SAIL BSP posts impressive performance for H1 of 2008-09

Steel Authority of India Limited’s Bhilai Steel Plant has reported 8.6% YoY production growth in hot metal, 7.8% YoY in crude steel and 6% YoY in saleable steel in the first half of 2008-09.

A BSP statement said that “'The hot metal, crude steel and saleable steel production in the first six months of 2008-09 has been 2,664,896 tonnes, 2,555,814 tonnes and 2,203,233 tonnes, respectively.”

BSP has made record production of all its finished products rails, plates, merchant products and wire rods. The release said that “Bhilai, the sole supplier of world-class rails to the Indian Railways, has produced 457,330 tonnes of finished rails in April to September 2008 period, registering a growth of 3.4% YoY. Total dispatches of saleable steel from Bhilai plant during first half have been 2,175,023 tonnes up by 6.8% YoY.”

BSP has also registered high growth in production of value added steel grades in all its finishing mills. It said that “The plant has recorded 42% YoY growth in production of HT plates, 26% YoY growth in EQ wire rods production, 82.6% YoY growth in production of wire rods and 43.1% YoY growth in production of TMT bars in the first half of this fiscal compared to the corresponding period last fiscal.”

Indian domestic steel price continue to decline

The domestic steel prices in India yet again started falling in anticipation of price reduction by major producers to maintain parity with imports. The Long & Flat Product Price Index fell by 15 & 24 points respectively, whereas the steel price index fell by 19 points:

LPPI – Long Product Price Index
FPPI – Flat Product Price Index
ISPI – Indian Steel Price Index

Long products

Flat products

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Essar to inject USD 160 million into Algoma Steel

ET reported that Essar Steel is pumping in USD 160 million into its Canadian operations to ramp up production to 3.6 million tonnes per annum to feed demand in North America.

Mr Sandeep Dixit VP of Essar Steel Algoma said that the company would spend USD 160 million to further increase production by 1 million tonnes in the 12 months to March 31st 2009. He said that “Most of the capital expenditure will come from self generated cash.”

A chunk of the investment would go towards setting up a cogeneration power plant that would cut the steel plant's energy requirements by half. The captive power plant would use waste fuel from the steel plant to produce electricity and is expected to be commissioned by January 2009.

As per report, Algoma Steel, which was acquired by Essar Group last year and renamed Essar Steel Algoma, is firing on all cylinders after the USD 42.3 million revival of its second blast furnace. The furnace was brought back into operation on August 12th 2008 and has helped increase output from to 2.6 million tonnes from 2.1 million tonnes.

Mr Armando Plastino COO of Essar Steel Algoma's said that “We are delighted that we have successfully implemented the best technological and engineering practices from across both the organization. He said that this has resulted in a 30 per cent improvement in productivity. I am happy to say the integration has produced extremely positive results with both organizations aligned with a view to growth.”

Angry villagers halt production at Kohinoor Steel in Jharkhand

Local media reported that Kohinoor Steel was forced to halt production after angry villagers resorted to violence near the entrance of the plant in adjoining Seraikela-Kharsawan district in Jharkhand. At least five persons were injured.

Mr Avinash Dugar spokesperson of Kohinoor Steel said that "Around 12 to 13 anti socials, carrying iron rods and other weapons, forced our security guards to open the gates of the plant and thereafter filled the company's works all at once with some 70 to 80 coal laden trucks which were standing in queue on the approach road to the plant.”

He added that "It is difficult for us to say anything about their identity; but we got local police's support, who as also some villagers, rushed to the spot and helped us to normalize the situation."

Mr Dugar said that the company is in the process of lodging an FIR on Thursday with the Chowka police station.

Kohinoor Steel management alleged that anti socials elements are being instigated by politicians. A senior company official said that “Those involved in assaulting the truck drivers and guards couldn’t be identified as their faces were covered with cloth. It is a handiwork of local anti socials who were carrying iron rods, batons and traditional weapons during the assault.”

Mr Vijay Bothra MD of Kohinoor Steel said the company had sought police protection from the state government about six months back due to recurrent acts of violence by villagers. He said that “So far we have got no security from the police. The villagers are being instigated by political parties, who demand donations from us very often.”

Kohinoor Steel was set up in 2005 to house a sponge iron plant and a 17MW power plant.

JSW may cut domestic prices to match global levels

PTI reported that JSW Steel may cut prices for a second month because of a decline in global costs of the alloy.

The report cited Mr Jayant Acharya senior VP of marketing as saying that “Spot market prices may be revised downward.”

As per report, the extent of the cut will be decided soon.

However, Mr Acharya maintained, that at present, domestic steel prices are considerably lower than international rates.

JSW Steel cut prices by INR 2,000 a tonnes last month.

Long products price update for India

Kolkata

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Mandi

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Kanpur

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Bangalore

Change is on October 1st as compared to September 30th
Change is in INR per tonne

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ArcelorMittal meets villagers for land for Jharkhand project

The Telegraph reported that Congress MP Mrs Sushila Kerketta recently convened a meeting of villagers from Torpa and Kamdara to pave the way for the ArcelorMittal’s Greenfield project in the state of Jharkhand in an effort to avoid a repeat of the infamous Potka episode. Over 100 villagers eager to know what the company and the government would offer them in lieu of their plots attended the meet.

Mrs Kerketta said that “The villagers of Torpa-Kamdara and officials of ArcelorMittal have been requesting me to organize a meeting for a one to one discussion on the company’s resettlement and rehabilitation plan in the area. Some people were coming between the company and villagers which I tried to avoid by organizing this meeting.”

Mr PS Prasad GM of ArcelorMittal’s represented the steel major while Mr AK Mishra deputy secretary in state industries department represented the government. After returning to the state capital, Prasad said the response of the villagers was positive as far as land acquisition is concerned.

Mr Prasad said that “We provided them all the facts about the proposed project and told them that the company would follow the state government’s R&R policy in toto. The biggest achievement is that for the fist time we managed to hold talks with villagers. The company also respects the feelings of Ms Barla and we want a dialogue with her as well.” The social activist however termed the meet stage managed.

But the tension between the anti displacement and pro industry groups was palpable during the meet held at the behest of ArcelorMittal and the state industries department. Around 40 kilometers away from the meet site Adivasi Moolvasi Astitva Raksha Manch activists squatted on the road to prevent vehicles transporting villagers towards Khunti. Social activist Ms Dayamani Barla who is spearheading the movement against land acquisition for the ArcelorMittal project led the demonstration.

Ms Barla said that “The villagers did not attend the meeting willingly. Mrs Kerketta and her henchmen sent 4 wheelers to ferry villagers to the meeting site. But the vehicles were returned. Few villagers who are either businessmen or acting as brokers reached Khunti for the meeting by their 2 wheelers.”

SAIL BSL seeks to double steel yield

The Telegraph reported that Steel Authority of India Limited’s Bokaro Steel Limited has appealed to its employees to work harder to bring the plant on a par with the best ones in the country.

Mr PK Rastogi Union steel secretary during his recent trip to the city had praised officials of Bokaro Steel. Mr Rastogi had given his feedback after inspecting different shops and units. He advised the workers to try and increase production as SAIL was now competing with the best global steel players such as ArcelorMittal, TATA Steel and some Korean companies.

Mr Rastogi said that SAIL units were raising production by about 8% every year. Because of real estate boom and initiation of many government sponsored construction projects across the country, the demand for steel has shot up to about 12%. He urged the units to double their production.

Mr VK Shrivastav MD of Bokaro Steel Limited expressed happiness over Mr Shibu Soren CM of Jharkhand assurance to construct a boundary wall as it was mandatory for expansion of the plant. He exhorted workers to put in extra effort to reach the goal.

Mr Shrivastav said that “BSL is undoubtedly one of the best units of SAIL where modernization and expansion works are happening at a fast pace. We hope to double production in the coming years. To achieve this target even the state government has extended a helping hand and has assured us all support. This has boosted our morale.”

JSW may go for 3rd phase of expansion at Vijaynagar

DNA reported that JSW Steel may increase the capacity of its Vijaynagar Karnataka plant to 16 million tonnes per annum in phases after its expansion to 10 million tonnes per annum from 4 million tonnes per annum now is completed by March 2010.

The current expansion has an outlay of INR 6,300 crore. In its first phase a new 3 million tonnes per annum blast furnace which is the biggest in India will go on stream on November and take the plant's capacity to 7 million tonnes per annum by March 2009. This furnace is expected to add INR 2,500 crore to the company's revenues.

JSW Steel sources said that in the second phase another 3 million tonnes per annum will be added. This will take the total capacity of the plant to 10 million tonnes per annum by March 2010.

After the current capacity spread is over, another 6 million tonnes per annum may be added to the facility.

Flat products price update for India

Mumbai

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Ludhiana

Change is on October 1st as compared to September 30th
Change is in INR per tonne

Bangalore

Change is on October 1st as compared to September 30th
Change is in INR per tonne

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Scrap and pencil ingot prices remain stable

The prices for input material showed overall decline with the sole exception of Mandi owing to local factors.

Melting scrap
80:20
HMS

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

Sponge iron

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

Pencil ingot

Change is on 1st Oct as compared to Sept 30th
Change is in INR per tonne

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BF slag day loading record created at Vizag Port

Exim News Service reported that Navship Marine Services Private Limited, agents of Hocim Trading of Dubai and Cargill Ocean of Singapore has established a new record of loading 10,580 tonnes of blast furnace slag in 24 hours on September 29th at Visakhapatnam Port.

This surpasses the previous record of 10,008 tonnes of slag handled here from the vessel MV Gretke Oldendorff under the same agency in August 2008.

Encore Cements & Additives and Andhra Cements were the shippers, Srivalli Shipping & Transport was the stevedore of the above vessel.

Directory of Shipyards and Marine Service Providers

The Indian maritime sector has entered a high-growth phase fuelled by the country's spectacular economic growth and rapidly increasing seaborne trade. The most striking feature of this development is the simultaneous buoyancy in all the sub sectors shipping, ports and shipbuilding. This provides tremendous opportunities for all the players in the maritime field.

With the Government encouraging private sector participation in port infrastructure development under the National Maritime Development Program, the Ports & Shipping Industry is poised for spectacular growth in order to meet the surge in demand.

Published in October 2008, 'Directory of Shipyards and Marine Service Providers' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian shipyard industry.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

Content:
This report covers name and product details of 49 shipyards and marine service providers of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Shipyards and Marine Service Providers'

• Company name -49 entries
• Address-49
• Email-35
• Phone number-48
• Fax number -42 entries
• Mobile -6 entries

Format: PDF File
Total no of pages – 35
Delivery by Email on receipt of payment

Price:
USD 150 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, which will send you an invoice of the report.

Welspun Gujarat sees robust pipe demand this year

Reuters reported that Welspun Gujarat Stahl Rohren expects demand for pipes to stay robust this financial year as sky rocketing oil prices lend a boost to exploration opportunities.

Mr Akhil Jindal director of Welspun said that global demand for steel pipes used to supply oil and gas will not be directly hit by the turmoil in financial markets worldwide which saw the world's largest economy floundering.

Mr Jindal said that “When crude prices rose, in pursuit of oil, people went deeper and deeper in the most difficult terrain. Now you need to have the pipeline to transport oil and gas to capitalize your investments.”

He said that the firm also does not see the recent rupee depreciation impacting its revenues at least in the current year as it is naturally hedged against any currency risks as our export-import orders are booked back to back.”

HZL may increase exports after expansion

BS reported that Hindustan Zinc Limited is aiming at 55% of its turnover to come from overseas markets up from over 15% now once its capacity expansion plan is in place by 2010. The company also expects an early rise in the zinc price.

As per report, HZL, which is one of the world’s lowest cost producers, is using the downside in the zinc price as an opportunity to expand as it expects prices to catch up from the first or the second quarter of the next financial year.

Mr Mahendra Singh Mehta CEO of Hindustan Zinc said that “We expect the excess of supply in the market to get exhausted in the next three to six months as high cost production is being shut down.”

He said that once that is over the prices should start shooting up from the first or the Q2 of the next financial year.”

The report added that the company’s cost of production is USD 635 a tonnes before the royalty payout, largely due to the low cost of mining ore at the Rampura Agucha mine. It is expanding its zinc and lead production capacity to 1.07 million tonnes per annum with an investment of INR 3,600 crore.

Zn, which is largely used for galvanization of steel, has seen about a 28% drop in spot prices this year as demand for the ferrous metal declined due to an economic slowdown in Western markets and China. The current spot price of the metal at USD 1,770 a tonnes is about 57% lower from the high of USD 4,130 a tonnes in January 2007.

Directory of Overseas Scrap Suppliers to India

India is large market for import of steel scrap and this is the directory which is going to help many interested group to know this industry.

Published in September 2008, 'Directory of Scrap Suppliers to India' has been comprehensively researched and prepared, to bring you a fully up to date guide to overseas scrap supplier.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

Content:
This report covers name and product details of 1191 overseas scrap suppliers to India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Scrap Suppliers to India'

• Company name -1191 entries
• Address-1191 entries
• Email-1074
• Phone number-1140
• Fax number -431 entries

Format:
PDF File
Total no of pages – 545

Delivery by Email on receipt of payment

Price:
USD 500 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, which will send you an invoice of the report.

JSW acquires land for its drilling projects in Barmer

Project today reported that JSW Energy has acquired 17,000 acre in Barmer, Rajasthan for mineral drilling for its energy projects across India. The company has already entered into an agreement with the tillers of the land in Barmer for a fixed period of 100 years.

Though the company got into an agreement directly with the farmers, the state government facilitated the acquisition.

RNRL considering mega CAPEX in cement and shipping sector

ET reported that Mr Anil Ambani controlled Reliance Natural Resources plans to enter cement manufacturing and shipping activities with an investment of INR 12,000 crore. For supporting its ambitious cement business RNRL is looking to run a shipping service. It will help the company in transporting raw materials and finished products.

Mr Anil Singhvi vice chairman of RNRL on the sidelines of the company's annual general meeting said that ‘We will invest INR 10,000 crore in cement business and INR 2,000 crore in shipping. He said that our foray into cement and shipping will take 3 to 4 years period.”

Mr Anil Ambani chairman of RNRL said that “we are actively considering entering into cement manufacturing with 20 million tonnes capacity.”

Mr Ambani said that “We will foray into shipping business with 6 ships to start with. It will operate between Indonesia and Krishnapatnam carrying coal from Indonesia. He said that we re positioned RNRL as a complete fuel Management Company, covering exploration, development and production, sourcing and supply, transportation and distribution activities. He added that we are now equipped not just to meet the fuel requirements of our group companies but of a wider market.”

At present RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.

Gujarat Pipavav Port files for IPO

BL reported that Gujarat Pipavav Port Limited the developer and operator of Pipavav port the country’s first private sector port has filed its draft red herring prospectus with the Securities & Exchange Board of India for an initial public offering aggregating INR 500 crore for cash at a price to be decided through 100% book building process.

As per report, the equity shares offered through this draft red herring prospectus of the company are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

The sources added that GPPL is promoted by APM Terminals which is one of the largest container terminal operators in the world operating 50 terminals in 31 countries and is part of the Denmark based AP Moeller Maersk Group. Located in the Saurashtra region, Pipavav port is one of the principal gateways on the west coast, providing facilities for handling both containers and bulk cargoes. There is also rail connectivity to the port.

Haldia dock crisis on poor navigability of Hooghly continues

BL reported that the crisis facing Haldia dock due to the declining navigability of the Hooghly River near the dock was discussed threadbare at a seminar organized by the Hillary Institute of Kolkata Port Trust.

Participants at the event included Dr AK Chanda chairman of port, the Mr Laxman Seth CPI Lok Sabha Member from Haldia, two trade union leaders Mr Hemlal Chatterjee and Mr Parbati Das also members of the Board of Trustees of the port, Mr Ramakanta Burman Secretary of the Haldia Dock Officers’ Forum, and senior port officials such as Mr AK Bagchi director of Marine department and Mr B Chowdhury chief Hydraulic Engineer.

The port officials explained the genesis of the problem caused by several factors the most important being the unpredictable behavior of the river rendering several measures adopted to tame it virtually redundant.

Expressing concern at the present situation the trade union leaders emphasized that something must be done urgently to overcome the crisis which might take alarming proportion in the lean season due to begin from October and continue till February.

The secretary of Haldia Dock Officers’ Forum laid the blame at the door of the Union Government. He said that while Haldia dock was facing the risk of closure due to the shortage of dredgers required for maintenance dredging as many as seven dredgers ideally suited for the job had been deployed at Sethusamudram project which actually needed dredgers suitable for capital dredging. He demanded the immediate shifting of some of the dredgers from the Sethusamudram project to Haldia.

Kerala inland waterway project stays in limbo

BL reported that the World Bank assisted INR 61 crore inland water transport development project started about 5 years ago appears to have been abandoned halfway.

As per report, the government had in 2003 launched the Kerala State Transport Project to develop and renovate the routes Kottayam-Alappuzha, Kottayam-Vaikom and Alappuzha–Changanacherry through Kavalam with World Bank assistance.

Father Thomas Peelianickal said that development of these waterways was found to be vital in view of their environment friendliness and cost advantages especially for transporting cargo. He said that apart from this, the canals would help boost tourism as visitors from outside the State and overseas would be attracted to travel via the verdant canals and rivers of Kuttanad. This cheap transport facility will facilitate transportation of agricultural produce of farmers living on the banks of the canals to Alappuzha, Kottayam and Changacherry markets.

He said that the major causes for the decline in water transport on these routes which was the only mode of transport in Kuttanad region are the drop in the draft of the rivers and canals due to silting, caving in of the embankments, weeds covering water surface, low elevation bridges and the absence of proper jetties among others.

Official sources said that the increased availability of faster but costlier modes such as roads and rail has also contributed to a substantial drop in the use of this cheap mode of transportation. Given this situation the project was launched to remove the obstacles apart from widening the waterway to 17.5 meter and ensuring the draft is not less than 2.2 meter.

Hindujas begin work on USD 15 billion power plan

The Hindu reported that London based Hinduja conglomerate has begun work on the USD 15 billion investment plan for India's power sector that will result in generating 10,000 MW for the national electricity grid.

The Hinduja Group head in France Mr Nader Hakimi said that "These are the initial phases of a plan to develop, over the next few years, a pipeline of power projects aiming at a capacity of 10,000 MW. This means a total investment of some USD 15 billion.”

However Mr Gopichand P Hinduja president of the Hinduja Group of Companies at the India-EU Business Summit said that the Indian Government needs to pull up its socks for transparency and accountability in terms of clearing the mega projects. He said that "There should be a time limit for clearance of the projects and accountability be fixed for delays.”

He said that "Our commitment is visible with our 1,000 MW power generation project in Andhra Pradesh and a new 4,000 MW project in Tamil Nadu.”

Mr Prakash takes over as member traffic board

It is reported that Mr Prakash on Wednesday took over as the member of Traffic Railway Board. He replaces Mr VN Mathur who retired on Tuesday.

Mr Prakash who was the GM in Northern Railways is an officer of 1972 batch of Indian Railway Traffic Service. He has served in various capacities in the Indian Railway network including advisor infrastructure to the Railway Board, DRM Dhanbad and ED of Traffic Transport in the Railway board among others.

Mr Deora supports Cairn and ONGC pipeline in Gujarat

Blaming the Rajasthan government for going slow on fuel production and transportation, Mr Murli Deora Petroleum Minister has asked it to give permission to Cairn India and Oil & Natural Gas Corporation for laying pipeline to transport crude from Barmer to Gujarat.

Mr Deora insisted that Cairn and ONGC be cooperated in the Barmer basin, from where crude oil would be transported through pipelines to Gujarat.

He said that Rajasthan government should accord permission to Cairn for laying pipeline to take crude oil from Barmer to Gujarat and this alone would enable the state government to earn INR 20 to INR 25 billion in royalty.

He said that “Delay in sanction of pipeline by the beneficiary state hampers the crude oil evacuation work.”

Nippon and Kobe to establish JV for dust recycling and DRI production

Nippon Steel Corporation and Kobe Steel Limited, with the objectives of expanding and enhancing their cooperative ties, reached agreement to consider a joint business for recycling of steel dust and production and utilization of direct reduced iron at the end of October last year. The two companies proceeded to consider the joint business and have now entered a contract to establish a joint company.

Summary of the joint business for steel dust recycling and reduced iron production and utilization

1. Nippon Steel and Kobe Steel will establish a joint company on the grounds of Nippon Steel's Hirohata Works to produce DRI from steel dust and iron ore powder with the objective of effective use of the iron and zinc content included in steel dust.

Outline of the Joint Company
Company name: Nittetsu Shinko Metal Refine Co., Ltd.
Capital Ratio: Nippon Steel 70%, Kobe Steel 30%
Location: On the grounds of the Nippon Steel Hirohata Works
Capital Investment: Approximately JPY 20 billion
(Investment will be primarily for a rotary hearth furnace-type reduction furnace and related equipment. Capital investment will commence when the joint company receives approval to recycle steel dust.)
Date of Company Establishment: Mid October, 2008
Planned Start of Operations: Two years after the start of capital investment
2. After establishment, the joint company will apply to the Ministry of the Environment for approval to recycle steel dust. Upon receiving approval, a new recycling facility will be constructed for the operation of a Kobe Steel FASTMET® Plant using a rotary hearth furnace. The joint company will recycle the steel dust it receives and produce DRI to be supplied primarily to Nippon Steel and Kobe Steel with a portion also supplied to Sanyo Special Steel Co., Ltd., Nippon Steel' affiliate.

3. The RHF, which is the core operating equipment of the FASTMET® Process, is a donut-shaped furnace that recycles steel dust through high-temperature and high-speed processes to produce DRI. The RHF is also able to abstract zinc from steel dust. The DRI will be reused in the steel manufacturing process and the abstracted zinc will be reused in nonferrous processes. Recycling these materials will promote zero emissions while reducing usage of scrap metal, iron ore, and zinc ore.

4. The annual capacity of the new equipment to be used in the operation will be approximately 400,000 tons, making the facility one of the largest production processing operations in Japan. The economy of scale will increase the cost competitiveness of DRI while providing a complete measure for environmental measures.

5. The RHF in the new joint company will raise to four the number of RHFs in use on the grounds of the Nippon Steel Hirohata Works. In conjunction with the installation of the fourth RHF at the works, Nippon Steel plans to begin utilizing the No. 1, 2, and 3 RHFs currently in operation or under construction at the Hirohata Works to also improve the processing efficiency of steel dust produced by alliance partners Sumitomo Metal Industries, Ltd. (Wakayama works), Nisshin Steel Co., Ltd. (Kure works), and Nakayama Steel Works, Ltd..

The new operation's configuration as a joint operation between Nippon Steel and Kobe Steel is aimed at securing a stable source of materials and promoting recycling and zero emissions at all of the alliance members. At the same time, the combination of Nippon Steel's proven operating technologies for recycling and effective usage of steel dust and Kobe Steel's proven RHF technology will strengthen the mutual advantages of the relationship between the two companies, while including the alliance members will create a new business model for improving the overall efficiency of steel dust recycling in the Kansai region.

Nippon Steel and Kobe Steel intend to smoothly advance the new joint business while continuing to actively strengthen and promote their relationship.

US DOC preliminarily sets AD duty on steel threaded rods from China

On October 2nd 2008, the US Department of Commerce announced its affirmative preliminary determination in the antidumping duty investigation on imports of steel threaded rod from the People’s Republic of China.

DOC preliminarily determined that exporters/producers from China have sold steel threaded rod in the United States at 77.85% to 206.00% below normal value. Mandatory respondents RMB & IFI and Ningbo Yinzhou, received preliminary dumping rates of 77.85% and 176.57%, respectively. Nine Chinese exporters received a separate preliminary rate of 91.22%. All other exporters will receive the China-wide rate of 206.00%.

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on the preliminary rates.

Commerce is currently scheduled to make its final determination in December 2008. If Commerce makes a final affirmative determination, and the US International Trade Commission makes a final determination that imports of steel threaded rod from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue an antidumping order.

Vulcan Threaded Products Inc is the petitioner for this investigation.

The merchandise covered by this investigation includes steel threaded rod, which is certain threaded rod, bar, or studs, of carbon quality steel, having a solid, circular cross section, of any diameter, in any straight length, that have been forged, turned, cold drawn, cold rolled, machine straightened, or otherwise cold finished and into which threaded grooves have been applied. In addition, the steel threaded rod, bar, or studs subject to this investigation are non-headed and threaded along greater than 25% of their total length. A variety of finishes or coatings may be applied to the merchandise.

Excluded from the scope of the investigation are
(a) Threaded rod, bar, or studs which are threaded only on one or both ends and the threading covers 25% or less of the total length
(b) Threaded rod, bar, or studs made to American Society for Testing and Materials ASTM A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 Grade B16, or ASTM A320 Grade L7.

Steel threaded rod is classifiable under subheading 7318.15.5060 of the Harmonized Tariff Schedule of the United States.

From 2005 to 2007, imports of steel threaded rod from China increased 9.8% by volume and were valued at an estimated USD 72.3 million in 2007.

BHPB bid for Rio - Japanese angry with ACCC decision

Japan's steel industry said that it is extremely dissatisfied with Australian Competition and Consumer Commission for approving the proposed takeover of Rio Tinto by rival BHP Billiton. It is worried that the new company would have too much control over global iron ore prices.

The Iron & Steel Federation said that it is asked anti trust agencies in Japan and Europe to thoroughly examine the proposal.

Japan's corporate regulator, the Free Trade Commission, has been frustrated in its attempts to scrutinize the deal.

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)
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ArcelorMittal Dofasco to cut production as demand falls

ArcelorMittal Dofasco has announced that it is going to reduce its production in the following half year of 2008, triggered by weak demand.

It said that although the steel demand was very strong in the first half of 2008, but the market demand has become much smaller since this third quarter. Therefore, it made the decision to cut production.

ArcelorMittal Dofasco will cut its production in both steelmaking and finishing operations, however, it also stated that its USD 180 million investment project will be continued.

Goldman removes ArcelorMittal from conviction buy list

Reuters reported that Goldman Sachs has removed ArcelorMittal from its conviction buy list and cut its price target on the stock by ERU 40 to EUR 59 euros, to reflect a lower steel price forecast.

Goldman expects steel prices to fall on lower demand in 2009. It cut its 2009 steel European steel price estimates by 9% to an average EUR 723 per tonne.

Goldman said that "After factoring in our revised steel prices and the likely production cuts ArcelorMittal will undertake to support pricing in the expected weak demand environment, the shares no longer screen as most attractive in our coverage universe. We like the company's broad geographic and end-market exposure, along with high raw material self-sufficiency and a strong balance sheet."

It, however, maintained a 'buy' rating on the stock.

European mining and steel sectors becoming negative - S&P

Standard & Poor has reported that weakening prices, high material costs and tight liquidity have also had a great impact in Europe. Demand in both developed and emerging markets is also sliding downward.

Steel prices are declining sharply after the sudden upward spokes a few months ago due to fluctuating nickel price. Experts predict that producers of iron ore and coal are in a more advantageous position this time.

Steel market prices in 2009 look like they will continue to weaken since both the US & European regions are experiencing slow economic growth. Steel producers with their own sources of raw material supply will be better to balance their input costs at this time of swinging steel prices.

(Sourced from Yieh.com)

SSINA to testify before USTR on Chinese compliance with WTO commitments

Mr David A Hartquist, counsel to the Specialty Steel Industry of North America and the China Currency Coalition, will testify before the US Trade Representative that China is in violation of its commitments to the World Trade Organization on subsidies.

According to Mr Hartquist, China has not kept this promise or honored its international legal obligations in this regard. He said that “Under a deliberate plan to build a world-class stainless steel industry in China, the Chinese government has given top priority to encouraging exports of semi fabricated and downstream stainless steel products and to reducing China's reliance on imports of these products for its domestic market. By implementing this trade distorting industrial policy at virtually every level of government, China has relied and continues to rely, upon various measures that include not only subsidies, but also import and export restrictions and other discriminatory regulations, all of which raise concerns under the WTO's agreements."

On July 31st 2008, USTR announced that it would seek public comments and would hold a hearing in Washington, DC to obtain information to be used in preparation of its annual report on China’s compliance with its WTO accession obligations. USTR has sought comments and testimony on China's commitments with respect to trading rights, import regulation, export regulation, internal policies affecting trade, intellectual property rights, services and rule of law issues, among other WTO commitments.

When China formally joined the WTO in 2001, the country made a series of commitments under the WTO's covered agreements and in China's Protocol of Accession to the WTO. Among its obligations to the WTO, China agreed to end certain government subsidies to companies in China, stating that it would eliminate, by the time of its accession to the WTO, all subsidy programs falling within the scope of Article 3 of the WTO's Agreement on Subsidies and Countervailing Measures. Article 3 prohibits subsidies that are contingent in law or in fact upon export performance and also prohibits subsidies that are contingent upon the use of domestic over imported goods.

Japanese ferrous scrap price hits first drop in a month

JMB reported that ferrous scrap price dropped in Tokyo and Osaka for the first time in a month when local makers reduced the scrap purchase price after price reduction by Tokyo Steel Manufacturing.

The market gets worse due to worldwide slow demand for construction while Japanese scrap consumption usually increases in demand season of October and November 2008.

ABB wins USD 18 million expansion order from SSAB Tunnplat

It is reported that ABB has received two orders from SSAB Tunnplåt for a combined value of over USD 18 million to expand production at the SSAB’s steel mill in Borlänge in Sweden.

Under the agreement, ABB will supply electrical and automation equipment for a new down coiler, a new exit coil conveyer line and inspection station for coils, as well as for a new roller table and laminar cooling section between the finishing mill and down coilers. The down coiler to be delivered is a repeat order of the unit delivered and commissioned earlier this year. ABB’s solutions will help SSAB expand production at the mill, as well as contribute to the development of new grades of high-strength steel.

ABB’s delivery includes control systems based on System 800xA, as well as drive systems ACS800 including motors and MNS switchgear. ABB is also responsible for engineering, commissioning and erection. Both orders were won in a joint consortium with SMS Demag, Germany, who is delivering the mechanical machinery for the projects.

Mr Michael Olofsson sales pursuit responsible from ABB said that "SSAB’s choice of ABB and SMS Demag as suppliers was due to a large extent on previous deliveries and that the customer preferred a repeat order of the down coiler that was commissioned earlier this year.

The exit coil conveyer line and inspection station will be delivered during the summer of 2010. The down coiler will be put in service at the end of 2010 and the roller table/cooling section will be delivered during the summer of 2011.
The hot rolling mill in Borlänge was originally built in 1961 for a maximum production capacity of 500,000 tonnes per year. The plant has been modernized over the years, enabling annual production to be increased to the present 2.8 million tonnes.

US loses another anti dumping dispute at WTO

The World Trade Organization has dealt a new blow to a controversial US method for dealing with unfairly priced imports, ruling the US anti dumping measure broke international trade rules.

In the latest of many rulings condemning the zeroing method favored by the United States, a WTO dispute panel backed a European Union complaint that the US Commerce Department had acted illegally. The panel's report now goes to the WTO's Dispute Settlement Body, which has 60 days to adopt it unless the United States appeals.

Under WTO rules the United States can appeal against panel findings. But the WTO's top court, the Appellate Body, has rejected zeroing three times, most recently in May in a case brought by Mexico against the United States.

The European Union argued that the US Commerce Department should have removed or lowered duties on these products after an earlier successful challenge by Brussels to US zeroing, upheld by the Appellate Body.

International trade rules allow countries to impose extra duties on goods that are dumped, imported at prices below what is paid in their home market, if the dumping injures businesses in the importing country. These duties are based on the difference between prices in the two countries, usually examining several cases. Zeroing ignores cases where the imported product actually costs more than at home, when calculating the anti dumping duties.

The ruling was not a total EU victory as the panel declined to rule on some EU claims and one of the three member panel, while upholding the overall findings, disagreed with the other members' legal reasoning over EU claims on some aspects of zeroing.

Steelmakers urge EU to improve emissions proposal

Reuters reported that two major European steel industry bodies urged the EU to improve its proposal on revising the bloc's emissions trading system, saying it could damage the European industry's competitiveness.

The European Metalworkers' Federation and the European Confederation of Iron & Steel Industries said that the revision proposal should be improved to ensure a fair balance between climate change measures and industrial competitiveness.

They said in a joint statement that "Only a balanced recognition of social, economic and environmental aspects can secure a high level of employment, high social standards and the well-being of European citizens."

They said that the current proposal would lead to a reduction of CO2 emissions by current ETS sectors of 35% to 40% in 2020 compared to 1990 levels. They added that "This alone is almost unachievable, it does not reward any early action which has been taken prior to 2005, and it leads to billions in additional costs for our industries in the coming years."

They said that auctioning should be phased in at a much slower pace for sectors not determined to be at risk of carbon leakage, or alternatively, all manufacturing industries should be exempt from auctioning until there is an international agreement.

Under present proposals, power generators would be forced to buy permits for all their emissions at auction from 2013, and a wide range of industries would have to do so by 2020.

Meanwhile, the European Commission is considering whether to allow steel and other energy intensive industries to continue to get some or all of their permits free, to safeguard their global competitiveness against rivals based in less regulated areas.

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, ferroalloys, 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.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

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

Brazilian slab exports at USD 850 FOB for Q4 shipments to Asia

It is reported that slab exports out of Brazil have sold at USD 850 per tonne FOB for shipments to Asia in the October to December quarter, down USD 200 from the settlement a quarter ago.

With a considerable fall in Brazilian slab export prices this time, it is likely that the world's export prices of finished steel products will come under a pronounced decline in the immediate future, market sources forecast. Until recently, world's slab export prices on the rise contributed to increased prices of various steel exports in finished form.

Transaction prices of billets first came down in the world's export deals of semi finished steel products for shipments in the July to September quarter. As a result, billet prices fell off to a level of USD 600 per tonne FOB in mid September from that of USD 1,100 per tonne FOB at the beginning of July to September quarter. At present, export prices of Turkish billets are estimated at a level of USD 600 per tonne FOB.

Information is circulating that Russian slab exports have sold at USD 800 per tonne FOB for Asia of late as if to follow a fall in billet prices. The negotiated Russian price indicates a downturn of as much as USD 250 from the norm of slab export prices at the beginning of the July to September quarter.

Super Steel named in USD 22 million rail car contracts

It is reported that Virginia Railway Express has awarded a USD 22 million contract for 10 bi level commuter railway cars that will be assembled at Super Steel Products Corporation's plant in Milwaukee.

Virginia Railway Express placed the order in August 2008 with Sumitomo Corporation of America and its car builder partner Nippon Sharyo Limited of Japan. The order is in addition to a contract to supply 61 railway cars for the service.

Sumitomo said that Super Steel will provide final assembly of the cars using components produced in Japan and the United States. Delivery of the railway cars is scheduled in February and March 2010.

Founded in 1923, Super Steel manufactures metal products and equipment for the railroad, construction, agricultural and industrial markets. It also has a plant in Schenectady.

PT Krakatau preparing for privatization

Reuters reported that, like its volcanic namesake nearby, PT Krakatau Steel looms large over this part of Indonesia. Its aged, weather beaten plants at Cilegon in West Java push out 2.5 million tonnes of rolled coil and flat steel a year, making Krakatau a target for some of the world's leading steel makers.

But rather than bring in a foreign investor to inject much needed funding and technology, Indonesian government has opted to raise money for Krakatau in an initial public offering, once markets have settled down.

Krakatau is the biggest employer in this part of West Java and has long been regarded as something of a national treasure. A previous bid to raise funds by selling it to a foreign buyer had to be scrapped because of strong political and public opposition.
As Indonesia heads for elections next year, politicians are wary of upsetting voters by selling Krakatau to a foreigner who might axe jobs, slash benefits, and sell its steel abroad in a bid to improve competitiveness and profits.

Mr Juwono Sudarsono Indonesian defense minister said that "It's a sensitive political issue. While Krakatau has to improve its performance, an IPO was preferable as it would allow the government to retain ownership and control of a strategically important firm which supplies steel used in infrastructure, construction and defense. With the improvement in economic performance, we do not have to resort to strategic sales."

Mr Fazwah Bujang CEO of Krakatau said that it has not upgraded or added new automation for more than a decade. He added that "Now is the time to do that. We are going to modernize."

Krakatau Steel produced 2.38 million tonnes of steel products in 2007, including hot rolled coil, cold rolled coil, billet, wire rod and steel bars. It swung to a net profit of IDR 314 billion in 2007, from a loss of IDR 135 billion in 2006, while revenue rose nearly 28% to IDR 14.84 trillion. More than 87% of its production is sold to the local market, mainly to construction companies, state shipyard PT PAL and to gas stove and gas cylinder producers. The remainder is exported to Australia, India, Japan, Malaysia, New Zealand, Singapore, and Spain.

Krakatau also plans to increase production capacity to 5 million tonnes, from 2.5 million tonnes currently.

Japanese steel exports in August down by 0.4% MoM

According to a report from the Japan Iron & Steel Federation, Japan’s steel exports were down by 0.4% MoM to 3.30 million tonnes in August 2008 as result of global slowdown.

Due to the impact of the Olympics on Chinese steel demand, some 0.57 million tonnes of steel was shipped to China in August 2008, representing a 1.9 % MoM decrease. Shipments of steel to the US from Japan declined by 20.3% MoM to 0.12 million tonnes.

There was, however, a recovery in exports to South Korea after a quiet summer period, up by 6.8% MoM to 0.79 million tonnes.

(Sourced from Yieh.com)

Feng Hsin holds rebar prices unchanged this week

Affected by the typhoon, Taiwan’s Feng Hsin Iron & Steel has delayed to announce price and said that it will hold domestic rebar and scrap prices unchanged this week. This move is bringing its prices stable after the nosedive in the past weeks.

Feng Hsin's rebar price is now about TWD 21,500 per tonne and that of scrap purchasing price is now between TWD 10,900 to TWD 11,600 per tonne.

Feng Hsin dropped its section price by TWD 1,000 per tonne and the new offer price is in the range of TWD 24,000 to TWD 24,200 per tonne.

(Sourced from Yieh.com)

Kobe named Industry of the Year by Bowling Green Chamber

It is reported that Kobe Aluminum Automotive Products LLC has been named the 'Industry of the Year' by the Bowling Green Area Chamber of Commerce.

Kobe Aluminum Automotive Products will be honored at a chamber banquet on October 23rd 2008 at the Sloan Convention Center in Bowling Green.

Kobe Aluminum Automotive Products, which forges aluminum automobile suspension components, is a subsidiary of Japanese steel producer Kobe Steel Limited. It began operations in a 200,000 square foot facility in Bowling Green in 2005. It currently employs 189 people. It produces more than 225,000 pieces per month, and it is expected to have sales of more than USD 80 million in 2008.

Soaring steel prices may force builders to pass on cost in SA

Rising metal prices have had a marked impact on the costs of residential builders in Victoria during 2008 so far.

The Master Builders Association argues that soon these will need to be passed on to the consumer, as steel has become 38.1% more expensive and copper 28.1%, with petrol also rising 22% in price.

On the other hand, the building fittings industry is also trying to absorb metal price rises and not charging builders more for items such as metal windows. This is indicated by the lower profit margins in the Performance of Manufacturing Index

Wartsila Hyundai Engine Co inaugurated new unit in South Korea

It is reported that Wartsila Hyundai Engine Company, a JV between Wartsila and Hyundai Heavy Industries, has inaugurated its new factory in Korea. It manufactures Wartsila 50DF dual fuel engines for LNG carriers and other marine applications. The optimal capacity of the factory is 100 to 120 engines a year

Mr Ole Johansson president & CEO of Wartsila Corporation said that "The present LNG fleet of 260 vessels needs to increase to over 700 vessels by the year 2030. The introduction of new LNG terminals has experienced delays due, among other things, to the lack of availability of equipment and staff. One real alternative to land based terminals lies in the development of offshore floating projects. Our JV company has just recently received a major order for this type of project. We see great potential in this market in the long term."

Mr OS Kwon CEO of Wartsila Hyundai Engine Company said that "Natural gas is a clean source of energy, and increasingly relevant as countries around the world face the challenge of decreasing emissions. With our dual-fuel engines, we will be ready to anticipate and follow the Tier 3 requirements of the IMO regulations from the year 2016. Thus, by adopting our engines, produced here, as marine propulsion machinery, this internationally stipulated emission standard can be met."

The Wartsila 50DF dual fuel engine has pioneered an industry change. It has allowed the shipping industry to move away from traditional steam turbine machinery to a dual fuel electric concept having the benefits of much better operating economy and lower exhaust emissions. The engine can be run either on natural gas, marine diesel oil or on heavy fuel oil. The engine can smoothly switch between fuels during engine operation and is designed to give the same output regardless of the fuel.

Outokumpu wins GBP 500,000 compensation

Sheffield steel giant Outokumpu has won more than GBP 500,000 in compensation after thieves systematically stole scrap metal from the firm for a year.

seven years for conspiracy to steal over their involvement in a scam which saw lorry loads of scrap regularly taken from the Outokumpu site on Fife Street, Wincobank, without being checked out.

After a four day hearing at Leeds High Court, the thieves were held liable for the compensation. Metal firm Hobson Metals UK agreed a settlement out of court before proceedings started.

Mr Michael Peacock, who heads the civil fraud team at the Sheffield office of law firm DLA Piper, said that "This case shows what can be achieved when victims of fraud, their solicitors and the police join forces and take the fraudsters on to reclaim what is rightfully theirs."

Mr Martin Pinder UK vice president of human resources for Outokumpu said that "This result shows that we, as a business, will not tolerate fraud on any level and will use the full extent of the law to ensure that the perpetrators are brought to justice."

Australian August trade surplus biggest in 11 years

It is reported that Australia's August 2008 trade surplus widened to its highest level in 11 years, exceeding analyst's estimates by a wide margin as exports of coal and iron ore rose while import costs of crude oil weakened.

Australian Bureau of Statistics said that trade surplus expanded to AUD 1.36 billion in August 2008 from a revised deficit of AUD 697 million in July 2008.

The Statistics Bureau said that "The seasonally adjusted surplus was primarily due to the strong rise in non rural and other goods credits and the fall in fuels and lubricants debits."

The monthly surplus, the highest since June 1997, exceeded analysts' forecasts of AUD 200 million. In the year earlier period, Australia recorded a deficit of AUD 1.84 billion. Imports slipped 2% to AUD 23.2 billion, helped by sliding crude oil prices from recent highs just below USD 150 a barrel in mid July 2008.

Corus fined after crane operator hit by falling steel

It is reported that steel maker Corus has been fined GBP 15,000 after a crane operator was struck by a 1.7 tonne section of steel tubing when it fell off a crane. Mr Jonathan Laverick, operator, was standing nearby using a remote controlled crane with an electro magnetic attachment to pick up rafts and lift them onto a waiting lorry trailer, before they were driven to the warehouse.

Sitting on September 19th 2008, Hartlepool magistrates heard that the incident took place on April 27th 2007 at Corus Tubes’ Hartlepool based tube mill. The court was told that square tubes were being fabricated out of 12.5mm thick steel and then cut to length and stacked up on rafts, which could then be lifted by crane.

Mr Bruno Porter, the HSE inspector who investigated the case and prosecuted it in court, explained that electro magnetic bars attach themselves at various points along the tubes so that the crane can lift them.

He added that "Magnetic crane attachments are a good thing because they remove the necessity for workers to climb onto the load and attach chains, so avoiding manual handling and working at height. However, they do not always keep hold of the load. They can occasionally fail if there is a power cut, if there is a defect in the tube, or if the load becomes snagged on something, as in this case."

When the crane operator accidentally moved the load in a slightly diagonal direction, one of the seven tubes came into contact with the side of the warehouse, peeled away from the crane’s magnet and fell, hitting the operator.

Corus pleaded guilty to a breach of s2(1) of HSWA 1974 by failing to ensure its employees’ safety. As well as a fine, it was ordered to pay the HSE’s full costs of GBP 6248.

In mitigation, Corus said that the crane driver had been trained, and the company was not taking short cuts in order to save money. Since the incident, a gantry has been installed, so that crane operation is now undertaken from above the height of the load. Lorry drivers are now prevented from entering the danger zone while a lift is taking place.

After the case, a Corus spokesperson commented said that "We have made improvements to the work area, re evaluated our processes and focused on enhancing a culture of safety to ensure that there is no repeat of this accident. The health and safety of our employees and contractors is the number-one priority for Corus. We put a lot of effort into creating a safety culture within the organization, and into improving our processes and procedures, to ensure everyone working on our sites is safe."

Kentucky checks Ohio River bridges for weak steel

AP reported that an engineering team was dispatched to check for weaknesses in steel used to construct two Ohio River bridges on Interstate 275, some 5 miles east of Cincinnati.

Mr Chuck Wolfe spokesman of Kentucky Transportation Cabinet said that tests are under way to ensure the safety of the Combs Hehl twin bridges after laboratory tests indicated steel used in the three splice plates didn't meet the state's specifications for strength.

Mr Wolfe said that no other cracks have been found in the bridges. Engineers from Kentucky and Ohio transportation agencies and the Federal Highway Administration recommended that the remaining steel in the bridges be tested. Contractors from Louisville have been hired to conduct those tests. He added that "We believe the bridges are safe, or else they would be closed."

Cracks were discovered in the plates during an inspection the winter of 2006. The cracks were monitored until January 2008 when engineers recommended replacement of the plates. That work was completed on June 1.

Around 150 jobs can be terminated at DGT Steel & Cladding

It is reported that around 150 jobs are at risk at Norfolk based DGT Steel & Cladding after it went into administration.

The GBP 32 million a year turnover DGT Steel called in PricewaterhouseCoopers following cash flow problems. It was the subject of a management buyout last year. It had aimed to increase its turnover to GBP 42 million in three years' time.

DGT Steel has recently completed work at the Imperial War Museum at Duxford and a new terminal at Luton Airport.

Genco Shipping offers attractive investment prospects

In a recent report by Independent Investment Research analysts, Genco’s Shipping & Trading NYSE common stock has been deemed as an attractive investment opportunity, mainly because the company primarily operates on fixed rate long term time charters.

IIR’s target price remained unchanged at USD 98.11, despite the fact that trading the stock ranged in the USD 32 level. This indicates a potential upside of more than 60%.

According to IIR, this decline reflects negative investor sentiment to a drop in freight rates, which have hit a two-year low given slowing iron ore demand from China. The Baltic Dry Index, a composite index tracking the Baltic Capsize, Panamax, Supramax and Handymax indices, declined 10% during last Friday’s session, to reach 3.746.

Iron ore demand has come under pressure as Chinese steelmakers boycott the import of iron ore from Brazil’s Vale, after it asked for a price hike of 11% to 11.5% earlier in September.

Furthermore, China Iron & Steel Association has announced that all its members will be utilizing domestically produced iron ore and in response to fears of a global slowdown, CISA has also announced that it currently has enough stockpile of imported iron ore to meet slowing lowered demand in steel.

Regarding the days to come, analysts remain cautious about spot prices in the short term, but believe in Genco’s strong prospects, given that approximately 92% of its estimated available days during the second half of 2008 and approximately 60% of the whole 2009 are currently secured on fixed rate time charter contracts.

US pressing China for action on raw material curbs

Reuters reported that United States is pressing China to eliminate export restrictions on raw materials used to make steel and other products and hopes it can resolve the issue through talks.

Mr Tim Stratford assistant US trade representative for China said that "I think the Chinese government understands our concern, but we will have to see how it's going to be addressed." He added that the issue will be on the agenda when the United States holds steel talks with China later this month.

US steelmakers have accused China of giving its own steel companies an unfair advantage by restricting exports of coke and other materials used to make steel.

American Iron & Steel Institute said in a statement last week that "These actions by China dictate strong US actions in response including litigation at the WTO."

European industry also has objected to China and other countries' use of export curbs to drive down domestic raw material costs at the expense of foreign producers. Mr Peter Mandelson European Union Trade Commissioner said that EU would fight what he called resource nationalism in the form of at least 450 export restrictions on raw materials around the world.

US steel wire producers complained China was using a combination of export taxes and rebates to encourage low priced domestic production of a concrete reinforcing product known as PC strand.

US Steel Minntac plant fined for air & water quality violation

It is reported that US Steel Corporation has been fined more than USD 100,000 in fines for air and water quality violations at their Minntac plant in Mountain Iron.

As per report site inspections in 2008 and reports submitted by the company to the MPCA in 2006 through 2008 showed a failure to meet waste water treatment requirements. Air monitoring records for the 18 months ending in mid 2007 showed high emissions of dust and a failure to take the actions needed to correct the problems.

Minntac has agreed to bring the site into compliance with the terms of its permits or pay additional penalties.

Steel demand plunges in Vietnam

Vietnam Steel Association said that steel demand dropped fast during the past 5 months and there are still 400,000 tonnes of finished steel and 500,000 tonnes of billets piled up in stock.

VSA urged the government to reduce export tax on billets to 2% first, and then to remove it completely in time to come due to the regional steel demand having declined 10,000 and 250,000 in August and July 2008, respectively, along with a price fall of nearly VND 5 per tonne within the last 4 month period.

The Central Bank increased interest rates to ease inflation and shorten the state owned construction project; therefore VSA suggested that officials will need to act fast with serious tactics and measures to reduce the duty in order to move the unsold steel stocks.

Kobe Steel starts high tensile steel sheet production in USA

It is reported that Kobe Steel has started production of high tensile cold rolled steel sheet for automobile in USA. As per report PRO TECH Coating, Kobe Steel and US Steel's subsidiary in USA, introduces a continuous annealing line with a capacity at 500,000 tonnes per year.

The formal release about this regard will be announced within this month by both companies. The total investment is JPY 30 to JPY 40 billion. Kobe Steel aims to start operation of the new continuous annealing line in 2011.

Kobe Steel cooperates with Voestalpine for the production in Europe. Kobe Steel becomes to supply high tensile cold rolled sheet from the plants in Japan, USA and Europe.

Godo steel reports turnaround in Q3 earnings prospects

Japan's major electric steelmaker Godo Steel Limited has announced a turnaround in its consolidated earnings prospects for April to September 2008 period with upward revisions of the earnings prospects except sales. For contributory factors, prices of locally available ferrous scrap took a nosedive from August onward, while the company's sales prices of products were on the advance then.

As a result, the revised earnings prospects are JPY 118 billion in sales, down by JPY 3,000 million from what was forecast earlier, JPY 1,600 million in operating profit, JPY 1,500 million in pretax profit and JPY 800 million in net profit. The initial earnings prospects were JPY 1,000 million in operating loss, JPY 1,400 million in pretax loss and JPY 1,200 million in net loss.

For the latter half of fiscal 2008, Godo keeps unchanged its consolidated earnings so far. Accordingly, the group earnings for the whole of fiscal 2008 estimated at JPY 256 billion in sales, JPY 8,600 million in operating profit, JPY 8,900 million in pretax profit and JPY 6,000 million in net profit.

Romania inks MoU with Voestalpine for steel plant

It is reported that the representatives of Romanian government and those of Voestalpine have signed a MoU regarding the construction of a plant for the production of steel in Romania. But, this is not the first memorandum signed by Voestalpine, and neither does it guarantee the investment of EUR 5 billion to be performed through this expansion. Such documents have already been signed with Ukraine and Bulgaria.

In connection with the stage of the cooperation with the Romanian party, Mr Peter Schiefer Voestalpine spokesman stressed that part of the land necessary for the plant has already been acquired, the acquisition having to be finalized until the end of the year. An asset for Romania in the race for this giant investment was.

The memorandum was signed by Mr Petar Dimitrov Bulgarian minister for economy & energy and Mr Alfred Dusing financial manager of Voestalpine group. The Bulgarians are determined to bring the Austrians to their country, and on September 4th 2008 they announced that they would pay EUR 150,000 to the foreign consultants to help them in the negotiations.

Vietnamese steel companies earnings hit as prices dropped

According to Vietnam Steel Association, steel company profits have dropped in recent months as prices have dropped. Mr Nguyen Tien Nghi deputy chairman of VSA said that steel consumption in September 2008 fell by 110,000 to 120,000 tonnes, a reduction of 80,000 tonnes compared to August 2008. Steel prices have dropped to VND 16.3 million per tonne from the peak of VND 21 to VND 21.5 million per tonne in July 2008.

Mr Nghi said that lower demand has led to higher steel inventory of 900,000 tonnes among VSA members, which would be sufficient to supply the local market for the rest of the year. He added that some smaller steel ingot producers had closed their plants due to a drop in steel sales and would incur more losses.

To help the domestic steel industry, the VSA has petitioned the government to cut the export tax to 2% from the current 10%. The demand for construction steel has fallen sharply because of a delay in construction in recent months as many investors have not been able to access bank loans.

Construction companies have extended their building period or delayed or temporarily stopped projects, waiting until economic stability returns.

National Pension Service scraps plan to bid for Daewoo Shipbuilding

Yonhap reported that South Korea's pension fund has decided to scrap its plan to bid for Daewoo Shipbuilding & Marine Engineering Co amid the global financial turmoil.

The National Pension Service said in August 2008 that it may spend up to KRW 1.5 trillion to make a joint bid. The pension fund has been in talks with POSCO, GS Group and Hanwha Group to choose a partner for the acquisition of Daewoo Shipbuilding. Hyundai Heavy Industries Co also submitted its bid for the rival shipbuilder.

An official at the National Pension Service said that "The situation is not good for the fund to make an investment into Daewoo Shipbuilding. The fund will hold an investment-plan committee meeting next week to announce its decision not to bid for the shipyard. The fund is likely to find an alternative source of investment at next week's meeting."

The pension fund, with assets of around KRW 230 trillion, has posted a negative return so far this year in the wake of a global financial rout.

Hyundai Motor to focus on Europe to weather impact of global credit crisis

Yonhap reported that Hyundai Motor Co will focus on reviving sales in Europe to reduce the impact from US sparked global financial turmoil.

Mr Chung Mong koo chairman of Hyundai Motor said that "In the wake of the global financial crisis, the global auto market is recently undergoing a sharp contraction. Hyundai Motor aims to improve its profitability by increasing sales of the i30 and C'eed cars in Europe."

The comment came a day after Hyundai, South Korea's top carmaker, reported a sharp drop in its sales in the United States last month, heightening market speculation that it may miss this year's sales target in the world's largest auto market.

Hyundai sold 24,765 vehicles in September 2008 in the US, down by 25.4% YoY, marking the third straight monthly decline. In the January to September 2008 period, Hyundai's sales in the US sunk by 6% YoY to 337,664 units. Despite the decline, Hyundai said that its US sales target of 515,000 units for 2008 is attainable.

CMC Steel purchases industrial facility for USD 4 million

It is reported that CMC Steel Fabricators has acquired the industrial building at 215 S. York Place in Claremont from a private trust for USD 4 million.

The 10,069 square foot manufacturing facility was completed in 1982 at the corner of York Place and Wharton Drive.

Update on US H1 scrap market price

On September 29th 2008, the average price of H1 scrap in Pittsburgh, Chicago and Philadelphia was USD 290.83 per long ton, down by USD 6.67 per long ton from last week. The price of number 2 bundle scrap was at USD 224.5 per long ton, as the same as last week.

Among them, the average price of H1 scrap in Pittsburgh was USD 299.5 per long ton and in Chicago was USD 299.5 per long ton, both unchanged from last week. And the average price of H1 scrap in Philadelphia was USD 256.17 per long ton, down by USD 20 per long ton than the previous week.

In east coast, the average price of H1 scrap in New York, Boston and Huston was USD 256.17 per long ton. In terms of west coast, the average price of H1 scrap was USD 101 per long ton. The prices in these two areas were remained unchanged as those of last week.

(Sourced from Yieh.com)

ASI launched sustainable steel publication

Australian Steel Institute has released a report on steel’s environmental credentials from an industry wide perspective. The dedicated publication was launched in Perth on September 15th 2008 at the Steel Convention.

According to the ASI, the publication is part of work by its sustainability group to ensure the domestic steel industry stays relevant to the environmental debate.

Issues like carbon trading and energy loads are becoming prominent, and the ASI said that it is important to explain steel’s sustainability credentials in plain English.

The report includes local examples and figures, and attempts to navigate through the conflicting information on green materials, points schemes, embodied energy, and other measures. The report assumes a life cycle analysis is the proper way of accounting for steel recyclability. It also details Australian programs involving recycling water and waste heat to reduce the environmental impact of steelmaking.

The ASI said that it will conduct a seminar series in each Australian state, starting in early 2009. These forums will discuss the impact of the proposed emissions trading scheme on individual businesses.

POSCO considers acquiring steel company in China

Bloomberg reported that POSCO is still considering buying a steel company in China, joining others in seeking growth in the world's biggest metals consumer.

According to a statement filed by POSCO, "POSCO is reviewing the investment opportunities by acquiring a steel company in China, but nothing has been determined yet.''

China is the world's largest maker and user of steel, stoking interest from overseas mills including POSCO and ArcelorMittal. China does not allow foreigners to take control of domestic steelmakers.

Mr Kim Gyung Jung an analyst with Samsung Securities Co said that "In the long term, POSCO's investment in China will work positively for the company as the country is the biggest steel market.''

Mitsubishi Materials to restart development of Similco Cu mine

Mitsubishi Materials has announced that it will restart development of Similco copper mine in Canada in cooperation with Copper Mountain Mining Corporation. Mitsubishi Materials will subscribe for newly issued shares of Similco Mines and acquire a 25% equity interest in Similco Mines for CAD 28.75 million.

Mitsubishi Materials will also arrange CAD 250 million project loan for the project. Similco's copper concentrate output will be approximately 150,000 tonnes per annum, all of which will be purchased by Mitsubishi Materials.

Japanese H2 scrap average prices soar

During the fifth week of September 2008, Japanese H2 scrap average price was increased to JPY 44,887 per tonne in the Kanto region and Kansai region.

Among them, H2 scrap price was JPY 44,333 per tonne in the Kanto region, up by JPY 500 per tonne than last week, H2 scrap price was JPY 43,260 per tonne in the middle part, the same as that last week, JPY 47,067 per tonne in the Kansai region, up by JPY 1,667 per tonne.

At the same time, Japanese H2 scrap average price was JPY 43,123 per tonne, up by JPY 310 per tonne than previous week.

(Sourced from Yieh.com)

Rautaruukki delivers and installs steel bridge structures in Narvik harbor project

Rautaruukki is supplying and installing steel superstructures for a railway bridge which is part of a harbor improvement project in Narvik, Norway. Delivery includes a railway bridge section totaling 500 meters in length over 11 underground silos. The contract is valued at about EUR 4 million.

The ongoing project, known as SILA, is a large renovation project being carried out by LKAB of Sweden to improve facilities at Narvik harbor in Norway. The project includes construction of a new storage and loading facilities with 11 underground silos for iron products. Because the ore stockpiling facility is being built underground, the harbor infrastructure is at the same time being adapted for efficient handling and to accommodate larger product volumes.

Mr Per Nautvik quality manager from NCC Construction AS said that in this project, Ruukki is working very closely with its customer NCC Construction AS. He added that "An ability to handle the combination of production and on-site installation was the factor that clinched the deal for Ruukki. Another factor in Ruukki's favor was the work quality and a delivery time schedule that has been strictly adhered to."

Ruukki's deliveries and installation work will be ready by the end of this year and the whole project will be completed in September 2009. Ruukki's delivery consists of 1500 tonnes of steel structures, which were made in the units in Ylivieska Finland and Sandnessjøen Norway.

Iran to impose 30% export tax on scrap

Iran’s government decided to impose a 30% tax on export scrap, which has brought resentment from scrap traders because they will have to face the difficult situation of an export and price war among domestic steel manufacturers.

Iran’s government also decided to impose a 30% tax on export slab and plate billet one month ago.

On the other hand, a domestic steel mill estimated that Iran needs around 15 million tonne of scrap per year. The 30% export duty is not sufficient to prevent exports, which would require 50% duty.

(Sourced from Yieh.com)

UAE becomes leading importer of Turkish steel

It is reported that UAE has replaced Germany to become the leading importer of Turkish steel as exports to the Gulf increased due to construction boom in the region and strengthening economic relations.

According to Anatolia News Agency, painful economic slowdown has resulted in reduced exports to countries in Europe as Turkey's exports in August to the UAE have surpassed exports to its number one economic partner Germany for the first time in history.

Exports to the UAE last month reached almost USD 1.15 billion while Germany came second with imports worth USD 988.6 million followed by the UK with USD 576.5 million. Saudi ranked eight with imports worth USD 357.67 million.

According to a senior official from Danube, most construction firms and developers in the UAE prefer Turkish steel. He said that "Although steel is imported from several other countries, majority favors Turkish steel.”

Among Turkey's industrial exports, iron and steel had the largest share in exports with 23.32%. In Turkey the highest export increase has also been experienced in iron and steel products. Iron and steel products' export increased 47.25% in August.

It said that growing import of construction materials into the UAE has added to the clogging at various UAE ports resulting in increasing instances of delays in delivery. A Dubai based trader of construction materials told Emirates Business the second factor adding to the bottleneck is the closure of Port Rashid in Dubai.

Industry sources attribute the ripple effect to the beginning of the second quarter this year, when the UAE Government removed the 5% custom duty at Dubai port. The move has helped stabilise rocketing prices of building materials in the third quarter and allowed several non traders to enter into the business and freely import cement and steel into the UAE.

India skips crucial meet on IPI pipeline

BS reported that India has missed yet another meeting on the Iran-Pakistan-India gas pipeline last weekend as officials from Iran and Pakistan met in Teheran to discuss the revised project cost and a new pricing formula.

An Iranian official said that “There seems to be no urgency from India. Like last year, India has not joined Iran and Pakistan at the secretary-level meeting that took place on Saturday in Teheran.” He added that “Everyone is running out of time.”

However, Indian officials said that they would first have to settle the issue of transportation tariff and transit fees to ensure security of the pipeline with Pakistan before they restarted talks with Iran. Indian and Pakistani officials met in April this year to settle the issue but could not reach an agreement.

As per report the cost of the pipeline is now projected at USD 9 billion, around USD 1.5 billion more than the earlier estimate. Also, the cost of gas for India may increase by 40% if the new pricing formula quoted by Iran is accepted.

Natural gas from Iran, estimated at 30 million cubic meters per day will increase India’s domestic gas availability by a third. In comparison, Reliance Industries Ltd will produce 80 mcmd of gas from its block in the Krishna-Godavari basin, which will nearly double the availability in India. However, government officials and analysts said India would continue to remain gas-deficient as latent demand will crop up once the availability of gas is ensured.

Pakistan forms body to finalize sites for shipyard projects

Business Recorder reported that Mr Syed Yousuf Raza Gilani PM of Pakistan has constituted a committee under the chairmanship of Minister for Ports and Shipping Qamar Zaman Kaira to finalize the sites for building shipyards at Karachi and Gwadar.

The Prime Minister constituted the committee following a meeting to review the progress on the development of shipbuilding industry in the country here on Tuesday. Members of the committee include Secretary of Port and Shipping; Secretary, Defence Production, Managing Director of Karachi Shipyard, Chairmen of Port Qasim Authority and Gwadar Port Authority.

Mr Gilani expressed the government's resolve for the development of shipbuilding industry in the country, saying that setting up of two shipyards in Karachi and Gwadar would go a long way in catering to domestic as well as international needs.

He stressed that the need for making Pakistan a leading shipbuilding country of the region, thus contributing towards economic development and poverty alleviation. Highlighting Pakistan's unique geo-strategic location and trained manpower, the Prime Minister said that this advantage needed to be leveraged to enter the shipbuilding industry in a big way through joint ventures with reputable international shipyards.

He said that shipyards not only generated employment opportunities, but also developed wide range of ancillary industries. Earlier the Managing Director of Karachi Shipyard briefed the Prime Minister about the progress made on the development of shipbuilding.
He also said that two world class shipyards on joint venture basis were proposed to be built at Gwadar and Port Qasim. These projects would attract major investment from foreign sources.

Abu Dhabi to create vast water stockpile

It is reported that emirate plans to pump billions of gallons of fresh water underground to establish an emergency reserve. The AED 1 billion (USD 270 million) projects would supply Abu Dhabi with drinking water for three months should other sources fail.

The water would be stored in artificial aquifers, layers of water bearing rock or sand from which reserves could be drawn through wells.

Dr Mohammed Dawoud manager of water resources for the Environment Agency Abu Dhabi said that more than five billion gallons of desalinated water would be pumped underground at a rate of five million gallons a day for three years.

He said that “In Abu Dhabi and the Gulf region we rely on water from desalination plants for domestic use; we have no surface water and we have no groundwater to speak of.”

He added that “Desalination plants are very sensitive to any pollution in the Gulf or any other kind of emergency. They also sometimes need to be shut down for several weeks for maintenance. Because there are no complementary resources, we need to have a strategic reserve.”

Dr Dawoud said that three options had been considered: borrowing water from neighbors storing water in tanks and using the sand and rocks of the desert to trap the water in aquifers. He said that “In this region, pumping water from neighboring countries is not an option as they are in the same situation as us. We could look at building storage tanks out of steel and concrete, but that would cost a lot of money and would have a huge environmental impact, as they would require a lot of land.”

The aquifer scheme was approved in March after a successful pilot project near Liwa in 2004. Work on the main strategic reserve is expected to start by the end of next year, with water injection starting in 2011.

Orascom Industry to produce super critical boilers

Orascom Construction Industry has announced that it has reached an agreement with Babcock Hitachi of Japan to cooperate in the field of super critical boilers required for power stations.

OCI has lately acquired Cairo based IBSF, Ex El Nasr Company for Boilers and aims at revamping its production lines and support utilities to host the new technology, to be extended by BHK.

This deal would make OCI a sole producer and integrator of such highly sophisticated boilers deemed a common component of thermal power generation projects.

Library containing reports on Thar Coal project established

Associated Press of Pakistan reported that Sindh Government has setup a Library at Clifton to facilitate those intending to invest in Thar Coal energy project.

The Library contains survey reports about various Blocks of Thar coal besides study and feasibility reports. Advisor to Chief Minister for Mines and Mineral Development Dr Kathumal Jeewan told journalists Tuesday that a number of intending investors of Thar Coal Energy visits the library daily.

He pointed out that government had spent a big amount on the preparation of these reports while it takes about three years to prepare a feasibility or study report. He said that "The intending investors would save both time and money with the availability of these reports in the library adding that government has made these reports open.”

Dubai Investments expects to double profits in Q3-2008

Reuter reported that UAE's largest diversified holding firm by market value Dubai Investments Co expects profit in the third quarter to more than double on the private placement of one of its units and property sales.

Mr Khalid bin Kalban CEO of Dubai Investments told Reuters that the group was planning to expand its real estate business by buying land in Saudi Arabia and said its glass unit planned acquisitions in the kingdom and the United Arab Emirates. He said that "We expect profit for the third quarter to be between AED 650 million to AED 700 million.”

Mr Kalban said that "When we bought the real estate units we knew there would be increase in prices and now we are profit taking adding that real estate would contribute about AED 300 million to its third quarter net income.”

Dubai Investments whose business ranges from glass making to pharmaceuticals, made a net profit of AED 268 million (USD 148.8 million) in the corresponding period last year.

Danube to invest in a new steel facility in Mabella

Gulf News reported that Oman is aiming to become one of the Gulf region's top iron and steel producer, with plans to invest USD 5 billion to boost productivity and construct new facilities.

As a relative newcomer to the steel sector, Oman has witnessed significant growth in its steel industry in the last few years.

Industry analysts are optimistic of Oman's potential to become a major steel producer in the region, with the government taking substantial investments in developing its steel production capacity primarily to supply the burgeoning local consumption, which is expected to hit 1.1 million tonne by 2010.

Danube Building Materials FZCO, construction, interior decoration and shop fitting industry, has announced that it will be channeling Dh50 million to develop a new steel facility at Mabella in Oman.

The facility will function as the logistics hub for Danube's operations in Oman and will facilitate the storage of all stock including deformed bars and other structured steel like angles, channels and plates.

Chinese steel market facing uncertainties

It is reported that China's steel market is faring ill at the moment with the high prices came and gone, stricken by relaxing demand as a result of economic slowdown and the increasing capacity pressure.

It has been certain that China's economy is loosening despite a huge potential domestic consumption market as the people's income is growing slowly, stock investors are making losses and durable goods consumption is also expected to come substantially down. The overseas demand, against the backdrop of global recession, is also found hard to support China's domestic economy.

To the contrary, China's steel capacity keeps a rapid increase, citing close to 50mt hot rolling fresh capacity alone this