Steel prices in Punjab witness sharp dip

PTI reported that the spot rates of steel in Punjab drop sharply by INR 1,000 to INR 1,200 per tonne, a day after the government announced a slew of measures to rein in rising steel prices.

As per report, spot prices of ingot today opened at INR 33,000 per tonne as compared to INR 34,200 per tonne the previous day, a decline of INR 1,200. Similarly, the rates of rebars have reduced by INR 1,000 to INR 1,200 per tonne.

Steel analysts expect further decline in steel prices ranging between INR 500 and INR 700 per tonne within next couple of days. The report cited Mr R Sood a Mandi Gobindgarh based steel trader as saying that "Because of the steps taken by the government such as imposing 15% export duty on steel products, the prices are likely to further dip by INR 500 to INR 700 per tonne and thereafter the rates will stabilize."

CR makers wanted 20% export duty on HR coils

ET reported that cold rolled steel producers are not impressed with the finance minister's announcement of levying of about 15% export duty on hot rolled coils saying it should have been at least 20% to dissuade steel makers from shipping these coils.

Mr SC Mathur president of Cold Rolled Steel Manufacturers Association said that "Export Duty on HR coils should have been 20% as global prices are still as high as almost USD 1,000 a tonne. If they impose a 15% duty it comes to USD 850. There are quite good chances they will still export to earn."

Mr Mathur pointed out that in China, South Korea and Thailand the price of HR coils is around USD 750 a tonne. If the domestic price is around USD 850 then the CR steel making industry would not be competitive. He opposed levying of export duty on galvanized and color coated sheets where there is excess capacity of about 3 million tonnes.

He said that "If you levy export duty on them, exports would become less competitive and some mills have to close down as domestic market cannot absorb all production there will be retrenchment of workers which can trigger industrial unrest." He reasoned that galvanized and color coated is high value items and should be treated at par with engineering items where there is no export duty.

Mr RS Sharma appointed as new CMD of NTPC

Mr RS Sharma has been appointed CMD of National Thermal Power Corporation Limited with effect from May 1st 2008.

Having over 37 years of rich experience in power sector, Mr Sharma took over as director commercial of NTPC in October 2004 and has been guiding activities of business development group as well. He has been instrumental in the preparation of guidelines for setting up power exchange in India. He was earlier executive director commercial and also looked after the work of corporate planning as executive director corporate planning and formulated long term corporate plan for NTPC.

Mr Sharma started his career in Madhya Pradesh state electricity board. He joined NTPC in early February 1980 at the Korba super thermal power station of 2100 MW capacity. Subsequently, he joined Vindhyachal super thermal power station of 2260 MW capacity as head of O&M and became project head of Rihand super thermal power station of 1000 MW and Sipat super thermal power station. He also led southern region of NTPC having 3 power stations namely Ramagundam super thermal power station with 2600 MW capacity, Simhadri super thermal power station with 1000 MW capacity and Kayamkulam combined cycle power project with 350 MW capacity as executive director.

Mr Sharma brings with him multi functional experience in the areas of operation, project implementation, planning, commercial and regulatory affairs due to his long association with the power sector. He has authored a number of technical papers on various subjects of power plant operation & maintenance.

Indian rebar makers see suppressed prices on import pressures

PTI reported that India’ secondary steel producers have castigated the government for removing countervailing duty on TMT bars and structural steel by claiming that it would hit the local industry hard.

Mr Vinod Vashisht president of All India Steel Re Rollers Association said that "Imposition of countervailing duty on TMT bars was the only protection for the domestic industry like ours and now with the abolition of the same, industry will have to face the cheaper products from overseas markets which will further put pressure on rates.”

He said that “Rather the government should have withdrawn countervailing duty on scrap which is our key raw material and impose export duty in iron ore. These steps must have improved the supply of steel in the domestic market."

Anti displacement activist killed in Kalinga Nagar

Kalinga Times reported that tension prevailed in Kalinga Nagar industrial complex in Orissa's Jajpur district after a strong supporter of Visthapan Virodhi Janmanch was killed when four miscreants fired at him on Thursday.

Police said the incident happened when he was gossiping with a group of people near the entrance gate of Rohit Ferotech. As per report, the miscreants along with two security guards reached the spot and advised him not to oppose land acquisition for the TATA Steel project in Kalinga Nagar. It led to a scuffle between the two groups following which the miscreants fired three rounds at him and he died on the spot.

When the news spread about the incident spread in the locality hundreds of tribals rushed to the firing spot and prevented police from sending the body for post mortem. They later staged a road blockade keeping the body of Banra at Ambagadia where the year long road blockade was on following the January 2006 police firing where 14 tribals including three women were killed by police firing while opposing construction of a boundary wall of the proposed six million tonne steel project of TATA Steel in the area.

Shyam Group plans capacity expansion in North East

Shyam Group of Industries has announced a proposed investment of more than INR 500 crore for the Siliguri region.

Announcing the plans, Mr B Bhushan vice CMD of Shyam Group said that the main focus would be on core and infrastructure projects.

Mr Bhushan said, that "We have recently commissioned a biomass based power plant at one of our factories at Barddhaman and besides hydel, we are also looking at generating power through the solar energy route."

He said that Shyam Group recently signed a MOU with the Chhattisgarh government to build a 600 MW independent power project. He added that "This would be a Greenfield project and we are in the process of finalizing the land which we have more or less identified in the Janghir district of the state."

Shyam Group received permission from the West Bengal Renewable Energy Development Agency to commission the hydel power plants. The 6 MW plant would be commissioned by Shyam Energy Limited.

Another 1000 MW plant was coming up at Jamuria, as part of its integrated steel and power plant. It has identified Siliguri as the location for setting up a cement plant as a JV project with the Century Group. At present, the group manufactured 1 million tonne of cement and aimed to make 4 million tonnes by 2012.

CCI offers leniency for breaking ranks to unearth steel cartel

PTI reported that Competition Commission of India has offered leniency in penalty to a steel maker who breaks the rank of alleged cartelization in the industry and provides key information.

Mr Vinod Dhall chairman of CCI said that "There is a leniency provision in case the member of the cartel breaks the rank and makes full true and vital disclosure which results in breaking the cartel, the CCI has been empowered to levy lesser penalty."

To CCI's appeal that steel manufacturers should follow self compliance and a code for compliance, the steel makers said that they would prepare a code of conduct. They also emphasized that there is no cartelization in the industry.

Export duty may hit steel firms in long run – Steelmakers

ET reported that union finance minister Mr P Chidambaram’s imposition of export duty on steel has evoked mixed reactions. While the user industries feel the proposed export levy will pull down the prices of the metal in the domestic market and steel makers think the measure will be counterproductive and will affect the industry in the long run.

Executives of leading steel companies said that they have to honor the long term export commitments with their overseas customers and, therefore, would not be able to reduce supply in the international markets.

The report cited an executive of a top steel company as saying that "It will only squeeze better realization of domestic steel companies, which have been hard hit by the rise in raw material costs in international markets. In addition, there are certain items, especially in flat products, which have few takers within India."

Mr J Mehra CEO of Essar Steel Holding said that unless the government takes some long term measures such as facilitating additional capacities, steps like the one taken on Tuesday could be counter productive.

Indian parliament passes Finance Bill

It is reported that Indian Parliament on Wednesday passed the Finance Bill 2008, with the Rajya Sabha returning the Bill.

With this, the budgetary process for 2008-09 has been completed.

The Finance Bill 2008 was passed by the Lok Sabha on Tuesday.

PGCIL gets Navratna status

The government of India has conferred Navratna status on the Power Grid Corporation of India Limited. PGCIL now becomes the third Navratna unit under the ministry of power.

A government release said that “The conferment of Navratna status is in line with the Government’s policy to allow select Central Public Sector Enterprises becoming significant players in the economic development of the country as global giants. It is also in consonance with the National Common Minimum Program whereby Government is committed to have a strong and effective public sector.”

It added that “With the grant of this status, Power Grid Corporation of India Ltd. will now have full managerial and commercial autonomy so as to effectively operate in a competitive environment. The Power Grid Corporation of India Ltd. is the Central Transmission Utility of the country and has the responsibility for undertaking transmission of power through inter State transmission systems.”

The ministry of power now has three Navratna units NTPC, PFC and PGCIL.

JSPL to relocate power plant to Dumka from Asanboni

Ranchi Express reported that, even as mega steel projects of ArcelorMittal and TATA Steel are still to get off the ground in Jharkhand, Jindal Steel & Power Limited appeared well on its course to expand its base in the state of Jharkhand.

In a strategic shift, JSPL has now decided to relocate its 1,000 MW power plant to Dumka from Asanboni near Jamshedpur in the wake of allocation of coal block in Dumka.

Indian Railways production units perform well in 2007-08

It is reported that Indian Railway’s manufacturing units, except Rail Coach Factory and Rail Wheel Factory, have exceeded their respective targets during 2007-08 fiscal.

Name Item Target Actual %F

The production update for the month of March 2008 is as under

L&T Infotech ties up with Rockwell Automation

IANS reported that US based industrial automation manufacturer Rockwell Automation has partnered with L&T Infotech to develop FactoryTalk, an information solution provider program.

As a partner in the program, L&T Infotech will join Rockwell Automation in helping global manufacturers build successful, plant wide information applications and manufacturing execution systems using the FactoryTalk integrated production and performance software suite.

Mr Kevin Roach VP of Rockwell Automation said that "Having L&T as part of our partner network will help our customers use plant floor data to improve collaboration and manufacturing performance."

Mr Sunil Pande senior VP of L&T Infotech said that "By using the FactoryTalk suite of customizable applications, we hope to provide our clients higher value by leveraging greater expertise in enterprise resource planning and enterprise systems integration."

The information solution provider program was established by Rockwell Automation in October 2006 to provide manufacturers with a network of information systems.

Alstom to expand Indian operations

ET reported that French engineering major Alstom is planning to spruce up its domestic equipment manufacturing activity by starting production of high value turbine generator sets for thermal and nuclear power plants. As per report, Alstom’s Indian subsidiary Alstom Projects India Limited is likely to forge an alliance with NTPC BHEL Power projects, which would provide a ready platform to Alstom to enter manufacture of TG sets.

The report cited a source at power ministry as saying that "A high level delegation of Alstom recently met officials of the power ministry, indicating their interest in manufacturing country. The power ministry has proposed them to partner in NTPC BHEL JV. This has been agreed by the company that may come up with a formal proposal by September 2008."

Alstom Projects India has a thermal boiler manufacturing facility in Durgapur in West Bengal and hydro equipment manufacturing facility at Vadodara. It has been looking at tie ups with BHEL for TG manufacturing. However, this may not go through as BHEL already has relationship with Seimens for TG sets.

BHEL to double expenditure on R&D in 3 years

BS reported that Bharat Heavy Electricals Limited will increase its research & development spend to about INR 900 crore over the next 3 years from INR 464 crore during 2007-08.

According to Mr AL Chandraker group GM (R&D division) of BHEL, this increase is needed as the products and systems to be developed in the coming years would be technology intensive.

Mr Chandraker said that "We are now working on new areas like nanotechnology and ceramic filters." He added that it commissioned a gas fired spray pyrolysis system to synthesize nano materials at its Ceramic Technology Institute at Bangalore. The R&D wing has developed a compact 65 kilowatt permanent magnet generator to supply excitation power to 500 MW and 800 MW turbo generators.

BHEL spent INR 464.4 crore on R&D in 2007-08, up by 94.3% YoY as against INR 239 crore in 2006-07. This is the highest so far and is over 2% of its total turnover of INR 21,680 crore. The R&D wing achieved a turnover of INR 2,936 crore during the financial year 2007-08 through company wide commercialization of products and systems.

During the 2007-08 fiscal, BHEL filed 175 patents to take the total number of patents and copyrights to 664, besides setting up the Centre for Intelligent Machines & Robotics at Hyderabad.

NHPC net profit in 2007-08 up by 8% YoY

National Hydroelectric Power Corporation has posted an 8.32% YoY increase in net profit to INR 1,002 crore in the financial year ended March 2008 as against INR 925 crore in 2007, while turnover during the year was up by 17.7% YoY to INR 2,311 crore as against INR 1,963 crore.

Mr SK Garg CMD of NHPC said that "Better business management and financial policies have resulted in our net profit touching a four digit mark."

NHPC has commissioned 3 projects of 1,420 MW in the last twelve months. They are
1) 520 MW Omkareshwar in Madhya Pradesh
2) 390 MW Dul Hasti in J&K
3) 510 MW Teesta Stage V in Sikkim

NHPC has an installed capacity of 5,000 MW and plans to take this to 10,000 MW by the end of 11th plan. It has changed its name to NHPC Limited.

Sikkim CM lays stone for Rungeet stage IV hydro project

BS reported that Mr Pawan Chamling chief minister of Sikkim has recently laid the foundation stone of the 120 MW Rungeet stage IV hydro electric power project comprising three 40 MW Units at Reshi in West Sikkim. The project, a run of the river scheme, is scheduled to be completed in about 52 months.

As part of a national drive for the development of the country’s hydro potential, the Sikkim government awarded Rungeet Stage IV hydro electric project to Jal Power Corporation Limited on November 1st 2004.

Mr Chamling said that "This project will provide locals facilities of contractual work, among other things and Sikkim would become the richest state in India within 2015."

Rungeet Stage IV was identified as a part of a master plan evolved in 1974 for the development of hydro power potential of the Teesta and Rungeet rivers of Sikkim. Detailed field investigations were taken up on the project by the Central Water Commission in 2003, a detailed project report being brought out in August, 2006. The project was accorded techno economic clearance by the Central Electricity Authority on June 14th 2007 and environment clearance by the union ministry of environment & forests on May 16th 2007.

HZL completed zinc debottlenecking projects

Hindustan Zinc Limited recently announced that it has successfully completed its 88,000 tonnes per annum zinc debottlenecking project at the Chanderiya and Debari smelters two months ahead of schedule. The total metal production capacity is now 754,000 tonnes per annum. HZL has already enhanced its ore production capacity to 7.1 million tonnes per annum.

The successful completion of the debottlenecking projects, together with the recently announced brow field smelter projects, will increase total production capacities of zinc and lead to 1.06 million tonnes per annum, with fully integrated mining and captive power generation.

The construction of the 80 MW captive power plant at Zawar is also progressing on schedule and is likely to be commissioned by mid 2008.

Hindalco Industries results for 2007-08

Hindalco Industries Limited has announced the following results for the quarter & year ended March 31st 2008

The unaudited results for the January to March 2008 quarter

Hindalco Industries has posted a net profit of INR 10770 million for January to March 2008 quarter up by 49.3% YoY as against INR 7213 million in January to March 2007 quarter. Total income is INR 51544 million up by 5.7% YoY as against INR 48722 million.

The unaudited results for the year ended March 31st 2008

Hindalco Industries has posted a net profit of INR 28609 million for the year ended March 31st 2008 up by 11.5% YoY as against INR 25643 million for the year ended March 31st 2007. Total income is INR 196939 million up by 5.4% YoY as against INR 186831 million.

The figures for the year ended March 31, 2007 are audited.

Upon receipt of all requisite approvals, Hindalco Industries’ subsidiary Indian Aluminum Company Limited has been amalgamated with the company with effect from April 1st 2007. Accordingly, the figures of current quarter and year ended March 31st 2008 are not comparable with those of the corresponding previous periods.

Coastal Energen launches power plant in Tamil Nadu

Projects Today reported that Coastal Energen Private has launched its phase I of 1,000 MW power plant in Tuticorin district of Tamil Nadu.

The project to be implemented in three units of 360 MW each will entail an investment of INR 4,200 crore. The 1,000 acres of land required for the project has been fully acquired and has been approved by ministry of environment & forest. This plant will generate about 1100 MW of power and will supply power to the state as well as private consumers.

Usiminas Q1 net income up by 7% YoY

Brazilian leader in the flat steel sector Usiminas had net revenues of BRR 3.6 billion (USD 2.1 billion) in the first quarter of 2008 up by 7% YoY. Usiminas explained that the performance is the result of higher steel prices, a larger variety of products offered and greater sales on the Brazilian market.

Usiminas’s Sales on the domestic market reached 1.5 million tonnes, up by 11% YoY over the first quarter in 2007. The auto parts, industrial equipment, civil construction and distribution sectors were mainly responsible for the growth. On the domestic market, sales totaled 354,000 tonnes, 36% lower than the result from January to March 2007. The reduction, according to the company is due to the Usiminas plan of focusing on local clients.

The main companies in the Usiminas System are Usiminas itself and its parent company Cosipa. The complex had net profit of BRR 646 million (USD 379 million) in the first quarter of 2008 up by 1% YoY over the same months last year. It is worth recalling, however, that in the first quarter of 2007, the company posted its second best result in history. The company EBITDA reached BRR 1.3 billion (USD 762 million), 6% greater.

Usiminas System answered to 23% of total Brazilian crude steel production in the first quarter, which was 8.7 million tonnes. National production grew 8%. Usiminas crude steel production was 2 million tonnes. There was a 6% reduction over the same period last year. The decline took place due to the reduction of production at Cubatão Mill, due to stops for upgrading and modernizing of machinery. The measures should result in greater production.

Rising steel prices will hit industry – Mr Donlo

According to Mr Jim Donlo CFO of ArvinMeritor Inc suppliers and auto makers will be hit by rising commodity prices as steel producers begin slapping surcharges on orders. Mr Donlon during a conference call with analysts said that "These surcharges are troubling.”

He said that the specter of rising steel prices comes at one of the worst times for the US auto industry. Ford Motor Co, General Motors Corp and Chrysler LLC continue losing money in North America amid the slumping economy. As they look to cut costs, suppliers will attempt to pass on the higher steel prices to the auto makers.

Mr Donlon said that rising commodity prices mixed with slumping sales contributed to the bankruptcy of auto parts suppliers Collins & Aikman Corp, Dana Corp, Dura Automotive Inc and Tower Automotive Inc in 2005 and 2006. He added that "These extraordinary costs will need to be passed through the food chain. He acknowledged that it will be difficult to get some customers to accept the increases.”

Record tin prices are expected to cut demand

Purchasing.com reported that tin is selling at record highs of around USD 11.16 per short ton and some analysts believe that such price elevation will curb demand by the packaging and electronic industries and discourage the use of the silvery metal in new areas. Tin costs 45% more now than at the start of the year.

Mr Peter Kettle at tin consultancy ITRI in London told Reuters News Service that markets are worried about supplies from top producers China and Indonesia. Solders, which join components in the assembly of electronic products, account for about half of global consumption, estimated around 330,000 net tons last year. Aluminum and plastics could be used instead of tin in packaging. The only area when tin can’t be substituted is in the plating of steel sheet, which is about 20% of use.

According to ITRI newsletter, following the major weather related disruptions suffered in January and February, there was a partial revival in Chinese refined tin production in March. Statistics from the China Nonferrous Metals Association show that production rose to 10,353 net tons in March, having fallen to around 9,000 tons in both January and February. Still, first quarter production was off 13% on year-ago levels. There were particularly large declines in the provinces most affected by severe winter weather, with quarterly output in Hunan reported down by 28% and in Guangxi by 34%. However production in the most important tin province Yunnan was only down 8%.

US steel industry supports the American Steel First Act

It is reported that the Buy America Coalition consisting of the American Iron and Steel Institute Committee on Pipe and Tube Imports, National Steel Bridge Alliance and Steel Manufacturers Association have expressed its support of new legislation introduced by Reps Pete Visclosky and Phil English.

The legislation, entitled “The American Steel First Act,” which the Buy America Coalition was instrumental in helping to develop, would require federally funded construction projects under the Department of Transportation, the Department of Defense and the Department of Homeland Security to use 100% American made steel products.

This expands the successful Buy America Act requirements currently applying to Federal Transportation Administration projects to also include other projects initiated by the DOT, DOD and DHS. An important part of “The American Steel First Act” is that it requires a public comment period for all projects that seek an exemption to these requirements. This important provision would allow the domestic steel industry to verify there is no domestic steel available for the project.

By requiring the use of American made steel products in these federal construction projects, along with other important federally supported projects, this legislation will help to ensure that our national infrastructure is made with quality domestic steel products. Furthermore, the use of these steel products will create greater economic prosperity for American steelworkers and steel communities across the nation.

The Buy America Coalition is a partnership between AISI, CPTI, NSBA, and SMA. The Coalition was formed in 2006 to represent all of the domestic steel industry in order to work with Congress and the Administration to improve compliance with Buy America laws, and to improve those laws.

European HRC prices continue to rise

European HR coil price continues to increase in third quarter. The main reason for the increase is that raw material cost, energy cost and freight cost have been soaring recently. As a result, there is great pressure on local steel manufacturers; therefore market analysts predict that carbon HR coil price is going rise over EUR 700 per tonne in the third quarter.

Besides, China’s export price for carbon HR coil is at USD 940 to USD 950 per tonnes FOB; consequently, importing cheaper resources from China in the near future will offer European local purchasers a better price.

(Sourced from YIEH.com)

Northwest to supply pipes for Prairie Waters Project

Northwest Pipe Company announced that it has received a verbal commitment from Reynolds-Tierdale of Denver in Colorado to supply pipe for the Prairie Waters Project for the City of Aurora in Colorado.

The Company will supply approximately 68,000 feet of 60" steel pipe valued at approximately USD 22 million for an engineered and custom fabricated piping system. The pipe is expected to be manufactured in the Company's Denver, Colorado division with delivery scheduled to begin in the third quarter of 2008.

The Prairie Waters Project is designed to provide a reliable supply of high quality water to the City of Aurora by drawing water from the South Platte River through collector wells. It will be delivered to nearby natural purification basins where its movement through sand and gravel will take it through a natural cleansing process. The water will then be piped 38 miles south to the Aurora Reservoir where it will be treated at a new water purification facility. It is anticipated to deliver up to 10,000 acre feet of water by 2010 and up to 15,000 acre feet by 2012. The Prairie Waters Project is projected to provide enough additional water to meet the city's demands into the 2020s.

CAP Q1 profit falls by 40.5% YoY

Chile's biggest steel and iron ore producer, CAP said that its net profit fell by 40.5% YoY in the first quarter due to extraordinary gains during the same period last year.

CAP said its profit for the period was USD 61.3 million as compared to USD 103.1 million during the first quarter of 2007. Revenue rose by 35% during the period to USD 489.2 million, while operating profit rose 40.7% to USD 69.9 million.

Non operating profit during the quarter fell to USD 7.86 million from USD 73.32 million the previous period, when it sold a copper mine stake for a net gain of USD 55.18 million. Its average sale prices of ore rose 40% during the period to USD 49 a tonne, even as shipments fell 21% by volume.

CAP in a statement said that "During the quarter in question, world economic activity has pushed up the prices of raw materials globally. The increase of prices of our iron ore and pellets is simply a result of that. That in turn has implied increased production costs and consequently an increase in sales prices, giving way to improved consolidated results for the CAP group."

Esmark finally reports 2007 results

Esmark Incorporated has reported its financial results for the fourth quarter and year ended December 31st 2007, which consist of the results of Esmark Steel Service Group Inc and the results of Wheeling Pittsburgh Corporation subsequent to the merger on November 27th 2007.

Esmark for 2007 it reported a net loss of USD 9 million compares to net income of USD 3.5 million for 2006. For the fourth quarter of 2007, the Company reported a net loss of USD 12.3 million compares with a net loss of USD 5.6 million in the fourth quarter of 2006. Net sales for 2007 totaled USD 825.6 million as compared to net sales of USD 578.0 million for 2006.

Steel shipments for 2007 totaled 1,145,000 tons or USD 721 per ton. Steel shipments for 2006 totaled 734,000 tons or USD 788 per ton. The increase in net sales can be attributed to an increase in the volume of steel products sold, partially offset by a decrease in the average selling price of steel products of USD 67 per ton. The lower average selling price reflected the lower priced mix largely due to the effect of including the post-merger sales of Wheeling Pittsburgh. Tons sold include toll processed tons.

Cost of sales for 2007 totaled USD 750.6 million or USD 655 per ton, as compared to cost of sales of USD 508.7 million for 2006 or USD 693 per ton. The increase in the cost of steel products sold of USD 241.9 million was due primarily to the increased shipments, while the USD 38 per ton decrease resulted primarily from lower substrate cost and the lower priced mix described above.

Net sales for the fourth quarter of 2007 totaled USD 313.4 million, as compared to net sales of USD 150.2 million for the fourth quarter of 2006. Steel shipments for the fourth quarter of 2007 totaled 454,000 tons or USD 690 per ton. Steel shipments for the fourth quarter of 2006 totaled 188,000 tons or USD 801 per ton. Revenue increased primarily due to inclusion of post-merger Wheeling Pittsburgh, while average revenue per ton decreased due to the lower priced mix.

Cost of sales for the fourth quarter of 2007 totaled USD 286.7 million or USD 631 per ton as compared to cost of sales of USD 137.2 million, or USD 730 per ton, for the fourth quarter of 2006. Again, the decrease reflects the inclusion of Wheeling Pittsburgh and the lower priced mix.

Mr James P Bouchard chairman & CEO of Esmark Incorporated said that "While a net loss is being reported today, it includes the non cash write off of USD 9.7 million of goodwill at ESSG in the fourth quarter.” He added that "I am pleased to report that EBITDA, adjusted for this non cash charge, was a positive USD 25.3 million for the year and USD 7.9 million in the fourth quarter, which was the combined companies' first reporting period. In addition, as I indicated in our release in early March, both ESSG and Wheeling Pittsburgh have positive Adjusted EBITDA."

Siemens shows strong order growth in Q2 of fiscal 2008

Siemens has again demonstrated its growth potential with the presentation of its second quarter figures for fiscal 2008. Orders rose 12%, from EUR 20.850 billion to EUR 23.371 billion. On an organic basis, excluding the net effect of portfolio transactions and currency translation, orders climbed 15% YoY with good regional distribution.

Siemens’s revenue for the quarter rose by 1%, from EUR 18.001 billion to EUR 18.094 billion and 2% on an organic basis. The review of projects in Operations led to charges at Power Generation, Transportation Systems, and Siemens IT Solutions and Services totaling EUR 857 million. As a result, Group profit from Operations was EUR 1.203 billion in the second quarter, compared to EUR 1.781 billion in the prior year period. Net income was EUR 412 million for the quarter compared to EUR 1.259 billion in the second quarter a year ago.

Mr Peter Löscher CEO of Siemens said that “Our order growth in the first half has been excellent on a global basis, and our Industry and Healthcare Sectors combined strong growth with higher earnings. Furthermore, our energy portfolio performed well in most areas, with very strong overall order growth. We have now concluded our project reviews in the fossil power business and, in total we have a clear picture of the relevant risks. We also demonstrated our commitment to increasing transparency and accountability at Siemens. We expect organic revenue to grow at twice the rate of GDP growth in fiscal 2008 and that our full-year Group profit from Operations and income from continuing operations will match the levels we achieved in fiscal 2007.”

Japanese scrap prices continues to climb

It is reported that Japan has settled H2 scrap export price at JPY 63,000 per tonne with South Korean Hyundai Steel.

Tokyo Steel has continuously raised scrap purchase prices. Although Japan’s steel scrap price is at highs, Hyundai Steel cannot help but buy them due to tight supply.

At present, Hyundai Steel had already completed May scrap purchasing from Japan and they plan to acquire scrap availability from US in June.

(Sourced from YIEH.com)

One worker died at ArcelorMittal Burns Harbor plant

Dow Jones reported that a maintenance employee was fatally injured at Wednesday while working in a storage area at ArcelorMittal's Burns Harbor steel plant in the state of Indiana.

A company spokesman said that the employee was injured in at 10:30AM local time but he didn’t disclosed details of the accident.

ArcelorMittal and the United Steelworkers Local 6787 labor union have launched a joint investigation into the fatality.

Siemens to modernize Nikkei Siam Aluminum

Siemens Metals Technologies announced that it has been awarded an order by Thailand’s Nikkei Siam Aluminium Ltd to modernize the company's aluminum rolling mill by supplying new mechanical equipment, as well as process and drive systems. This is intended to both increase productivity and further improve product quality to cope with the growing demand of automotive related industries. The new equipment will more than double both the rolling speed and the coil weight. This project has a total value of some EUR 5.5 million and is scheduled to be completed by the beginning of 2009.

The new drive components will increase the rolling speed of the mill at Nikkei Siam Aluminum from 300 to 683 meters per minute. The coil holder mechanisms will also be modified. This will enable the plant to process coils weighing eight metric tons in future, instead of the previous maximum weight of 3.5 tonnes. This will, in turn, reduce the number of times the coil has to be changed and also allows faster roll change times increase the rolling mill's availability and production.

The scope of delivery also includes the following technological control systems to optimize the processes: An automatic gauge control system, an automatic flatness control system, and Siroll shapemeter rolls with integrated solenoid valve spray bars to ensure greater flatness and better surface quality.

This new equipment will be installed during a planned plant outage starting in October 2008, and it is scheduled to come into operation in November 2008. Siemens is also responsible for supervision of the installation and customer training. This project is being run from Siemens Christchurch location in Great Britain.

Nikkei Siam Aluminum is a wholly owned subsidiary company of Nippon Light Metal, Tokyo and it is the leading aluminum producer in Thailand. The company employs some 280 people at its Pathumtani location near Bangkok. The plant has an annual production capacity of 20,000 metric tons of aluminum sheet and 7,000 tonnes of aluminum foil.

Bollinger Shipyards receives SCA safety award

It is reported that Bollinger Shipyards was this month presented the Award for Excellence in Safety by the Shipyard Council of America at a general membership meeting in Washington D.C.

The award is given to SCA member companies who have an end of year total recordable incident rate below the total SCA rate. In 2007, SCA set the rate to a new low of 5.68. Bollinger's 2007 rate was 3.20.

The award was presented to Mr Donald Bollinger chairman and CEO of Bollinger Shipyards, who accepted on behalf of workers at Bollinger. SCA Manager of Government Affairs Ian Bennit congratulated Bollinger on its commitment to safety.

Technip Subsea bags two subsea pipeline contracts

Technip Subsea 7 Asia Pacific a joint venture between subsea construction contractors Technip and Subsea 7 has been awarded two contracts for subsea installation and pipeline supply projects in New Zealand and Vietnam.

The first contract was awarded by Shell Todd Oil Services, a company jointly owned by Shell Petroleum Mining and Todd Petroleum Mining, to provide diving support services for the Maui maintenance project offshore New Zealand, in water depths of up to 110 meters. The contract was completed using the Technip Subsea vessel Rockwater 2.

The second contract was awarded by MISC Berhad for the Ruby floating production storage and offloading project, located in 50 meters of water offshore Vietnam. The contract includes the supply of 880 meters of 10 inch flexible risers, 440 meters of six inch flexible risers, 1,900 meters of 10 inch flexible flowlines and associate buoyancy. Delivery is expected in the fourth quarter of 2008.

Clarkson changes CEO

Clarkson Plc said its chief executive Mr Richard Fulford Smith would step down and that he will be replaced by Mr Andi Case MD of global broking and COO in the interim. Clarkson added that Fulford Smith's future role within the group was still under discussion.

Mr Tim Harris chairman of Clarkson said that Mr Fulford Smith had done a tremendous job for the group but declined to enlarge on the reasons for the board’s decision to ask him step down as chief executive.

However, Mr Fulford Smith’s resignation comes against a background of reported personality clashes with the chairman and lawsuits from Russian shipping companies totaling almost USD 140 million.

ArcelorMittal Galati increase scrap buying price

Market sources have informed that ArcelorMittal Galati has increased its scrap purchase price by USD 25 per tonne from USD 550 per tonne FOT to USD 575 per tonne FOT basis.

As a consequence, all Romanian scrap suppliers have basically stopped offering and are waiting for next week.

Scrap prices continue their clime

Market sources have informed that Turkish scrap buyers, which were happy to pay USD 640 per tonne CFR FO are expecting the prices to go up by USD 30 to USD 40 per tonne next week

AS per reports, Spanish mills are paying EUR 450 per tonne for scrap of good origin and are looking for price levels of EUR 405 per tonne for scrap from other sources like Romania.

Whereas, Italians mills are buying at prices slightly lower than Spain, between EUR 390 per tonne to EUR 430 per tonne depending on origin and quantity.

Aztec galvanizing segment gets Most Distinguished Project award

AZZ Incorporated, a manufacturer of electrical products and a provider of galvanizing services, announced that the American Galvanizers Association, the galvanizing industry trade association, has awarded the galvanizing segment of AZZ incorporated with three "Excellence in Hot Dip Galvanizing Awards."

AZZ's Witt Galvanizing located in Muncie and Plymouth, Indiana was honored with the "Most Distinguished Project" award for their work on Indianapolis Motor Speedway Northwest Vista Renovation. The speedway chose hot dip galvanizing for corrosion protection because of the cost effectiveness and durability of the zinc coating. The original structure was painted but as routine maintenance became necessary the owners sought a better corrosion protection system that would fit into a narrow window of time allowed to complete the 500 ton project. The qualities of galvanized steel made it the perfect choice for corrosion protection. AZZ's Galvanizing Services Segment has captured the "Most Distinguished Project" award two consecutive years.

AZZ's Witt Galvanizing -- Muncie was honored with the top award in the "Food and Agriculture" category for the Indiana Packers Quick Chill Cooler Expansion. The 160,000 square foot cooler and production capacity expansion chose hot dip galvanizing for corrosion protection to comply with USDA food processing requirements. The expansion construction was compressed into a six month schedule and overcame weather delays at a remote location; but thanks to value engineering including hot dip galvanizing the project was completed on schedule.

AZZ's Witt Galvanizing -- Plymouth captured the "Original Equipment Manufacturing" award for galvanizing the Pro - Tote Bellway Wrecker Converter. This unique product enables any semi to be converted into a heavy duty wrecker. Hot dip galvanizing was the only corrosion protection system able to withstand the rugged outdoor use of the unit, including foul weather, road salts and rough handling.

The association presents annual awards in 13 industry categories to recognize projects that utilize hot dip galvanizing in an ideal, creative, innovative, or monumental fashion.

Founded in 1935 the American Galvanizers Association is a non profit trade association dedicated to serving the needs of fabricators, architects, specifiers, and engineers, providing technical support on innovative applications and state of the art technological developments in hot dip galvanizing for corrosion control.

AZZ incorporated is a specialty electrical equipment manufacturer serving the global markets of industrial, power generation, transmission and distribution, as well as a leading provider of hot dip galvanizing services to the steel fabrication market nationwide.

EU to debate CO2 capture policy next week

Reuters reported that European lawmakers will consider forcing EU power stations to trap all emissions of CO2 by 2025 when they meet next week to discuss new laws on carbon capture and storage.

Mr Chris Davies the MEP responsible for guiding CCS legislation through the European Parliament told Reuters that "I'll be proposing retrofitting of all fossil fuel power stations with CCS by 2025.”

Mr Davies met with engineers, oil majors, power firms and environmentalists recently to discuss the feasibility of his proposals and likely targets. He said "I found strong support from industry, and had one power plant manufacturer and one power generator saying it's do able. But there are number of details to be resolved and the goal is dependent on getting the pilot projects up and running.”

CCS is designed to take CO2 emissions from power plants and heavy industry and store it underground. CCS could keep up to a third of all carbon emissions out of the atmosphere, but it has not yet been proven on an industrial scale.

But the technology is untried at a commercial scale and will initially be very expensive, at around EUR 1 billion per power plant, making it unattractive for individual companies to undertake without support.

voestalpine unit VAE acquires 60% stake in CDS Rail

Austrian steel giant voestalpine AG said its unit VAE has purchased 60% shareholding in UK's Control & Display Systems Ltd.

The financial terms of the transaction were not made public.

CDS Rail, which specializes in acquiring data from railway trackside assets, has annual revenues of around EUR 6 million.

PSM jacks up pig iron prices by PKR 3,000 per tonne

The Daily News reported that Pakistan Steel Mills has raised the prices of pig iron by PKR 3,000 per tonne, following the increase in the international market. The maximum price of pig iron has now reached to PKR 39,200 per tonne in the local market excluding general sales tax.

According to the statement issued by PSM, the prices of pig iron in global market has increased by USD 148 per tonne in the last week, which is equivalent to PKR 10,000 per tonne if translated into landed prices. But, the steel producing company has raised only PKR 3,000 per tonne on various types of pig iron.

It said that the thick plate and unsorted products of hot rolled, cold rolled and galvanized products being traded much higher than the listed prices of PSM products by PKR 3,500 to PKR 8,000 per tonne in the local market.

DP World launches work on new Peruvian terminal

It is reported that Peruvian President Mr Alan Garcia and DP World Chairman Sultan Ahmad Bin Sulayam launched the construction of the DP World Callao terminal with a foundation stone laying ceremony.

The event marked the beginning of work on the container terminal in the Muelle Sur area of Callao Port, near Peru's capital, Lima and underlined the partnership approach and commitment of DP World in the construction of infrastructure in this rapidly growing economy.

In June 2006, DP World was awarded a 30 year concession to build and operate the terminal. The first phase of the project will see around USD 210 million invested in two berths comprising 660 meters of quay line and 22 hectares of yard, capable of handling vessels of 5,500 TEU nominal capacity and about 800,000 TEUs . The development will also see improvements in port related infrastructure including land access, widening of the port's sea entrance, navigation aids, security and protection systems, and the development of logistic centers. It is hoped the first phase will be operational in the second half of 2009.

Further development will be phased in line with demand, with total capacity projected to reach around 1.3 million TEUs.

Sultan Bin Sulayem said "This is a significant milestone for this important project. We look forward to its completion and contributing to the growth of this facility and Peru as both a key transshipment hub and gateway port for the west coast of South America. DP World has more than 35 years' experience constructing and operating state-of-the-art marine terminals in markets around the world. We are pleased to be able to share our expertise and look forward to investing over the long term in Callao and in Peru. We also see significant investment opportunities for other companies within the Dubai World group, including tourism, real estate development and logistics."

UAE plants to maintain cement price

Trade Arabia News Service reported that the cement plants across the UAE have pledged their commitment to maintaining cement prices at AED 17 per bag.

Mr Mohammed Ahmed bin Abdulaziz Alshihhi undersecretary of the ministry of economy said that rumors about cement plants increasing prices were untrue, since cement manufacturers had previously committed to fixing their sales price. He also emphasized that appropriate actions will be taken in response to any increase in cement prices implemented by plants operating in the UAE.

Mr Alshihhi said that "The ministry of economy will shortly embark on a series of initiatives to provide cement to local destinations in order to compensate for the product shortfall in the domestic market. We shall encourage companies to import cement directly and act accordingly against suppliers who exploit the growing market demand for cement."

Mr Alshihhi also commended the latest decision of Mr Al Maktoum prime minister to exempt cement and iron from customs tariffs at all national outlets. He pointed out that Mr Mohammed's decision reflects positively on the domestic market as it has broadened the circle of beneficiaries of customs exemption to include suppliers at the national level.

Several construction and ready concrete companies have in fact already begun directly importing cement materials from neighboring countries.

Foundation stone laid for USD 3 billion QAFCO plant

Doha Times reported that Sheikh Tamim bin Hamad Al Thani Qatar's crown prince has laid the foundation stone for Qatar Fertilizer Company's USD 3.2 billion ammonia and urea complex. The project, named QAFCO 5, will make QAFCO the world’s largest single site producer of urea and ammonia.

Mr Abdullah Salatt chairman of QAFCO said that "Increasing worldwide demand for our products encouraged us to add the QAFCO 5 train to our existing facilities. The project will put Qatar in a significant position on the world’s food map with the ever increasing demand for fertilizers."

Mr Khalifa Abdullah Al Sowaidi MD of QAFCO said that the facility will include 2 ammonia plants with a combined capacity of 4,600 tonnes a day and a urea plant with a capacity of 3,850 tonnes a day. The complex, being built at Mesaeed, will be completed in 2011.

Mr Al Sowaidi said a consortium led by Snamprogetti of Italy and Hyundai of South Korea has been awarded the engineering, procurement and construction contract for the project.

He said that Qatar Melamine Company has been formed to produce and then export melamine, a versatile material used in building and automobile industries. The plant will use the urea from QAFCO 1 as the feedstock. He added that QAFCO 1 will be revamped to increase its productivity and supply more urea for melamine.

The EP contract for melamine project has been awarded to Eurotechnica of Italy and the contract to revamp QAFCO 1 has gone to Urea Calsale from Switzerland.

Oman awards major construction deal to Daewoo and Galfar

Khaleej Times reported that Oman has awarded Daewoo Shipbuilding and local firm Galfar a construction contract worth OMR 170.2 million at Duqm port.

Mr KM Sagheer GM of environment at Galfar said that "The contract is to build 2 breakwaters, each 5 kilometers long, two dry docks, each 400 meters long and one quay wall of 2.5 kilometers in length and a number of docking gates. It also involves dredging and reclamation work. The project is expected to be completed by end of 2010. Construction is scheduled to start as soon as possible."

Oman's coastal area of Duqm is to become a fully integrated downstream export centre, together with a major export refinery and a petrochemicals complex. It will have a crude oil export terminal. The area will become a free zone for downstream industries.

OPEC might hold extraordinary meeting over prices – Report

Mr Mohammed al Olaim Kuwaiti interim oil minister said that OPEC could hold an extraordinary meeting if necessary to examine the recent surge in oil prices. He added that "If we feel the need for a meeting, we will not hesitate to meet."

Mr al Olaim said that "OPEC is always seeking stability in the oil market." He added that it is not the fundamentals of supply and demand which have pushed prices to a new high near USD 120 per barrel recently.

Mr Olaim said that market speculation and the weakness of the US dollar, as well as limits to refining capacity were the main reasons for the soaring prices. Kuwait is the cartel's fourth biggest producer.

Iran starts crude trade in euro and yen

Fars News Agency reported that Iran is conducting all its crude trading in euro and yen, instead of the US dollar.

Mr Hojjatollah Ghanimifard international affairs director of National Iranian Oil Company said that "All of Iran's oil trading is being done with euro and yen. We agreed with all the buyers of Iran's crude to trade oil in currencies other than dollar. In Europe, Iran's crude is being sold in euro, in Asia in euro and yen, and trading with yen has not only been in Japan."

In the past, Iranian officials have said that oil remained priced in the US dollar but with actual payments carried out in other currencies. Iran said it earned USD 70 billion from oil exports in the year to March 2008, windfall revenues on the back of soaring crude prices.

Iran has been reducing its exposure to the dollar as the United States has ratcheted up sanctions because of a dispute over Tehran's nuclear program. It may be noted that United States, leading efforts to isolate Tehran has slapped sanctions on Iranian banks and other bodies, moves that prompted many foreign banks to cut dollar dealings with Iran or stop all business. The UN Security Council has also imposed limited sanctions on Iran, which insists its nuclear plans are purely peaceful efforts to master skills to generate electricity.

Bahrain to host 2009 edition of Power Gen Middle East

Trade Arabia News Service reported that the 2009 edition of the Power Gen Middle East will be held in Bahrain, following a hugely successful event in 2008 for power generation, transmission and distribution and water industries.

Under the patronage of Shaikh Khalifa bin Salman Al Khalifa Prime Minister of Bahrain, Power Gen Middle East 2008 enjoyed a 26% increase in visitor numbers and a 30% growth in exhibitors.

The 2009 edition will be held at the Bahrain International Exhibition Centre in Manama from February 17th to February 19th 2009. The advisory board of Power Gen Middle East is now accepting abstracts for consideration for the 2009 conference. The deadline to submit papers is June 23rd 2008.

This leading conference is a great opportunity to network with leading organizations and high level influencers and for industry professionals to represent their company at the most prestigious event in the power and water industries.

TAQA net profit in Q1 of 2008 surges six folds

Abu Dhabi National Energy Company has posted a more than six fold profit rise in January to March 2008 quarter after adding petroleum business revenue from a USD 4.94 billion buyout of a Canadian firm PrimeWest Energy Trust.

TATA, which is 75% owned by the Abu Dhabi government, made AED 397 million in the three months ended March 31st 2008 as against AED 64 million a year earlier. Its quarterly revenue hit AED 4 billion as compared with AED 1 billion a year earlier.

TAQA agreed on about USD 11 billion in acquisitions in 2007, including acquiring PrimeWest Energy Trust and a USD 540 million buyout of the Canadian unit of Pioneer Natural Resource Company. TAQA also bought BP's Dutch gas operations in 2007. It plans to sell AED 4.15 billion worth of convertible bonds in the next two months.

PrimeWest contributed about AED 210 million to group profit since TAQA completed the acquisition on January 16th 2008. Revenues from oil and gas activities jumped to AED 1.9 billion from AED 76 million a year earlier. Revenues from its gas storage business grew to AED 216 million from AED 72 million while sales from electricity and water rose by 38% YoY to AED 1.2 billion.

Turkey may join Turkey Iran Azerbaijan rail project

Russian Regnum news agency reported that Turkey is planning to cooperate with the Iran to build a railroad, which will link the country to Azerbaijan via Iran.

The report comes after an Economic Cooperation Organization meeting in Pakistan, in which member states agreed on the construction of the China Pakistan Iran Turkey railroad project. The 10 ECO member states include Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.

Mr Binali Yildrim transportation minister of Turkey said that "We have already discussed the project with our Iranian colleagues and we will discuss further details in the near future."

Major contract for steel mill in Egypt

It is reported that pumps from the ETANORM R series are part of a supply package totaling 100 KSB pumps for a major contract destined for a steel mill in Sadat City in Egypt. The KSB Group has booked an order for the supply of industrial pumps to a steel mill in Cairo.

More than 100 pump sets will be used as cooling water and de scaling pumps in steel production. The order value totals several million euros.

The customer is an Egyptian steel manufacturer who is building a new steel mill including a 165 tonnes electric arc and a 165 tonnes ladle furnace as well as a 6 strand billet caster in Sadat City.

The positive experience with KSB products and services gained in other plants prompted the plant operator to place this order with KSB. Delivery will be affected in two lots and completed by February 2009.

CISA update of Chinese steel sector in Q1 of 2008

China Iron & Steel Association recently released steel production, consumption and export conditions of the first quarter, displaying the industry's overall performance in this period.

On production, the crude steel output reached 124.9363 million tonnes up by 8.56% YoY down by 13.78 percentage points from the comparable growth rate and predicted that in 2008 accumulative output would rise by 6.3%. On consumption, apparent consumption of crude steel gained 13.92% YoY given 10.6% rise in GDP and 24.6% jump in social fixed assets investment.

On export, converting steel product and billet/slab into crude steel, combined steel export in the first quarter came to 12.1929 million tonnes down by 4.6188 million tonnes from the comparable figure in 2007. This translates to some 18.50 million tonnes less in export for the whole year.

As to production cost and steel price, both rose markedly and the large and medium-scale enterprises maintained 26.47% growth in profit. In months ahead, continued price rise of iron ore, coke and coking coal as well as pricier labor force will be seen, coupled with tight capital, cost pressure of steel production is believed to increase.

In the meanwhile, domestic steel price will have limited room for further rises, or may slightly retreat under changes of supply/demand situation. As a whole, steel price level this year will stand higher than last year's, but the hiked part may not offset the additional costs. Accordingly, crude steel production in following months will endure notable effects from the cost and price.

As for demand, possible decline in GDP, investment and export growth in the next months may restrict the growth margin of crude steel demand. Its forecast yearly crude steel consumption may rise about 11%, and the export may fall 20 million tonnes from last year. Export decline may expand later this year, with the reduced part returning to domestic market.

With the possibility of further expanding supply and reducing demand, steelmakers are hoped to properly arrange production, accelerate backward capacity elimination and check over fast output growth while make active efforts in coping with mounting input cost.

China aiming for 100,000MW wind power capacity by 2020

It is reported that China is looking to expand wind power generating capacity to 100,000 megawatts by 2020 or fivefold the previous target.

Mr Shi Pengfei vice president of Chinese Wind Energy Association said referring to the National Development and Reform Commission China's top industry planning body that "The NDRC has just recently completed an internal meeting to discuss the possibility of increasing wind power capacity to 100,000MW. It's not 20,000MW or 30,000MW as previously targeted."

Mr Shi said at a wind equipment show in Shanghai that China aims to get 15 percent of its power consumption from renewable sources by 2020, though the majority of the capacity will be contributed by hydropower projects. To meet this binding target, besides hydropower, wind has to play a major role as others like solar and bio energy will only generate small amounts out of the total.

According to the electricity regulator and industry association China has 5,600MW of installed wind capacity at the end of last year, though nearly a quarter of them are not connected to grids. Distributors in China are not keen on wind power as they have to secure back up energy during times when the wind is not strong enough and wind power costs more than coal-fired electricity.

HR price trends in Shanghai, Beijing and Guangzhou

It is reported that in Shanghai, the HR coil price kept rising and some of the traders even suspend their sales

Shanghai
1. 1500mm coil stands at CNY 5580 per tonne to CNY 5600 per tonne, 2. 1800mm coil at CNY 5820 per tonne
3. 2.75mm coil by Benxi Steel is posted at CNY 5560 per tonne up by CNY 30 per tonne
4. 7.5mm low alloy products is posted at CNY 5650 per tonne and 11.5 low alloy products posted at CNY 5950 per tonne
5. CCS1810 is posted at CNY 5920 per tonne remain unchanged.

In Beijing, the HR market sees a mild upward move amid stability. Currently, 3.0mm coil is posted at CNY 5750 per tonne; 7.5mm uncoiled plate is posted at CNY 5700 per tonne.

In Guangzhou, the HR price steps up with some traders suspending sales.1500mm coils with a diameter of 4.75mm or above are offered at CNY 5700 per tonne up by CNY 20 to CNY 50 per tonne; 2.75mm product is posted at CNY 5800 per tonne.

(Sourced from MySteel.net)

Sandvik to build new plants in China

It is reported that Swedish based Sandvik group one of the world's largest engineering equipment producers plans to expand its manufacturing production bases on the Chinese mainland this year to tap the nation's mining and construction boom.

Sandvik group said the factories will start construction in October. In addition it also plans to expand its production lines for mining equipment crushers in Jiading of Shanghai this year.

The three factories, operated by the company's three business sectors and Sandvik Mining & Construction, Walter, and Sandvik Hard Materials will respectively produce
1. Cemented carbide tools for mining equipment
2. Design and produce cutting tools and special tools
3. Produce cemented carbide wear parts.

Mr Svante Lindholm president of Sandvik China Holding Co said Sandvik China is set to build three new factories in Wuxi, Jiangsu province to enhance its production capacity. Mr Svante said "The new production lines will mainly serve the Chinese market and the secondary purpose is to serve Asian market and exports."

Sandvik notched up CNY 3.8 billion sales revenue in China last year up by 20%YoY. While sales from mining equipment business grew the fastest among all its three business sectors.

Biomass power plant settles in Changchun

It is reported that Huaneng Changchun Biomass Power Plant, Huaneng's first biomass power plant, settled at Changchun in Jilin province on April 26th 2008.

The first power plant is expected to be operational by August 2009 the plant has an installed capacity of 50,000 KW and has received a total investment of CNY 300 million. It is designed to generate as much as 180 million KWH of electricity annually after its completion.

The biomass-fired power uses crop straw as the main fuel for generation. It will consume 200,000 tonnes of straw annually, equivalent to savings of 85,000 tonnes of coal every year. Meanwhile, the heat produced by burning straw will provide heat for 1.8 million square meters. The energy efficiency rate could be as high as 90%.

Chinese scrap steel import in January to March 2008

China scrap steel import to different countries in January to March 2008 is as under.

(In tonnes)

(Sourced from MySteel.net)

Yakutia sells coal property for RUB 6.4 billion

Interfax reported that the rights to the Malo-Elginskoye section of the Elga coal deposit in Yakutia have been auctioned for RUB 6.44 billion ways above the starting price of RUB 40 million to the Sakha-Ugol Holding Company.

Mr Gennady Naumov head of local subsurface resources agency Yakutnedra told Interfax that the auction lasted four hours and ended after the price was raised 1,600 times. He said there were three other bidders: Yakutugol Holding Company, OJSC Tula Inkom and CJSC Kolmar Proyekt.

The report added that the winner will receive a 25 year license to explore and mine the deposit, which contained probable P1 reserves of 37.18 million tonnes of bituminous coal and P2 reserves of 11.433 million tonnes as of January 1st 2007.

Russia and the Ukraine to be connected by bridge across Kerch Strait

RIA Novosti cited Mr Viktor Zubkov the prime minister of Russia as saying that the Russia’s and the Ukrainian have entrusted to the Ministries of Transport of two countries to prepare a proposal on building of the bridge across the Kerch Strait.

Due to the preliminary estimates, the project will cost USD 480 million. The length of the bridge will be 4.5 kilometer, the breadth 22 meter the height 50 meter above the sea.

Norilsk will bid for Russian Udokan Copper Deposit

It is reported that OAO Norilsk Nickel the world's largest nickel producer by production volumes board decided that the company will bid for a license to develop the Udokan copper deposits in Russia's far east.

According to an earlier statement from the Russian Federal Agency for Natural Resources the starting price for the 20 year license will be RUB 4.5 billion and the winner will be named July 17.

According to Russian media reports, Russian Technology, or Rostekhnologii one of Russia's biggest state corporations, has agreed with tycoon Mr Vladimir Potanin the main shareholder in Norilsk and Mr Alisher Usmanov owner of coal and iron ore mining company Metalloinvest Holding to bid for the Udokan copper field jointly.

A person familiar with the matter said the issue of a joint bid wasn't raised at the Norilsk board meeting.

Alcoa plan to increase spending to USD 220 million in Russia

It is reported that Alcoa, the world's third largest aluminum producer, planned to increase spending to USD 220 million this year on its two plants in Russia to help boost output and efficiency.

Mr Yevgeny Luzov Alcoa country manager for Russia said the company will invest slightly less than the combined USD 290 million spent in the previous three years.

Glencore to be BasEl partner in Russneft

Interfax reported that the Basic Element holding, whose application to acquire a blocking stake in RussNeft the Russian Federal Antimonopoly Service has been looking into for over eight months will run the oil company together with Switzerland's Glencore.

Mr Oleg Deripaska chief beneficiary of BasEl said "We are waiting for the Federal Antimonopoly Service to authorize the acquisition of Mikhail Gutseriyev's stake and are going to work in the company together with Glencore as a partner. He said if a person wanted to quit we are ready principally."

Glencore is a long-standing partner of RussNeft. Mr Gutseriyev the former RussNeft chief founded the oil company with financial support from Glencore. In 2005, Glencore disclosed that it acquired from 40% to 49% in several oil producing Glencore subsidiaries. A Glencore representative said last September that the company had applied for clearance to buy minority stakes in three RussNeft upstream units.

Glencore is part owner of United Company RUSAL the biggest enterprise of Deripaska's BasEl.

Mr Deripaska firm ends talks on Serbia copper smelter buy

Interfax reported that Strikeforce Mining and Resources Limited a member of Oleg Deripaska's Basic Element holding has decided not to participate in further negotiations with the Serbian Privatization Agency regarding the acquisition of the RTB BOR copper mining and smelting works

Mr Geoffrey Cowley CEO of SMR's said "We were prepared to negotiate with the Privatization Agency within the terms originally proposed in our bid. However, the Privatization Agency has made such negotiations conditional upon submitting a further financial guarantee on substantially different terms both in format and content."

He said that "We were very much interested in purchasing such a major industrial complex as RTB BOR and were open to a constructive dialogue. We insisted that in their assessments of the bids, the Serbian government should rely not only on the purchase price but also on the proposed investments which in our case were more than twice the minimum level required by the conditions of the tender and totaled over USD 400 million. We were seeking to respect the interests of all interested parties and, primarily, of the local community."

Lukoil to modernize refineries and filling stations

Interfax cited Mr Vladimir Nekrasov VP of Lukoil as saying that Lukoil plans to invest USD 25 billion in 2008-2017 to modernize its oil refineries and filling station network. He said the figure does not include investment in new acquisitions in the refining and retail segments.

He added that about USD 5 billion will be allocated to new facilities for higher value added processing at Lukoil refineries in Russia. Of that figure, USD 1 billion will go to modernization of the Nizhgorodnefteorgsintez, USD 1.8 billion to the Volgograd refinery, roughly USD 1 billion to the Ukhta refinery and about USD 1 billion to the Perm refinery.

He also said that the figures are not final, as costs rise continuously. "Earlier we planned to spend USD 600 million on the NORSI modernization. Now its USD 1 billion."

Transneft net profit for Q1 up by 22% YoY

RIA Novosti reported that Russian oil pipeline monopoly Transneft unconsolidated net profit calculated to Russian Accounting Standards rose 22.4% YoY in the first quarter to RUB 1.174 billion.

Transneft attributed the rise in net profit to positive exchange rate differences on borrowings drawn in US dollars to finance the construction of the East Siberia-Pacific Ocean oil pipeline system.

Transneft earlier said it expected its consolidated net profit for 2007 to hit RUB 63.6 billion.

Mosenergo net profit in 2007 down by 90.3% YoY

RIA Novosti reported that Moscow's electric power utility Mosenergo net income calculated to International Financial Reporting Standards down by 90.3% YoY in 2007 to 837 million.

Mosenergo, Russia's largest territorial generating company supplying 80% of Moscow's heating requirements and 85% of power demand in the capital and the Moscow Region said net profit declined from 2006, when the power utility posted an IFRS net income of USD 65 million after the release of provisions for fixed asset devaluation.

Mosenergo said revenues in the reporting period climbed 16% to RUB 78.598 billion and income from financial investments grew 2,250% to RUB 1.483 billion while pre tax profit declined 88% to RUB 1.494 billion.

Mosenergo unites 17 electric power plants with electric power capacity of 10,600 MW and thermal generation capacity of 39,000 MW.

MEPS sees a surge in ferritic stainless steel prices

UK based consulting firm MEPS said that World Average price for type 430 cold rolled coil in April is at an historic high and the figure is forecast to rise to near USD 2500 in June this year, which equates to a YoY increase of 34%.

MEPS said that the key driver for this gain is a hike in mill input costs, mainly ferrochrome. Its price was expanded from USD 0.85 per lb in mid 2007 to around USD 2 in recent agreements with producers. MEPS said that “We estimate that in June 2007 the chromium cost in the manufacture of 430 grades was at least USD 340 per tonne of steel. In June this year the figure will be in excess of USD 800 per tonne, an increase of $US460. Over the same time frame, ferritic selling prices have moved up by around USD 660.”

It said that “It would appear that there are very few signs of any reduction in the ferrochrome price in the near term. In fact, further increases are anticipated pushing stainless steel prices even higher, irrespective of market forces.”

MEPS added that “However, we should not forget that the austenitic grades are also seriously affected by the rising cost of ferrochrome and ferrous scrap. The popular 304 specification contains a similar amount of the metal to the 430 type. The input cost increases outlined for ferritics apply equally to the austenitic. However, nickel prices have been slipping of late offsetting, to a degree, the chrome figures.”

Latrobe Specialty Steel USW begins strike

It is reported that the first strike in a decade is under way at Latrobe Specialty Steel at Latrobe in Pennsylvania after members of the United Steelworkers union began picketing the plant at 12:01 AM on Thursday following their rejection of a company contract offer on Wednesday. Latrobe's previous six-year labor deal with the union expired at midnight Wednesday.

Mr Kevin Caruso president of USW Local 1537 said the pickets were meeting no early resistance from the company. No company trucks had attempted to cross the picket line during the first hour it was in place.

Mr Caruso also confirmed the union and company had not been in contact since Latrobe's three year proposal was rejected 301-27 and that no new bargaining sessions were scheduled. He said that "We are playing it day to day.”

The last strike in 1998 lasted several days.

Latrobe is a major producer of high alloy specialty steels used primarily by the aerospace and defense industries. Based in Latrobe, the company was part of the Timken group until it was sold to a private equity group in December 2006.

Synthesizing stainless steel by electroplating

ARS Technica has published an article that stainless steel, which has a wide range of applications, including cookware, building materials and medical implants, due to its biocompatibility and resistance to corrosion, it can be used to produce bio devices.

The article said that to make fine scale bio devices, it would be helpful to synthesize stainless steel while electroplating it onto the surface of the device. Electro deposited materials containing iron, nickel and chromium have been made before, but they are too thin or fragile for actual use.

The excerpts are as under

One of the greatest challenges in producing an alloy with iron, nickel, and chromium is getting enough chromium to be electrodeposited. It is difficult to find a chemical that can complex with chromium well enough to stay together until electro deposition and fall off during the deposition. Another problem involves the presence of chromium itself. Although chromium adds anticorrosive qualities to the alloy by forming a passivated oxide layer at the surface, it increases the likelihood of cracking, limiting the overall thickness of the material.

Adding an organic chemical containing sulfur can help reduce the stress on the structure and lower the risk of cracks, but organic compounds can interfere with corrosion protection. Finding the right combination of conditions is essential.

A group of Swiss researchers recently published their method for the electroplating of an iron nickel chromium alloy in Chemistry of Materials. They optimized a system by using a copper cathode in a bath of electrolytes that is stirred constantly to maintain homogeneity. A convection flow of 250 rpm agitates the cathode to allow an even deposition of the metals.

Chemicals for Stainless Steel Electroplating performed systematic tests to find the ideal complexing agent for chromium. The best complexing agent will break off from the chromium as it is simultaneously deposited on the cathode with nickel and iron. They examined glycine, acetic acid, formic acid, and dimethylformamide and, of the four, they found that glycine gave the best deposits with a current density of 10 A/dm2. The alloy can have a maximum thickness of 23 μm, and the composition is 56% to 58% iron, 26% nickel and 14% to 16% chromium.

Next, they tackled the problem of producing stable, crack free microstructures with electrode position on a mold. They tested two sulfur-containing organic chemicals, saccharine and sodium dodecyl sulfate. Saccharine additives increased the deposition time and generated a maximum thickness of only 1 to 2μm that was subject to cracking. Similarly, using sodium dodecyl sulfate did not allow depositions to be greater than 1 μm in thickness. Instead of trying more organic chemicals, the researchers pushed a strong laminar flow through the mold. They were able to make stainless steel up to 20 μm thick with a rough, but crack free, surface. In terms of hardness and corrosion resistance, the electrodeposited alloy was comparable to stainless steel 316.

The researchers demonstrated the feasibility of utilizing their electroplating method for depositing stainless steel alloys inside patterned surfaces for applications like micro electro mechanical systems. However, more work is necessary to refine the process. Further screening of different organic additives may improve the surface quality and expand the range of deposition thickness. In addition, explorations into using other metals, such as molybdenum, may enhance the properties of the electrodeposited alloys.

Timken Q1 sales up by 12% YoY

The Timken Company reported sales of USD 1.43 billion during the first quarter of 2008, an increase of 12% YoY. The increase was driven by strong sales in global industrial markets, as the company benefited from its capacity expansion initiatives, as well as the favorable impact of pricing, surcharges and currency.

Timken’s first quarter income from continuing operations was USD 84.5 million compared to USD 74.3 million in the first quarter of 2007. Excluding special items, income from continuing operations increased 26% to USD 78.9 million for the first quarter of 2008, compared to USD 62.5 million in 2007. Strong first quarter earnings benefited from favorable pricing, volume, mix and currency, which were partially offset by higher LIFO charges related to increased material costs. Special items, net of tax, in the first quarter of 2008 totaled USD 5.6 million of income compared to USD 11.8 million of income in the same period last year and included a gain on a real estate divestment associated with a prior plant closure, partially offset by charges related to restructuring, rationalization and impairment.

Mr James W Griffith president & CEO of Timken said that “We achieved record first-quarter earnings as execution of our strategic initiatives and a more efficient operating model allowed us to take better advantage of continued strong global demand for our industrial products. We continue to have a positive outlook for 2008 performance as we bring more capacity online in attractive markets and advance our pricing and execution initiatives.”

The Timken Company keeps the world turning, with innovative friction management and power transmission products and services, enabling our customers to perform faster and more efficiently.

Mr Xiaobo appointed as chairman of Taigang

Shanxi Taigang Stainless Steel Company Limited recently announced that it has appointed Mr Li Xiaobo as chairman of the board in the company, replacing Mr Chen Chuanping with effect from April 29th 2008.

Antam to hit nickel goal despite repairs

Reuters reported that Indonesia's PT Aneka Tambang expects to meet its 2008 nickel output target despite shutting one of its smelters for repairs.

Antam’s first quarter nickel output of 4,362 tonnes was little changed against the same period a year ago. The company said it had so far reached 26% of its production target of 17,000 tonnes of nickel in 2008.

Antam said that performance at two of its three smelters was stable, while the other was shut for routine maintenance on February 19 and will resume in the middle of the second quarter. It added that "Despite the overhaul of the FeNi I smelter, Antam expects to achieve its 2008 ferronickel production target of 17,000 tons.”

Chinese import of ferrochrome in Q1 of 2008

China ferrochrome import from different countries in January to March 2008 quarter reached 413,544 tonnes.

Details of China ferrochrome import from different countries in January to March 2008 quarter is as follows

In tonnes
(Sourced from Mysteel.net)

Murchison denies takeover talks with Sinosteel

Australian iron ore prospector Murchison Metals Ltd said that it is not in talks with China's Sinosteel on a possible takeover.

It said that "The company has not been contacted by, and is not in discussions with, Sinosteel Corporation in respect of a possible takeover bid.”

Murchison was responding to an Australian stock exchange query about sharp moves in its share price. The stock has surged about 20% since Murchison said on Tuesday that Sinosteel had acquired 2.4% of its stock. The announcement triggered market and analyst speculation that Sinosteel could be preparing a bid.

Murchison is in partnership with Japan's Mitsubishi Corp and plans to build railways and a port from scratch to tap vast reserves of iron ore in the Midwest region of Western Australia.

CIL appoints Deloitte as IT adviser

TOI reported that Coal India Limited has appointed Deloitte Consulting to work out an IT strategy for the country's biggest coal mining firm. The deal, agreed to on March 31st 2008, envisages that Deloitte would have to complete its assignment by November. As of now, it is undecided whether Deloitte would also be involved in the implementation of the IT initiative at Coal India.

Sources said almost all the big names in the consulting arena had vied for the CIL contract as the coal major has not ruled out the possibility of its IT consultant being associated with the implementation. They added that "The implementation contract would be worth quite a lot considering that Coal India wants to go in for an integrated exercise.”

CIL has been talking of leveraging the power of IT to improve its operations for quite some time. However, the slow decision making process in the government set up had prevented it from moving quickly on this front earlier.

Comparatively low key, Deloitte has been ramping up its consulting practice in India to take advantage of the opportunities presented by a growing economy. Attracting PSU clients has now become one of its priorities. Last year, Deloitte had pulled off a coup by weaning away several premier consultants from audit and consulting giant PwC. It also set up a presence in Kolkata as part of its expansion plans.

Chinese coke export to different countries in 3 months

China had exported 2.933 million tonnes of coke during January to March 2008 period. Brazil leads the list of Chinese coke export destination with 0.596 million tonnes or 20.3% of the total during the period followed by Japan with 0.516 million tonnes

The country wise export destinations are

(In million tonnes)

(Sourced from Mysteel.net)

Japan trims iron ore imports in March

Japan’s import of iron ore in March totaled about 11.3 million tonnes, decreased by 1% YoY compared to the same period of last year. The price on average was at JPY 7,271 per tonne.

Japan March iron import from different countries

(In million tonnes)

(Sourced from YIEH.com)

Nine workers killed in South African mine accident

Reuters reported that nine workers were killed on Thursday when a cage they were riding plummeted down a shaft at Gold Fields' South Deep mine, the latest in a string of fatal mishaps at the mining firm's operations in South Africa.

Mr Andrew Davidson a spokesman said that the accident, believed to have occurred when a cable attached to the cage snapped at around 3,000 meters below the surface, led to the suspension of some operations at South Deep in Gold Fields He said that "The actual conveyance fell about 58 meters and there were no survivors. All those killed were contract employees.”

South African trade union Solidarity identified them as being employed by Murray & Roberts Cementation.

Mr Jaco Kleynhans a spokesman in a statement said that "The union also implores Gold Fields to take all necessary steps to put the current cycle of accidents to an immediate end.” He said that four workers were killed after an underground accident on Tuesday at Gold Fields' Driefontein mine and another died after a rock fall at South Deep the same day.

Safety inspectors from South Africa's Department of Minerals and Energy were at the site after the accident. The fatalities came amid increased scrutiny of mining safety standards in South Africa, a major producer of gold and platinum.

TPC refinances bridge loan for stake in Indonesian coal mines

TATA Power has announced the refinancing of its bridge loan taken for the acquisition of 30% equity stakes in major Indonesian thermal coal producers PT Kaltim Prima Coal and PT Arutmin Indonesia as well as related trading Companies owned by PT Bumi Resources Tbk.

TATA Power said that it has successfully refinanced USD 850 million out of a total of USD 950 million bridge loan taken at the time of acquisition. It said that the USD 950 million bridge loan had a tenor of 1 year of which USD 850 million is being refinanced with the long term loans. The refinancing consists of a non recourse USD 580 million facility and a USD 270 million facility with recourse to the company. The non-recourse facility has a door to door tenor of 6 years and the recourse facility has a door to door tenor of 7 years.

The pricing on the facilities is competitive for loans of such nature. The financing has been provided by a group of banks led by 5 mandated lead arrangers including Barclays Capital, Bank of India, ICICI Bank, State Bank of India and Sumitomo Mitsui Banking Corporation.

TATA Power release said that it would evaluate the option of refinancing the balance 100 million of the bridge loan at an appropriate time within the residual bridge loan tenor.

Global demand for mining machinery to exceed USD 33 billion

According to a new study from the Cleveland based industry research firm The Freedonia Group Inc, Global demand for specialized mining machinery and equipment including separately sold parts and attachments is projected to increase 5.9% per year through 2011 to USD 33.6 billion.

It said that “Advances will be fueled by continued demand for commodities such as iron ore and copper. In addition, the ongoing global thirst for energy will boost global coal output. China and India will be leading sources of mining equipment demand. However, just as importantly, these nations will continue to fuel demand for mined products throughout the world, thereby providing opportunities for machinery producers.”

The study said that China has shown strong growth in mining equipment demand, a direct result of investment in its local mining industry. For example, coal output nearly doubled from 2001 to 2006, reflecting the nation’s intense need for energy. China is also a major source of commodities such as iron ore and bauxite. Other major Asia/Pacific markets for mining equipment include Australia and India. Like China, India has experienced major growth in coal output in recent years. Australia, a leading producer of bauxite and iron ore, is a major source of commodities for its developing Asian neighbors.

It said that demand for mining equipment in Asia is expected to post strong gains, as region’s rising population and industrial output will lead to increased energy and raw material needs. Africa will post healthy gains, benefiting from rising demand for precious metals and copper. Growth in demand for mining equipment in Latin America will reflect increased mining investment in nations like Peru and Chile. Eastern Europe will also post gains, benefiting from gains in the large Russian market.

Growth in North America and Western Europe will lag the industry average, reflecting the maturity of these markets. However, the largest producers of mining equipment are generally found in the United States and the industrialized nations of Western Europe. Such countries have a long history and extensive expertise in the development of capital equipment industries of all types, which many have leveraged in mining machinery. China has quickly emerged as a major producer, due in large part to the nation’s growing mining industry. China has become a net exporter of mining equipment, shipping products to both developing nations and mature markets such as the US.

Analysis on China's imports of Indian iron ore in 2007

It is reported that Mr Luo Bingsheng vice chairman of China Iron and Steel Association has made an introduction to China's imports of Indian iron ore in 2007 as well as some analysis on the surging price at the China-India Iron Ore Summit held in Beijing.

According to Mr Luo China's iron ore imports from India are increasing year by year yet the market share is falling.