Steel and mines ministries differ on iron ore export issue

ET reported that the ministries of steel and mines are at loggerheads gain over the issue of export duty on iron. While the mining ministry claims that the imposition of duties and poor global demand has taken a toll on India’s iron ore exports, the steel ministry has argued that ore exports are set to have increased marginally.

According to officials in the mining ministry, the country’s iron ore exports are set to fall by about 40 million tonnes in the current fiscal due to poor global demand and export duty of 15% imposed since June this year. Mr Shantanu Consul secretary of mines ministry said that the export tax on the iron ore should be scrapped to help miners.

Mr Consul said that “This year, the way things are going, total exports may come well below 70 million tonnes to 80 million tonnes. Last year, we exported 104 million tonnes and the average rate was about USD 130 tonnes.” He said that the average export price this year could be around USD 80 per tonnes. The steel ministry in a letter to the cabinet secretary has said that almost 35.26 million tonnes of iron ore was exported in the Q1 of current fiscal against 34.28 million tonnes exported in the Q1 of 2007-08.

Emphasizing on the need for fresh assessment of iron ore reserve, Mr Consul pointed that reserves in captive mines as well as freehold areas would be reassessed.

On the other hand, the steel ministry has instead asked for a hike in the duty to 20% from 15%. Falling demand for iron ore from China has hurt domestic miners who have asked for withdrawal of the export tax.

Finance commission team assesses iron ore mining situation

The Telegraph reported that a team of the 13th Finance Commission toured the Saranda forest and monitored mining activities, besides a host of development projects in the adjoining West Singhbhum district.

After making an on the spot assessment panel member Ms Indra Raja Raman advocated an increase in royalty on ores, especially on that of iron. Ms Raman who was accompanied by two joint secretaries and the economic adviser to the commission held a meeting with senior administrative and forest officials. Mr Sunil Kumar deputy commissioner of West Singhbhum and M SR Natesa divisional forest officer of Saranda attended it.

Mr Sunil Kumar said that the district administration had earlier urged the Union government to increase the quantum of royalty on ores. He said that “During her visit to mineral rich West Singhbhum, the finance panel member was apprised of the condition of roads in the area and the reasons behind such poor infrastructure.”

Mr Kumar said that the state government gets royalty ranging between INR 7 per tonnes to and INR 26 per tonnes from iron ore, thus earning an annual revenue of INR 40 crore. However at the same time it has to spend INR 400 crore to repair and maintain roads, often damaged during transporting the mineral. He said that “After hearing us out, the finance commission member said she would recommend raising the royalty rate to the Union government.”

Ms Raman had sought a comprehensive report on mining activities in West Singhbhum particularly in Saranda. The panel wants to know about the impact of mining activities on the people and the environment besides the modes of transportation from the mines.

TATA Steel lays stress on safety as a behavioral issue

Mr Manoranjan Prasad TATA Steel head of safety at a seminar on Occupational Health and Safety in Jharkhand said that organizations that are not able to bring about a change in their people's behavior towards safety practices are liable to face stringent compensation laws, like the recently enacted Corporate Manslaughter & Corporate Homicide Act 2007 in the UK and similar acts in some European countries.

Mr Prasad spoke on the importance of behavioral safety as a tool to manage people. He said the Manslaughter & Homicide Act, under which companies and other organizations can be prosecuted for failure to manage health and safety with fatal consequences, could soon be a reality in this country too.

He laid stress on safety as a behavioral issue that could not be put off. He said all injuries were preventable provided each person in the organization behaved responsibly. He said that “It would be wise to implement safety practices in the workplace rather than pay huge compensation for fatal accidents, as recommended in the Corporate Manslaughter & Corporate Homicide Act. The new European act was created to deal with very serious management failures.”

Mr Prasad said that the offence is now considerably wider in scope than overcoming the two problems of common law that of identification and aggregation in relation to incorporated bodies, and it now includes liability for organizations which could not previously be prosecuted for manslaughter.

DLW, RCF and RWF exceed production target in 5 months

Chittaranjan Locomotive Works produced 66 electric locomotives against the target of 66 electronic locomotives and Diesel Locomotive Works produced 102 diesel locomotives against the target of 100 diesel locomotives during April to August 2008.

Rail Coach Factory produced 680 coaches against the target of 656 coaches where as Integral Coach Factory produced 455 coaches against the targets of 461 coaches during the same period. Rail Wheel Factory produced 79068 wheels and 34882 axles during the same period against the target of 76344 wheels and 29296 axles during April-August 2008.

During the month of August 2008, CLW, DLW, ICF, RCF and RWF have produced 17 electric locomotives, 15 diesel locomotive, 129 coaches, 132 coaches, 16791 wheels and 7348 axles respectively against the target of 17 electric locomotives, 21 diesel locomotive, 119 coaches, 130 coaches, 15334 wheels and 5817 axels.

Jaisu Shipping bags capital dredging contract at Kochi

BL reported that the Kandla based Jaisu Shipping Company has bagged the capital dredging contract at Kochi port to deepen and widen the channels for the Vallarpadam project. The contract will also combine the maintenance dredging in the port channel for the next 2 years.

However the award of the work would be subject to the approval of the Shipping Ministry as the clearance of the Cabinet Committee on Economic Affairs and the Government sanction for capital dredging projects are yet to be received.

Highly placed sources in the port said that “We have been taking every possible step to save time to meet the contractual obligation with the DP World.”

The sources said that Jaisu Shipping had quoted well within the estimated cost for the capital dredging. However the prices quoted by the firm for the third year maintenance dredging happened to be exorbitantly high, taking the overall quote to INR 544 crore for the entire work which would be 14.86 per cent higher than the indicated cost.

The sources added that the port therefore mulling the possibility of not awarding the third year maintenance contract which would mean that the contract include only the capital dredging and first 2 years of maintenance dredging, thus keeping the prices near the estimated levels.

The capital dredging to deepen the channels for 14.5 meters of draught and maintenance dredging that coincides with the period of capital dredging had to be combined because of the physical inseparability of the works. It was also decided to include the maintenance dredging for a subsequent period of one year so that the contractor who carry out the capital dredging could be made responsible for maintaining the depth for the next 1 year considering the uncertainties of siltation that the port channels are prone to immediately after the deepening.

Ashok Leyland inks JV with John Deere

It is reported that Ashok Leyland has signed a JV agreement with John Deere for manufacturing and marketing of construction equipment's.

Ashok Leyland in its release to the Bombay Stock Exchange said that “The JV will seek to commence production by early 2010 and will initially roll out backhoes and four wheel drive loaders. The range will subsequently be expanded to include a full line of construction equipment. Its products will also be exported to markets of both the respective players internationally.”

It added that “The 50:50 JV will bring together Ashok Leyland's expertise in the automotive sector, it's marketing and distribution strength and John Deere's technical know how and experience in the construction equipment business. The JV is will set up a facility in India and is currently evaluating site locations.”

John Deere is one of the world's leading providers of products in the agriculture and construction sector.

POL and Iron ore boosts cargo growth handled at Ports - ASSOCHAM

According to ASSOCHAM Eco Pulse, handling of petroleum, oil and lubricants, iron ore and other liquid cargo have contributed at major Indian ports which are growing at 17.7% in FY 2007-08.

The ASSOCHAM Eco Pulse on trend of cargo traffic handled at Indian ports for the period 2005-06 to 2007-08 observed that petroleum, oil and lubricants have been the dominant commodities which were handled through major ports. It has increased from 154.33 million tonnes in FY 2006-07 to 168.89 million tonnes in the last fiscal contributing a rise to 9.43% in FY 2007-08 from 8.62% in FY 2006-07.

Iron ore was the next major commodity in the total cargo traffic handled contributing a rise from a mere 1.79% in FY 2006-07 to a whopping 14.13% in the previous financial year. The total iron ore traffic handled rose to 91.97 million tonnes in FY 2007-08 from 80.58 million tonnes in FY 2006-07.

Mr Sajjan Jindal president of ASSOCHAM said that “The growth in the cargo traffic handled reflects the fact that Indian ports have been exceeding their cargo handled targets set annually by the Government. Since the cargo traffic is increasing significantly there is an urgent need to provide adequate infrastructural facilities for cargo handling in order to meet the criteria of the international ports standards.”

Other liquid cargo handled at major ports saw a whopping rise from 25.39% in FY 2006-07 to 66.9% in the last fiscal. In value terms, the traffic has increased from 7.58 million tonnes in FY 2006-07 to 12.65 million tonnes in FY 2007-08.

Mr Jindal said that vegetable oils with a negative growth of 7.93% in FY 2006-07 saw an increase in the cargo handled which grew to 8.7% in the last fiscal. The cargo traffic of vegetable oils grew from 3.55 million tonnes in FY 2006-07 to 3.86 million tonnes in 2007-08.

The cargo traffic for sugar which stood at 0.79 million tonnes grew to 1.32 million tonnes registering an increase from a negative growth of 11.17% in FY 2006-07 to 66.54% in the last financial year. The cargo handling of cement also showed an upsurge in the total commodity traffic. It grew from a negative growth of 8.94% in FY 2006-07 to 4.91% in FY 2007-08.

On the contrary certain commodities saw a major dip in the total cargo traffic handled at the major ports. Despite witnessing a robust growth in production, coal saw a major decline from 71.12 million tonnes in FY 2006-07 to 64.72 million tonnes in the last fiscal registering a decline from 4.69% to a negative growth of 9% in the last financial year.

While fertilizers finished raw material saw an upsurge in the last fiscal, fertilizers raw material continued its trend of negative growth from 7.84% in FY 2006-07 to 36.23% in FY 2007-08.

As per release, Iron and Steel after registering a positive growth of 3.74% in FY 2006-07 saw a negative growth to 10.7% in the last fiscal. The cargo traffic for iron and steel grew from 8.85 million tonnes in FY 2006-07 to 79.07 million

Dredging Corporation announces change of guard

Dredging Corporation of India Limited has informed BSE that Ministry of Shipping, Road Transport and Highways vide its letter dated September 2nd 2008 conveyed the acceptance of resignation tendered by Mr GV Ratnam director Operations and Technical to the post of director Operations and Technical vide his letter dated July 21st 2008 and that he has been relieved from the services of the Corporation with effect from September 17th 2008.

Further the Company has informed that, Ministry of Shipping, Road Transport and Highways vide its letter dated September 29th 2008 conveyed that it has been decided with the approval of the Hon'ble Minister to assign the additional charge of the duties for the post of director, DCI to Mr P Sreedharan chief general manager of DCI with effect from September 18th 2008 for a period up to December 17th 2008 or till the post is filled on regular basis whichever is earlier.

Jindal Saw board approves merger of Highgate Consultants

Jindal Saw Limited has informed BSE that the Board of Directors of the Company at its meeting held on September 30th 2008 has approved the merger / amalgamation of Highgate Consultants Limited incorporated in BVI the wholly owned subsidiary of the Company with the Company subject to required judicial / statutory and other approvals.

West Bengal CM and TATA Motors to meet on Friday

It is reported that Mr Buddhadeb Bhattacharjee CM of West Bengal is scheduled to hold talks with Mr Ratan Tata chairman of TATA Group on Friday to discuss the future of the TATA Motors project at Singur.

Mr Bhattacharjee addressed a press conference at the end of an all party meeting where a resolution was adopted requesting the TATA Motors and the ancillary industries to resume work at Singur as soon as possible.

Mr Bhattacharjee said that “The project’s future does not depend only on the assurances of the state government for, there are various stakeholders involved. But there is no lacking in the sincerity of our efforts to ensure that work at the project site is resumed.”

He said that the resolution also focused on the need to implement rehabilitation and compensation packages for the affected farmers as well as take initiatives for the development of the area.

The Tata Motors announced suspension of work on September 2 in view of continued confrontation and agitation at the site.

Metso Corporation begins work on Rajasthan industrial park

Metso Corporation said that on October 1st 2008, has commenced work to set up a 49 acre industrial facility Metso Park in Alwar district of Rajasthan.

The company will invest close to INR 165 crore over two years to develop the industrial park. The proposed park will include office premises, several workshops, warehousing and a logistics centre.

It said that the facility will be fully operational by 2010 and will create around 700 jobs.

Vizag Port gearing up for competition from Gangavaram

BL reported that the Visakhapatnam Port which ruled the roost for several successive years as the number one port in the country lost its pride of place last year to Kandla by a very narrow margin. Now that the Gangavaram private port is ready for inauguration soon, the future is going to be pretty tough for the public sector port.

The Gangavaram port, being built by a private consortium led by Mr DVS Raju is expected to be inaugurated in October. Five berths have been built and are ready for operations and already 3 to 4 vessels have been handled at the new port on a trial basis. The consortium has spent INR 1,800 crore or so in the first phase building up the berths and other facilities.

Mechanized handling facilities have also been created at the port and there is a conveyor belt to the Visakhapatnam Steel Plant which is a major client for the new port. It is anticipated that during the first year of operations itself, the new port may take away close to 5 million tonnes of cargo from the established port and subsequently the going may get tougher for the VPT.

In the backdrop, the VPT is gearing up for the competition and is making efforts to improve the infrastructure at the port and expedite the ongoing projects. The VPT is taking up some of the long pending projects such as the upgrading of the general cargo berth at the outer harbor and installation of mechanized coal handling facilities.

Global tenders have been invited for the project costing INR 410 crore and they may be finalized by November or December. After completion it will be possible to handle the bigger vessels at the outer harbor.

Currently vessels up by 1.5 million DWT are being handled at the outer harbor berth and it will be possible to go up to 2 million DWT vessels. Besides, pollution will also be mitigated.

Further, the port has also taken up deepening the channel to inner harbor to handle the bigger vessels. All these steps it is hoped will improve the performance of the VPT.

Villagers boycott public hearing of Lanco power plant

Statesman News Service reported that the first ever public hearing of the proposed Lanco power plant has reportedly failed to garner support with locals boycotting the meeting and demonstrating in front of the venue recently.

As per report the Lanco Baabandh Power Private Limited proposes to set up two plants at Kurunti and Khadakprasad and notices for the same had been issued by the concerned authorities.

As per report, hundreds of villagers demonstrated in front of the venue and alleged that setting up of the plants would contribute only in raising the pollution level in the region. A Protestor said that “There are many industries here and they hardly take any steps to preserve the environment. Besides the ecological balance of the river Brahmani may also get affected since it flows close to the proposed site,” alleging that the company has demanded the land near to the river.

The villagers however alleged that the notices were not served in the proper manner and many of them were ignorant of such meeting till it started. An irate villager explaining their absence from the meeting said that “Holding a meeting suddenly will not solve the issue. The administration should have informed us earlier and taken our feedback.”

Dynamatic Tech acquires 12 MW wind farm

Reuter reported that Dynamatic Technologies has acquired a 12 MW wind farm from Tamilnadu Petro products Limited.

It said that the wind farm will generate around 18 million units of power annually and help reduce monthly energy costs by 85 at its Chennai complex.

Pipavav Shipyard may defer IPO plan - Report

BL reported that Pipavav Shipyard, promoted by SKIL Infrastructure, is having second thoughts on going ahead with its proposed USD 150 million IPO in the wake of the recent tremors on Wall Street that continues to rattle global and Indian markets.

As per report, Pipavav Shipyard in which Punj Lloyd holds about 24% stake will be studying the market situation for the next three months before taking a final call on its IPO plans.

Mr Ray Stewart CEO of Pipavav Shipyard said that “We have not yet shelved our IPO plans, but we are studying the market movements closely. If we go ahead with the IPO, it will happen in the next three months.”

Mr Stewart said that in the event of the company not taking up its IPO plans immediately it will consider other alternatives to raise the money. Without elaborating on the other options, he also indicated that there were many investors, both global and Indian, who were willing to invest in the company.

The report added that its present private equity investors include 2i Capital PCC, New York Life Investment Management India Fund, Merrill Lynch International, Deutsche Bank AG and ABN-Amro Asia Merchant Bank.

The company plans to invest part of the funds to finance its expansion program that will involve building of more sophisticated and bigger ships. Currently the shipyard which became operational recently builds bulk carriers with an order book of 22 ships involving a cost of about USD 1 billion.

Areva T&D and GE in pact for electrical solutions

Areva T&D India and GE Consumer and Industrial India announced a strategic alliance to focus on turnkey electrical solutions.

An official statement said that the alliance would focus on turnkey electrical solutions in the power generation, metals, mining, minerals and materials handling markets. The objective of this alliance is to provide 1 stop solution for customer needs such as power distribution, control and automation.

Mr Rathin Basu president and MD of Areva T&D India Country said that “To this alliance, GE brings low voltage and light products’ expertise while Areva T&D brings proven expertise in the complete range of high and medium voltage products and systems.”

Maruti Suzuki Q2 sales down by 1%

ET reported that the impact of rising auto finance loans was visible in Maruti Suzuki's September 2008 quarter sales numbers. The company's total vehicle sales down by 1% YoY to 1,89,451 units in Q2 FY 2009 and that was largely due to a 9.2 decline in unit sales witnessed for the company in August 2008.

Apart from sluggish sales in the last quarter, analysts at domestic brokerage houses point out that this auto company also grappled with higher inputs costs like steel which could once again put pressure on its operating margins in the September 2008 quarter.

In contrast during the June 2008 quarter the company’s unit sales had up by 13.5% YoY to 192,584 units, but higher raw material costs led to its operating profit margin declining 360 basis points YoY to 15.6%.

Institute of Indian Foundrymen upset over development of Nano project at Singur

It is reported that weakening of Nano Project At Singur Plant at Singur has really disappointed the Institute of Indian Foundrymen, since this INR 1 million car project taken up by TATA motors had given immense hope to foundry industry located at West Bengal, to develop a correlation with TATA motors.

After the decision by West Bengal government to encourage a foundry park in Howrah and approval by TATA to manufacture Nano at Singur the congress was being held in Kolkata. With the aim to display and exhibit the abilities and capacity of foundry industry and its suppliers, IIF would soon be holding an exhibition along with IFEX-2009 titled the 57th Indian Foundry Congress.

It was recently reported by IIF, tremendous growth in the automotive industry in the northern, southern and western parts of India triggered the growth of the foundry industry along with modernization or technology development to maintain the required standard of the automobile industry. Eastern region was an exception where modern automobile industry did not set up manufacturing facilities.”

IIF stated that the recent fast and unpredictable price rise for all the key raw materials has led to the shaking of confidence of the industry. Talking about the price hike since last one year, pig iron’s price has gone up by 69%, steel scrap by 67%, metallurgical coke by 235%, ferrosilicon by 87 % and ferrochrome by 180%.

Bangladesh increase power tariff to cut losses

It is reported that Bangladesh has increased the electricity price for power agencies by 16% to cut subsidies given by the state power firm whose losses are expected to balloon to USD 300 million this year.

The Energy Regulatory Commission said that the price of electricity the power agencies buy from the Power Development Board to supply to consumers would rise to 2.37 taka per KW hour or a unit from 2.04 taka effective from October 1st.

Mr Golam Rahman chairman of the energy commission said that “We’ve no other option but to raise power tariff considering the weak financial health of the sector. Power agencies said that they would submit a proposal to the energy commission to raise tariff at the retail level soon. The government in March 2007 raised electricity prices by10% and 5% for commercial and household uses respectively.

Demand for power in Bangladesh is now 2,000 MW higher than the 3,000 MW of generation capacity available as the country’s 60 decrepit plants struggle to keep going. The World Bank has said Bangladesh would require USD 10 billion in investment in the next 10 years to overcome the power shortages.

Thermal power plant to come up at Banswara in Rajasthan

Project Today reported that Rajasthan government is planning to set up 1,320 MW thermal power plant on the banks of the Mahi River in Banswara district of Rajasthan.

As per report, the proposed plant in Banswara will be a coal based power station. The plant location is within 80 kilometer of Ratlam railway station in neighboring Madhya Pradesh which will facilitate transportation of coal from western or south-eastern coalfields.

Banswara presently has only one power plant in the hydel sector which generates 140 MW. There are also plans to expand the capacity of the Suratgarh Super Thermal Power Plant by another 500 MW.

Dredging Corporation declares 150% dividend

It is reported that the Dredging Corporation of India has declared dividend of 150% for the third time including interim dividend of 75% paid in March for 2007-08 involving an amount of INR 42 crore.

The release said that the dividend was declared at its AGM in New Delhi and a sum of INR 15.50 crore was transferred to the general reserve during the year.

During the year, the DCI recorded a turnover of INR 771.47 crore compared to INR 626.21 crore during the previous year. It included operational income of INR 705.32 crore against INR 572.89 crore for the previous year. The profit before tax was INR 150.77 crore against INR 206.39 crore in the past. The net profit for the year was INR 154.82 crore against INR 188.73 crore in the previous year. The earnings per share for 2007-08 were INR 55.29 compared to INR 67.40.

The release added that the dredging capacity available with the DCI as on March 31st was 798.50 million cubic meters. During the year, the quantity dredged under various contracts was 677.30 million cubic meters, 84.82% YoY of the capacity as compared to 95.65% YoY during the previous year.

GVK Power Q1 net triples

BL reported that GVK Power & Infrastructure Limited recorded a total income of INR 141.37 crore with profit of INR 40.55 crore for the Q1 ended June 30th 2008 as against an income of INR 101.83 crore and profit of INR 13.17 crore for the corresponding quarter last year.

This reflects a growth of 39% in revenues and more than 3 fold rise in profit over corresponding quarter last year.

During the quarter the company acquired the entire equity share of GVK Energy and GVK Development Projects both of which have become wholly owned subsidiaries.

Gujarat NRE to increase authorized capital

With reference to the earlier announcement dated September 29th 2008 regarding Resolution passed by the Board Members by Circulation, Gujarat NRE Coke Limited has now informed BSE that the said Circular Resolution Revised by the Company which should be read as follows.

According to the announcement the Board of Directors of the Company by passing Resolutions by Circulation on September 29th 2008 have

1. decided to increase the Authorized Capital of the Company from the existing amount of INR 1500 crore to INR 2000 crore divided into 160 crore equity shares of INR 10 each with right to 1 vote per Equity Share, 10 crore "A" Equity Shares of INR 10 each with differential rights as to voting comprising of 100 votes per "A" Equity Share and 30 crore "B" Equity Shares of INR 10 each with differential rights as to voting comprising of 1 vote per 100 "B" Equity Shares, subject to the approval of members. All the three aforesaid classes of Equity Shares shall carry similar rights in all other respect that is shall be pari passu except right to vote as aforesaid.

2. As a consequence of creation of shares having differential voting rights as aforesaid, Board has also decided to amend the Memorandum of Association and Articles of Association of the Company, subject to the approval of members.

3. Decided to seek a resolution under Section 81 of the Companies Act, 1956 authorizing the Board to offer "A" Equity Shares on rights basis to the members of the Company in the ratio of 1 "A" Equity Share for every 450 existing Equity Shares and at a price of INR 1000 per "A" Equity Share, subject to the approval of members.

4. Decided to hold Postal Ballot exercise for the above purpose.

In this context also noted that presently there is a proposal for issue of "A" Equity Shares only and there is no proposal for issue of any "B" Equity Shares.

Italian flat product buyers expecting EUR 100 dip

It is reported that all customers in Italy have the idea that prices of HRC will drop to EUR 530 per tonne to EUR 540 per tonne on CIF FO basis with 90 days payment and that Quarto plates will follow to EUR 600 per tonne to EUR 620 per tonne on CIF FO basis with 90 days payment.

Then, at that level, market will possibly find a new balance and purchases should restart in a normal way.

As a result of this downward sentiment, although the current "correct" price for Quarto plates is around EUR 720 per tonne on CIF FO basis with 90 days payment but no one is buying.

Following offers have been reported

1. Eregli is offering HRC at EUR 590 per tonne on CIFFO with 90 days

2. AnShan is offering HRC at EUR 770 per tonne on FOB STWD on negotiable basis

(Sourced from www.steelprices-india.com)

Tokyo Steel reports JPY 8,000 price cut for October

Tokyo Steel Mfg Co announced that it has decided to reduce the list prices of several steel products by a uniform JPY 8,000 per tonne in its domestic supply contracts for October 2008. It describes the uniform price reduction as intended to narrow price differences between domestic and foreign steel products.

Of long products, deformed bars and wire rods are subject to the price reduction. Of flat products, the price reduction applies to HR coils, pickled HR coils, hot dip galvanized coils, checkered coils, HR sheets, pickled HR sheets and checkered plates. As a result, the new list prices of base sizes are JPY 92,000 per tonne CIF for deformed bars, JPY 97,000 per tonne free on truck for HR coils, JPY 102,000 per tonne FOT for pickled HR coils and JPY 103,000 per tonne FOT for checkered plates.

Meanwhile, the current list prices of base sizes go unchanged at JPY 118,000 per tonne FOT for H beams, JPY 119,000 per tonne FOT for I beams, JPY 121,000 per tonne FOT for U piles and JPY 126,000 per tonne FOT for heavy plates.

Mr Naoto Ohori MD & GM of marketing at Tokyo Steel said that "Steel market conditions both at home and abroad are in an adjustment phase amid enhances signs of a world economic slowdown in the financial crisis that has originated in the USA. With an uncertain economic outlook, there are fears that the credit crunch may affect corporate willingness to invest and consumer spending, leading to a fall in demand for steel products."

He said that on the part of Tokyo Steel, it intends to respond with steel production cuts and export deals while watching how things go with steel market conditions at home and abroad. As to export sales of steel products, the company is set to stay selective in the deals it negotiate, seeking FOB price levels of USD 1,050 per tonne for H beams and USD 950 per tonne for HR coils.

Tokyo Steel sees no situation so far making a fuss about H beam imports into Japan from China. But the company will have no option to fight back if import arrivals of Chinese H-beams have increased markedly.

Steel consumption in Vietnam falls for fifth consecutive month

Vietnam Steel Association said that steel consumption in Vietnam has fallen for the fifth consecutive month this year and more than 900,000 tonnes of finished steel and billets have been left unsold.

It estimated local steel consumption in September 2008 at 110,000 tonnes, down from 120,000 tonnes in August 2008 and 250,000 tonnes in July 2008.

Last week, VSA said that steel consumption in Vietnam may drop this year after the central bank raised interest rates to fight inflation and the government asked state owned companies to halt construction projects that were not crucial. Steel prices have fallen sharply from VND 20 per tonne in May 2008 to VND 15 to VNDN 16.5 million in September 2008.

According to VSA, more than 400,000 tonne of finished steel and 500,000 tonnes of billets are being stored in warehouses around the country. It has asked the government to lower export duties on billets to 2% and then create a plan to fully eliminate the tax later.

Japanese consortium may buy Namisa unit - Report

Brazilian newspaper O Estado de S Paulo reported that a Japanese consortium is the strongest candidate to take Brazilian steelmaker CSN's Namisa iron ore unit after a Chinese group of companies abandoned talks last week.

The report said that the Japanese consortium, which includes Nippon Steel Corporation, JFE Steel Corporation and Itochu Corporation, is now seen as the only strong candidate still interested in the deal.

It may be noted that the Chinese consortium, led by Shagang Group, has pulled out of the running due to lack of consensus about the value of its bid. TATA Steel and ArcelorMittal SA have also abandoned talks.

CSN has said that it wants to sell 40% to 50% of the unit but would entertain bids for the whole company, which has complicated the bidding process.

Metalfer Steel boosts output to meet demand

It is reported that Serbia’s Metalfer Steel Mill has boosted its annual production to 250,000 tonnes to completely fill domestic demand.

Mr Branko Zecevic CEO of Metalfer Steel said that "The production will likely soon turn to exports. It has so far invested some EUR 20 million in its production facilities and hired a workforce of 220."

Mr Zecevic said that it will complete development of an integrated scrap iron foundry and production of iron girders with an annual output of 500,000 tonnes and a workforce of 200 within a year.

In depth analysis of steel projects in India

What is important to take note of now, however, is that the Indian steel industry suddenly finds itself in a completely different context. In the world of steel, every player remains familiar with the cyclical nature of the growth. Therefore, the slowdown should not have surprised any in the industry. But, none really expected this to have happened so fast. The steel super cycle seems to have been ended abruptly or really?”

“India’s steel dream looks to be fading away” This is how we started our last year’s steel report. With the added uncertainty, the industry’s plans are in total disarray. There are no questions on the opportunities this country has offered in steel. From all points of view, these have been strong and credible ones.”

But the recent great years in steel have supported strong capacity growth in the steel industry in India. The more competitive brownfield expansion projects have started delivering results and more are expected to come. What has been extraordinarily interesting to note in the past few years is the growth of very small to mid size capacities.

The Indian steel industry is in a peculiar fix. The capacity could not be raised immediately because of their own strategic problems. The limited capacity in the country and higher global prices provided to them all the opportunities to make sufficient money themselves and raise their credibility in the global capital market. However, an impulsive government, given the high political value attached to inflation in India, intervened in the steel business more than it needed to do.

Despite the fact that the capacity expansions in India have been of recent origin, a huge chunk of the existing capacity is technologically outdated or is uniquely backward.

It will be premature to write India’s steel ambition off despite all the bad news surrounding it currently.”

“Indian Steel Projects: Ground Reality, Strategic Issues and Opportunities” from Steel and Natural Resources Strategy Research analyses the context each significant producer is placed in and identifies their core problems. It makes an objective assessment of the strength and weakness of each of the major projects, when they are expected to be completed and at what cost.

It takes a macro view of the emerging steel supply scenario till 2021.

This 115 page report with 35 tables, 12 charts, a number of annexure, three maps and an appendix looks at the steel industry’s future in India from a strategic point of view to guide the investors in the industry, capital goods industry, steel traders, raw materials suppliers and the policy makers in the government in their own individual planning for the future.

Report Summary:
1. Published: Sep 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 115

Price: USD 1100 or INR 50,000
(Note: You can Save USD 100 if you order before October 15th 2008)
(Additional Charges would be levied for delivery of file on a CD or in printed form)
You can order your copy to reports@steelguru.com

Steel prices in US continue to slide

Purchasing.com reported that, with the manufacturing economy in disarray and steel purchasing in decline, warehouse inventories are accumulating, market prices are accelerating their slide and mills are reported to be begging for orders.

As North American scrap costs have dropped and are expected to drop even more, steel transaction values are falling quite rapidly. So, hot rolled steel sheet slipped to an average USD 983 in September 2008, down by 6.2% MoM from August 2008.

Gutierrez inks deal with NSC for steel mill in Venezuela

It is reported that Brazilian industrial conglomerate Andrade Gutierrez and Venezuela's National Steel Company have signed a USD 1.8 billion deal to build a 1.5 million tonnes per annum steel mill worth in Bolivar state of Venezuela.

Mr Rogerio Nora de Sa president of Andrade Gutierrez and Mr Pedro Olivieri president of NSC signed the accord.

Brazil's BNDES development bank will fund the project as well as private sector banks and the Venezuelan government. The plant will complement production at the recently nationalized Sidor complex on Venezuela's Orinoco River and should boost national output to 6 million tonnes per annum.

BlueScope Steel appoints Mr Dayal as CE for Asian markets

BlueScope Steel has announced the appointment of Mr Sanjay Dayal as Chief Executive of BlueScope Steel Asia. He will join the Company's Executive Leadership Team and will lead its businesses in Asia excluding China. Mr Dayal will report directly to the Mr Paul O'Malley MD & CEO of BlueScope Steel.

Mr Bob Moore, will continue to report directly to Mr O'Malley on the Company's businesses in China.

Mr Dayal is presently GM Manufacturing and Supply Chain for Orica Mining Services. He managed the Asia division of that company for five years. He has been with Orica and formerly ICI in a variety of key technical, operational, business development and managerial roles since 1980. He will join BlueScope Steel in January 2009 and will be based in the Company's regional headquarters in Singapore.

Mr O'Malley said “Sanjay would bring significant management experience as well as strong technical and regional market perspective to the Company. Sanjay brings great experience and international diversity to BlueScope Steel, and he will add a new dimension to an already strong leadership team. He has had an outstanding career to date, most recently managing the complex USD 1 billion plus acquisition integration of Dyno-Nobel into Orica. We are delighted to welcome him to the BlueScope team."

SEC charges Gerdau board member with insider trading

It is reported that US Securities and Exchange Commission filed a settled enforcement action against Mr Carlos Petry, charging him with insider trading in the stock of a company acquired last year by Gerdau Ameristeel.

According to a release from the SEC, he has agreed to entry of a final judgment that will prohibit him from being an officer or director of a public company for five years and requires him to pay a total of USD 166,331 in disgorgement, penalties and interest.

The SEC complaint, filed in US District Court for the District of Massachusetts, said that “Mr Petry was serving on the Gerdau board in May 2007 when he learned Gerdau Ameristeel had identified Texas based Chaparral Steel Co as one of seven or eight possible acquisition targets. Mr Petry attended a board meeting at which the Gerdau board authorized a bid for Chaparral on June 26th 2007 and the information was not public at the time.”

It added that “Between June 25th 2007 and June 27th 2007, Mr Petry bought 8,500 shares of Chaparral stock. Gerdau Ameristeel announced on July 10th 2007 that it would buy Chaparral and the closing price of the Chaparral stock increased 11% the next day, leaving Mr Petry with a USD 105,044 profit.”

The release said that Mr Petry consented to the allegations in the complaint without admitting or denying them,

Mr Petry has served on the board of directors of Gerdau SA, the Brazilian based parent company of Gerdau Ameristeel.

MoU between Romania and Voestalpine for steel plant feasibility

Romanian media has reported that Romania’s government was to sign on Wednesday a MoU with Austrian steel mill Voestalpine for starting the evaluation of a future EUR 5 billion steel plant.

The MoU sets out the obligations for both sides provided that the investor chooses Romania for its project. The agreement also states that Voestalpine will use the latest environment friendly technology and employ no fewer than 4,500 people.

Voestalpine already signed the contract for two pieces of real estate in Romania, with a total of 300 hectares near Constanta, representing 70% of the necessary surface.

Together with Bulgaria, Turkey and Ukraine, Romania is being evaluated by the Austrians as a potential location for its investment. Voestalpine is expected to make its final decision on the location of the new plant by the end of 2008.

One dies at Sidor - Report

The El Universal newspaper, citing a senior company official, reported that a worker died in an accident at Venezuela's largest steelmaker which is currently getting nationalized.

Mr Miguel Alvarez, the manager of the plant in the south of Venezuela, said the company was increasing its on site safety personnel after an electrical failure caused the death on Monday of Mr Edgar Galviz, the newspaper said.

The newspaper said workers held protests at the plant following the accident, prompting an emergency managerial meeting that resulted in the decision to deploy more safety officials.

US Steel and Worthington complete deal to expand JV

United States Steel Corporation and Worthington Industries Inc announced that they have completed the previously announced plan to expand and modify their current Worthington Specialty Processing joint venture.

Steel shortage in SA puts projects in doubt - HIA Report

According to a Housing Industry Association report, shortage of steel has caused prices to almost double, with the building industry warning future construction projects could bounder threat. It shows that the price per tonne for reinforcing steel has climbed from USD 1450 in 2007 to USD 2700 in 2008.

Mr David Gaffney executive director of Housing Industry Association SA said that a serious under supply of steel in SA had seen prices progressively increase. He added that "This has had a big impact on the commercial sector especially."

Mr Rob Stewart CEO of Master Builders Association SA said that the steel shortage was creating havoc within the industry. He added that "We are really in a quandary here, not only with the cost of steel but the inability of suppliers to supply steel, and to do it on time. It is creating enormous problems."

Mr Stewart said that the state's major infrastructure projects were under threat because of the lack of supply. He added that "They have a great dependency upon steel and if you can't supply the product, timeframes blow out and costs increase."

Mr Silvio Giannoni GM of Bianco Reinforcing said that future building projects were now in doubt. He added that "If it's a massive job with a lot of steel in it, it may not go ahead. Civil work, infrastructure, building, housing, it has all been affected."

Mr Robin Turner president of Real Estate Institute of SA said that the decline was a worrying trend caused by a lack of consumer confidence. He added that "This will be felt most in about a year, and will put further pressure on rentals and house prices."

One year of BASF steel passivation at Voestalpine

For the past year, Voestalpine Stahl GmbH has been passivating its galvanized flat steel with Lugalvan® Passivation, the first heavy metal free and fluoride free conversion coating product for galvanized flat steel. The environment friendly BASF anticorrosion product was developed into a ready to market product jointly by the two companies.

For Voestalpine customers, the use of this new type of passivation reduces the process costs, steel strip protected in this way can directly be painted and so further processing can become more economical.

Mr Karl Heinz Stellnberger head of development corrosion protection at Voestalpine said that "We have had very good experience with Lugalvan Passivation. Our customers are very happy with this new kind of corrosion protection."

Dr Fabio Nicolini head of Global Business Management Metal Surface Treatment at BASF said that "We have encountered a positive response worldwide to our polymer based, heavy metal free anticorrosion product. At present, we are running plant trials with Lugalvan Passivation at the sites of several well known international steel producers. It is applied with the same machinery as conventional anticorrosion products based on chromium salts. Therefore it is possible to change to the environment friendly product within a few days."

Lugalvan Passivation is not only a passivating agent, but also a multifunctional layer, galvanized flat steel protected in this way can directly be painted without any further pretreatment. As a result, the process costs for further processing at our customers are reduced. The nanometer thick passivation layer serves both as corrosion protection during transportation and as adhesion intermediate. In addition, it also improves the formability properties of the galvanized steel strip.

Directory of Tin Plate Users in India

'Directory of Tin Plate Users in India' is one of the top sources of information available on tin plate users in India. It is one of the most comprehensive and accurate directory of Indian tin plate users that have ever been published. This powerful report is your connection to the entire Indian tin plate industries sector.

Published in May 2008, 'Directory of Tin Plate Users in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing tin plate makers. This report will be extremely useful to businesses that deal specifically with companies in the tin plate industry, consumable suppliers, raw material sellers, equipment makers and others.

This report will enable you to profile tin plate users in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers. It is also an indispensable guide to India’s tin plate industries.

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This report covers name and product details of 147 of Indian tin plate makers in alphabetical order as well as location wise.

Look at the information you'll get in the 'Directory of Tin Plate Users in India'

• Company name -147 entries
• Address-147 entries
• Phone number-143 entries
• Fax number -110 entries
• Email -90 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 87

Price: USD 625 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

POSCO to invest KRW 4.6 trillion in 2008

POSCO plans consolidated investments of KRW 4.6044 trillion including KRW 3.42 trillion in the steel sector, LNG, energy etc. The investment projects such as the new steel factory construction in Pohang and the new steel plate factory construction in Gwangyang are especially creating numerous jobs and contributing greatly to the regional economy.

Along with this, approximately 2200 people will be employed POSCO wide this year including 500 for POSCO itself in order to develop future personnel to lead POSCO's continued growth.

US Steel Serbia to invest in new production unit

BalkanInsight.com reported that US Steel Serbia is planning to invest EUR 69.3 million in a new production unit in the central city of Smederevo.

Mr Richard Veitch CEO of US Steel Serbia said that ''We expect that the works will take some 20 months and we will start as soon as we obtain permits.''

He added that “With the new facility, US Steel will be able to produce high quality steel products for Serbia.”

Indian Steelmakers Directory 2008

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008' is one the top sources of information available on steel making companies in India! 'Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferro alloys, consumable suppliers, raw material sellers, equipment makers and others.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

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This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order.

Look at the information you'll get in the 'Indian Steelmakers Directory'

• Company name -723 entries
• Address-723 entries
• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Schuff Steel Midwest Division opens new office in Chicago

It is reported that Schuff Steel Midwest Division has expanded its operations by opening a new office in Chicago. It currently has offices in Overland Park and Denver.

Mr Scott Schuff president & CEO of Schuff International Inc said that "To better serve our Midwest customers and grow our operations, we determined the timing was right to open an office in Chicago. We are also excited about our recent contract at Silver Cross Hospital. Schuff has been involved with Silver Cross in a design assist capacity since January 2008. We were selected for the project based on our hospital experience and our design and build services."

Mr Schuff said that "Schuff has among the most advanced design/build departments in the steel industry. Through early involvement on a project in the preconstruction phase, Schuff is instrumental in lowering construction costs through design assist and value engineering. Design and build services can save clients money and often result in a more favorable construction schedule. The value design and build can bring to a project is especially beneficial with tightening project budgets."

The company is part of Schuff International Inc, which is one of the largest steel fabrication and erection company in the United States.

Renco eyeing USD 400 million CAPEX plan in Peru

Bloomberg reported that Renco Group Inc will invest USD 400 million in its smelter in Peru, partly to boost output of sulfuric acid and help cut pollution emissions.

Mr Juan Carlos Huyhua president of Renco unit Doe Run Peru said that Renco plans to spend USD 100 million to boost copper recovery and build a third sulfuric acid plant in 2009 as a part of its 10 year expansion plan. He added that "With the recession, there's a tendency for metals prices to drop. We have to look at our margins and be prepared for the bad cycles as well as the good ones.''

It may be noted that Renco took over Peru's second largest zinc refining complex from state mining company Centromin in 1997. Renco, which produces 40,000 tonnes of zinc, 60,000 tonnes of copper and 10,000 tonnes of lead a year from the Doe Run site, runs six lead mines and a smelter in the US and a copper mine in the Peruvian Andes.

Timken boosts third quarter earning estimate

Timken Co has raised its estimate for third quarter earnings per diluted share to a range of USD 1 to USD 1.10, well above its prior estimate for the quarter of 65 cents to 75 cents a share.

Timken said that it benefited during the third quarter from continued strong global industrial demand and its capacity expansion initiatives, as well as declining scrap prices and resulting lower inventory charges.

Mr James W Griffith president & CEO of Timken said that "Our investments in new industrial capacity in rapidly growing global markets and our ability to recover high raw material costs have pushed our performance well beyond our own expectations for the quarter. Despite continued challenges in automotive markets and softening in some sectors of the global economy, we expect record full year earnings in 2008 and with our improved execution to carry that momentum forward into 2009."

Timken also said that it will announce its complete quarterly financial results on October 24th 2008.

Taiwanese traders to import more HRC

Taiwanese steel traders reportedly attempt to import the hot rolled coils about 100,000 to 200,000 tonnes to substitute China Steel Corporation's offers in order to protest against the higher market price in the fourth quarter.

The global steel prices are dropping dramatically, as the latest hot rolled price released from China is about USD 740 to USD 760 per tonne. However, CSC still insists on its hot rolled price at USD 880 per tonne that has broadened the price disparity between CSC’s and steel market.

(Sourced from YIEH.com)

Directory of Construction Companies in India

One can have an idea about the importance of the construction industry in India from the fact that it is the second largest contributor to the GDP after agriculture. The industry provides employment to more than 3% of the population. Its market size is around USD 55 billion and is growing at around 7% to 8% per annually, faster than the GDP growth. As the Construction sector is growing faster than the country’s project GDP growth, there exist a tremendous potential for development in the related area.

“Directory of Construction Companies in India” is one of the top sources of information available on a construction companies in India. It is one of the most comprehensive and accurate directory of construction companies in India that ever published. This powerful directory is your connection to the entire construction companies in India.

Published in August 2008, “Directory of Construction Companies in India” has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Construction companies.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the construction companies in India, this directory will save you time and effort in finding the information you need. This report will enable you to profile construction companies in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers. It is also an indispensable guide to India’s construction sector.

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This report covers name and product details of 1000 Construction Companies in India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Construction Companies in India’
1. Company name -1000 entries
2. Address-1000 entries
3. Phone number-951
4. Fax number -652 entries
5. Mobile number-349
6. Email -749 entries
7. URL – 593

Format - PDF File (Total no of pages – 545), delivery by Email on receipt of payment of USD 950 or equivalent in INR. Additional charges would be levied for delivery of file on a CD or in printed form

How to order
Ordering the report is simple. You can order your copy to reports@steelguru.com for gettimç an invoice for the report.

Kyoto emissions market is 17% oversupplied - Point Carbon

According to Point Carbon, the market for emission credits allocated to nations under the 1997 Kyoto Protocol is 17% oversupplied. Kyoto allocated about 57.8 billion tonnes of so called Assigned Amount Unit credits to 38 industrialized nations for the 5 years through 2012. The analysis excludes Canada, which has said it can't afford to meet its target. Actual emissions are likely to be 49.5 billion tonnes.

The credits are measured in equivalent metric tons of carbon dioxide, the main heat trapping gas blamed by scientists for climate change. The European Union is seeking to curb emissions to keep temperatures from rising more than 2 degrees Celsius.

Point Carbon said that central and east European nations would be able to sell as many as 1.7 billion tonnes of surplus credits. Russia, with the biggest surplus, likely won't sell.

Mr Kjetil Roine manager of carbon market research services at Point Carbon said that "Realistic potential revenues from AAU sales are dwarfed in comparison to profits from oil and gas exports.''

Point Carbon said that eleven countries will likely have a combined shortage of 900 million tonnes. Japan will have the biggest shortfall, at 540 million tonnes, followed by Spain with 84 million tonnes and Italy with 74 million tonnes.

Vattenfall CEO says EU CO2 permits to rise to EUR 40 per tonne

Mr Lars Josefsson CEO of Vattenfall AB said that he expects the price of European Union carbon dioxide allowances to rise toward EUR 40 a tonne after 2012 as stricter EU emission curbs take effect.

The EU plans to tighten its emissions trading system, which requires energy and manufacturing companies that exceed their allowance based quotas to buy permits from businesses that emit less. Draft legislation would reduce CO2 allowances for electricity, steel, cement, paper and other industries now in the system by 11% on average in 2013 to 2020 from 2008 to 2012.

EU emission allowances for December fell 3.6% to close at EUR 22.35 a tonne on London's European Climate Exchange. The EU greenhouse gas trading market covers more than 11,000 installations including plants owned by Vattenfall.

Mr Josefsson said that "Through to 2012, I think we see a relatively stable development, upward trend, toward EUR 30 a tonne for EU allowances. In the next phase, 2013 and onwards, I think we will be moving toward the 40s.''
The EU wants its emissions trading program to underpin any new global agreement to reduce pollution blamed for climate change. It aims to cut greenhouse gases by at least a fifth in 2020 compared with 1990 and is pressing the US, China and other countries to come up with a new accord to succeed the global Kyoto Protocol after it expires in 2012.

Global Shippers Forum calls for elimination of antitrust immunity

Joc.com reported that Global Shippers Forum, in a joint declaration after its annual meeting in Montreal, has called for the end of carriers’ antitrust immunity in the United States and urged the governments of China and India to apply their antitrust laws to liner shipping. It hailed the termination of antitrust authority for liner conferences in Europe effective October 18th 2008.

Global Shippers Forum said that "GSF members strongly believe that European reforms repealing the liner block exemption as well as changes brought about in North America would provide comparable benefits for Asian countries, resulting in less influence by conferences and discussion agreements over rates and services."

The statement encouraged Asian governments to introduce market based principles as they apply to liner shipping. Competition, rather than collusion, will result in efficiencies and customized services for their customers that are not possible where prices are determined by liner carriers in government sanctioned cartels.

Noting that this year marks the 10th anniversary of the passage of the Ocean Shipping Reform Act, the shipper group encouraged the US to undertake a comprehensive review of its own shipping laws to determine whether an antitrust exemption should continue to exist for liner carriers.

GSF believes that antitrust immunity as it relates to the ability of liner carriers to benchmark, discuss, set or fix rates, service terms and or surcharges is not necessary and should be terminated.

GSF is composed of Asian Shippers’ Council, European Shippers’ Council, Japan Shippers’ Council, the Canadian Industrial Transportation Association and the US based National Industrial Transportation League.

Tanker to ore carrier conversion update from SSY

According to Simpson Spence & Young Shipbrokers preliminary data, 4 converted tankers of 976,719 DWT were delivered into the Capsize fleet in September 2008.

In the year to date SSY’s records show that 3.6 million DWT of converted tankers have entered the Capsize fleet with an additional 2.5 million DWT expected to enter service before the end of the year.
VLCC to VLOC conversions are primary targeted at front haul iron ore trade from Brazil as charterers seek to benefit from economies of scale and reduce their transportation costs.

Saudi Arabia encouraging PPP in steel and other heavy industrial sectors

Arab News reported that the Saudi Kingdom's real non oil GDP is to increase by around 4.8% in 2008 and that investment expenditure will be a key driver of Saudi Arabia's growth in 2008.

In 2007 nominal gross investment expenditure grew 22.8% mainly driven by the growth in government investment expenditure. Although higher levels of investment will feed into inflation in the short run it will ease various supply bottlenecks within the economy over the longer run.

As per report, the Kingdom is on the verge of an unparalleled construction boom. Projects in excess of SAR1.7 trillion are currently under way, all of which have significant construction components.

The NCB report said that strategic projects such as economic cities and industrial zones, oil & gas, petrochemicals, mining & minerals, transportation and utilities have all been designed to leverage the Kingdom's comparative advantages, a low cost energy producer and a strategic geographical location to expand the non oil economy specifically the non oil private sector.

Public private partnerships are rapidly forming, with the government providing seed capital for projects initiation while the private sector focuses on finance and execution.

Mr A Al-Shaikh chief economist of NCB said that “This new dynamism not only ensures the economic viability of the selected projects, but also broadens the non oil private sector base, while reducing the fiscal burden on the government.”

In the current phase of the investment plan, the government is building a competitive advantage in 5 main industries namely Oil, petrochemicals, fertilizers, aluminum and steel. Saudi Aramco, Saudi Basic Industries Corporation and Saudi Arabian Mining Company will be spearheading government plans through JV with local and foreign investors.

Rebar prices in UAE keep dropping

It is reported that slow mood in concrete reinforcing bar export market could be longer than expected. The buyers in United Arab Emirates, which led the world market in the up swing, are away from the market

As per report, around 3 month rebar inventory is accumulated in Dubai Emirate which consumes around 70% of rebar in UAE. With the estimated 1.5 million tonnes of inventory in Dubai, the importers pressure on the suppliers for lower price.

The import price has decreased to around half of the peak of USD 1,500 per tonnes impacting on the world market.

Jessop gets Emirates Trading Agency order

BL reported that the Ruia group controlled Jessop and Company Limited has received order from the Emirates Trading Agency group of Dubai for supplying five rakes of wagons worth INR 50 crore to its Indian arm ETA Engineering.

Mr SC Saxena MD of Jessop said that the company is also expecting to bag a major order for wagons from a multinational player in the logistics sector.

The Ruia Group acquired the sick heavy engineering & infrastructure public sector company in 2003. The company’s profit after tax in 2007-08 stood at INR 18.66 crore against INR 11.08 crore in 2006-7.

In another development, Ruia group promoter and Mr PK Ruia chairman of Jessop stepped down from the post executive member on the board of Jessop. Mr Saxena said that “Mr Ruia is busy in global acquisitions and expansion of the Ruia Group that is why he stepped down from being an executive member in the board of Jessop.”

Turkish wire rod market remains weak

It is reported that Turkey’s domestic wire rod market remained weak and since the end users can not predict the future trend of the economy, they won’t release their orders.

Turkish end users have offers from Chinese and Italian suppliers. China’s suppliers offer an attractive price while Italy’s suppliers offer good quality.

However buying activity remains poor because the end users still have a large amount of stock now. In Dubai domestic market the price of SAE 1008 with 6.5 mm diameter is USD 750 per tonnes. Meanwhile China’s mills quote SAE 1008 wire rod with boron element at USD 800 per tonnes to USD 860 per tonnes.

(Sourced from YIEH.com)

Gazprom and Eni to work together on gas deal in Libya

According to a Gazprom statement, Russian energy giant Gazprom and Italian counterpart ENI have agreed to work together to extract and produce gas in Libya. The 2 companies made the decision after a meeting between Mr Alexey Miller CEO of Gazprom and his Eni counterpart Mr Paolo Scaroni.

The statement said that the agreement will result in restructuring at Arktikgaz a former concern of Russian oil company Yukos before it was bought by Eni in 2007.

Pakistani cement sale in Q1 drops by 15%

The News reported that cement sales in Pakistan fell 15% YoY in the Q1 of current fiscal depicting a decline of 4.88 million tonnes. However cement exports continued with healthy growth of 58% and remained 2.47 million tonnes due to the cement shortage in the region.

In September 2008, local sales fell by 14% Year on Year while exports increased 60% Year on Year resulting in an overall sales increase of 3%.

JS Research said that overall cement sales from July to September 2008 were up just 1% to 7.35 million tonnes compared to similar period last year.

A cement dealer from Karachi said that through out the fasting month of Ramazan cement demand remains low. Similarly low cement sales are expected in this week and week to come, as people are busy in Eid related activities.

Mr Kamal Ahsan GM of Al-Abbas Cement said that two main reasons have affected cement sales. Firstly cement sales always decline in Ramazan and secondly the gloomy political conditions in the country. People of the country seem alienated of what is going on in the country and they are investing less as they feel the uncertainty at political fronts in the country.

Mr Ahsan said that cement companies that are exporting cement are still in very good position and cement exports are on the rise, exports are expected to rise in future considering the robust global cement demand. Continuous uncertain economic conditions have eroded local sales and low sales in September can also be attributed to the month of Ramadan during which construction activities usually slowdown.

Uncertain political and economic conditions of the country continue to hamper business activities. Fewer private sector development projects are causing local cement sales to decline. However for exports, demand from Middle East and African countries remains buoyant increasing export sales for the cement industry of Pakistan.

ADB releases USD 500 million loan to Pakistan

Business Recorder reported that Asian Development Bank will provide USD 1.5 billion in 3 tranches under the Accelerated Economic Transformation Program. The first tranche of USD 500 million was released on Tuesday under a formula based approach after the Federal Cabinet approved.

1. Consolidated supervision law whereby State Bank of Pakistan will regulate all kinds of deposit taking in the country, thereby transferring leasing companies, investment banks and Development Financial Institutions from supervision of Securities and Exchange Commission of Pakistan to SBP;

2. Cabinet has approved the Draft of Anti-Money Laundering Law and approval of Ministry of Law for issuance of an Ordinance or passage of law by Parliament is awaited.

3. Raising the minimum capital for banking companies to USD 300 million already in offing. The next tranche of USD 500 million is expected to be released after Pakistan complies with Basel-II requirements, establishes a deposit protection scheme and modernizes the SBP Act to effectively become the lender of the last resort.

The program for the third tranche of USD 500 million will be drawn up for compliance later by SBP. The ADB loan basically uses this vehicle for easing Pakistan's balance of payments difficulty.

According to reliable sources, the full amount of USD 500 million will be utilized to retire the SBP debt. Government had committed not to borrow from SBP after July 1st 2008 and retire INR 22 billion of existing borrowing by 30th September 2008. Contrary to the commitment over INR 160 billion were borrowed during the first 7 weeks of the Q1. With last date for tax return extended to October 31st it would be difficult for the government to meet its commitment.

A press release issued by ADB from Manila said that the Asian Development Bank has approved a USD 500 million loan to support Pakistan's efforts to address harm done to poor families and the country's economy by unprecedented international food and fuel price hikes. The ADB loan will support ongoing changes in the energy and agriculture sectors and will help lay the foundation for a radical transformation of the economy by diversifying, deepening and expanding a competitive industrial sector and creating much-needed jobs for Pakistan's young and growing labor force.

Iran seeks USD 7 billion from parliament for fuel imports

Daily News reported that Iran's government plans to ask parliament for an extra USD 7 billion budget to cover the growing price of fuel imports even after the major oil producer began petrol rationing last year.

Mr Gholamhossein Nozari Oil Minister of Iran said that the sum is needed to import petrol during the Iranian year that ends on March 20.

In February the parliament authorized the oil ministry to import petrol and gas oil for the equivalent of USD 3.2 billion in the fiscal year that started on March 21st.

Mr Ali Adianirad spokesman for parliament's Energy Commission reported the minister as telling lawmakers “Mr Nozari said we will need USD 6.5 billion to USD 7 billion for the import of fuel in the H2 of the year.”

The newspaper quoted the spokesman as saying that “The minister said extra budget was needed because of the higher price of petrol and gas oil in the world market.”

Under the rationing scheme, fuel has been sold at the heavily subsidized price of IRR 1,000 a liter. The government revised the system, starting from March to let drivers buy fuel above their 120 liter a month quota at IRR 4,000 a liter. Officials had previously said that both consumption and imports dropped after Iran launched the rationing to curb consumption which had soared well beyond its ability to refine crude.

Despite being the world's fourth largest oil producer Iran depends on expensive imports as it lacks the refining capacity to meet domestic demand in full. Petrol imports are a sensitive issue for Tehran. The US sees the imports as a potential weakness.

Persian Gulf Tanker rates may drop as owners await cargoes

Bloomberg reported that the cost of shipping Middle East crude to Asia down for the first day may further declines as owners anticipate Chinese refineries will accelerate their demand for vessels next week.

Mr Nikos Varvaropoulos an official at Optima Shipbrokers in Athens said that markets in China are closed for National Day holidays and won't reopen until October 6th. The return of Chinese traders will mean more competition for ships.

Mr Varvaropoulos said that “Chinese holidays will put pressure on the market in the owners' favor because oil company officials will have to move quickly next week to secure tankers to load in October”.

According to a report today from Paris based shipbroker Barry Rogliano Salles, refineries need to hire about 30 more very large crude carriers or VLCCs to load in October. There are 44 available vessels that can get to the region by the end of the month.

Dragon Oil undertakes board restructuring

Dragon Oil, an international oil and gas exploration and production company, announced that Mr Hussain M Sultan executive chairman has notified the Company that he is standing down with immediate effect as the Executive Chairman of the Group. Mr Sultan will continue on in an advisory role having tendered his resignation as a director with effect from December 31st 008.

Mr Sultan has been instrumental in the development of Dragon Oil since Emirates National Oil Company took a majority share in the Group in 1998.

During his tenure with the Group he has served as the executive chairman and at times as the CEO. Mr Sultan has decided to leave at this time to focus on other business interests.

In light of Mr Sultan's resignation, Dragon Oil also announced the appointment of Mr Mohamed Al Ghurair as non executive chairman with effect from today's date.

Mr Al Ghurair was appointed to the Board of Dragon Oil as a non executive director in April 2007 and is a prominent executive director in a number of leading companies in the Middle East including ENOC and the Saudi International Petrochemical Company.

Baosteel to supply casing pipes to CNPC

It is reported that Baoshan Iron & Steel Co Ltd has recently signed a contract to supply nickel alloy casing pipes of 50 tonnes to the Southwest China branch of China National Petroleum Corp.

The casing pipes will be used to exploit gas in Longgang Gasfield based in the southwestern province of Sichuan, citing Shanghai Baosteel Group Corp Baosteel's parent and the country's biggest steelmaker. It will be the first time for China made nickel alloy casing pipes to be adopted in domestic gas exploitation.

Now, Baosteel is busy manufacturing nickel alloy casing pipes for the gas field. Meanwhile, it is speeding up construction of the hot- extrusion steel pipe production line in its special steel subsidiary, an effort to start mass production as early as possibly.

Longgang Gasfield was discovered in April 2006, and CNPC, the country's largest oil producer, started prospecting gas in the gasfield a month later. Insiders from the oil giant disclosed that the oil giant was estimated to discover 1 trillion cubic meters of natural gas reserve, or 1 billion tonnes of oil equivalents in Longgang Gasfield. The gas field's potential reserve and proven reserve remain unknown. The oil giant is advancing prospecting in the gas field and will come up with a rough result next month. Conservatively estimated, the gas field will have reserve of more than 300 billion cubic meters and optimistically estimated, the figure will reach 500 billion or even 1 trillion cubic meters.

Ansteel to go for domestic price cut for October shipments

It is reported that China's Anshan Iron & Steel Group Corp is poised to price down HR coils and other steel products by an additional CNY 400 per tonne for October 2008 shipments

As per report there are signs that Ansteel is having a tough time collecting orders despite the existing price cuts for October shipments because a wait see position is predominant among domestic customers. In this connection, Ansteel is believed to have continued its full production as usual until now even at a time when small and midsize steelmakers are forced to reduce what they put out in a domestic environment that precludes increased sales volumes even if reduced prices apply.

Ansteel has already reduced its domestic sales prices of October shipments by CNY 600 per tonne for commodity grade HR coils and by CNY 400 per tonne for hot dip galvanized sheets. With the additional price reduction, it follows that the company will reduce what it charges for HR coils by a cumulative CNY 1,000 per tonne so far.

Meanwhile, Baosteel Co Ltd informed domestic customers last week of price cuts of CNY 700 per tonne to CNY 800 per tonne for November shipments of sheet products such as HR coils, CR coils, and hot dip galvanized sheets. As a result, Baosteel's new sales price of HR coils is somewhat lower than Ansteel's present sales price.

Ansteel's sales prices of steel products are usually lower than Baosteel's corresponding prices by estimated values of USD 30 per tonne to USD 60 per tonne. Accordingly, it is understood that Ansteel has opted to execute lower sales prices in a hurry this time than Baosteel's price practices, thereby struggling for assured sales volumes.

Chinese market prices down for HR coils and other items

It is reported that China's domestic market prices of steel products have fallen by CNY 200 per tonne last week for HR coils and other main products in the wake of a considerable price reduction across the board by Baosteel Co Ltd except heavy plates for November shipments, according to information made available in Tokyo. Baosteel has reduced prices of sheet products by CNY 700 per tonne to CNY 800 per tonne.

Baosteel' new price of HR coils translates into a level of USD 735 per tonne a price level that is higher by USD 35 from the domestic market this week. The price level has recovered to what prevailed in the March to April period of this year when steel prices were on the rise. As a result, it follows that Baosteel has held down what the company charges to a level at which the company is forecast to fall into the red if there is a further decline in prices.

In that context, China's steelmakers have begun to offer opposition in unison to Brazilian iron ore supplier Vale's requirement of an additional price increase in negotiated supply contracts for shipments to China. If the Chinese steelmakers concerned have approved the additional price increase, there is a possibility that they will end up operating in the red. As a result, they have started their moves to resist the Brazilian requirement, with the China Iron & Steel Association as their leader.

Sinopec reinforces partnership with central Henan province

China Securities Journal reported that Sinopec and central Henan provincial government recently signed a supplementary contract to strengthen their strategic partnership.

According to the contract, Sinopec and Henan province will promote the building of 8 million tonnes per years Luoyang Petrochemical in 3 years 5 years and lend an impetus to methanol alkene project run by Sinopec ZhongYuan Petrochemical.

Sinopec will also improve its oil products distribution network in Henan and reinforce E&D in Daniudi gasfield located in northwest China's Ordos Basin, to pave way for the materialization of Yulin-Puyang-Jinan natural gas pipeline, which will run through Henan.

Update on steel scrap scenario in Russia

Rusmet reported that price fall at the world markets of scrap start to influence more intensely on the situation in Russia. If even in the end of August and September, decrease of purchase prices for scrap of Russian metallurgical enterprises happened seldom, now the process of price decline reached its peak and price decrease comes one after another, similar to snow ball.

As per report, by the middle of September at the market of Russian Federation, there was no one player left, who could offer RUB 12,000 per tonne for scrap ZA with VAT with delivery.

Steel mills of European part of Russia sufficiently decreased the price level. On average, from the beginning of the month, prices of Severstal went down by RUB 1000 per tonne, NLMK decreased prices by RUB 2000 per tonne, OEMK decreased prices more than by RUB 2500 per tonne. Southern steel mills also became involved into the process of price decline. Here price decline during the first weeks of autumn made up about RUB 1000 per tonne to RUB 1300 per tonne and as a result, average price level in the region went down to RUB RUB 1,15,000 per tonne. At that, exporters remained noncompetitive, whose prices were at the level of RUB 8000 per tonne to RUB 8200 per tonne.

Ural also got involved into price decline process. The main players at the regional market MMK and NSMMZ decreased purchase prices from the beginning of autumn by RUB 700 per tonne to RUB 800 per tonne. Other participants of Ural scrap market followed them and started price decline. In fact, price decline at the Russian market took place in all regions. Even in Siberia, where price level was already rather low, ZSMK and NKMK decreased prices.

Energetic activities of steel mills are caused by three main factors
1. Export remains still noncompetitive, which forces scrap procurers to ship more scrap to the internal market.
2. Strategic reserve for winter is formed fully by many metallurgists, or by 70% to 90%.
3. Along with destabilization of internal market of metal products, many steel producers expect demand decrease on rolled metal, which can cause decline of current scrap demand.

All this allows metallurgical enterprises not to worry about serious fears of possible reduction of scrap delivery to warehouses though in the situation of price decline, this variant of events seems to be rather probable. By the way, shipments to warehouses of metallurgists decreased, but not so significantly. At least, during the first decade of September, many deliveries were in plan. However, prices are still stable. It seems that here also decrease will come soon and in this case, decrease of scrap pick up and delivery of products will be inevitable.

(Sourced from Rusmet.com)

Metalloinvest and Chelyabinsk Pipe to expand cooperation

Representatives of Metalloinvest Management Company and Chelyabinsk Pipe Rolling Plant met at Ural Steel and discussed prospects for further cooperation.

Ural Steel and Chelyabinsk Pipe Rolling Plant are long term partners and Ural Steel is to become the main supplier to Chelyabinsk’s Plant. The parties discussed at the meeting possibilities to expand production of strip and tube billets with advanced specification resulting from the mill’s reconstruction.

Mr Vladimir Krasilshikov sales director of Chelyabinsk Pipe Rolling Plant said that the start up of a new continuous caster at Ural Steel will enable to upgrade the quality of seamless tubes and to occupy the appropriate niche at this market.

Mr Andrey Medvedev the account director of Chelyabinsk Pipe Rolling Plant is positive that new equipment of Ural Steel plate rolling mill makes possible to produce high quality European-standard plates. Cooperation with Ural Steel gives us an opportunity for stable work and supply chain and hopes for implementation new joint projects.

Mr Andrey said that “We demonstrated to our partners the result of upgrading the mill during last four years. Ural Steel completes testing the equipment for producing steel with improved mechanical properties. So we can confirm that the plant made another step toward leadership in plate and strip production, resumed Metalloinvest Management Company’s commercial director Mr Andrey Prosyanik.”

ArcelorMittal Temirtau sees lower 2008 output

Reuters reported that the Kazakh unit of steel giant ArcelorMittal expects its 2008 output to fall by more than 30% due to shrinking global demand.

Mr Nikolai Kubrakov spokesman for Kazakhstan unit company's said that "Production has not been suspended but we are talking about cutting it somewhat. He said output could fall by more than 25% to 30% this year but gave no figures.”

The company had originally said it would raise crude steel output at its Kazakh subsidiary by 13% to 4.610 million tonnes this year. It later cut the forecast to at least 3.8 million tonnes.

ArcelorMittal Temirtau, which exports most of its steel to China and Russia, is Kazakhstan's biggest steel producer and operates a plant with annual capacity of six million tonnes, as well as 15 coal production facilities.

Inprom increases steel processing capacities in Russia

It is reported that Russia's leading steel service company Inprom boosted its steel processing capabilities in the country's regions. The company installed modern plasma and oxygen cutting machines for processing of flat steel at its steel service centers in Kaluga, Saratov, Saransk and Tula.

High-performance automatic stirrup and round cage welding machines were launched at the company's SSCs in Kaluga, Saratov and Ulyanovsk, with the latter also equipped with high-performance lines capable of reeling, straightening and high-precision cutting of rebar. A shot-blasting line, which provide high quality metal surface cleaning, was launched at the Saransk SSC.

Hydraulic guillotine shears were installed at the SSCs in Perm and Volgograd, and stirrup manufacturing line was installed in Perm. Under program STEP, a brand new strategy in steel supply and service for domestic steel consumers, Inprom is set to install at its steel service centers more than 100 modern machines in 2008, with investment to hit around USD 30 million over the period.

MMK does not rule out the possibility of a share buyback

OJSC MMK has announced that it does not rule out the possibility of a buy back of its own shares on the balance of one of its subsidiaries because the Company considers the share price to be significantly underestimated due to the influence of external macroeconomic factors, which are irrelevant to the Company’s fundamentals.

The timing and extent of buyback operations will depend on prevailing market conditions and the on-going trading price of OJSC MMK shares.

Severstal announce the result of voting

OAO Severstal announced the results of voting on the resolution proposed at the Extraordinary General Meeting held on September 30th 2008.

The following resolution was put to Severstal's shareholders on a poll at the Extraordinary General Meeting, and the results of voting were as follows: to approve the dividends for the first half of 2008 in the amount of RUB 18.35 per common share and per global depositary receipt payable before November 29th 2008 to shareholders on the share register record date of August 20th 2008. The starting date for payments is October 1st 2008.

Holders of the Company's GDRs may contact Deutsche Bank Trust Company Americas as depositary for the related GDRs record date and payment date.

Mechel appoint Mr Prischepov as MD of Trade Port Posiet

Mechel announced the appointment of Mr Igor I Prischepov as a MD at its Trade Port Posiet OAO subsidiary.

Previously, Mr Prischepov was Chief Engineer of Mechel’s Trade Port Posiet OAO subsidiary from June to September 2008. From 1982 to 2008, Mr Prischepov held various positions at the Murmansk Sea Port, elevating to the position of Chief Engineer. From 1980 to 1982, he worked as an electric equipment operator and maintenance craftsman at Krichevcementoshifer production association.

Mr. Prischepov graduated from the Belorussian Polytechnic Institute receiving the Order of the Red Labor Banner with a degree in Electric Power Supply of Industrial Enterprises, Cities, and Agriculture.

Mr Vladimir Polin CEO of Mechel Management OOO said that “Trade Port Posiet has an important role in the structure of Mechel’s transportations, as it handles Mechel’s coal deliveries to markets in the Asia-Pacific region. Therefore, we pay special attention to all aspects of the port’s development. I am confident that such an experienced specialist as Igor Prischepov will successfully manage the reconstruction and technical re-equipment of Port Posiet, whose annual freight turnover is planned to reach 7 million tonnes to 9 million tonnes a year. Moving forward, we expect the port’s implementation of new technologies and equipment will continue to increase.”

RZD will invest USD 63 billion in Far East

The Moscow Times reported that Russian Railways, the monopoly that operates the world's longest rail network would invest about RUB 1.6 trillion to improve service in the country's Far East federal district.

Russian Railways said the state owned company will upgrade its existing network and build new track by 2030. Mr Dmitry Medvedev president of Russian Federation who toured the Far East last week said that poor transportation is holding back the economy of the area.

According to the report, new lines will help Russia exploit vast reserves of natural resources, including Elga, the country's largest untapped coking-coal field in the Sakha republic.

Russian Railways gave no details of how it will finance the upgrade.

Russian crude export duty down to USD 372.2 per tonne

RIA Novosti reported that Russia's crude oil export duty is down by almost 25% from USD 485.8 to USD 372.2 per tonne.

Mr Vladimir Putin PM of Russia signed off on the cabinet's September 19th 2008 decision to reduce crude export duty, made in the wake of a sharp decline in oil prices in September.

Export duty for light oil products was fixed at USD 263.1 per tonne and at USD 141.7 for heavy petroleum products. The government adjusts export duty on crude and petroleum products every two months, depending on the price for the Russian benchmark Urals blend on world markets.

Mr Alexander Sakovich deputy head of the ministry's customs payment department earlier said that the average crude price was USD 97.297 per barrel for September 1st to 17th. Mr Alexei Kudrin Finance Minister of Russia estimated that the October 1st cut in crude export duty would save Russian oil companies and refineries a total of USD 5.5 billion.

Ukrainian exports of pipes in 8 months down by 10% YoY

According to the Ukraine’s state statistics committee, Ukrainian exports of steel pipes decreased by 10.5% YoY to 1.28 million tonnes from January to August down from 1.43 million tonnes exported a year ago.

Ukraine's revenues from exports of steel pipes increased by 16.5%YoY to USD 1.76 billion up from USD 1.51 billion in from January to August 2007. In August Ukraine exported 158,800 tonnes of steel pipes down from 159,690 tonnes exported in July and down from 162,610 tonnes exported in August 2007.

The committee said that Ukraine exported 674,420 tonnes of seamless pipes in January to August up from 657,160 tonnes exported a year ago. Ukraine also exported 230,200 tonnes of large diameter pipes in the period, down from 405,730 tonnes while exports of small-diameter pipes and tubes increased to 375,000 tonnes up from 318,500 tonnes exported in January to August 2007.

The statistics committee also said that Ukraine shipped most of its seamless pipes to Russia, the US and Kazakhstan, with large diameter pipes were supplied mostly to Kazakhstan, Turkmenistan and Uzbekistan. Small diameter pipes and tubes were mostly shipped to Russia, Germany, Belarus and Poland.

Ukraine exported 2 million tonnes of steel pipes worth USD 2.24 billion in 2007 compared with 2.02 million tonnes worth about USD 1.88 billion exported in 2006.

Gazprom and Eni not to take partners for South Stream

During the meeting, Mr Scaroni and Mr Miller discussed the South Stream pipeline which would connect Russian gas supplies to Italy and Europe under the Black Sea.

Mr Scaroni said that they have no plans to involve a third partner in their project to build a pipeline across the Black Sea to pump natural gas to Europe. He said that "For everything concerning South Stream AG we remain 50-50.”

The South Stream pipeline is expected to annually pump 30 billion cubic meters of Central Asian and Russian gas to the Balkans and on to other European countries with the first deliveries scheduled to start in 2013. Bulgaria, Serbia, Hungary, Italy and Greece are also involved in the project.

Mr Scaroni said that local partners could be involved in the project in the countries serving as the transit route for the pipeline but they would not participate in the equity of the project's operator. The project's total price was around USD 20 billion with the cost of the sea section estimated at USD 10 billion. He added that the cost of the overland section will be an additional USD 10 billion or more.

Kazakhstan inflation slows to 18.2% in September

Bloomberg reported that Kazakhstan's inflation slowed to 18.2% in September.

Consumer prices rose 0.6% on the previous month.

Global SS output is forecast to slip again this year - MEPS

UK Based MEPS predict no improvement in world stainless steel production in 2008. Market demand in the European Union held up quite well during the first half of this year. Production cuts are expected in the second period at a similar rate to those put in place during 2007 leaving the outturn for the full twelve months little changed at 8.1 million tonnes.

MEPS said that “Japanese, year on year, output tumbled by 10 percent in the first quarter but was unmoved in the second trimester. Export demand is weak and, therefore, we anticipate no improvement in stainless steel manufacturing in the second half of the year. Our forecast for 2008 remains at 3.55 million tonnes.”

MEPS added that “Production of stainless steel in the United States fell by 3.6 percent, year on year, in the first half of 2008. Our estimate for the full year is 2.1 million tonnes slightly below the figure in the prior twelve month period. Demand is extremely weak, particularly from the automotive segment. Import levels remain high.”

(f – forecast)
(in ‘000 tonnes)

MEPS said that “South Korean stainless manufacturing is also likely to decline marginally in 2008. Output curbs put in place during the first half are expected to remain in the second six month period. Orders from both domestic and export customers are quite poor.”

MEPS said that “Taiwanese consumption is poor. Inventory levels are excessive. Supply in the first and second trimesters was down marginally. The outturn in 2008 is forecast to be slightly higher at 1.45 million tonnes. Second half cut backs were substantial in 2007.”

MEPS said that “Production in the others classification is expected to decrease in 2008. Brazilian output has declined in the past two quarters. Energy shortages have constrained supply in South Africa. In contrast, Indian stainless manufacturing has improved a little in the first half and should show a slight, year on year, gain.”

China likely to cancel export tax rebate on stainless seamless pipe

It’s reported that China would probably cancel its 5% export tax rebate on stainless steel seamless pipe/tube, based on its macro-control policy and also in responding to the pressure from the continuous anti dumping investigation overseas.

Statistics reveals that China’s stainless steel seamless pipe/tube export hasn’t slow down even after export tax rebate was being reduced to 5% from last year. In order to efficiently constraint on export and eliminate frequent trade frictions, Chinese government holds the possibility to impose another 10% export duty on export of stainless steel seamless pipe/tube.

(Sourced from Yieh.com)

Market situation of ferrochrome - Eti Krom

The contents of Eti Krom's forecast are as follows

The market for ferrochrome has entered into an unstable period. Eti Krom is now watching carefully about how to move the benchmark price of South African charge chrome for shipments in October to December quarter of 2008. Reflecting a boom of chrome prices emerged in January to March quarter of 2008, the price of charge chrome achieved to rise to a level of USD 1 per pound of Cr but India, where has held an advantage of chrome ore as raw material, has been endeavoring to sell high carbon ferrochrome at discounted prices to stainless steel mills in Europe, the USA and Asia and, consequently, the parties concerned have a view that market prices of ferrochrome will weaken toward to the end of this year.

On the other hand, Turkish producers are also facing such cost increases as electric power fee oil price, wages, and so on. In particular, electric power fee is scheduled to raise by 11% from the October 1st 2008. Since January 2008, Eti Krom had totally about 45% of power cost increases in Turkey.

In spite of a sharp fall of nickel price, a power to produce more chrome-based stainless steel does not weaken. The consumption of chrome on net base has stayed on firmness. It is still forecasted that the consumption of ferrochrome in Europe and the USA will revive in October to December quarter of 2008. The basement to expect some rise of prices for ferrochrome in 2009 is thought to be coming up.

A cyclical upswing on production of stainless steel in the world is expected and the global production of stainless steel in 2009 has been viewed by an analyst to increase by 10%. A positive opinion for chrome on a long run is able to support but, in view of the depressed world economy, a recovery of the demand for ferrochrome will be postponed to some extent. The benchmark price of South African regular charge chrome for shipments in October to DecEmber quarter of 2008 is still anticipated to have a rise of 10 to 20 US cents per pound of chrome but a strong possibility is to roll over the price from that for July to September 2008 quarter.

Japan to reduce buying price of nickel based stainless steel scrap

In order to cope with a sharp fall of nickel price, stainless steel companies of Japan have aimed to reduce price of nickel based stainless steel scrap to be purchased from domestic sources by JPY 30,000 per tonne in total in the second half of September 2008.

A reduction of JPY 20,000 per tonne has been already implemented from the September 17th 2008 and new price of this scrap to be paid by mills has come to JPY 220,000 per metric ton delivered to mills. In addition, stainless steel mills have planned to reduce price of nickel-based stainless steel scrap by JPY 10,000 per tonne from the beginning of this week.

However, reflecting a depression of economic activities, the quantity of nickel based stainless steel scrap to be generated from domestic sources has still continued on a low level and, accordingly, the supply situation has maintained tightness. A possibility of whether the price of JPY 210,000 per tonne delivered to mills as intended by mills to materialize is able to be followed by the reality of this market or not is depending on how to actually move price of nickel-based stainless steel scrap in Japan.

The output of stainless steel at the Hikari Works of Nippon Steel in August 2008 recorded the highest one and this high production is being followed in September. However, stainless steel mills of Japan will be able to maintain their production on a high level by September but are scheduled to turn to decrease their production by 10% from October. The Kawasaki Works of Nippon Yakin Kogyo has already suspended from this week to receive cargoes of stainless steel scrap.

Therefore, the circumstances surrounding stainless steel scrap are thought to soften but, by taking into consideration of the realities in China, a possibility to revive exports of stainless steel scrap from Japan to China will be seen and some of the parties concerned are marked of this aspect. The matter to decrease production of nickel contained pig iron in China is progressing and there is a view in the market that the demand for nickel based stainless steel scrap as the substitutive material for nickel contained pig iron is anticipated to go to an upswing.

Talvivaara produces first metal on schedule

miningweekly.com reported that London listed Talvivaara produced the first metal sulphides from its new EUR 250 million recovery plant.

The report said that mining operations got under way at the company's world-first bio heap leaching nickel mine in April this year, followed by the start up of materials handling and bio heap leaching processes in July.

Talvivaara plans to ramp up production levels to 33 000 tonne per year of nickel and 60 000 tonne per year of zinc by 2010 and is targeting output of 20 000 t of nickel and 37 000 tonne of zinc next year.

It said that “The successful start up of metals recovery demonstrates that the entire production process at Talvivaara, including bio heap leaching, is now operational.”

Throughput and production volumes are expected to remain low for what is left of 2008, as the company will focus on optimizing the various processes for commercial production, which is expected to be achieved from the beginning of 2009.

Canadian Royalties still seeks funds for