BSP reaffirmed as the best unit of SAIL

Mr Jitin Prasada union minister of state for steel has recently reaffirmed the SAIL Bhilai Steel Plant's status as the best unit, noting that it has consistently made profits even when other units were running into losses.

Mr Prasada said that "It is important that steel making capacities be increased in India and I am glad to note that the expansion program of Bhilai is in full swing. I came to apprise myself of the steel making capabilities in Bhilai and also the progress being made in expansion program of Bhilai and SAIL."

He discussed areas of concern such as the application for environment clearance for the Rowghat Iron ore mines, rail connectivity to Rowghat and what help Bhilai Steel Plant required.

Indian export in 2007-8 up by 23% YoY

Indias exports during March 2008 were valued at USD 6282.79 million up by 26.59% YoY as against USD 12862.40 million during March 2007 and cumulative value of exports for the period April 2007 to March 2008 was USD 155512.49 million as against USD 126413.99 million registering a growth of 23.02% YoY in dollar terms.

Indias imports during March 2008 were valued at USD 23174.94 million representing an increase of 35.24% YoY over the level of imports valued at USD 17136.46 million in March 2007. Cumulative value of imports for the period April 2007 to March 2008 was USD 235910.73 million as against USD 185735.17 million registering a growth of 27.01% YoY in dollar terms.

Oil imports during March 2008 were valued at USD 8633.14 million up by 76.6% YoY as against USD 4888.47 million in March 2007. Oil imports during April 2007 to March 2008 were valued at USD 77033.57 million up by 35.28% YoY as against USD 56945.25 million.

Non oil imports during March 2008 were estimated at USD 14541.79 million up by 18.73% YoY as against USD 12247.99 million in March 2007. Non oil imports during April 2007 to March 2008 were valued at USD 158877.15 million up by 23.36% YoY as against USD 128789.74 million in April 2006 to March 2007.

PSL riding on boom in spiral welded pipe demand

It is reported that with large capacities for spiral welded pipes and a big order book, PSL Limited faces strong growth prospects and with newer facilities being added, the growth momentum is likely to continue.

PSL has the largest spiral submerged arc welded pipe manufacturing facility in the country. With an installed capacity of over a million tonnes per annum, PSL appears best placed to benefit from the rising global acceptance of spiral welded pipes. It has an order book of over INR 3,400 crore, including the latest order win of INR 1,225 crore from HPCL and L&T.

To benefit from increasing overseas demand, the company is in the process of setting up capacities in UAE and the US. The UAE facility, with a capacity of 75,000 million tonnes per annum, is expected to commence production soon. It is also setting up a facility in the US by way of a 78% JV with the US based A&L Group. This facility is likely to begin production by mid 2008-09 fiscal.

Spiral welded are finding wider acceptance and newer applications, globally, due to their lower cost structure and improved welding technology. Spiral welded are now increasingly being used in non-critical applications in onshore oil and gas transportation and water projects in the west Asian countries and North America.

HZL to enhance capacity of lead and zinc smelters

It is reported that Hindustan Zinc Limited will invest about INR 3,200 crore to enhance capacity of its lead and zinc smelters and set up a 160 MW captive power plant. HZL plans to scale up its production to 1.06 million tonnes per annum by 2010.

The two brown field smelter projects, which will increase the production capacities of zinc and lead smelters by 210,000 tonnes per annum and 100,000 tonnes per annum, will be undertaken at its Rampura Dariba mines. The total investment in these projects is estimated at INR 3,600 crore. This investment includes the cost of smelters, captive power facilities, mine development, shaft sinking and other infrastructure.

The expansion is supported by HZL's reserves of 232.3 million tonnes per annum containing 27.5 million tonnes per annum of zinc and lead, while the company will set up a 160 MW captive power plant at Rajpur Dariba in Rajasthan. The expansion of Sindesar Khurd and Kayar mines will be completed in phases by 2012.

Punjab industry closely monitoring steel prices

BS reported that the manufacturing industry in Punjab is monitoring the steel pricing situation very closely after the announcement of various proposals by Indian government.

Mr DS Chawla former president United Cycle & Parts Manufacturing Association has welcomed the steps taken to curb steel prices said that increase in steel prices in recent past has put the bicycle manufacturing industry in doldrums and also forced closure of around 40% small enterprises based in Ludhiana that were engaged in manufacturing bicycle parts, with the rest cutting their production by around 30% to 35%.

He said that the Measures taken by the government to check in the arbitrarily rising steel prices could prevent the revision of bicycle prices that was on the cards. With input prices rising the bicycle manufacturers were forced to go in for revision of bicycles by around INR 200 in the past.

Mr SC Ralhan regional chairman of Engineering Export Promotional Council said that still the notification levying 15% export duty on primary steel and HR coils and 10% duty on CR coils was still awaited and once the notification is received they were anticipating a fall of INR 7000 PMT in the prices of steel within one week. He demanded that notification should be issued at the earliest so that the manufacturing units could also heave a sigh of relief.

The finance minister recently announced stringent measures to curb down the steel prices by levying 15% export duty on primary steel and HR coils and 10% export duty on CR coils, while the custom duty on steel has been cut from 5% to nil. By announcing a host of measures, Mr P Chidambaram union finance minister aims to bring down the steel prices, which have accounted for 21.3% of the current inflation, the rate of which is hovering around 7.33%.

Loading of iron ore at non congested points picking up

It is reported that resistance to Indian Railways policy announcement of October 2007 for the Priority C customers of iron ore, mostly, sponge iron and pig iron units, alloweing them to load additional rakes provided they made more use of non congested goods sheds and non congested private sidings in Dongaposi and Barsua clusters is slowly going away.

As per reports, loading at non congested stations in Dongaposi area jumped by more than 80% during the November 2007 to March 2008 period and the loading in non congested stations in Barsua cluster too increased substantially. The loading at Gua too, it is learnt, has been impressive.

Earlier every consumer of iron ore wanted to load at four stationsnamely, Barjamda, Jaruli, Banspani and Barbil and two private sidings under Dongaposi cluster and some at the Barsua station. As result, these stations are heavily congested.

There are several other stations which are non congested in the same clusters because few would go there due to bad infrastructure. Some of these non congested stations do not have even proper road connections. The congested stations and the private sidings, understandably, suffer from capacity limitations.

Indian ship breakers lose business to Bangladesh

BS reported that, with Bangladeshi ship breakers offering around 23% more for steel scrap than India, Indian ship breakers are in trouble and some of them may have to close shop. Bangladeshi companies are offering INR 29,600 per tonne for scrap steel compared with INR 24,000 per tonne that the Indian players are paying.

Bangladesh has emerged as a major ship breaking destination in South Asia with an average of 150 vessels to 200 vessels being scrapped there every year. Pakistan, on its part, is competing with India by scrapping an average of 70 vessels to 90 vessels in a year as compared with India's 120 vessels.

Both India and Pakistan generate around 4,000 tonnes of scrap steel per vessel, much less than Bangladesh, which generates 12,000-15,000 tonnes of scrap steel per vessel. Bangladesh can offer higher prices as most steel manufactured there has scrap as the basic raw material.

Mr Nikhil Gupta joint secretary of Ship Recycling Industries Association of India said that "One reason why Bangladesh is offering more is because it does not have any other major source for making steel. For that, it has kept the duties low. Because of this, Bangladesh has managed to attract high-tonnage vessels. Neglected vessels with lesser tonnage make their way to yards in India or Pakistan. Now with Pakistan offering a higher price, it is in a better position to attract more vessels."

Mr Gupta said that their business is going through a lean phase. Between 1995 and 2001, the industry employed over 45,000 people per annum, which has now come down to 6,000.

Industry experts said that in the last 5 years, because of the boom in the shipping industry, a number of old vessels have been overstretched. Due to global economic slowdown, freight rates are correcting and with global steel prices ruling higher, shipping companies will be able to command more for their scrap vessels. However, Indian ship breakers hope the tide will turn in 2010, when the International Maritime Organization comes with guidelines on ship breaking norms. Many Bangladeshi ship breaking yards will have to close down over pollution and labor issues.

BEML opens sourcing office at Shanghai in China

BS reported that BEML Limited has opened an office at Shanghai in China to source components for its mining, metro rail and other defense products. It will also market its products in India through this office.

With this office, BEML expects to earn a business turnover of INR 300 crore in 2 to 3 years. BEML will be sourcing critical components and machinery parts required for the manufacturing of its mining and construction equipment as also for the manufacture of wagons and rail coaches.

These components, sourced from China, would be meeting the required technical and quality parameters with comparatively lower costs.

Prakash Industries declares 2007-08 results

Prakash Industries Limited has announced its financial results for January to March 2008 quarter and 2007-08 fiscal. During the year the company showed impressive results.

Its net sales and income from operations have increased by 35% YoY to INR 1419.74 crore as against INR 1048.40 crore reported in the last year. EBIDTA increased by 50% YoY to INR 304.05 crore in the current year as against INR 202.55 crore in 2006-07 fiscal. Profit after tax was up by 96% YoY at INR 211.87 crore as against INR 108.34 crore.

Prakash Industries has acquired coal blocks in the state of Chhattisgarh for its captive use. The coal block has been allotted for the expansion of capacities in the power plant of the company to the extent of 625 MW. The integrated steel plant of the company is located in Chhattisgarh with state of the art technology equipments.

KEC International Q4 net profit up by 101% YoY

Indian TLT major KEC International Limited has reported a 101% YoY increase in net profit at INR 60.6 crore for January to March 2008 quarter as compared with INR 30.1 crore posted during January to March 2007 quarter.

Its net sales have increased by 61% YoY to INR 1,031 crore as against INR 640.9 crore. Currently it has an order book position of INR 4,200 crore.

Mr Ramesh Chandak MD & CEO of KEC International said that crossing the INR 1,000 crore mark in net sales in a single quarter was a major milestone. Therefore, it has recommended a 50% dividend.

Early action sought on Vizag dock labor board merger

BL reported that All India Port & Dock Workers Federation has sought the intervention of the union shipping minister for early merger of the Visakhapatnam Dock Labor Board with the Visakhapatnam Port Trust.

Mr PM Mohammed Haneef general secretary of the federation said that the proposal of the Visakhapatnam Dock Labor Board for its merger with the port trust was approved by the ministry in February 2008 and that it had been communicated to the chairman of the port for implementation.

The items and conditions of the merger were placed before the board of trustees, which approved the same. According to the merger proposal, the government had accorded sanction to appoint 347 selected and approved candidates in the Visakhapatnam DLB.

The federation urged the ministry to direct the authorities to take speedy action in the matter of appointment of these candidates as approved by the government, as inordinate delay will affect the livelihood of the poor workers.

The workers had already started a relay hunger strike since April 25th 2008 demanding early implementation of the government order to provide employment to the listed and approved workers.

Cement price control mechanism under consideration

BL reported that Indian government is contemplating using a practically abandoned provision of the Industries (Development & Regulation) Act 1951, which empowers it to regulate prices and supplies of industrial commodities.

This provision, section 18G, continues to be on the statute books but has not been used for almost 19 years after a cabinet decision in 1989 not to invoke it. Section 18G provides for control on prices and supplies of industrial products without bringing them under the purview of the Essential Commodities Act under which powers are vested with states.

Mr Ashwani Kumar union minister of state for industries said that the ministry is conducting a study on whether the cement industry was into cartelization and profiteering. He added that "Our ministry is analyzing the pricing of the cement industry. If we find that the companies are making a windfall profit of 30% to 40% instead of the normal 10% to 15%, it would be taken as profiteering."

The analysis is being done on the basis of data provided by public sector Cement Corporation of India, the Bureau of Industrial Costs and Prices, the National Productivity Council, Cement Manufacturers Association and also private players. The departmental exercise is expected to be completed in another 2 to 3 days.

Unlike steel, in the case of cement, the demand-supply gap is not very high. In 2007-08, India imported 470,000 tonnes while exports stood at a whopping 3.65 million tonnes. The recent ban on exports would also help bring down prices in the next few weeks.

Mr KV Kamath is new CII president

Mr K Vaman Kamath MD & CEO of ICICI Bank has been elected CII president for 2008-09 succeeding Mr Sunil Bharti Mittal.

Mr Venu Srinivasan MD of Sundaram Clayton Limited is the new VP.

Navratna status granted for NALCO

It is reported that National Aluminum Company Limited has been granted the Navratna status.

Navratna status is conferred on select central public sector enterprises on becoming significant players in the economic development of India. On achieving the status, certain powers are delegated to those CPSEs that had comparative advantages and capacity to become global giants.

NALCO is presently carrying out its second phase expansion with an investment of more than INR 5000 crore. The expansion work is scheduled to be completed by this year end. At the same time, NALCO is also working on plans to set up smelter and power plants in Indonesia and South Africa.

It had recently strengthened its board by inducting 5 independent directors for a period of 3 years. With this induction, the requirement of listing agreement with stock exchange to have 8 independent directors in the board had been complied with in full paving the way for formal conferment of Navratna status.

Elecon plans foray into US and Europe

It is reported that, in a bid to strengthen its presence in the global markets, Elecon Engineering Company is eyeing overseas acquisitions and is looking into Western Europe or USA for acquiring an engineering firm.

Mr Prayashwin Patel CMD of Elecon Engineering said that "Our intention is to have external network outside India and we are looking for acquisitions in Western Europe and the US. The acquisition would be made in engineering sector."

Elecon has a turnover of more than INR 1,000 crore. Also, it has significant presence in China, Middle East, Australia, South Africa and South East Asia, including Malaysia, Singapore. It expects to clock a turnover of INR 1,400 crore in the 2008-09 fiscal.

Cochin Shipyard delivers platform supply vessel to Norwagian firm

BL reported that Cochin Shipyard delivered another platform supply vessel named Sea Pollock to Deep Sea Supply Plc of Norway. The protocol documents were signed by Mr KK Sukumaran executive director, on behalf of the Cochin Shipyard and Mr Karisen fleet manager on behalf of Deep Sea Supply. This is the sixth in a series of eight ships being built for this owner.

Sea Pollock is expected to start trading from Singapore

The first ship was delivered in June 2007. The subsequent 4 ships namely Halibut, Sea Angler, Sea Pike and Sea Bass, were delivered in 2007-08. Three of these ships are operating in West Africa, one in Libya and one in Mexico. . All the vessels delivered so far have reported excellent performance and are operating for reputed international petroleum companies.

These platform supply vessels are built on the popular UT-755 design for the offshore industry. These ships have been designed by the Rolls Royce ship technology group. The ship is built and classified under the stringent rules and regulations of Det Norske Veritas and is classified for unmanned engine room and dynamic positions grade. The vessel also satisfies the clean notation of DNV which signifies high standards of environmental safety.

The vessel is designed for satisfying the specific demands of transport, dock cargo, liquid cargo, as well as for uploading on to rigs and production platforms and pipe laying barges. They are considered the workhorses of the offshore oil field industry which acts as a lifeline carrying all operational supplies and stores to far off installations. As the offshore industry moves into deeper waters, demand for such advanced vessels are expected to rise.

The shipyard is also constructing 20 similar ships for European and American clients valued at over INR 2,000 crore. These projects are being undertaken exclusive of the Air Defense ship for the Indian Navy which is also presently under construction.

HRC price breaks the USD 1,000 per ton level in US

Platts reported that hot rolled coil in the US market has increased USD 20 per short tons this week putting the midpoint at the loftiest ever mark of USD 1,005 per short tons ex works Indiana.

A sales executive told Platts that "Our sales team is easily collecting USD 1,000 or more now.

The report added that spot buyers also confirmed transactions in a range of USD 1,000 to USD 1,010 per short tons ex works, but noted perhaps wishfully that the market may be peaking. One large Midwest buyer said that "There is still some material available for June with mills seeking USD 1,000 to USD 1,050 per short tons depending on tonnage, but the frantic pace of price increase announcements may be ebbing.

Even the mill executive pointed out that the upswing may soon stabilize. He said that "I hate being the bear in such a bull market. But credit is so tight that many customers can now only buy half the steel they did in 2007. They risk tying up twice as much working capital on inventory."

He said that there does not yet appear to be any risk from a flood of imports, so supply may stay tight. But on the demand front, some big end-use markets are scaling back. He added that "Automotive generally shuts down for two weeks in July, but it may be three weeks this year. Appliance-makers usually close for a week in the summer, but are talking about two weeks.

BlueScope expresses interest in buying stake in PT Krakatau

The Jakarta Post reported that Australian steel giant BlueScope Steel is interested in acquiring stake in PT Krakatau Steel, which is likely set to go on offer under a government privatization program.

The report cited Mr Ansari Bukhari Director General for Metal of Indonesias industry ministry as saying that BlueScope has sent a letter to the ministry inquiring how it could take part in the privatization. Mr Ansari said the letter was sent to the ministry on April 28th 2008 and was signed by BlueScope Steel President Director for Indonesia and Malaysia Mr Rob Crawford.

He added that "BlueScope's CFO Charlie Elias will be here from May 8 to 9 to meet Minister Fahmi Idris to learn more about the plans for Krakatau and would also meet the finance and state ministers for state enterprises.

Mr Ansari also said that BlueScope is unlike most Indonesian steel firms in that it produced steel for the automotive sector and not just for infrastructure projects. He said that "They want to offer their capabilities and experience in automotive steel and from our side it is a good thing as we still import around 2 million tonnes of this special steel.

BlueScope may have to fight off competition from ArcelorMittal which has stated its intention to acquire a 40% stake in Krakatau.

ArcelorMittal announces restoration of 25% free float in China Oriental

ArcelorMittal has announced a series of measures which will restore a 25% free float in China Oriental Group Company in compliance with the listing rules of the Hong Kong Stock Exchange.

At the time of the close of its tender offer on February 4th 2008 ArcelorMittal had reached a 47% shareholding in China Oriental. Given the 45.4% shareholding by the founding shareholders, this left a free float of 7.6% against a minimum HKSE listing requirement of 25%.

The measures to restore the minimum free float have been achieved by means of sale of 17.4% stake to ING Bank and Deutsche Bank together with a put option agreements entered into with both banks. As a result of the measures announced today ArcelorMittal's shareholding has been reduced back to 29.6%.

voestalpine unit VAE acquires 60% stake in CDS Rail

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

The financial terms of the transaction were not made public.

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

Leader Steel acquires GCH Metal Service Centre

Malaysias Leader Steel Holdings Bhd recently announced that it had acquired 18,002 and 2,000 ordinary shares of MYR 1.00 each representing 100% of the issued and paid up capital of GCH Metal Service Centre Sdn. Bhd. at MYR 1.00 for cash from Dato Goh Cheng Huat and Datin Tan Pak Say respectively.

Ternium to continue talks with Venezuela on Sidor

Ternium Sidor, the Venezuelan steelmaker facing expropriation of its operations by Mr Hugo Chavez president, has said that it is prepared to negotiate with the nation's government concerning proper compensation for its assets.

Ternium SA, Sidor's Luxembourg based parent, in a statement from its European headquarters said that "While continuing to preserve all of its rights under contracts, investment treaties and Venezuelan and international law, Ternium is prepared to continue discussions with the Venezuelan government regarding the adequate and fair terms and conditions upon which all or a significant part of Ternium's interest in Sidor would be transferred to the government,"

The two sides differ widely on the valuation for Sidor, for which Mr Chavez wants to pay USD 800 million while Ternium has asked for USD 3.6 billion. Ternium acquired Sidor in 1997 for USD 1.2 billion and says it has invested at least USD 900 million in raising production to 4 million short tons per year.

US Steel Europe plans another price increase for June

It is reported that US Steel Europe will increase its prices for the hot rolled, cold rolled and coated products for the second time this quarter. For orders placed for delivery in June the prices will be EUR 80 per tonne higher.

US Steel Europe said last week that it expects its second quarter results to be higher than the first quarter on increased prices and comparable operating and shipping levels, despite higher raw materials costs.

US Steel Europe in April 2007 raised its prices by EUR 100 per tonne. The price increases apply to both of US Steel Europes works, in Slovakia and Serbia.

Back in February, US Steel Europe forewarned its customers about the further price rise, saying it needed to offset the higher cost of raw materials. Its average realized price in Q1 of 2008 was USD 791 per short ton more than USD 100 higher than in the same period in 2007.

AK Steel increases spot prices for carbon steel products

AK Steel Holding Corp announced that it that it will increase spot market prices for its carbon steel products by USD 75 per ton for all new orders, effective immediately.

AK Steel said that the higher price stems from increased demand for carbon steel products, as well as the need to recover unprecedented increases in steelmaking inputs.

EU to debate CO2 capture policy next week

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

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

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

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

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

ArcelorMittal Galati increase scrap buying price

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

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

Scrap prices continue their clime

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

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

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

ArcelorMittal to unveil benefits of Linde flameless oxyfuel technology

It is reported that Linde and ArcelorMittal will describe the benefits of using flameless oxyfuel technology in a continuous steel reheat furnace at AISTech 2008, the premier steel industry technology event in North America. The event will begins May 5 at the David L Lawrence Convention Center in Pittsburgh. The Linde REBOX technologies will also be featured in booth #1552.

Mr Mike Lantz and Mr Doug Hassenzahl of ArcelorMittal will present a paper on how the Linde REBOX flameless oxyfuel solutions increased reheating throughput and reduced fuel consumption at ArcelorMittal Shelby Tubular Products at Shelby in Ohio. The paper was co authored with Mr Anders Lugnet, Mr Grzegorz Moroz and Mr Anders Carlsson of Linde.

In their presentation on May 7, the authors will describe how, in 2007, Linde North America led a four month, turnkey project to implement the REBOX flameless oxyfuel technology at the seamless tube mill. The result was a 25 percent increase in reheating capacity and a decrease in fuel consumption of 50% versus oxy enrichment and 65% versus airfuel. The implementation also delivered improved temperature uniformity for better piercing results, a 50% reduction of scale formation and minimized nitrogen oxide and carbon dioxide emissions.

Mr Tony Palermo metals market segment manager of Linde North America said that "Lindes portfolio of unique REBOX oxyfuel solutions gives the steel industry a range of options for improving productivity and operating flexibility, reducing costs and cutting greenhouse gas emissions on reheating and annealing furnaces, often as turnkey projects with guaranteed performance. The REBOX solutions have been very successful in improving the performance of existing equipment without a large capital investment.

Lindes in house furnace and process engineering experts have converted over 110 furnaces worldwide to REBOX oxyfuel combustion. REBOX oxyfuel solutions enable rolling mills, forge shops, annealing operations and hot-dip galvanizing lines to increase furnace throughput by as much as 50 percent and improve operational flexibility, heating performance and temperature uniformity while reducing scale formation and cutting fuel consumption.

Aztec galvanizing segment gets Most Distinguished Project award

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

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

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

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

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

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

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

Nakayama Steel hikes wire rod prices by USD 144 per tonne

SBB reported that Japan's Nakayama Steel Works is adding JPY 15,000 per tonne (USD 144) to its domestic prices for ordinary wire rods, wire rods for fasteners and wire mesh grade rods from May contracts, June deliveries.

The Osaka based mini mill had earlier lifted prices by JPY 20,000 per tonne for April deliveries but since then, prices of scrap and other auxiliary materials have risen, leading the company to decide to add another JPY 15,000 per tonne.

A Nakayama spokesman said that Demand for ordinary wire rods has weakened because of the downturn in building construction. But we are still producing near full capacity because rods supply is still just a little below demand.

Nakayama makes 5.5mm to 16mm diameter wire rods at its Funamachi works in Osaka and is producing at close to full capacity of 20,000 per month

Mitsubishi to invest USD 7.5 billion in metal and energy

Japanese trading house Mitsubishi Corp said that it is planning to invest up to JPY 800 billion (USD 7.5 billion) in metal resources and energy projects over a two year period from April 2008 to March 2010.

As per report Mitsubishi plans a total investment of up to JPY 1,500 billion in the next two years and roughly half of it will be for metal and energy. In previous years, Mitsubishi's investment for metal and energy accounted for roughly 30% of its total investment. Its April 2007 to March 2008 financial statement that the JPY 1,500 billion investment is for sustainable growth, to be supported by metal and energy operations, its core businesses.

Metal and energy generated over half of its JPY 462 billion net consolidated profit for April 2007 to March 2008. The profit from metal was JPY 158 billion, a 34% share of the total profit and energy brought in JPY 94 billion, a 20% share.

Mitsubishi's metal operations comprise steel products, steel raw materials and nonferrous metal business units.

Antam Q1 profit down by 37% YoY

PT Antam Tbk announced that its unaudited consolidated net profit decreased by 37% YoY to IDR 675 billion for the first quarter of 2008, from the IDR 1,073 billion in the same quarter of 2007.

The decrease is mostly due to lower achieved selling prices of ferronickel and lower ferronickel sales volumes, with no increase of nickel ore sales volumes or prices, in combination with a 20% increase to Antams cost of sales due to higher fuel and ore feed prices. The decrease occurred despite slighter higher ferronickel production volume, signaling a good performance from FeNi III, increased gold and silver sales volumes and higher gold and silver achieved selling prices.

Antams consolidated first quarter sales revenues dropped by 12% YoY to IDR 2,092 billion from IDR 2,386 billion, due to lower ferronickel sales volume as well as lower nickel prices.

Mr Dedi Aditya Sumanagara president director of Antam said that While our net income has decreased in the first quarter of 2008, this was not unexpected. We are pleased FeNi III appears to have stabilized and ferronickel production increased slightly. As well, we were able to maintain our nickel ore prices despite softening spot prices for nickel throughout the quarter. Our gold division performed well in terms of revenue growth and prices of gold increased significantly. We are still optimistic we will achieve our volume targets for this year. We are also now focused on our next significant growth investment.

Schnitzer and USW agree for 3 year contract at Cascade Steel

AP reported that labor and management have a tentative deal on a 3 year contract at the Cascade Steel Rolling Mills in McMinnville. The contract was reached in all night bargaining between Schnitzer Steel Industries and the United Steelworkers.

The report quoted Mr Joe Munger union president as saying that the contract calls for a raise of 3.5% and provisions on health coverage and safety. But he added that the union didn't get the job protections it sought in case the mill changes hands.

He said he expects members to approve the contract. The vote won't be taken before next Friday.

USW has been working under terms of the previous contract since it expired April 1st 2008.

Non OPEC producers unable to boost production

AFP reported that Oil producers outside the OPEC cartel are unable to pump enough oil to reduce crude prices, hampered by robust domestic demand, weak investment and exhausted oil fields.

Mr Francis Perrin of the publication Petrole et Gaz arabes said that In the short term, no non OPEC member is in a position to produce more. While in the long term Kazakhstan, Brazil and Canada could boost output, it would hardly compensate for a decline in British and Norwegian fields in the North Sea. In the United States, the development of off shore fields in the Gulf of Mexico will not be enough to compensate for the decline of older facilities."

Mr Mike Wittner of the bank Societe Generale said that the Organization of Petroleum Exporting Countries, by contrast has reserves equivalent to about 2 million barrels a day, essentially in the hands of Saudi Arabia. While the market until recently had been expecting an output hike in non OPEC producers, analysts are now revising downward their projections in light of disappointing performances by Mexico, Russia and Brazil.

US Steel update on progress at Clairton Coke Works

Daily News Staff Writer reported that progress is being reported in the upgrading of United States Steel Corp's Clairton Coke Works since it announced that it is considering a USD 1 billion capital investment program at its Clairton Plant coke making operation near Pittsburgh.

Mr John Surma chairman & CEO of US Steel said that "We have a proposed investment program to construct two state of the art batteries that will replace the existing capacity of our aging No 1 through 3 and No. 7 through 9 battery groups. In addition, environmentally focused rehabilitation work is planned for several of the remaining batteries."

Mr Dan Onorato executive of Allegheny County said that it is the largest investment of its kind in the Pittsburgh region since the construction of Pittsburgh International Airport.

As Allegheny County Health Department officials noted this week, batteries to be built now and in 2014, along with other air pollution controls, will bring the area around Clairton, Glassport, Liberty, Lincoln and Port Vue into compliance with federal standards for fine particulate pollutants. The area county officials call Liberty Clairton is one of two in the Pittsburgh region classified by the U.S. Environmental Protection Agency as in non attainment for fine particulates.

High steel prices lead Shell to withdraw from wind farm project

Platts reported that rising costs, driven particularly by record steel prices, led to Shell's decision to sell its 33% stake in the UK's largest offshore wind farm project.

Ms Eurwen Thomas a spokeswoman of Shell said that "The rising price of steel has certainly been a factor in Shell's decision to withdraw from the London Array. She added that the cost of wind turbines has increased as a result of a general shortage.

Ms Thomas said that Shell is currently in the process of seeking a buyer for its share in the project. The oil major confirmed that following the sale, it would focus on North American onshore wind energy projects.

According to some recent estimates, the price of steel plates, which accounts for approximately a quarter of the total cost of manufacturing the turbine, has risen sharply since the start of 2008. The price of hot rolled plate used in wind towers has increased by EUR 195 per tonne since the start of 2008, to its current level of approximately EUR 900 per tonne. This has impacted the cost of the project, which has shot up from GBP 1 billion five years ago to GBP 2.5 billion

Firm ferrous scrap price ruling in Tokyo

JMB reported that ferrous scrap market price is firm at around JPY 54,000 per tonne for H2 grade at dealers' purchase price including freight around Tokyo.

The report said that local electric furnace steel makers pay JPY 59,500 to JPY 62,500 for H2. The price could increase more when the shipping FAS price from Tokyo bay also increases and integrated steel makers increase the purchase volume.

Hyundai Engineering wins USD 2.07 billion order in Qatar

Hyundai Engineering & Construction Company said that it had received preliminary notice that it won a USD 2.07 billion construction order in Qatar.

Hyundai said that it secured the deal from Japanese trading house Mitsui & Company, which won a power and desalination project from Qatar Electricity & Water Corporation.

A final contract would be signed in May 2008.

UAE based cement plants to sign price cap deal

It is reported that United Arab Emirates will sign an agreement with cement producers next week to cap prices on building material.

The signing will take place on May 5th 2008 with the chairman of Cement Plants and Producers Authority and UAE Minister of Economy Mr Sultan bin Saeed al Mansouri.

Source in UAE ministry of economy said that the agreement aims to maintain the price levels of cement and stabilize the domestic market.

Construction material prices hit contractors in Pakistan

Pakobserver.net reported that the prices of construction material have hit an all time high in Pakistan leaving the contractors in a fix whether to continue with their on going projects.

As per report, the worst hit province is Punjab where housing and other development projects worth PKR 250 billion are lying incomplete.

Experts believe that there has been a rise of almost 22% in overall cost of construction from July 2007 to April 2008. Although there has been a reduction in mild bar prices and presently prices came to around PKR 70,000 per tonne from PKR 82,000 per tonne but extraordinary effort is required to ease the burden on construction industry.

The prices of billet has witnessed a 20% increase in recent days, similarly iron ore prices are also soaring, resulting in unprecedented increase in steel prices. Once a project is started the builders are left with no choice but to complete it within shortest possible time which is not the case with public contractors. Sometimes circumstances force us to halt our activities because of soaring prices.

Besides steel prices, cement prices have also increased manifold. A recent survey indicates that its prices shoot up to more than 18 percent, badly affecting the pace of projects. Business boom in construction industry and the subsequent failure of interim government to check the prices have encouraged the manufacturers to increase prices regularly. There has been an increase of PKR 10 to PKR 15 every week for the last few months but high ups seem least bothered.

Tin price boosts Abu Dabbab project

Gippsland Limited said that the recent rise in tin prices has added about USD 15 million a year to expected revenues from its Abu Dabbab tantalum tin project in Egypt.

The mine is expected to produce 1,530 tonnes of tin in concentrate a year over a 20 year mine life. Two German banks are currently completing due diligence work on financing arrangements for the USD 125 million project, which has a resource of 40 million tones of ore grading 243 g/t Ta2O5 and 0.09% Sn.

Gippsland also has a 40% stake in the Zeehan tin project in Tasmania, the majority share in which was recently purchased by Stellar Resources.

China keen to join IPI pipeline project Report

It is reported that China has expressed its keenness again to participate in the USD 7.5 billion Iran Pakistan India gas pipeline project. Mr Yong Jiechi Chinese foreign minister said that "We are seriously studying Pakistans proposal to participate in the IPI gas pipeline project."

Mr Yong Jiechi said Pakistan had the right to peaceful use of nuclear energy and China would continue to explore possibilities of cooperation in the peaceful use of nuclear energy. He added that Beijing would provide Pakistan CNY 70 million as technical and economic assistance and CNY 500,000 for equipment for the foreign office.

He said China is looking forward toward very constructive working relationship with Pakistan and purpose of his visit was to push forward relations between the two countries in various fields. He thanked Pakistan for its firm support with regard to Chinese position on the issues of Taiwan and Tibet.

Pakistani foreign minister Mr Makhdoom Shah Mahmood Qureshi said that the two sides discussed in detail host of things from defense cooperation to strategic partnership and the economic linkages that existed between the two countries and agreed to build our relations to a greater height. He added that they discussed how to incorporate China into Iran-Pakistan-India pipeline project.

He said that China had expressed its support to Pakistan for full membership of Shanghai Cooperation Organization. He added that China was a time tested and all weather friend of Pakistan.

Yanbu Cement Company on adding new capacity

It is reported that leading Saudi cement maker Yanbu Cement Company is taking a cautious approach to adding new capacity.

The company commissioned its fourth and largest kiln, with 7,000-tonne a day clinker production capacity, in 1997, and recently completed the upgrade of line 4 from 7,000 tonne a day of clinker to 9,500 tonne a day. Given the remote location of the plant, YCC has subcontracted its operation and maintenance to Associated Cement Companies of India. YCC's technical department is responsibility for monitoring the progress of production on a day-to-day basis.

Perhaps the biggest statement of YCC's ambition is its plans for a fifth cement production line. The YCC board has approved a new line of 10,000 tonne per day capacity and the contract award for its construction is expected to take place within three months.

YCC is a publicly listed company with head office in Jeddah and a branch in Medina, employing just under 1,000 staff. It also has a subsidiary company, Yanbu al Shuaiba Paper Products Company, in which it holds a 60% stake. It has two main operational divisions the projects and planning department and the production and technical department. The projects and planning department operates under the direct control of director general and CEO Mr Saud Islam and is the main division responsible for new projects.

Yanbu Cement Company is one of the four leading Saudi cement companies in terms of value of sales. Combined, these four firms, which also include Southern Province Cement Company, Saudi Cement Company and Yamama Cement Company, accounted for more than 60% of cement production in the kingdom in 2007.

Chinese economic boom to last at least till 2020

According to an expert with the National Development and Reform Commission the cycle of economic boom in China, the world's fastest growing major economy, would last until at least 2020.

Mr Chen Dongqi VP of the NDRC's Academy of Macroeconomic Research said the cycle, which started in 1978 when the reform and opening up drive was launched and saw the country's economy grow 9.88% annually during the past 30 years. He said "China's economy saw a marked slow down in the first quarter as the US credit crunch bit."

He added that "Industrial output in the Pearl and Yangtze river deltas, the nation's two most important growth engines rose at an marked slower pace. Many small and medium sized companies, particularly the exporters of low end products are faced with huge growth difficulties."

Mr Chen, however, acknowledged the economy still had much room for growth despite the current negative factors. He said "We don't need to worry about the long term economic boom just because of the short term impact. The growth will be robust at least till 2020, especially in regions such as the West and the Beibu Bay Economic Zone in Guangxi.

He added that "The economy is rather dependent on exports, but we still have huge room to deepen and expand the opening up. The investment in the rapid urbanization process will also be a strong driver behind the economic growth."

The expert added the rapidly growing tertiary sector and an increasingly larger proportion of the new workforce would also make bigger contributions to the economic boom.

Wuhan wins HRC AD case in Indonesia

It is reported that Wuhan Steel will enjoy zero duty in exports of HRC to Indonesia after successful defenses against anti dumping investigation.

As per report Indonesia initiated anti dumping investigation into HRC from China, India and Russia on June 28th 2006.

In the preliminary determination released in September of 2007 Wuhan Steel's dumping margin was estimated at 23.86% which indicated a possible heavy duty. However, the steelmaker's data and documentations were recognized and the alleged dumping margin fell to 3.23%.

Wuhan Steel started further defense on December 4th 2007. Two weeks later Indonesia cut the dumping margin to 1.47% and suggested a zero duty.

Chinese billet export in Q1 dips to negligible levels

It is reported that China has exported only 29,687 tonnes of common carbon billet during January to March 2008 period.

The country wise common carbon billet export destinations are

(In tonnes)

(Sourced from MySteel.net)

BaoSteel's steel strip for shadow mask occupies up to 50% on China Market

It is reported that BaoSteels accounted for 48% market share for strip for shadow mask in China market in March 2008, thus creating a record in history.

Steel strip for shadow mask is mainly used to manufacture the shadow mask for CRT color TV and it requires extremely high accuracy, profile, purity and surface quality.

Since the successful research and development in 2001, Baosteel achieved the batch production in 2004 which has broken the imported products predomination.

China to release resources tax reform scheme in 2008

According to Mr Shi Yaobin head of Tax Policy Department under the Ministry of Finance, China will adopt ad valorem tax rather than unit tax to safeguard resources and improve efficiency. Mr Shi said "This reform scheme is basically mature and will probably come out this year."

As per the new scheme

1 Comprehensive calculation of individual income tax will be introduced from previous item specific calculation and a sound property tax system will be established with the introduction of the property tax.

2. Substantial tax incentives such as value added tax and income tax will be employed to prompt the development of nuclear power, renewable energy, wind power and other clean energy.

According to Mr Shi the government considers introducing environmental protection tax and adjusting the coverage and scope of consumption tax to encourage the research and utilization of green technologies.

The Chinese government is expected to release ten tax collection regulation documents and five guiding catalogue on industrial development in the near future in addition to other regulation on costs and expenditures.

Import price of manganese ore at Chinese ports

Price in CNY per MTU

(Sourced from MySteel.net)

LME steel futures find few supporters in Russia

Reuters reported although London Metal Exchange has launched floor trading in steel futures, Russian mills are more focused on booming demand in their domestic market driven and are not keen to be a part of this launch.

As per report, Russian mills directly supply steel in the domestic market directly and they do not want to surrender pricing power by committing to a futures market in steel.

The report cited a trader who exports steel from a Russian mill as saying that "It is difficult to say that steel is a commodity. That is why it does not make sense to treat it as one. It is not reliable. It can crash. We can do the trading ourselves."

SFER net sales in 2007 up by 44% YoY

According to officially published financials from Stakhaniv Ferroalloy Plant its net sales grew to USD 186.1 million up by 44.3% YoY in 2007.

Global ferroalloys prices, which soared 40% YoY to 110% YoY over the last year, helped the plant to dramatically increase its net income by 22.1 times to USD 18.3 million.

Higher prices for SFER's products were among the factors which contributed to the improvement of the plant's Net Margin. Over the last year it grew to a healthy 9.8%.

(Sourced Millennium capital)

MMK shareholders approve dividend for 2007

It is reported that the shareholders of Magnitogorsk Iron and Steel Works have recently approved the dividend of RUB 0.502 per share for 2007.

The shareholders also approved MMK's annual financial statement and elected members of the Board of Directors and the Audit Committee, as well as appointed the company's auditor. Furthermore, they approved the amount of bonuses and compensations to be paid to members of the Board of Directors and the Audit Committee.

Kazakhmys refined zinc production in Q1 steady

Metals Insider reported that UK listed copper-zinc producer Kazakhmys, with operations in Kazakhstan, reported refined zinc production of 12,400 tonnes in Q1 2008 up by 12,100 tonnes as compared to the production in Q4 2007 but down from 14,900 tonnes produced in the year earlier period Q1 2007.

Fitch affirms MMK at BB outlook stable

Fitch Ratings has affirmed Magnitogorsk Iron and Steel Works long term Issuer Default and senior unsecured ratings at BB. The Outlook for the Long term IDR is Stable.

MMKs ratings continue to be supported by its strong operational profile, including its scale as the largest flat products producer in Russia, low operating costs and high plant productivity due to significant modernization in recent years. The ratings also reflect MMKs continuing high profitability albeit lower in percentage terms than peers such as NLMK and Evraz and a conservative capital structure with average gross leverage over the past four years of 0.6x.

Fitch believes that MMK management remain committed to a conservative financial profile in coming periods including maintenance of gross debt/EBITDAR below 1.5x throughout the steel price cycle. The agency also believes that MMK will continue to focus on organic growth and abstain from large scale M&A activity. Over the next 12 to 18 months, Fitch believes that the demand and price environment within Russia for steel producers should also remain supportive.

Metalloinvest merger talks with Norilsk Nickel still on

It is reported that the merger talks between Metalloinvest and Norilsk Nickel are still underway.

Metalloinvest stressed that the feasibility of the merger would depend on the decision of the majority of shareholders of both companies and appraised market value of these companies.

Metalloinvest Asset Management manages the assets of the Russian businessman Mr Alisher Usmanov's Gazmetal.

Mr Vekselberg spells out RusAl plans

The Moscow Times cited Mr Viktor Vekselberg chairman of RusAl as saying that United Company RusAl and Norilsk Nickel should pool their assets to take on global giants like BHP Billiton.

Mr Vekselberg said "The issue of uniting RusAl and Norilsk Nickel has been discussed for a long time. For the Russian economy and for the world economy a new player which could compete with leaders like BHP Billiton is very important."

He said RusAl, which delayed a long planned IPO last year, will make the placement by the end of next year and use its public status as a launch pad paying for new acquisitions with shares. He added that integration with Norilsk was not a precondition for the public offering.

Norilsk is in talks about a merger with Metalloinvest, an iron ore and steel firm founded by Mr Alisher Usmanov an Uzbek born billionaire and shareholder in London's Arsenal football club.

KamAZ net profit in Q1 down by 7.5% YoY

RIA Novosti reported that KamAZ, Russia's largest truck manufacturer, net profit calculated to Russian Accounting Standards went down by 7.5% YoY in the first quarter of 2008 to RUB 1.3 billion.

KamAZ, based in the Volga Republic of Tatarstan, produces more than 30 models of trucks, as well as trailers, buses, tractors and spare parts. It also manufactures engines, power units and components.

RUSAL Armenal production in Q1 up by 74% YoY

Interfax reported that RUSAL Armenal, a unit of aluminum giant United Company RUSAL and the only aluminum foil producer in Armenia, boosted production by 73.7% YoY in January to March to 3,090 tonnes of foil, including 1,051 tonnes in March.

An official at the Trade and Economic Development Ministry said that RUSAL Armenal will achieve design capacity of 25,000 tonnes of aluminum foil per year by the end of 2008,

The plant was shut down in 2004 to 2006 as it underwent a comprehensive modernization carried out by UC RUSAL. It was reported earlier that the plant intended to achieve design capacity of 25,000 tonnes by the end of 2007, but it only produced 12,256 tonnes of foil last year.

Latrobe Specialty strike not affecting operations at other locations

Latrobe Specialty Steel has informed customers that its production, finishing and delivery operations would continue unaffected by a strike by 375 hourly workers at its Latrobe, PA facility. The company said that it will continue to operate with supervisors and temporary workers.

The walkout by Steelworkers Local Union 1537 began at midnight of May 1st 2008 after the union rejected the company's final contract offer.

Mr Hans Sack president & CEO of Latrobe Specialty Steel said that "Latrobe Specialty Steel, facing mounting competition from foreign and domestic non union companies, must be able to win in global markets. We must prudently manage the increasing costs affecting every phase of the business. Latrobe cannot be oblivious to global wage factors and inevitable economic cycles. We need to have a contract with the Steelworkers that will keep the company competitive for the long term."

He added that "Latrobe has a duty to all its customers, especially to our nation's armed forces, to protect the production and delivery of our critical products to the manufacturers of vital defense equipment. While it is unfortunate that the local union rejected the company's offer, Latrobe Specialty Steel has made comprehensive contingency plans to maintain normal operations until the represented workers return to their jobs."

Latrobe Specialty Steel also operates facilities in other locations which are not affected by the Local 1537 strike. Its capacity expansion project continues on schedule. The company predicts the first hot metal in the third quarter of 2008 and full production in the first quarter of 2009.

Timken increase prices of SBQ products by USD 50 per tonne

Alloy steel and bearings maker Timken announced that it will increase base prices on hot rolled, cold-finished and thermal treated special bar quality products by up to USD 50 per tonne based on size. This price increase is effective with shipments beginning on July 1st 2008.

Raw material surcharges will remain in effect.

China Steel Australia to triple nickel pig iron production

It is reported that China Steel Australia Ltd plans to at least triple its nickel pig iron production capacity through a USD 92 million expansion of its Linyi plant in China's Shandong Province. The expansion will see China Steel Australia's production of nickel pig iron grow from 45,000 tonnes per year to about 140,000 tonnes per year.

As per reports, contracts have been signed for the plant expansion, with production scheduled to commence in January 2009

Mr Lanson Lim ED of China Steel Australia Ltd said that the expansion would significantly increase revenue and earnings, starting from the 2008-09 financial year.

He said that "China is the worlds largest consumer of stainless steel and the nation's massive infrastructure growth continues unabated. Demand for nickel pig iron, used in the production of stainless steel for China's domestic consumption, is very strong and remains unaffected by worldwide markets."

Reliance Power acquires three coal mines in Indonesia

It is reported that Reliance Power Ltd has acquired three coal mines in Indonesia with total reserves of 2 billion tonne. The company did not give any financial details about the transaction.

Reliance Power in a filing to the Bombay Stock Exchange said that "Reliance Coal Resources has acquired 100% economic interest in three coal in the Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico Pendragon Energy mines in South Sumatra province which are spread over an area of 40,000 hectares concessions in Indonesia.

As per report the acquisition was done by its wholly owned subsidiary Reliance Coal Resources Pvt Ltd which plans to invest INR 2,400 crore in mine and related transportation infrastructure to take the capacity of these mines to over 25 million tonne per annum.

The coal from the mines would be supplied to Reliance Power's 4,000 MW Ultra Mega Power Project at Krishnapatnam in Andhra Pradesh and also to the Shahapur power project in Maharashtra.

ENRC exercises option to buy 50% stake in BML

It is reported that ferrochrome producer Eurasian Natural Resources Corporation has exercised an option to buy a 50% stake in Bahia Mineracao Limitada from Zamin for USD 300 million in cash.

Bahia Mineracao Limitada focuses on the development of an iron ore deposit in the Bahia State of Brazil. BML is developing an infrastructure plan and had already arranged for contractors to develop the project located in the Bahia state. First output was envisaged for 2011 with full production by the following year.

Mr Johannes Sittard CEO of ENRC said that "We are excited by the prospects and the fundamentals of the iron ore industry. With this outlook we particularly welcome the opportunity to acquire an interest in BML.

He added that At full output this project could support an operation producing in excess of 20 million tonnes of concentrate per annum. We are confident that in time the acquisition will enhance shareholder value.

ENRC produces 17 million tonnes of iron ore concentrate annually.

Spot price of iron ore in China flat despite freight increase

It is reported that spot price of imported iron ore in China remained flat with wait and swatch policy clouding the market. Though some steelmakers are purchasing spot ore, their transaction volume is quite limited. Iron ore market is expected to be steady.

The spot price of imported iron ore price is under
1. Fe66% Brazilian concentrate stands at CNY 1600 per tonne
2. Fe63.5% Indian fine prevails at about CNY 1450 per tonne to CNY 1500 per tonne or above
3. Fe62% Indian fine is priced at about CNY 1350 per tonne to CNY 1390 per tonne
4. Fe61% Indian fine is concluded at about CNY 1290 per tonne to CNY 330 per tonne
5. Fe 60% Indian fine CNY 1200 per tonne to CNY 1250 per tonne
6. Fe59% Indian fine around CNY 1120 per tonne to CNY 1160 per tonne
7. Fe58% Indian fine about CNY 1000 per tonne to CNY 1060 per tonne.

The overall global freight rates have risen while the inland shipping rates remained flat
1. Freight rate for Capesize ore carriers is quoted at USD 86.17 on average for Tubarao-Beilun to Baoshan route up by USD 2.25
2. The rate for W.Australia-Beilun to Baoshan route is posted at USD 32.84, up by USD 0.02 that of India Qingdao/Rizhao USD 43.22 down by USD0.60.
3. Bull freight pushes BDI up by 201 to 9329, BCI up by 307 to 13890 BPI up by 7 to 9287 and BSI up by 124 to 5400.

(Sourced from MySteel.net)

Coal price hikes stimulate wave of mining upsurge

It is reported that coal resources are becoming more important due to rising global energy demand and hovering high oil price. Coal prices eyed rapid gains in recent months as a result of bad weather, governmental curbing policies as well as vigorous demand as its rising magnitude even surpassed that of oil price rise, triggering upsurges of coal mining fever across the world. Against such a backdrop, global leading coal producing countries are rushing to expand their output.

Australian Bureau of Agriculture & Resource Economics noted the Australias new capacity utilization would reach 18.6 million tonnes up by 5% from the year ago level. South Africa also plans to add domestic coal supply to ease down energy shortfalls.

Expanding the handling capacity of Richards Bay also implies that more coal will be shipped out from South Africa.

In order to secure plenty of energy resources to meet economic expansion target, Indian government has urged domestic miners to expand coal output and increase imports. The country plans to hike its coal output by 50% YoY to 650 million tonnes by 2012.

Main coal producing countries like China, India, America and main importers as Japan and Korea are all intensifying investment in overseas coal mining projects. China Shenhua Group Corp lately announced it will invest in its Mongolian and Australian coal mine projects. India also intends to pour some money in South Africa for coal resources. Foreign investment can not only ensure domestic supply, but guarantee some profits when coal price goes up.

Due to energy crisis, many coal mines that have halted production now resumed operations. Britain is a good example in this regard, though it has promised to cut greenhouse gas emissions by 60%. Coal industry in the country still weighs heavy in energy structures. In Britain, two coal-pits have resumed operations with other three heading on the way. Mitsui & Company Limited in Japan also expressed their interest in re-development of coal mines in Hokkaido, which have been closed down due to higher mining costs in early 2000.

(Sourced from MySteel.net)

Rio to double coal output from Queensland State

Bloomberg reported that Rio Tinto Group may double coal production from Queensland by 2015.

Queensland Premier Ms Anna Bligh and Mr Geoff Wilson mines and energy minister said that Rio aims to increase output to 40 million tonnes, from 21 million tonnes.

Ms Bligh said that Queensland is spending AUD 400 million to expand the coal train network to lift capacity by 38 million tonnes from 2010.

Mr Hubie van Dalsen MD of Rio Tinto Coal Australia said that the expansion may involve a multi billion investment.

Prices for coking coal have tripled to a record this year because of disrupted supplies and rising demand. Rio's output of hard coking coal, used in steelmaking, fell 27% in the first quarter after weather disrupted mining in Queensland.

Vietnam to face coal shortage in 2015

Vietnam News Agency reported that Vietnam's coal production is predicted to meet 63.8% of the local demand in 2015 and only 25.9% in 2025.

The agency quoted the Vietnamese Ministry of Industry and Trade as reporting that specifically, the country is expected to produce 60 million tonnes of coal in 2015, while its demand for the product is estimated at 94 million tonnes. The respective estimated figures are 80 million tonnes and 308 million tonnes in 2025.

The ministry said in 2010, Vietnam is expected to produce 47 million tonnes of coal and consume 37 million tonnes of the products.

The ministry said Vietnam is predicted to export some 25 million tonnes of coal worth USD 850 million as compared with respective figures of 32.6 million tonnes and USD 1 billion in 2007.

Vietnam has recently raised its export tax on coal to 15% from 10% previously, in a move to ensure sufficient supplies for local energy thirsty industries, like electricity and cement.

Metals X re starts Renison mine in Tasmania

ITRI reported that Metals X is due to re start underground mining at the Renison mine in Tasmania in May and at the same time will commence ore shipments to Renison from the nearby Mt Bischoff open pit operation.

The Renison concentrator is reported to be on track for first concentrate production in mid June. Expected annual production is 8,500 tonnes per year of tin in concentrates. A bankable feasibility study on the treatment of tailings from the mine is due to be completed in the fourth quarter of this year.

The reported that as the Renison operations starts up Metals Xs Collingwood mine in Queensland will be put on care and maintenance. The mine produced 483 tonnes of tin in concentrates in the March quarter and generated a positive cash flow of AUD 1.08 million.

The company is considering a scaled down operation to recover remaining economic reserves there. Following further exploration, the Collingwood resource estimate has been revised to 642,000 tonnes grading 1.19% Sn.

Update on Guleb Al Aouj DRI project in Mauritania

Sphere Investments announced on April 7th 2008 the successful completion of the Guelb el Aouj Definitive Feasibility Study providing the basis for the project partners Sphere with 25.05% stak3, SNIM with 25.05% and Qatar Steel with 49.9% to proceed with the financing and development of the first 7 million tonne Guelb el Aouj Direct Reduction iron ore pellet project in Mauritania, whose commissioning is scheduled for H2 of 2011.

The DFS defines an open pit mine and processing plant at the Guelb el Aouj East Deposit to process 17 million tonnes per annum of magnetite quartzite primary crusher feed to produce 7 million tonnes per annum of DR pellets for 30 years. Following an extensive exploration campaign in targeted areas south of the Project location, sufficient ground water has also now been confirmed for the life of the Project.

DR pellets will be railed by SNIM to their iron ore port of Nouadhibou and shipped nearby to the growing markets in North Africa and the Gulf region. Under the terms of the agreement with Qatar Steel, they have an off-take entitlement for 49.9% of the production. The balance of production is being sought after by other major steel producers in the region.

The average cash operating cost in the DFS is USD 39.4 per tonne and the project capital cost is USD 2.14 billion. Based on these figures, annual revenue from the Project at todays prices would be approximately USD 1.2 billion with a cash operating margin of over USD 920 million.

El Aouj SA is the project operating company. The partners are currently finalizing the Shareholders Agreement, Share Sale and Purchase Agreement and other legal documentation for the transfer of 49.9% of EASA to Qatar Steel on the terms agreed with them in November, 2007 of USD 375 million. This cash consideration will be paid to SNIM and Sphere in equal proportions and will be applied to fund their respective equity contributions to the Project.

On the 28th of March 2008, a new 30 year Exploitation License was approved by the Government of Mauritania for EASA. The License covers the original Sphere and SNIM Joint Venture Area and permits EASA to produce and rail pellets from the deposits within the License. In addition to the 429 million tonne Ore Reserve at Guelb el Aouj East that is the basis of the Project, the License hosts a further 425 million tonnes of Inferred Resources and substantial exploration targets in the south (Bou Derga and Tintekrate) to support future expansions by the Partners.

Following successful completion of the DFS, EASA is now in the process of appointing a financial advisor and engineering contractor for the next phase of the Projects development.

Inner Mongolia to shut down over 100 small coal mines

It is reported that about 120 small coal mines with annual capacity of less 300,000 tonnes in China's Inner Mongolia are set to be cleared up from the market at the end of the 11th Five-Year Plan.

The government is planning to close small coal mines, restructure coalfields and take other possible effective measures starting from 2008 to 2010, with a view to concentrating the coal capacity to major enterprises.

According to the development plan released lately by Inner Mongolia, the autonomous region will intensify consolidation of small coal mines and elimination of obsolete capacities within the last three years of the 11th Five-Year Plan. Up to now, some 6 million tonnes of backward capacity from 41 small coal mines have been washed out since last year and another 6 million tonnes derived from other 40 mines are projected to be shut down in 2008.

About 126 coal mines with capacity of less 300,000 tonnes in this region are expected to phase out of the market by 2010, hopefully increasing the average capacity of individual colliery to 1 million tonnes from 700,000 tonnes in 2007. Meanwhile, the local government will promote the mechanization for coal mining after consolidation.

As per report boasting abundant coal resource, Inner Mongolia has developed into China's second largest coal producing base in recent years. In 2007, it yielded 350 million tonnes of coal of which, some 190 million tonnes were shipped to other provinces, strongly helping cater for the need of other domestic regions.

(Sourced from MySteel.net)

Coke price to increase by CNY 200 per tonne in Shanxi

According to a report by National Business Daily coking coal price will rise by CNY 30 per tonne in Shanxi's Linfen and coke price will follow suit to gain CNY 200 per tonne in May 2008.

Insiders disclosed the hike is agreed by most Shanxi based coke producers at a market analysis conference. Price for first grade metallurgical coke will rise to CNY 2400 per tonne from CNY 2200 per tonne in April. The price advance will be implemented in stages in view of the acceptance of downstream enterprises.

Mr Wang Ling an industry analyst believes coke price in Shanxi will keep rising with at proper steps in the coming days since international price is much higher than domestic one.

Some small iron makers in Tangshan has increased coke price by CNY 100 per tonne. Larges iron makers are also brewing price adjustments.

9 killed as coal carrying vessel sinks off Zanzibar

It is reported that at least 9 people have drowned after a ship carrying coal from South Africa sank off the coast of the Tanzanian semi autonomous isle of Zanzibar.

Mr Andrew Mwangura of the Kenya chapter of the Seafarers Assistance Program said the ship sank early Thursday, but its name, destination and the number of people on board had not yet been ascertained.

He told reporters that "So far, we have reports that nine people, four Singaporeans, four Filipinos and one Kenyan, drowned.

Xstrata appoints adviser on possible Macarthur bid

Australian Financial Review without citing anyone reported that Xstrata Plc appointed NM Rothschild & Sons Limited to advise on a possible takeover of Macarthur Coal Ltd.

The newspaper said talks are continuing though are thought to be in the early stages. Macarthur last week said a rival group had approached it about a possible transaction.

Mr James Rickards spokesman for Xstrata said We do not comment on speculation.

Talisman finds no iron ore at East Marra Mamba

RWE Australian Business News reported that Talisman Mining has found that an initial RC drill traverse along the existing track through the centre of the East Marra Mamba prospect, Wonmunna project, Western Australia has failed to intersect the expected iron formation.

Geological data had indicated a buried iron formation in this area but the drilling has negated this. The initial discovery of high grade blue ore float is now interpreted as a remnant of erosion of the overlying iron formation. Other than limited additional drill traverses to confirm the barren nature of the area no work will be done further.

At South Marra Mamba the initial drilling has indicated a potential mineralized iron formation which is larger than first interpreted from aeromagnetic data.

Waratah starts second phase of drilling at Nymboida project

Waratah Coal Inc announced that it has commenced the second phase of drilling at its Nymboida coking coal project at northern New South Wales in Australia. Results of the second stage drilling are expected within the next quarter. If drilling confirms a suitable resource, Waratah will look to expedite the project.

The second phase drilling program at Nymboida will target the Farquhar Seam which will be cored for coking analysis. Previous drilling and analysis of historical mining data has already shown the Farquhar seam to be of superior coking quality with Crucible Swelling Indices in excess of nine. The long planned second stage of drilling had been delayed for three months due to un seasonal weather. Establishing a suitable underground resource at Nymboida would allow Waratah to plan to take advantage of current record coking coal prices.

A report by independent consultants SRK has highlighted the potential for a resource at Nymboida, covering an area of 59 square kilometer centered on the old Nymboida Colliery of around 10 million tonnes of coking coal. Preliminary business modeling by Waratah indicates the project has high potential even at discounted coking coal prices.

Mr Peter Lynch president & CEO of Waratah said that "The Company would explore the northern extension of the historic mine area via a drilling program consisting of some 12 to 18 chip and part-cored holes over a 500 meter grid over an area of approximately 9 square kilometer.

He said that "An initial exploratory drilling program conducted last year at Nymboida was very encouraging and confirmed the presence of high quality hard coking coal to the south of the historic Nymboida Mine workings. In this second phase of drilling we will seek to determine how far the coal seam extends to the north."

Anglo Coal averts strike at Maura mine

Anglo Coal has released a statement following averted strike action at their Moura mine in central Queensland. Anglo Coal said that workers were concerned about mining near the bodies of workers who were killed in an explosion over a decade ago.

The mining company held urgent talks with the CFMEU and agreed on a respectful and appropriate buffer around the area.

Anglo Coal said that it is extremely conscious of protecting the number two area, where the bodies of 11 miners are buried. It said that it is in into the area of concern.

Macarthur Coal shares rise on Xstrata bid talk

AAP reported that shares in Macarthur have rose on the back of market speculation that Xstrata Coal could make a bid for the company. Macarthur shares were up 4.2% or 71 cents to AUDD 17.61 in late trading.

Macarthur said that it had received an approach from a third party, but that no formal written offer had been made.

Macarthur also recently appointed Mr Ian Fuller as a new CFO who was previously group financial controller at Xstrata Coal.

Macarthur Coal is developing a prospect at West Rolleston in central Queensland which just 25 kilometers west of the Rolleston mine, which is being developed by Xstrata.

Sino Australian JV to apply for alumina refinery license in Laos

Platts reported that Sino Australian Resources a joint venture in Laos owned 51% by China Nonferrous Metal Industry and 49% by Australia's Ord River Resources plans to apply for an alumina refinery license in Laos.

The report added that bauxite feedstock for the alumina production will be produced at Bolaven Plateau in southern Laos, which has been explored by Ord River Resources.

Ord River Resources said the area could have one of the world's largest deposits of bauxite of 2 to 2.5 billion tonnes enabling production of 5 to 7 million tonnes per year of alumina.

Sino Australian Resources currently has rights to 70% of bauxite mined from one 66 square kilometer block in the Bolaven Plateau in southern Laos.

Griffin not to increase offer for Yukon Zinc

Bloomberg reported that Griffin Mining Ltd would not increase its USD 90 million stock offer for Yukon Zinc Corp which this week accepted a higher cash bid from a Chinese group.

Griffin in a statement said that Northwest Non Ferrous International Investment Co Ltd and Jinduicheng Molybdenum Group Ltd will pay 22 Canadian cents a share for Yukon, valuing the company at CAD 100 million

Griffin on April 18th 2008 agreed to buy Vancouver based Yukon for GBP 45.3 million to expand its mining operations into Canada. Griffin offered one share for every nine of Yukon.

Yukon owns the Wolverine project in northwestern Canada that produces zinc, silver, copper, gold and lead and has a 60% interest in the Caijiaying mine in China. Annual zinc concentrate output from the two mines is likely to exceed 150 million pounds when Wolverine reaches full production.