Protest may delay ArcelorMittal steel plant in Orissa

Kalinga Times reported that after mega steel plant projects in Orissa of POSCO and TATA Steel have been delayed for years because of the local protest against land acquisition, ArcelorMittal could be join the bandwagon. Actually, the delay is quite evident as local protests have begun in the Keonjhar district of Orissa.

The protestors recently said that they would lose more than 800 acres of agricultural land on which they are dependent. They argue that the plant should be set up on barren lands. Mr Muralidhar Sardar president of Mittal Pratirodh Manch said that "We want better irrigation for our agricultural land, for our better livelihood. We do not want the Mittal steel plant, which would take away our land and thus our livelihood. We are ready to die but would not allow the plant on our land."

The report also cited Mr Vijay Bhatnagar CEO of ArcelorMittal India as saying that "We target to start the plant by 2012. But if there is any delay in starting the work then this would add to the date of commencement of the plant."

Anticipating the tussle, ArcelorMittal has started workshops for the first time in Keonjhar to convince the people about the benefits of the steel project. But they have a tough job on hand. The project would displace nearly 15,000 people in 17 villages in Patna Tehsil of Keonjhar.

ArcelorMittal signed the MoU with the Orissa government on December 12th 2006 and it now intends to start the project work on the ground. The project requires 8,000 acres of land.

Stemcor eyeing stakes in steel projects in India

The Telegraph reported that the UK based steel trading house Stemcor is eyeing minority stakes in steel and raw material projects in India.

Stemcor, which has a turnover of around USD 8 billion is open to stake buys, but does not want to become a manufacturing outfit. Mr William Attenborough MD (West and Southeast Asia) of Stemcor said that “Our primary business is trading. The investments are made to consolidate and enhance that.”

Stemcor already has small stakes in three Indian firms including Calcutta based Electrosteel Castings in which it has a 5% stake, 10% in Orissa’s Mesco Steel and 14.67% in Sathavahana Ispat Ltd.

Mr Ratan Tata in 30 most powerful list of UK constructions

Indian business icon Mr Ratan Tata, already named among the world's most influential business people from India, has now made to a list of 30 most powerful in the British construction space.

According to the list compiled by UK based digital magazine Contract Journal, Mr Ratan Tata has been placed at the 16th position, ahead of housing minister Mr Caroline Flint, who is at the 18th place. Mr Ian Tyler of engineering and construction services provider Balfour Beatty topped the list, followed by Mr Simon Williams director of cartels at Office of Fair Trading and Mr Ray O'Rourke chairman of private construction firm Laing O'Rourke.

The report said that "Already providing products that feature in many British homes after its takeover of Tetley in 2000, TATA Group now supplies the mainstay material in most of its offices."

The report said that TATA’s joint entity known as TATA Corus has a 50% share of the UK market. It added that "Such is its dominance that steelwork contractors have nowhere to turn when it pushes through price rises. With prices set to surge further as input costs continue to rise, Mr Tata could have a major impact on construction costs."

ArcelorMittal to complete survey for Jharkhand steel project

Ranchi Express reported that ArcelorMittal is likely to complete survey of 20,000 acres of land for its proposed 12 million tonnes per annum integrated steel plant at Gumla in Ranchi district of Jharkhand. It has roped in Ranchi based consultant Sigma to carry out land scheduling survey in Torpa Kamdara blocks of Khunti and Gumla districts.

The details of land scheduling include forest area, government and non government land and places of religious and historical importance. On the basis of land scheduling report, ArcelorMittal's consultant MN Dastur & Company, which has been appointed for preparing the detailed project report for Jharkhand project, will help the company in selecting the exact areas, to set up steel and power plants, besides a township.

After a final nod to the land scheduling report from MN Dastur & Company, ArcelorMittal is likely to apply for land acquisition to the Jharkhand government. The process for submitting application for acquisition of land for the proposed project may take about a month's time.

TATA Steel and Essar in race for PT Krakatau Steel

As per media reports, Indonesia's state owned Krakatau Steel has 5 highly eligible suitors including ArcelorMittal, TATA Steel, Essar Steel, BlueScope Steel and POSCO.

Mr Ansari Bukhari director general for metal, machinery & textiles of Indonesia said that the first four namely ArcelorMittal, TATA Steel, Essar Steel and BlueScope had evinced interest, while Mr Sofyan Djalil enterprises minister of Indonesia had mentioned POSCO's name.

However, POSCO said that ''The Indonesian government has not announced details of a privatization plan for Krakatau Steel yet and we have not expressed interest in the company.''

According to Indonesian vice President Mr Jusuf Kalla, Krakatau has not been able to raise its production capacity due to lack of funds and technology. This causes Indonesia to import 6 million tonne per annum. Mr Kalla said that it was not possible for Krakatau Steel to make profits if it did not engage in the steel industry from the upstream to the downstream levels like Mittal or TATA and other steel industries in the world.

Krakatau Steel produces 2.5 million tonnes per year and is valued at USD 1.2 billion. In 2007, Krakatau Steel posted a net profit of around IDR 370 billion. In the first quarter of 2008 alone, the figure already reached IDR 400 billion.

Visa Steel 2007-08 net profit up by 27% YoY

Visa Steel has posted net profit of INR 20.99 crore for January to March 2008 quarter up by 3129% YoY as against INR 6,500,000 in January to March 2007 quarter. Revenue for the quarter rose by 78% YoY to INR 259.68 crore as against INR 145.98 crore.

Visa Steel has also recorded INR 682.81 crore revenue for the financial year ended March 31st 2008 up by 26.9% YoY as against INR 537.93 crore in the year ended March 31st 2007. Net profit for the year increased by 110% YoY to INR 43.15 crore from INR 20.52 crore.

Mr Vishal Agarwal MD of Visa Steel said that " The growth in revenues and profit for 2007-08 fiscal have been driven by better realization in products like pig iron, coke and ferrochrome combined with higher volume growth in the coke and ferrochrome operations."

NLC to set up 2,000 MW power project in Orissa

BL reported that Neyveli Lignite Corporation Limited will set up a 2,000 MW coal based power plant in Orissa in a JV holding a majority stake of 51%.

Mr S Jayaraman CMD of Neyveli Lignite said that "There was some delay in acquiring land, but we are solving it soon." He added that it would implement a coal based 1,000 MW power plant at Tuticorin. A JV firm by NLC and Tamil Nadu Electricity Board would implement the project.

Mr Jayaraman said that "We have tied up with a consortium of banks for INR 2,500. We may go for an additional loan of INR 1,800 crore in 2008."

Neyveli Lignite will also set up a mining project in Orissa in partnership with Hindalco and Mahanandi Coalfields.

Indian Railways production units perform well in April 2008

It is reported that Indian Railway’s manufacturing units, except Rail Coach Factory and Rail Wheel Factory, have exceeded their respective targets during April 2008.

The punctuality percentage of mail and express trains was 92.1% in broad gauge and 99.7% in meter gauge during April 2008 as compared to 91.7% and 99.5% respectively during April 2007.

Indian Railways have realized an amount of INR 28.35 crore approximately during the month of April 2008 through ticket checking.

Elecon scouting for acquisitions in Europe - Report

BL reported that Gujarat based Elecon Engineering is in talks with a European company for an acquisition seeking to establish a global footprint. It is also looking to expand its material handling equipment and gear box division in the overseas market.

Mr Prayasvin Patel CMD of Elecon Engineering said that "We are looking to buy a company which will be about 60% to 70% of our market cap. The discussions are at an early stage and it would not be fair to elaborate on it." He added that a proposed European foray will give it an established network outside India and a high margin customer base.

Meanwhile, Elecon Engineering has also announced an investment of INR 182 crore for 2008, which will be used to upgrade and enhance capacity at its manufacturing location in Vallabh Vidyanagar in Gujarat. About INR 100 will be specifically invested in expanding capacity for the wind mill gear box facility.

Elecon makes stackers, re claimers, elevators, chain conveyors, ship loader, crawler and rail mounted trippers, gear boxes among other products. It has not made it clear whether the target company will form synergies with its material handling equipment division or the gear box division.

Andhra Pradesh to submit report on Coastal Corridor

Projects Today reported that Andhra Pradesh government has been asked to submit a report on the infrastructure development in the proposed Costal Corridor covering the districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari district.

An area of 150,000 acres has already been earmarked for the coastal growth corridor project and as part of the first phase 603.58 square kilometer has been identified between Visakhapatnam and Kakinada for investments in various infrastructure projects.

Andhra Pradesh has emerged as one of the prime contenders for the proposed Petroleum, Chemical and Petrochemical Investment Region project which is expected to attract an investment of INR 3,43,000 crore. The other states that evinced interest are Gujarat, West Bengal, Karnataka, Orissa and Tamil Nadu.

Sasan and Mundra UMPP to be fully commissioned by 2013

BS reported that the two 4,000 MW each ultra mega power project at Sasan in Madhya Pradesh, set up by Reliance Power and at Mundra in Gujarat, developed by TATA Power, are likely to be fully commissioned by 2013.

Reliance Power, has committed to the union ministry of power and Central Electricity Authority to advance the commissioning schedule of Sasan UMPP by 3 years. The project, with captive coal mines, was scheduled to be commissioned between May 2013 and April 2016 as per the power purchase agreement. Reliance Power is likely to achieve financial closure for the Sasan project by October 2008.

Reliance Power, has committed the government to advance the commissioning of its first unit by 16 months to December 2011, as against May 2013 as per the PPA. The second unit will come after three months in March 2012.

Meanwhile, TATA Power had achieved financial closure for the Mundra project during April 2008. The first of Mundra's six units are likely to be commissioned by September 2011 and the entire project is slated to take off by March 2013. Mundra UMPP is also ahead of earlier schedule by 11 months for the first unit and by 17 months for the project commissioning.

Jharkhand to remain power deficient state for 4 year – Report

Mr BM Verma chairman of Jharkhand State Electricity Board said that the state would remain a power deficient state for at least the next 4 year and that the board had no choice but to buy power.

Mr Verma, however, said that the situation would improve if the Tenughat power project increased its capacity to 230 MW by the end of May 31st 2008. He added that the much awaited Dumka sub grid would start functioning by the end of October 2008.

Meanwhile, Mr Stephen Marandi deputy chief minister of Jharkhand said that the government is concerned about the power position in the state. He added that his government decided to construct an 800 MW power plant at Ormo Pahari Tola in Amrapara block of district with the supporters of two private companies.

Mr Marandi added that "More than 700 million tonnes of coal has been detected in the Orma Pahari region out of which the Jharkhand would use 437 million tonnes of the coal for the production of power."

Major cement firms plan entry into RMC

BS reported that, barely a fortnight after the French cement major Lafarge acquired L&T Concrete, the ready mix concrete business of Larsen & Toubro and several domestic cement players have shown interest for foraying into ready mix concrete business. Binani Cement, Shree Cement and Dalmia Cement are among the new players who have plans to get into RMC business in 1 to 5 years.

Mr Vinod Juneja MD of Binani Cement said that "We are studying the viability aspect and hope to get into it in the next 18 months. It has a good future in India and we plan to foray organically with our own set up." He added that it already has RMC unit at its Dubai plants. So with that expertise it would be easier for it to start own RMC business in India.

Mr T Venkateshan CEO of Dalmia Cement said that "RMC has a long way to go in the country and we may foray into it in a year's time." He added that demand for RMC is everywhere in India.

Mr KC Birla CFO of UltraTech said that "We are setting up a new RMC plant every fortnight." He added that it has plans to take the number of its RMC units almost to 100 in the next couple of years.

Mr HM Bangur CMD of Shree Cement said that "The RMC market will take time to mature in India. Unless a company has a countrywide presence, it is difficult to compete. Let the market mature then in the next 5 years we will set up RMC plants."

Mr AK Saraugi CFO of JK Cement said that "We have to study and explore possibilities how to go ahead with RMC. But any such initiatives would come only after completing our new cement plant in Karnataka."

At present, there are over 200 RMC plants spread across India with southern region housing more than half of them.

1st unit of Krishnapattnam UMPP to start by March 2012

FE reported that Reliance Power has proposed to bring on steam the first 800 MW unit of the 4,000 MW Krishnapattnam ultra mega power project in Andhra Pradesh by March 2012, a year before the earlier plan of September 2013.

Officials at Reliance Power said that "It will make all efforts to advance the commissioning of the first unit well before 68 months since the transfer date of January 29th 2008 and complete the project construction in 93 months. However, the first unit can be commissioned by March 2012 as it will be able to award the boiler turbine generator contract in next 2 to 3 months. It has already awarded engineering procurement construction to Reliance Infrastructure."

Reliance Power sources said that Andhra Pradesh government has so far handed over 70% of the 2.625 acres required. Also, it would implement a relief and rehabilitation package for 175 project affected families.

Maytas Infra bags EPC contract from Gupta Energy

Maytas Infra Limited recently announced that it has won an engineering, procurement and construction contract worth INR 6.5 billion from Gupta Energy Private Limited for India’s first washery reject coal based power plant.

Maytas Infra said that the 120 MW projects, to be set up in the Vidarbha region of Maharashtra, will be completed in 2 stages. The first 60 MW will be completed in 20 months, while the second 60 MW phase will be completed in 22 months.

Mr PK Madhav CEO of Maytas Infra said that "We are extremely proud to be working on this pioneering washery reject coal based power plant. We at Maytas regard this as a great achievement to have been chosen from among major competitors for this prestigious project. This is a new kind of technology being adopted by us and it reinforces the fact that we are leaders in our chosen domain. This project will also see the highest efficiency, high standards of safety, and will meet the best environmental norms."

Maytas Infra has undertaken projects in buildings and structures like the Byrraju Foundation, Singapore Class Township and Maytas Hill County in Andhra Pradesh.

Bhuwalka inks JV with Soul Space Realty for Bangalore

It is reported that Bhuwalka Steel Industries Limited has entered into joint development agreement with Soul Space Realty Limited pursuant to the MoU on November 22nd 2007 for joint development of Bangalore property, where presently a TMT mill is situated.

As per the joint development agreement, the Bangalore property measuring more than 9 acres shall be developed by Soul Space Realty Limited for commercial and retail purpose.

As per present guidelines, about 1.3 million square feet area may be built up and 40% of the same shall accrue to the company and 60% shall be retained by the developer. This will result in unlocking value of assets in the company. The value of property accruing to the company after the development will be about INR 125 crore and the company expect a rental income of INR 12 crore per annum in future.

The developer shall also pay interest free refundable deposit of INR 11.50 crore to Bhuwalka Steel, which will be refunded at the time of handing over of developed area. Of this amount, it had already received INR 8 crore.

BHEL and Ansaldo in race for NLC boiler supply

BL reported that Bharat Heavy Electricals Limited and Italian power major Ansaldo are in the race for supplying boilers to Neyveli Lignite Corporation’s Tuticorin project. The value of the order would be around INR 1,300 crore.

As per report, a JV of Neyveli Lignite Corporation and Tamil Nadu Industrial Development Corporation is investing INR 4,950 crore in the 1,000 MW, coal fired thermal project.

The value of boilers and turbines for the project works out to around INR 2,200 crore. NLC invited expression of interest for each equipment. BHEL was the sole respondent for supplying the turbines, whose value would be around INR 900 crore.

Mr S Jayaraman CMD of Neyveli Lignite said that the project would not use supercritical boilers, which, though costlier, are said to be more energy efficient. He added that the Tuticorin project is NLC’s first foray into coal fired power plant and as such the company would not like to go in for the super critical.

Kirloskar Brothers bags order from NPCIL

Kirloskar Brothers received contracts from Nuclear Power Corporation of India Limited for design, engineering, manufacture, assembly, test, shop painting, packing, forwarding and guarantee of condenser cooling concrete volute pumps, auxiliary sea water vertical turbine pumps, electro chlorination plant, traveling water screens, stop log gates and sea water pump house and electro chlorination building and associated structures for sea water pump house package with a contract value of INR 66.13 crore.

Civil works like design, supply, construction, finishing and handing over of sea water pump house and electro chlorination plants building and associates structures with a contract value of INR 33.11 crore.

Nippon Steel sees market stronger than expected

Reuters cited Mr Akio Mimura chairman of Nippon Steel Corp as saying that the demand in the global steel market has been stronger than expected and reiterated that its earnings forecasts for this business year were conservative.

Mr Mimura told a small group of reporters that "Generally speaking the market is much better than we expected adding that there have been no signs of a buildup of inventories in China or the United States.”

Nippon Steel last month forecast a 34% fall in group pretax recurring profit to JPY 370 billion (USD 3.56 billion) for the year to March 2009, hit by soaring raw materials prices.

Corus to hike plate and structural sections price

Corus Construction & Industrial has announced increases in the price of UK reversing mill plate and structural sections.

The release added that “Corus will also be raising prices for structural sections by EUR 90 per tonne. This change will apply to all structural sections despatched from August 3rd 2008. The price increases are a direct consequence of high global demand for steel driving dramatic increases in the cost of raw materials.”

The release said that “Global demand for reversing mill plate continues to be strong in all plate consuming market sectors. At the same time all steel manufacturers, including Corus, continue to incur significantly higher costs for raw materials and energy. As a consequence, Corus will be increasing prices for reversing mill plate by EUR 60 per tonne effective to all dispatches from June 29th 2008.”

European rebar and wire rod prices continue to surge

It is reported that rebar and wire rod price in Southern Europe has continued to raise by EUR 100 per tonne compared to it was in the beginning of May. The main reason is due to soaring global scrap price.

Current rebar price is prevailing at EUR 750 to EUR 850 per tonne and the wire rod price is about EUR 750 to EUR 820 per tonne. Now with the price rising further, buyers have stopped purchasing to wait and see what will happen.

(Sourced from YIEH.com)

Sumitomo receives major order for super high end boiler tubes

Sumitomo Metal Industries Ltd together with Sumitomo Corporation has received an order for over 3,000 tonnes of super high end boiler tubes from Hitachi Power Europe GmbH a subsidiary of Hitachi Ltd. These TP347HFG*1 steel tubes are to be used in the heat exchangers of boilers at coal fired thermal power plants* in South Africa.

Order Details
1. Products: Super high-end boiler tubes, "TP347HFG"
2. Quantity: Over 3,000 tons
3. Delivery: From July 2008 to July 2010

In light of rising demand for reductions in the emission of carbon dioxide and resource saving, thermal power plants have been required to achieve high thermal efficiency in power generation in recent years, and super critical or ultra super critical*2 boilers have become the mainstay. Accordingly, demand for super high end boiler tubes has been rising rapidly.

The TP347HFG products that were ordered this time will be used as tubes in heat exchangers, where the highest temperatures and pressures are borne in such boilers.

In order to meet demand growth, Sumitomo Metals completed a 50% increase in production capacity for super high end boiler tubes from 12,000 tonne per year to 18,000 tonne per year at the Pipe & Tube Company's Steel Tube Works in Amagasaki, Hyogo Prefecture in October 2007.

Hyundai Steel restarts electric furnace

South Korea's second largest steelmaker, Hyundai Steel has resumed its idle 70 tonne electric furnace at Incheon on May 13th 2008

The move was made to meet the growing demand of the H beam. The furnace has been closed in December 2002, which has annual production capacity of 600,000 tonnes.

There are six furnaces at the Incheon plant, with crude steel production of 4.1 million tonnes. In addition, Hyundai Steel also plans to restart a 50 tonne electric furnace.

(Sourced from YIEH.com)

Metso acquires the LignoBoost AB

Metso and STFI Packforsk AB announced that they have signed a purchase agreement regarding the shares of Lignoboost AB a Swedish research company. The transaction includes all the intellectual property rights as well as the LignoBoost brand and its related know how. Personnel or facilities are not included in the transaction.

In addition Metso and STFI Packforsk have signed a research and development agreement related to LignoBoost technology. Both agreements come into force with immediate effect. The value of the transaction will not be disclosed. The acquired company will become part of Metso Power, a part of Metso Paper business area.

The acquisition supports Metso's profitable growth strategy and opens an interesting biofuel business opportunity within pulping processes.

LignoBoost represents a technology that extracts lignin, a component of natural wood from the chemicals used in the pulping process. The extracted lignin can be used as biofuel replacing coal and oil ie in pulp mill's power generation or in lime kilns. LignoBoost gives Metso's customers the possibility to increase the capacity of a pulp mill and turn pulp mills into significant energy suppliers. At the same the extracted lignin is also of interest for other process industries as a raw material for plastics, coal fibers and chemicals.

The LignoBoost technology has proven its technical maturity over several years of research and laboratory testing as well as during operation in an industrial size demonstration plant integrated into the pulping process of Nordic Paper Bäckhammar, Kristinehamn, Sweden. The demonstration plant will remain in the possession of STFI Packforsk.

Mr Lennart Ohlsson president of Metso Power said that "We see great value in getting a process with such high future expectations. It complements our present solutions offering in an excellent way. LignoBoost has the best chances of being further commercialized for industrial applications in a global company such as Metso.”

ArcelorMittal hikes beam prices

ArcelorMittal has announced to increase its base price for beams and sections for the third quarter, because of escalated raw material, energy and logistics costs.

According to ArcelorMittal, the base price will be raised by EUR 40 per tonne. It said that for the second quarter it has increased by EUR 30 per tonne.

Scrap surcharge has risen by EUR 200 per tonne since January for beams and sections.

US weekly crude steel production increase by 0.8%YoY

American Iron & Steel Industries reported that in the week ending May 24th 2008, US’s raw steel production was 2.140 million net tons while the capability utilization rate was 89.7%. Production was 2.121 million net tons in the week ending May 24th 2007, while the capability utilization then was 88.4%. The current week production represents 0.8% increase from the same period in 2007.

Production for the week ending May 24th 2008 is down 0.2% from the previous week ending May 17th 2008 when production was 2.146 million tons and the rate of capability utilization was 89.9%.

Adjusted YTD production through May 24th 2008 was 43.876 million tons at a capability utilization rate of 88.8%. That is a 3.1% increase from the 42.520 million tons during the same period last year, when the capability utilization rate was 85.1%.

District wise production for the week ending March 15th 2008
1. Northeast Coast: 182
2. Pittsburgh/Youngstown: 212
3. Lake Erie: 84
4. Detroit: 93
5. Indiana/Chicago: 512
6. Midwest: 264
7. Southern: 695
8. Western: 98
(In thousands of net tons)

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

Tung Ho Steel orders mechanical equipment from SMS Group

Taiwan’s Tung Ho Steel Enterprise Corporation announced that it has ordered mechanical equipment from SMS Group for a total amount of EUR 44.763 million.

The mechanical equipment includes electric ovens and refining ovens with a total value of EUR 14.943 million, continuous casting machines with a total value of EUR 6.760 million as well as rolling machines with a total value of EUR 23.060 million.

Kobe Steel to construct testing facility for compressors

Kobe Steel Ltd announced that it has begun construction of a large capacity compressor testing facility at its Takasago Works at Hyogo Prefecture in Japan. Kobe Steel plans to invest JPY 4.1 billion in the new facility, which will go into operation in April 2010.

The new facility will be able to test large capacity rotating machinery, mainly turbo compressors, with variable speed motors rated up to 20,000 kW. Kobe Steel's testing capacity will increase by 50% in comparison to the current level. Testing facilities are essential to confirm the design performance of compressors, a major product of Kobe Steel's Machinery segment. The new testing facility will enable Kobe Steel to enter the large capacity turbo compressor market.

Kobe Steel anticipates that numerous projects in the future, both in Japan and overseas will need large turbo compressors. Two examples are oxygen plants in steel mills and the manufacturing of liquid crystal displays. Kobe Steel estimates that it currently has a 10% share of the world market for the integral gear variety of turbo compressors. The company anticipates that by expanding into large capacity compressors, it will be able to gain a 20% share of the integral gear compressor market in the future.

In the Kobe Steel Group's Machinery segment, business has been brisk from the oil refining, petrochemical and energy industries. In recent years, Kobe Steel has been developing the global market including the United States, Europe, China and the Middle East. It has also been supplying compressors of higher pressure and with larger capacities. Owing to strong demand, Kobe steel doubled total compressor sales to 700 billion yen between fiscal 2002 and fiscal 2007. Sales in fiscal 2008 are also anticipated to increase further.

US Steel appoints Mr Kutka as senior VP

United States Steel Corporation announced two executive appointments in the company's strategic planning and commercial organizations.

Mr James Kutka Jr has been named senior VP strategic planning & business development. He will report to Mr Surma and join US Steel's Executive Management Committee. In his new role, Mr Kutka will oversee the development of initiatives that will support the company's business strategy.

Succeeding Mr Kutka will be Mr Joseph R Scherrbaum Jr who has been named VP sales & customer service, North American flat roll operations. He will report to Mr David H Lohr senior VP North American flat roll operations. The changes are effective June 1st 2008.

Mr John P Surma chairman & CEO of US Steel said that "The strategic planning and business development functions are key components of steel companies around the world as our industry continues its dynamic evolution. Mr Jim's broad range of experience during his more than 40 years of service with our company will be a great asset to our efforts in this critical area."

South Korea takes measures to ease fuel costs

Yonhap reported that the South Korean government will expand fuel subsidies for the country's underprivileged to ease the burden of soaring oil prices.

South Korean government officials said that Seoul has been seeking to overhaul its energy policy in the face of a rise in oil prices which have been forcing the government to come up with measures to buffer their impact on the economy and local consumers especially those in the low-income bracket.

In a meeting presided over by Mr Han Seung soo PM of South Korea high ranking officials agreed to extend the provision of current oil subsidies for cargo trucks and introduce the so called energy voucher system.

Mr Han said that "Oil prices are climbing fast much faster than expected. We must come up with specific measures to relieve the ensuing burden on the underprivileged, who have been suffering in particular."

The government plans to finalize the measures after discussing them with the incoming parliament whose term begins Friday.

Oil costs rocketed to a record above USD 135 a barrel last week, double the cost a year ago and that of liquid natural gas also rose more than 20% during the same period. South Korea depends on imports for most of its energy consumption as the world's fifth largest oil buyer.

Metso opens a new research center in Finland

Metso Minerals announced that it has inaugurated a new Research Center in Tampere. Activity at the new center will further strengthen Metso’s global knowledge base in crushing and screening technology, and research and testing services which benefit global construction and mining markets will be on offer.

Located in southern Finland, the new center includes a state of the art test facility with a fully equipped rock laboratory for analyzing rock samples. Testing routines will enable Metso Minerals to design crushing and screening processes that are a precise match for customer needs in terms of process capacity, energy efficiency, end-product characteristics and yield. As well as enhancing Metso Minerals’ research and development activities, the new center will also shorten new-product development lead-times.

First announced in 2006 as part of a larger expansion plan, the Metso Minerals Research Center will eventually employ 20 people. The driver behind these investments is strong global demand for efficient and environmentally sound crushing and screening solutions and the overall level of activity in the construction and mining markets.

The new Research Center represents an investment totaling some EUR 3 million and is the largest single investment that Metso Minerals has made in research and development to date. The ability to provide the construction and mining industries with new, efficient crushing and screening solutions is becoming of increasing importance.

Peru national union mulls new strike call

BNamericas reported that Peru's national mining and metalworkers federation FNTMMSP is contemplating calling a strike following weeks of congressional debates over reforms demanded by the union.

A source with the federation told BNamericas that congress has been reviewing legal amendments and additions on outsourcing, participation in profits and pensions for mine workers in the past weeks in what the federation considers stalling.

The federation suspended a call for a nationwide strike on May 12 to give the congress time to pass the reforms in question but now said that it feels lawmakers are taking too long.

The union source said the federation plans to make another call for work stoppage in June.

Japanese exports of CR strip in March

It is reported that Japan exported 302,436 tonnes of cold rolled width strip in March 2008 at an average price of USD 734.7 per tonne. Japan March 2008 export to different countries are

(Volume in tonne)
(Price in USD per tonne)

Dowa Metanix to expand output by 40% by 2010

JMB reported that Dowa Metaltech group's rolled copper maker, Dowa Metanix expends around JPY 2 billion for new pickling line and facility renewal in fiscal 2008 started April.

As per report Dowa Metanix expands the monthly output capacity by 40% to 1,200 tonnes in fiscal 2010. The firm tries to improve the productivity to expand the supply for connector pin and semiconductor lead frame

US Steel elevates Mr Schultz and Mr Zoyko in finance

United States Steel Corporation announced two executive appointments in the company's accounting and finance organizations.

Mr Larry G Schultz has been named senior VP & controller. He will continue to report to Mr Haggerty executive VP and CFO of US Steel and Mr Gregory A Zovko has been appointed VP accounting. He will report to Mr Schultz. The changes are effective June 1st 2008.

Mr Schultz joined US Steel in 1973 as an industrial engineer at Pittsburgh headquarters and held a series of accounting and planning posts there and at nearby Mon Valley Works facilities before being named director corporate financial analysis in 1986. He was appointed comptroller of USX Engineers and Consultants, Inc in 1987.

Mr Zovko in his new role will oversee accounting functions for all of U S Steel's business units, including North American flat rolled and tubular as well as European operations and will also direct financial analysis activities. He joined the company in 1983 as a management associate in the accounting and finance department at its Mon Valley Works near Pittsburgh. During the next 14 years, he progressed through a series of increasingly responsible positions in corporate audit and accounting before being named controller for Mon Valley Works' Clairton Plant in 1997.

Mr Haggerty said that "Our company's growth in recent years in the United States, Canada, Slovakia and Serbia and other major corporate initiatives have created some significant challenges and opportunities for US Steel's accounting and finance organizations. Mr Larry and Mr Greg have both made important contributions to the corporation's success during these times of tremendous change and I am pleased to recognize them with these appointments."

ArcelorMittal announces help for victims of Myanmar cyclone

ArcelorMittal announced that it is donating EUR 100,000 to the “Save The Children” NGO to help the victims of the Myanmar disaster. The donation to Save the Children is being made by the ArcelorMittal Foundation.


Save The Children has been recognized by the United Nations as the number one responding agency in this emergency. The organization has managed to reach over 160,000 people already.

Mr LN Mittal chairman & CEO of ArcelorMittal said that "On behalf of ArcelorMittal, I would like to express my deepest sympathies to all the people affected by this disaster. As a responsible corporate citizen, ArcelorMittal is committed to contribute to the urgent relief efforts underway in Myanmar."

The UN estimates that only 500,000 of the 2.4 million people in the worst affected areas have received some form of aid. Nearly half of the survivors are children, which leaves 900,000 in desperate need of help.

AWS appoints Ms Bowling as new director

The American Welding Society, the world’s largest organization dedicated to advancing the science, technology and application of welding announced the appointment of Ms Connie Bowling as director of the AWS Foundation’s Solutions Opportunity Squad Gulf Coast Division within its Welder Workforce Development Program.

Ms Bowling has been working in the welding industry for nearly 10 years in both welding engineering and manufacturing engineering capacities. In this role, Ms Bowling will lead SOS endeavors in the Gulf Coast. The SOS team is made up of new AWS staff individuals who consult with and build strategies for end users and welding educational institutions.

The SOS was created as part of the AWS Foundation’s Welder Workforce Development Program, which was launched in 2006 to contend with the growing shortage of skilled welders in the United States. It is estimated that there will be a shortage of at least 200,000 welders by 2010.

Mr Ray Shook executive director of American Welding Society said that “We are pleased to welcome Ms Bowling to our AWS Foundation and new SOS team. Our Welder Workforce Development Program is one of our most important initiatives, and the SOS team is a critical part of its future success. We are pleased to be able to expand our SOS team and focus on specific regions throughout the U.S. that have a heavy welding industry concentration both in business and education. The strength of this program can mean a brighter future for our industry and thousands of students and other individuals who seek a positive career choice.”

The American Welding Society was founded in 1919 as a multifaceted, nonprofit organization with a mission to advance the science, technology and application of welding and allied joining and cutting processes, including brazing, soldering and thermal spraying.

BlueScope approves AUD 370 million BF No 5 reline

BlueScope steel has been planning to undertake the reline of its No 5 blast furnace at Port Kembla for 3 years and today confirmed that this AUD 370 million project will proceed on schedule.

Mr Noel Cornish CEO of BlueScope steel Australia & New Zealand Steel manufacturing Business said that “Number 5 blast furnace is one of the company’s key assets and has served us well during its current 18 years campaign. The reline project will be a comprehensive overhaul of the facility and will restore the blast furnace to peak operating condition and secure our iron making capacity for many years to come.”

He added that “The reline project is schedule to take 105 days and will take place in the first half of calendar 2009. Domestic external sales are not expected to be materially affected during the project and we have contacted export customers who will be affected and they will make alternative arrangement during the reline period.”

BlueScope has two blast furnaces; No 5 furnace was built in 1972 and currently produces approximately 2.6 million tones of hot metal per year.

Hyundai Mipo wins USD 200 million ship order

Reuters reported that South Korea's Hyundai Mipo Dockyard Co Ltd had won an order worth KRW 205.9 billion (USD 199.9 million) to build two CON RO ships for a European company.

Hyundai Mipo in a filing to the Korea Exchange said that the ships would be delivered by June 30th 2012.

Aceros Arequipa aims 1 million tonnes by Q1 of 2010

BNamericas reported that Peruvian steelmaker Aceros Arequipa is aiming to complete a USD 280 million expansion to 1 million tonne per year from 540,000 tonne per year in the first quarter of 2010.

Mr Mario Munailla marketing manager of Aceros told BNamericas that “Originally the company had planned to complete the expansion in the final quarter of 2009 but long lead times on goods and services from providers has prompted it to consider the Q1 of 2010 as a realistic completion time.”

He said that following the expansion, Aceros Arequipa will fix its eye on a new project to further increase production and take advantage of strong growth in Peru's housing, infrastructure and other sectors in need of steel.

Mr Munailla said that the company does not yet have a specific outline of how much the expansion would provide in tonnage,.

Global HRB spot prices eruption slows down

SteelBenchmarker reported that the US hot rolled band spot price for May 26th 2008 surged by 0.3% to USD 1,158 per ton, FOB the mill for the fourteenth consecutive rise totaling USD 581, world export HRB price rise by 2.6% to USD 1,051 per tonne FOB the port of export, for the twelfth consecutive rise totaling USD 470, Chinese HRB ex works price surged by 1.0% to USD 704 per tonne for the fourth consecutive rise and the Western European HRB surged by 2.8% to USD 1,119 per tonne ex works for the eight consecutive time totaling USD 406


USA
USD 1,158 per metric tonne FOB the mill
Up by USD 4 per tonne from USD 1,154 two weeks ago
Up by USD 598 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 528 per tonne from the recent high of USD 630 on April 9th 2007

China
USD 704 per metric tonne ex works
Up by USD 7 per tonne from USD 697 two weeks ago
Up by USD 234 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 217 per tonne from the previous high of USD 487 on September 10th 2007

Western Europe
USD 1,119 per metric tonne ex works
Up by USD 31 per tonne from USD 1,088 two weeks ago
Up by USD 456 per tonne from the recent low of USD 663 on July 23rd 2007
Up by USD 423 per tonne from the recent high of USD 696 on June 11th 2007

World Export Price
USD 1,051 per metric tonne FOB the port of export
Up by USD 27 per tonne versus USD 1,024 two weeks ago
Up by USD 501 per tonne from the recent low of USD 550 on July 23rd 2007
Up by USD 455 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.

Altri shareholders approve spin off of steel unit F Ramada

Thomson Financial reported that Altri shareholders have approved the spin off of its steel unit F Ramada at a shareholders meeting held Wednesday.

Altri in a statement said that the spin off will allow it to focus on its core pulp and paper business, while the new company F Ramada Investimentos SGPS SA will focus on the steel sector.

The statement added that Altri shareholders will get one F Ramada share for every four Altri shares held.

Previously, Altri said that it expects to release the spin off prospectus in June, with rights seen trading in June/July and Ramada Investimentos shares expected to be admitted to the stock market in July.

Recycle South adds 3 new properties in North Carolina

Recycle South LLC announced the acquisition of three North Carolina companies operating under mutual ownership Cohen & Green Salvage Co, Lumberton Recycling Co and Raeford Salvage Co. Recycle South consisting of the assets of Carolinas Recycling Group and Atlantic Scrap & Processing was itself recently acquired by the OmniSource subsidiary of Steel Dynamics Inc.

The release said that “The Cohen & Green operations are based at Fayetteville in North Carolina and are located in proximity to two of Recycle South’s five shredding facilities. All management and existing employees will remain at all three locations.”

Mr Marvin Siegel Recycle South chairman & CEO said that “The Cohen & Green companies have operated successfully with a rich tradition in southeastern North Carolina and we are pleased to have these facilities and their employees as part of the Recycle South family.”

Mr Michael Green CEO of the acquired companies said that “We believe our future with Recycle South will enhance the service we provide to our suppliers and customers and will provide long term opportunities to our employees in an ever changing industry.”

The acquired companies were represented by Dresner Partners a Chicago based investment banking firm in a transaction with undisclosed terms.

Recycle South now operates 22 scrap metal processing facilities in the Carolinas and Georgia with approximately 700 employees. It bills itself as one of the largest metal recycling companies in the Southeast with annual shipments of approximately 1.5 million tons of ferrous scrap and 250 million pounds of nonferrous scrap per year.

ASX steel index registers 49% annual average growth rate

AHN reported that the American steel industry is sturdy and has recovered in less than 10 years. The rise once again of the iron and steel industry was attributed to lesser manpower cost, high demand for steel products in the international and local markets, consolidation of major players, the weaker US currency and the tripling of steel prices in the past five years. Notwithstanding the economic slump across the nation, the Steel Index of the American Stock Exchange jumped by an annual average growth rate of 49% from 2003 to 2007. For the same period, Standard and Poor's 500 stock index showed an average yearly increase of 13%.

The report said that a proof of the industry's recovery is the rapid expansion of steel plants and high employment rates in the sector. Among the new steel facilities that will soon rise are a USD 4 billion plant in Alabama owned by German steel manufacturer ThyssenKrupp which will open by 2010 and hire 2,700 steel workers, a USD 2 billion plant in Louisiana owned by Nucor and the purchase by Russian firm Severstal of the Sparrows Point Steel plant near Baltimore and its infusion of USD 500 million to modernize the plant.

In 2002 the industry was on the verge of collapse due to bankruptcies and steel imports that flooded the country. Over 400,000 steel workers became jobless since the 1980s until the early part of the new millennium, while 40 steel companies folded up due to financial troubles. Latest statistics from the American Iron and Steel Institute said for March 2008, 9.158 million net tons of steel products were exported to other nations. It was a slight decline, though, by 1.9% when compared to March 2007 data and by 0.2% set beside February 2008 data.

Mr Michael Locker president of Locker Associates a steel consulting firm told the Washington Post that "There hasn't been this much building in 25 to 35 years. We are in a new period here. I don't see us going back to the old period of high imports and low prices."

Ms Nancy Gravatt vice president of AISI told the Washington Post that "Today you have fewer but more stronger companies that are able to manage across more volatile conditions more effectively.”

Hyundai Steel offers new cutting ferrous scrap at JPY 71,500 per tonne

JMB reported Hyundai Steel of South Korea increased the offer for Japanese ferrous scrap to more than JPY 70,000 per tonne FOB.

According to Japanese trading firm, the offer is JPY 71,500 for new cutting scrap, which is JPY 3,500 higher than a month ago. However, Hyundai Steel could have trouble to secure scrap when Japanese scrap shipping price from Tokyo bay already reaches around JPY 70,000

Aker Philadelphia starts construction of 8 tankers

Aker Philadelphia Shipyard announced that it has officially begun production on the eighth tanker in a series of twelve. In the series, four have been delivered and three are currently under construction at the yard. The twelfth vessel is scheduled for completion by early 2011.

As part of the building methodology utilized for this series, the first plates cut on the yard’s state of the art plasma cutter will be assembled into the engine room of the 600 foot long vessel. All together, 45 sections, weighing up to 650 tonnes are fabricated and assembled in Philadelphia to complete the 46,000 DWT tanker.

The release said that “After delivery from Aker Philadelphia Shipyard, the tanker will be converted to a shuttle tanker for use in the deepwater US Gulf of Mexico and will be the first Jones Act vessel to serve this new market with strong growth potential. Shuttle tankers transport crude oil from deepwater areas where there are no available pipelines. When completed, the vessel will be sold to the yard’s sister ship owning company, Aker American Shipping and in turn leased to OSG America.”

CSC to raise prices by 17.8% in Q3

Reuters reported that Taiwan’s China Steel will lift its domestic steel prices by an average of 17.8% in the third quarter from the second quarter to reflect higher raw material prices and stronger demand. The raise, missing the 20% rise expected by investors, comes after some bigger rivals also lifted prices.

China Steel, which has annual capacity of 11 million tonnes will raise its prices, including those of steel plates, by TWD 4,310 per tonne with an average rise of 17.8% across its range of products

Mr LM Chung an executive vice president of CSC said that "The global supply chain has been in serious shortage of raw materials for a long time. It seems that will not alter its course any time soon.”

Mr Kevin Li vice president of Shin Kong Asset Management Co said that "China Steel will be able to pass on higher raw material prices to its downstream clients, as demand remains solid.” He added that Shin Kong's mutual funds have no plans anytime soon to reduce their holdings in China Steel, on expectations that global steel prices will extend their upward trend this year.

EcoSteel to build a rebar mill in Mississippi

Monroe County Journal reported that a 300,000 tonne per year concrete steel reinforcing bar mill is being planned at Armory in Mississippi by start up company EcoSteel Recycling led by Mr Louis Colatriano former Chaparral Steel executive. Construction on the plant is expected to begin by year’s end and will take about 18 months to complete.

The Journal said that EcoSteel Recycling has applied for environmental permits to construct a USD 150 million rebar mill on an 80 acre parcel in the Amory Waterway Industrial Park. The journal added that the company plans to take advantage of a federal law that mandates use of domestic rebar in federal highways and bridge infrastructure projects.

Mr Colatriano said that local media that it will then take another18 months after that to ramp up the facility to full production and EcoSteel Recycling’s target market will be the Katrina rebuilding effort and other construction projects within a 350 mile radius of Amory.

Tube City opens trading offices in Singapore and Belgium

Tube City IMS announced that its Tube City Division has opened its first trading offices in Singapore and Gent in Belgium and has expanded its representative trading offices at Jakarta in Indonesia and Beijing in China.

Mr J David Aronson executive vice president Outsource Purchasing of Tube City Division said that all four offices are in prime locations from which the company can grow its markets in the Asia Pacific region and Europe. He said that “We are excited to be able to serve our customers in these important markets. All four regions’ economies are growing, and each location offers opportunities to expand our outsource purchasing and business initiatives.”

The release added that “Mr Hideyuki Nishi Nishizawa who has been instrumental in orchestrating the company's international trading growth in the Asia Pacific region, has been promoted to Managing Director of Asia, according to the press release. He will be relocating from the United States and will be responsible for developing, managing and expanding the company’s Asian trading operations from the newly opened Singapore trading office. Mr Luke Fang and Mr Abby Yao have joined the company’s Beijing representative office as traders under the leadership of Mr Steven Liu chief representative. Mr Fajar Nafies has joined the expanding Jakarta representative office as a trader under the leadership of Iman Surachman chief representative.”

Mr Alain Eeckman has joined the company as managing director of Europe and will be responsible for developing, managing and expanding the company’s European trading operations from the newly-opened Belgium trading office. Eeckman has more than 15 years of experience in logistics and steel trading. Prior to joining the Tube City IMS, he worked at Trade Arbed/Considar and ArcelorMittal.

Mr Aronson said that “We are delighted to welcome our new traders to the team Hideyuki, Alain, Iman, Steven, Fajar, Luke and Abby collectively provide a wealth of experience and knowledge in the international marketplace. Their leadership and existing relationships with leading worldwide steel producers will help facilitate the Company's expansion into these important regions.”

Sumitomo receives order for SG tubes from China and USA

Sumitomo Metal Industries Ltd together with Sumitomo Corporation has received an order for steam generator tubes*1 to be used in the AP1000*2 an advanced nuclear reactor developed by Westinghouse Electric Corporation of the USA at Sanmen Unit 1 and Haiyang Unit 1 in China. This is the world's first order for SG tubes to be used in the AP1000.

Sumitomo Metals has also received a preliminary order for SG tubes to be used in the AP 1000 in the USA namely, Vogtle Nuclear Power Plant Units 3 and 4. These SG tubes will be supplied to DOOSAN Heavy Industries & Construction in South Korea for assembly into steam generators.

Order Details (China and the USA.)
(1) Product: SG tubes for AP1000
(2) Quantity: Approximately 750 tons
(3) Amount: Over 10 billion yen
(4) Delivery: Fiscal year 2009 for two AP1000 reactors in China

Sumitomo said that “Triggered by worldwide growth in electricity demand and the need to prevent climate change there has been a surge in the construction of nuclear power plants. In this environment, demand for SG tubes is expected to exceed the production capacity of the only three suppliers in the world, namely, Sumitomo Metals, Sandvik AB and Valinox Nucleaire.”

Bending radians at SG tubes are becoming larger, along with the trend that the advanced nuclear reactors are larger in size, in order to improve economic competitiveness and safety. In response to this situation, Sumitomo Metals decided to invest in the remodeling of production equipment for SG tubes and the expansion of its production capacity at the Pipe & Tube Company's Steel Tube Works in Amagasaki, Hyogo Prefecture. This investment was recently initiated, and Sumitomo Metals' production capacity of SG tubes will be raised by approximately 30%.

Ruukki launches solution for msingle storey construction in Czech Republic

Ruukki introduces in the Czech Republic its new solutions package that simplifies and makes the design and construction of commercial and industrial buildings more efficient. The innovative solution includes fast design, manufacture and installation of foundation, steel frame and envelope structures for premises suitable.

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 of 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 Ladislav Flórián sales director 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 the erection of industrial halls is easy with our integrated and prefabricated structures.”

Ruukki has a strong presence in the Czech Republic providing solutions for customers in the construction and engineering industries. In Ostrava, Ruukki has production of roofing sheets, low profiles, lightweight purlins and liner trays. Ruukki has customer service points also in Brno and Prague, where main office functions are also located. Ruukki currently employs about 150 people in the Czech Republic.

Malaysian builders calls for liberalization of steel products

Bernama reported that the Master Builders Association Malaysia has urged the government to consider liberalizing all seven steel bar products under HS Code 7214 and all four wire rod products under HS Code 7213.

Master Builders Association Malaysia in a statement said that although the removal of ceiling price for steel bar from May 12th 2008 is seen as a milestone for the construction industry, only two types of steel bars classified under the HS Code 7214 were liberalized.

It said that "Master Builders Association Malaysia appealed to Domestic Trade and Consumer Affairs Ministry, Ministry of Finance, International Trade and Industry Ministry and Construction Industry Development Board regarding the above situation.”

Mr Patrick Lim president of Master Builders Association Malaysia said that the liberalisation of steel wire rod was also crucial as it was mainly used in the construction of low and medium cost housing and pre fabricated components under the industrialised building system. He added that the government should also consider setting up a national stockpile for steel bar to ensure price stability.

Mr Lim said that "This is because the recent initiative to remove the ceiling price for steel bars has benefited the steel millers instead of the construction industry as steel bars have seen upward price increases and are selling at around MYR 4,000 per tonne.

He added that "The association anticipated that steel millers will have to provide the best price possible to compete, instead of having a monopoly here after the announcement of the liberalization. However, this did not happen.”

Mr Lim urged the government to consider studying the possibility of implementing a complementary policy, like in China and India where they imposed a deterrent export tax for all billets and steel bars which has resulted in immediate lower price and increase in local supply there.

Steel prices in Egypt have been steadily increasing

Al Ezz Dekheila Steel, a subsidiary of Egypt’s dominant Al Ezz Steel Rebars, reiterated its ex factory price for a tonne of steel this week and set formal limits for the prices dealers and retailers can charge, in keeping with a new set of rules advanced by the ministry of trade & industry this week.

Al Ezz reported its ex factory price at EGP 5,700 per tonne, in keeping with figures released earlier this month, and set price caps at EGP 5,890 for distributors and EGP 5,990 per tonne for retailers.

Mr George Matta marketing director at Al Ezz Steel said that he expected resellers to respond quickly. He added that "The regulations are very clear. Those who do not comply will be reported to the ministry."

Mr Matta said that the margins garnered by retailers and, in particular, wholesalers were becoming really excessive. He said the sector has grown up by 25% faster than over the same period last year, and that concerns of higher prices were encouraging hoarding, which flung costs into an upward spiral. He added that "The people who were really raising the price were reacting to supply and demand dynamics. But we have to put a cap on these prices."

(Sourced from Daily Star Egypt)

Zamil Steel unveils new technology for steel plates folding

Zamil Steel has uncovered its new technology in the steel works industry by revealing the first new machine in the local and regional markets with the ability to fold the steel plates with thicknesses of up to 285mm. This new technology will open new pathways in terms of techniques and applications, as well as products and processes of Saudi factories.

Mr Adnan Al Mansour president of Zamil Steel said that the industrial sector in the Kingdom has played a significant role in this new development by supporting Saudi exports through the establishment and operation of local factories in compliance with global standards.

He added that "The new machine provides a strong impetus in the steel works sector to ensure new applications during the next stage, as with this machine we are able to roll up steel plate thickness up to 200mm, with more than 3 meter width and 3 meter diameter, using cold rolling process."

He further added that "Such an ambition has been realized thanks to the understanding, perception and awareness of Saudi industrialists who emphasized the necessity of devoting the necessary resources, material and experience to result in a radical shift of the technical concepts and technology by pumping billions of riyals into research and development. The end result can be seen in the development of several products that were deemed to be technologically impossible just a short time ago."

Aramco 2007 daily oil output down by 4.5% YoY

Khaleej Times reported that Saudi Aramco's oil output for 2007 fell by an average 400,000 barrels per day from 2006, after Saudi Arabia cut output in line with OPEC agreements.

Aramco's total crude oil exports reached about 2.41 billion barrels in 2007 down by 5.1% YoY from 2.54 billion barrels it exported in 2006. Average daily oil production reached 8.5 million barrels per day in 2007, resulting in a total production of 3.11 billion barrels for the whole year as against 3.25 billion barrels in 2006.

Aramco's gas production totaled 2.92 trillion cubic feet in 2007 down from 3 trillion cubic feet in 2006 and natural gas liquids production slipped to 394.6 million barrels from 399 million barrels in 2006. With 2 new finds, Saudi Arabia maintained its recoverable crude oil and condensate reserves unchanged at 259.9 billion barrels in 2007.

Refined products output in 2007 declined to 571.06 million barrels from 595.66 million barrels. Aramco exported 136.01 million barrels of refined products in 2007 down from 183.96 million barrels in 2006.

GCC to sign FTA with EU by end of 2008 – Report

Mr Ahmad Abdullah Al Mahmood chairman of GCC said that it hopes to sign a long awaited free trade agreement with the European Union by the end of 2008.

Mr Abdullah Al Attiyah secretary general of GCC said that "According to what the experts told us, at the end of June 2008 I think they will find a solution and it will be signed by the end of 2008. I hope so. We would like to see this negotiation on the FTA concluded soon."

Ms Benita Ferrero Waldner external relations commissioner of EU said that the two sides had made very good progress and were now closer than ever to a conclusion. She added that "We have to work closer together to reach a conclusion."

Earlier this year Mr Al Attiyah expressed frustration at the length of time it had taken to negotiate the agreement, blaming endless conditions by the European bloc. He complained that while EU companies won very big contracts in the Gulf Cooperation Council countries, they could not export their products to European markets.

Port of Salalah preparing for new port handling equipment

Khaleej Times reported that Oman's Salalah port is preparing for new port handling equipment, including 4 super post panamax gantry cranes for its 2 new 18 meter depth berths.

The new cranes will complement the current 17 and increase the port's capacity significantly. These cranes can operate the largest vessels in the world with their ability to reach containers stacked 23 across on deck. The investment will also include 4 mobile harbor cranes, 10 new spreaders that allow twin pick capability and 11 additional rubber tyred gantry cranes.

Mr Gary Lemke CEO of Port of Salalah said that "Since its inception Port of Salalah has always strived to be an industry leader in innovation and port development. To ensure continued success we must make necessary long-term investments. Our business growth makes it important for us to increase available capacity in order to maintain our consistently high quality service to our customers as our throughput continues to increase."

With the opening of the 5th deepwater berth in May 2007 and the recent completion of berth six, the port project that the annual throughput will increase by about a third on delivery of the new equipment.

Cement production shifting to East Asia –Report

According to a study report by Prime Holding, North America and Western Europe remain among the world's largest cement producers but the focus of production is shifting to the Middle East and East Asia due to their aggressive construction activities.

As per report, protracted negative fallout from the credit crunch on the real estate markets of the West could well exacerbate the change in cement market dynamics further over the short to medium term. Exporters in East Asia, India, Pakistan and Egypt are capitalizing on cement shortages across the GCC. East Asia is currently the world's largest producer and consumer, accounting for 58.8% and 56.9% of the global aggregate, respectively.

The report said that "It is also positioned as one of the most efficient cement producing regions and traders worldwide with utilization rates of 94% in 2006 and a 48.2% market share of world exports."

While China dominates the region's production and consumption figures, other producers including Indonesia, Japan and Thailand are increasingly establishing a footprint on the world cement stage. The region also has a direct effect on the cost of cement production. China's cement market prices have risen from USD 58 per tonne in 2005 to USD 70 per tonne in late 2007.

East Asia nevertheless remains one of the world's most cost effective producers due to economies of scale achieved through large-scale mass production and access to cheap labor.

In India the unprecedented increase in construction activity catalyzed by the ongoing real estate boom has pushed cement prices up from less than USD 62 per tonne at the end of 2005 to more than USD 75 at present.

Pakistan had a production capacity of 33 million tonnes per annum at the end of 2006 with a relatively low utilization rate of 60%. Sector dynamics have begun changing recently as political tensions in nearby Afghanistan are easing and restructuring efforts have transformed the latter into a major recipient of Pakistani cement. With increasing Indian demand for cement exports and with other Middle East nations also requiring imports to meet supply shortages, utilization rates are expected to pick up gradually.

Iran is widely expected to become a major exporter to the GCC as well as to Afghanistan and Iraq. It enjoys an abundance of both raw materials and energy components required for production, which has allowed the country to maintain prices at USD 55 per tonne. Iran's cement production capacity is estimated at 45 million tonnes per annum after a wave of new production facilities came on line in the first quarter of this year.

The Turkish cement industry, with a production volume of 52.5 million tonnes per annum, is poised to become one of the 10 largest producers in the world. Additional capacity is expected to add a further 10 million tonnes per annum this year.

Egypt's cement sector has witnessed significant changes over the past two years as an environment of lower prices on the back of cheaper subsidized energy saw the country convert itself into a major cement exporter. The government has issued licenses for 8 new factories with production capacity of 13.5 million tonnes per annum, bringing Egypt's total capacity to 55 million tonnes per annum by 2010.

GCC spends USD 43 billion on various airport projects

MEED reported that, capitalizing on record oil generated surpluses and an ideal geographic location, GCC countries are investing USD 43 billion in various airport projects and expansion of existing facilities.

According to a latest study, across the Middle East, South Asia and Africa region, more than USD 68 billion is being invested in various airport projects in the Gulf, Jordan, Iraq, India, Sri Lanka and across the African continent.

Mr Khalifa Al Zaffin executive chairman of Dubai World Central said that heading the list of mega projects is the USD 10 billion new Dubai World Central Al Maktoum International Airport. The 6 runway airport is designed to become the largest airport in the world and handling 120 million passengers annually. This is followed by the development of Abu Dhabi International Airport at an investment of USD 6.8 billion and Qatar’s USD 5.5 billion New Doha International Airport.

Other major developments include Saudi Arabia’s King Abdul Aziz, Madinah and Tabuk Airports at a total cost of USD 11.3 billion, along with the modernization of smaller airports in India at USD 4 billion, and further projects worth USD 3.5 billion and USD 2 billion respectively in Libya and Baghdad.

According to EFG Hermes investment bank aviation analyst Mr Abid Riaz, the region is trying to catch up with the worldwide development of air travel on the back of record high oil prices. He said that "Oil receipts have inflated the coffers of GCC countries, allowing their governments to embark on grand infrastructure projects."

Oman also has announced a USD 3 billion plan to expand two existing airports, in addition to building three new ones. Muscat’s Seeb International Airport will be able to handle 12 million passengers in 2010 as compared to 4.7 million in 2006.

Dubai is building a third terminal and two new concourses at its airport. This USD 4.5 billion expansion is expected to be complete by 2009 to enable the airport to handle up to 70 million passengers annually.

Abu Dhabi has embarked on a project to expand its airport capacity to handle 40 million passengers annually.

Pakistan auto assemblers Q3 profits down by 40% YoY

The Post reported that all the major auto assemblers profits declined by 40% in January to March 2008 period, while the net profit of auto assemblers during January to March 2008 period stood at PKR 744 million as against PKR 1.3 billion in January to March 2007 period.

The four major auto assemblers in Pakistan, Indus motors, Pak Suzuki, Honda Atlas and Dewan Farooque, covering 65% of the total auto sector market capitalization and 99% of total cars and LCVs sales, have been selected to draw up the accumulative results of auto sector.

Net sales of the industry stood at PKR 27.3 billion in January to March 2008 period as against PKR 29.2 billion during January to March 2007 period.

In addition gross margin went down sharply by 6.3% amid increasing steel prices and 16% appreciation of yen against rupee, this negatively impacted industry's gross profits in the period, as cumulative gross profit saw a massive decline of 39% to land at PKR 1.7 billion.

Although volumetric sales and net sales for Honda declined by 21% and 19% respectively, the 24% resulted in positive gross margins of 7.8% in January to March 2008 period, the company has been able to reduce its selling, distribution and other operating expenses resulting in net margins of 2.1%.

The two leading auto assemblers Indus Motors and Pak Suzuki Motors along with Dewan Farooque showed lacklustre performance during January to March 2008 period. A part from Indus Motors, other two companies showed a declined in volumetric sales, moreover, the companies witnessed high cost of sales as the cumulative cost per unit went up to PKR 480,000 in January to March 2008 period as compared to the INR 418,000 during the same period last year.

Bahrain to import 1 BCFD of natural gas from Iran

Gulf Daily News reported that Bahrain is planning to purchase 1 billion cubic feet of natural gas every day from Iran.

Mr Abdulkarim Al Sayed CEO of Bahrain Petroleum Company said that Bahrain already consumed an average of 1 billion standard cubic feet of natural gas every day. He added that it needs to expand its supplies of natural gas because of the massive amount of development taking place in the country.

Mr Al Sayed said that it was required to produce electricity for the country's expanding infrastructure, as well as support the industrial sector. He added that "The additional gas is to meet increasing demand from projects. Many companies require gas. As the country develops, we will need more gas to produce electricity. We are exploring the possibility of importing gas from Iran, Qatar and other countries. We also want to enhance gas production in Bahrain from our reservoirs."

Saudi inflation to rise further – SAMA Report

Saudi Arabian Monetary Agency, in its latest report, said that inflation in Saudi Arabia, which rose above 10% in April 2008 for the first time since the oil boom of the 1970s, will probably advance further this quarter albeit at a slower pace. It added that projections indicate a continued rise in the inflation rate during the second quarter of 2008, but at a slower pace than in the previous periods.

SAMA said that government and private spending will spur price rises in the April to June 2008 period, though suppliers of goods and services are responding more to rising demand. It added that "The pace of government and private spending is increasing, which would strengthen the demand for all goods and services which may lead to more inflationary pressures in the economy."

The report said that "The Saudi economy is an open market economy therefore, the change in the prices of imported goods is an important factor affecting the level of domestic inflation." It added that subsidies targeted to help lower income Saudis, state employee cost of living allowances and lower import levies on various food items are among measures Saudi Arabia has introduced to tackle inflation this year.

Heads of OPEC and IEA to discuss oil price issues

It is reported that Mr Abdalla Salem El Badri secretary general of OPEC and Mr Nobuo Tanaka executive director of International Energy Agency will meet in July 2008 to discuss important issues currently facing the oil sector such as the surging oil prices, demand, supply and the future of the oil industry.

The meeting is scheduled to hold at the OPEC-IEA Luncheon. The OPEC-IEA Luncheon, which will take place on July 2nd 2008, is one of the most popular networking events of the World Petroleum Congress.

The speakers will debate the important issues affecting the industry today, including oil prices, demand, supply and resources, as well as the future of a sector so crucial for our global economy. Dr Noe van Hulst newly appointed secretary general to the International Energy Forum, will moderate the discussion.

During the 4 day Congress, 540 speakers will participate in an extensive program including 7 plenary sessions, 15 ministerial sessions, 7 special sessions, 4 luncheons and numerous technical sessions. The program will be divided into 4 blocks namely upstream, downstream & petrochemicals, natural gas & renewable and managing the industry.

(Sourced from Leadershipnigeria.com)

Bangladeshi laborers banned from working in Bahrain

Gulf Daily News reported that Bangladeshis have been banned from working in Bahrain following the alleged brutal murder of a Bahraini national by a mechanic from Bangladesh.

As per report, Mr Sheikh Rashid bin Abdulla Al Khalifa Bahraini interior minister has ordered authorities to stop issuing work permits to Bangladeshis.

The accused was charged with premeditated murder for allegedly slitting the throat of Mr Mohammed Jassim Dossary with a hacksaw after a disagreement over payment for work on the victim’s car.

Following the murder, MP Mr Abdul Halim Murad demanded the deportation of more than 100,000 Bangladeshi laborers from Bahrain. He called on the government to put a timetable for the deportation of Bangladeshi laborers from Bahrain after their repeated involvement in murders and other crimes.

Meanwhile, Bangladesh Embassy head Mr Saif Al Islam said that the move had left him and his colleagues in shock and the embassy would appeal against it. He added that "For one person the government is punishing a whole nation, which is not acceptable to us. We will appeal to the government to reconsider this. We will ask them at least to delay implementing this restriction."

Mr Al Islam said that 106,000 Bangladeshis are currently working in various sectors across Bahrain.

Baosteel hikes Q3 prices--Industry source

According to a reliable industry source who asked for anonymity, China's top steelmaker Baosteel has announced its price change details for Q3 productions with prices raised by CNY 300 per tonne for common carbon HRC and CRC. 1.0mm SPCC CRC is offered at CNY 6296 per tonne, 5.5mm HRC is offered at CNY 4992 per tonne.

Baosteel Q3 price details are listed below:

1. HRC in SPHC grade - Up by CNY 200 per tonne
2. HRC in other grade s - Up by CNY 300 per tonne
3. HRC in special grades - Up by CNY 400 per tonne
4. HRPO common grades - Up by CNY 200 per tonne
5. HRPO in special grades - Up by CNY 600 per tonne
6. CR in common grades - Up by CNY 300 per tonne
7. CR in deep drawing grades - Up by CNY 600 per tonne
8. CRFH - Up by CNY 300 per tonne
9. ETP - Up by CNY 1000 per tonne
10. HDG and EG - Up by CNY 200 per tonne for HDG

The Q3 prices have yet to be officially confirmed by Baosteel.

(Sourced from MySteel.net)

Update on domestic plate prices in China

Shanghai
1. 16mm medium plate provided by Yingkou is offered at CNY 6600 per tonne
2. Plates provided by second grade steelmaker is quoted at CNY 6230 per tonne to CNY 6250 per tonne
3. 40mm low alloy plate is posted at CNY 7000 per tonne.

Beijing
1. 16mm to 25mm medium plate is mainly quoted at CNY 6350 to CNY 6400 per tonne
2. Low alloy plate is posted at CNY 6700 per tonne.

Tianjin
1. 16mm to 25mm medium plate is offered at CNY 6320 per tonne
2. Low alloy plate is posted at CNY 6700 per tonne.

Guangzhou
1. Price for 14mm to 28mm plate is posted at CNY 6700 per tonne
2. 30mm heavy plate is posted at CNY 6800 per tonne
3. Low alloy plate is posted at CNY 6890 per tonne.

(Sourced from MySteel.net)

Sinosteel seeks nickel ore in Indonesia to supply Baosteel

Bloomberg reported that Sinosteel Corp China's second biggest iron ore trader is spending several million dollars prospecting for nickel ore in Indonesia to supply a Baosteel Group Corp venture.

Mr Zou Zongan director of PT Sinosteel Indonesia said “The prospecting started last year and we hope it concludes by the middle of next year.''

Mr Chong Dahai China Metals analyst said Sinosteel and other Chinese companies are seeking resources to feed an economy that grew 11.9% in 2007.

Sinosteel and Baosteel, China's biggest steelmaker are building a CNY 1.8 billion nickel pig iron plant in China Northern Province of Hebei.

Handan Steel announces new prices

It is reported that Hebei based Handan Steel released its latest EXW price on the basis of prices published on May 18th 2008:

Wire Rod, Rebar and Round Bar: unchanged.
Q235 6.5mm common carbon wire rod is quoted at CNY 5940 per tonne
Q235 6.5mm high speed wire rod is posted at CNY 5980 per tonne HRB335 12mm rebar is posted at CNY 6080 per tonne
HRB335 14mm rebar is posted at CNY 6030 per tonne
HRB335 16mm to 25mm rebar is posted at CNY 5880 per tonne
Q235 16mm to 25 mm round bars is posted at CNY 5860 per tonne.

Medium Plate is up by CNY 120 per tonne.
Latest EXW price for Q235B 20mm medium plate is offered at CNY 6700 per tonne.

Prices listed above are inclusive of 17% VAT effective as of May 28th 2008.

(Sourced from MySteel.net)

HDG and PPGI price scenario in China

Boxing
1. 0.4mm galvanized sheet made by Hengtong is quoted at CNY 7650 per tonne
2. 0.5 mm galvanized sheets is posted at CNY 7300 per tonne
3. .1.0mm galvanized sheet is posted at CNY 6950 per tonne.

Shanghai
Price for 1.0mm galvanized sheet made by Anben Group prevails at CNY 7300 per tonne up by CNY 50 per tonne
0.5mm galvanized sheet made by private makers is posted at CNY 7670 per tonne up by CNY 70 per tonne
0.5mm color coated sheet made by Baosteel is posted at CNY 9200 per tonne to CNY 9300 per tonne.

Beijing
1.0mm galvanized sheet made by Anben Group is priced at CNY 7150 per tonne up by CNY 50 per tonne
0.5mm galvanized sheet made by private makers is posted at CNY 7400 per tonne
0.476 color coated sheet made by private makers is posted at CNY 7950 per tonne.

(Sourced from MySteel.net)

Shougang slag used for Olympic venue construction

According to reports from Beijing 2008 Project Construction Headquarters, steel manufacturer Shougang Group has provided more than 1.4 million tonnes of waste slag as backfill for Olympic venue construction.

The report added that following the "Green Olympics" concept and using thorough scientific research, Shougang Group has turned the waste slag into useful backfilling materials for National Stadium and other Olympic venues.

Tests have shown that the slag turned backfill meets China's standard of environmental protection. Not only does the slag reduce the amount of sandstone and concrete needed as backfill, it also reduces costs and energy.

CDQ device put into operation in TISCO

It is reported that recently, the 2×150 tonnes per hour CDQ device which is contracted by China Metallurgical Coke Resistance Engineering Company and match with 2 of the 7.63 meters high coke furnaces in TISCO Stainless Steel Company was put into operation.

It is the first full closed CDQ device in the world, not only has beautiful shape, but also more cleaner.

As per report CDQ is the shortened form of dry out the coke, is one of the world’s advanced coke technology and also the energy saving and emission reduction technology for iron and steel industry. It can bring great environmental benefits, economic benefits, and energy saving effect compared with the conventional wet out of coke technology, because it adopts inert gases to put out the hot coke.

Meigang 220KV transmission electricity system put into operation

It is reported that, Meigang’s 220KV transmission electricity system formally put into operation. It all adopted international and domestic advanced equipments, using energy-saving variable transformer with high technological contents.

As per report the construction speed of this project was quick, Meigang Company together with Su Yi Company and Yuanneng Company completed the six kilometer long cable ditch project timely

Rebar prices remains steady in Chongqing

It is reported that the market prices of Φ6.5mm general wire made in Dagang and 8mm high speed wire made in Weigang are both CNY5,950 per tonne in Chongqing, while prices of 12mm II grade rebar made in Chonggang and 18mm to 25mm II grade rebar made in Dagang are CNY 6,050 per tonne and CNY 5,830 per tonne respectively.

Despite of the earthquake, steel market are resuming gradually. It is realized by traders that some building sites has reopened and market demand is recovering gradually now.

WISCO to produce 20,000 tons of PPGI for earthquake relief

It is reported that WISCO plan to produce 20,000 tonnes of color coated plate in order to 60,000 sets of light and simple houses for the earthquake disaster areas.

Recently, the national housing and the Ministry of urban and rural construction issued an announcement which requested to build 1 million sets of light and simple houses in Sichuan earthquake disaster areas in next three months. WISCO initiatively undertook the material supply task for the 60,000 sets of light and simple houses.

1. The first batch of 10,000 sets simple houses will be completed before June 25th 2008
2. The second batch of 10,000 set simple houses will be completed before July 20th 2008.
3. Third batch of 40,000 sets of simple houses will be completed before August 10th 2008.

Bagang produces API X52 steel

It is reported that up to now, Bagang Company’s steel making plant has produced 922 tonnes of X52 pipeline steel.

Bagang Company began to smelt X52 pipeline steel at the end of last year. At present, all the performances of the products smelt by Bagang’s second steel making plant can meet the standard requirements

X52 pipeline steel is one of the special high quality steel products with high value added, mainly be used in the manufacture of oil and natural gas pipelines. At present, this product is supply falls short of demand in China especially in Northwest.

Jinxi Steel to construct Daqin Railway Special Line

It is reported that recently, the development of Daqin Railway Special Line in Jinxi Steel is in order, and Hebei provincial development & reform commission has already approved the construction of the project.

As per reports, the total investment in the project is CNY 400 million and the design length of the rail is 19.353 kilometer accounting for 657 acres.

After the commission, the special line would be able to accept 6 million tonnes of coke from Taiyuan every year, 3 million tonnes of iron ore in Caofeidian Port and export 5 million tonnes of products which could significantly release the company’s transportation pressures, reduce transportation cost and materials loss.

Nine steelworks in Hebei would not increase prices

It is reported that nine steelworks in province Hebei, which have accepted the mission of providing color coated steel sheet for earthquake disaster areas in province Sichuan, promised together recently that to confirm sufficient supply, to control the cost and not to raise prices.

Nine steelworks including Tangshan Steel and Handan Steel have accepted the mission to provide color coated steel sheet.

According to the arrangement, province Hebei accepted the mission to produce 80,000 sets of earthquake proof prefab four earthquake disaster areas and main raw materials are 10.84 million square meters of color coated steel sheet.

Chinese steelmakers to produce quake resistant rebar

It is reported that as the quality of construction steel has direct impact on the anti quake capacity of buildings, construction steel producers in Southwest China led by Kunming Steel and Shuigang are aiming to produce anti quake rebar.

As per repot the representation of anti quake rebar differs from current normal rebar by attaching capital 'E' to steel grade, such as second grade anti quake rebar with diameter of 16mm is described as 'HRB 335E 16mm'; and third grade anti quake rebar with diameter of 16mm, 'HRB 400E 16mm'.

Officials with Shuigang explain that anti quake rebar boasts higher strength, anti erosion and yield strength than normal rebar and it will be used as the key product for Southwest steelmakers in the reconstruction work in the quake affected areas as well as in the local and nearby region.

(Sourced from MySteel.net)

South Korea imports less Chinese H beam on high price

Steel Daily reported that China is shipping less H beam to South Korea due to low price in the destination market. While South Korean buyers have also cut import tonnage form other countries.

Export offers for H beam by Chinese producers have jumped to USD 1060 per tonne to USD 1070 per tonne CFR for delivery to South Korea. Transaction price is reported to be around USD 1020 per tonne to USD 1030 per tonne CFR, but there are not many contracts at the updated level.

Trading sources say that price in South Korean market is lower than those in other destination market for Chinese H beam exporters. Hence the average tonnage to South Korea is merely 35,000 tonnes to 45,000 tonne.

The major reason for drop in imports is sharp increase in export price of Chinese H beam. Total H beam imports during January to April 2008 are 320,000 tonne down by 20.6% YoY. Japan supplied103,000 tonne and China exported 203,000 tonnes.

(Sourced from MySteel.net)

CISA denies media reports on steel export duty hike

XFN-ASIA reported that the China Iron and Steel Industry Association denied media reports that export duty on steel products will be increased effective on June 1st 2008.

The association in a statement said the rumor had disrupted normal production and would hinder earthquake reconstruction efforts. It said that stable steel product exports make for a stable steel market.

According to customs figures China exported 16.17 million tonnes of steel products during the January to April period down by 23.9% YoY.

Industry watchers said that if the date of an export duty hike is known in advance, producers tend to increase their output of products for export, putting the squeeze on supplies for the domestic market.

Russia could lower import duties on steel – Mr Putin

Reuters cited Mr Vladimir Putin PM of Russia as saying that the government should consider lowering import duties on some types of steel that Russia does not produce to encourage the domestic automobile industry.

Mr Putin said "We need to stimulate investment inflows to enable all mechanisms including tariff regulation. He said that Russian steel producers have struggled to meet rising demand from the automobile sector as consumers snap up cars on the back of rising disposable incomes.”

Mr Putin said "I am sure that our metal producers will be able to resolve this problem in reasonable time. He said that it is worth considering the issue of temporarily lowering duties on those types of steel we do not produce to enhance development of the automobile industry and to spur development of the metallurgical sector."

Mr Putin said in 2007 car sales in Russia stood at more than 3 million vehicles and the market was worth USD 40 billion. He said that only a quarter of total sales were sales of Russian made vehicles. He added that USD 10 billions that we spend annually on imports are working to develop other countries' economies."

Mr Putin said he forecast such projects will produce up to 1.5 million cars a year by 2012. He said that in the end around 80% of cars sold in Russia must be produced on our territory."

EU AD duty on transformer steel from NLMK and VIZ Stal cancelled

Novolipetsk Steel announced that the EU resolution on the annulment of the 2005’s 11.5% anti dumping duty on transformer steel became effective. The obligation to control minimum prices for products delivered to EU customs territory was also cancelled.

The released added that these resolutions were adopted following the revision of duty terms where the Company proved to the European Commission its strict fulfillment of fair competition obligations among the Russian transformer steel producers NLMK and VIZ-Stal.

The cancellation of the anti dumping procedures enables these Russian transformer steel producers, for the first time since 1995, to supply their products without restrictions to EU countries where it is in high demand.

TMK and Turkmenneft ink cooperation agreement

TMK announces that it has signed a cooperation agreement with Turkmenneft State Concern. Mr Dmitriy Pumpyanskiy Chairman of the Board of Directors of OAO TMK and the Mr Gariyakdy Tashliev Chairman of Turkmenneft State Concern signed the cooperation agreement at Ashgabat in Turkmenistan. The agreement covers the period until the end of 2010.

Under the terms of the agreement, Turkmenneft State Concern will provide information on its requirements for oil and gas pipes and their characteristics and TMK plants will supply Turkmenneft with high technology tubular products to meet its production needs. The agreement also involves the establishment of a TMK service centre in Turkmenistan for the maintenance and repair of high technology tubular products.

Cooperation between Russia’s largest oil and gas pipe producer and Turkmenistan’s state owned energy companies has been rapidly increasing since the opening of a TMK-Trade House office at the end of last year.

Mechel commissions new ring rolling mill at Ural Stamping

Mechel has announced the commissioning of a new modern ring rolling mill at its Urals Stampings Plant OAO steel subsidiary. The ceremony to commission the unique forging equipment was held on May 26th 2008 and was attended by Mr Igor Zyuzin CEO of Mechel and Mr Petr Sumin Chelyabinsk Region Governor.

The total cost of the new forging equipment at Urals Stampings Plant the largest producer of hot stamped billets was more than RUB 266 million.

The new ring rolling mill RAW 200 (250)/160 (200) 3500/1000 is manufactured by SMS MEER of Germany and is designed to produce weld less straight and section rings by radial axial rolling. The new machine will enable Urals Stampings Plant to produce rings with an outer diameter of 400mm to 4200 mm and a height of 60mm to 1000 mm.

The machine’s full computerization is also one of its major advantages, which significantly reduces production costs and time, and ensures high product quality. The machine’s average capacity is four tonnes per hour. Its options include ROLLTRONIC, complete digital measuring and indication of the rings’ size during the entire rolling process with the help of a laser measuring device; ROLLTRACK, graphics support during manual rolling operations; CARWIN, the program of automated ring rolling which includes optimal selection of billets and tools and rolling process modeling.

Mr Vladimir Polin CEO of Mechel Management OOO said “The commissioning of the modern equipment and development of a new product will enable Ural Stampings Plant to expand its share in the large stampings market and open new markets for rolled rings. There is high demand for these products from many promising industries, including oil and gas, aircraft, and mechanical engineering. The first commercial offers were received by the plant before the ring rolling mill startup. Potential consumers of the plant’s production include companies from Russia, North America, and Europe.”

Urals Stampings Plant, one of Mechel’s steel subsidiaries, specializes in producing a wide range of metal stampings. The plant has a 22% share of the Russian stampings market and is one of the leading manufactures of rough axles for locomotive rolling stock. Currently, Urals Stampings Plant exports its products globally including the US, Canada, Slovakia and Czech Republic. The plant is also the leading producer of over 1,000 kilogram large size stampings in Russia.

Severstal sees 15% profit margin in US units

It is reported that Severstal, Russia largest steelmaker by output, expects a stable 15% profit margin at its US operations within three to four years.

The official speaking on condition of anonymity said Severstal's North American mills would average a profit margin of 15% on earnings before interest, taxation, depreciation and amortization in three to four years.

Severstal has acquired several underperforming US assets at knockdown prices in the last few years. If its latest USD 1.2 billion bid for Esmark is successful and the company's US steel capacity will grow to rival its Russian output.

Gazprom set to become world's top company - Mr Miller

RIA Novosti cited Mr Alexei Miller CEO of Gazprom during a meeting with Mr Dmitry Medvedev president of Russia as saying that Russian energy giant Gazprom is seeking to become the world's number one company.

Mr Miller said Gazprom is now ranked the world's third largest company for market capitalization, which currently stands at USD 362 billion.

He said that "Very important steps will be taken, including making Gazprom the world's number one company, adding that his company had experience, resources and over 300,000 employees to achieve the goal.”

Final reports say Gazprom produced 548.6 billion cubic meters of gas last year excluding output by its subsidiaries up by 1.3% against 556 billion cubic meters in 2006.

Turkmenistan to boost gas supplies to Russia

Interfax reported that Mr Gurbanguly Berdimuhammedow president of Turkmenistan visited the largest gas field in the country at Dovletabat to attend a groundbreaking ceremony for the Dovletabad-2 gas compressor station and the commissioning of the Dovletabad-3 booster compressor.

He said that the construction of both facilities is entrusted to Belgium's ENEX which has already implemented a series of important projects in the country. Once all construction is completed, gas supplies both to Russia and further to Europe will increase substantially which will undoubtedly help boost the energy security of the countries consuming Turkmen gas.

Mr Berdimuhammedow said "This region, which is a testament of Turkmenistan's enormous economic potential and its status as an energy power is what will help us increase the production of natural gas. He said that in order to calm skeptics who question these figures we have invited the UK audit firm Gaffney, Cline & Associates Ltd to assess the resources in these deposits and they will soon perform a certification procedure for hydrocarbon resources in the southeastern region in line with the international standards classification for natural resources."

RZD develops railway infrastructure

It is reported that RZD is developing a railway line Tuapse Adler. The investments in the project will total RUB 13.5 billion.

As per report the infrastructure construction is financed using the fund obtained from the additional indexation of tariffs on freight transportation. On April 1st 2008 they were increased by 1%.

RZD will earn RUB 25 billion within three years from additional tariff indexation.

Gazprom board approves stake in Salavatnefteorgsintez

It is reported that the Gazprom board of directors has agreed on an increase in the authorized capital of Gazprom pererabotka and on the acquisition by this company of a 50% stake in Salavatnefteorgsintez from NPF Gazfond.

S&P upgrades outlook for LUKoil to positive

RIA Novosti reported that Standard & Poor's has raised its outlook for Russian oil and gas major LUKoil to positive from stable. At the same time the agency affirmed the BBB- long term corporate credit and ruAA+ Russia national scale ratings for the country's largest independent crude producer.

Mr Karl Nietvelt Standard & Poor's credit analyst said "The revised outlook reflects LUKoil's increasingly strong cash flow generation in 2007 which we expect to continue in coming years. He said that the positive outlook also factors in our expectations for continued strong debt metrics, despite the near term possibility of some USD 5 billion in acquisitions."

LUKoil's management has expressed strong interest in Western downstream assets. LUKoil's current credit metrics contain significant headroom, however with the fully adjusted ratio of operating cash flow to debt standing at 111% at the end of 2007.

Mosenergosbyt sold at auction for USD 478 million

RIA Novosti reported that an auction for a 50.9% stake in Moscow electric power trader Mosenergosbyt was won by unknown firm Korporativno-trustoviye proyekty which paid RUB 11.3 billion.

Unified Energy System of Russia said the controlling stake which was sold at the starting price was contested by two bidders.

Mosenergobyt supplies electric power and collects payments for electricity supplies in the capital and the surrounding region.

Mosenergosbyt is Russia's largest electricity sales company, selling 8% of Russia's total electric power output.

AvtoVAZ to put off share placement until 2009

RIA Novosti reported that Russia's largest car producer AvtoVAZ will postpone a share placement scheduled for this fall until the first half of 2009.

Mr Sergei Chemezov chairman of the board said "This is more likely to happen in 2009 in the first half of the year I hope. He did not specify the number of shares to be placed.”

Mr Ruben Vardanyan head of investment group Troika Dialog, financial consultants to AvtoVAZ said earlier that the car manufacturer planned to float up to 25% in Moscow this fall.

AvtoVAZ shares are traded on Russia's two largest bourses RTS and MICEX.

Interpipe commissions NDT facilities at Dnepropetrovsk

Interpipe has announced that the realization of the project aimed at the increase of non destructive testing facilities based in tube rolling shop No 5 at the Interpipe NTRP operation at Dnepropetrovsk in Ukraine.

The released added that completion of the project will enable Interpipe NTRP to provide full non destructive testing of its steel pipe products, thereby improving its offering to customers. The new line includes a rotary ultrasonic testing system, pipe flushing equipment and automated ultrasonic testing of pipe ends.

US Company Magnetic Analysis Corporation, one of the leading non destructive testing suppliers, was selected to provide the ultrasonic pipe testing equipment for both the pipe body and pipe diameter. Starmans Electronics from the Czech Republic will provide the testing equipment for the pipe ends.

Mr Aleksey Slyusarev Director for Production and Investments of Interpipe’s said “Increase of non destructive testing facilities is one of Interpipe’s strategic goals. Over the last two years we have added NDT facilities at our operations and now have the capability through ultrasonic, electromagnetic, eddy current and magnetic particle testing to test seamless and welded pipes at all of our mills.”

Evraz to invest USD 1.8 billion in Russia in next 5 years – Mr Pavel

Thomson Financial cited Mr Pavel Tatyanin CFO of Evraz Group SA as saying that his company plans to invest about USD 1.8 billion in its Russian operations during the next five years in order to increase output. The plant is scheduled to go online in April 2009.

Mr Tatyanin said Evraz plans to invest about USD 80 million in a Bratsk facility in order to produce up to 400,000 tonnes of steel sections and bars per year.

Evraz also expects to commission in December 2010 the first stage of production at a sheet mill at its West Siberian Iron & Steel Plant. Initial production will be 800,000 to 850,000 tonnes per year and once the second stage is complete it will produce 1.2 million tonnes per year

MMK sees domestic sales nearly doubling by 2013

Thomson Financial cited Mr Boris Dubrovskiy executive director of Magnitogorsk Iron & Steel Works as saying that his company plans to sell 12 million tonnes of steel to Russia in 2013 almost double last year's 6.3 million tonne total.

Mr Dubrovskiy added that MMK plans to invest around USD 2.6 billion in its domestic operations in 2008 and that capital expenditures could exceed USD 7 billion from 2009 to 2013. He said