Orissa asks steel projects to adopt 6 point agenda

BS reported that Orissa government, which completed the process of hearing the grievances of the MoU signed steel industries, has asked these units to adhere to a 6 point agenda for expediting their projects.

The agenda includes
1) Taking up entry point activity
2) Providing employment to the affected and the displaced persons
3) Promotion of local employment to the extent possible
4) Initiative for protection of environment
5) Enthusing and engaging the people
6) Empathizing with the local people

These suggestions came during the high level meeting to review the progress of the steel units coming up in different parts of the state. The meeting was chaired by Mr Ajit Kumar Tripathy chief secretary of the state.

Mr Tripathy said that the steel units have been advised to take up various entry point activities to fill the infrastructural gap in their area of operation. Similarly, they also need to take care of employment of the project affected and the displaced persons either through setting up ITIs or through adoption of the existing ITIs in the state. It will help those units to meet their requirement of skilled man power in the trades they require. The industries have further been advised to promote local employment to the maximum extent possible.

He added that "The industries have been told to take up afforestation and ensure protection of social and economic environment. Efforts will have to be made for enthusing and involving the people in the industrialization process to attain the objective of inclusive development. Besides, the industrial units will have to empathize with the local people considering them as stakeholders in the industrialization process. To further supplement these efforts the industries need to educate and empower the local people so that they can get jobs on merit."

Mr Tripathy further added that the government is also planning a similar review meeting to assess the progress made by the non steel industries in the state. However, a formal date has not been decided yet.

RINL awards gas holder contract to MBI and MICCO group

Rashtriya Ispat Nigam Limited has signed an agreement with a consortium of UK based MBI Claton Walkers Gas Holder Division of UK and MICCO Kolkata for Gas recovery System of Steel Melt Shop No 2 on total turnkey basis. The scope includes civil and electrical works as well.

The agreement was signed by Mr AK Benerjee ED projects of RINL, Mr AC Brown of MBI UK and Mr R Benzamin of MICCO, Kolkata.

The gas holder is of 80,000 cubic meter capacity with latest technology of single seal. The cost of the system is INR 62 Crores involving a foreign component of INR 8 crores.

The work will be completed in a period of 22 months from the date of order.

Government watching steel price situation – Mr Pandey

PTI quoted Mr RS Pandey union steel ministry secretary as saying that the government is keenly watching the trend in domestic steel prices, even as retail prices in domestic open markets have slumped by a whopping 16% to 19%.

Mr Pandey said that "The situation is being keenly watched. The steel industry's cooperation is essential in containing prices. The recent measures will ensure availability of long products through imports as the countervailing duty on them has been reduced to zero."

He said that steel prices in Mandi Gobindgarh markets have fallen during the past 7 days with ingot prices falling by INR 7,600 per tonne amounting to 19%, while prices of TMT bars have fallen by INR 7,000 per tonne, a decline of 16%. Similarly, prices of angle steel declined by 17% to INR 7,500 per tonne and those of MS Patra steel fell by 18% to INR 8,000 per tonne.

Meanwhile, India's inflation jumped to a 42 month high of 7.57% for the week ended April 19th 2008 as compared to 7.33% a week ago. According to official data on inflation released, the index for basic metals, including alloys rose by 1.1% during the week owing to surge in prices of cast iron pipes with 51%, basic pig iron and foundry pig iron with 8%, aluminum ingots with 3% and steel plates and strips with 2%.

Uttam Galva Steel cuts galvanized steel prices

Uttam Galva Steels Limited announced that it has decided to reduce the prices of its galvanized steel products by INR 4000 per tonne with immediate effect.

The new Maharashtra base price for galvanized steel coil inclusive of all levies will now be INR 56000 per tonne. The price cut in galvanized steel is due to the drop in prices of HR coil by the integrated steel producer's for the domestic market.

Uttam Galva Steels Limited is a one of India's largest manufacturer and exporter of value added steel products. In the domestic market, it is a major supplier to the automobile, white goods, general engineering and construction industries. Some of its major end users include Bajaj Auto, Bajaj Tempo, M&M, Kirloskar, Crompton, L&T, etc. It currently exports its products to more than 135 countries including Australia, France, Germany, Greece, UK and USA.

Kalinga Nagar blockade lifted

SNS reported that harried Jajpur district administration heaved a sigh of temporary relief as warring groups which had set up road blockades at several points paralyzing movement of vehicles since last 3 days at Kalinga Nagar, lifted the blockades.

The Visthapan Virodhi Jana Manch, spearheading the anti displacement agitation in the area lifted its road block after discussions with the district administration. They had sealed the NH connecting Daitari to Paradip since May 1st 2008 following the death of one of their activists who was shot by a bodyguard of a contractor.

Mr Rabindra Jarika general secretary of VVJM said that "We have lifted the blockade for the convenience of public not for the administration. The blockade will be restarted if our demands are not fulfilled within the time frame. The agitation against multinational companies, who are hiring goons to eliminate our activists, will however continue."

It may be noted that Mr Arabinda Singh along with his security guards had advised Mr Banara who was accompanied by some of his supporters not to oppose land acquisition for a steel plant project at Kalinga Nagar. A clash ensued and the security guard had fired three rounds which killed Mr Banara on the spot.

The VVJM had promptly resorted to agitation and Mr Banara was cremated at Vir Bhoomi where a mass cremation of the 14 tribal gunned down by the police on January 2nd 2006 had taken place.

Mr Jarika said that "Amin lost his life for the cause of tribal who oppose forcible land acquisition in Kalinga Nagar. He is martyr to us and we will erect his memory pillar among 14 earlier martyrs at Vir Bhoomi." He added that VVJM took a vow to continue opposing the displacement caused by the proposed steel plant.

Indian refractory industry facing raw material constraints

BL reported that the Indian refractory industry is faced with a raw materials crisis due to exports curbs by China coupled with spiraling costs of key inputs. Indian refractory industry has been considerably dependent on imports from China for critical raw materials, such as brown fused alumina and fused magnesia.

As per report the landed prices of imported raw materials, too, have gone up substantially during last 12 months.
1. The landed cost of brown fused alumina imported from China has gone up from INR 16,446 per tonne as on March 31st 2007 to INR 35,034 per tonne on March 31st 2008, up by 113% YoY
2. The landed price of fused magnesia has gone up from INR 17,746 per tonne on March 31st 2007 to INR 25,097 on March 31st 2008 up by 41% YoY.
3. The price of landed calcined bauxite has also gone up from INR 9,397 per tonne on March 31st 2007 to INR 20,670 on March 31st 2008 up by 120% YoY.

The Indian refractory industry requires about 50,000 tonnes a year of brown fused alumina and 30,000 tonnes a year of fused magnesia and most of this is imported from China, as India does not produce sufficient quantities of equivalent quality. But in last 3 years to 4 years China has progressively introduced measures that discourage refractory exports. These include licensing, quantitative restrictions, export duties and withdrawal of export benefits.

As per report, INR 3,100 crore worth Indian refractory industry comprises nearly 100 established units, including 10 large plants, 24 medium scale units and the rest being in the small-scale sector. The industry has an aggregate production capacity of 2 million tonnes a year but the capacity utilization is around 60% only. About 75% of the refractories that are manufactured find application in the steel industry, 12% in the cement industry, 5% in non ferrous industries, 3% in the glass industry and the balance in other industries.

Ramsarup Lohh Udyog merges into Ramsarup Industries

India’s second largest producer of steel wires Ramsarup Industries Limited has got formal approval from shareholders in an High Court convened meeting held in Kolkata on May 7th 2008 to merge Ramsarup Lohh Udyog Limited with it.

The fair exchange ratio has been fixed at 2 equity shares of Ramsarup Industries Ltd., for 5 equity shares of Ramsarup Lohh Udyog Limited, which was duly arrived and certified by Ernest & Young.

Mr Ashish Jhunjhunwala CMD of Ramsarup Industries Ltd said, “We are extremely pleased to welcome Loha Udyog’s entry into RIL and in order to achieve complete synergy, we are aggressively pursuing our goal to be among the top ten wires and wire product manufacturers in the world in the next three years, with our own captive raw material and strong presence in the infrastructure space.”

Ramsarup Lohh Udyog Limited is setting up an integrated steel plant in Kharagpur. The said plant is expected to commence commercial production shortly and will be able to meet the entire requirement of steel billets of Ramsarup Industries Limited. Thus, there are considerable synergies between the operations of the Ramsarup Industries Limited and Ramsarup Lohh Udyog Limited.

CPI calls for nationalization of cement and steel firms

Mr S Sudhakar Reddy national deputy secretary of Communist Party of India and also Member of Parliament said that "The government should take over cement and steel companies that are violating its directions."

He expressed alarm over the way in which these companies are openly violating the diktats of the government, which is attempting to contain the inflationary trends in these sectors.

Hinduja Foundries plans INR 350 crore investment

PTI reported that Hinduja Foundries Limited will go in for an investment of INR 350 crore to increase its production capacity to 226,000 tonne in the next 2 to 3 years.

Mr Mahadevan MD of Hinduja Foundries said that apart from setting up a Greenfield unit at Hyderabad at a cost of INR 150 crore, it would also set up a low pressure aluminum foundry unit with a production capacity of 5,000 tonnes at Sriperumbudur at an investment of INR 50 crore. He added that it would invest INR 50 crore at its existing unit at Sriperumbudur to enhance the production capacity from 50,000 tonnes to 72,000 tonnes and an iron cast machining unit would also be set up at Sriperumbudur at an investment of INR 100 crore.

Mr V Shankar CFO of Hinduja Foundries said that "We will go for debt, equity and internal accruals to fund our expansion plans. Though 51.3% of our revenue is from Ashok Leyland, we are hoping to bring it down to 35 per cent by focusing on other customers." He added that it would maintain its focus on catering to the high end segments of Ashok Leyland.

Hinduja Foundries had registered 14% YoY growth in turnover to INR 451.42 crore in 2007-08 as compared to INR 395.24 crore in 2006-07. While, profit before tax had gone up to INR 25.90 crore, the profit after tax stood at INR 16.92 crore.

NALCO to set up smelter and captive power plant in Orissa

BS reported that National Aluminum Company is exploring the possibility of setting up a Greenfield aluminum smelter and captive power plant near Jharsuguda in western Orissa at an investment of more than INR 14,000 crore.

Mr BL Bagra finance director of NALCO said that "Yes, we have plans to set up a smelter and captive power plant in Jharsuguda to add about 900,000 tonne alumina capacity which is exported annually now. The project's fate does not hinge on the availability of water."

The capacity of the proposed smelter is pegged at 500,000 tonnes per annum with a captive generation facility of 1,250 MW. The alumina required for the project is likely to be sourced from NALCO's existing refinery at Damanjodi and Engineer's India Limited, which has been appointed the consultant, has found the project technically feasible.

Jharsuguda is being chosen as the possible site for the plant as it is in the vicinity of the IB valley coal reserves. While the company has the required technology, land acquisition is expected to be trouble free as most part of the identified patch is government land and barren.

GE Shipping to invest INR 2,385 crore for more ships

Exim News Service reported that Great Eastern Shipping Company Limited will invest INR 2,385 crore over 3 years to acquire ships which will add about 0.85 million DWT to its tonnage.

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

ADAG foray in cement set to start by June 2008

It is reported that Anil Dhirubhai Ambani Group’s proposed foray into cement business is set to start in June 2008 with operations commencing on the first of the four 5 million tonne plants it intends to set up in Madhya Pradesh.

Madhya Pradesh has been strategically selected as the location for all four units as the company’s first UMPP would come up at Sasan. As the Sasan project would also be partially operational by 2012, it would coincide with operationalization of the group’s cement venture.

It has secured a prospecting license for a limestone mine with reserves of 250 million tonnes to start the cement venture that would be undertaken by a new company called Reliance Cement. Mr Arvind Pathak from ACC will head the cement venture while another official from Binani Cement has been appointed as project head. With the core team in place, other operational managers would now be appointed.

The first phase, which entails an investment of about INR 10,000 crore for putting up manufacturing capacity of 20 million tonnes in MP, would complement the group’s Sasan ultra mega power project that would generate and supply fly ash for cement manufacturing. In the second phase, cement manufacturing units of identical capacities may be put up in Gujarat and Andhra Pradesh. The AP project would gain leverage from the group’s second UMPP at Krishnapatnam.

An official in ADAG said that "We have received prospecting license for one of the seven limestone mines for which our applications have been filed. The first mine in Satna area has enough reserves to support a 5 million tonnes cement plant. The license work on the project would be started immediately to bring the unit into operation by 2012."

It is understood that the project would be funded on a debt equity ratio of 80:20. When the 20 million tonnes capacity for cement goes on stream, Reliance Cement would become the third largest player in the sector after ACC and Grasim. At full capacity utilization, the company could command 10% market share at current levels of production. Installed cement capacity in the country is about 170 million tonnes.

Patel Engineering bags major dam project in US

India’s leading civil infrastructure construction company Patel Engineering has bagged the USD 280 million Taum Sauck Upper Reservoir Dam reconstruction project in Missouri State of US.

Amren & Ozark Constructors, a 50:50 JV between of Patel Engineering’s wholly-owned subsidiary ASI and Fred Weber has bagged the contract.

The Taum Sauk Plant is owned and operated by Ameren UE, a subsidiary of Amren Corporation of St. Louis. The Tom Sauck plant is a reversible pumped storage project used to supplement the generation & transmission facilities of Amren UE. ASI RCC will excite the work

Ozark has been chosen to rehabilitate the existing dam at Tom Sauck. The scope of work involves rebuilding the existing inoperable upper reservoir with the construction of a concrete-faced symmetrical roller compacted concrete dam.

Mr Rupen Patel MD of Patel Engineering said “This project is a landmark event in the Indian construction sector as it is for the first time that an Indian construction company has penetrated the most stringent and demanding western market. Successful implementation of projects demands latest technology solutions and cutting edge project management skills. These skills, coupled with inexpensive and experienced labour from India, will help us compete against some of the existing giants in the global infrastructure arena.”

ASI RCC is a multi state general contractor with prime focus on roller compacted concrete dam construction. Patel Engineering acquired ASI RCC for their specific engineering expertise in roller compacted concrete used in construction of dams.

Jhajjar thermal project gets environmental clearances

BL reported that the 1,320 MW Jhajjar thermal power project in Haryana gets clearances from the ministry of environment and forest.

The project, promoted by Haryana Power Generation Corporation, envisages around INR 5,300 crore investment, to be spread over 1,215 acres of land. The project will set up two units of 660 MW each at Jhajjar in Haryana.

Punjab government and TATA Motors in JV to set up automotive school

PTI reported that, in a JV with the TATA Motors, Punjab government will set up a modern automotive and driving skill institute in Mukatdar district.

As per report, State Institute of Automotive & Driving Skills will be set up in a JV between the TATA and the state transport department in Mahuana village at a cost of INR 13 crore. The government would provide 14 acres to set up the SIADS, which would be run by a registered society with equal number of representatives from TATA and the government.

A high level team from TATA Motors held discussions with transport department officials in this regard. The team, led by Mr AS Puri senior GM of TATA Motors, presented the proposed institute's rules, syllabus and funding pattern.

PSA India invests in ABG Kandla Container Terminal

ABG Infralogistics Limited has informed BSE that pursuant to the letter dated February 5th 2008 ABG Infralogistics Ltd has informed that PSA India Pte Ltd has obtained the necessary regulatory approval to subscribe to the preference shares in ABG Kandla Container Terminal Ltd.

Accordingly, PSA India Pte Ltd has invested INR 240 Crore through 0.001% Compulsorily Convertible Preference Shares converting into 49% equity share holding on or after October 21st 2011 in compliance with the terms of License Agreement with Kandla Port Trust.

Centre imposed temporary ban on export of pig iron by PSUs

ET reported that, in yet another move to check spiraling steel prices, the government has imposed a temporary ban on export of pig iron by public sector companies like Steel Authority of India Limited, Rashtriya Ispat Nigam Limited and MMTC controlled Neelachal Ispat Nigam Limited.

The move is aimed at supporting the export oriented foundry and casting units that have been complaining about supply constraints and steep rise in prices of pig iron.

Official sources said that the centre is planning to hold an auction for the pig iron produced by the public sector companies for domestic buyers at their existing prices. Domestic buyers will get 10 days to make purchases, following which the PSUs will be allowed to export the left over metal. The advertisement for the auction will be released soon.

A government official said that "Since the auction for domestic players will give opportunity to all buyers to source as much as they want at existing prices, the problem of supply constraint and rising prices is expected to be addressed. Export of pig iron from SAIL and NINL has already stopped. We are going to come out with the advertisements soon."

Since prices of PSUs are much lower than those maintained by private companies, giving first preference to domestic buyers will ensure the foundry and casting units will have access to more supplies from them than before. This may also encourage other private sector players to reduce prices and look for opportunities in the domestic market itself.

Pig iron production in India is around 5.5 million tonnes. Even though the quantum of exports is low, it is likely to grow with more players entering the business. PSUs are expected to play a stabilizing role by preventing widening of demand supply mismatch in the domestic market.

L&T secures INR 344 crore orders from PGCIL

Larsen & Toubro Limited recently announced that it has bagged orders totaling to INR 344 crore from Power Grid Corporation of India Limited for the construction of 755 kilometer of transmission lines associated with Western Region System Strengthening Scheme-II.

The scope of work for this project, to be executed by L&T’s engineering, construction & contracts division, involves survey, fabrication & supply of towers and erection of 400 kV direct current transmission lines from Bhadrawati, Urnarkhand, Parli & Raipur, Sakoli and Wardha in Maharashtra. The project will be completed in 30 months.

ArcelorMittal plans to invest up to USD 10 billion in Indonesia

Reuters reported that ArcelorMittal is looking to invest USD 5 to USD 10 billion in Indonesia's steel industry.

Mr Sofyan Djalil state enterprises minister told reporters after a meeting with ArcelorMittal's executives that ArcelorMittal had proposed an iron ore and coal mining joint venture with Indonesian mining firm PT Aneka Tambang Tbk ANTM.JK and a joint venture with state owned steelmaker PT Krakatau Steel to develop a new steel plant in Java.

He added that "Their entire proposal is worth between USD 5 billion to USD 10 billion.”

BDI rises to 4 month high on Atlantic Vessel Shortage - Report

Bloomberg reported that Baltic Dry Index, a measure of shipping costs for commodities, rose to a four month high after a reported jump in exports from Argentina increased speculation about a shortage of vessels in the Atlantic.

According to the Baltic Exchange in London, the index tracking transport costs on international trade routes advanced 274 points to 9,855 points. That's the highest since December 14. Prices have advanced for four consecutive weeks, the longest winning streak since October.

Mr Steve Rodley co manager of Global Maritime Investments Ltd's said that “We have got people jumping over each other to pick up the ships that are available for May.”

He added that hire rates within the Baltic's benchmark advanced for every class of ship, including Handymaxes. Rising prices for hauling coal and bulk commodities benefit shipping companies such as Navios Maritime Holdings Inc, Genco Shipping & Trading Ltd and DryShips Inc.

US steel import permit in March increase by 14% MoM

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of April totaled 2,911,000 net tons. This was a 14% increase from the 2,546,000 permit tons recorded in March 2008 and also a 16 percent increase from the March preliminary imports total of 2,513,000 net tons.

Import permit tonnage for finished steel in April was 2,217,000 net tons an increase of 7% from the preliminary imports of 2,064,000 net tons in March. For the first four months of 2008 total steel imports were 10,574,000 net tons down 8% from the 11,504,000 net tons imported in the first four months of last year. Total steel imports for 2008 would annualize at 31.7 million net tons or 5% below the 2007, 12 month total.

For April 2008, the largest finished steel import permit applications for offshore countries were:
1. Korea 190,000 net tons
2. China 185,000 net tons
3. Japan 172,000 net tons
4. Turkey 163,000 net tons
5. Germany 146,000 net tons
Finished steel import permit applications for China declined 23% in April compared to March preliminary imports.

Product categories that increased in April vs. March preliminary include:
1. Billets & Slabs up by 55%
2. Wire Rod up by 89%
3. Reinforcing Bar up by 57%
4. Tin Free Steel up by 71%
5. Plates in Coils up by 22%

Significant products that showed a year to date increase vs. 2007 include:
1. Oil Country Goods up by18%
2. Line Pipe up by 26%
3. Structural Shapes Heavy up by 10%

Mr Andrew G Sharkey III president & CEO of AISI said that “Of particular concern are the sharp increases in wire rod and rebar and the heavy pressure on the pipe and tube markets by China and Korea. AISI and US members will continue close monitoring of imports of certain products from certain countries.”

CSN to invest USD 2.3 billion in logistics

It is reported that Brazilian steelmaker CSN is planning to invest USD 2.3 billion over the next five years to expand its logistics operations in the Rio de Janeiro port of Iagatuai.

CSN in a statement said that the money will go to extending container terminals and creating a logistics support center and a private port to be named Lago da Pedra.

Mr Davi Emery Cade company's logistics director said that “The investment is aimed at making the facility one of the most modern in the country.”

BlueScope Indonesia orders for a new coating line

Siemens Metals Technologies has received an order from PT BlueScope Steel of Indonesia to equip a new integrated zinc coating and painting line. The processing line will be installed at the Cilegon site and is designed for an annual production of 175,000 metric tons of Zincalume® steel. The new facility is scheduled to start operating in the spring of 2010.

For the integrated galvanizing painting line, Siemens is engineering and supplying all the mechanical and electrical components as well as the basic and process automation systems. An inline skin pass mill with subsequent tension leveler is also part of the scope of supply. A Siemens roll coater will be used for painting. The layout of the installation will allow rapid production changeovers, which will increase the flexibility of BlueScope when the market demands changes.

The electrical equipment includes the medium voltage distribution system, all the drives, the basic and process automation systems and parts of the manufacturing execution system level. The operator control and visualization equipment, which features user friendly process and plant diagnostic functions, is easy to control and will make a significant contribution to fully automation operation of the lines.

Special control functions for strip movement will ensure a stable high production speed and prevent damage to the strip even in critical sections such as the furnaces. The components, systems and technological controllers used are part of the Siroll PL integrated and modular automation solution, which was specially developed for rolling mills and processing lines. Siemens will also perform commissioning and customer training.

PT BlueScope is a subsidiary of the Australian company, BlueScope Steel Ltd In Cilegon, around 100 kilometers to the west of Jakarta, and operates the only production facility in Indonesia that produces coated and painted steel products. Due to its good experience with its processing line in Thailand, which was also equipped by Siemens, BlueScope chose Siemens technology to equip the new line. As a result of the new equipment, the plant’s annual production capacity will be expanded to 275,000 tonnes per year.

CSC April revenue hits historical record high

China Steel Corporation boosted its April 2008 revenue to historical record high of TWD 20.42 billion up by 24.74% YoY as compared to TWD 16.376 billion in April 2007.

Its revenue in the January to April 2008 period reached TWD 77.78 billion, up by 18.74% YoY as compared to January to April 2007

Meanwhile, CSC claimed that due to regular maintenance of particular equipments, the total output and sales volume declined slightly to 772,192 tonnes and 835,637 tonnes respectively.

It indicated that the monthly revenue is very likely to hit historical record again this May.

Vallourec Q1 net income down by 20% YoY

Seamless tube major Vallourec announced its results for the first quarter of 2008. Its consolidated sales in the first quarter of 2008 declined by 4.8% YoY as compared with the first quarter of 2007 to EUR 1,383.6 million.

(In EUR million)

Mr Pierre Verluca chairman of the management board of Vallourec said that "Vallourec continues to deliver good performances and to demonstrate its resilience in spite of persistent dollar weakness and a surge in raw material costs. Demand remains robust, and our plants continue to operate at high capacity. The price increases which we have announced are progressively taking effect, making us confident in confirming our outlook."

US plate prices rise by another USD 78 per short ton

Reference prices released by The Steel Index this week show that plates in US have jumped upwards again since last week.

As per report the US plate reference price FOB Midwest mill is at a new historic high, rising USD 78 per short ton to USD 1216 per short ton as recent producer price increases were implemented.

Sims Group sees surge in Q4 profit

Reuters reported that world's No 1 scrap recycling firm Sims Group Ltd fourth quarter profit is likely to exceed that of the third quarter following its takeover of US firm Metal Management.

Sims reported an unaudited net profit of AUD 80.3 million for the third quarter ended March 31st 2008 up by 62% QoQ from the December quarter. The result included a contribution from the former Metal Management business for the period between March 15 and March 31.

Mr Daniel Dienst CEO of Sims in a statement said that "Demand and pricing from consumers for our ferrous and non ferrous metals is robust and freight rates have stabilized albeit still at historically high levels, which is supportive of an expectation for attractive operating conditions in our fourth fiscal quarter.”

Mr Dienst said that the company had seen strong prices for scrap metals worldwide, offsetting the effect on earnings of a strong Australian dollar. He added that because of a full contribution from Metal Management, as well as continued firm prices, fourth-quarter earnings are likely to exceed the third quarter, notwithstanding the potential impact of foreign currency translation.

Gerdau plans to sell USD 500 million of 10 year debt

Reuters reported that Brazilian steelmaker Gerdau is planning to sell USD 500 million of 10 year bonds in the international capital markets, reopening a bond sold last year.

As per report Gerdau plans to sell the bonds through its GTL Trade Finance Inc unit to pay down for a bridge loan it used to take over Quanex Corp.

Gerdau agreed to buy Quanex's auto parts business last year for USD 1.5 billion.

The sale on Thursday reopened a 7.25% coupon bond sold in October.

Indonesian tin shipments dip again in April

Provisional data indicates that Indonesian tin exports may have fallen from March to April. Bloomberg reported that the nation exported 7,857.92 tonnes worth USD 155.35 million in April 2008 compared with 8,606.27 tonnes worth USD 157.53 million in March.

The data was distributed to reporters by the trade ministry and is based on surveyors’ reports on the volume of tin checked prior to export. The reporting is part of the export licensing system for tin introduced in February 2007. The ministry has recently announced that a similar system will be applied to exports of other metals later this year.

No tin was cleared for export in April 2007, at a time when Indonesia’s independent smelters were all still shut down. Cumulative clearances for export by the ministry have amounted to 33,810 tonnes in January to April 2008 and 109,275 tonnes in the twelve months to April 2008.

(Sourced from www.itri.co.uk)

NSM appoints Mr Traiwut as president

Maharaj Planner Company Limited has announced the appointment of Mr Chanathip Traiwut as president of Nakornthai Strip Mill PCL effective May 6th 2008.

Corrigendum STT April 7th 2008 – Tenaris Q1 sales up by 8% YoY

STT team regrets mixing up of the company name in the above referred news article

This is to clarify that in th3 second paragraph of this news, Ternium was inadvertently. It may please be read as Tenaris.

Our readers are requested to note the same

The error is sincerely regretted

BSI Steel breaks ground for steel processing unit at Gauteng

Steel products stockiest, processor, trader and exporter, BSI Steel announced that it had broken ground this week for a ZAR 70 million steel processing and distribution depot at Meyerton in Gauteng in South Africa.

The Meyerton depot would be situated on a 23 hectare site owned by BSI, and would boast a 17 000 square meters under roof facility aimed at consolidating the group's processing and trading activities servicing Gauteng and overland African exports. The warehouse and office block would be completed by February 2009, with the installation of the slitting line commencing in November this year.

The new processing facility would include a second cut to length line, recently ordered from Reef Engineering and a slitting line, which was rebuilt last year.

Mr William Battershill CEO of BSI said that "With efficiencies being of vital importance in this industry, continuing to operate several businesses spread throughout Gauteng was untenable. Consolidation of our business into the new facility will significantly improve our service levels to our customers throughout Southern Africa and improve synergies between the various trading operations.”

US steel industry at crossroads over climate change

According to Mr Keith Busse chairman of the American Iron and Steel Institute, the North American steel industry has made significant gains in recent years but is now at a crossroads.

Mr Busse while speaking at the 116th General Meeting of the AISI said that "Our industry has already reduced energy use per ton of steel shipped by 29% since the Kyoto baseline year of 1990, which also puts the 17% reduction by America's steel sector of greenhouse gas emissions significantly below Kyoto standards.”

He added that "We are actively investing in research and new technologies to sustain significant progress.”

Indonesia to focus on development of ports and railway

It is reported that Indonesian government will give priority to the development of ports and railway infrastructure in 2008 to facilitate the flow of goods and reduce transport cost.

Mr Jusman Syafii Djamal transport minister said that the government is set to remove bottlenecks in ports and railways especially in Java. He added that modern navigation systems will be used in new international airport such as Kuala Namu in Medan and Lombok airport in Lombok as well as in the Hasanuddin airport in Makassar.

Gibraltar Q1 sales up by 7% YoY

Leading manufacturer, processor, and distributor of products for the building, industrial and vehicular markets Gibraltar Industries Inc announced its first quarter result ended March 31st 2008. Its sales from continuing operations in the first quarter of 2008 were USD 326 million up by 7% YoY as compared to USD 304 million in the first quarter of 2007. The increase of sales was the result of acquisitions made over the last 12 months, which added higher margin sales of USD 38 million.

Gibraltar’s income from continuing operations increased to USD 7.1 million as compared to USD 7 million in the first quarter of 2007. The first quarter of 2008 included a USD 1.6 million pre tax charge related to the consolidation of manufacturing operations and separation payments.

Mr Brian J Lipke chairman & CEO of Gibraltar said that “Our ability to generate higher first quarter sales and earnings in spite of housing starts off 30% and the North American auto build down 9% compared to the first quarter of 2007 is further evidence of the progress we are making in building a stronger business platform for Gibraltar.”

Mr Lipke added that “The steps we have taken to diversify and broaden our business portfolio through our recent acquisitions especially our growth in the commercial building, industrial, and international markets the divestiture of underperforming assets and businesses, and the streamlining and strengthening of our existing operations are continuing to improve our core operating characteristics and have enhanced our ability to deliver improved results, even in a difficult operating environment. ”

Mr Henning N Kornbrekke president & COO of Gibraltar said that “We continue to make progress improving our operational efficiency, lowering our cost structure, and intensifying our focus on asset management. We further streamlined our operations in the first quarter with three additional facilities closed or consolidated, in addition to the 11 we completed in 2007, with others scheduled for the balance of the year. In spite of rapidly escalating raw material costs, we continued to focus on working capital management and that, coupled with our earnings, allowed us to pay down an additional USD 26 million in debt during the quarter, on top of the USD 65 million of debt we repaid in the fourth quarter.”

75 jobs could be relocated from AK Steel

WHIO reported that some 75 research jobs may be relocated from AK Steel in Middletown.

A company official said that its' considering the move due to ongoing maintenance and utility cost issues from its' Grove Street office.

Middletown Mayor Larry Mulligan said that the city was aware that the company was evaluating the usability of that office and said that the city will attempt to work with the company so that Middletown is included as one of the company's options.

Tube City Michigan operation achieves ISO certificate

Tube City IMS, LLC a provider of products and services to steel mills and foundries throughout the United States, Canada, Europe, Mexico, South America and Asia announced that the Company's Tube City Division facility at Ecorse in Michigan has passed an extensive ISO 9001:2000 quality system surveillance audit thereby retaining its quality system certification.

The site has been ISO certified since May 2002.

Corrigendum STT April 7th 2008 - MEPS latest forecast on Asian carbon steel prices

The headline may please be read as

“MEPS latest forecast on Global carbon steel prices”

The error is sincerely regretted

AK Tube honored for perfect safety record

AK Steel announced that the Safety Award of Honor from the Fabricators & Manufacturers Association, International has been presented to the Columbus, Indiana plant of AK Tube LLC. Employees of the plant earned the award for their perfect safety record of having no recordable illnesses or injuries in 2007.

Fabricators & Manufacturers Association noted that the award "recognizes the company's commitment to providing a safe work environment for its most valuable assets, the employees."

Mr James L Wainscott chairman, president & CEO of AK Steel said that "Congratulations to our AK Tube Columbus, Indiana employees for their 2007 safety performance. Working an entire year without experiencing a single recordable injury is truly an exceptional safety achievement."

The Columbus plant is a previous recipient of Fabricators & Manufacturers Association's Safety Award of Merit award for its 2006 safety performance. Also, the Columbus plant participates as a Star site in the Indiana Department of Labor's Voluntary Protection Program. The VPP Star signifies that the plant's employee programs go above and beyond Occupational Safety and Health Administration requirements, and reflects a cooperative relationship between management, employees and OSHA.

Fabricators & Manufacturers Association with more than 2,000 members is the leading educational association serving the metal forming and fabricating industry.

PTP builds four more berths - Report

Sea Trade Asia reported that the Port of Tanjung Pelepas in Malaysia will allocate MYR 400 million to build four berths and a 1.44 hectare wharf to increase its capacity.

Mr Datuk Mohd Sidik Shaik Osman chairman of Port of Tanjung Pelepas said that berths 11 and 12 as well as the wharf will complete constructions in the second quarter of 2009 and the construction of berths 13 and 14 will begin in 2009 and should complete in the first quarter of 2010.

He added that the annual handling capacity of Port of Tanjung Pelepas will rise to 12 million TEU after the expansion.

Port of Tanjung Pelepas handled 5.5 million TEU in 2007 and wants the 2008 throughput to reach 6.5 million TEU. The throughput hit 1.3 million TEU by late April 2008.

Greek Ports to face more strikes this week

It is reported that workers at the Greek ports of Piraeus and Thessaloniki are due to strike on May 8th to 9th as part of their protest against privatization plans.

The stoppage was called amidst reports that privatization tenders for operations at Piraeus and Thessaloniki will close soon, with the winners expected to take over the facilities early next year.

The tenders are for management contracts for two of the three container facilities at Piraeus and for the entire container terminal at Thessaloniki.

Mr George Voulgarakis merchant marine minister on April 14th 2008 said that “The tender will be complete by July this year while the investors will take over in 2009.”

Port workers have opposed the privatization and there has been a series of strikes since January. Dock workers have also been refusing to work overtime and on weekends or holidays.

CSN Q1 profit up by 51% YoY

Brazilian steelmaker Companhia Siderurgica Nacional announced its results for the Q1 of 2008:

Highlights of the Q1 results are:

1. CSN posted a Q1 of 2008 net income of BRR 767 million up by 51% YoY.

2. Steel product sales volume totaled 1.4 million tones in Q1 of 2008, a new first quarter record, 17% up on the first quarter of 2007 and flat when compared to Q4 of 2007

3. The domestic market accounted for 80% of quarterly sales volume and the exports for 20%. In March 2008, the ratio of sales on the domestic market, where margins are traditionally higher, over total sales volume reached the record level of 84%

4. First quarter net revenue totaled BRR 3 billion up by 22% YoY and slightly more than the Q4 of 2007, when sales are traditionally higher

5. The Company recorded a 38% share of the domestic flat steel market, led by tin plate, galvanized, hot rolled and cold rolled which posted respective growth of 1%, 4%, 3% and 6% over Q4 of 2007;

6. Q1 of 2008 EBITDA came to BRR 1.3 billion up by 26% YoY as compared to Q1 of 2007 and 1% higher than the Q4 of 2007, while the EBITDA margin stood at 42%

7. Net debt closed the quarter at BRR 4.8 billion, BRRR 1.3 billion down on the Q1 of 2007 and stable in relation to the previous quarter, even after the dividend payment and investments of BRR 800 million and BRR 400 million.

Dhaka to seek revised proposal from TATA Group - Report

The Daily Star newspaper reported that Bangladesh government is likely to inform TATA Group that they cannot spare gas supplies for its proposed projects under USD 3 billion investments and it should seek for alternate sources. This could further delay TATA Group’s investment plans in Bangladesh.

The report cited an official of Bangladesh’s energy ministry as saying that the government will ask TATA to submit revised proposals so that instead of gas it can use other raw materials in the projects.

TATA and the government are scheduled to resume talks on Sunday. The agenda for talks was set last week when Mr Manzer Hossain resident director of TATA met Mr Hossain Zillur Rahman commerce adviser and Mr Kamal Uddin Ahmed chief of board of investment.

In 2005, the TTATA group initially proposed setting up a 1,000 MW power plant, a steel mill with an annual production capacity of 420,000 tonnes and a 1 million tonne fertiliser unit in Bangladesh.

EEW to supply 18 kilometers of SS pipes to Qatar using Outokumpu plates

It is reported that German pipe manufacturer Erndtebrücker Eisenwerk and Outokumpu have joined forces to supply 18 kilometer of LNG pipe for a dock loading facility Qatar Gas Berth 6 in Qatar Gas project. The delivery of the Qatar Gas Berth 6 pipes is scheduled for completion by mid summer of 2008.

Berth 6 is a new docking facility at Ras Laffan. To do its share of loading the Port’s projected 1,120,000 cubic meters of LNG per year, Berth 6 needs 18 kilometers of pipe running in several parallel lines between the storage tanks and loading points.

To manufacture the pipes at its Erndtebrück plant in Germany, EEW takes more than 4,600 tonnes of Outokumpu plate of grade 1.4301/1.4307 (304/304L) and 12.7mm thick plates. Outokumpu can produce this plate thickness both using the coil process and at its plate mills. In this case, EEW reaps benefit in production welding the pipes mainly from coil process plate, while producing a small volume of the pipes from quarto plates.

Pipe dimensions
1. 914.4mm x 12.7mm
2. 863.6mm x 7.92mm
3. 711.2mm x 12.7mm from quarto plate
4. 762mm x 12.7mm from quarto plate
18 kilometers of pipe, close to 16 kilometers from one size 914.4mm x 12.7mm

Pipe plate materials
1. 4591 tonnes of grade 1.4301/1.4307 (304/304L) CPP, 12.7mm thick
2. 42 tonnes of quarto plates of the same grade and thickness, 2.2m and 2.36m wide
Total 4633 tonnes

Mr James Heather sales director of EEW said “With Outokumpu, we have one partner for both CPP and quarto plates. We have been very successful together in subsea pipelines.”

Erndtebrücker Eisenwerk Group is a major producer of carbon steel SAW pipes and is the world’s largest producer of heavy wall large-diameter stainless steel SAW pipes.

Erdemir Steel announces HR and CR% price hike

Turkish steel major Erdemir Steel has announced to increase its hot rolled coil price by USD 150 per tonne to USD 1200 per tonne and its cold rolled coil price by USD 120 per tonne to USD 1235 per tonne respectively.

Egyptian Iron and Steel net surges by 229% in 9 months

Egyptian Iron and Steel announced that its unaudited net profit for the first nine months of its 2007-8 financial year rose by 229% YoY to EGP 777.5 million as against EGP 236.5 million in 9 month period of 2006-07.

Egyptian Iron and Steel’s financial year starts on July 1st

Linde and ADNOC to build 2 ASU in Abu Dhabi

The Linde Group and The Abu Dhabi National Oil Company have decided to construct two large air separation units through their joint venture Elixier in Abu Dhabi. Total investment costs amount to approximately USD 800 million.

Starting at the end of 2010, the new plants will be connected to the utility and pipeline network and will supply nitrogen for injection into the onshore condensate field in Habshan in the Emirate of Abu Dhabi to free natural gas for the national grid. The two ASUs will have a total nitrogen capacity of 670,000 standard cubic meters per hour.

Dr Aldo Belloni member of the executive board of Linde AG said "By using our expertise to increase the efficiency of fuel production at the Gulf, Linde makes another important contribution to the solution of the energy dilemma. With this project, our presence in the Middle East gets a significant boost in quality and size, so that we remain the leading gases and engineering company in this thriving market."

State-owned oil company ADNOC owns 51% and Linde 49% of the shares in the Elixier joint venture with legal name of ADNOC Linde Industrial Gases Company Ltd, which was founded in December 2007.

ADNOC manages the onshore and offshore oil, gas and petrochemical business in the Emirate of Abu Dhabi in the United Arab Emirates.

UAE could start VAT from 2009 – Report

Mr Abdul Rahman Al Saleh executive director of Dubai Customs said that UAE is likely to introduce a value added tax in early 2009 as studies into its implementation have reached an advanced stage.

The indirect tax on goods and services will replace the existing customs duty, which will be phased out as part of free trade pacts the GCC will sign with a number of key trading partners such as the EU, China and India.

Mr Al Saleh said that "Having spent 2 years studying VAT around the world to ensure that what is proposed for the UAE and the GCC is best practice, we are now in phase two, which is looking at how to successfully implement VAT." He added that other GCC states are also expected to adopt VAT after it is introduced in the UAE.

Mr Al Saleh said that the tax rate will be between 3% and 5% and initially it will generate about the same amount as collected in customs. The initiative is being assisted by the International Monetary Fund. Dubai plans to spend the money raised through VAT on social services like health and education. Al Saleh promised that with VAT being set at a lower rate than the present customs duties, its burden on people is expected to be minimal.

While it may be easier to impose VAT on transactions involving physical goods, the government is still unclear about how to bring various types of service under the proposed tax.

Kuwait to launch USD 19 billion refinery upgrade tender

Kuwaiti news agency Kuna reported that Kuwait National Petroleum Company is planning to upgrade its Mina Abdullah and Mina Al Ahmadi refineries with up to KWD 5 billion.

Mr Saad Al Saad deputy chairman of KNPC said that the tender would be launched in August 2008 after winning approval from Kuwaiti authorities. He added that KNPC wanted to upgrade the capacity of its Mina Abdullah and Al Ahmadi refineries to 800,000 barrels per day from 600,000 barrels per day by adding new units or improving existing ones. The project's cost would range between KWD 4 billion and KWD 5 billion, up from an initial estimate of KWD 1 billion in 2003.

The refinery upgrade, which is due to take effect after closure of the ageing Shuaiba refinery in 2011, is part of plans by the major OPEC producer to raise refinery capacity to 1.415 million barrels per day from 930,000 barrels per day. KNPC is also due to announce the winners for a tender to build a 615,000 barrels per day refinery.

KNPC has delayed the tender several times and more than doubled the budget to USD 14 billion amid spiraling costs in the oil industry.

Halliburton wins key ADCO contract

Trade Arabia News Service reported that Halliburton has been awarded a 3 year contract by Abu Dhabi Company for Onshore Oil Operation to provide a range of completion equipment for onshore oil and gas wells. The contract includes the provision of production packers, subsurface safety valves and subsurface flow controls.

Mr Gasser Badrashini VP of Halliburton’s Middle East region said that "This award is significant both in terms of value and volume. As a major supplier of downhole completion equipment in the UAE, Halliburton will continue its ongoing support of ADCO’s strategy to boost oil and gas production by providing a range of technically superior, cost effective completion solutions."

A key differentiator in the selection of Halliburton is its recognized technical and service support in the region, competing prices and delivery performance. The award includes several uniquely designed permanent and retrievable packers, along with Halliburton’s highly reliable SP and NE subsurface valves, both of which are recognized as industry standards and have been run with zero failures in previous ADCO operations.

Mr Ahmed Lotfy Halliburton’s Eastern Hemisphere president said that "Being selected for this work validates that our completion offerings are continuing to gain momentum with operators in the Eastern Hemisphere and underscores the continuing success of our efforts to expand our international operations."

Iranian non oil exports hit USD 1.4 billion in March 2008

Iran’s customs administration announced that Iran’s value of non oil export has surpassed USD 1.4 billion in the first month of the current Iranian year started March 20th 2008 up by 18% YoY.

The lion’s share of export bound goods was destined for China, the United Arab Emirates, India, South Korea and Japan.

During the same period, the value of imported commodities amounted to USD 2.9 billion showing a 43.6% YoY increase in terms of value.

UAE, Germany, Switzerland and South Korea are the main exporters to Iran.

Ansteel announces prices for June 2008

Angang Steel Company Limited has adjusted prices of some products for June 2008.

CR products
Price rise of steel plate with super advanced precision is changed from CNY 180 per tonne to CNY 120 per tonne in base price table.

Large section products
Base prices of steel rail for export rise up by CNY 300 per tonne.

Wire rod products
1) Base prices of low carbon wire rod rise up by CNY 350 per tonne
2) Base prices of cold heading steel wire rod, spring steel wire rod and high quality carbon wire rod rise up by CNY 450 per tonne
3) Base prices of wire rod for steel curtain strand LX70A and LX80A rise up by CNY 400 per tonne, that for LX70B rises up by CNY 550 per tonne and that for LX80B, LX70C and LX80C rise up by CNY 500 per tonne.
4) Base prices of other wire rod rise up by CNY 400 per tonne

Seamless products
1) Base prices of non-thickened oil pipe and casing pipe rise up by CNY 600 per tonne
2) Base prices of casing pipe J55 rise up by CNY 300 per tonne, N80 rise up by CNY 100 per tonne
3) Base prices of line pipe CNY 300 per tonne.

Medium and heavy plate
1) Base prices rise up by CNY 150 per tonne
2) Base prices of ship plate rise up by CNY 100 per tonne

Baosteel rolls out ultra high strength plates

China's largest steelmaker Baosteel has successfully rolled out 1400 Mpa ultra high strength heavy plate, a product representing the top technology in the world, which very few steelmakers globally can yield the product at the moment.

Ultra high strength steel refers to steel products with yield strength of more than 1200 Mpa and tensile strength of over 1400 Mpa.

Handan Steel increases EXW prices for rebars and plates

Hebei based Handan Steel today adjusts its EXW prices upward by different ranges, based on prices released on Apr 28th 2008:

Wire rod – Up by CNY 450 per tonne
Q235 6.5mm common carbon wire rod - CNY 5940 per tonne
Q235 6.5mm high speed wire rod – CNY 5980 per tonne

Rebars - Up by CNY 350 per tonne
HRB335 12mm rebar – CNY 6080 per tonne
HRB335 14mm rebar – CNY 6030 per tonne
HRB335 16-25mm rebar - CNY 5880 per tonne

Medium plate – Up by CNY 280 per tonne
Q235B 20mm medium plate - CNY 6580 per tonne

Prices listed above are inclusive of 17% VAT and are effective as of May 8th 2008.

(Sourced from MySteel.net)

Sino Steel to be listed in this year

It is reported that China’s largest trader Sino Steel is planning to list this year.

According to Mr Huang Tianwen president of Sino Steel Group, Sino Steel plans to be listed within 2008. Sino Steel will also strengthen mineral resources exploitation and build the whole industrial chain which provides services to iron and steel enterprises.

Mr Tianwen indicated that Sino Steel Group is now constructing projects in many countries including India and Turkey. He added that the annual income in Sino Steel in 2003 was CNY 13 billion, while the income in 2007 was CNY 120 billion. Profits in 2007 and in 2003 were CNY 3 billion and CNY 200 million respectively.

Laiwu supplies rebars to Beijing Shanghai high speed railway

It is reported that on April 18th 2008, with the formally start up of Beijing-Shanghai high-speed railway’s foundation laying ceremony, Laiwu Steel Group supplied more than 14,000 tonnes rebar for construction to the various sites along the railway.

As per reports, Laiwu Steel will continue to deliver approximately 100,000 tonnes of steel to this project.

This year, Laiwu Steel increased the effective resources production to the key projects in allusion to the construction projects of stated major railways.

The Beijing to Shanghai high speed railway project is the world’s longest line with highest technical standard for high speed railway.

Hangzhou Steel inks agreement with Jiangdong Carbon

It is reported that Hanzhou Steel and Nantong Jiangdong Carbon Company Limited have signed a strategic agreement on super high power graphite electrodes for EAF.

Based on Nantong city, Jiangdong Carbon has a business scope of super high power graphite electrode, special graphite products, carbon materials and entity investment. It ranks 1st in the production, sales and exports of super high power graphite electrode. It is also one of few manufacturer nationwide capable of producing 600mm super high power graphite electrode on commercial basis.

Statistics showed that domestic mills have long been relied on imported super high power graphite electrode for their EAF at a price of CNY 10,000 above homemade ones. However, after many years of trial use starting from 1999, Hangzhou Steel found Jiangdong’s products have approached or reached the international level in quality, which contributed to the cooperation between the two companies this time.

Sinosteel and Rickmers to jointly build Tianjin docks

It is reported that Tianjin Port Group, Rickmers Line and Sinosteel Group will jointly build Tianjin dock and will expand shipping, logistics, financing the other aspects of cooperation.

Rickmers Line expressed that it will closely tie up with Tianjin to further enhance the company’s confidence in the development in Tianjin.

Rickmers Line is the world’s largest grocery transport company, headquartered in Hamburg, professionally carries steel products, overweight mechanism equipments and large investment goods projects.

Tianjin Pipe Company and other large scale enterprises are Rickmers Line’s long term cooperative partners.

Chinese rebar domestic prices start downward correction

It is reported that construction steel market, which has been flourishing in China since February has seen an evident decrease and the market is likely to start its correction.

On Shanghai market, HRB335 20mm rebar is being offered at CNY 5380 per tonne to CNY 5390 per tonne down CNY 70 per tonne to CNY 80 per tonne from peak levels. HRB400 rebar prices also went down by CNY 70 per tonne to CNY 5550 per tonne to CNY 5580 per tonne.

Mysteel forecasts that “Taking Shanghai price for HRB335 20mm as benchmark, it is going to see further downward adjustment unless it could exceed CNY 5500 per tonne. However, the strength above CNY 4900 per tonne would hint that any drop is merely adjustment.”

Severstal to acquire Frontdeal assets – Report

RIA Novosti reported that Severstal will acquire mining and processing assets from Cyprus based Frontdeal for RUB 117.203 billion.

Severstal will transfer to the Cypriot company 365,413,374 ordinary registered shares at par value of RUB 0.01 and placement price of RUB 320.74 per share in exchange for Frontdeal assets.

As per report, the deal was approved by the company's extraordinary shareholders meeting on May 29th 2006.

Frontdeal is owned by Mr Alexei Mordashov who also owns Severstal.

Evraz reduces USD 500 million IPSCO loan

Reuters reported that Syndication of Russian steel maker Evraz Group's USD 500 million bridge loan has closed via arranging banks ABN AMRO and Calyon and banks will be signed into the deal shortly.

A banking source said that the loan, which backs the borrower's purchase of IPSCO's North American plate and pipe business from Sweden's SSAB was in syndication when Evraz announced last month it had completed a Eurobond transaction totaling USD 1.6 billion.

As a result, the loan was reduced to USD 500 million from USD 2.1 billion and the source said that there would be no further syndication.

Ferrexpo production update for April 2008

Ukrainian iron ore major, London listed Ferrexpo has announced the production details for April 2008

(In ‘000 tonnes)

Rautaruukki to supply steel structures wood processor in Russia

Rautaruukki announced that it will supply steel structures in Russia for woodworking company Russian Laminate.

The construction project, which includes eight separate buildings, will take place on the production site of the Igoryevskiy woodworking plant in the Smolenskaya region, in western Russia.

Ruukki’s delivery is to consist of steel frame elements, sandwich panels and all steel structures except the foundation. Deliveries are to start in the middle of June 2008, with the production area ready to enter use almost within a year from the start of construction.

In addition to the main production building, Ruukki’s steel structures will be used for the bark stripping and cutting section facilities, electrical power installations with biofuel storage, and administration building. In total, Ruukki will deliver steel structures for a new factory complex of 60,000square meters.

Mr Andrey Romanov director of production and development of the company Russian Laminate said that “Ruukki has great experience in construction of industry buildings. Ruukki is a stable, reliable and qualified steel construction company. This became the determinant for the choice of the manufacturing company.”

The new production complex will become one of the most powerful production factories of medium density fiber board in Russia. After beginning production, it will be able to produce 400,000 cubic meters of plates per year. MDF plates are used in furniture production and for laminated flooring, as well as in other applications.

Railway union leader warned over proposed strike

Interfax reported that the Moscow Regional Transport Prosecutor's Office has issued a warning to railway workers union leader Mr Yevgeny Kulikov in relation to plans to stage a strike in the Yaroslavl railway sector.

The Prosecutor General's Office in a statement said that "The trade union leader has been warned that he will be held to account for approving the decision to suspend work by locomotive drivers."

The statement said that "Some of the locomotive drivers of the Pushkino and Zheleznodorozhanaya locomotive depots, at the call of the primary organization of the Russian Locomotive Drivers Union's Moscow Railway Trade Union Committee, suspended work on April 28 and 29 in violation of current legislation, which disrupted railway schedules.”

The Prosecutor General's Office said that the Federal Law on Railway Transport does not allow general railway transport workers, whose functions have to do with the movement and maneuvering of trains and providing services to passengers, to go on strike.

He added that Mr Kulikov was warned that violations of the law were unacceptable.

HydroOGK profit in 2007 up by 470% YoY

RIA Novosti reported that Russian Russia's largest hydroelectric power company HydroOGK net profit calculated to Russian Accounting Standards grew by 470% YoY in 2007 to RUB 8.62 billion (USD 365 million).

HydroOGK which unites about 50 hydropower plants across Russia with installed capacity of 25,000 MW said that its revenues in the reporting period climbed by 660% YoY to RUB 41.80 billion (USD 1.8 billion), production costs grew by 459% YoY to RUB 33.29 billion (USD 1.4 billion) and pre tax profit rose by 629% YoY to RUB 10.88 billion (USD 461 million).

EBRD buys OGK 5 stake from Enel – Report

RIA Novosti reported that the European Bank for Reconstruction and Development has bought a 4.1% stake in OGK 5 from a subsidiary of Italy's Enel and will now control 5.2% of the Russian wholesale generating company.

Enel Investment Holding BV a wholly owned Dutch subsidiary of Enel SpA will sell the minority stake to the EBRD, which bought a 1.1% stake in OGK 5 in November 2006, for a consideration of about EUR 175 million at the current euro/ruble exchange rate.

The EBRD said the purchase was one of its largest investments in a Russian power company.

Enel said that “After the deal, EIH will retain about 55.8% of OGK 5's share capital, sufficient to ensure effective control over the company through the power to nominate the majority of the members of its board of directors.”

The parties also signed an agreement under which EIH will transfer to OGK 5 advanced international practices in environmental protection and introduce corporate governance principles to protect the rights of OGK 5's minority shareholders.

OGK 5 has four subsidiaries and produces a total of 8,672MW of electricity. The Russian government holds a 26.43% stake in the company.

ArcelorMittal Inox raises SS prices by 30% in Brazil

ArcelorMittal Inox has confirmed the news that it will increase its stainless steel price by 30% in response to increasing raw material costs, such as iron ore, nickel and coal, over the next six months.

Reportedly, ArcelorMittal Inox has about 80% of stainless steel market share in Brazil. In Brazil, 90% of the stainless steel output is flat product, which consumed 250,000 tonnes of stainless steel flat products last year.

(Sourced from Yieh.com)

Alegheny Technologies planning new HSM – Report

It is reported that Allegheny Technologies is planning to set up a hot strip mill in its Brackenridge operation by investing USD 300 million in this project.

Further details including time lines are not known.

As per report, ATI is likely to look at its new project whether expanding new equipments for producing stainless, nickel alloys as well as silicon steels for its strength.

(Sourced from Yieh.com)

Allegheny Ludlum announce new surcharge fro CRGO

Allegheny Ludlum informed its customers that effective with shipments beginning on June 1st 2008, a surcharge of USD 720 per ton or USD 36 CWT is being added to grain oriented electrical steel invoices.

The letter said that this surcharge is subject to monthly adjustment.

Baosteel and Sichuan Mingda ink ferrochrome supply pact

Xinhua reported that Baosteel and Sichuan Mingda Group have signed long term cooperative agreement to jointly build ferrochrome strategic supply chain. Mr Zhu Junsheng vice GM of Baosteel and Mr Ge Junli GM of Sichuan Mingda Group were present at the signing ceremony.

According to the agreement, in the next 3 years, Sichuan Mingda will ensure Baosteel’s supply in term of the monthly or bimonthly price relations way. In addition, the two sides will establish regular information communication mechanism to further explore processing by commission or exchange of iron ore cooperative modes.

Sichuan Mingda Group is a ferrochrome producer with hydropower, market scale advantage, technical advantage and quality advantage, the annual production is about 150,000 tonnes. Since the operation of Baosteel stainless steel project, Sichuan Mingda Group had supplied high carbon ferrochromium to Baosteel the two sides established a good cooperative relationship.

Ferrochrome is one of the main raw materials to produce stainless steel and is China’s scare mineral resources.

Sinosteel to build nickel mine in Indonesia

It is reported that PT Sinosteel, a branch of Sinosteel Corporation of China in Indonesia, has set about building a nickel ore mine in the central Sulawesi district of the Indonesia. The program is projected to have an annual capacity of 500,000 tonnes of nickel ore and start production at the end of this year.

As per report, PT Sinosteel is still engaged in the feasibility research and busy negotiating with building sub-contractors.

The nickeliferous laterite ore of the mine might contain 1% to 2% nickel and will be sold to a newly established ferronickel plant near Tianjing in North China. The plant, affiliated to Sinosteel, can produce 80,000 ton ferronickel a year.

Mr Qian Jin GM of PT Sinosteel said that they have submitted the application for mine exploitation and might get approval from the local government within two and three months. He said that "We started preparation of the project since last July."

Mr Qian added that the output will be doubled to 1 million tonne if the second port is built as schedule near the mine.

Nickel is an important ingredient in steelmaking. This program will ensure Sinosteel needed nickel resource.

Growth in Chinese iron ore imports to slow down - Huatai Securities

A research report released by Chinese securities dealer Huatai Securities Co Ltd predicted that the growth rate of China's iron ore imports will decline in 2008 although the absolute import quantity will continue to increase.

The report estimated that China's crude steel output in 2008 will reach 540 million tonnes up 10.89% YoY over that in 2007 and pig iron output at 520 million tonnes up about 10.8%. Calculated at the ratio of 1:1.6 for iron ore consumption, it estimates the country's iron ore consumption in 2008 will increase by some 80 million tonnes over 2007 and China's raw iron ore production is estimated at 807 million tonnes in 2007 up by 15.46% YoY over 2006.

Huatai Securities predicts this figure will hit about 902 million tonnes in 2008, an increase of some 100 million tonnes over 2007, which could be converted into about 33 million tonnes of newly increased concentrates at 33% grade. That is to say, an additional 47 million to 48 million tonnes will still depend on imports in 2008, and the import growth over 2007 is estimated at 12% much lower than that in 2007.

The report also predicts China's import dependence on iron ore will decline with a pending slowdown of growth in crude steel production.

BHPB bid for Rio – BHP could sell assets if it gets Rio

AAP reported that BHP Billiton could reportedly sell more than USD 50 billion of assets if it took over mining rival Rio Tinto.

Britain's Financial Times reported that Mr Marius Kloppers CEO of BHPB would sell many assets as a result of buying Rio, similar to when Australia's BHP merged with Billiton of South Africa in 2001.

Mr Kloppers was quoted as saying that "We've got a critical asset threshold on things like size and resource life. When you put these two companies together that threshold lifts. I wouldn't be surprised if we continue to work out assets at the same kind of levels as before."

Mr Kloppers added that smaller or non core assets in aluminum, copper and ferrous metals could be sold.
The news paper said that during the BHP Billiton merger about 15% of the combined assets were sold because they were in non core business or were too small.

Japan utilities and Chinese coal exporters agree on long term price

Dow Jones reported that Japanese utilities have accepted a price of USD 131.40 a tonne for term coal offered by Chinese exporters for the April 2008 to March 2009 fiscal year

The report added that Japan Coal Development Co a coal trading joint venture owned by 10 Japanese power utilities, will officially inform the Chinese exporters of their acceptance today.

Japan Coal Development officials were not immediately available for comment.

Chinese domestic iron ore prices decline in April

According to the inspection of the Ministry of Commerce of China, because the growth rate of spot iron ore price in domestic marker was high before and the profit in iron ore mine exploitation increased, which boosted rapid rise of iron ore supply, domestic iron pre price declined in April 2008.

The average iron ore price in April in China was CNY 1,487.5 per tonne down by 4.95% MoM. In Tangshan, the EXW price of 66% fine ore was CNY 1,480 per tonne in April 2008 down by CNY 97 per tonne than the price in March 2008.

The Ministry of Commerce of China analyzed that on the one hand, iron ore supply increased and domestic iron ore output climbed up rapidly as well, so tight supply has been released in domestic market. Looking at data, crude iron ore output in China in Q1 was 168 million tonnes, up by 25.1% YoY. Meanwhile, iron ore import volume to China was as high as 111 million tonnes in Q1, up by 10.5% YoY.

On the other hand, Chinese steel output decreased, so the demand for iron ore was depressed. Due to slowing down economy increase, the growth rate of domestic crude steel output declined from the peak. China’s cumulative crude steel output in Q1 rose up by 8.6% YoY, down by 13.7 percentage points than the same period in last year. The growth rate was also slower than the increasing speed of iron ore supply.

(Sourced from Mysteel.net)

Haoning to acquire 9.55% stake in Jupiter Mines in Australia

Australian iron ore producer Jupiter Mines announced that Haoning Group, which is an iron ore trader in China has agreed to acquire 9.55% stocks in the company.

It is reported that Haoning Group will acquire 14.8 million shares in Jupiter with a total payment of AUD 3.7 million.

Haoning Group is a trading company in China. It imported 6 million tonnes of iron ore in 2007 and overseas sales income was USD 700 million, while domestic sales income was CNY 3 billion. It possesses 40 to 50 steady suppliers.

Haoning Group has recently founded Haoning Investing Co Limited and a capital company as well, which is specialized in capital mergers. Haoning Group plans to distribute 10 million tonnes of iron ore by 2010 and possess production ability in upward industry of iron ore in order to form core competitiveness in industrial distribution, trading, processing, etc.

Haoning Group is also negotiating on acquisition with Brockman Resources, which is another mineral producer in Australia.

Guodian will expand presence in coal mining

China Daily reported that China Guodian Corporation will expand its main business into coal mine developmentapart from power and heat production and supply.

Analysts said that the move will make Guodian's business more diversified and increase the company's competence, especially in the face of high coal costs.

Guodian has some coal mine assets and has started coal business in regions like Shanxi and Inner Mongolia.

Mr Liang Dunshi of China Coal Transport & Distribution Association said that "With more coal resources in hand, Guodian can offset the increasing cost for the raw material to some extent."

In the January to March 2008 quarter, five big power companies namely Huaneng, Datang, Guodian, Huadian and China Power Investment all saw losses in their power production business. Like Guodian, other domestic power producers have all begun to make forays into coal. China Huaneng Group plans to increase its annual coal production capacity to 60 million tonnes by 2010.

Reeling from high coal costs, these power companies have urged the government to raise electricity prices. In 2004, the government introduced a mechanism that tied power tariffs to coal price. If the coal price rises by more than 5% over a 6 month period, power tariffs will be raised, going by the mechanism.

Hubei based steel mills cut iron ore purchase price

Steelmakers in central China's Hubei province like Echeng Steel and Xinyegang have lowered the purchase price for domestic iron ore recently in light of thin buying interest as big mills have stayed away from the market for now on back of sufficient ore stock.

Currently, the delivery price for Fe 64% ore concentrate falls CNY 50 per tonne to CNY 1520 per tonne at Xinyegang, while Echeng Steel cuts CNY 30 per tonne for same grade ore to CNY 1600 per tonne.

The smaller mills only buy small volume due to liquidity issue. As a result, some ore miners have started to slash offer price, stirring up the already sluggish ore concentrate market.

Market analysts believe that the steel mills would step up purchase in the near future alongside rising steel prices, although both domestic iron ore and imported ore witnessed few transactions these days.

(Sourced from Mysteel.net)

TATA Metaliks inks MoU with MP for coking coal blocks

TATA Metaliks Limited announced that its has been actively pursuing to tie up with various state governments for raw material linkages and has signed a non binding MOU with the Government of Madhya Pradesh for allotment of coking coal blocks.

Further to these efforts of the Company, TATA Metaliks is keen to acquire iron ore mining lease in Karnataka and also to put up an end use plant.

Iron ore export must stop from Obulapuram mines

Anti Iron Ore Export Committee has demanded that the government should stop export of iron ore from Obulapuram mines to China via Krishnapatnam port.

Alleging that allowing exports of iron ore is against national interest, Mr J Kishore Babu committee convener claimed that India’s reserves would be exhausted within 50 years if exports are not stopped. He wondered as to how the government is allowing mining companies to excavate iron ore reserves despite knowing that existing deposits are not enough to last long given the steep rise in domestic consumption.

Mr Babu said that except India, whose domestic consumption is rising, no other country in the world has allowed its export. He added that countries like Ukraine and Australia had however allowed export of iron ore since their domestic consumption of steel would not pose any threat to their reserves even in the long run.

Meanwhile, a study team comprising Human Rights Forum president Mr Burra Ramulu, Andhra Pradesh Civil Liberties committee joint secretary Mr D Suresh Kumar, Organization for Protection of Domestic Rights vice president Mr V Hanumantha Rao and others visited the district on May 3rd and May 4th 2008 to ascertain as to how iron ore laden lorries proceeding from Obulapuram to Krishnapatnam have been posing a great danger to public life.

The team said that 70 people were killed while more than 150 injured in different accidents in the district for the last few months. They added that "Moreover, the movement of iron ore laden lorries has been affecting the health of several villagers besides damaging the environment and also the existing infrastructure."

CIL seeks more rakes from Indian Railways

It is reported that Coal India Limited has sought additional rakes from the Indian Railways to move more quantities of coal in view of its plans for improved coal production over and above the targeted figure of 405 million tonnes for the current fiscal 2008-09 and to ensure implementation of the 47 million tonnes pithead stock liquidation program.

The demand for more rakes was placed at a meeting between Mr PS Bhattacharyya chairman of CIL and Mr KC Jena chairman of Railway Board.

The program is taken up by the union coal ministry as an anti inflationary measure to improve the availability of coal in the market.

It may be noted that coal traffic has been the mainstay of the Indian Railways loading and contributed approximately 42.5% of the total freight loading in 2007-08.

Macarthur Coal CFO resigns

Macarthur Coal announced the resignation of Mr Ian Fuller CFO just five months after taking up the post in a move that may be linked to the recent takeover approach.

Macarthur Coal thanks Mr Ian for his contribution during his time with the Company and said that Mr Belinda Smith a Macarthur financial controller, has now been appointed acting CFO.

Shanxi closes over 100 million tonnes of obsolete coal capacity since 2005

Xinhua reported that China's largest coal producing province Shanxi has shut down over 100 million tonnes of backward coal production capacity since 2005.

As per report totaling 2059 coal mines that did not conform to safety standard and national policies have been closed down since August 2005.

The report added that local authority also actively accelerates the M&As in coal industry amidst outdated capacity elimination. So far, the five biggest coal enterprises in the province and China Coal have acquired more than 100 small scale coal mines with another 200 mines still under discussion for acquisition.

It said that Shanxi intends to cut the number of coal miners by another 30% by 2010 to form two 100 million tonne per year and three 50 million tonne per year coal titans, who would account for over 70% of the province's total production by then.

Western Canadian Coal gets USD 300 for coking coal

Western Canadian Coal Corp said that it has negotiated a majority of its 2008 coal year contracts for hard coking coal at an average above USD 300 per tonne.

The Vancouver-based company also said it has negotiated a majority of its 2008 coal year contracts for its low volatile PCI coal at approximately USD 248 per tonne.

Western Canadian produces 3.7 million tonnes of metallurgical coal from three mines located in the northeast of British Columbia. The company also has interests in various coal properties in northern and southern British Columbia and a 50% stake in the Belcourt Saxon Limited Partnership.

Dwyka Resources buys 30% stake in Mindanao coal project

Thomson Financial reported that Dwyka Resources Limited has taken an option to buy a 30% initial stake in the Daguma and Bonanza coal deposits on the island of Mindanao.

Dwyka Resources estimates an initial overall project resource in excess of 200 million tonnes of medium calorific value coal, suitable for the export and domestic power markets.

It said that there will be an aggressive drilling program with the aim of increasing the project resource significantly, adding that it has the option of increasing its interest to 100%.

Boliden Q1 revenue up by 10% YoY

Sweden based miner and smelter Boliden reported a better than expected first quarter operating profit of SEK 1.23 billion (USD 202 million).

Highlights of the Q1 results are:
1. Revenues rose to SEK 9,303 million as compared to SEK 8,455 million in Q1 of 2007
2. The operating profit fell to SEK 1,231 million as compared to SEK 1,286 million
3. The profit after tax was SEK 1,263 million as compared to SEK 921 million
4. Boliden was granted a deficit deduction of SEK 1,557 million, yielding a tax receipt of SEK 436 million during the first quarter.
5. Increased ore reserves and mineral assets.
6. Environmental license granted for Aitik expansion.

Boliden is a leading European metals company. The main metals are zinc and copper. Its operations are conducted in three Business Areas: Market, Smelters and Mines.

Massey subsidiary cited in fatal coal accident in West Virginia

AP reported that Massey Energy has been cited for safety violations that federal investigators say contributed to the death of a West Virginia coal miner.

The US Mine Safety and Health Administration found the violations while investigating a December 4th 2007 accident at an underground Massey mine in Kanawha County. Miner David Neal fell about 39 feet when a conveyer belt he was repairing started unexpectedly.

Three citations outlined in an MSHA report released said that the belt had inadequate startup alarms, power wasn't disconnected before miner Neal started work and the circuit breaker had a broken handle, making it inoperable.

A Massey spokesman did not immediately respond to requests for comment.

REC in talks with DVC for overseas coal mines acquisitions

Bs reported that Rural Electrification Corporation and Damodar Valley Corporation may come together to form a joint venture for buying coal mines abroad.

As per report REC received a proposal from DVC for a joint venture to buy coal mines abroad.

Recently, the government granted Navratna status to REC giving it financial and administrative autonomy.