MECON helping preparation of Vision 2020 of SAIL

Steel Authority of India Limited, which has set its sights on producing 45 million tonnes of hot metal by 2020 and is preparing a plan document 'Vision 2020' to enhance its production from the existing 15 million tonnes per annum to 45 million tonnes in the next 12 years, is utilizing the expertise of Ranchi based steel plant consulting major state owned MECON Limited.

Mr SK Roongta chairman of SAIL recently said that SAIL has hired the services of Ranchi based consultant firm MECON for preparing Vision 2020.

He said that "MECON has conducted a feasibility study of expansion of 5 integrated steel plants at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur and concluded that the production of hot metal could be increased to 45 million tonnes by 2020.”

Mr Roongta informed that “We had already set our growth plan till 2010, whereby we intend to take the production to 27 million tonnes. In the next 10 years beyond 2010, we are hopeful of increasing the hot metal production by another 18 million tonnes. This includes another green field project of 12 million tonnes per annum."

According to Mr Roongta, SAIL will focus on alternative iron making technologies to achieve the targets, as they have the advantage of more compact configurations.

TATA Group plans shipping foray to meet captive needs

CNBC-TV18 reported that TATA Group is planning on have its own shipping company that will offer logistical services to all TATA Group companies.


CNBC-TV18 learnt that currently the thinking within the group is that all the group companies will invest money into this company to buy ships and set up full fledged transport capabilities. Interestingly, TATA Steel already has a 50:50 JV with Japanese shipping major NYK. That company currently has a fleet of 6 vessels. Also TATA Power has just sought shareholder approval to raise INR 4,000 crore to enter the shipping business.

TATA Steel transported about 4 million tonnes of materials to various parts of the world in 2007, including coking coal from Australia to the east coast of India, met coke from Japan and China to India, limestone from Iran, Thailand and Yemen to India, ferroalloys and chrome ore from India to China, Korea and Japan and steel from India to South East Asia, Europe and the US.

TATA Steel produces only about 6 million tonne of steel in India and over the next few years, that number is expected to jump to 15 million tonne when slabs and hot rolled coils produced in India will be sent to Natsteel plants across Asia and Corus plants across Europe and the US for value addition.

Also, over the next few years TATA Steel will have developed its mines in Mozambique and the Ivory Coast from where the company can bring coal and iron ore, some of that to India and some of that to Natsteel in Asia and Corus in Europe and the US.

Other TATA Group companies like TATA Power, TATA Metaliks and TATA Motors will need large transport capabilities as they scale up and go global. And that's where the group shipping company comes in.

SAIL RMD seeking tie up with NMDC for mining growth

It is reported that Steel Authority of India Limited has entered into a tie up with Mineral Exploration Corporation Limited to undertake exploration and prospecting of its mines to meet the growth plan.

SAIL’s Raw Materials Division of SAIL, which caters to the need of the SAIL steel plants in the eastern region, has been gradually increasing the production and has a target to produce 18.2 million tonnes of iron ore in the current fiscal.

Mr AK Singh an official spokesperson of SAIL said that new mines are proposed to be developed at Chiria, Rowghat, south block of Kiriburu, central block of Meghahatuburu, Taldih and Thakurani. Moreover, it has also drawn up major expansion of the existing mines at Gua, Bolani and Barsua.

According to Mr Singh, SAIL is going to introduce world class technology in Chiria mine to increase the iron content of ores. Capacity expansion of Gua ore mines is on the anvil. The iron ore mine at Kiriburu will be developed from its present 4.25 million tonnes to 5 million tonnes.

Indian steelmakers to meet PM today

It is reported that India’s leading steel producers will meet Dr Manmohan Singh prime minister o India to discuss pricing issues and other matters related to the industry.

Indian government recently decided to impose an export duty on steel products following a sharp rise in the prices of the metal and its increasing demand-supply mismatch.

POSCO India CMD calls on Orissa chief minister

SNS reported that Mr Soung Sik Cho CEO of POSCO India has met Mr Naveen Patnaik chief minister of Orissa and discussed about the measures required to be taken by the state government for its steel project.

Mr Cho said "We are keen to start the steel plant project soon. But we are waiting for the clearance from the Supreme Court for the forest diversion."

Mr Cho's meeting with Mr Naveen assumes significance following continuing violence and trouble in the project areas. Earlier, the proposed ground breaking ceremony for the mega steel plant, scheduled for April 1st 2008, was deferred indefinitely in view of the delay in obtaining certain procedural sanctions.

Mr Cho however requested Mr Patnaik to make easy diversion of forest land to ensure acquisition of land for the project in coastal districts of Jagatsinghpur in eastern Orissa. The matter with regard to diversion of a major amount of the government land earmarked for the steel plant project in Jagatsinghpur is pending before the Indian Supreme Court. While non diversion of forest land was delaying acquisition of Government for the project, POSCO had so far not been able to acquire private land due to people's opposition to displacement.

Mr Cho also impressed upon the chief minister about the state government's recommendation to the centre about grant of prospecting license with regard to the Khandadhar iron ore mines in Keonjhar district. He expressed hope that the bottlenecks will be removed soon paving the way for the smooth implementation of the project.

BSL cut CR and HDG prices on lower duty

ET reported that Bhushan Steel Limited has decided to cut down the prices of cold rolled coils and galvanized sheets by nearly INR 500 per tonne. The move is linked to a price reduction by basic steel producers after the government provided duty benefits to the sector.

Mr BS Johri finance director of BSL said that "The impact of duty benefits given to primary steel makers by the government is far more than INR 500 a tonne. The price cut should be more. No matter what the reduction is, it would be passed on to the end users. We are looking at reducing prices of galvanized sheets by almost INR 500 per tonne."

He added that since Bhushan Steel depends on imports of raw material for making CRC, any decision to cut prices of CR steel would be a result of global price movements.

JSW Steel and Ispat Industries have also slashed prices of HRC and galvanized products recently.

SRMB plans a steel plant at Purulia

SRMB Udyog Limited announced that it is planning backward integration including steel making and has applied for iron ore mines to manufacture steel.

Mr Ashish Beriwala of SRMB said that the steel plant would come up in Purulia and that it has applied for iron ore mines in Orissa. He added that Work for setting up the plant is in a preliminary stage.

Mr Beriwala said that at present, SRMB sources billets for making TMT bars from SAIL and private companies.

SRMB has increased its production capacity to 30,000 tonnes per month from 20,000 tonnes at its 3 facilities at Durgapur, Paharpur and Dankuni. It has projected a turnover of INR 1,100 crore in the current fiscal as against INR 500 crore in the previous year.

Salzgitter forms sales JV in India and opens office at Mumbai

Düsseldorf based Salzgitter Mannesmann International GmbH, eying the growing demand for steel products in the region, has strengthened their presence in India by opened their first office at Mumbai in the beginning of April 2008.

The opening ceremony was held in presence of Dr Leese CEO of Salzgitter AG, which is the parent company of Salzgitter Mannesmann International, accompanied by board members, representatives of SMID and of course by customers and suppliers of Salzgitter in India.

The new company Salzgitter Mannesmann Pentasteel International (India) Pvt Ltd is a 50:50 JV with Mumbai based Pentsteel their exclusive agent in India for a long time. Both the companies will be involved in running the operations.

The release said that in addition to their existing activity of exporting steel products from India, this JV will focus on sale of imported steel products, which are not sufficiently produced in India to end users directly. It said that “Focus would on all the industry sectors with special attention to shipbuilding, engineering, white good industry as well as the automotive sector.”

Shyam Steel to set up integrated steel and cement plant in MP

BS reported that Kolkata based Shyam Steel Industries will set up a Greenfield integrated steel and a cement plant in Madhya Pradesh with an investment of INR 1,000 crore and has recently signed a deal with the Madhya Pradesh government on this regard.

A Shyam Steel Industries official said that "The Madhya Pradesh cement and steel plants will have a 1 million tonne capacity each. It also has plans to set up a 500 MW captive power plant. We will produce TMT steel bars in the plant.”

He added that “It has applied for iron ore mines in Madhya Pradesh and Chhattisgarh and the state government has assured providing land if the company faces difficulty in land acquiring."

The new investment plan is part of Shyam Steel's expansion program and is in addition to setting up similar plants in Purulia and Kharagpur in West Bengal with a combined investment of INR 3,000 crore.

IPI pipeline project infeasible for now – US experts

Ms Christine Faire a senior political scientist at the think tank Rand Corporation said that the proposed Iran Pakistan India pipeline is absolutely infeasible in the foreseeable future because financial, political, legal and security circumstances do not support it.

Ms Faire said that "None of the 3 countries involved in the talks have the resources to fund the pipeline. There are serious security concerns, especially because it passes through Baluchistan in Pakistan. Virtually no public or private consortiums would want to build it because there is now also the issue of Iran's nuclear quest."

Mr Robert Johnston of the Eurasia Group was quoted as saying that the deal between Iran and India may not happen for at least a decade or two given the rising domestic demand in Iran. He said that Iran will also have to take a strategic decision on how it wants to expand its gas production and which projects bring in most money. He added that "Ultimately Iran will find better projects for its gas. Two other options which are most attractive are either developing pipelines to Western Europe via Turkey or developing the LNG market in Asia."

Kesoram Industries suspends work at spun pipe foundry

Diversified firm Kesoram Industries Limited recently announced that it has suspended work at its spun pipes and foundries unit in West Bengal with effect from May 2nd 2008.

The unit has been suffering from daily low production, quality problems and high rejection, which led to a serious financial crisis.

PFC to lend INR 1,800 crore for renewable energy projects

It is reported that Power Finance Corporation is expected to lend over INR 1,800 crore to renewable energy projects, including wind, bagasse based power and solar energy.

As per report, PFC will lend INR 1,200 crore in Tamil Nadu to support around 250 MW of biomass based power projects in the state. It will also assist 2 wind farm projects in Maharashtra aggregating 125 MW, including a 100 MW farm in Satara district. For the two projects, PFC will lend INR 615 crore.

In West Bengal, a PFC assisted 2 MW solar power project is likely to start operations by June 2008. The project for which PFC has sanctioned INR 31 crore is being implemented by West Bengal Green Energy Development Corporation.

Meanwhile, PFC witnessed sanctions more than doubling to INR 69,498 crore during 2007-08. Disbursements, at INR 16,211 crore during 2007-08 grew up by 15% YoY. As of March 31st 2008, cumulative sanctions and disbursements stood at INR 186,418 crore and INR 92,065 crore, respectively.

Essar Shipping lines up USD 800 million CAPEX to buy 14 ships

BL reported that, Essar Shipping Limited, which is going through an elaborate re organization program to become an integrated shipping and logistics company, has lined up a capital expenditure program of about USD 800 million to acquire 14 ships between 2008 and 2011. It has also been renamed as Essar Shipping, Ports & Logistics Limited as part of the ongoing re organization drive.

The proposed acquisitions include 2 Supramax vessels worth USD 145 million which are scheduled to join the company’s fleet in June and July 2008. The remaining 12 new building orders are for 6 Supramax carriers and 6 mini cape size vessels.


Mr V Ashok whole time director of Essar Shipping said that the fund for the planned investment would be raised through a mix of debt and equity, with the debt component being about 75% to 80%. He added that "The re organization program has already been launched and we expect to complete the process by September 2008."

At present Essar Shipping has a fleet of 25 vessels, including 2 very large crude carriers, 5 cape size vessels, 11 mini bulk carriers and 1 product tanker that is due for scrapping.

Essar Shipping has also drawn up investment plans in the port sector. This includes setting up of an INR 750 crore all weather deep draft port at Hazira for import of iron ore, pellets, coal and limestone, apart from export of finished steel products. Also in the pipeline is an integrated terminal facility at Salaya for handling coal and pet coke at a cost of about INR 550 crore.

HPCL changes location of wind power project

It is reported that Hindustan Petroleum Corporation Limited has changed the location of its 25 MW power plant from Dhule district in Maharashtra to Jaisalmer in Rajasthan following protests by farmers.

Hindustan Petroleum has in principle agreed to shift the present operations to Jaisalmer and complete clearance for the project will come by mid May 2008. The project will entail an investment of INR 145 crore.

IVRCL bags Godavari Delta Canal System contract

IVRCL Infrastructure & Projects bagged orders worth INR 468.59 crore from Andhra Pradesh irrigation and CAD department, under the modernization of Godavari Delta Canal System. This includes

1) INR 134.35 crore contract for modernization of Godavari Delta system, Narsapur Canal and its distributory system in West Godavari district

2) INR 111.65 crore contract for modernization of Godavari Delta system, Yanamadurru Drain in West Godavari district

3) INR 98.26 crore contract for modernization of Godavari Delta system, Eastern Delta, Godavari Eastern Main Canal and Samalkot Canal and its distributory system

4) INR 124.33 crore contract for modernization of Godavari Delta system, Eastern Delta, Kakinada Canal and KMJ Canal and its distributory system

TATA and NALCO to form aluminum JV in South Africa

NDTV reported that TATA's South African unit is in talks with National Aluminum Company to form 49:51 JV to set up a 1 million tonne aluminum plant in South Africa.

The total investment for this aluminum plant will be about INR 10,000 crore which will help the TATA group to create a synergy with its car manufacturing business in Africa.

Sources suggest that TATA and NALCO might set up a captive power plant for the aluminum mill. NALCO is also talking to South African government for captive bauxite mines.

It is expected that TATA's base in South Africa can help NALCO get a foothold there and NALCO's own manufacturing skills will come in handy.

Scrap prices in US likely to erupt

According to calculations posted by the American Metal Market, the May delivered price for scrap steel from auto stamping plants increased USD 135 per gross ton, bringing the revised price to USD 690. As market prices for heavy melting, busheling and shredded grades of scrap generally follow auto bundle trend within two weeks, prices for scrap are about to erupt.

In analyzing the revised run up of USD 290 from USD 400 in March, analyst Ms Michelle Applebaum in Chicago told clients that “The substantial hike was a result of the limited availability of prime scrap due to the American Axle & Manufacturing strike, weaker manufacturing output especially automakers and high prices for scrap alternatives such as pig iron and HBI which are ore based and are selling for similar prices on an iron unit equivalent’ basis.”

Ms Applebaum added that there’s also a chance that some mills may be pre buying scrap since industrial output typically declines for summer vacation shutdowns and reduced auto bundle scrap supply.

Ms Applebaum is very bullish that the auto bundle numbers will be indicative of increased future prices for US market scrap and finished steel prices.

Usiminas bullish on domestic demand despite drop in sales

BNamericas reported that Brazilian steelmaker Usiminas remains upbeat about the local economy and steel demand despite seeing sales volume fell by 3% YoY to 1.9 million tones in Q1 of 2008 compared to the same period in 2007.

Mr Paulo Penido a Usiminas spokesperson in a conference call on Monday said that “In the quarter, production was impacted by 100,000 tonnes as production was temporarily halted due to modernization projects at the company's plant at Cubatão in São Paulo state.” He added that modernization projects should be completed by early June at the latest.

According to Mr Penido, the good news in the first quarter is that net revenues rose 7% and EBITDA was 6% higher versus the same period in 2007 despite rising production costs. Net profits also went up 1% to BRR 646 million (USD 390 million).

He said that "The Brazilian economy is presenting a strong expansion rhythm. In the first quarter, steel consumption increased 19% and automobile sales rose 23% YoY. Construction in Brazil also rose 24% against Q1 of 2007. Roughly 80% of Usiminas' sales are to the domestic market. Penido expects continued strong demand with a slight risk of inflation and an increase in interest rates.”

For Q2 of 2008, Mr Penido expects that Usiminas' production to reach 1.8 million tones while full year 2008 output is slated at 8 million tones.

Around the world, Mr Penido said that European and Asian markets seem favorable but are affected by raw material prices. The US market is still feeling the impact of an economic slowdown but steel prices there remain strong at some USD 1,230 per tonne.

Mr Chávez makes deal with Sidor workers

Mr Hugo Chávez president of Venezuela announced that he reached an agreement with representatives of the Single Trade Union of Iron & Steel and Related Industries.

A presidential palace release said that "We resolved already the collective bargaining agreement of Sidor workers. The agreement was reached. I think we smashed a record also, it was very fast.”

The president noted that the government endorsed the collective bargaining agreement even though it has not yet the technical, financial or legal control over Sidor.

Siderar Q1 net profit jumps by 87.5%

Argentine steelmaker Siderar SID.BA first quarter net profit rose by 87.5% to ARA 566.1 million (USD 177.6 million) due in part to higher sales.

Siderar is majority owned by Ternium SA which is controlled by Argentina's Techint conglomerate and has steel operations in Mexico.

Corus IJmuiden launches MagiZinc®

International steel producer Corus announced that it is launching a new hot dip zinc based metallic coating with superior corrosion properties.

The new product MagiZinc consists predominantly of zinc, with additions of both magnesium and aluminium. Because of the better corrosion protection of MagiZinc as compared with conventional zinc coatings, this offers the opportunity to reduce the metallic coating weight while still improving the properties of the material. This makes thinner and lighter coating layers possible resulting in up to 4% more m2 per tonne material for the end customers. First aim will be to replace products with a 275 g/m2 zinc coating with a MagiZinc coating of 140 g/m2. Even thinner coating layers are under development.

Corus release said that “In tests where corrosion behavior has been accelerated, corrosion resistance showed to be at least four times as effective for the same coating thickness as products galvanized with zinc alone. The trade name for this state of the art product, manufactured at Corus in IJmuiden in the Netherlands is MagiZinc®.”

MagiZinc provides significant savings for customers in total costs for all applications that currently use thin hot-dip galvanized steel with a zinc coating of 275 g/m2. The great improvements in corrosion performance made possible with MagiZinc can be used in for example the construction industry. Applications are, amongst others, channels for ventilation systems and cable trays in large commercial and residential buildings. MagiZinc can also be applied in the automotive sector.

After lab scale and pilot line trials by Corus’ R&D department, Corus went on to optimize the coating in a number of production trials in cooperation with development partner Salzgitter AG. In conjunction with this, material application trials including forming and joining were carried out at selected customers with good results.

Global scrap price reach USD 700 levels in SEA

Global scrap prices have continuously broken new highs.

As per report American price of H1 scrap has reached as high as USD 700 per ton for East Asia market. In Taiwan market, China Steel Corp bought bonus scrap at USD 760 per tonne on CIF basis.

According to Japan’s traders, P&S scrap price exported to Taiwan is at USD 720 to USD 730 per tonne and the highest quote price of bonus scrap is at USD 750 per tonne.

South Korean Hyundai Steel bought H1 scrap from America Sims Group at the price of CFR USD 678.5 per tonne CFR recently and the quote price has hit USD 700 per tonne.

(Sourced from YIEH.com)

Ternium Q1 net sales up by 35% YoY

Ternium SA announced its results for the first quarter ended March 31st 2008. Operating income was USD 434.9 million in the first quarter 2008 up by 46% MoM as compared to the fourth quarter 2007, mainly as a result of higher steel prices partially offset by higher costs and lower volume.

Its shipments decreased by 3% QoQ in the first quarter 2008 when compared to the fourth quarter 2007, as lower shipments in the South & Central America Region that resulted from the work stoppages at Sidor were partially offset by higher shipments in the North America Region. Ternium's operating income increased 5% in the first quarter 2008 when compared to the first quarter 2007. Excluding the effect of the consolidation of Grupo Imsa, operating income decreased slightly year over year, as higher costs and lower volumes were partially offset by higher steel prices.

(In USD million)

Ternium’s net income during the first quarter 2008 was USD 483.6 million, an increase of 119% QoQ as compared to the fourth quarter 2007. The sequential increase in net income was due mainly to higher operating income and two non recurring items. Its net sales were USD 2.4 billion in the first quarter 2008, an increase of 7% QoQ as compared to the fourth quarter 2007. Net sales increased sequentially mainly as a result of higher revenue per ton partially offset by lower shipments. Excluding the effect of the consolidation of Grupo Imsa, net sales increased slightly year over year in the first quarter 2008 mainly due to higher revenue per ton partially offset by lower shipment levels as a result of the work stoppages at Sidor.

Supply panic pushes oil over USD 122

Oil futures blasted to a new record over USD 122 a barrel on Tuesday, gaining momentum as investors bought on a controversial forecast of much higher prices and on any news hinting at supply shortages.

Light, sweet crude for June delivery jumped to a new record of USD 122.47 a barrel before retreating slightly to trade up USD 1.29 at USD122.26 on the New York Mercantile Exchange. In London, June Brent crude futures rose USD 2.59 to USD120.72 on the ICE Futures exchange.

The surge is contributed to a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed.

HR and CR prices in US are up by 57% from December

Purchasing.com reported that despite weak end market demand in North America, flat rolled steel prices have increased persistently in 2008 as hot rolled sheet steel and cold rolled sheet cost 57% more than in December, with more increases set for the second quarter.

Purchasingdata.com now is predicting that hot rolled sheet will cost as much as USD 1,150 per ton in July up from USD 850 in April 2008 while cold rolled sheet will cost buyers USD 1,225 up from USD 929 in April 2008.

It added that not only are steelmakers seeking USD 1,000 for May spot sales of hot rolled sheet steel, some now are seeking to add raw material surcharges for sheet deliveries to contract customers. Steel producers insist they have healthy sheet order books, which indicates to them a balanced market. They say end use demand is strong and stable.

There are few buyers or economists who agree as survey after survey finds domestic demand for steel, nonferrous metals and other industrial materials is poor with companies only buying what they can use quickly.

Still, the projected record-high steel prices 116% higher than the cyclical low of last August will come from increased energy and iron unit costs, market tightness caused by slow delivery by mills and reduced imports at a time when steel producers are exporting more.

Rautaruukki to streamline engineering operations in Hungary

Rautaruukki’s engineering division, Ruukki Engineering is to streamline operations at its Hungarian unit Ruukki Tisza Zrt to improve profitability.

It said that “Better profitability will be sought by cutting overheads and by improving organizational function. Efficiency actions are part of the division’s productivity and profitability improvement program, which aims at improving the division’s operating profit by EUR 20 million in 2008. Overheads will be cut to lower the unit’s cost structure. It has been agreed to cut the number of white collar jobs by a total of 190 during the course of this year and next. Reducing relates to the administrative staff.”

The release added that “A new enterprise resource planning system will be introduced at the Hungarian unit as part of efficiency improvement actions. Deployment of Ruukki’s common systems and ways of working at the unit will reduce overlapping work and simplify administrative structures.”

Mr Tommi Matomäki president of Ruukki Engineering said that the Hungarian unit has an important role in our growth strategy. A new organizational structure and the introduction of new systems call for different skills than earlier. This means staff retraining and adjusting staff numbers to improve profitability. We’re offering employees an opportunity to retrain for new jobs on the production side at Ruukki Tisza Zrt.

Rautaruukki acquired a majority stake in Ruukki Tisza Zrt in May 2007. The company has production sites in Jászberény and Hatvan in Hungary and is part of Ruukki Engineering division. Ruukki Tisza Zrt has 992 employees, including hired in workers.

Southern Steel Q1 profit up by 755%YoY

It is reported that Malaysia’s Southern Steel Berhad has posted a 755.8% YoY jump in first quarter pre tax profit in line with the spike in international steel prices. Its profit for the three months ended March 31st 2008 soared to MYR 107.647 million (USD 33.6 million) from MYR 12.579 million in Q1 of 2007. Revenue jumped by 49.7% YoY to MYR 838.035 million from MYR 559.546 million.

Southern Steel in a filing to Bursa Malaysia on May 5th 2008 attributed its robust performance to international steel prices which continued its unabated upward trend. The board expects the results of the current financial year to further improve.

It said that "There appears to be continued material supply shortages and price pressure despite the threat of a major US recession. But it cautioned that a possible slowdown in the implementation of some major projects in the domestic market may pose some concern. These pose uncertainties and challenges in assessing the direction of the market.”

Sidetur's Q1 sales rise by 14% YoY

The long producer in Venezuelan Sidetur revenue in the Q1 reached USD 127 million up by 14% YoY.

Sidetur said that the increase is due to strong international market and government projects in housing and infrastructure sectors.

(Sourced from YIEH.com)

Mr Abdullah becomes chairman of Mycron Steel

Mycron Steel Berhad announced the re designation of Mr Tunku Dato' Ya'acob bin Tunku Tan Sri Abdullah as chairman of the Company, effective May 2nd 2008.

Mr Abdullah was previous non independent & non executive director of Mycron Steel.

US weekly crude steel production decrease by 0.8% YoY

American Iron & Steel Industries reported that in the week ending May 3rd 2008, US’s raw steel production was 2.098 million net tons while the capability utilization rate was 88%. Production was 2.117 million net tons in the week ending May 3rd 2007, while the capability utilization then was 88.3%. The current week production represents 0.8 % decrease from the same period in 2007.

Production for the week ending May 3rd 2008 is down 0.9% from the previous week ending April 26th 2008 when production was 2.118 million net tons and the rate of capability utilization was 88.8%.

Adjusted YTD production through May 3rd 2008 was 37.454 million net tons at a capability utilization rate of 88.6%. That is a 3.5% increase from the 36.157 million net tons during the same period last year, when the capability utilization rate was 85.1%.

District wise production for the week ending March 15th 2008
1. Northeast Coast: 174
2. Pittsburgh/Youngstown: 216
3. Lake Erie: 91
4. Detroit: 115
5. Indiana/Chicago: 520
6. Midwest: 240
7. Southern: 646
8. Western: 96
(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

MSCI creates 2 new membership categories

Directors of the Metals Service Center Institute have created new membership categories for internationally based metals trade associations and for large trading companies engaged in the North American metals marketplace.

A member task force, chaired by Mr Michael H Hoffman president & CEO of Macsteel Service Centers USA, recommended the new membership category for non North American metals industry trade associations to give members more networking opportunities and to open MSCI education programs to the international groups.

Membership will be open only to trade associations that themselves have metals industry company members. Although representatives of the trade associations will be permitted to attend MSCI programs, individual member companies from non-North American associations will be permitted to attend only if they join the institute itself as international members. It said that trading company membership, adopted as a subcategory of the broader Associate, or producer, membership category, will be limited to North American companies with annual revenue of at least USD 50 million.

Mr Norman E Gottschalk Jr president of Marmon/Keystone Corporation and MSCI’s chairman said that “These new types of membership are consistent with the institute’s long term plan to be the premier trade association within the metals industry. The new membership categories also reflect the increasingly global nature of the metals industry.”

Mr M Robert Weidne, III president & CEO of MSCI said that “MSCI already has the broadest and most diverse membership of any significant metals industry trade association, with members that are producers, service centers and companies that provide goods and services to them. By further opening membership to the major metals trading companies and to trade associations based overseas, we add diversity and respond to membership requests that we previously could not honor.”

POSCO announces 99% stake acquisition of DWEMEX

POSCO announced that Daewooengineering Company Co Ltd, which is 88.7% owned by its subsidiary POSCO Engineering & Construction, has acquired a 99% stake in DWEMEX SADE CV on May 6th 2008.

WCI Steel increases base price by USD 75 per ton

WCI Steel Inc announced that effective immediately on new orders accepted, it will implement a minimum base price increase of USD 75 per ton. With this announcement, WCI Steel’s transaction base prices ex works are as follows:
1. HR Sheet (C<.30 max) – USD 1,125 per ton
2. CR Sheet (C<.30 max) – USD 1,225 per ton
3. Hot Dipped Galvanized USD 1,245 per ton

Appropriate extras are in addition to the above base prices.

MSCI adds seven new directors

Seven metals industry leaders have been elected directors of the Metals Service Center Institute replacing seven directors who have retired from the board.

The new directors include:

1. Mr C Lourenco Goncalves chairman, president and CEO of Metals USA Holdings Corp
2. Mr Brian R Hedges COO of Russel Metals Inc
3. Mr James D Hoffman COO the Earle M Jorgensen Co
4. Mr Steven F Ambrose director sales wide flange beams of Gerdau Ameristeel Corporation
5. Mr Ladd R Hall executive vice president flat rolled products of Nucor Corporation
6. Mr David Britten senior vice president steel of IPSCO Inc
7. Mr Barry Zekelman president & CEO of John Maneely Company

Mr Norman E. Gottschalk Jr MSCI’s chairman and president of Marmon/Keystone Corporation said that “The directors who are leaving our board have all served with great distinction and we thank them for their service to the institute and the industry.”

Mr Robert Weidner III president & CEO of MSCI said that “We are honored that these seven seasoned business executives have agreed to join the board. He added that “One of our greatest assets is our board, and we are fortunate to have the counsel and experience of these industry leaders as we forge into our next century.”

Base metal prices plunge last week on LME

The strong appreciation of US dollars has led all base metal prices to drop last week.

The three month price of nickel decreased by 3% to USD 28,400 per tonne

The three month price of zinc also dropped by 3.7% to USD 2,220 per tonne

The three month price of aluminum decreased by 3% to stand at USD 2,920 per tonne

The three month price of copper also experienced a drop of 2.8% to USD 8,410 per tonne

Analysts think the US dollars fluctuation will dominate the metal price this week.

Metso launches a new mobile waste crusher

Metso Minerals announced that it will launch a new track mounted, mobile device for on site waste crushing. The prototype CR ®225 LT will be launched at the IFAT 2008 waste management exhibition the world's largest environmental fair with 2.300 exhibitors on 192.000 m2 in Munich on May 5th to 9

Metso Minerals' new solution for primary waste crushing combines features of its Lokotrack track mounted crushing plants and the Lindemann series of waste crushing equipment. The result is a highly flexible crusher that can operate independently of electricity and road networks for up to three days of operation with no need for refueling. It can serve a number of locations, can be integrated flexibly in a machine assembly or can also be leased out at short notice.

The new waste crusher has been designed both for difficult areas and extreme inclines, as well as for difficult materials such as mattresses, carpets, railway sleepers, tree trunks and even thick rolls of paper. Average throughput is between 30 and 50 tonne per hour depending on the type of household, commercial and industrial waste as well as wood waste and the crusher type.

Efficient crushing of bulky waste is crucial for the availability of the entire waste processing plant, as well as for the performance of the downstream sorting and separation technology. The machine will also serve well in waste collecting and demolition sites as well as in forests or for agricultural purpose to reduce bulky waste and other bulky residue. Future demand for rebuilding of landfills so called urban mining will be also a perfect playground for this crusher.

With the mobile waste crushing solution, Metso is responding to the European demand for efficient and flexible waste management solutions. Metso Minerals plans to start serial production of the crusher in 2009.

Kentucky Electric Steel reaches labor agreement

The United Steelworkers Local 7054 and Kentucky Electric Steel have reached agreement on a new labor contract. The new agreement was overwhelmingly ratified on May 4th 2008 vote and will take effect immediately.

The 5 year agreement replaces the current contract which was set to expire on December 8th 2008. The contract covers the 118 hourly personnel at the mini mill near Ashland in Kentucky.

Mr John Scheel plant manager Electric Steel said that “The successful conclusion of early negotiations is clear evidence of the commitment of each and every person here at KES to our customers. Both the Union and the Company wanted to send an unmistakable message to our customers that we want them to know that the continuity of supply and service experienced over the last five years will only continue to improve over the next five years.”

Egypt to import steel rebars to control domestic prices

Daily Star Egypt reported that, as domestic steel prices in Egypt continue to rise, Egypt’s General Federation of Cooperatives has revealed plans to import steel rebars at prices lower than those of domestic market.

Mr Ahmed Abdel Zaher head of General Federation of Cooperatives said that "Our Construction & Development Committee received complaints that small contractors are going bust as a result of ongoing steel hikes. Therefore, the committee had to resort to importing steel from other steel exporting countries such as Ukraine, which could save between EGP 1,200 and EGP 1,800 per tonne."

Mr Hamed El Tohamy head of the Federation’s Production Committee said that "Steel prices are extremely volatile on the domestic market. If today a ton of steel sells at EGP 6,000, tomorrow it will sell at EGP 6,500. Everyone, merchants, dealers, and contractors, they are confused. No one can predict the next day’s price."

He added that "We want a price that remains fixed for at least two months. Before making a deal, a contractor needs to be able to determine prices of steel beforehand. However, that is not possible these days because prices have become patchy."

According to Mr El Tohamy, the Federation’s Production Committee members constitute 80% of Egyptian contractors. He pointed out that the Federation currently buys its steel supplies from local merchants and not producers, which makes it subject to price manipulation. He said that "Local merchants raise prices as they please. That is why the government should step in and fix prices for at least 2 months. We want to buy steel at proclaimed prices." He added that the Federation will within the next few weeks import several tons of steel, which will be for its internal use only and not subject for market use.

Steel prices in Egypt have recently soared to an average of EGP 6,000 per tonne, with experts estimating further hikes in the summer. Ongoing upsurges in domestic steel prices have been fueled by hikes by El Ezz Steel, which controls a solid 65% of the market. El Ezz Steel has reportedly introduced its latest price upsurge on May 3rd 2008, putting its local ex factory price for rebars at EGP 5,700 per tonne up from EGP 5,080 per tonne in April 2008. This is the company’s fourth price increase since the beginning of the year.

US ITC to conduct sunset review on rebars from Turkey

The US International Trade Commission has voted to conduct a full five year sunset review concerning the antidumping duty order on steel concrete reinforcing bar from Turkey.

As a result of today's vote, the Commission will conduct a full review to determine whether revocation of this order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.

Algerian government approves new steel plant project

El Khabar reported that the national council of investments has approved 10 investment projects in Algeria during the 34th session that has been chaired by the Prime Minister Mr Abdelaziz Belkhadem. The projects have been approved following the conventions concluded between the national agency for investments promotion and some foreign multinational companies.

According to a statement issued by government, a convention has been sealed between the national agency for investments promotion and Trust Investment for a tourist complex construction at Bab Ezzouar, while another convention has been concluded with Ardis, in view of creating a distribution chain.

In this regard, the national council for investments has approved 2 desalination stations projects in Tlemcen western province, both projects have been scheduled in the framework of a convention linking the national agency of investments promotion and the Spain Algerian water company.

Moreover, the council has approved some draft conventions to be stricken between the agency and the Turkish company Tosyali for the realization of a steel plant and another one in Oran western province, while a company in charge of planning, constructing and managing trade centers and meeting places will be opened in Algiers.

A steel plant is to be constructed in Jijel eastern province and wholesale fruits and vegetables market in Boumerdés central province. An ammonia and urea production plant is scheduled to be realized in Oran western province too. Also, industrial vehicles body structure complex will be built in Tiaret.

Dolphin to invite tenders for Taweelah to Fujairah Pipeline

Dolphin Energy Limited has announced that the priced tenders for the design & build of the forthcoming Taweelah to Fujairah Pipeline are due for submission by May 7th 2008.

Technical tenders have been accepted from 5 international construction companies, which have accordingly been requested to proceed to the commercial bid stage. They are
1) Al Jaber Energy Services – UAE
2) Consolidated Contractors International – Greece
3) Dodsal – India
4) Stroytransgaz – Russia
5) Saipem Snamprogetti – Italy

The Taweelah to Fujairah Gas Pipeline will be 48 inches in diameter and over 240 kilometers in length. It will link Dolphin Energy's gas receiving facilities at Taweelah with ADWEA Power and Water Desalination Plant at Qidfa. Site work is expected to begin towards the end of 2008.

In December 2007, Dolphin announced the award of the line pipe supply purchase order for the project to Salzgitter Mannesmann International, who is manufacturing the line pipe at the Europipe Steel Mill in Germany. The order is worth more than USD 200 million and some 120,000 tonnes of APT X70 grade 48 inch coated line pipe will be supplied.

Dolphin Energy currently supplies the Qidfa plant with up to 135 million standard cubic feet of gas per day via its Al Ain Fujairah Pipeline, which the company commissioned in January 2004. The new TFP pipeline will support ADWEA's proposed expansion and development program at Qidfa.

Dolphin Energy is owned 51% by Mubadala Development Company, on behalf of the government of Abu Dhabi and 24.5% each by Total of France and Occidental Petroleum of the USA.

L&T and Kanoo JV opens switch board unit in Saudi Arab

Larsen & Toubro International FZE and Yusuf Bin Ahmed Kanoo’s JV L&T Electricals Saudi Arabia Company Limited has inaugurated its switchboards manufacturing facility at Dammam Industrial Estate II in Dammam Saudi Arabia.

LTESA has built the Dammam manufacturing facility on a 15,000 square meters plot with an office and shop floor area of 7000 square meters. The facility has three air conditioned modules for manufacturing, having state of the art powder coating plant, CNC punching machine, CNC bending machine, testing kits and assembly area.

L&T Electricals Saudi Arabia Company Limited will engage in designing, engineering and manufacturing of conventional and intelligent power and motor control systems with automation in the Low Voltage and Medium Voltage categories, as well as offer project equipment comprising allied products, to Saudi Arabia’s infrastructure, oil and gas, and industrial sectors, said a statement.

Mr RN Mukhija president operations & member of the board of L&T said that “LTESA is poised to bring L&T closer to customers and offer solutions and service with enhanced efficiency in the fast growing market of Saudi Arabia. I am sure the association between L&T and Kanoo, two prestigious business institutions, will grow beyond business and strengthen the bonds between Saudi Arabia and India.”

The inauguration of the LTESA facility comes close on the heels of L&T completing the integration process of the switchgear facilities of Tamco of Malaysia, which it had acquired in October 2007.

Abu Dhabi to get metro network within 7 years – Report

UAE daily The National reported that a light rail network will be up and running in Abu Dhabi within 7 years, supported by a fast rail link between the capital and Dubai.

Mr Falah Al Ahbabi GM of Urban Planning Council said that a predicted growth of population in the capital to more than 3 million meant could not be sustained on private cars alone, and that the city would have its own metro by 2015. He added that "We know the urgency of this and know the demand coming in future. We want to see this up and running and it is a must to see it up and running within 7 years. What I can say is this is definitely going to happen."

According to Mr Al Ahbabi, a report due by the end of 2008 would detail the new system with work on a new railway line also beginning shortly afterwards. He said "We have to decide on the routes and whether it is going to be over ground or underground or both."

O&G Engineering wins oil pipeline contract in Kuwait

MEED reported that O&G Engineering General Trading & Contracting is the lowest bidder in KWD 5.7 million contract to build an oil pipeline linking transit line 3 and the Doha water and power generating complex in the north of Kuwait.

O&G's bid is 28% lower than the next best price of KWD 7.3 million from the local KCC Engineering & Contracting Company. The local Alghanim International General Trading & Contracting Company came third on price at KWD 7.9 million.

The lump sum engineering, procurement and construction job involves the installation of a 20 inch diameter and 25 kilometer long crude pipeline running between the new main crude export pipeline and the oil fired Doha East power and desalination plant. The pipeline is expected to be operational for 30 years.

The client, Kuwait Oil Company is expected to take about 3 months evaluating the bids before making an award.

Saudi Oger secures USD 400 million construction contracts

MEED reported that Saudi Oger has won two construction contracts totaling SAR 1.5 billion for work in Saudi Arabia. The client for both projects is the ministry of finance. Construction will begin within the month on both developments.

It has secured the SAR 914 million contract to build an administration complex for the ministry of finance, to be located in the Nakheel area of the capital Riyadh. Oger will also design and construct two aircraft hangers in Riyadh and Jeddah, in a second deal worth SAR 626 million.

Saudi Oger has also confirmed that it will be bidding for the Andalusia Towers, a mixed use project in Jeddah. The project is estimated to be worth USD 560 million. It includes two 60 floor towers and covers 500,000 square meters. Kinan International Real Estate Development Company is the client

Gulf Navigation takes delivery of new vessel

Gulf News reported that Gulf Navigation Holding recently announced that it has taken delivery of the Gulf Fanatir, a newly built vessel constructed at the Hyundai Mipo Dockyard in Ulsan in South Korea.

Contracted at a cost of USD 54.35 million, the new ship is the first of a series of four chemical carriers ordered by Gulf Navigation. With deadweight of 46,200 tonnes, a capacity of 54,300 cubic meters, 20 specially coated cargo tanks and classed as an IMO Type II chemical carrier, it will have the capability to carry a broad range of petrochemical products.

The addition of this vessel to the GulfNav fleet reaffirms its position as a regional leader in shipping and marine services. The vessel after delivery will be handed over to International Shipping Company, a subsidiary of SABIC on a 15 year time charter. This is the first of four vessels that will be chartered to SABIC for 15 years.

NPC inks MoU with Nagarjuna for a petrochemical complex in South Pars

It is reported that Iran's National Petrochemical Company and India's Nagarjuna Fertilizers & Chemicals Limited Company have signed a MoU worth EUR 400 million to build a petrochemical complex in South Pars gas field.

The complex is expected to produce 2,200 tonnes of ammonia and 3,800 tonnes of urea per day.

Daewoo Engineering chosen as preferred bidder in Algeria

Daewoo Engineering & Construction Company said that it was selected as the preferred bidder for a USD 650 million project in Algeria to develop a town in Algeria with South Korea's Samwhan Corporation and Woolim Company.

Daewoo Engineering will have a 50% stake in the project, with Samwhan holding 30% and Woolim 20%.

South Korean builders are expected to win record orders for a third year as economic growth and surging oil prices prompt increased spending on housing, refineries and infrastructure in the Middle East and Africa.

ArcelorMittal unlikely to succeed in acquire large stake in Angang

Interfax China cited an analyst as saying that ArcelorMittal is unlikely to succeed in its attempt to acquire a large stake in Chinese state owned steel mill Anshan Iron and Steel Group.

Mr Chen Kun an analyst with Sinosteel Futures said that "Foreign steelmakers face many difficulties when attempting to buy large stakes in domestic state owned steel mills, in terms of government policies and required funds. ArcelorMittal is no exception to this and will find it difficult to acquire its intended interest of up to 30% in Angang.”

Mr Chen said that "ArcelorMittal may be able to acquire a smaller stake in Angang, as Angang is publicly traded in Shenzhen and Hong Kong, but a hostile takeover will be impossible.”

The Chinese government tightly restricts overseas companies from acquiring large stakes in any of the country's key industries, including the steel industry.”

Located in northeast China's Liaoning Province, Angang produced 16.17 million tonnes of crude steel in 2007. It sources up to 80% of its iron ore from self owned mines. Angang has merged with Benxi Iron and Steel Group, but the two companies still maintain separate operations.

Upward trend for Chinese HRC price continues in May 2008

According to a Mysteel report, hot rolled steel coil prices will continue to move up on in China and the increase is expected to maintain for at least 4 weeks.

On Shanghai market, commercial 4.75 to 11.5mm1500mm HRC is being offered at CNY 5650 to CNY 5680 per tonne, 1800mm wide material at CNY 5900 per tonne. Low alloyed 7.5mm HRC goes at CNY 5750 per tonne, while 11.5mm thick HRC has jumped to CNY 6000 per tonne.

Mysteel forecasts that taking Shanghai price for commodity grade 4.75 to 11.5mm1500mm HRC as benchmark, it is going to approach CNY 6000 per tonne as long as it remains above CNY 5500 per tonne.

Export prices are also bullish at moment. Prevailing offers for commercial thick gauge hot rolled steel coil are at USD 930 to USD 950 per tonne FOB and some even have jumped to USD 960 to CNY 980 per tonne FOB. There is strong likelihood that quotations are going to reach about USD 1000 per tonne FOB if domestic price rise to CNY 6000 per tonne. Despite high export offers, transaction prices only see small increases. Most SS400 or Q235 HRC exports are being concluded at around USD 900 per tonne FOB for shipments to South Korea, Japan and South East Asia.

While delivery to the EU normally requires higher price, Italy is said to be the hot destination in Europe for Chinese HRC exports. A North West China based steel makers tells Mysteel that it has just concluded 15000 tonnes to 20000 tonnes S275JR HRC exports to Italy at USD 920 to USD 930 per tonne FOB, July 2008 shipment.

Trading sources said that there have been fewer shipments to South East Asia following dramatic imports. Some traders are transferring the former signed HRC to other areas by quoting FOB South East Asian ports. It is noticeable that whether South Korea and the EU would continue to purchase Chinese HRC at updated prices. If transactions start to decrease sharply since May 2008, the upward trend of HRC export price probably would pause in the near future.

(Sourced from MySteel.net)

Mexico ends AD probe into seamless tubes from China

The investigation period was January 1st 2005 to June 30th 2006.

Tubosde Acerode Mexico SA had filed an application to the ministry for carrying out an investigation into seamless steel pipe imported from China on June 2nd 2006. The ministry announced its decision to wage the investigation on September 1st 2006. On March 26th 2007 the ministry said it would not levy an AD duty on the product yet and would continue the investigation.

The product under investigation are covered under HS Code of 7304.39.05, 7304.39.06 and 7304.39.99)

(Sourced from MYSteel.net)

Wuhan Steel releases June 2008 prices

Wuhan Steel has recently published its latest prices for June 2008 productions, based on May 2008prices

HR Sheet
Up by CNY 100 per tonne for quality carbon steel
Up by CNY 300 per tonne for common carbon and low alloy steel with thickness of more than 25mm
Up by CNY 600 per tonne for others

Wire Rod
Up by CNY 400 per tonne for cold heading steel
Up by CNY 300 per tonne for others

HR
Up by CNY 50 per tonne excluding shipbuilding plate
Up by another CNY 100 per tonne for coils and plates with thickness of more than 12mm

CR
Up by CNY 100 per tonne

Tinplate
Up by CNY 200 per tonne

Silicon Steel
Up by CNY 1000 per tonne for all grain oriented silicon steel

GI
Up by CNY 50 per tonne for GI without spangle on the surface

Other
Unchanged

Prices listed above are exclusive of 17% VAT, effective as of May 5th 2008.

(Sourced from MySteel.net)

Baosteel supplies SBQ plates for LNG carrier

It is reported that Baosteel has completed steel supply for fourth and fifth liquefied natural gas vessels in China. This is the first time for Baosteel to provide whole vessel of cargoes to LNG with a total volume of 530,000 tonnes, reflecting that Baosteel has broken the monopolization of overseas SBQplate in the field

Following the bulk supply fir the Antarctic scientific expedition ship Xue Long, Baosteel succeed in offering steel products for the manufacture of whole ships of large scale and great difficulties such as 300,000 tonnes FPSO, which was the first one of such kind boat in China and the fourth one in the world and the instrumentation ocean-going vessel of Yuan Wang 5.

It is said the LNG is liquid fuel made from natural gas cooled to minus 163 degree, with the gaseous volume narrowed about 620 times, which has the advantages of fewer impurities, high efficiency in transportation, and good economic returns etc.

LNG transportation carries are of the top grade in transportation ships with the highest technical content and difficulties, so only a few countries developed in building ships, such as Japan and Korea, could make them. After seven years of difficult studies, China started to build LNG carriers from the end of 2004, but as Baosteel has not put thick plate into production, the right to supply materials for the first and second LNG carriers had to be left to foreign enterprise.

Enel to acquire carbon credits from Wuhan

Enel SpA has recently announced that it would buy EUR 150 million worth of carbon credits from Wuhan Iron & Steel Company, which is building 5 coal based ultra supercritical power projects. With this agreement Enel has become the second largest buyer of CDM in the world.

Through the agreement with Wuhan Iron & Steel, Enel would acquire 11.45 million tonnes of CO2 emissions allowances, supporting greenhouse gas abatement efficiency projects which are being carried out in the Chinese steel industry. Including this transaction, Enel says it has a Chinese market with a portfolio of CO2 credits from more than 60 greenhouse gas abatement projects, cutting emissions in excess of 70 million tonnes from 2007 to 2012.

Enel is implementing a cooperation agreement with China to promote clean coal technologies with specific reference to ultra super critical power plants as well as cutting edge CO2 capture and sequestration techniques. If installed at all new coal power plants in China, these technologies would cut down about one billion tons of CO2 per year versus the overall emissions from China's coal power plants that exceed 4 billion tons of CO2 per year as estimated by 2015.

In addition it has signed a broader agreement for the reduction of greenhouse gas emissions with Chinese ministry of science and technology, as a part of its own agreement with Italy's ministry for environment signed in 2004 to aid in reducing greenhouse gas emissions to combat climate change.

Enel's agreement the Chinese ministry of science and technology is a part of the Sino Italian Cooperation Program launched in 2001 to identify opportunities for projects aimed at promoting a sustainable development path in China.

In 2004 Enel had signed an agreement with Italy's ministry for the environment to aid in reducing greenhouse gas emissions abroad, as a part of its own global strategy on combating climate change. Under this accord it already has other agreements with leading Chinese, Indian and South American enterprises.

Masteel Q1 net profit up by 39.8% YoY

Masteel recently announced the first quarter’s report, the company realized CNY 0.1135 per share in the first quarter, the income was up by 77.2% YoY and the net profit increased by 39.8% YoY, far exceeded the market expectations.

Masteel’s first quarter’s outstanding achievements was greatly impacted by the snowstorm, it owed producing a total of 170,000 tons pig iron, 210,000 tonnes crude steel, 190,000 tonnes steel materials. That is to say, the first quarter’s outstanding achievements were mainly from March.

In 2008, Masteel’s outstanding achievements are expected to be well. With the operation of the new area, the output of 2008 will increase by more than 2 million tonnes.

1st stage of Liaoning Wanhua steel plant at Chifeng to start in November

According to Chifeng City’s people government in Inner Mongolia Autonomous Region that the million tonnes of iron and steel production bases with the total investment of CNY 2 billion formally started to be constructed at present and is expected to be completed in November.

The first phase of this project is invested by CNY 400 million to produce 600,000 tonnes of steel every year.

The second phase of the project will be started in 2009 and would be completed in 2010. After it is put into production, it would produce 1 million tonnes of iron and 1 million tonnes of steel every year realizing production value of more than CNY 7 billion.

As per reports, this project is invested by Liaoning Wanhua Group and designed by Ansteel Design Institute.

Hangzhou Bay Bridge & Sutong Bridge open to traffic

It is reported that Hangzhou Bay Bridge and Sutong Bridge have been officially opened to traffic. These two bridges are the milestones in the bridge construction history in China, which emblematizes that China has leaped from large country in bridge construction to strong country in bridge construction.

During this forward leap, Baosteel has acted as an important role, not only supplied all steel for high difficulty inclined cable stays for Sutong Bridge, but also supplied the green slag powder for Hangzhou Bay Bridge. Accompanying with these two bridges, whose designed life is over 100 years, Baosteel's steel products will also endure the test by wind and rain for over 100 years.

As the main span of Sutong Bridge is 1088 meters, it is the largest span inclined Cable Bridge in the world till now and is praised as the cable stayed bridge representing the highest construction technology in the world by international bridge engineering circles. On the bridge, over 6500 tonnes of galvanized steel wires produced by Baosteel have been braided into 272 pieces of inclined cable stays, which has supported the ridge pole of the Bridge. As the most important load bearing member of the cable stayed bridge, each is inclined cable stay is braided by hundreds of galvanized steel wires. The capability of resisting the fatigue, breakage, tensile and bending is subject to the performance of steel wires.

As the full length of Hangzhou Bay Bridge is 36 kilometer, it is the longest sea crossing bridge in the world at present and is also one of the most difficult constructed sea crossing bridges in the world. As the Bridge locates in the strong corrosive marine environment, in order to insure the lifetime of the Bridge will be longer than 100 years, Baosteel and Chinese scientific research colleges, together, have researched and developed the high performance admixture slag powder special-purposed for marine concrete which has filled in the blank in China, and have been used to cast the piers of Hangzhou Bay Bridge in batches. The application has improved the density of concrete material, formed the concrete structure with low penetration, high dense and less defects and advanced the corrosion resisting capability of concrete structure radically, all of which has piled the strong base for Hangzhou Bay Bridge the horizontal dragon on the sea.

Chinese silicon steel price climbs up

The cold rolled silicon steel price stands still with Baosteel made 470 grade offered at CNY 8350 per tonne, Wuhan Steel made 600 at CNY 7950 per tonne, Angang 800 at CNY 7550 per tonne, Baosteel made 1300 grade at CNY 7530 per tonne.

(Sourced from MySteel.net)

Baosteel holds 2007 stockholder meet

A few days ago, Baoshan Iron & Steel Company Limited held 2007 stockholders' meeting in Dalian. The shareholders and the authorized agents who participated the meeting occupied 74.71% of total shareholders who have the rights to vote. Mr Xu Lejiang president of Baoshan Iron & Steel Company assumed the chairman and presided the meeting. Some directors, supervisors and executives of Baoshan Iron & Steel Company attended the meeting as nonvoting delegates.

In the meeting, it examined the topics of the meeting, checked the independent director's working report as well as checked and approved report of the board of directors of Baoshan Iron & Steel Company in 2007, report of the board of supervisors, annual report of Baoshan Iron & Steel Company in 2007, proposal about final account report of Baoshan Iron & Steel Company in 2007, proposal about profits allocation in 2007, proposal about financial budget in 2007, proposal about related transaction in 2008, proposal about keeping on employing Ernst & Young as the independent accountant of the company in 2008, report about the salaries of the directors, supervisors and executives in 2007 and overture about re electing the supervisors by way of voting by registered ballot. Mr Pu Junxiang was selected as a supervisor of the company at the meeting.

In 2007, Baosteel Company Limited actively overcame the disadvantage factors, such as rising of raw material cost, drastic turbulence of the market, etc, substantially carried out important proceedings, and made efforts to enhance the integrative cooperation power, system operation ability, manufacture capacity and profitability of the products. In the whole year, it sold 22.6 million tonnes of merchandized products, achieved CNY 191.56 billion as the gross revenue and CNY 19.31 as the gross profits, which created the best record in history.

At the meeting Baosteel confirmed the proposal of profits allocation in 2007. The dividend will be paid to all shareholders who are registered on the record date when is confirmed in announcement of bonus of the company or CNY 3.5 cash dividends for every 10 shares.

After experiencing the rapid increase, Chinese iron & steel industry has already processed into a new stage where self innovation impels industry upgrading, organizational structure is optimized through acquisition & combination, environmental protection & energy saving is stressed and the circular economy is developed. The competition of the iron & steel enterprise focuses at the aspects of scale, product structure, cost, supply chain, environmental adaptability as well as pays more attention to advance the integrative competitive ability.

Since 2007, Baosteel has timely worked out the development strategy for the new round, which will gradually achieve the change from best quality strategy to best quality + scale strategy. 2008 is the key year to implement the strategy. Baosteel will consolidate the advantage fields continuously, take innovation & reform and deepening system ability construction as the mainline, excavate the management potential, accelerate to advance the soft power and key competition, impel the leaping development on hard power, such as scale, quality, technology and circular economy as well as expand the new development space.

Severstal metiz acquires 35% stakes in TAS banking and insurance group

Severstal metiz announced that it has bought a further 35% stakes of the TAS banking and insurance group, bringing its ownership of the company up to some 95%. Severstal metiz bought its original 60% stake in February 2006.

Dneprometiz’s previously announced development plans will continue. Severstal metiz will complete its extensive investment program in the Ukrainian business by 2011. The investment includes the renovation of the cleaning line and wiredrawing shop No 2. This will result in cost reduction, the development of new products, the optimization of ancillary processes and the implementation of energy saving projects.

Mr Olga Naumova CEO of Severstal metiz said that “Dneprometiz is an attractive business for us. It has a number of advantages compared to Russian plants, such as a lower production costs, better transport rates and favorable logistics. Our investment to convert it to a modern wiredrawing facility will allow us to manufacture high value added products, meeting the low carbon requirements of the European standards.”

JSC Dneprometiz became part of Severstal metiz after a partnership was agreed between the S financial group and Severstal metiz on February 17th 2006. Dneprometiz is the largest plant producing steel products in the Ukraine, manufacturing wire for a variety of different applications, as well as, fasteners, nails, cotter pins, electrodes and steel meshes.

Evraz eyeing 20% stake in FerroChina – Report

Chinese media are reporting that Evraz Group wants to acquire 20% of the stock in FerroChina for the current market price of USD 167 million.

That asset would be a complement to the Chinese Delong Holdings, a 51.05%controlling package in which Evraz plans to buy from Best Decade Holdings by the end of the year.

Evraz is competing with the Australian BlueScope Steel for FerroChina, which has already driven the price up by 10 percent.

FerroChina is located in Changshu in eastern China. The company produces steel for use in construction and railroads and heavy industry. Its yearly capacity is 1.5 million tonnes. FerroChina announced its search for a strategic foreign investor in April to increase sales and access to raw materials. Merrill Lynch undertook that search.

Ural Steel takes hot trial of new bloom caster

Metalloinvest Holding’s Ural Steel has taken hot trial of new four strand continuous caster machine recently for production of 330mmx470 mm blooms.

The new combined continuous caster machine will produce 330x470 mm bloom billets and large diameter round billets of 430 mm, 540 mm and 600 mm in diameter. The total output is expected to reach 1 million tonnes per year.

The construction of the continuous caster machine started in 2007. The project was developed by SMS Demag also responsible for the equipment supply and the supervision of the assembly works. The automatic management system for the caster machine was produced by Allen Bradley.

Mr Sergey Shishkovets MD of Ural Steel considers this event of a high importance for the mill development. He said that “For the moment, Ural Steel is the only enterprise in Russia to carry out the production of this type. This will enable us to occupy a new market niche and to satisfy the demand of our partners in Russia and abroad.”

Mr Thomas Shaiblich project director of SMS Demag mentioned that the launch of a new continuous caster machine may soon enable Ural Steel to become the leading enterprise in Russia and CIS in this market segment.

EU clears NLMK purchase of Novexco

Thomson Financial reported that European Commission has cleared OJSC Novolipetsk Steel's unit NLMK International BV's about EUR 77 million proposed acquisition of United Steel Group trading companies Novexco Cyprus Ltd and Novex Trading Swiss SA.

The transaction was reviewed under the EU's 'simplified' merger review procedure for cases which the commission believes do not pose competition concerns.

US ITC to conduct sunset review on silicon metal from Russia

The US International Trade Commission voted to expedite its five year sunset review concerning the antidumping duty order on imports of silicon metal from Russia.

As a result of vote, the Commission will conduct an expedited review to determine whether revocation of the order concerning this product would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.

The Commission's notice of institution in five year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

Mr Korytko leaves Metinvest

Metinvest Holding announced that Mr Igor Korytko director of its Steel and Rolled Products division has decided to leave Metinvest Holding. Starting May 1st 2008 and Mr Jack MacLachlan has been acting as director of the division.

Mr Korytko has been one of the founders of the Steel and Rolled Products division. During his two years in office, he had many accomplishments: he implemented new business processes, which allowed to increase production volumes and to expand our market presence; under his direction the new development strategy of the Division was created and the sales team was restructured.

Mr Jack MacLachlan joined Metinvest in the autumn of 2008 having been appointed COO of the Steel and rolled products division of the company. Mr Jack MacLachlan has nearly 30 years working experience in steel industry and before joining the Metinvest team he worked as Managing Director Continuous Improvement/Manufacturing Excellence and as Managing Director of Corus Colors in Corus Group Plc.

Norilsk Nickel makes loss of USD 916.4 million in Q1 of 2008

RIA Novosti reported that Norilsk Nickel made a net loss of USD 916.4 million calculated to Russian Accounting Standards in the first quarter of 2008.

Norilsk Nickel posted a preliminary output report saying its nickel production increased by 22% to 74,572 tonnes in the first quarter of 2008 year on year.

Norilsk Nickel accounts for over 20% of global nickel output. It also produces more than 10% of the world's cobalt and 3% of global cooper. The company produces around 96% of Russian nickel, 55% of the country's copper and 95% of its cobalt.

Istil attend s High technology XXI Century meet

Representatives of Istil Ukraine in took part in the Ninth international form High technology XXI Century, which was held in Moscow from April 22nd to April 25th 2008.

The forum was held on the initiative of the Government of Moscow to form a system of innovation development, promotion of industry in the new technologies.

Mr Yuri Luzhkov mayor of Moscow while welcoming the participants said that "Participation in the forum by a large number of business representatives of foreign countries would promote international cooperation in science and technology.”

Tajikistan primary aluminum output up in 4 months

Tajikistan has produced 132,420 tonnes of primary aluminum in the January to April 2008. The output was contributed by state owned Tajik Aluminum Company which is the only producer of primary aluminum in the country.

The aluminum output of Talco during January to April is 0.7% higher than it’s expected. The company’s output in 2007 rose by 1.3 % to 419,260 tonnes.

(Sourced from YIEH.com)

Russia will raise oil export tax by 17% in June – Report

Bloomberg reported that Russia will increase its crude export tax by 17% to a record on June 1st 2008, after oil prices rose in March and April.

Mr Alexander Sakovich deputy head of the Finance Ministry's customs department said that the tax will be set at USD 398.10 a tonne, the seventh consecutive increase.

He said that the current duty is USD 340.10 a tonne or USD 46.40 a barrel.

Russia revises its export taxes on crude and oil products every two months based on the previous two month average price for Urals, the country's benchmark export blend. That stood at a record USD 102.76 a barrel in the period. He added that oil prices have risen 68% since the same time last year.

Russia's oil production, which fell to an 18 month low of 9.72 million barrels a day in April, may decline this year for the first time in a decade as producers struggle with high costs, aging fields and new deposits in increasingly remote areas. The government is considering tax breaks to stimulate investment.

Mr Michael Teagarden a sales trader at UBS AG in Moscow said that “The government is addicted to high oil revenues. Russia needs to wean itself from this windfall and encourage producers to spend the money developing new fields.''

Russian president signs law on strategic sectors

Reuters reported that Mr Vladimir Putin president of Russia signed a long awaited law on strategic industries, designed to clarify which assets will be off limits to foreigners.

As per report the signing of the law is a milestone in one of the chief aims of Mr Putin's presidency to bring strategic industries, above all oil and gas, back under state control after they were sold off during the privatization of the 1990s.

Analysts praised the law for clarifying the rules of investing in Russia, where a lack of mature legislation has led to political risks. Investors, however, have complained that the law limits access to more than half of the country's economy.

It lists 42 sectors where foreign investment will be restricted, such as nuclear energy, natural monopolies, exploration of strategic mineral deposits, aviation, space and other defense-sensitive industries.

Logistics and Supply Chain Conference

It is reported that SeaNews I&C on June 5th 2008 is holding 2nd FREIGHT 2008: Logistics and Supply Chain Conference at Moscow in Russia. The event has gained a support from the RF Ministry of Transport.

The conference is leveled at top managers of logistics departments of manufacturing and trading companies, regional logistics managers, heads of transport companies and logistics providers, customs brokers, representatives of state structures and customs service.

The new logistics conference will become the 12th in the series of transport and logistics events held by SeaNews. The previous events were attended by over 2,000 delegates representing more than 700 companies.

Gazprom not to hike gas price for Georgia

Mr Sergei Kupriyanov a spokesman of Gazprom Sergei Kupriyanov has refuted the rumors on monopoly’s intention to hike gas price for Georgia from USD 235 per thousand cu meters to USD 320 per thousands cu meters starting from June.

Mr Kupriyanov said that we have no information of the kind. We don’t confirm holding negotiations on the increase in gas price. This information isn’t correct. He added that the gas monopoly has no plans to hike the price in the near term. The price will remain the same, USD 235.

Gas consumption in Georgia slid by 100 million cu meters to roughly 1.7 billion cu meters in 2007. Of that amount, the imports from Russia accounted for 66% or 1.15 billion cu meters; Georgia received a portion of that gas for the transit to Armenia.

Ukrvazhmash ready to set up JV in Tajikistan

Asia Plus news agency reported that Ukrainian company Ukrvazhmash Ltd has expressed its readiness to implement a number of projects in Tajikistan.

A source in the Tajik ministry of energy and industry told Asia Plus that the company's intentions had been confirmed in a memorandum of cooperation between the two countries.

The source said that the Ukrainian company had expressed readiness to implement projects to construct small, medium and large hydroelectric power stations, as well as reconstruct the existing hydropower facilities in Tajikistan.

Moreover, Ukrvazhmash will consider the issue of building new and reconstructing the existing thermal power stations on the basis of using solid fuel of prospective coal fields in Tajikistan, as well as building a new cement plant.

Indian stainless steel demand to grow by 5% to 7% in 2008

Reuters reported that India's stainless steel demand will expand by a slower than expected 5% to 7% in 2008 due to a spike in prices of key inputs like manganese and chrome.

Mr NC Mathur director of Indian SS major Jindal Stainless Limited and the president of the Indian Stainless Steel Development Institute told Reuters in an interview that while nickel prices have leveled off, the cost of chrome has doubled and manganese has trebled since January due to a supply squeeze and higher demand from China,

He said that Indian demand currently stands at about 1.3 million tonnes a year but had been forecast to grow by at least 10% in 2008, up from marginal growth of 1% to 2% in 2007 as nickel prices stabilized at USD 27,000 per tonne to USD 28,000 per tonne after nearly doubling. He said that "We thought of a recovery in 2008, but it may be a flat year again,”

Mr Mathur added that "Manganese has seen an unprecedented rise too. Manganese prices have risen to about USD 1.6 a pound from 41 cents in late last year.

AK Steel announces June surcharges for electrical and SS

AK Steel has advised its customers that a USD 640 per ton surcharge will be added to invoices for electrical steel products shipped in June 2008.

June 2008 surcharges for the broad range of stainless steel products that AK Steel produces can be found on the company's web site at www.aksteel.com.

AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the April 2008 purchase cost used to determine the June 2008 surcharges.

Japanese stainless steel scrap import in March dips by 49% YOY

Japanese imports of stainless steel scrap dropped by 48.9% YoY to 10,727 tonnes in March 2008 as compared to March 2007.

In tonnes
Change is YoY

Intex Mandore nickel project to start production in 2012

According to an official of Intex Resources, its Mindoro Nickel project located in Philippines will start to produce in 2012.

Intex said that they will finish the bankable feasibility study in the first quarter of 2009 and the annual production capacity is designed to have 40,000 tonnes per year. They also plan to construct a HPAL plant to produce 55% nickel of nickel concentrate. And then, the products including iron ore and cobalt may export to Japan.

(Sourced from YIEH.com)

TI buys GMT companies including GMT Titanium

Titanium Industries Inc and GMT Companies have announced that TI has purchased the GMT companies including GMT Titanium, allowing TI and GMT to join forces in their efforts to sell titanium and high performance metal products to the European customer base.

The two European GMT facilities in Bergen and Southampton will compliment the TI facility in Birmingham as well as 7 other strategically located distribution facilities. The co existence of these facilities will also provide the additional space required to immediately grow European operations of the two companies, as well as the continued expansion of the non titanium high performance metal.

In addition, GMT Titanium’s global sourcing capabilities and innovative marketing strategies are expected to bring new opportunities to the entire Titanium Industries’ distribution network.

Mr Jan Hugo Schnelle will continue his responsibilities as MD of both the Norway and UK facilities and he will also oversee Titanium Industries’ UK Limited division. He will report to Mr Jeff Wise VP sales & marketing for TI.

Dynamic Materials appoints Mr Nicol as its new VP

Dynamic Materials Corporation has announced the appointment of Mr Jeffrey A Nicol as its VP sales & marketing for the US Clad Metal division with effect from March 1st 2008. In this role, Mr Nicol will report to Mr Banker senior VP customer & technology.

Prior to joining Dynamic Materials, Mr Nicol spent over 21 years with Alcoa Inc. The majority of this time was with Alcoa’s Forged Products division in Cleveland. His most recent position was global marketing director industrial products.

During his tenure with Alcoa, Mr Nicol held various sales, marketing and technical positions with the company. Mr Nicol’s prior materials experience includes aluminum, titanium, steel, stainless steel, magnesium and nickel base super alloys.

TATA Corus eyeing Brazilian iron ore miner Namisa

BS reported that TATA Steel is eyeing CSN's Nacionale Minerios a fully integrated iron ore company, which has recently announced that it is looking at a potential sale of a portion or all its shares of Namisa.

Te report cited a TATA Steel as saying that "TATA Steel has several opportunities before it and it will evaluate each of these for their strategic fit with our growth plans before deciding on any course of future action vis à vis the opportunities."

Currently, Namisa's iron ore sales and exports are to the tune of 14 million tonnes and the plan is to take it to 40 million tonnes by 2012. Apart from the mining rights, Namisa has access to railway transport and port to sell or export its production.

CSN has retained Goldman Sachs as its financial advisor in connection with the potential sale.

If the bid materializes, this would be the first acquisition of a developed mine by a Indian steel player as so far, the acquisitions have been for exploration and development of mines.

Indian iron ore spot prices remain flat last week

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has announced the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on May 6th 2008.

The change is with respect to prices posted on April 28th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Iron ore price negotiations – CISA not aware of freight premium news

XFN-ASIA reported that an official of China Iron & Steel Association said that he is unaware of a deal reportedly to be reached with suppliers from Australia for a premium on the annual iron ore contract price.

Mr Chen Xianwen deputy director general of the China Iron & Steel Association told XFN-Asia that "I have no knowledge of any such arrangement. Also, I have not seen the report so I am not in a position to comment further.”

Citing sources from China's steel industry, the Australian Financial Review has reported that Australian iron ore suppliers are likely to win a contract price rise of up to 85%. That price hike would represent a premium of some 20% points over the Brazilian iron ore contract price hike on sales to China won earlier by Companhia Vale do Rio Doce.

Sesa Goa to add iron ore prospecting and mining leases

BL reported that Sesa Goa has stepped up efforts to expand and add iron ore prospecting and mining leases as also increase third party mining opportunities.

Mr P K Mukherjee MD of Sesa Goa told Business Line that the company is looking for additional mining leases in India and abroad but declined to give specific details. He, however, said that Sesa Goa’s attempt at securing ore prospecting and mining lease in Jharkhand had not borne fruit so far.

At present, it has mining leases in Goa, Karnataka and Orissa.

Fortescue loads first iron ore from Pilbara

Australia’s Fortescue Metals Group began loading the first iron ore shipment from its Pilbara project, moving closer to its target of becoming the nation's third largest exporter.

Port Hedland harbor master Mr Lindsay Copeman said that "They have just started loading.” He said that the vessel Blumenau is moored at Perth based Fortescue's berth in the port and commissioning of the ship loader has begun.

Fortescue's AUD 2.8 billion project may help break the stranglehold that BHP Billiton and Rio Tinto have on exports of the steelmaking raw material from Australia's Pilbara region. Mr Paul Adams head of research at D J Carmichael & Co said that “The company will usurp the duopoly that has existed in Australia between BHP and Rio. We have been a very long term believer that they would actually pull it off.''

Monnet to get mining rights in Indonesia

ET reported that Monnet Global, the overseas subsidiary of steel maker Monnet Ispat & Energy Ltd is all set to acquire mining rights for a 250 million tonne coal reserve in Indonesia from PT Anzawara. The deal would enable the company to start coal trading and look for lucrative markets in China, South East Asia and India.

Mr Sandeep Jajodia executive vice chairman & MD of Monnet Ispat & Energy Ltd told ET that “We have reached an understanding with PT Anzawara to sign a 25 year agreement to exploit coal resources of the Indonesian company for sales both in local and overseas markets. The agreement would be initially for only one fourth of the total reserves about 80 million tonne, before reserves of remaining mining area is assessed and exploited.” He said that the deal would involve a royalty payment to the original mining lease holders.

It is expected that the mine would yield a production of 1 million tonne by July 2008. This would progressively increase to 3 million tonne in next couple of years.

While the company would trade this coal initially, it is also looking at the option of setting up a coastal power plant based on the imported Indonesian thermal coal from its mines.

A company sources said that “The acquisitions of coal mines would serve the company’s two power plants that are likely to come up in Maharashtra and Andhra Pradesh with a joint capacity of 4,000 MW. The power plants would entail an investment of close to INR 15,000 crore.”

Semirara to expand coal capacity in 2008

Reuters reported that Philippines' largest coal producer Semirara Mining Corp is planning to expand its annual capacity by 500,000 tonnes starting by 2008 to meet rising overseas demand.

Semirara, a unit of Philippine conglomerate DMCI Holdings Inc, said that its coal exports to India, China and Hong Kong is expected to be doubled to 1.6 million tonnes in 2008.

Mr Isidro Consunji president of parent firm DMCI said that Semirara would spend PHP 1.5 billion (USD 35 million) this year to acquire new equipments such as excavators and dump trucks to help expand capacity to 4.5 to 5 million tonnes per year. He said that

Semirara total coal sales in 2007 up by 72% to 3.575 million tones, of this, 800,000 tonnes was exported to China, India and Hong Kong and the rest was sold domestically. Semirara started exporting coal in 2007 to reduce its dependence on local consumers, such as the country's largest power generation firm National Power Corp.

Pig iron price go up by CNY 100 per tonne in Shandong

It is reported that, on the first working day after Labor Day holiday, a large scale steelmaker in Southeast Shandong raised purchase price for steelmaking pig iron by CNY 100 per tonne to CNY 4650 per tonne from previous CNY 4550 per tonne.

Insiders disclosed that the high price was attributed to the steel maker’s slumping pig iron stocks amid nice steel market and surging price. Production may be affected providing it fails to replenish resources effectively, hence the steelmaker has to raise price to promote purchasing in a bid to feed its steel production.

However, pig iron market has experienced great changes around Labor Day holiday. Pig iron makers have seen most orders booked and now hold off sales of the rest resources in anticipation of future price hikes.

Due to roaring steel market, scant pig iron supply and hectic market demand, CNY 4650 per tonne can not necessarily lead to transactions and is not necessarily the highest purchase price in the province in May 2008.

(Sourced from MySteel.net)

NDRC encourages enterprises to use CBM

So far China has more or less established a policy system to promote the mining and use of coal gas. The system will fully waken the business initiatives, effectively promoting the development and utilization of coal bed methane as well as improving the safety condition of coal production.

The State Council announced a number of opinions on speeding up the mining and use of CBM in 2006, proposing 16 measures and confirming the guiding principles of recovering proceeding mining and equal focus on control and utilization. A source from NDRC Bureau of Energy indicates relevant departments and local governments have been actively implementing the State Council’s planning, and the initial results are significant.

Most provinces and municipalities have formulated favorable tax and fee policies, which have been fulfilled at local enterprises. Such tax relief concessions include the following: specialized equipments and tools for prospecting and recovering CBM are exempted from import duty and import value added tax; CBM recovering enterprises will have their VAT refunded and enjoy accelerated depreciation, investment tax credit and deduction of technological upgrade fees, and a temporary zero resource tax will be carried out for the ground level recovering of CMB.

Sesa Goa to expand operations by third party mining

BL reported that India’s largest private iron ore mining outfit Sesa Goa, which began third party mining in 2007, has also decided to expand this operation by entering into fresh contracts with existing leaseholders in the country.

After making a modest beginning in the second half of 2006, it achieved a steady increase in such activity. Now, the company is expanding it by undertaking turnkey contracts for iron ore mining operations on behalf of leaseholders for an annual production level of over 1 million tonnes in each lease.

Mr P K Mukherjee MD of Sesa Goa told Business Line that the quantum of purchases varies and depends on terms of each individual long term contract.

Coke price in overall upswings in East China

It is reported that major producers in Shanghai have raise coke price by CNY 100 per tonne to CNY 2440 per tonne and may further pull up the price providing market operation changes a lot.

EXW price in Wuxi is offered at CNY 2450 per tonne or so and producers believe the price is reasonable compared with high coal price.

In Anhui's Huaibei mainstream price stands at some CNY 2230 per tonne. Producers now remain wait and see and are expected to raise price on May 7 with minimum markup of CNY 100 per tonne. In Shandong most producers quote price at CNY 2400 to CNY 2500 per tonne with price varying by CNY 50 to CNY 100 per tonne.

As prices for thermal coal and coking coal climb by CNY 40 to CNY 60 per tonne and CNY160 to CNY 200 per tonne respectively since May 1, coke producers have to hike prices owing to rising costs.

According to coke producers, coke price has hit a record high and will increase further providing coal price keep rising. Steelmakers thus may face greater pressure and will pull up EXW prices for steel products, forming a vicious circle.

(Sourced from Mysteel.net)

Cleveland Cliffs announces Q1 results

North America's largest producer of iron ore pellets and a major supplier of steel-making coal Cleveland Cliffs Inc said that its first quarter consolidated revenues rose 52% to a record USD 494.4 million as compared to USD 325.5 million same quarter last year.

The increase for the quarter was primarily driven by USD 94 million in sales generated by Cliffs' North American Coal segment acquired in July 2007 and a USD 54 million increase in revenues from the Company's North American Iron Ore segment.

Cleveland’s operating income for the first quarter was comparable to last year at USD 42.6 million as compared to USD 44.9 million. Operating income was impacted by higher selling, general and administrative expenses, including approximately USD 6 million attributable to the Company's North American Coal segment acquired in July 2007, a charge of approximately USD 7 million in connection with a legal case and approximately USD 10 million in additional management infrastructure and corporate development activities in Latin America and Asia Pacific. The impact on operating income if all iron ore price settlements had occurred and the related revenue had been recognized would have been approximately an additional USD 55 million, as costs associated with these sales volumes were accounted for in the first quarter.

First quarter 2008 net income was USD 16.7 million down from USD 32.5 million in 2007. Cliffs said that net income was impacted by a USD 6.9 million equity loss related to its investment in the Amapá Iron Ore Project, as well as the previously mentioned impact from the unsettled iron ore benchmarks. In addition, the Company's tax rate in the first quarter of 2008 was 34.5%, compared with 26.7% in the prior year. The higher rate for the first quarter of 2008 was primarily due to the mix of net income generated at geographies outside of the United States.

Mr Joseph A Carrabba chairman, president & CEO of Cleveland said that "Cliffs' strong revenue growth continued in the first quarter despite the fact that some benchmark prices referenced in our contracts have yet to settle. All indications are that these 2008 increases will result in record price levels. As such, we expect to recognize an additional USD 55 million of revenue in a future quarter relating to tons sold in the first quarter."

Murray Energy 2 mines could close over dispute

Coal mining company Murray Energy Corp said that two southeast Ohio mines could be forced to close over a dispute with the Ohio Environmental Protection Agency.

The mines are the American Energy Corp Century Mine in Monroe County and the neighboring Ohio Valley Coal Co Powhatan No. 6 Mine in Belmont County. The mines employ about 1,000 workers.

Murray Energy is seeking a new coal preparation refuse site in Belmont County. But the Ohio EPA said that plan puts at risk natural habitat for fish and a rare form of salamander.

The agency has proposed a denial of the water quality certification that would allow Ohio Valley Coal to use Casey Run in the Captina Creek watershed. Any final order can be appealed.

Aquila West Pilbara iron ore project may cost AUD 3.9 billion

Australian iron ore explorer Aquila Resources Ltd said that development of its planned iron ore port, rail and mining project in the Pilbara region of Western Australia state may cost about AUD 3.9 billion.

Aquila Resources in a statement to the Australian stock exchange said that an initial study found the West Pilbara mine could produce 25 million tonnes a year starting from 2012.

Territory Resources appoints Mr McCubbing executive finance director

Territory Resources Limited announced that it has appointed Mr Ian McCubbing to the board as executive finance director.

CIL and Indian Railways to form task force

ET reported that Coal India Ltd and the Indian Railways on Monday decided to set up a task force for better coordination in movement of coal as well as to monitor projects.

Mr PS Bhattacharyya chairman of CIL after meeting Mr K C Jena chairman of Railway Board told reporters that ''Coal India and the Railways have decided to set up a permanent task force which will regularly monitor movement of coal and if necessary, remove bottlenecks if any.”

He added that the task force, which would have two members each from CIL and the Railways, would give regular feedback to the Chairman, Railway Board and his counterpart in Coal India. The task force would also take stock of various projects taken up by them including laying of track.

Mr Bhattacharyya said that in view of the recent decision to jack up coal production in the current fiscal, CIL would require more rakes to transport coal. He said that CIL required 174 rakes per day to carry coal from its different subsidiaries and if production was increased further, 200 rakes per day would be needed.

The Railway Board chairman said that the Railways had transported 205.76 million tonne out of 378.7 million tonne of coal produced by CIL last year.

Import price of chrome ore at Tianjin port

Import price of chrome at Tianjin port is under

(Price in CNY per MTU)

(Sourced from Mysteel.net)

IEA projects increase use of coal globally

UPI reported that Paris based International Energy Agency has put coal in the future energy mix. Due to strong demand, record oil and gas prices, concerns over energy security and a reluctance to fully bring back nuclear energy, coal has seen resurgence in the European energy market.

IEA said that it is a trend that has been seen in the United States and Asia as well. Though it's cheap and plentiful, coal brings up environmental concerns. It said that no less than 50 coal fired plants have been built or set up for construction during the next five years in the European Union and there are many more than that in developing countries like India and China.

The IEA predicted that coal use will continue to rise, as there is an estimated 200 years worth of reserves left.

Repair underway at BHPB Neptune facility

BHP Billiton’s Neptune facility in the Gulf of Mexico is currently undergoing remediation to reinforce certain structural components in the hull’s pontoons.

After a detailed and thorough analysis by the engineering contractor which designed and built the hull, it has been determined that part of the support structure inside the pontoons requires additional reinforcement. This has been verified by an independent analysis.

Repairs are already underway to remediate the structure as required to meet the original design intent. The Company is working to bring the facility on stream by the end of the second quarter 2008, subject to regulatory approval.

The Neptune TLP, which is located approximately 120 miles off the Louisiana coastline was scheduled to start production at the end of March, however, start up was deferred after the problem was identified during a routine inspection.

Project development costs of the Neptune project are not expected to increase significantly in light of the warranty obligations of the engineering contractor.

BHP Billiton is the designated operator of the field with a 35% interest. Joint venture partners include Marathon Oil Company 30%, Woodside Energy 20%, a subsidiary of Woodside Petroleum Ltd and Maxus Exploration Company 15%.

Neptune is a single column TLP and was installed in 4,250 feet of water on Green Canyon Block 613. The Neptune field comprises of five blocks: Atwater Valley 573, 574, 575, 617 and 618 where water depths range from 4,200 to 6,500 feet.