Danieli Corus to build a BF for SAIL RSP

It is reported that a consortium consisting of Danieli Corus BV and TATA Projects Ltd had been awarded an order to design and build a fifth steel blast furnace at the Steel Authority of India Ltd's Rourkela Steel Plant in northeast India.

The contract price is not disclosed but the new blast furnace is expected to double the capacity of the existing four furnaces, to produce about 4 million tonnes of steel a year from the current 2 million tonnes a year.

Mr Gert Jan Apeldoorn director of marketing and sales at Danieli Corus said that the project is part of SAIL's strategy to increase the company's steel output by 85% within five years. The blast furnace should be operational in two and half years or 30 months.

Mr Apeldoom said that the consortium plans to execute iron and steel projects on a turnkey basis. He added that Danieli Corus BV would only be responsible for the blast furnace. The contract to build the steelworks to make finished steel products will be awarded to another service provider.

Indian domestic steel price for flat decline further

The rate of decline was somewhat arrested. There was no change in Long product price index but flat showed decline of 36 points. Overall price index fell by 17 points:

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

Long products

Flat products

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

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JIL launches a new pipe mill to tap demand in ER

It is reported that Jindal India Limited has recently commissioned a new state of the art medium diameter HF ERW pipe mill at its Jangalpur Works at Howrah in West Bengal.

The 240,000 tonnes per annum capacity pipe mill is based on latest solid state HF welding with seam annealing technology and is designed t produce 6 5/8” (168.3mm) to 20” (508mm) diameter pipes in wall thickness of 0.125” (3.2mm) to 0.562” (14.3mm) in length range of 5 meters to 18 meters. The mill can produce pipes conforming to ASTM, BS, DIN, JIS, BIS and API 5l specifications with beveled or plain ends with rust coating.

JIL intends to play a crucial role in the numerous projects coming up in the infrastructure space and the pipes produced from this company will be used for building cross-country pipe lines, particularly in the Eastern Region. In the mineral rich states of Eastern India namely Orissa, Jharkhand, West Bengal, numerous large projects in ferrous, non ferrous industries along with Mega Power Plants are coming up. These projects will need huge quantities of pipes in 16, 18 and 20 diameter range and JIL hope to provide this essential input to them.

Another major infrastructure today is big housing projects, developing new major townships etc. Pipes from JIL will provide big support for bringing water to the site from sources and then distribution network to the houses. Pipes as such will be used during construction for scaffolding pipes are also used for piling work for foundations for multistoried buildings, flyovers and bridges etc.

Kohinoor Steel drops Jharkhand expansion plan - Report

BS reported that Kohinoor Steel Ltd, a major secondary steel plant in Jharkhand, said it was dropping plans to further expand capacity in the state after alleging here that it was getting no assistance from the Jharkhand state government despite expanding capacity in the state and providing employment.

Kohinoor Steel was recently 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.

Long products price keep declining at Mandi and Kanpur

Kolkata

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Mandi

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Kanpur

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Bangalore

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

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PSL commission new pipe mill facility in USA

PSL Limited has informed BSE that the new Pipe Manufacturing Facility set up by Company's Subsidiary namely PSL North America LLC at Port Bienville Industrial Park in the State of Mississippi in USA has been successfully commissioned consequent upon Rolling of Unit's First Pipe.

The 100 Million USD Facility on 156 acres of land is strategically located along the Gulf Coast just outside the Bay St Louis.

With the abovementioned development PSL NA has become the First and only Company amongst the new generation Two Step Mills to commence production in 2008. As it can now commence execution of over USD 400 million orders for supply of Pipes and associated coating already acquire by the Company in May 2008 it will be able to achieve and maintain its scheduled compliance.
Mr Ashok Punj MD of PSL Limited said “In commissioning their mill on schedule, PSL NA has effectively seized the First Mover Advantage by becoming the only one among the new generation 2 step mills to commence production in Calendar Year 2008. The other mills are not expected to be in production till 2009.”

He added that “PSL North America can now commence execution of the USD 400 million order received by it in May 2008 in order to achieve and maintain its scheduled compliance.”

Scrap and pencil ingot prices decline at some locations

The prices for input material showed overall

Melting scrap
80:20
HMS

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Pencil ingot

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

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Flat products price decline continues in India

Mumbai

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Bangalore

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Chennai

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

Kanpur

Change is on October 6th as compared to October 3rd
Change is in INR per tonne

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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, who will send you an invoice of the report.

Essar Steel consolidating presence in North America

It is reported that the Canadian subsidiary of Essar Steel Holdings Ltd is expanding output by one fourth to meet expected demand, building a facility to generate its own power and putting in place additional environmental safeguards, as it seeks to cement its place in the North American market.

The report quoted Mr Sandeep Dixit VP finance at the Sault Ste Marie said that the unit, Essar Steel Algoma Inc is targeting an increase in production to 4 million tonnes by March 31st 2009 from 3.2 million tonne now, after budgeting CAD 170 million for capital expenditure.

It is investing CAD 135 million in a co generation plant to produce power using waste gas from the steel plant. The company is investing CAD 135 million to open by January a so called co generation plant to produce power using waste gas from the steel plant and cut by half its dependence on electricity from the provincial power grid.

Part of the money will come from its budget for capital projects. And, it is spending CAD 90 million to put in place systems to reduce air emissions from the steel plant.

INDSPI - SENSEX for steel prices in India

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.

Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media's most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

In order to provide an index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them ILPPI, IFPPI and INDSPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

ILPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas IFPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in the regional markets.

The pricing input is from www.steelprices-india.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.

These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.

To know more, please visit
http://steelprices-india.com/spi_services/spi.html

NMDC update on expansion plans

It is reported that NMDC expects to increase iron ore capacity to 50 million tonnes from 30 million tonnes at present. It is likely to spend INR 19,869 crore in the next 6 years to achieve this.

Mr Rana Som chairman of NMDC said that “All investments will be funded through internal generations and we will not raise any debt for it.”

He added that the iron ore major would also set up a 3 million tonnes steel plant in Chhattisgarh at an expense of INR 14,000 crore under this expansion plan. Mr Som said that “We are looking at using HiSmelt technology developed by HiSmelt Corporation of the Rio Tinto Group and talks are at an advanced stage.” The technological expenses involved are estimated at INR 1,400 crore for a 0.8 million tonnes per annum unit.

Additionally NMDC has forged a JV with Chhattisgarh Mineral Development Corporation for iron ore blocks in the state. Mr Som said that “NMDC is in the process of setting up a 1.2 million tonnes pellet plant in Donimalai in Karnataka and a 2 million tonnes pellet plant in Bacheli with INR 600 crore and INR 750 crore respectively."

Among other investments NMDC plans to put INR 80 crore into subsidiary J&K Mineral Development Corporation Limited for mining of magnesite and INR 350 crore into its limestone project in Arki, Himachal Pradesh.

Update on IPPs in Orissa

BS reported that a revised internal assessment by the Orissa government has estimated an investment of over INR 254,000 crore from 21 Independent Power Producers including 13 which signed MoUs with the state government 2 years back, envisaging a combined capacity of 59,980 MW of power during the 11th and 12th Plan periods.

The revised figure is mostly on apprehension of delays that might result in escalation of costs for the proposed IPPs primarily due to lack of land, coal, water and other infrastructural problems. Originally the estimated investment of these IPPs was pegged at around INR 1.67 million crore.

As per report, 8 newly proposed IPPs awaiting the nod of the high level clearance authority of the state government are also readjusting their figures taking into view the hurdles faced by the 13 that have already signed MoUs. The 8 new proposals account for 13,100 MW generation capacity with an investment of INR 54,791 crore. There are also 5 entries from the non conventional and renewable sector proposing an investment of INR 468.28 crore for generation of 65 MW of green power.

Senior energy department officials said that conservative estimates are that under no condition will the state be able to produce more than 4000 MW of power by 2011-12, though an ambitious target of 16,000 MW was set for this period. The state demand by 2011-12 is expected to reach about 4125 MW.

An official said that “Most of the IPPs are yet to apply for open access system with Power Grid for evacuation of power to the western and northern parts of India. Beneficiaries are also yet to be identified. These IPPs have also not completed their financial closures.”

The biggest hurdle before the 13 IPPs is arranging coal for starting commercial operations. While some have been allotted blocks in fragments, many are awaiting coal linkage. It is estimated that mining and coal extraction in each block will take up a minimum of five years, thereby delaying project prospects.

According to the assessment, the 13 MoU signing IPPs propose an aggregating generation capacity of 15,590 MW entailing an investment of INR 63,306 crore. This apart, 7 new proposals that have been recommended by the single window authority to HLCA envisage 5950 MW power generation at an investment of INR 25,606 crore. Two proposals approved by the single window authority of 25 MW takes up an investment of INR 205 crore.

Directory of Construction Companies in India

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

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

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

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

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

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

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

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

Indian Shipping Summit 2008 concludes with suggestions

Exim News reported that the critical need for developing maritime and connecting infrastructure was stressed by leading speakers at the concluding session of India Shipping Summit 2008.

Mr Vikas Khan chairman & CEO of Emirates Shipping Line said that infrastructure development had been a failure in India. He called for a change in the mindset, especially in the government, to bring about an improvement in the situation. Mr Khan said that “We shouldn’t be talking about just 2 or 3 hub ports. There should be 20 such ports on both coasts for the trade to choose from.”

Emphasizing the need to professionalize and decentralize, Mr Khan wanted a free hand to be given to the private sector to put money in the business.

Mr Krishna Kotak MD of JM Baxi & Co said that “Developing connectivity to ports and building related facilities is a major challenge. It is easy to build terminals and berths, but the critical part is establishing connectivity and facilities such as CFSE. Every kilometer of connectivity costs INR 6 crore to INR 8 crore.”

Mr Kotak called for a policy framework that ensured profitability of the business, a fair and balanced concession agreement and emphasis on basic infrastructure and seamless solutions. He also stressed the need for Major and non major ports to have a spirit of partnership.

Mr Sandeep Mehta CEO of Mundra Port & SEZ Limited said that the multi purpose, multifaceted facility of today came about because of the long term vision of its promoter, who implemented a policy of creating world class infrastructure, including road, rail and even air connectivity, to cater to future demand.

Mr Arvind Bhatnagar CEO of Gateway Terminals India said that “We need out of the box thinking to develop maritime infrastructure in the country. Otherwise, the demand-supply gap will remain.” Formulation of new PPP models, availability of loans at special rates, tax benefits for infrastructure developers and reduced Customs duty on equipment imports were some of the initiatives or incentives that could be considered.

Speaking on behalf of the International Maritime Organisation, Mr JO Espinoza Ferrey Head of Policy and Planning identified the responsibility of the shipping industry to raise its own profile and sharpen its public image. He said that “The public has a view of shipping, if it has one at all which is all about a dirty, accident prone industry. Raising and amending this profile will have the knock on effect of boosting education and skills training issues and help engage the right people in governments all over the world.”

Mr Vijay Kumar director of Bharati Shipyard while speaking on behalf of shipyards in general he said that "We have to decide if we want shipbuilding. Do we have a vision for India to develop as a shipbuilding country? If so, we need a long term holistic policy. Once we have it, we need to implement it properly. We need to educate the people in Delhi about what shipbuilding is. It was only in 2002 that the private sector was given any kind of support from the government. There are huge investment opportunities out there that will give massive returns in a very short number of years. But official support will be crucial to get these off the ground. The government can earn back what it gives, plus colossal profits, within less than 20 years. This industry has lots to offer. It’s time everyone saw that.”

Mr Ray Stewart CEO of Pipavav Shipyard also called for the government to give incentives to ship owners ordering from domestic shipyards and strongly endorsed the view of Mr Kumar and others, adding “The need is for a coordinated maritime policy covering ports, shipyards, equipment suppliers, everything.”

Later the fourth annual India Shipping Summit concluded with over 500 participants from 21 countries hearing positive calls for action and encouraging predictions for the nation’s maritime development. The summit held at the Grand Hyatt addressed pivotal themes with both domestic and global perspectives. In focus were India’s future as a global maritime player, finance to help it enter a new era, infrastructure opportunities and the offshore oil and gas markets. Other topics included shipbuilding in India, maritime technology and the changing regulatory arena, energy transportation and the industry’s crewing crisis.

Exim Bank clears funds for TATA power project in Zambia

ET reported that Exim Bank of India has cleared an INR 235 crore (USD 50 million) concessional loan for the INR 1,000 crore (USD 230 million) Zambia power project for which TATA Africa Holdings has been selected as the private sector partner.

The African arm of the TATA Group would be working in partnership with Zambia Electric Supply Corporation for a power generation capacity of 120 mw and a 3,450 kilometer transmission line.

Government sources said that the development was discussed during the recent visit of Zambian minister for commerce, trade and industry Mr Felix C Mutati to India. Mr Mutati met commerce & industry minister Kamal Nath and representatives of the external affairs ministry.

Sources added that Zesco and TATA Africa Holdings have issued an international tender for hiring contractors to build the USD 230 million power project, it is understood. The project is located at the Itezhi-Tezhi region on the Kafue River. A special purpose vehicle called Itezhi-Tezhi Power Corporation has been launched to handle construction of the 120 MW project.

Sources said that TATA Africa Holdings, through which the TATA Group is handling this project, is based in South Africa. The contract is essentially for upgrading an existing project and adding new capacity of 120 mw.

INR 6 crore approved for National Highways Accident Relief Service Scheme

It is reported that Dr Thiru TR Baalu union minister of shipping road transport and highways has approved a sum of INR 58.86 million for the purchase of 25 numbers of 10 tonne cranes under National Highways Accident Relief Service Scheme during the current financial year. These 25 cranes will be made available to the transport departments and police departments of various states across the country.

Mr Balu said that Transport Department of the State of Tamil Nadu would be provided with five such cranes while the Directorate General of Police of Karnataka is being given three cranes. The States of Chattisgarh, Madhya Pradesh, Maharashtra, Manipur, Meghayala, Orissa, Punjab and West Bengal are being provided with two cranes each. Andaman and Nicobar Islands is also being provided with one such crane.

The National Highways Accident Relief Service Scheme is operational since 2000-01. Under this scheme, ambulances and cranes are being provided to Transport/Police Departments of the States and Union Territories and NGOs recommended by States and Union Territories for evacuating the accident victims to the nearest hospitals and clearing the accident site.

So far, 437 ambulances and 252 cranes have been provided to different States and Union Territories till 2007-08.

REC pays 30% dividend for the 2007-08

It is reported that Mr P Uma Shankar CMD of Rural Electrification Corporation presented a dividend cheque for INR 210.76 crore to Mr Sushilkumar Shinde union minister of power for the year 2007-08 in a brief ceremony held in the Ministry of Power, Government of India on October 3rd 2008.

After making necessary appropriations towards statutory reserves, the Corporation paid dividend at the rate of 30% with a total dividend pay out of INR 257.59 crore for the year 2007-08 against INR 177 crore for the previous year.

REC being a premier financial institution in the Power Sector has come a long way by expanding its mandate of financing to power generation, transmission and distribution projects, without any territorial or other restrictions. The Company has recorded exponential growth over the years, by sanctioning cumulatively INR 179,526 crore and disbursing INR 75,243 crore up to March 31st 2008. The net worth of the Company as on March 31st 2008 was INR 5367.71 crore.

MSRDC plans 7 flyovers in Thane

Project Today reported that Maharashtra State Roads Development Corporation is planning to build 7 flyovers in Thane at an investment of INR 213 crore as part of a makeover plan for the city adjoining Mumbai.

As per report, the longest of these flyovers will be at the Kapurbawadi Junction in Thane city which will be 3.8 kilometer long with a twin carriageway of four lanes each and costing INR 125 crore. The Patlipada and Waghbill flyovers will be the shortest costing INR 9 crore each. MSRDC has appointed civil engineering firm, SN Bhobe & Associates as the consultant for the project.

The tendering process for all the flyovers will be taken up immediately and work on them will start by January 2009. All the flyovers are expected to be completed within 18 months and are will ease the massive traffic congestion in and around Thane city and the connecting junctions between Mumbai-Thane at Dahisar checkpost, Thane-Ghodbunder and Thane-Bhiwandi.

Indian Railways remains weak link for projects

It is reported that Project owners in India wary of logistics problems anyway are finding that Indian Railways is actually the weakest link in their business.

Falling way below their expectations the Railways is turning out to be a major hindrance in the way of industrial expansion. As per report, the entire supply chain can be disrupted due to even a small slip up on the part of the Railways and may even result in drastically pulling down project profitability.

In fact the problem has become so acute that project owners are even considering acquiring railway assets like wagons, locomotives and tracks through the public private partnership mechanism of the Railways. On the flip side however overall capacity utilization may be affected if these captive assets are not used optimally.

Indian shipping industry needs integrated port development

Considering various aspects of India’s maritime industry like ports, shipping and logistics, though each one of them is big in itself, none of the sectors can survive in isolation. The private industry players are busy re jigging their business with business of ports; thus changing the dynamics at the ports itself. The cumulative result of all these changes is a new trend Integrated Port Development.

CNBC-TV18 found out that a logistics player is setting up a Container Freight Station at ports and a private container terminal player joining hands with a major port a PSU aligning with a private port authority and even an Indian container rail player joining hands with international Container Terminal Player.

CNBC – TV 18 report highlighted following points

1. Time has come for Indian ports to think long term to create and sustain competitive advantage by increasing the ability to respond to users’ needs. This can happen only through quality improvement of port services. But for government owned major ports, this proves to be a problem for there are the twin issues of land and labor ready to axe any kind of change for the better.

2. How can they circumvent these problems? The only way out is to share space with private players and get every chain in the Maritime Trade to link up- and that is now happening.

3. These changes are slowly leading to the emergence of what is known as Integrated Port Development. Integrated Port Development comprises creating port facilities, setting up industrial zones and developing logistic facilities all within close proximity to the port.
Looking at the pot facilities first:

4. The biggest advancement in this field today is the growing containerization and the resultant technology changes. With more and more bulk cargo getting stuffed into containers, more cargo can be now moved using less manpower and man hours.

5. To understand this phenomenon better, we decided to take the example of India’s largest major port Visakhapatnam, that has given out its adjacent space to private players to operate a container terminal on a BOT model for 30 years ie the Visakha Container Terminal Taking a look at The Visakha Container Terminal at Visakhapatnam, to see the technology and mindset changes that container terminals need to adopt to, especially in the Eastern India where containers were a rare sight just a few years ago.

It concluded that “One must understand the fact that Eastern India has traditionally been bulk and liquid cargo. The ports here have always been experts in handling iron ore, steel, and coal and petroleum products. And even today containerization has not picked up here as in the western region of India.”

Adani Group to foray into nuclear power sector

Project Today reported that Adani Group is planning a nuclear foray and is in advanced stage of negotiation to rope in an entity, who has experience in nuclear energy generation abroad. The entity is expected to join the group by December 2008.

Adani Power is currently setting up a thermal power station at Mundra in Gujarat. While the Mundra project will be commissioned in phases from January 2009 to 2010, the company has lined up a number of projects in Gujarat and Maharashtra to take the thermal capacity to 9,990 MW as early as 2012.

ADAG plans to acquire 6 Capesize ships by 2011

Exim News Service reported that the Anil Dhirubhai Ambani Group proposes to enter shipping operations by buying 6 Capesize dry bulk carriers by 2011, entailing an investment of INR 3,000 crore.

Initially the company will concentrate on captive operations, but may later enter commercial services if there is good opportunity.

The official who took part in the recently concluded India Shipping Summit 2008 said that the group’s shipping business would be under Reliance Natural Resources Limited. He said that "We will need another 6 Panamax vessels and 6 more Capesize vessels by 2013 for our Shahapur and Krishnapatnam power projects.”

The company is reportedly negotiating with some shipyards including Korean, to place orders for its first lot of Capesize vessels.

Delhi to help Himachal Pradesh government build 3 dams

It is reported that the Delhi government has tied up with the Himachal Pradesh government to construct 3 dams namely Renuka, Khishau and Lakhawar-Vyasi in the Upper Yamuna.

In early October 2008, the Delhi government had sent INR 200 crore as the first tranche of funds for the projects which are meant mainly for land acquisition. All three dams are to be undertaken by the Himachal Pradesh Power Corporation.

Currently Delhi consumes around 900 MGD and through the proposed scheme Delhi is to receive 23,000 liters every second through a gravity pipeline that will cross through Haryana.

DMRC completes construction work of fourth tunnel

Project Today reported that Delhi Metro completed the construction work of fourth tunnel by boring a 1,008 meters long tunnel from INA to Race Course as part of its Phase II project on Central sect-Gurgaon line.

A Tunnel Boring Machine was used to make the tunnel. The TBM was lowered in the INA shaft in May 2008. The 1,008 meters tunneling was done 12 meters below the earth's surface and a total of 837 rings, each 1.2 meters in length, were installed simultaneously along with the tunneling process. Each ring has six segments and these segments and rings are connected by using 17,402 bolts.

The second phase of the Delhi Metro will comprise about 30 kilometer of the underground section of which about 16 kilometer were to be built using TBMs. The other three tunnels which were made using the same technology in the past four months included two at Hauz Khas and one at Jorbagh.

Gujarat inks agreement with L&T for highway projects

Project today reported that the Gujarat government has signed an agreement with Larsen & Toubro for 3 highway projects. The 3 stretches include Halol-Godhra-Shamlaji, Ahmedabad-Viramgam-Maliya, Rajkot-Jamnagar-Vadinar on BOT basis and the company will pay a premium of INR 6,217.5 to the state government.

As per report, L&T will pay INR 6,000 crore as premium to the government over the next 20 years. Also INR 727 crore subsidy has been waived off from both the Centre and state governments under VGF scheme.

It is learnt that as per the concession agreement, L&T has been authorized to collect toll charges on all the three highways after the expansion. The premium will be paid from the revenues of toll collected from transporters. The length of Halol-Godhra-Shamlaji road is 173.06 kilometer while other stretches have a length of more than 325 kilometer.

Thermax bags INR 450 crore order for captive power plant

It is reported that Thermax has bagged INR 450 crore orders for setting up a captive power plant from an integrated steel unit.

The 60 MW power plant will be built and commissioned on a turnkey basis for a green field integrated steel complex in Andhra Pradesh. The plant will use process gases and blended coal as fuel.

The scope of the order includes supply and commissioning of boilers and turbines, fuel and ash handling system, civil works, water treatment plant, pollution control system, storage reservoirs and balance of plant equipment.

The captive power plant will support the integrated steel project of 1.25 million tonne per annum expandable to 2.5 million tonne per annum capacity. The power and steam generated will be used for some critical processes of the complex.

Era Infra order book rises to INR 6000 crore

BS reported that Era Infra Engineering, integrated infrastructure development company has bagged orders worth INR 785 for the quarter ended September 2008.

Era Infra said that the bagging of new projects like these have increased the current order book of the company, on a consolidated basis, to about INR 6000 crores.

Clients like Naya Raipur Development Authority and Aiport Authority of India, Raipur have commissioned the company to build their new projects in the last quarter.

Indian Railways posts 19% increase in 5 months

It is reported that the Indian Railways forms the backbone of logistics in the country and transport of coal and iron ore forms its priority. That is obviously because these two commodities form a major share in the freight segment for the Railways.

It has been felt in several quarters however that the Railways need to work keeping the larger interests of the nation in mind. In spite of concentrating on just two sectors, it has recorded a growth of 19% in the first 5 months of the current financial year. The growth has been largely driven by an increase in freight volumes and better utilization of lean routes.

While gross revenue between April and August 2008 stood at INR 32,304 crore, total revenue earned through freight alone was INR 22,029 crore during the same period, recording a growth of 20.48%. In fact such huge growth was possible in spite of the fact that the Railways increased freight rates for iron ore and coal during this period.

According to recent media reports, the Railways have also decided to impose a busy season surcharge on freight. The levy will range from 5 to 7% on transportation of all products with effect from October 1. This will remain in force till March.

IISI changed its name to World Steel Association

The International Iron & Steel Institute announced that it has changed its name to World Steel Association with immediate effect.

Mr Ian Christmas director general of WSA said that "Since we were formed in 1967 the world for steel has substantially changed and so has this organization. We are now a truly global body representing 18 of the world’s 20 largest steel companies, including six of the top 10 producers in China."

He added that "Our new name provides a simple description of our role and clarity to our purpose. The World Steel Association is the representative body for an essential industry that takes a leadership role through our environmental, social and economic sustainability programs."

Mitsui to buy stake in G Steel - Report

Thai steel firm G Steel said that Japanese trading house Mitsui & Co is planning to acquire a stake in it.

G Steel executive said that details of the share sale, including the price and what percentage Mitsui would own, were expected after the approval of the boards of both firms.

The executive said that Mitsui would benefit from using the Thai partner as a production base for the region while G Steel could secure overseas expansion opportunities. He added that "It is a win win opportunity for both sides in terms of marketing and supply chain."

Previously several newspapers had reported that G Steel was in talks to sell a stake to ArcelorMittal group. But G Steel denied those reports.

WSA appoints Mr Mittal as chairman and elects new officers

The board of directors of World Steel Association has elected the following new officers

Chairman
Mr LN Mittal chairman & CEO of ArcelorMittal

Vice Chairmen
Mr Ku Taek Lee chairman & CEO of POSCO
Mr Paolo Rocca chairman & CEO of Techint Group
Mr John Surma chairman & CEO of US Steel

The new officers were elected for one year, until October 2009. The board of directors met on the first day of worldsteel’s 42nd annual conference in Washington DC.

Mr Ian Christmas director general of World Steel Association has thanked Mr Ku Taek Lee chairman for 2007-08, for his support and dedication over the past year. He also welcomed Mr LN Mittal as the new chairman and Mr Ku Taek Lee, Mr Paolo Rocca and Mr John Surma as vice chairmen.

The board of directors also elected the 2008-09 executive committee
1. Mr Hajime Bada of JFE Steel Corporation
2. Mr Daniel DiMicco of Nucor Corporation
3. Mr Jorge Gerdau Johannpeter of Gerdau SA
4. Mr Karl Ulrich Köhler of ThyssenKrupp AG
5. Mr Ku Taek Lee of POSCO
6. Mr Lakshmi Mittal of ArcelorMittal
7. Mr Alexey Mordashov of Severstal JSC
8. Mr Shoji Muneoka of Nippon Steel Corporation
9. Dr M Aydin Müderrisoglu of Erdemir
10. Mr Paolo Rocca of Techint Group
11. Mr John Surma of United States Steel Corporation
12. Mr Sakari Tamminen of Rautaruukki Oyj
13. Mr Philippe Varin of Corus Group
14. Mr Lejiang Xu of Baosteel Group
15. Mr Xiaogang Zhang of Anshan Iron & Steel Corporation
16. Mr Ian Christmas of World Steel Association

The board of directors has also elected and welcomed the following companies and associations as new members of worldsteel

Regular Members
Badische Stahlwerke GmbH, represented by Mrs Carolin Kramer
Deacero SA de CV, represented by Mr Raul M Gutierrez
Laiwu Steel Group Limited, represented by Mr Song Lanxiang
Metalloinvest Management Company, represented by Mr Maxim Gubiev

Associate Members
Jindal Steel & Power Limited

Affiliated Members
Malaysian Iron & Steel Federation

Fletcher Building agrees to buy Fielders Australia

Fletcher Building has entered a conditional agreement to buy Fielders Australia Pty Ltd. The conditions include due diligence, Australian regulatory approval, and the approval of Fletcher Building's board of directors.

A purchase price was not disclosed but Fielders’ part owner Hills Industries said that it expects to get around AUD 105 million in cash from the sale, comprising repayment of inter company loans, consideration for shares and a fully franked dividend.”

The sale agreement with Fletcher Building is conditional upon, amongst other things, due diligence, Australian Competition and Commerce Commission and Foreign Investment Review Board approval, and the approval of Fletcher Building’s board of directors.

Fielders is owned 60% by Hills Industries Ltd and 40% by FSR Investments Pty Ltd. Adelaide based steel product company Fielders has annual sales of about AUD 275 million and employs 890 people across Australia. Fielders Australia provides roll formed steel building components to the Australian commercial, industrial and residential construction industries.

Mr Jonathan Ling CEO of Fletcher Building said that Fielders was a well run business with a solid reputation for performance. He said "It would complement our existing business units in Australia and New Zealand."

Fletcher makes most of New Zealand's reinforcing steel and in 2005 bought Stramit Steel Products in Australia to expand its sales of roofing and structural products. In the past 18 months it bought three steel shed makers and a steel flashings company in Australia to expand its product and geographic spread.

WSA sees steel demand growth above world GDP in 2009

The World Steel Association said that it still expected growth in steel demand in 2009 and for the medium term above the rate of world GDP growth.

Mr Ku Taek Lee chairman of World Steel Association and also chairman & CEO of POSCO said that "We are in a period of high economic uncertainty. The impact on steel markets is becoming more apparent as we move into the later part of 2008. However, we continue to expect growth in steel demand in 2009 and for the medium term, above the world GDP growth rate."

The IMF has previously forecast that global growth would slow from 5% in 2007 to around 3% in late 2008 before reaccelerating towards 4% in 2009.

Recession reports - Black Monday in Paris

Worries over the European banking system and a weak Wall Street sent the Paris Bourse to its worst ever single day loss on Monday, with its benchmark CAC 40 plunging by 9.04%, to finish at 3,711.98, its lowest level in four years.

All 40 listed stocks finished in the red, led down by the recently rescued French-Belgian financial service group Dexia, which lost 20.29% to EUR 6.80.

Because of fears of continued tight credit, industrial stocks fared worst as a group, with steel giant Arcelor Mittal off by 14.85% to EUR 28.30.

Precision Castparts acquires Fatigue Technology

Precision Castparts Corp has agreed to acquire Fatigue Technology, Inc, headquartered at Seattle in Washington.

The cash acquisition of FTI will be immediately accretive to earnings and will be treated as an acquisition of assets for tax purposes. Subject to regulatory approvals, the acquisition is expected to be completed in the third quarter of fiscal 2009, after which FTI's results will be reported as part of the Fastener Products segment.

In 1969, FTI pioneered the cold expansion process, which extends fatigue life in both metal and composite airframe fastener holes. The cold expansion process involves radial expansion of an existing hole, imparting residual compressive stress around the hole, and dramatically extending fatigue life. All products manufactured by FTI, including split sleeves, bushings, rivetless nut plates, blind nuts, and fittings, utilize the cold expansion process in their installation and are specified by the airframe manufacturer to obtain the desired fatigue life benefits.

Mr Mark Donegan chairman & CEO of Precision Castparts Corp said that ''The acquisition of FTI continues our efforts to grow and enhance our critical aerospace fastener product offering. The company fits squarely with all our core competency targets, and its sales are nearly 100% to the aerospace market. FTI is the technology leader in fatigue life extension for airframe applications, and we will look to leverage their expertise and knowledge base across our other fastener businesses.''

Precision Castparts Corp is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines. The Company is also a leading producer of highly engineered, critical fasteners for aerospace, automotive, and other markets and supplies metal alloys and other materials to the casting and forging industry.

Japanese H Beam exports in August up by 5% MoM

According to announced trade statistics from ministry of finance, Japanese customs has cleared H beam exports totaled 21,700 tonnes in August 2008, up by 4.8% MoM and down by 39.1% YoY, when their values averaged JPY 130,000 per tonne FOB, up by JPY 13,000 from a month ago.

In the breakdown by main destinations, South Korea accounted for the largest quantity of 11,000 tonnes at JPY 124,000 per tonne FOB, up by JPY 10,000 from a month ago. The UAE took 4,200 tonnes at JPY 141,000 per tonne FOB, and Mexico with 1,000 tonnes at JPY 142,000 per tonne FOB. Also, a small amount of 15 tonnes was exported to the USA at JPY 182,000 per tonne FOB.

Meanwhile, Japan's customs cleared H beam imports totaled 9,400 tonnes in August 2008, down 40% from a month ago, indicate announced trade statistics from the ministry of finance. All the imports arrived from China.

Mr LN Mittal losses GBP 16.6 billion in global meltdown - Report

The Sunday Times claimed that Mr LN Mittal has lost GBP 16.6 billion pounds in the global credit crunch owing to plummeting stock markets in the last four months.

As per report, Mr Mittal has seen his family's stake in ArcelorMittal fall from GBP 33.24 billion on June 4th 2008 to GBP 16.63 billion at the close of Friday's markets. The loss is equivalent to GBP 137 million pounds a day or nearly GBP 6 million pounds an hour.

The credit crunch losses are established by comparing the value of shareholdings around the world held by them at their peak with the value at the close of markets last Friday.

Indian Steelmakers Directory 2008

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

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

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

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

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

ArcelorMittal cut to hold by Deutsche Bank

Deutsche Bank has lowered its rating on ArcelorMittal to hold from buy and trimmed its forecasts for benchmark steel prices.

On ArcelorMittal specifically, the broker said the downgrade is on its exposure to international steel prices and its financial leverage. It cut price targets by an average of 5% for the sector.

Recession reports - South Korean auto output down by 11% YoY

Yonhap reported that South Korea's production of cars, trucks and buses fell by 10.7% YoY in September 2008, dragged down by weaker demand in the United States and Europe.

Korea Automobile Manufacturers' Association said that output fell to 259,012 vehicles for the fourth consecutive month of declines. September's fall was the biggest monthly drop so far this year.

Hyundai Motor said that sluggish exports to the US and European markets and persistently weak domestic consumption were behind the decline. In September 2008, auto exports slipped 10.4% to 179,786 vehicles with domestic sales down by 14.5% to 78,585.

Last week, Mr Chung Mong koo chairman of Hyundai Motor said that it will try to escape the fallout of the US sparked global financial turmoil by focusing on sales in Europe.

In September 2008, Hyundai sold 24,765 vehicles in the US, down by 25.4% YoY, marking the third straight monthly decline. In the first nine months of this year, Hyundai sales in the US sunk 6% YoY to 337,664 units. Despite the decline, Hyundai has maintained its US sales target of 515,000 units for 2008.

ArcelorMittal and Highveld plunge on weak steel demand

It is reported that South Africa’s major steel makers, ArcelorMittal and Highveld Steel and Vanadium, were among the worst casualties on the JSE, in what traders attributed to weakening demand for steel and plunging prices.

Mr Drikus Combrinck a trader at Cape Town based PSG Konsult said that "There are concerns about steel demand, especially from China that’s one of the reasons the stocks are taking a beating this afternoon. Arcelor held out well last week on speculation that its parent company would buy out minority shareholders in South Africa operations when it announces the details of the BEE deal."

ArcelorMittal SA, a unit of ArcelorMittal, is trading under a cautionary as its parent mulls an initiative that may lead to a deal involving the introduction of a black economic empowerment partner into ArcelorMittal SA.

Overall, the steel sector was feeling the pinch of plunging steel prices, which are reported to have dived 20% in the past three weeks and about 60% over the past four months as the slowing global economy eats into demand.

Meanwhile, UBS has lowered its steel price forecasts on a global 2009 recession view, dropping its benchmark steel prices for EU domestic, US domestic and China domestic steel prices by around 15% for 2009 and by 6% for the US and 13% for Europe and China for 2010.

Japanese ferrous scrap purchase price falls below JPY 40,000

Ferrous scrap market price fell to below JPY 40,000 per tonne for H2 grade around Tokyo. Decreased export contracts to East Asia made impact to the market price.

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced the purchase price of ferrous scrap on October 3rd 2008 and October 4th 2008. Other electric furnaces reduced the purchase price, too.

US wire rod prices soften further

It is reported that American wire rod mills are trying to stabilize the market price even though they are facing lower import prices.

As per report, most American domestic wire mills offer USD 1,135 to USD 1,157 per tonne for low carbon wire price now, but anyhow the deals are still in logjam due to lower demand and lower import prices. Besides, the American wire rod price keeps on falling in-line with the dropping scrap price.

Meanwhile, the import prices from both China and Turkey are dipping consecutively. The Turkish price is very competitive recently. However, Chinese steel mills try to decrease the selling price in order to gain the orders. The buyers just wait and see presently, they don’t want to place big orders due to lower demand and instable economy.

(Sourced from Yieh.com)

Kinsteel expects to sustain profit and sales

It is reported that, although steel prices have faced downward pressure over the past months, Kinsteel Bhd is confident that products such as H beams and I beams will sustain the company’s sales and profit levels going forward.

Mr Tan Sri Pheng Yin Huah MD of Kinsteel said that margins for these products are higher and there is also higher demand for them. He added that "With that in mind, the company plans to increase the production capacity of these products by 1.6 million tonnes at its under utilized Gurun plant in Kedah."

However, an analyst with a foreign brokerage pointed out that the company’s earnings was expected to peak in the financial year ending December 31st 2008 due to high steel prices which lasted from the end of last year until July 2008.

An Aseambankers analyst said that its 2009 to 2010 forecast net earnings had been lowered by 19% to 22% given Kinsteel’s revised assumption of steel selling prices. Scrap prices had been revised from USD 620 to USD 630 per tonne currently to a price range of between USD 450 and USD 500 per tonne from 2009 to 2010.

He said that Kinsteel’s net earnings are projected at MYR 230 million for 2009 and MYR 266 million for 2010. He added that "Our forecast, however, has yet to incorporate Kinsteel’s plans for a new mini blast furnace for its midstream segment, which would start contributing from end of 2010."

Meanwhile, OSK Research and industry players expect the correction of steel prices to be temporary. It said that although, there was some weakening in the US and EU economies, demand for steel should remain resilient due to the dynamism of emerging markets.

Dowa sees H2 2008-09 copper output up by 8.5% YoY

Reuters reported that Japan's Dowa Holdings Co Limited expects to produce 10,183 tonnes of copper a month in the second half of the business year to the end of March 2009, up by 8.5% YoY.

Dowa is among the leading companies that produce metal using recycled material and has upgraded a recycling facility at its Kosaka smelter in northern Japan.

Following are details of the company's latest plans for monthly output, with comparisons against estimated monthly production in the April to September 2008 period and actual production in the second half of the last business year.

In tonnes

Cookson posts improved Q3 over last year on purchase

Cookson Group Plc said that its third quarter business levels were ahead of last year, boosted by an acquisition and favorable currency movements.

Cookson said that the integration of UK rival Foseco Plc, purchased in April 2008, is proceeding very well.

US rebar market slows down

It is reported that American rebar market is weakening, affected by the financial crisis.

On the other hand, most steel mills are considering production cut to balance supply and demand. Besides, the demand has been affected by the weak construction industry.

Current prices of rebar in the domestic market are prevailing between USD 1,020 to USD 1,031 per tonne, and that of import price are being quoted at USD 926 to USD 948 per tonnes. In the following weeks, the steel mills are expected to cut down the price to strive for more orders.

(Sourced from Yieh.com)

Recession reports - Indonesia says global credit crisis is slowing growth

Bloomberg reported that Indonesian government said that the global credit crisis is slowing exports and may affect gross domestic product growth in Southeast Asia's biggest economy.

Mr Boediono governor of Bank Indonesia said that "The global liquidity squeeze may continue for the next 6 months to a year. Bank Indonesia and the government are increasing cooperation so we can limit the impact.''

Mr Mulyani Indrawati Indonesian finance minister said that financial turmoil may force Indonesia to revise its budget estimates for next year.

The central bank said that it will buy the currency if needed to boost the measure. Bank Indonesia has USD 58.36 billion of reserves, which are sufficient to meet 4.6 months of imports.

Indonesia's economic growth unexpectedly accelerated 6.4% in the second quarter as rising prices and demand for the nation's coal, palm oil and rubber pushed exports to a record. The government foresees growth slowing to 6.2% in 2008 from 6.3% a year earlier. The government expects its budget deficit will narrow to 1.3% of GDP this year, from an estimated 1.9%, as spending was reduced. That makes it less urgent for the state to sell more bonds this year.

Economic leaders across the world are trying to limit the spread of the fallout from the US. A record number of home foreclosures in the US forced Lehman Brothers Holdings Inc., into bankruptcy last month, while Fannie Mae, Freddie Mac and American International Group Inc. were taken over by the government.

Petrobras to open USD 837 million Campos Basin terminal soon

Petrobras SA said that its new USD 837 million tanker loading terminal in the Campos Basin will begin oil exports this month. The terminal is the first step in Petrobra’s plan to export large volumes of oil from the Roncador and Marlim fields over the next decades.

The PRA 1 autonomous re pumping platform is designed to receive crude oil from four deepwater floating production systems that will be installed on the Roncador, Marlim Leste and Marlim Sul deepwater fields. It is slated to take oil from the P51 platform on the Marlim Sul field, from the P53 floating production storage and offloading vessel on Marlim Leste and P52 and P55 production facilities on the Roncador field once they are installed.

The PRA1 platform has been designed to offload the crude to tankers via the Modec owned Cidade de Macae floating storage and offloading vessel, starting with oil that is coming from the P52. Oil is also scheduled to be loaded onto tankers from two floating terminals, near the PRA1 platform, from next year.

This facility is designed to transfer up to 810,000 barrels of oil per day when all four of the deepwater production units are pumping at peak rates. The platform will reduce the costs of transferring oil from the Campos Basin fields and improve the economics of Petrobras’ development of the Marlim and Roncador fields.

Cruise ship terminal coming up at San Diego port

It is reported that the Port of San Diego in the US west coast state of California is to provide shore side power at the new USD 28 million cruise ship terminal to be built on the Broadway Pier.

As per report, a design for the new building was agreed after negotiations with the Centre City Development Corporation. It will include a cold ironing conduit that will comply with California’s regulation to provide ships with shore power. This will allow cruise ships to turn off their diesel engines while at berth.

In 2007, the Port of San Diego had 238 cruise calls with more than 700,000 passengers. By the end of 2008, the Port anticipates that number to jump to 252 cruises and more than 800,000 passengers.

The cold ironing facility is part of the port's Green Port Program. This was developed by the Port of San Diego to support the goals of the Environmental Sustainability Policy that was approved by the Board of Port Commissioners in 2007.

One of the goals under the Green Port Program is to pursue grant funding for cold ironing at both the Cruise Ship Terminal and Tenth Avenue Marine Terminal. The port is currently conducting feasibility studies for cold ironing at National City Marine Terminal.

EU fine not to impact Sasol growth plans - CEO

Mr Pat Davies CEO of Sasol expressed profound regret at the weekend that its European paraffin wax subsidiary, Sasol Wax GmbH, had violated European Union competition law, but said that the group was robust enough to withstand the ZAR 3.8 billion fine and still continue with its ambitious growth pipeline.

Sasol planned to spend up to ZAR 17 billion on a range of projects between 2009 and 2012, the majority of which would be implemented in Southern Africa.

Mr Davies said that it had made immediate provision for the fine, but he also provided a strong indication that the group was likely to appeal the ruling.

But Davies, who had returned from an investor road show in the US on Friday morning, insisted that the fine would not impact on its growth program, although he said it had given the group renewed cause to tighten its due diligence and compliance-monitoring procedures.

Mr Davies said that "Fortunately, Sasol is a successful company. It has a strong balance sheet and generates a lot of cash flow therefore we believe the very substantial fine would affect its growth programs."

Harthill Services completes GBP 5.1 million bridge across M8

It is reported that thousands of motorists today got their first glimpse of Scotland's newest iconic bridge after it was lifted into place across the M8 at Harthill Services.

The landmark footbridge cost GBP 5.1 million and is made from tubular steel which has been given an aluminum silver paint finish.

Mr Stewart Stevenson transport minister of Scotland said that "This is a fantastic project and I am delighted to see this new bridge being lifted into place. It is a much-needed replacement for the existing bridge which will be welcomed by local communities. The design will ensure it becomes an instant landmark while encouraging people out of their cars in favor of the new local transport interchange."

Paisley based Raynesway Construction undertook the project on behalf of Transport Scotland. A fleet of 45 lorries brought the crane to Harthill where it was assembled.

Harthill Services paid the GBP 5.1 million bill for the bridge and also spent another GBP 1.1 million on a new interchange as part of a major upgrade.

Dubai World forms natural resources unit

Dubai World announced the formation of a new business unit, Dubai Natural Resources World, designed to explore new long-term investment avenues, while contributing positively towards sustainable development.

Dubai Natural Resources World will drive the growth of the group's interests across the entire natural resources value chain, including oil and gas, alternative energy, mining and agriculture.

The statement said that it will adopt a strategy of deriving long-term returns from all natural resources in a safe, clean and sustainable way. It added that the creation of the new subsidiary is in line with Dubai World's commitment to enhance Dubai's global profile and ensure retaining a leading-edge in its development and remains among the most favored partners of the world's fastest-growing economies.

Sultan Ahmed Bin Sulayem chairman of Dubai World, described it as a step in the right direction coming at the right time. He said that “The ever increasing consumption of natural resources has created an unsustainable situation globally that demands a proper balance in supply and demand. We believe this is a challenge, as well as an opportunity, which requires long-term commitment, substantial investments, and above all a clear vision towards a sustainable future for our next generations. Dubai World is in a position to take on the challenge and commit the resources required on a global scale.”

He added that “We have the right credentials for the task, having left some indelible footprints in the most crucial business sectors that are core to Dubai's global economic growth. We are confident that the success achieved elsewhere can be replicated with Dubai Natural Resources World as well.”

He said that “The driving force behind Dubai Natural Resources World is the alarming shortage of natural resource supply across the world, combined with the competition for resources in emerging new markets. This has opened up an investment sector where carefully planned capital input can make a considerable difference in the supply-demand equation.”

The statement said that “Dubai Natural Resources World also sees this sector as a niche area where partnerships can lead to assured financial returns and opening avenues of co-operation in the development and promotion of alternative energy sources. The natural resources sector is technology strong and works closely with research services.”

Nakheel Tower to be 1 kilometer high

Nakheel has unveiled the centre-piece of its newest planned development, the Nakheel Tower the focal point of the Nakheel Harbor and Tower project. The model of the development is the showpiece of Nakheel's stand at Cityscape Dubai and has proved to be one of the most popular attractions of the opening day.

The kilometer high tower will stand at the junction of Sheikh Zayed Road and the Arabian canal, near Jebel Ali and at the heart of 'New Dubai.'

The Nakheel Harbor and Tower development will cover a total of 270 hectares and provide accommodation for 55,000 people once complete. The tower itself will be 200 storey tall and once complete will be the world's tallest concrete structure.

Prices for the project will cost an estimated USD 3,500 per square foot and units will be released for sale in increments over the ten years it will take to complete the project.

The tower will have more than 200 floors and will take an estimated 500,000 cubic meters of concrete to construct.

Iran wants insurance for IPI against armed conflict

Press Trust of India reported that Iran has sought an amendment to the gas sale agreement for the IPI pipeline project involving India and Pakistan in an apparent bid to ensure legal cover for itself in the event of disruption of supplies due to any armed conflict.

Pakistani official sources said that Iran has informed Pakistan that the term act of war under excusing event should be replaced by a suitable substitute like situation of armed conflicts or war in the draft agreement for the project. The move is apparently to seek a force majeure clause in case the seller country Iran is faced with an armed conflict or a war.

Legal experts have recommended that Pakistan could consider this amendment as it covers armed conflicts between states rather than groups within a state and it has a material impact on gas supplies or off takes.

A meeting of a sub committee of Pakistan’s Economic Coordination Committee on gas import projects agreed to this proposal and recommended that the government negotiate with Iran on the basis of suggestions by legal experts.

After agreeing on a gas price formula on October 23rd 2007 Pakistan and Iran had agreed in principle to sign the gas sales and purchase agreement for the USD 7.4 billion project in the next 2 months. However many amendments proposed by Iran and India have delayed the signing of the agreement for an indefinite period.

The sources said that the latest amendment proposed by Iran required further talks between the contracting countries and would further delay the signing of the agreement. Domestic gas reservoirs in Pakistan have almost depleted and the demand for gas is on the rise due to economic growth. The supply and demand gap is expected to be 26 million metric standard cubic meter per day in 2011-12, 77 million metric standard cubic meters per day in 2015 and 293 million metric standard cubic meters per day in 2025.

If the agreement is implemented Iran will start supplying gas to Pakistan by 2013. Pakistan and Iran will build the pipeline in their respective territories.

Real estate projects in Abu Dhabi to hit USD 500 billion

MEED reported that Abu Dhabi Central Business District Abu Dhabi has seen its gross domestic product soar from USD 40.6 billion in 2002 to USD108.9 billion in 2007. The booming real estate and tourism sectors are playing a significant part in this success story as the total value of announced projects in the capital inches towards the USD 500 billion mark.

Contributing to the USD 500 billion portfolio are large scale real estate projects such as Al Raha Beach, Al Reem Island, Das Islands and the AED 100 billion Saadiyat Island development. Abu Dhabi’s economic growth as a whole can also be credited to the government’s determination to diversify the economy away from its reliance on oil and gas, non oil and gas GDP has up by 87% to USD 43.3 billion over the past 5 years.

The pace and scale of economic growth in Abu Dhabi presents huge challenges for all those working to promote long term sustainable development in the capital. MEED’s Abu Dhabi 2008 conference will be an invaluable event for everyone wishing to make the most of this opportunity. The conference is supported by the Abu Dhabi Department of Planning & Economy and supported by the Abu Dhabi Chamber of Commerce and Industry. Sorouh Real Estate PJSC, Abu Dhabi Commercial Bank, Al Qudra and Burooj Properties are Platinum sponsors and HSBC and Pacific Controls are Gold sponsors. The Abu Dhabi Conference 2008 will be held at the Emirates Palace in Abu Dhabi from November 8th to 11th.

Mr Edmund O’Sullivan chairman of MEED said that “2008 is a crucial point in the story of this great city and this event is essential for all those involved in and with a stake in, its future success. This forum is an invaluable opportunity for those at the cutting edge of Abu Dhabi’s future to discuss its development.

Pakistan seeks Chinese investment in cement sector

Business Recorder reported that Pakistan has approached the Chinese firms to encourage investment in the cement sector by establishing new plants in the country.

Sources said that the issue of new Chinese investment in Pakistan and progress of existing Chinese projects was discussed in a recent meeting between Chinese Ambassador in Pakistan Mr Luo Zhao Hui and senior officials of different ministries at the Planning Commission.

The meeting thoroughly reviewed all Chinese projects in Pakistan which was attended by the senior officials of the Planning Commission, Federal Bureau of Revenue, Finance Division, Ministry of Petroleum, Board of Investment, Ministry of Railways and Ministry of Foreign Affairs.

According to sources, the government has invited Chinese firms to express interest in the establishment of the cement plants in Pakistan. The idea is to ensure maximum investment in potential sectors particularly cement industry.

It said that the duties and tax concessions on the import of plant, machinery and equipment under different FBR notifications and tax laws are available to the new foreign investors. The procedure of advance ruling under Income Tax Ordinance 2001 is also available for new investors to know about their income tax liability in advance before making any investment in Pakistan.

As per report, the agreement would be instrumental in strengthening long term relationship between the two countries. The Chinese Ambassador also thanked the government of Pakistan for supporting expeditious planning and implementation of projects being executed by the Chinese companies.

MEASPI - Barometer for steel prices in Middle East Asia

Amidst the currently prevailing volatile and speculative global steel price scenario, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis in Middle East.

In order to provide a index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them LPPI, FPPI and MEASPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

LPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 5 countries, whereas FPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in these countries.

The pricing input is from www.steelprices-middleeast.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.

These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.

To know more, please visit
http://steelprices-middleeast.com/spi_services/spi.html

Iraq seeks USD 2 billion foreign funding to boost industry

MEED reported that thirty state owned firms seek joint ventures with foreign and private investors.

The Industry & Minerals Ministry will name 30 state owned companies seeking to enter joint ventures with foreign and private investors by the end of January, as it strives to develop the country's industrial resources. The move follows the award of joint venture agreements to upgrade three of the country's largest state owned cement plants. They are the first such deals to be made by the government involving partnerships between private and foreign investors.

The ministry aims to attract up to USD 2 billion worth of private investment to Iraq's ailing cement, petrochemicals, iron and steel sectors.

Mr John Lyons a senior consultant at the Iraq Reconstruction Management Office a division of the US Department of State said that "Hopefully, the success of the initial round of investment will be repeated. We are hoping to attract more large European companies."

Mr Lyons said that “The ministry is focusing on industrial development in the downstream petrochemicals and cement sectors. Downstream petrochemicals are extremely important. After that we are looking at construction and cement."

Eight Iraqi led consortiums submitted bids for the 15 year joint venture agreements to renovate three existing cement plants. The rehabilitation of the plants is expected to take three years to return each to its original production capacity of 1.8 million tonnes a year. They are currently working at 20% capacity.

The winning consortiums are backed by Lebanon's Seament, Romanian Uzein Export-Import, and Germany's KHD. Each group is expected to invest USD 150 million in renovating the factories.

Existing facilities in Samawa in the southern Muthanna province, Kirkuk in the north and Al-Qaim in western Anbar province will be upgraded. The government will take 30% to 45% of the plants' output free of charge.

France's Lafarge launched an unsuccessful bid to secure the contract to upgrade a fourth plant near the city of Kerbala. Its 12% product sharing offer was rejected and the contract is now due to be re tendered. Mr Lyons said that "We are hoping Lafarge will come back.”

In March 2007, Orascom Construction Industries completed the rehabilitation of the Tasluja cement factory near the city of Suleimaniyah in northern Iraq. The plant has a production cap-acity of 2.3 million tonne per year.

Bechtel wins Saudi smelter deal

MEED reported that US based Bechtel has clinched a key aluminum smelter project in Saudi Arabia.

Meed without saying how it got the information reported that Betchel has been appointed as the engineering, procurement and construction management contractor for Al-Zabirah smelter project at Ras al Zour.

The smelter is being developed by Alumco a joint venture of Saudi Arabian Mining Company and the British Canadian company Rio Tinto Alcan.

Pakistan PM to lay foundation stone for Multan Dry Port

Business Recorder reported that Mr Syed Yousuf Raza Gilani PM of Pakistan would lay the foundation stone of the Multan Dry Port near Sher Shah Bypass on October 15th 2008.

Sources said that the railway administration has completed all the arrangements in this regard.

On the other hand, the railway sources told Business Recorder that no schedule has been announced by the railway ministry or railway headquarters regarding the arrangements of the ceremony of the foundation stone.

Arabian Construction and Leader Marine bag AED 200 million contract

It is reported that a joint venture of Lebanon's Arabian Construction Company and Hong Kong's Leader Marine Contracting has been awarded marine works packages totaling AED 200 million (USD 54 million) on the Fujairah F2 Power and Desalination Plant project.

Iran to start gas exports to Armenia by October 13

MNA reported that Iran will start gas exports to Armenia by October 13th 2008, the director of the gas export operation office of the National Iranian Gas Company.

Mr Rasoul Salmani said that “Armenia also started electricity export to Iran on Sunday.” He explained that “Iran plans to annually export some 1.1 billion cubic meters of gas to Armenia. In the first phase Iran will export less volume to Armenia but will increase the export volume gradually, and in 2019 will raise it to 2.3 billion cubic meters.”

Mr Rasuli said that “In return Iran will annually import 3.3 billion kw/h of electricity from Armenia.”

The 100 kilometer Iranian section runs from Tabriz to the Iran-Armenia border. The Armenian section runs from Meghri region to Sardarian.

Iran is expected to supply all of Armenia’s gas needs within the next two years. The total outlay for the pipeline is about USD 28.2 million.

Arabtec wins USD 150 million construction contract

Reuters reported that Dubai's Arabtec Holding was awarded a AED 550 million (USD 149.7 million) contract by Dubai Properties for a construction project.

Arabtec in a statement said that the contract entails the construction of a 12 storey residential building in Mudon development, which is to be completed within two years.

Arabtec is the United Arab Emirates' largest construction company by market value.

Egypt struggling to meet demand growth for natural gas

It is reported that Egypt has awarded a drilling contract to the recently formed Egyptian Offshore Drilling Co a JV of Toyota Tsusho 50%, Egyptian Natural Gas Holding Co 35% and Ganoub El-Wadi Petroleum Holding Co 15%.

As per report, the award comes as Egypt is stepping up efforts to increase its output of natural gas to meet growing domestic demand, as well as hoped for exports to neighboring Arab countries and the European Union.

EODC will place a USD 400 million order for drilling rigs with a Singaporean heavy machinery maker yet to be named and drilling is slated to begin as early as 2011.

Trading firm Toyota Tsusho a subsidiary of Toyota Motor Co will manage the entire project and procure the rigs, while Egyptian Natural Gas will operate them and carry out test drilling.

The JV has signed a USD 500 million loan agreement with a bank syndicate consisting of Japanese and Egyptian banks.

Japan Bank of International Cooperation said in late September that it agreed to participate in the syndicated USD 500 million loan to the Japanese-Egyptian offshore drilling JV. JBIC said that the credit will finance the construction and operation of 2 offshore drilling rigs by EODC. Also in late September, Egypt offered seven offshore exploration permits in Mediterranean areas potentially rich in natural gas and companies have until February 9 2009 to submit bids.

According to Mr Sameh Fahmi Egyptian Minister of Petroleum at a meeting of the Egyptian Holding Co for Natural Gas on September 22nd, Egypt's reserves of natural gas now stand at 76 trillion cubic feet. But there is growing competition for the supplies especially in Egypt.

According to analyst BMI, Egypt's domestic natural gas demand has grown rapidly as thermal power plants which account for about 65% of Egypt's total gas consumption have switched from oil to gas.

BMI forecasts suggest that gas supply could reach 88 billion cubic meters in 2012 which with demand of an estimated 40 billion cubic meter provides export potential of 48 billion cubic meters.

Desert Line wins OMR 27 million Duqm airport contract

It is reported that well known Omani construction firm Desert Line Projects has been awarded a contract to execute the first phase of the Duqm International Airport project at a cost of OMR 27.253 million.

Official said that the Greenfield airport is key to the government’s goal of developing Duqm into a major economic hub on the Wusta coast centering on a world scale ship repair yard currently under construction and a huge petrochemical and industrial zone. An international size airport will not only support inward investment into this area, but crucially also open up large tracts of this remote, yet idyllic coastal stretch, to tourism.

Development of Duqm International Airport is being overseen by the Directorate General of Civil Aviation & Meteorology of the Ministry of Transport and Communications. US engineering consultants Parsons International are the design consultants for the project which will be built on a roughly 2,700 hectare site not far from where a future industrial hub has been envisaged.

As part of its contract, Desert Line Projects will develop access facilities and build utilities necessary to serve the airport during the operational phase. A total of 27 kilometers of access and landside roads will be built along with some 31,500 square meters of car parking facilities. A small treatment plant and reservoir for treated effluents will be developed as well. Significantly Desert Line Projects is also undertaking the first phase development of a domestic airport at Ras al Hadd. In July the company won a contract valued at OMR 9 million to construct access facilities as well as undertake site preparation works linked to the Greenfield project in the Sharqiya region.

Meanwhile 15 local and international construction firms have also applied to pre qualify for the second phase contract of the Duqm airport project. The line up comprises Combined Group Contracting, Desert Line Projects, Galfar Engineering, Strabag Oman, Waleed Associates, Hanjin Heavy Industries, Al Shanfari Trading, National Construction & Trading, Sarooj Construction, Larsen & Toubro Oman, Makyol, Consolidated Contractors Company Oman, Gamuda Berhad, Erenport insaat Sanayi ve Ticarte Anonym and Namavaran Ab Sad International.

The selected contractor will undertake the construction of a runway and related airfield infrastructure suitable to accommodate the biggest aircraft in operation today. The runway will also be designed to handle heavy cargo aircraft given the potential for airfreight operations in the future linked to the dry dock as well as the fish processing and other economic activities envisaged at Duqm. The airport terminal and associated facilities will be built in the third phase development of the project. Duqm airport is scheduled to be operational in 2012.

Algerian gas to Italy via Galsi pipeline plan moving ahead

MEED reported that the scheme to export Algerian gas to Italy is to move ahead with further details emerging on the scope of work on the project.

The 8 billion cubic meter a year pipeline which will transport gas to the Italian mainland though Sardinia was originally due for completion in 2009. However difficulties in obtaining authorization for the pipeline route and landing points added to delays which had already occurred due to protracted intergovernmental negotiations in 2007.

According to statements issued on October 1st 2008 by the Galsi consortium, which includes the Algerian state run oil firm Sonatrach and Italian gas operator Snam Rete Gas, the Galsi group will develop the engineering and obtain the main permits for the project, while the Italian firm will build the pipeline and subsequently manage the gas transport activities.

But the statements did not say when work would start.

Galsi is a joint venture between Sonatrach with 41.6% and three Italian firms: Edison with 20.8%, Enel with 15.6% and Hera Trading with 10.4%. The Sardinian authorities holds the remaining 11.6% stake.

Market panic leads to further dive in HRC export price

It is reported that Chinese HRC prices witness sharp decrease in the first trading day following National Day holiday. A lot of traders are shocked by the swift drop and the market panic grows on further.

On Shanghai market, commercial 4.75mm to 12mm HRC in 1500mm width was at CNY 4300 per tonne down by CNY 620 per tonne from September 19th. That for commodity grade 2.75mm HRC slip by CNY 330 per tonne to CNY 4550 per tonne.

As expected in late September, Shanghai price for thick HRC price have reached CNY 4500 per tonne. Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, it is likely to approach CNY 4100 per tonne to CNY 4000 per tonne if remains below CNY 4500 per tonne.

Export quotations for Q235 or SS400 HRC are prevailing at USD 710 per tonne to USD 730 per tonne FOB and some steel mills have lowered to USD 690 per tonne to USD 700 per tonne FOB. However, most traders say that there is almost no transaction despite much lower prices.

(Sourced from MySteel.net)

Baosteel roll out new premium connection oil well pipe line

It is reported that BaoSteel’s pipe branch has lately rolled out first premium connection oil well pipe with a diameter of 60.3mm indicating the newly added pipe line has succeeded in hot commissioning.

As per report, the newly launched pipe line is a key project to promoting product mix adjustment of BaoSteel’s pipe branch, boasting work of art equipments and technical standards. It is expected that it will further improve bulk and highly efficient production of oil well pipe products and the added value of the company, for satisfying appetite of the whole market.

(Source: Baosteel Daily)

POSCO considers acquiring steel company in China

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

According to a statement filed by the Pohang, South Korea based company as part of a regular update to the Korea Stock Exchange “POSCO is reviewing the investment opportunities by acquiring a steel company in China, but nothing has been determined yet.''

POSCO said in the statement “When any other decision is made, we will disclose immediately.”

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

Ms Ko Min Jin POSCO Seoul-based spokeswoman, couldn't be reached on her mobile phone for comment. South Korean markets and companies are shut today for a public holiday. The company is required by the Korean exchange to give updates every six months.

Pangang vanadium and titanium project starts construction

Sichuan Daily reported Pangang has put its Xichang vanadium & titanium resources comprehensive utilization project into operation in October after completed the relocation and prophase work lately. The Sichuan-based steel group is expected to pour CNY 17.141 billion in it.

As per report, the first stage project will realize annual capacity of 4.2 million tonnes of pig iron, 3.6 million tonnes of crude steel and 3.5 million tonnes of hot rolled sheet and will provide over 15,000 working positions for local people when the project launches full-scale operation.

The new base would double Angang Group's current annual sales revenue to CNY 60 billion after it completes

China major steel product price index (Sep 22 - Sep 26 2008)

(Sourced from MySteel.net)

Sinosteel increases stakes in its two members

It is reported that Sinosteel Jilin Carbon Co was lately reported to be informed that its holding company Sinosteel Corporation has increased 729,950 stakes in it as equal as 0.26% of the total, through its exclusively-funded subsidiary Sinosteel Property Management Limited in the secondary market. The average price per share for the incremental part is CNY 4.33.

As per report, till September 26th Sinosteel and its ally have held over 143.16 million shares or 50.6% of the company. Alike, Sinosteel' subsidiary Sinosteel Investment Corporation added some 240,000 shares in Sinosteel Anhui Tianyuan Technology Co through secondary market of Shenzhen Securities Exchange, 0.286% o