Indian steel makers plan 20% output cut - Report

Bloomberg reported that Indian steelmakers may lower output by as much as 20% as prices and demand decline while raw material costs rise.

The report said that plans to lower output at so called global companies will have an impact on Indian steel operations, citing a spokesman at Essar Steel Limited who wasn't identified.

It added that companies that import raw materials including coal may plan production cuts.

However the report added that TATA Steel, Steel Authority of India Limited and JSW Steel Limited denied any plans to lower production.

Indian domestic steel price decline further

The mayhem in domestic steel prices in India continued fuelled by the reduction in prices by SAIL and JSW in flat products. The reduction in Long is expected soon. The Long & Flat Product Price Index fell by 83 & 43 points respectively, whereas the steel price index fell by 64 points:

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

Long products

Flat products

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Rathi Super to set up mega steel plant in Jharkhand

Projects Monitor reported that Rathi Super Steel Limited is planning to set up an integrated finished steel plant near Jamshedpur in Jharkhand with an initial capacity of 2.25 million tonnes per annum.

Mr CK Singh deputy GM of Rathi Super Steel said that the project is estimated to cost INR 1,500 crore and will come up in phases.

He said that "We are in the process of identifying about 700 acres for the project. We have recently signed an MoU with the Jharkhand government and are in talks for the supply for iron ore from the state mines and are awaiting other necessary clearances.”

He further said that once the land acquisition was complete, they would start executing work, and the project was expected to complete in three years from zero date.

The plant will be funded through bank loans and internal accruals and will manufacture both long and flat products.

Indian long products price decline

Kolkata

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

Mandi

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

Kanpur

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

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Flat products price decline in Mumbai

Mumbai

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

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TATA Motors announces exiting from West Bengal

Mr Ratan Tata chairman of TATA Motors, after meeting Mr Buddhadeb Bhattacharjee chief minister of West Bengal, informed journalists TATA Motors’ decision to pull out from Singur in the interests of the Nano small car project’s success and viability and in the light of the Opposition’s continued and heightened agitation there.

Mr. Tata said the decision followed a 90 minute meeting he had with the Chief Minister. He said that “Mr Bhattacharjee was very persuasive in his desire not to move the project and I had to explain that the well being of my employees is my responsibility. We cannot run a plant with police protection, when the walls are being broken, bombs being thrown, people being threatened and intimidated.”

Mr Tata made it clear that the reason to pull out of Singur was the agitation by the Opposition party led by Ms Mamata Banerjee and not the State government. He said that “I hope that West Bengal sees development and not becomes a State that stands still because of agitations. I am bullish about the industrial prospects of West Bengal.”

He pointed out that “Ms Mamata Banerjee had publicly said that the people of West Bengal have decided they do not want you. I am not pulling out because of some whim or fancy.”

He however said that “We believe in what the chief minister and his government are doing and am exceedingly sorry I faced this experience at Singur not with the State government but the circumstances. I hope we parted as friends.”

Mr Tata said that Tata Motors is yet to decide where the Nano car project would be relocated. He said that “We have got offers from three or four state governments that we are exploring. We hope we will able to find a location which has a congenial atmosphere but really wished we could have had the congenial atmosphere in West Bengal.”

HZL cuts zinc and lead prices

India’s leading metal producer Hindustan Zinc Limited announced that it has reduced the prices of zinc by INR 2,700 a tonne and lead prices by INR 3,800 per tonne.

Zinc would be available at INR 88,500 per tonne and lead at INR 99,300 per tonne,

The price revision is effective from yesterday.

JSPL forms new JV for CTL project at Angul in Orissa

TOI reported that Jindal Steel & Power Limited has floated a JV company with 3 other Jindal group companies to implement its proposed project for synthesizing oil and gas from coal. The new venture has been christened Jindal Coal to Liquid Limited.

AS per earlier reports, JSPL has informed the coal ministry of its interest in setting up a coal to liquid project and request for allocation of coal acreage. In a recent letter the company has told the ministry it will invest INR 42,000 crore in the project. It is to be located in Orissa’s Angul district where the company is building a steel plant at an investment of INR 15,000 crore.

As per report, JSPL has tied up with Sasol Lurgi the South African German venture considered a pioneer in the field for the project. The project will use coal to synthesize gas which will be used in the steel plant itself. Along with gas, the project will also produce motor fuels 55% to 65% of which will be diesel. The company has projected a capacity of producing 80,000 barrels a day of oil which will be cracked for motor fuels.

Scrap and pencil ingot prices decline in India

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 October 3rd as compared to October 1st
Change is in INR per tonne

Sponge iron

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

Pencil ingot

Change is on October 3rd as compared to October 1st
Change is in INR per tonne

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Steel Strips September sales up by 11% YoY

It is reported that automobile wheel rims maker Steel Strips Wheels Ltd sales in September 2008 grew by about 11% YoY to 555,583 units.

Steel Strips Wheels export sales rose by 46.8% to 22,524 wheel rims during the month. It increased production of wheel rims to 549,553 units from 500,738 units last September.

ASSOCHAM welcomes US approving of Indo US nuclear deal

Mr Sajjan Jindal President of ASSOCHM complemented the UPA Government to take the Indo US Civil Nuclear Agreement to logical conclusions and fought immediate amendment to Atomic Energy Act 1962 to enable private sector to take part in nuclear power generation.

Mr Jindal specially complemented the Mrs Sonia Gandhi chairperson of UPA, Dr Manmohan Singh PM of India and Mr Pranab Mukherjee external affairs minister under whose combined leadership, the initiative to sign Indo-US Nuclear Deal are effected.

According to ASSCHAM, with Indo-US Civil Agreement in place, a minimum of INR 0.2 million crore investments would come in Nuclear Power Generation Sector in next 15 years. The Deal is significant and India should welcome it unanimously.

Southern Railways approves over bridge designs by NHAI

Project Today reported that Southern Railway has approved designs for railway over bridges and other technical details provided by the National Highway Authority of India as part of the expansion of national highways all over Tamil Nadu.

As per report, the construction of the railway over bridge at Lalapettai near Kulithalai in adjoining Karur district will be completed by December end. The project is a part of a national highways expansion project all over Tamil Nadu.

RIL offers to sell diesel in domestic market

BS reported that Mr Mukesh Ambani chairman of Reliance Industries Limited recently met Mr RS Pandey Petroleum Secretary and offered to sell diesel from the company’s refinery in India if the government removes double taxation of the fuel.

Mr Pandey said that “They have offered to sell whatever quantity of diesel the oil marketing companies need, but want the taxation issue to be resolved. We are looking into it.”

RIL’s 33 million tonnes per annum refinery was given export oriented status in early 2007 which makes it compulsory for the refinery to export a minimum of 50% of its products. The refinery would also have to be a net foreign exchange earner. The RIL refinery produces around 11 million tonnes of diesel annually about 23% of the total volume of the fuel consumed in the country.

However if the company sells fuel produced from the refinery in the domestic market it would have to pay Customs and excise duty on the diesel sale. There would also be an additional excise duty on the fuel sales. This taxation structure would increase the cost of the diesel. However RIL itself does not stand to lose due to the taxes as it can pass on the higher costs to the oil marketing companies.

As per report, demand for diesel rose by a higher than anticipated 18% in the current financial year so far as the fuel was used by consumers to generate electricity. If RIL sells diesel in the domestic market instead of exporting it the country’s shortage of the fuel will decrease significantly.

India’s government owned refineries had estimated only 14% growth in demand for diesel, thus they were importing diesel. If RIL sells diesel in the domestic market it will result in savings for the oil marketing PSUs.

The demand for diesel has been growing by around 18% since April 2008 as generators and power plants are using more diesel instead of fuel oil. Fuel oil prices which are market determined are generally lower than diesel. But with oil prices rising to over USD 145 per barrel in July fuel oil became more expensive than the subsidized diesel in India.

Gangavaram Port likely to be inaugurated this month

It is reported that Gangavaram Port being built by a consortium led by Mr DVS Raju is expected to be inaugurated this month.

As per report, 5 berths have been built and are ready for operations. Already 3 to 4 vessels have been handled at the new port on a trial basis. The consortium has spent around INR 1,800 crore in the first phase for building berths and other facilities.

Mechanized handling facilities have also been installed at the port and there is also a conveyor belt to the Visakhapatnam Steel Plant which is a major client for the port.

It is expected that during the first year of operations itself, the port may handle up by 5 million tonnes of cargo. The port being in the private sector will be able to fix its own handling charges.

RRB Energy bags INR 358 crore wind turbine contract

Project today reported that RRB Energy bagged an order worth INR 358 crore turnkey contracts from a few wind energy farms in Maharashtra and Tamil Nadu.

As per report, the scope of work includes site selection, preparation of DPR, project engineering, erection, commissioning and after sales service along with supplying over 100 machines with capacity 600 KW. The wind farms in Maharashtra will be 45 MW capacities and that in Tamil Nadu will be 25 MW.

DMICDC identifies four rail infrastructure projects

Project today reported that the Delhi Mumbai Industrial Corridor Development Corporation has identified four rail infrastructure projects at an investment of over INR 20,000 crore. All these projects will be undertaken in the next 6 to 12 months through PPP basis. The projects include

1. 300 kilometer rail link between Delhi and Jaipur up to the proposed airport at Shivdaspur in Rajasthan at an estimated investment of INR 10,000 crore

2. 45 kilometer metro rail system between Gandhinagar and Ahmedabad at a cost of INR 5,000 crore

3 15 kilometer metro rail link connecting IGI Airport in New Delhi to Hero Honda Chowk in Haryana at a cost of INR 2,000 crore

4. 25 kilometer Metro rail system between Noida and Greater Noida at a cost of INR 3,000 crore

To implement these projects DMICDC is in the process of signing MoUs with 6 states namely Uttar Pradesh, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra. All these states have already nominated their nodal agencies that will work with DMICDC and various other central and state government agencies to implement these projects.

Besides these projects the corporation is planning three regional rail links Pune to Nashik in Maharashtra, Palwal to Rewari in Haryana and Palwal in Haryana to Khurja in Uttar Pradesh. However these proposals are yet to be finalized.

Global meet on shipbuilding industry on October 7

Exim News Service reported that the Federation of Indian Chambers of Commerce and Industry in association with the Shipyards Association of India is organizing a Global Conference cum Exposition on Shipbuilding Industry on October 7th and 8th at the Federation House.

Mr TR Baalu Union Minister of Shipping, Road Transport and Highways is slated to inaugurate the event.

The conference aims to serve as an interactive platform between the economic advisors, policy makers, regulatory authorities and shipbuilding industry to take up and recommend remedial fiscal reforms and government support measures needed to make the shipbuilding sector compete globally.

Sourav Ganguly appeals to TATA to produce Nano at Singur

It is reported that Mr Sourav Ganguly former Indian cricket skipper urged Mr Ratan Tata chief of TATA group not to shift the Nano factory out of West Bengal and instead ensure that the small car was produced at Singur.

Mr Ganguly, a TATA Steel employee, in that statement said that “The starting of the Nano project will be the beginning of an era in West Bengal which will completely revolutionize the prospect of the state and the future of the youth.”

Mr Ashok Bhattacharya state minister for municipalities and urban affairs said that “Mr Sourav has written to Mr Ratan Tata urging him to see to it that the Nano rolled out of Singur.”

He said that “Mr Sourav told me he has written to Mr Tata that the majority of people in Singur and the rest of the state were in favour of TATA Motors' Singur project. He has also mentioned the massive employment opportunities that the project will provide to the people of Singur and elsewhere.”

Mr Ganguly's missive to TATA comes a day before the industrialist is to meet Mr Buddhadeb Bhattacharjee CM West Bengal at the state secretariat here in a last ditch attempt to produce the car at the Singur factory, where the company suspended work exactly a month back September 2nd fearing the safety of its workers.

Volkswagen eying commercial vehicle market in India

Project Today reported that Volkswagen Group is studying the possibility of launching its commercial vehicles in India. A feasibility study being conducted for the purpose is expected to be completed by the end of 2008 and a decision will be taken thereafter.

As in the case of its passenger car venture, the German automobile company is likely to go it alone in the Indian commercial vehicles market too, if the study comes up with a favorable result.

As per report, Volkswagen's plant at Chakan near Pune is being readied for a possible rollout of its first cars by the mid 2009. The first vehicle to roll out of the assembly line there could well be the Fabia the small car from group company Skoda Auto.

Reliance to test run new refinery soon

The Financial Express reported that Reliance Industries will begin test runs of its new export oriented refinery at Jamnagar in Gujarat in the next few days and may commission it within a month time. The report cited a top company official as saying that “Test runs will begin in next few days.”

The official said that “We will commission in phases and if everything goes well we hope to repeat the first refinery's commissioning which was done in days because we did not have any problem.” Various units of the refinery will be commissioned step by step and full commissioning may take less than a month time.

He said that “Initially we will produce Euro-IV grade petrol and diesel and will upgrade to Euro-V once more complicated units like DHDS are commissioned.”

The official however refused to put a date to the commissioning. Fuel from the refinery will be mostly exported to the US and Europe.

Reliance Petroleum, a unit of RIL, is setting up the 580,000 barrels per day refinery in a Special Economic Zone at Jamnagar at a cost of USD 6 billion. The new refinery is likely to repeat the 1999 commissioning of RIL's existing 660,000 barrel per day refinery at an adjacent site to the new unit. We could reach full capacity within a day of starting production.

ONGC and Mittal Nigerian JV Co under scrutiny

My Iris reported that ONGC Mittal Energy the JV floated by public sector petroleum company Oil and Natural Gas Corporation and Lakshmi Mittal’s, Mittal Investment Sarl is now under inspection of African nation’s Parliament for illegally obtaining USD 100 million worth OPL-246 block.

OPL 246 is the relinquished area of the billion barrel Akpo oilfield of South Atlantic Petroleum that is part owned by Mr Theophilus Danjuma Nigerian former defense minister.

The investigations that are been carried out by House of Representatives reveal inconsistency in technical report prepared by Department of Petroleum Resources. Also the application file for OPL 216 and 246 could not be traced.

The official said that investigations also revealed that OMEL had been awarded the contract after the bidding had been closed. The Committee noted from the records that OPL 246 was awarded to an oil company before DPR gave it out to OMEL.

A Nigerian government officer said that the Committee has also sought to know that OMEL had not fulfilled the investment it had committed in downstream projects to secure oil blocks in Nigeria. He added that Mr Tony Chukwueke director of DPR who handled the 2006 bid round had already been suspended.

US House passes USD 700 billion financial bailout

United State’s House of Representatives approved a USD 700 billion bailout package for US banks, under pressure from all sides as the effort to head off a spreading financial crisis hung in the balance. The House approved the financial rescue plan by a vote of 263-171.

The bill would allow the Treasury to buy toxic debt from US banks, which many economists said is needed to head off the worst financial crisis since the Great Depression.

On Friday, speaker after speaker from both parties said rejecting the bailout could have devastating consequences for an already slowing US economy, arguing the bill was as important for small businesses, homeowners, students and pensioners as it was for the financial sector.

The House had shocked world markets on Monday by rejecting a previous draft. With elections on November 4th 2008, lawmakers from both parties were wary of voter backlash in asking taxpayers to pay for Wall Street's mistakes.

A collapse in the US housing market and resulting bad mortgages have shattered confidence in the financial sector, with banks across the United States and Europe needing support from governments or outside investors this week.

Shredded scrap prices in US decline another USD 30 per tonne

Platts reported that US ferrous scrap prices softened further this past week, sending the Platts reference price of shredded scrap down USD 30 Thursday to a new midpoint of USD 305 per long ton delivered to Midwest mills.

As per Platts report “One large Eastern US scrap processor confirmed several sales early this week that netted USD 300 per long ton FOB yard, which normalizes to about USD 320 per long ton delivered with typical freight. Since then, however, inquiries are coming in at lower numbers closer to net USD 270 per long ton FOB yard, normalizing to about USD 290 per long ton delivered with typical freight.”

He added that prime scrap, which sold last month around USD 575 per long ton to USD 585 per long ton, could slip as low as USD 400 per long ton.

As per report, a major Southeastern scrap processor agreed with the USD 305 per long ton shredded figure and the USD 400 per long ton prime price. He also concurred that mills would be buying less scrap as they produced less steel, leading to a massive reduction in demand, when extrapolated nationally.

Class action lawsuits still being filed against US steelmakers

Platts reported that a fourth class action lawsuit against US steelmakers was filed on October 2nd 2008 in the same US District Court of Northern Illinois as three previous complaints filed in September against the same eight steel producers.

Like the others, it seeks damages under US antitrust laws on behalf of the plaintiff identified as Capow Inc, doing business as Eastern States Steel located at Norristown in Pennsylvania.

The defendants named are the same as in the other cases including ArcelorMittal USA, US Steel, Nucor, Gerdau Ameristeel, Steel Dynamics, AK Steel Holding, SSAB Swedish Steel and Commercial Metals.

Three of the four lawsuits have now been filed by the same law firm Freed Kanner London & Millen of Bannockburn of Illinois. This firm has filed on behalf of Standard Iron Works, Wilmington Steel Processing, and Capow Inc all located or formerly located in Pennsylvania.

Chicago based firm, Miller Law LLC, filed on behalf of Michigan based Supreme Auto Transport.

Recovery package includes sops for scrap recycling industry

The financial plan passed by Congress today to shore up the US financial system includes provisions of the Recycling Investment Saves Energy legislation that would provide a 50% accelerated depreciation allowance for purchases of recycling equipment.

The RISE provisions were part of several energy savings provisions added by the Senate to the financial rescue plan after the US House of Representatives voted earlier this week against the recovery plan. The House agreed to the Senate revised plan that includes several energy and tax provisions, including RISE.

The scrap recycling industry has been seeking this accelerated tax depreciation allowance since the 109th Congress.

Mr Robin Wiener president of the Institute of Scrap Recycling Industries said that “We are immensely gratified and pleased that the Congress has chosen to pass the RISE provisions as part of the legislation dealing with the current financial crisis. RISE will lead to improvements in recycling by providing low cost incentives for purchases of recycling equipment that will ultimately help the United States reduce its energy use and greenhouse gas emissions while helping the U.S. economy and creating good manufacturing jobs.”

He said that “At a time when worldwide demand for recyclable materials continues to grow, Americans continue to generate huge quantities of potentially recyclable materials. RISE will encourage the procurement of advanced sorting, separation and processing technologies that will enable recyclers to better handle and process mixed materials, such as paper and plastics, into commodities that can be used as valuable raw material feedstock in additional manufacturing applications. These new processing technologies will help expand America’s recycling capacity.”

The Institute of Scrap Recycling Industries Inc is the "Voice of the Recycling Industry." ISRI represents more than 1,600 companies in 21 chapters nationwide that process, broker and consume scrap commodities, including metals, paper, plastics, glass, rubber, electronics and textiles.

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.

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)
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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, introduced 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.

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 launches 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.

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.

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
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Price:
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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.

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.

Global economic power shifting to third world

World Economic Forum said global economic power is likely to shift to high growth and densely populated economies as emerging market growth appears less susceptible to the current slowdown in the US.

World Economic Forum in its report titled 'Global Growth @ Risk 2008' said that “Emerging market growth appears less susceptible to a slowdown in the US but low income countries face risks from inflation in the form of loss of domestic market growth, wage increase pressures and greater societal and political instability.”

Financial market crisis that began in early 2007 has resulted in a write off of over USD 500 billion by banks. The report added that “The short-term outlook for global economic growth looks bleak, largely due to the sub prime crisis and concerns about inflation and a possible slowdown in 2009 have engendered a great deal of uncertainty.”

The report said that global growth forecasts would reflect a shift of economic power to high growth and highly populated economies and wealthy oil producing nations.

The report added that “The biggest emerging markets, China and India have both seen strong growth in domestic consumption and have also improved productivity and diversified their trading partners to neighboring and other economies, making them less reliant on US demand than in the past.”

The IMF outlook for 2009 still forecasts strong growth in almost all the major emerging markets with China still set to grow at 10% in 2009 and India expected to achieve YoY growth of 8%.

The report added that rising inflation hovering at double digit in most emerging markets has been cause for concern. However with the decline in energy and food prices over the past months, headline inflation rates are expected to drop in early 2009.

The report further said that “capital inflows in emerging countries that contributed to the expansion in the last few years may now become more unstable if there is an increase in speculative inflows.” The report added that this shift in economic power is giving rise to a rapidly growing global middle class whose spending power will drive the growth, adding that governments and business need to create ways to make this coming boom in consumption sustainable.

Currently 3 trends are emerging as influential for future growth prospects first is the emergence of fast-growing economies with large populations and.

Vietnamese steel makers 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.

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)

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Rautaruukki installs steel bridge structures in Narvik Harbor

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.

Hyundai Motor to focus on Europe to balance 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.

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.

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US Steel Minntac plant fined for air and 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.

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.

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.

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.

Iranian Steel Industry Set to Grow

FNA reported that Iran's steel production capacity will exceed 15 million tonnes by the end of the current Iranian calendar year.

Mr Ali Palizdar deputy director of Iranian Mines and Mining Industries Development and Renovation Organization said that the country will see a rise in its steel output capacity by the end of the next calendar year and it will hit 29 million tonnes.

Mr Palizdar said that "By the end of the current year Iran's aluminum production capacity will touch 486,000 tonnes and the output will surpass 250,000 tonnes in this period.

Everest Kanto receives order of USD 13 million in MEA

Indian firm Everest Kanto Cylinder Limited has informed BSE that the Company has received an order from Pakistan and Middle East countries for the supply of CNG cylinders through EKC International FZE the Company's wholly owned subsidiary in Dubai.

The total value of this order is more than USD 13,000,000.

Turkish steel exports increase in September despite crisis

Today Zaman cited Mr Kürşad Tüzmen Foreign Trade Minister of Turkish as saying that Turkish exports made a strong showing in September Turkey had retained an advantageous position in export competition despite the ongoing global financial turmoil.

Mr Tüzmen said that although Turkey’s export share in European Union markets had decreased, exports to neighboring countries had increased. The Turkish Exporters’ Assembly announced that exports were up by 36.4% in September compared to the same month last year reaching USD 12.2 billion.

According to a written statement issued by TİM, Turkey’s exports between January and September increased by 35.4% over the same period last year reaching USD 102.5 billion. Between September 2007 and September 2008 Turkey’s exports totaled USD 1,332.8 billion. The iron and steel manufacturing industry saw the biggest export increase 162% and was followed by the chemical components sector whose exports increased by 58 percent in September over the previous year.

Turkey’s annual iron and steel exports amounted to USD 2.2 billion followed by USD 2.1 billion of automotive exports and USD 1.3 billion garment and textiles exports. A full 86% of total Turkish exports in September came from the industrial sector and 11.2% from the agricultural sector in the same period. Mining sector exports accounted for 2.8% of Turkey’s exports in September reaching USD 334.5 million.

Also in September a downturn was seen in certain areas including the olive oil and industrial sector compared to August. İstanbul Mineral and Metal Exporters Union members exported the highest number of goods in September bringing in USD 4.6 billion in revenue. The United Arab Emirates, Germany, the United Kingdom, Russia and France were the top 5 countries importing goods from Turkey.

Sinopec buys Syrian oil firm for USD 2 billion

Reuters reported that Chinese oil firm Sinopec Group has agreed to buy Tanganyika Oil a small producer of heavy oil in Syria for USD 2 billion.

Tanganyika Oil which is listed in Toronto and Stockholm said that its board had recommended Sinopec's bid of CAD 31.50 for each of its 65.615 million shares representing a substantial premium to its recent share price and valuing the firm at CAD 2.07 billion.

Mr Larry Grace an energy analyst at Kim Eng Securities in Hong Kong said that Sinopec Group which is Asia's top oil refiner and the parent company of Sinopec Corp. The acquisition of Tanganyika Oil brings it 184 million barrels of proven heavy oil reserves at a cost of roughly USD 10 a barrel.

He added that "That's good, but it's heavy oil and it's in Syria and not producing all that much right now. Compared to just one of Sinopec's fields in China it's miniscule noting that production was expected to grow from 6,000 barrels per day to up to 12,800 bpd this year.”

China's big three state owned energy firms CNPC, Sinopec and offshore specialist CNOOC have spent years hunting for oil deals to fuel the economic boom back home, but they have faced fierce competition from other Asian buyers.

Russia interested in gas pipeline projects in Iran

IranMania reported that Mr Sergei V Lavrov Russian Foreign Minister has shown keen interest in the multi billion dollar Iran-Pakistan-India gas pipeline and said that Russian gas company Gazprom would be interested to participate in the project.

A Foreign Ministry statement said Mr Lavrov met Mr Makhdoom Shah Mahmood Qureshi Pakistani Foreign Minster on the sidelines of the 63rd UN General Assembly session in New York and discussed IPI and other bilateral matters.

Mr Lavrov said that the two countries could cooperate in a number of sectors in the economic field. He said that “These included energy, communications, gas pipeline projects, steel production and provision of defense equipment to Pakistan.”

IPI was also an important issue during the meeting of Mr Asif Ali Zardari President of Pakistan and his Iranian counterpart Mr Mahmoud Ahmadinejad who met in New York. As per report, the two leaders had agreed to speed up the pace to initiate work on pipeline and to set up a Joint Company to raise capital for the US 7.5 billion dollar project.

The two leaders during their meeting focused on the project and stressed the importance of early completion of the over 2700 kilometer long IPI gas pipeline project that would bring in natural gas from the South Pars fields in Iran to Multan in Central Pakistan. The project is aimed at helping the country meet its energy shortages and the growing industrial sector in Pakistan.

The two leaders had also discussed the import of additional 1000 MW of electricity from Iran to meet the energy shortage in the country, particularly in Balochistan and expressed satisfaction over the pace of talks.

The two sides agreed on a meeting of their two foreign ministers on October 9th and 10th besides setting up a committee of 5 senior officials from either side to finalize the project and coordinate activities.

ADIH signs MoU with Shanghai Construction or projects

Abu Dhabi Investment House announced that it has signed a MoU with major Chinese construction firm Shanghai Construction. The signed MoU is designed to establish a 50:50 JV to acquire up to 16 real estate projects across China worth USD 6 billion

The signing ceremony took place at the Renaissance Teda Hotel, Tianjin around the World Economic Forum Annual Meeting for the New Champions.

Current developments include projects in Bahrain and Entertainment City in Qatar and India. The firm will launch USD 10 billion worth Porta Moda a style and design hub concept in GCC India and North Africa.

Mr Rashad Janahi MD and board member of ADIH said that “The signing of this MoU signifies ADIH's commitment to be part of successful projects with major international strategic partners. China is the biggest growing economy in the world and it is essential for us to be part of its development and growth which also fits ADIH strategy. We are glad to have partnered with SCAC a major player in the market where we both will look at implementing successful projects for investors and the local community.”

Mr Gaven Ching Man Ho chairman of SCAC said that “Our partnership with Adih will help implement big ideas into reality. Our expertise in the construction and engineering field and ADIH's expertise in investment and finance sectors combined will be a major force. We are proud to have partnered with ADIH, a reputable and professional investment firm that believes in what it does. We are sure the projects in line will definitely assist in providing adequate and safe premises for the growing population of China.”

Abu Dhabi Investment House an investment firm was founded in 2005 by a group of GCC financial institutions and businessmen.

DWC fourth phase grading work complete

TradeArabia News Service reported that grading work on the fourth phase of Dubai World Central the multi phase urban development centered around the world’s largest airport has been completed.

The work costing AED 46 million will enable contractor access to a crucial component of the project DWC Aviation City. The USD 1.36 billion DWC Aviation City will be home to DWC’s executive jet terminal and the world’s largest MRO centre with many operators ready to start construction on site.

As per report, over 3.739 million cubic meter of earth was moved over 4 months for phase 4. A total of 64.735 million cubic meter of earth has been moved over all four phases covering over 74.39 square kilometers since grading first commenced in January 2005.

Mr Abdulla Al Falasi DWC’s director of marketing and corporate communications said that “With the fourth phase of grading complete we can start to plan the allotment of land for DWC Aviation City tenants. He said that this will enable DWC Aviation City operators to be operational by 2010-11.

The report added that all 4 grading phases were carried out by Dubai based Trident Transport Company. Phase 1 grading work included Dubai Logistics City while phase 2 grading work was spread across areas earmarked for DWC-Al Maktoum International Airport and parts of DWC Residential City in addition to DLC’s Headquarters and Office Park.

DWC’s phase 3 grading covered parceled zones earmarked for a balanced mix of residential, retail and hotels in addition to communal areas reserved for educational, cultural, health and recreational activities as well as mosques, sports and entertainment centers.

Dubai World Central has already commenced phase 5 of the grading works which is expected to be completed by July 2009. This will cover areas adjacent to the first runway. The construction of the passenger terminal is on schedule for completion in mid 2009.

Tanker rates may drop until Asia returns next week

It is reported that the cost of shipping Middle East crude to Asia the world's busiest route for supertankers may drop for a fourth session as public holidays in China curb demand. Markets in China the second largest energy consumer are closed for National Day holidays and won't reopen until October 6th.

The United Arab Emirates, Kuwait, Qatar, Oman and Bahrain bourses are also shut for Eid Al-Fitr. There are holidays in South Korea, Singapore, Indonesia and the Philippines.

Mr Per Mansson MD of shipbroker Nor Ocean Stockholm AB said that “Anything today or tomorrow will probably be down somewhat. The supply of double hulled tankers appears tight for the first few days of November so rates should come up again next week.”

Worldscale points are a percentage of a nominal rate or flat rate for more than 320,000 specific routes. Flat rates for every voyage quoted in US dollars a tonnes are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. As per report, each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch.

According to the Baltic Exchange's calculations, a rate of 145 Worldscale points equates to USD 95,787 in daily rental income after fuel and port costs are paid. Globally, the carriers are making USD 82,258 a day.

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.''

China enforces regulations for excessive power consumption

It is reported that the Government of Inner Mongolia Autonomous Region of China has raised from September of 2008 the fee for industrial consumption of electric power by CNY0.07 per 1 KWH and, at the same time, decided the policy with an aim to regulate the industries to consume excessive volumes of electric power by means of restricting its productions and shrinking these scales.

This decision has clarified the basic policy to adjust the industrial composition in Inner Mongolia, having concentrated on such industries as ferroalloys and silicon carbide which consume excessive volumes of electric power to produce these items. It is understood that, on an opportunity which fee of electric power has been raised to a large extent, Inner Mongolian Government has expressed their positive intention to materialize energy saving and to achieve this duty.

Inner Mongolia Autonomous Region has become the Mecca to produce ferroalloys in China and, when the measures to shrink the production have permeated into Inner Mongolia, this matter will spread over a substantial influence on the market. Inner Mongolia Autonomous Region has shared 17.6% of the whole production of ferroalloys in China and taken the first position. Therefore, Inner Mongolia was one of the districts, having rather positively invited industries to consume excessive volumes of electric power in the past 10 years. Accordingly, new regulations for the industries to consume excessive volumes of electric power are not negligible to put a considerable influence on exports of Chinese ferroalloys, in addition to that on domestic market of China.

It is hard to expect that this basic policy as adopted by the Government of Inner Mongolia Autonomous Region immediately exhibits concrete effects. However, when the measures enforced by the Government of Inner Mongolia Autonomous Region have been based on various policies being implemented by the Central Government of China, representing the programs to achieve target for energy saving, these measures are thought to put an impact on production of ferroalloys in Inner Mongolia as a body blow.

The measures announced and enforced by the Government of Inner Mongolia Aut. Region to achieve the purpose for energy saving are summarized as follows

1. The plan to restrict productions of ferroalloys and silicon carbide is maintained. The excessive quantities stipulated but produced are imposed by the penalty. The industries to consume larger volumes of energy in Hohhot Province, Baotou City and Erdos City have to be reduced their production by 30% in 2009. Other districts have to start to reduce their production by 20%. The Inner Mongolia Autonomous Region endeavors to select in principle the enterprises to produce ferroalloys and silicon carbide. In accordance with the program to reduce these productions as set up at the beginning of 2008, the Inner Mongolia Electric Power Corporation will supply electric power and any excessive supply of electric power is not allowed.

2. The Inner Mongolia Autonomous Region has raised fee of electric power by CNY0.07 per 1 KWH from September of 2008 and, depending on an effect of this fee raise, will consider increasing again the fee. This treatment is expected to restrain a sudden increase of production in this kind of industries. The industries to produce ferroalloys and silicon carbide have been promoted to shift and upgrade its industrial composition to produce higher value added commodities.

3. When it is necessary to cope with the movements of energy demand in July to September quarter of 2008, the productions of ferroalloys and silicon carbide in November to December will be suspended or restricted.

4. In consequence of these adjustments of industrial composition, the scales of capacities to produce ferroalloys and silicon carbide are shrunk, putting a substantial influence on local monetary situation, and the Government of Inner Mongolia Aut. Region will manage these difficulties by means of supplementing financial assistance. Also, the Government of Inner Mongolia Autonomous Region will obtain a support from the Central Government of China and, at the same time, endeavors to be granted with a subsidy.

Akesu to close metallurgic plants with high energy consumption in two years

It is reported that to boost the new type of industrialization and secure a healthy growth of economy, Akesu is abolishing the small metallurgic companies. On September 22nd where local government signed documents of responsibility on shutting down and abolishing the outdated small metallurgic capacities.

Abolishing those capacities is to change development mode of this industry from small and dispersive to scale, environment friendly, and sustainable while boosting the work on energy saving and emission decreasing.

To deal with those small companies, Akesu Area made special rules against the small metallurgic capacities, including ban of the bar production and sale in this area.

Meanwhile, local government decides to demolish the blast furnaces, converters and rolling companies or capacities constructed before 2005 and on the list of capacities to be washed out by the end of 2010; and those after 2005 will be shut down by the end of 2008; and the limited capacities before 2005 must be upgraded in a limited time, and those after 2005 will be closed by the end of 2010.

Tonghua CR silicon steel project to start production in October

It is reported that as a key project during the eleventh "Five-Year" Plan, cold-rolled silicon steel project of Tonghua Iron & Steel Group Co Ltd will be put into operation in October.

As per report, with annual capacity of 400,000 tonnes of non grain oriented silicon steel, the project has adopted advanced technologies and equipments such as RH furnace vacuum treatment, thin slab continuous casting and rolling, pickle line processor and so on. The products can be widely used in electricity, household appliances manufacturing, communication etc.

Tonghua Steel is now the biggest steelmaker in Jilin Province.

Chinese billet and slab export in 8 months of 2008

It is reported that China common billet and slab export to different countries during January to August 2008 total 921,738 tonnes with Ecuador standing at the top.

(In tonnes)

(Sourced from MySteel.net)

Chongqing to build delivery warehouse for aluminum futures

It is reported that Chongqing Municipality is preparing to establish a delivery warehouse for aluminum futures in Chongqing Xipeng Aluminum Industrial Park, where an aluminum processing base is planned.

The director of the industrial park surnamed Mr Liu said "Preparations for the warehouse started two years ago. It is scheduled to be complete by the end of next year. It will require a total investment of CNY 200 million."

He said that "The development of the Chongqing Xipeng Aluminum Industrial Park, which will host the new alumina and aluminum processing facilities of Chinalco's Southwest Aluminum, as well as other aluminum smelters and processors, makes it necessary to build our own warehouse to facilitate the hedging operations of local producers."

Mr Liu added that "The Shanghai Futures Exchange currently has a total of 11 delivery warehouses for aluminum futures around the country; however, none of them are located in the southwestern region. As a result, Chongqing's aluminum producers and processors usually resort to the delivery warehouse in eastern China's Shanghai Municipality."

He said that "In addition, we also plan to open a market for spot trading, with completion scheduled for the end of this year."

PetroChina inks natural gas distribution agreement

China Knowledge reported that PetroChina the country's largest oil and gas producer has signed its first natural gas distribution agreement, in which it will be responsible for selling natural gas distributed through the pipeline from Burma to Yunnan province.

According to a spokesman at Kunming Coal Gas, under the agreement PetroChina's subsidiary PetroChina Kunlun Gas Ltd along with three local companies namely, Kunming Cola Gas Ltd, Yunnan Investment Group and Yunnan Changan Investment Corp will incorporate a joint venture, which is set to provide urban natural gas distribution services to Kunming city.

The spokesman said this move will enable PetroChina to expand into urban gas distribution business and cross-border natural gas pipeline between China and Burma.

ADB to extend USD 200 million credit to China on expressway project

China Knowledge quoted industry sources as saying that Asian Development Bank will provide USD 200 million loan to China on an expressway construction project in South China

According to the report, the 64 kilometer expressway which will adopt traffic safety strategy and involves total investment of approximately USD 745 million is between Wuding county and Kunming city in Yunnan province. Construction of the project is expected to be competed over the next four years.

Sources said, Yunnan provincial government ministry of Communications and domestic lenders will also participate in the project, which will be complementary to other transport corridors built linking China with its neighbors in the Greater Mekong Sub-region to boost trade, tourism and regional integration.

It is the first time for the multilateral lender to include a specific road loan program for China on local road safety issues.

ArcelorMittal Temirtau to cuts output by 39% for 2 weeks

Platts reported that ArcelorMittal Temirtau is cutting hot steel output over the next two weeks. The reason for the lower output is due to a local CIS related market issues.

A company spokesman told Platts that "For the next two weeks, we are planning a reduction of hot metal production from 11,500 tonnes per day to 7,000 tonnes per day,”

The spokesman emphasized that the two weeks of reduced output would have no impact on ArcelorMittal's plans to double capacity at the Temirtau steel plant. He said that "There is no impact and we are fully committed to our expansion plan. The production cutback is temporary and will only last a couple of weeks. We are fully committed to Kazakhstan."

New air separation plant commissioned at NLMK Lipetsk

A new air separation plant has been commissioned at NLMK’s main production site in Lipetsk. It will ensure the failsafe supply of air separation products to the steelmaking facilities through the gradual decommissioning of depreciated lines.

The plant will produce up to 34,000 cubic meter per hour of pure oxygen as well as nitrogen, argon, neon helium mix and krypton-xenon concentrate.

The German Linde-KCA-Dresden GmbH-manufactured equipment allows the extraction of all components present in the air to produce high quality products. The extraction ratio of the new plant is 17% higher than that of the existing plants. The complex manufacturing of air separation products will ensure more that costs are reduced by up to four times.

An improved control system will ensure the prompt response to any process changes and enhance the line’s reliability.

The project, which is worth over RUB 700 million, has been implemented as part of Phase 2 of NLMK’s Technical Upgrade Program for 2007-2011.

Phase 2 of the Technical Upgrade Program aims to increase steelmaking output from 9 million tonnes to 12.4 million tonnes per year and finished flats output from 5 million tonnes to 9.5 million tonnes per year, as well as to achieve 100% self sufficiency in basic raw materials. Total CAPEX for energy sector development at NLMK’s main production site in Lipetsk will reach USD 0.3 billion. Total CAPEX for all projects included in Phase 2 of the Technical Upgrade Program up to 2011 will amount to over USD 4 billion.

Russpetsstal affiliates may buy Pilsen Steel from OMZ

Interfax reported that companies close to Russpetsstal, a state owned steel holding, have begun preparations for the possible purchase of Czech steelmaker Pilsen Steel from United Heavy Machinery.

Special steel producers Skoda Steel and Skoda Hute were merged into Pilsen Steel in February 2007. OMZ acquired the merged steel producers along with Skoda JS from Skoda Holding in 2004 for more than USD 50 million in order to strengthen its special steel branch and expand orders in Europe. OMZ rebranded Pilsen Steel in spring 2007.

Bummash, citing a board decision made recently reported that on November 5 its shareholders will be asked to consider guarantees of EUR 73.5 million for United Pilsen SA to OMZ subsidiaries OMZ B.V and Middle Estates in a deal involving purchase sale of shares.

OMZ BV and Middle Estate earlier emerged as the sellers of 100% of Pilsen Steel and Pilsen Estate. OMZ shareholders on September 1 approved guarantees of up to 60 million euros for OMZ BV and Middle Estate under a possible deal to sell the Czech firms. More than 93% of Bummash shares were acquired in late June by United Industrial & Investment Company, the sole shareholder of which, according to the SPARK database, is United Group SA of Luxembourg. Bummash board director Mr Igor Shamis told Interfax that United Pilsen SA belongs to United Group.

Mr Shamis previously chaired the board of directors of Krasny Oktyabr, a Volgograd-based unit of Russpetsstal. Companies controlled by OPIK hold minority stakes in Krasny Oktyabr,

Mr Shamis said the plan is to acquire new equipment for a production development program. In mid July he had said Bummash planned to invest about RUB 1.3 billion, including RUB 880 million in a metallurgical facility and the remainder in engineering. Bummash's new owners over the next three years plan to set up a mini plant to produce cord, wire rods and high-strength cable wire, with capacity of up to 1 million tonnes per year, as well as manufacture up to 20,000 tonnes of forgings for components of gas turbines and chemical equipment.

A source at OMZ made a similar comment. "The deal has not been closed yet and the final selection of a buyer has not been made. We are continuing negotiations with potential buyers of Pilsen Steel.”

According to Kommersant newspaper, there are nine companies vying for Pilsen Steel and they are mainly foreign steel producers and investment funds and besides Mechel, the only other Russian company mentioned as a possible buyer is an affiliate of the Russpetsstal holding.

Russia and Ukraine to switch to market gas prices in next 3 years

RIA Novosti cited Ms Yulia Tymoshenko PM of Ukraine's as saying that Ukraine and Russia will switch to a new pricing scheme for Russian gas based on European market prices in the next three years.

Ms Yulia Tymoshenko told her Russian counterpart Mr Vladimir Putin during talks at his residence of Novo-Ogaryovo outside Moscow that "In the next three years we will move over to usual market prices."

Ukraine currently pays USD 179.5 per 1,000 cubic meters for gas imported from Russia or via Russian territory. Kiev hopes that the gas price will not exceed USD 300 in 2009, while the Ukrainian budget for next year is based on a price of USD 250.

However, Mr Alexei Miller CEO of Gazprom who is currently holding talks with Central Asian gas producers does not rule out hiking the price to USD 400 from next year. Gazprom's gas prices to Europe this October exceeded USD 500 per 1,000 cubic meters.

Under the agreement, the parties will drop any gas intermediaries and switch to direct relations involving Russia's state run Gazprom and Ukraine's national oil and gas company Naftogaz from January 1st 2009. Furthermore, Naftogaz will receive the right to re-export gas to the European Union jointly with Gazprom.

Novorossiysk Commercial Sea Port mulls share buyback

Interfax cited Mr Roman Zinovyev the company's vice president for corporate financing and investor relations as saying that Russia's Novorossiysk Commercial Sea Port is considering the possibility of buying its shares back from the market.

He said that "We are discussing internally and considering the possibility of supporting our shareholders by buying back shares, but we want to do this on market terms."

Mr Viktor Kayashev NCSP vice president of strategy said that "Under Russian legislation, we must make an offer to all market participants, which wouldn't be as effective as it is in global practices, while the use of offshore companies is impermissible since it runs counter to our status as a state company."

He said that "At present, we are drawing up options with our consultants that will fall under Russian legislation and work in favor of our shareholders."

Gazprom agrees on Siberian asset swap with E ON

RIA Novosti reported that Russia's Gazprom and Germany's E ON AG signed an asset swap agreement recently involving northwest Siberia's Yuzhno-Russkoye oil and gas field.

According to the report, under the deal signed in St Petersburg in the presence of Ms Angela Merkel German Chancellor and Dmitry Medvedev president of Russia, E.ON, the world's largest utility will receive 25% minus one share in Gazprom subsidiary Severneftegazprom, while the Russian energy giant will get a 49% stake in E.ON's ZAO Gerosgaz, which holds a 2.93% interest in Gazprom.

Severneftegazprom holds a license for the Yuzhno-Russkoye oil and gas deposit, which has recoverable reserves of 600 billion cubic meters of gas.

The transfer would reduce E.ON's stake in Gazprom to 3.5% from 6.43%. The asset swap is to be completed in the second half of 2009.

Mr Alexei Miller CEO of Gazprom said the deal shows that the companies are strategic, long term partners. He said that "We are pleased to welcome E.ON into the Yuzhno-Russkoye project; it will become a third partner and will be able to engage in gas production in Russia."

Exxon to boost gas output under Sakhalin I

RIA Novosti reported that Exxon Neftegas Limited, a subsidiary of US oil major Exxon and operator of the Sakhalin-I oil and gas project off Russia's Pacific Coast plans to boost natural gas output.

Mr James Taylor CEO of Exxon Neftegas said the company plans to raise natural gas production at the Chaivo deposit, and that this will require the drilling of additional gas wells and the expansion of existing coastal and offshore facilities. He said that the project would help increase gas sales on the domestic and international markets.

Mr Taylor said since the Sakhalin-I project was launched three years ago, Exxon Neftegas Limited has transferred USD 1.1 billion to Russia's budget in the form of royalties and a share of oil and gas output, and USD 211 million to the budget of the Sakhalin Region.

He said that Exxon Neftegas Limited has been able in the past three years to pay for all expenses out of its revenues and started to generate profit from June 2008.

Mr Taylor said overall, the Russian budget will receive a total of more than USD 50 billion in the form of taxes, royalties and the state share in oil and gas output over the project's lifespan.

Feasibility study on ESPO branch to China to be completed soon

Interfax cited Mr Nikolai Tokarev CEO of Transneft as saying that a feasibility study on a branch of the East Siberia-Pacific Ocean oil pipeline to China has been prepared and will now be reviewed by government experts.

He said that "The government review will be completed in the near future. We have informed our Chinese partners about this."

Mr Tokarev said Chinese officials have already prepared their feasibility study for the 960-kilometer pipeline section running from the Russian-Chinese border to Daqing. He said that China spent USD 37 million to finance the preparation of a feasibility study for the Russian section from Skovorodino.

Talakan oil enters ESPO

Interfax cited Mr Sergei Shmatko Energy Minister Russia as saying that the first flows of oil from the Talakan field, owned by Surgutneftegaz have reached the East Siberia Pacific Ocean oil pipeline.

He said that "A new oil-bearing province has started operating in Russia. Oil has been arriving from East Siberia's Talakan field for two days now."

Surgutneftegaz did not comment to Interfax on the energy minister's statement, noting it was waiting for the official launch of the ESPO's first phase in a reverse mode on October 4. The company said in late July that the Talakan field was entirely ready for commercial oil extraction and pumping to the Transneft pipeline system.

Earlier reports said Transneft on September 22 filled the last stretch of the ESPO pipeline between Kirensk and Talakan with technical oil.

East Siberian oil will run through the ESPO to the Angarsk petrochemical plant. Oil from the Verkhnechonsk and Talakan field will be the first to fill the ESPO. ESPO is expected to handle about 200,000 tonnes of hydrocarbons before the end of the year.

The ESPO pipeline is being built to transport oil to the prospective Asia-Pacific market. The first phase of the pipeline was to be launched in October-December 2008. But the date was put off until the4th quarter of 2009. The Federal Tariffs Service set the rate for Transneft on the pipeline's reverse stretch at RUB 981.64 per tonne.

Avtovaz and Renault ink license agreement

Interfax reported that Russian carmaker Avtovaz and Renault signed an agreement in Paris on October 1st on the acquisition by Avtovaz of licenses from Renault for the production and sale of the French company's automobiles.

According to the report, the agreement concerns know how, the rights for the production and assembly of two modified automobiles as well as the right to produce, assemble and distribute the R90 and F90.

Avtovaz shareholders approved the agreement on September 5th. The license is valued at EUR 120 million for the automobiles and EUR 100 million for the automobile platforms. In addition, the Russian Technologies state corporation, Troika Dialog, Renault and Avtovaz signed a shareholders agreement that envisions endorsed actions by the shareholders when passing decisions.

Russia to open 40 new metro stations by 2015

According to Mr Igor Lewitin during the joint meeting of the government and Moscow authorities, by 2015 Moscow metro will open more than 40 new stations. It was announced by the Russian minister of transport.

He said that we will build 79 kilometer of new lines and 43 stations. More than 2.5 m people in Moscow do not have an access to the metro, and this is about 24% of all the city's citizens.

Not enough investment in Russian transport sector

Mr Andrei Nedosekov deputy Transportation Minister of Russia told a roundtable meeting during the 3rd Far Eastern International Economic Forum in Khabarovsk that Russia's demand for private investment has not been met.

Mr Andrei Nedosekov cited expert data that put the annual demand for private investment at RUB 200 billion to RUB 400 billion. He said that the Transportation Ministry was poised to use proven mechanisms to draw private capital to the development of transport infrastructure.

Mr Nedosekov said that large contributions were to be made to the Far East, as most of the ministry's long term plans were linked to the region.

According to Mr Sergei Shishkaryov State Duma Deputy, considerable investment will be needed to implement transport infrastructure projects, including the completion of the Eastern Siberia Pacific Ocean Pipeline, expansion of the Baikal-Amur Mainline capacity, airport and port development, and upgrading of the river and sea fleet RZD-Partner reports.

Urals Energy shares fall on venture talk

It is reported that Urals Energy fell the most since listing in 2005 after the oil explorer said it was considering different options for the Taas-Yuriakh asset in Siberia.

Urals said in a statement the company fell 8.5 pence or 23% to 28.5 pence in London recently, the biggest decline since listing its shares in August 2005. No agreement has been reached with any company, and there can be no assurance that any such agreement will be reached.

Kommersant reported that Royal Dutch Shell was in talks to form a joint venture with Urals Energy and buy half of the Taas-Yuriakh oil production company, which develops the Sredne-Botuobinskoye field in eastern Siberia. Spokespeople at Shell and Urals declined to comment.

Mr Artyom Konchin and Mr Ilya Balabanovsky analysts at UniCredit wrote in a report that "Despite the potential positive development, we continue to be cautious on Urals Energy because of its short term debt of USD 624 million, which the company has to refinance. It is a challenging task given the current loan market conditions.

Urals said Urals' debt as of September 30th comprised two loans from Sberbank. The largest is a one year, USD 500 million loans with a 14% interest rate which expires in November.

TNK-BP Russian managers withdraw lawsuit against CEO

It is reported that a group of Russian managers at TNK-BP recently withdrew a lawsuit against Mr Robert Dudley CEO of TNK-BP that accused him of violating labor rights.

Mr Sergei Akhundzyanov a lawyer of Russia said "Since TNK-BP's shareholders have decided to have Mr Robert Dudley step down on Dec. 1st my clients withdrew the complaint being considered by Moscow's Presnensky District Court. He added that TNK-BP and its Russian managers had amicably settled their differences out of court.”

In July, a group of employees accused Dudley of running the joint venture on an invalid contract and discriminating against locally hired staff in favor of foreign workers. At the time, Mr Dudley called the suit a cynical exercise" to step up attacks against him by AAR a consortium of Russian billionaires who own half of the 50 to 50 JV with BP.

Yieh Hsing to cut stainless steel wire rod prices

One of main wire rod producers in Taiwan, Yieh Hsing Enterprise Co Ltd, has announced to decrease stainless steel wire rod prices by NTW 4,000 per tonne.

Yieh Hsing expects to attract more buyers and gain more sales after prices reducing.

Yieh Hsing will also trim its carbon steel wire rod prices by NTW 2,000 per tonne in an effort to reduce current stocks. However, the offers will be different depending on order quantities.

As per report, Walsin Lihwa Corp is also following suit.

(Sourced from Yieh.com)

Norilsk Nickel H1 net profit down by 33% YoY

Norilsk Nickel has posted net profit of USD 2.68 billion in the first half of 2008 down by 335 YoY as against USD 4.02 billion a year ago.

First half net profit was above the average USD 2.63 billion forecast by seven analysts polled by Reuters.

Norilsk said that first half revenues rose to USD 8.31 billion from a restated USD 7.89 billion a year ago, beating the analyst forecast of USD 8.12 billion.

Republic Special Metals to break ground for plant at Youngstown

It is reported that Republic Special Metals Inc hopes to break ground as early as this month on a new specialty steel manufacturing plant near Youngstown.

The new plant will cost about USD 64 million and employ about 60 people. Construction should take a year to a year and a half.

Mr Michael Owens VP sales and marketing said that the North Jackson plant will supply products for the aerospace industry.

The company operates a facility in Canton formerly owned by Republic Engineered Steel.

Jinchuan Group reports new copper nickel deposit discovery

China Knowledge reported that Jinchuan Group Limited, the largest integrated non ferrous metallurgical and chemical engineering enterprise in Asia, has found a new copper nickel deposit in Jiuquan city.

As per report, the proven deposit will largely increase the country's output of copper and nickel, and the preliminary exploration work has started.

Jinchuan will invest CNY 900 million initially in the exploration and mining facilities for the copper nickel deposit. Upon the completion of the first phase, it will have a daily processing capacity of 3,000 tonnes of ore.

Currently, Jinchuan Group has an annual production capacity of 130,000 tonnes of nickel, 200,000 tonnes of copper, 6,000 tonnes of cobalt, 8,000 kilograms of platinum group metals and 1200,000 tonnes of chemical products.

Stainless steel fasteners for towers in SA

Cramer Media reported that coating developer and fastener supplier Corrosion Resistant Fasteners is currently in negotiations with a telecommunications tower manufacturer to supply the company with CoastalCote fasteners for new towers being built on the South African coastline.

The CoastalCote fastener coating has a higher resistance to corrosion than any other previously known coating and narrows the gap between existing coatings, such as hot tip galvanized coatings, electro zinc coatings and stainless steel fasteners.

Mr Verne Hartman director of Corrosion Resistant Fasteners said that CoastalCote fasteners are the newest addition to the company’s product line and have proven successful under stringent salt spray testing conditions conducted by the South African Bureau of Standards.

He added that "The CoastalCote product achieved a new world record for corrosion resistance, lasting 5,700 hours in a salt spray test."

CoastalCote is currently being used by a company that conducts maintenance on the Vodacom towers. Hartman says the use of CoastalCote offers a number of advantages, including protecting the inside of the nut from rusting, which, in turn, leads to reduced maintenance and savings.

Corrosion is one of the key challenges faced by the construction and engineering, and the mining industries, especially in coastal areas. Until now, stainless steel fasteners have been used in certain applications where existing coatings were not able to provide sufficient corrosion resistance.

Apella commences Vanadium Titanium exploration at Lac Dore North

Apella Resources Inc announced that it has commenced and is currently undertaking its fall 2008 field exploration program on its 100% owned Lac Dore North Vanadium Titanium Iron Zone.

Apella's field crew has cleared off several hundred meters of magnetite bearing mineralization at surface for channel sampling. The mineralization exposed to date appears to have striking similarities to that which surfaces at the adjoining 102 million tonne and GBP 5.5 billion Lac Dore Vanadium Titanium Iron Deposit which Apella staked in August 2007.

So far more than 35 one meter long channel samples have been sawn across various areas of the new surfacing mineralization. High pressure washing equipment and mechanical devices are being utilized to clear and clean the mineralization for sampling. Due to the significance of the mineralization that has been exposed so far by the field crew, it is now considering the merits of immediately taking out a small bulk sample from the surface mineralization for testing.

This specific block of Apella's Lac Dore claims presently being explored, is being identified as the Lac Dore North Zone and encompasses only 18 claims of Apella's overall Lac Dore assemblage. This area covers some 300 square hectares and appears to have a considerable south to north strike length of approximately 2.6 kilometers. The newly exposed mineralization is compelling and there is a possibility that Apella could be in the process of delineating a new Lac Dore ore zone on the Lac Dore North.

Iron ore price negotiations - Prices may rise less than forecast

Bloomberg quoted Merrill Lynch as saying that iron ore prices may rise less than forecast next year as steel mills reduce prices on faltering demand.

Analysts led by Ms Vicky Binns in a report said that Australian producers, including Rio Tinto Group and BHP Billiton Ltd, the second and third biggest, may win a 10% jump in contract prices down from a previous estimate of 15%. She said that Cia Vale do Rio Doce, the No 1 may get not get an increase next year assuming it wins a planned 12% raise.

Ms Binns said a slowdown in economic growth globally has pared steel demand from builders and producers of cars and appliances, forcing mills to cut prices. Global steel production may decline, reducing demand for iron ore. She said that “In recent weeks we have seen the first price cut announcements among steel mills in China and abroad, which is likely to lead to production cuts, signaling a weaker period for iron ore demand growth.”

The price of iron ore for immediate delivery in China has fallen to USD 111 per tonne down from USD 198 per tonne in February. Much of this decline comes from a drop in the cost of freight, she sai