Mr Sanjay Joshi director (infrastructure) of Lanco Infratech Limited, the first phase would be completed in 60 months and the remaining 3 phases would be initiated after reaching the stipulated traffic levels. It will raise 70% of the required funds through debt and the remaining through equity. The financial closure would be two years down the line.

Mr Joshi said that "This is the first major port for Lanco Infratech.'' He added that it is currently building a captive coal terminal for its power project at Mangalore.

The Vizhinjam port, when developed would attract a fair share of the container transshipment traffic meant for India, currently handled by international ports at Colombo, Malaysia, Al Salalah and Singapore.

It may be recalled that Kerala government had called for bids in August 2007 through Vizhinjam International Seaport Limited on a 33 year concession basis. NCC Maytas, Videocon Gammon Sical, Apollo Enterprise DS Construction and Zoom Developers Portia Management Services were the other contenders for the project.

IRCON bags USD 1 billion construction deal in Malaysia

BL reported that Indian Railways' subsidiary IRCON International has won a USD 1 billion contract to construct a 103 kilometer long high speed rail segment in Malaysia.

The scope of work involves building an electrified double line between Seremban and Gemas in southern Malaysia. It also includes electrification and signaling works.

The Seremban Gemas stretch is part of the double tracking of Malaysia's north south railway and involves construction of 34 river bridges and 13 road over bridges.

The formal signing of the contract is scheduled to take place on May 16th 2008.

NTPC to borrow INR 105,000 crore to meet target in 11th Plan

PTI reported that National Thermal Power Corporation Limited is looking to borrow over INR 105,000 crore from domestic and overseas markets in the next 4 or 5 years to meet its target of adding 22,430 MW power generation capacity by 2012.

An NTPC official said that "Out of the INR 160,732 crore fund requirement during the 11th Plan, INR 55,224 crore will come from internal resources and the rest will be borrowed." He added that domestic borrowings are being pegged at INR 45,199 crore while external commercial borrowings are being tentatively pegged at INR 60,309 crore.

NTPC is also planning to invest INR 65,278 crore in coal and gas based power plants set for commissioning during the plan period. Another INR 7,525 crore is earmarked for hydroelectric foray and INR 14,080 crore in coal mining and LNG ventures, while INR 2,446 crore is the outlay for JVs and INR 4,897 crore the spillover investment from the previous plan.

In preparation for the 12th Plan projects, NTPC would invest INR 61,180 crore by 2012, including INR 41,981 crore for thermal plants and INR 15,926 crore for hydro units.

NTPC owns 15 coal based and 7 gas or liquid fuel plants with a total capacity of 27,350 MW. It also has 4 JV plants with a capacity of 2,044 MW. It plans to add 22,430 MW of new electricity generation units during 2007-12. Of this, 15,180 MW would be through coal based power generation, 4,550 MW through gas based generation and the balance from hydroelectric power.

The official further added that "Out of NTPC’s 11th Plan target, 1,990 MW has already been commissioned. Construction work is in full swing for another 16,680 MW projects. Contracts for the balance projects would be awarded in 2008."

India may allow more cement import from Pakistan

ET reported that Pakistan has turned out to be an unusual ally in India’s fight against inflation. The two governments are working on ways to enable greater supply of cement from Pakistan by removing infrastructure and procedural constraints at the Wagah Attari border.

Indian Railways is in talks with Pakistan Railways to allow 4 rakes to transport cement instead of the existing one. Additionally, India has decided to allow Pakistani trucks carrying cement to cross into Amritsar for unloading.

The move is expected to increase total cement imports from Pakistan to 600,000 tonnes by end of June 2008 as compared to 300,000 tonnes imported in the last 6 months. This will not just address India’s problem of supply constraint for cement but will also help in checking price rise.

A union government official said that "Supplies from Pakistan so far has been 300,000 tonne over the past 6 months since India allowed import of cement from Pakistan. The amount of import will at least double by end of June 2008."

Talks are also on to put in place a conveyor belt at the border on which cement can be loaded from Pakistan’s side, pass through an x ray machine attached on the Indian side, and then unloaded. This would save the authorities the hassle of unloading sacks one at a time from trucks and screening them individually.

Although, under pressure from the government, some companies have reduced prices marginally this week, prices are still high. New capacities are also being created by the domestic industry to bridge the supply gap, but it would not make a substantial difference immediately.

States wheel in green power into their energy portfolio

It is reported that states are increasingly warming up to the idea of including green power in their energy portfolio.

At the last count, power regulators across 12 states had firmed up Renewable Purchase Obligation, which makes it mandatory for all distribution utilities in that state to source a minimum quantum of electricity annually from renewable sources.

Expressed as a percentage of its total consumption, the RPO varies from 1% to 10% across the states that have implemented it so far, with regulators in States such as Karnataka, Madhya Pradesh and Tamil Nadu pegging the limit at up to 10%.

On a pan India basis, the total RPO commitment by these 12 states cumulatively adds up to around 35,518 million units, which is around 5.33% of the total power consumed in India during 2007-08.

With the RPO mechanism still in the evolution stage in India, more states are likely to follow the example of the 12 states, where regulators have already implemented the scheme. Coming at a time when prices of hydrocarbon resources across the world are touching all time highs, the mandatory purchase of green power by regulators is expected to give a new lease of life for the renewable sector.

State RPO fixed per annum RPO estimates
Andhra Pradesh 5% 3,207
Gujarat 2% 1,375
Haryana 3-10% 2,935
Karnataka Min 10% 4,032
Kerala 5% 783
Madhya Pradesh 10% 4,156
Maharashtra 3% 3,447
Orissa 450
Rajasthan 7.50% 2,775
Tamil Nadu 10% 6,578
Uttar Pradesh 7.50% 4,697
West Bengal 3.80% 1,103
RPO fixed per annum
RPO estimates in million units

CDM clearance received for WHRB captive power plant

Ramsarup Industries has received the clean development mechanism clearance from UNIFCCC for its 20 MW WHRB captive power project at Kharagpur in West Bengal.

The proposed plant is slated to generate up to 20 MW of power hourly using waste gas emanating from MBF and DRI kilns, which will help reducing the dependence on the power grid as well as making the plant eco friendly and green.

The project will reduce annually 114,996 tonnes per annum of carbon dioxide that will have been otherwise emitted into the atmosphere. Apart from reduced carbon dioxide emission, the plant will be saving substantial energy costs.

48 firms show interest in eastern DFC’s KK line

It is reported that at least 48 companies including Larsen & Toubro, Gammon India, Punj Lloyd, Alstom Projects India and Afcons Infrastructure have expressed interest to participate in the EPC contract for the 300 kilometer long Kanpur Khurja section of the eastern dedicated freight corridor project.

The scope of work involves commissioning of double track electrified railway lines with signaling and telecommunication system and other related infrastructure for operation of freight trains on turnkey basis.

The request for proposal for the project is likely to be invited by August 2008 and the final contract for the work will be awarded by October 2008.

The Bhaupur Mandrak section on the Kanpur Khurja route is the first stretch on, which the process for the construction work has been initiated out of the entire 2,700 kilometer long dedicated freight corridor comprising of the eastern corridor from Sonnagar to Khurja and Western Corridor from Dadri to JNPT.

The total cost of the entire project is estimated to be INR 28,121 crore.

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.”

Nucor and Sidenor to form long product JV

Nucor Corporation announced the signing of a MoU with Sidenor SA to purchase a 34% share of a new joint venture which will be formed for the production and distribution of long steel products and plate in the Balkans, Turkey, Cyprus and North Africa.

The contemplated joint venture will include all of the steelmaking and related activities of Sidenor, excluding the activities and assets of Corinth Pipe Works.

Nucor said that “Final agreement to establish the joint venture company is dependent on completion of appropriate due diligence, approval of appropriate regulatory bodies and approval of the boards of directors of both companies.”

Sidenor is the largest producer of steel in Greece with additional steelmaking, rolling and reinforcing mesh operations in Bulgaria and the Former Yugoslavian Republic of Macedonia. The main steel plants are located in Thessaloniki and Almyros in Greece, in Pernik, Bulgaria and in Dojran, FYROM. In addition, Sidenor operates steel distribution centers throughout the Balkans, either alone or with partners. Total 2007 steel production was nearly two million tons, which is expected to grow significantly in the near future. Sidenor recently began operation of a new rolling mill at its Stomana Industry plant in Bulgaria, which will bring Sidenor's total steel rolling capacity to more than 3.6 million tonnes per year by 2009.
Mr Sarados Milios CEO of Sidenor said that "We are pleased that a company with the reputation and capabilities of Nucor Corporation has agreed to join with Sidenor to further its strategic growth in the rapidly developing markets of southeastern Europe, and we strongly believe that this cooperation will bring many benefits to both companies."

Mr Dan DiMicco CEO & chairman of Nucor said that "We are very happy to work with Sidenor towards a joint venture that will join and leverage the excellent people and operations of both companies. In our discussions, we have been repeatedly impressed by the cultural compatibility of our two companies. We look forward to the formal establishment of the joint venture and beginning our work together."

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.

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."

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.”

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.”

ArcelorMittal aiming at 200 million tonne output

Reuters reported that ArcelorMittal aims to boost output by two thirds to 200 million tonnes in the long term.

Mr Yves Koeberle an executive of ArcelorMittal on the sidelines of the Metal Bulletin Iron Ore Symposium in Monte Carlo said that, said that the group wants to achieve the target compared to forecast steel production of 120 million tonnes in 2008.

He said that the target has no time frame as yet, but around 30 million tonnes of the expansion is already planned to come from Brownfield expansions.

Mr Koeberle said that "We have already identified a Greenfield project in India adding that there also were prospects for new plants in China and elsewhere in Asia.”

ArcelorMittal uses 150 million tonnes a year of iron ore for its steel plants, accounting for 10% of world consumption. The group buys from 60 suppliers, but it has also said it is seeking to boost self sufficiency in iron ore to over 70% from 45% currently to protect itself against price hikes.

ArcelorMittal gives positive guidance for Q2 of 2008

World’s largest steel company ArcelorMittal, while announcing 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.”

Algoma Steel commissions portable baghouse

Algoma Steel Inc announced that they have successfully completed a trial commissioning of a portable baghouse on No 7 Blast Furnace.

Algoma in a statement said that “The search for this technology commenced in January of this year and after some engineering and construction we have managed to obtain and install a portable unit on No. 7. These portable units are one of a host of interim measures the Company is putting in place to reduce air emissions in preparation for the start up of No. 6 Blast Furnace later this summer.”

Mr Armando Plastino COO said that “We are very pleased with the results we’re seeing from the portable baghouse. So much so that we have ordered one more unit for No. 7 and have plans to install at least one unit on No. 6 when we start it up. These units will serve as excellent interim measures until we take delivery of the permanent emission control systems in December of this year, and the fall of 2009. In fact, when combined with the other mitigating measures we have planned, we will actually see a reduction in particulate emissions, even with No 6 online.”

Mr Plastino added that “By investing nearly USD 70 million in emission controls, Algoma is ensuring this expansion is aligned with our ongoing commitment to environmental and economic sustainability; fostering secure employment and prosperity for the communities where we work and live.”

Algoma Steel has submitted applications to the provincial Ministry of the Environment for the start up of No. 6 blast furnace and for the installation of a permanent baghouse on said furnace. The start up of No. 6 is a critical component in Algoma Steel’s strategic plan to expand production to four million saleable tons.

Malaysian steel exporters to benefit from new rule

The Edge Daily reported that steel related stocks on Bursa Malaysia rose on the government’s move last week to free up all restrictions on the industry.

Analysts said the abolition of ceiling prices of bars and billets would further enhance the transparency issue that has plagued the industry while the lifting of import restrictions would address concerns on the shortage of certain steel products and create a more competitive pricing environment. They said that the liberalization of exports would also be positive for the local steel manufacturers to capitalize on the current regional shortage of the material.

OSK Investment Research said that local players could increase exports without the need to dilute their domestic market share, as their products remain competitive, given the logistic advantage, the acute global shortage and possibility of the government introducing no barrier tariff on steel imports.

It said that “We also reckon that the government may introduce local standard or testing requirements on imported steel products to safeguard public interest and safety, hence non-tariff barrier to imports.” It added that the liberalization also put an end to its concern on the possible export restrictions as well as tightening of the steel price control mechanism for steel products, excusing good performance posted by steel mills.

The Malaysian government announced of lifting of ceiling prices of steel bars and billets. It also announced the lifting of restrictions on imports and exports of long steel products such as bars and rods. Previously, there was a cap on ceiling prices of steel and the building material was not allowed to be exported while imports were restricted.

MSC Q1 net profit jumps by 135% YoY

Malaysia Smelting Corporation Bhd said that its net profit for the first quarter ended March 31st 2008 jumped by 135.18% YoY to MYR 15.31 million on the back of higher tin prices and contributions from its Indonesian subsidiary PT Koba Tin. Its revenue rose by 60% YoY to MYR 572.6 million as compared with MYR 357.87 million a year earlier.

Announcing its quarterly results yesterday, MSC attributed that its favorable results to higher tin prices, which was caused by tightening of supply.

Currently, Indonesia and China are the top producers of tin, but the Chinese government in January imposed a 10% tax on tin exports to protect tin supply from flowing out of the country, pushing tin prices to record highs.

MSC in a statement said that “London Metal Exchange 3 month tin price at March 31st 2008 was USD 20,575 per ton vis à vis USD 13,700 per ton on March 31st 2007.”

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.

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.

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.

Solideal to introduce steel surcharge

Solideal has announced that it is to introduce a steel charge on all wheels and assemblies with effect from 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 kilogram.

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." He added that it is also planning to announce a general price increase on tyres and wheels in June 2008.

OSAKA and Sumitomo develop new 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.

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

Flat product prices in US set to rise in July

US flat rolled price will undoubtedly continue to rise in July. As per report steel mills have already stopped accepting June orders at present, as the buyers are waiting for the July price.

AK Steel has become the first one recently to announce a price rise: the price of all new orders is being raised by USD 83 per ton.

The company's new HRC price is about USD 1,240 per ton while that of CRC is at USD 1,350 per ton. It is expected that other mills will follow AK’s price levels.

(Sourced from YEIH.com)

Thermal Imager for high temperature measurements

Designed for process monitoring and control for various high temperature applications, High Performance Thermal View 640N provides non contact measurement of 2D temperature distributions with high dynamic range and spatial resolution.

Continuous temperature measurement range from 600 to 1,500°C is realized with array of 640 x 480 or 300,000 temperature points with measuring frequency of 25 frames per second.

Caterpillar and Claycrete enter marketing agreement

Caterpillar Inc and Claycrete Ltd have entered a marketing agreement to provide a roadway and pad construction solution to operators of mines and oil and gas sites as well as to owners and builders of unpaved roads and paved roads

Under the agreement Caterpillar® dealers will have exclusive rights to market Claycrete products worldwide and Caterpillar Global Mining, a division of Caterpillar Inc will support and oversee the business.

Claycrete Ltd based in Perth provides a unique process that combines project management and proprietary chemicals to transform native soils containing clay and/or limestone into pavement like roads, site pads or solid base for paved roads. The result is weather resistant, long lasting and environmentally friendly. Since the Claycrete process uses in situ soils, it is fast and relatively simple.

For more than 15 years Claycrete has been contracting with a variety of natural resource businesses and governmental organizations to manage and supervise construction using the Claycrete process. Clients include AngloGold, ArcelorMittal, BHP Billiton, BP, Freeport McMoran, Murchison Metals/POSCO, Newmont Mining, Rio Tinto, Statoil and the governments of Western Australia, Algeria, Ivory Coast and Nigeria.

Andritz buys hydro assets from GE

The Engineer Online reported that General Electric has agreed to sell some of its Energy’s hydro business to Austrian technology group Andritz. Financial details of the transaction, which is subject to approval by anti trust authorities, were not disclosed.

As part of the agreement, Andritz will acquire GE Energy’s hydropower technology and assets such as engineering and project management resources, research and development capabilities and specialized generator component production sites in Canada.

According to Andritz, the acquisition will further complement its existing product portfolio in the field of large Francis type turbines and generators with output capacity of at least 400MW. In addition to its work in the hydropower market, Andritz specializes in the supply of customized plants, systems and services for the pulp and paper industry and the steel industry.

Firm rebar price in Tokyo and Osaka

JMB reported that concrete reinforcing steel bar market price accelerates to increase toward JPY 110,000 per tonne in Tokyo and Osaka.

The price level is JPY 103,000 for base size for direct shipment from makers to users in Tokyo and JPY 105,000 in Osaka, which increased by JPY 33,000 or more than 40% from the beginning of the year due to the makers price hikes one after another with pressure of higher raw materials cost. The market price could reach JPY 110,000 level when the dealers try to pass the higher cost price on the market.

Ruukki launches its solution for single storey construction in Poland

Ruukki introduces in Poland its new solutions package that simplifies and makes the design and construction of commercial and industrial buildings more efficient. Innovative solution includes fast design, manufacture and installation of foundation, steel frame and envelope structures for premises suitable e.g. for retail, logistics or industrial operations.

Ruukki’s new solution enables flexible scaling of building dimensions. It also enables flexible choices for cladding material as well as for window, door and gate openings. At best, the foundation, frame, walls and roofing can be completed within a couple of months of the customer’s order.

Mr Daniel Mach senior vice president of Ruukki Construction said that “We work and further develop innovations that serve the interests of our customers in the construction market. A fast planning and construction process saves our customers and partners’ time and resources. This is especially important for the end user who can begin using the building much faster. Our solutions also mean less financial and operational risk when the various parts of the building are designed and manufactured to fit each other.”

Mr Piotr Gebicki vice president of Ruukki Construction said that “The biggest time saving is reached by the easy and fast design and offering process. We have created a tool a software application that enables efficient structural planning together with the customer. A detailed offer can be provided at once. Also erection of industrial halls is easy with our integrated and prefabricated structures.”

Ruukki has a strong presence in Poland providing solutions for customers in the construction and engineering industries, and supplying a wide selection of metal products and services to other end users. Ruukki currently employs about 1,400 people in Poland, mainly in production units in Oborniki, Żyrardów and Wrocław.

XSTRATA Copper announces AUD 1 per share cash offer for Indophil Resources

Xstrata Queensland Limited a wholly owned subsidiary of Xstrata plc announced its intention to make an all cash offer to acquire all of the issued and outstanding shares in Indophil Resources NL for AUD 1.00 per share, valuing Indophil’s issued and to be issued share capital at approximately AUD 426 million.

Xstrata’s cash offer is priced at a 28% premium to the closing price of AUD 0.78 per Indophil share on the Australian Securities Exchange on May 14th 2008 and a 29% premium to the volume weighted average price of Indophil shares over the last month on the ASX. The Offer will be financed through Xstrata’s existing credit facilities and cash on hand.

Highlights
1. Cash offer of AUD 1.00 per share valuing Indophil at AUD 426 million
2. Premium of 28% to last close of AUD 0.78
3. Premium of 29% to one month volume weighted average price of Indophil shares
4. Pre commitment from Indophil’s largest shareholder, Lion Selection to accept the Xstrata offer with respect to 17.76%, taking Xstrata's relevant interest in Indophil's shares to 19.99%
5. Provides Indophil shareholders with an immediate opportunity to realise the full value of their stake in the Tampakan copper project in the Philippines for a risk-free, attractive cash premium that fairly values the potential of the project
6. Enables Xstrata to increase its interest in the issued common shares of Sagittarius Mines Inc, the holder of the Tampakan copper project to 100%

Xstrata also announces that it has entered into a pre bid acceptance agreement with Lion Selection Limited, the largest shareholder of Indophil in respect of a 17.76% stake in Indophil.

Indophil’s flagship asset is its 34.23% interest, with a right to acquire an additional 3.27%, in the Tampakan copper project in the southern Philippines. Xstrata Copper has management control and holds 62.5% of the issued common shares in Sagittarius Mines Inc, the holder of the project.

The Offer will be subject to certain customary conditions, including:
1. Xstrata obtaining a relevant interest in 90% of Indophil's shares and Indophil's securities convertible into shares;
2. No objection to the acquisition by Australia’s Foreign Investment Review Board;
3. The absence of a material adverse change with respect to Indophil’s business and assets; and
4. No prescribed occurrences as listed in section 652C of the Corporations Act 2001.

In addition, the offer will be conditional on the 50.1% minimum acceptance condition in the Indophil takeover offer for Lion Selection not being satisfied or waived or Indophil not declaring its offer for Lion Selection to be unconditional.

Mr Charlie Sartain CEO of Xstrata Copper said that “This offer represents a highly attractive premium to Indophil’s current share price and gives its shareholders an immediate opportunity to realise a cash value for their investment without the risks inherent in developing a project of this scale. The decision by Indophil’s largest shareholder, Lion Selection, to accept Xstrata's offer in respect of 17.76% of the shares in Indophil confirms the attractive value proposition offered.”

Deutsche Bank is acting as financial adviser and Allens Arthur Robinson is acting as legal adviser to Xstrata in relation to the Offer.

EIB to grant EUR 12.5 million loan to Safal Steel

It is reported that the European Investment Bank is lending EUR 12.5 million to Safal Steel to support the establishment of a greenfield metal coating production facility at Cato Ridge in KwaZulu Natal of South Africa.

The bank said that the project will impact positively on the economic and social conditions of South Africa and the other African countries in which the group is active.

The Safal Group is the leading manufacturer and distributor of steel used for residential roofing in Africa and a major exporter to other continents.

Siemens to supply 140 wind turbines to Britain

Siemens Energy announced that it has received an order for the supply of 140 wind turbines for the world’s largest offshore wind farm Greater Gabbard located 25 kilometers off the coast of Suffolk in Great Britain. The order includes also a 5 year service and warranty agreement.

The purchaser is Greater Gabbard Offshore Winds Ltd, owned by Scottish and Southern Energy plc. The delivery of these turbines is scheduled in 2009 and 2010. The order volume for Siemens Energy is approximately EUR 800 million.

Mr René Umlauft CEO of the Siemens’ Division Renewable Energy said that “Siemens is delighted to have signed this prestigious order with SSE as this marks a major milestone in the offshore business for Siemens as the clear market leader in the offshore wind energy business.”

Global HRB spot prices eruption slows

SteelBenchmarker reported that the US hot rolled band spot price for May 12th 2008 surged by 5.2% to USD 1,154 per ton, FOB the mill for the thirteen consecutive rise totaling USD 577, world export HRB price rise by 2.9% to USD 1,024 per tonne FOB the port of export, for the eleventh consecutive rise totaling USD 443, Chinese HRB ex works price surged by 3.9% to USD 697 per tonne for the third consecutive rise and the Western European HRB surged by 2.1% to USD 1.088 per tonne ex works for the sixth consecutive time totaling USD 375.

USA
USD 1,154 per metric tonne FOB the mill
Up by USD 57 per tonne from USD 1,097 two weeks ago
Up by USD 594 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 524 per tonne from the recent high of USD 630 on April 9th 2007

China
USD 697 per metric tonne, ex works
Up by USD 26 per tonne from USD 671 two weeks ago
Up by USD 227 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 210 per tonne from the previous high of USD 487 on September 10th 2007

Western Europe
USD 1,088 per metric tonne ex works
Up by USD 22 per tonne from USD 1,066 two weeks ago
Up by USD 425 per tonne from the recent low of USD 663 on July 23rd 2007
Up by USD 392 per tonne from the recent high of USD 696 on June 11th 2007

World Export Price
USD 1,024 per metric tonne FOB the port of export
Up by USD 29 per tonne versus USD 995 two weeks ago
Up by USD 474 per tonne from the recent low of USD 550 on July 23, 2007
Up by USD 428 per tonne from the recent high of USD 596 on March 26th 2007

SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.

WCI Steel announces raw material surcharge

WCI Steel, Inc announced that, because of continued significant increases in basic raw material and energy costs, it is revising its original raw material and energy surcharge on fixed price long term supply agreements from about USD 130 per net ton to USD 250 per net ton. The revised surcharge of USD 250 per net ton will become effective with shipments June 1st 2008 through June 28th 2008.

Mr David A Howard vice president commercial of WCI Steel said that “The surge in raw material costs that began late Q4 of 2007 has continued unabated into May 2008. This continued rise in raw material costs makes it necessary for WCI Steel to revise its raw material and energy surcharge to reflect this changing reality.”

As previously announced, the surcharge is based on the rate of escalation in costs since the fourth quarter of 2007. Any additional increases will be calculated on a month to month basis.

US March steel shipments down by 1.9% YoY

The American Iron and Steel Institute reported that for the month of March 2008, US steel mills shipped 9.158 million ton down by 1.9% YoY from the 9.331 million net tons shipped in March 2007 and a 0.2%MoM decrease from the 9.174 million net tons shipped in the previous month, February 2008.

A year to year comparison of year to date shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 4.1%
2. Automotive down by 1.2%
3. Construction and contractors’ products down by 1.2%
4. Oil and gas up by 8.8%

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 and year.

Malaysian domestic tin price breaches USD 25,000 per tonne

Platts reported that the Malaysian domestic tin price has gathered upward momentum over the past two days breaching the USD 25,000 per tonne level on the Kuala Lumpur Tin Market.

As per report the Kuala Lumpur Tin Market price gained USD 300 per tonne to settle at USD 25,100 per tonne a new high for the bourse, erasing the previous record at USD 24,800 per tonne.

A Kuala Lumpur Tin Market source said that buyers were seen eagerly bidding, providing support to the domestic price. He added that the Malaysian tin price was also tracking stronger tin prices on the London Metal Exchange, which firmed up above USD 25,000 per tonne Tuesday.

According to European sources, tin prices on the LME continued to be courted by canny investors, who are now trading in a very dangerous market. Tin was once again making fresh records due to supply concerns emanating from Indonesia and China.

The LME official cash price for tin on Tuesday was USD 25,390 to USD 25,395 per tonne and the three month level at USD 25,250 to USD 25,300 per tonne compared with Monday's USD 24,675 to USD 24,700 per tonne and USD 24,525 to USD 24,540 per tonne respectively.

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.

Iran to construct Anzali Port in Caspian Sea

Mr Kamal Firouzabadi MD of Anzali Port Free Trade Industrial Zone said that Iran is to construct the largest port among Caspian Sea lateral states. He added that "Courtiers try various social, political, and economic methods to reach economic development. One of these ways is enriching free trade zones."

Mr Firouzabadi explained that the construction project of this zone would start around the end of the current Iranian year starting March 20th 2008 to March 20th 2009. He added that "Of our other projects, I can refer to studies for constructing roads and transport routs to this zone. This port is to be constructed through investing approximately USD 435 million."

Among the advantages and opportunities of Anzali Port Free Trade Industrial Zone its proximity to CIS ports such as Astrakhan and Lagan in Russia, Turkmenbasy in Turkmenistan, Oktao in Kazakhstan and Baku in Azerbaijan can be considered. This port also is close to the largest resource of gas and oil in the Caspian sea, has access to lead, zinc, and iron mines, is connected to 5 power stations, is located near to an international airport and is not far away from the capital Tehran. Anzali Port also is the producer of the world’s best caviar.

Anzali Free Trade Industrial Zone is a wide area about 3200 hectares and about 8 kilometers of sea border and up to 2 kilometers into the sea, which includes industrial, trade and commercial, tourism, and service sections.

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.

DP World terminals in India report major growth in 2007

India continues to be one of the fastest growing markets for container traffic for DP World. In 2007, the Indian terminals operated by DP World grew between 18% and 22%, and increasing consolidated volumes to 19%.

Both DP World Chennai and DP World Nhava Sheva reported volumes in excess of 1 million TEUs in 2007. Nhava Sheva achieved the highest throughput by a container terminal in India as crane moves per hour and berth productivity both increased during the year.

DP World’s revenue from operations for the Asia Pacific and Indian subcontinent region for 2007 was USD 461 million as compared with USD 392 million for 2006, an increase of 18% YoY against a volume increase of 19% YoY.

CAPEX in the region was USD 94 million, reflecting investment in the port in Manila following the renewed concession agreement, and at Ho Chi Minh, the terminal under development.

In India, DP World runs 5 container terminals in Chennai, Nhava Sheva, Mundra, Kochi and Visakhapatnam. The new terminal at Vallarpadam, which will replace Kochi, will be the largest terminal in India. This terminal is expected to have a gross capacity of 1 million TEUs during the commencement of operations in 2009 and increase it to 3 million on completion. The Kulpi terminal is expected to start operations in 2009 with an initial capacity of 600,000 TEUs and increase it to 1.4 million TEUs on completion.

Burj Dubai sets new global record in glass panel installation

It is reported that, after setting new global records in practical engineering and architecture, Burj Dubai has recorded another global first with the installation of glass panels at a height of 512 meters.

Mr Ahmad Al Matrooshi MD of Emaar Properties said that "Burj Dubai is setting a new world record in all aspects of high rise construction. With cladding undertaken on Level 141 of the tower, we have pushed the frontiers of engineering high rises one notch higher. Every aspect of the tower now serves as a referral source on the practicalities of developing skyscrapers."

Mr Bashar Kayali GM of Arabian Aluminium Company said that "Cladding work of Burj Dubai is being undertaken on a fast track basis. Installing glass panel at high altitudes is a very challenging task that demands the integration of several work flow systems. With the completion of glass panel installation on Level 141, we are now entering a new realm in executing cladding works."

At 636 meters and more than 160 storeys high, Burj Dubai is now the world’s tallest building and tallest man made structure having recently surpassed the height of the 628.8 meters tall KVLY-TV mast in North Dakota. Burj Dubai is taller than 508 meters tall Taipei 101 in Taiwan and 553.33 meters tall CN Tower in Toronto.

When completed, Burj Dubai will meet all four criteria listed by the Council on Tall Buildings and Urban Habitat, which classifies the world’s tallest structures. CTBUH measures the height of buildings to the structural top, the highest occupied floor, the top of the roof and the tip of the spire, pinnacle, antenna, mast or flag pole.

Burj Dubai anchors Downtown Burj Dubai, an AED 73 billion mixed use mega project, already a bustling community described as the new heart of the city. The tower features residences, commercial space and retail space and hospitality elements including the world’s first Armani Hotel and Armani Residences.

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.

Saudi Arab to grant fuel subsidy to Jazan Power Plant

New Straits Times reported that Saudi Arabia will subsidize the cost of fuel for a power plant that will supply Jazan Economic City. This means that the power plant could offer cheap electricity rates for factories that operate in the new city that is to be built over 25 years.

The deal was signed by the Saudi Arabian General Investment Authority governor Mr Amr Al Dabbagh, Mr Luo Jianchuan president of Chalco and Mr Mohamad Saleh Binladin. MMC will hold half of the power plant for JEC, which will initially generate 2,460 megawatts of electricity. MMC will also have 50% of the port that will serve JEC. Construction of the smelter, power plant and port are due to start in the fourth quarter of 2008.

Launched in 2006, JEC has attracted about USD 18 billion in investments. It will have two aluminum smelters, an alumina refinery, a steel mill and iron ore hub. JEC will also develop an automotive cluster to capitalize on the aluminum smelter and to develop downstream aluminum industries.

An immediate beneficiary is an aluminum smelter to be built by MMC, the Binladin Group and Aluminum Corporation of China Limited.

Mr Feizal Ali CEO of MMC International, the overseas arm of MMC Corporation, said that "The competitive tariffs at JEC will drastically reduce the smelter's production costs and give it an important competitive advantage to serve the growing world market for aluminum in a period of rising energy costs."

Veolia seals SAR 240 million water contract for Riyadh City

Veolia Environnement’s water unit Veolia Water said that it has won a 6 year SAR 240 million contract to produce and supply drinking water and to collect wastewater in Riyadh that will result in total estimated revenues of USD 60 million over the period.

The contract, awarded by the National Water Company in behalf of the Saudi government, involves expanding the drinking water network to serve 4.5 million people, up from 2 million in 2007 and to reduce leaks accounting for 50% loss in the total water pumped in the distribution network.

Mr Abdullah al Hussayen Saudi minister of water & electricity said that the signing of contract, which is the first of kind in Saudi Arabia, is aimed at achieving the continuity of water supply water to Riyadh residents and better services that would partly form the performance indicators for Veolia.

Under the 6 year contract, Veolia will offer its services to the NWC on incentive based system linked to performance and savings achieved. The contract provides for overseeing the development, management, operation and maintenance of water distribution and underground water systems and sanitation. It also includes management and development of customer service and revenue collection, reduce leakages, development, training and rehabilitation of existing staff and upgrading the performance of the sector.

Mr Al Hussayen said that the ministry will also sign contracts with a number of international water companies for similar projects in Jeddah, Makkah, Madina, Dammam and Al Khobar. NWC will sign the contract for Jeddah after two weeks from now. He added that "Similar contracts will also be signed with different international companies for the supply and collection of sewage water for cities such as Makkah, Madina, Dammam and Al Khobar which together comprised of 60% of the total water consumption in Saudi Arabia."

Oman awards major contracts worth USD 1.9 million in 2007

Petroleum Development Oman, in its annual report, said that it has awarded a total of 96 major contracts with a combined value of USD 1.9 billion in 2007. Also, it awarded contracts worth USD 60 million to local community contractors in 2007.

PDO said that there was a sharp increase in capital expenditure, which was reflected across Oman and the region. The supply chain management department, therefore, had to ensure that contracting policies and strategies were adjusted to take into account the current market situation. The department has established a strategy, planning and market intelligent section to support the development of contractor sourcing and selection processes that help to mitigate the current demand and supply constraints.

Meanwhile, the ability of Petroleum Development Oman (PDO) to secure oil and gas production depends critically on the delivery of new wells and the performance of existing ones, the annual report noted. PDO, which contributes almost 80 per cent of the country’s oil production, set an ambitious target of drilling 361 development wells in 2007.

In 2007, several PDO well engineers were sent to Houston for short term assignments at Blade Energy, a key service provider to Shell for under balanced drilling and thermal well design. Under the coaching and mentoring of the Blade experts, PDO well engineers customized well design options for the under-balanced drilling and EOR techniques that will be implemented at certain fields. Another batch of well engineers will undergo similar training in 2008, this time focusing on the maintenance and operational aspects of such wells.

Oman posts 13.1% YoY growth in nominal GDP in 2007

Kuwaiti think tank Global Investment House, in its analysis of Oman’s economic outlook, said that Oman’s economy has registered a 13.1% YoY nominal GDP growth reaching a value of OMR 15.5 billion in 2007.

GIH said that an increasing focus on non oil sectors growth is playing an important role in driving the GDP growth. In 2006, Oman’s nominal GDP grew by 15.6% YoY to reach OMR 13.7 billion. While the oil sector accounted for 45.3% of the GDP in 2007, the non oil sectors also were the engines of growth during the period, contributing about 14.3% of the nominal GDP. The services sector’s share was 39% in 2007. During 2007, the oil and natural gas sector contributed to about 76% of government revenues.

GIH report said that "Omani economy though broadly oil dependant is now trying to diversify into other sectors as well. Oil and gas activities contributed 45.3% of the GDP in 2007 as compared to 48.4% in 2006. The recent surge in average Omani crude oil prices that increased by 5.6% to USD 65 per barrel is a predominant factor supporting the growth. The non oil sector is growing as a predominant contributor in 2007."

Electricity and water supply also registered a growth of 1.1% and is expected to grow further as the projects in power and desalination plants gets on stream. The development plan for 2006-2010 adopts diversification as a pillar in driving the Omani economy forward.

Other non petroleum activities in Oman include agriculture and fisheries which increased by 1.3% YoY in 2007 to reach OMR 204.9 million and contributed 1.3% of total GDP. Overall, the services sector achieved a 21.8% YoY to reach OMR 6.3 billion in 2007 and contributed 40.5% to GDP.

Dolphin put on hold further expansions in Qatar

It is reported that Qatar has stopped further production increases on its massive North Field natural gas source until at least 2011. As per report, a major expansion of the Dolphin gas project will be delayed by several years, but extra gas could flow through the GCC’s first cross border undersea pipeline by this winter.

Mr Ahmed Ali al Sayegh CEO of Dolphin Energy said that currently, Qatar has more gas than it needs to satisfy domestic demand during the coolest months of the year, when air conditioners are idle and less gas is required for power generation.

Dolphin Energy is also freeing up its gas processing and compression facilities at Ras Laffan to ensure that they operated at maximum efficiency. This means that any temporary opportunity to ship more gas from Qatar to the UAE could be seized.

Referring to the 368 kilometer long underwater pipeline built to ship up to 3.2 billion cubic feet a day of gas from the world’s biggest gas field off Qatar’s coast to Dolphin’s import facilities at Taweelah, he said that "That is why this piece of steel is strategic"

The pipeline, completed in 2006, currently delivers only 2 billion cubic feet a day of gas to Taweelah. Phase two of the project would mean an extra 1.2 billion cubic feet a day of gas flowing to Oman and the UAE. The pipeline’s current 2 billion cubic feet a day output to Taweelah is the amount left after the 2.6 billion cubic feet a day Dolphin is stripped of premium priced components.

Dolphin’s existing facilities, completed ahead of schedule, include two gas production platforms off Qatar’s coast, the processing facilities at Ras Laffan, the USD 3.5 billion undersea pipeline and additional onshore pipelines.

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.

UAE's trade surplus to surge to USD 73 billion in 2008

International Monetary Fund said that UAE's current account balance is projected to grow by a record USD 24.2 billion or 58% in 2008 to USD 65.9 billion while the country's balance of trade is poised to surge by 60% to USD 72.5 billion in 2008.

Analysts said that in 2007, UAE's current account balance rose by 16% YoY to USD 41.7 billion from USD 35.9 billion in 2006. The surge in the current account balance is driven by a record jump in exports of goods and services.

According to the latest findings by the IMF, UAE's balance of trade will swell by USD 27.3 billion to USD 72.5 billion in 2008. In 2007, the country recorded a balance of trade of USD 45.2 billion and in 2006 it was USD 38.7 billion. IMF's latest statistics projects UAE's exports of good and services to reach USD 206.5 billion in 2008 from USD 165.7 billion in 2007, while imports to grow from USD 120.5 billion in 2007 to USD 134 billion in 2008.

With a predicted 58% growth this year, the current account balance will account for 27.5 per cent of the country's GDP in 2008. In 2007, current account balance accounted for 21.6% of the GDP. According to IMF projections, UAE's nominal GDP is expected to surge by 24.5% from USD 192.6 billion to USD 239.9 billion in 2008.

UAE external debt constitutes mostly foreign liabilities of UAE commercial banks and private institutions. It is estimated that the UAE foreign liabilities have almost tripled over the past two years. For the period 2008-2012, it is expected that UAE's external debt to average 61 per cent of the GDP. Presently, there are no signs of external debt vulnerability associated with such borrowing given that UAE external position is a net creditor, but it would need to be monitored.

Lucky Cement enters into MoU with Noor Investment

Daily Times reported that Lucky Cement Limited has entered into a MoU with Noor Financial Investment Company for supply of 500,000 tonnes clinker per annum for a period of 5 years with additional option of 150,000 tonnes each year.

This MoU will allow the Lucky Cement to increase its growing exports to the Middle East under a guaranteed off-take arrangement, which will further strengthen its dominant position of exports from the country. The Lucky is the only cement exporter in Pakistan with infrastructure facilities at Karachi port for the storage, handling and loading of loose cement.

According to a notice sent to the Karachi Stock Exchange, Middle East is at present undergoing a construction boom and countries like UAE, Kuwait, Iraq and Qatar are severely facing shortfall of cement. Pakistan with its growing cement industry has an excellent opportunity for export of cement/clinker to these countries due to its close proximity to the region. The Lucky Cement is ideally placed due to location of its southern plant close to Karachi Port from where most of the exports take place.

The Noor Financial Investment Company is a Kuwaiti investment company and the financial arm of the National Industries Group, which is one of the largest and best performing industrial conglomerates in Middle East and one of its subsidiaries the National Industries Company specializes in manufacturing and marketing building materials and infrastructure products. NIC has the largest industrial complex for construction materials in the Middle East with the largest market share of building materials in Kuwait.

Delta Steel Mills issued a request for registration of suppliers

Al Akhbar reported that Delta Steel Mills has issued a request for registration of suppliers of steel scrap & of contractors to transport steel scrap from Upper Egypt & Lower Egypt to the company location in Mostorod before May 15th 2008.

Delta Steel Mills said that interested parties may contact below address for further details

Delta Steel Mills Company
The Cashier
6th October St, Ex Ismailiya Canal St, Mostorod
Tel: 2200504/2217627/8

Tuwairqi Steel to be ready by early 2009

Mr Abdul Rauf Siddiqui Sindh minister of industries & commerce laid the foundation stone of induction furnace project of the upcoming first private sector steel project Tuwairqi Steel Mills near Port Qasim.

The furnace is the intermediary phase of the 1.28 million tonnes per annum capacity art of state Tuwairqi Steel based on Midrex process.

The project is expected to be completed by the first quarter of 2009 when the direct reduction plant will also be approaching its completion. The direct reduced iron plant will be completed at a total cost of USD 265 million. The induction furnace includes the installation of a 60 MW capacity power plant, while another power plant of 25 MW will be installed for DRI.

Mr Tariq Barlas VC & CEO of Al Tuwairqi Group of Companies said that his company was keen to promote steel making industry in Pakistan because of its great potential and immense prospects in future.

Mr Zaigham Adil Rizvi director projects spoke on fast rising steel prices around the world because of the mounting demand. He added that with increasing local production, Pakistan would be able to save considerable foreign exchange now being spent on import.

PSM raises prices of its products

Daily Times reported that Pakistan Steel Mills has formulated price adjustment policy of its products and announced a price raise with immediate effects.

According to the official handout released Wednesday, the prices would be reviewed after every 15 days of a month as per directives of federal minister for production and industries.

PSM has continued its price spiral activity and announced another increase in various products by PKR 1,000 to PKR 3,000 per tonne. It increased the ex prices of galvanized rolled coil increased by PKR 1,000 on its different sizes to stand at the maximum level of PKR 76,000 per tonne and the prices of the hot rolled coil have escalated by PKR 2,000 and PKR 3, 000 to reach at PKR 64,500 per tonne, the prices of cold rolled products have surged by PKR 1,000 to PKR 3,000 to reach at PKR 66,800 per tonne. Besides, prices of steel billets have surged by PKR 1,000 to reach its maximum level of PKR 55,950 per tonne.

These all above mentioned prices exclude sales tax. Dealers charge 18.5% sales tax with the ex mill prices along with their margin.

PS statement said that prices of the main products have not been changed despite the continued surge in international market. Now the cost of production has also gone up by PK