TATA Motors inks MoU with Gujarat for Nano project

Mr Ratan Tata chairman of TATA Group, with Mr Narendra Modi chief minister of Gujarat by his side announced that the mother plant for Nano would come up at Sanand near Ahmedabad.

A State Support Agreement was signed by government officials and senior Tata Motors executives.

The state government today handed over 1,100 acres of prime land for the project, where Tata Group will invest INR 2,000 crore to manufacture Nano and its variants including an electric car and CNG car.

The plant will have a capacity of manufacturing 250,000 cars per annum in the first phase, which will build up to 500,000 cars per annum. The project complex will also house a vendors' and ancillary park accommodating 60 small and medium units and could be bigger than the project originally envisaged.

Mr Tata said that "We chose Gujarat because of conducive and industry friendly environment as well as infrastructure of the state. It is a special day because we’ve been through a sad experience from a small quarter of West Bengal in spite of the good support from that state government. As a result, time was a major constraint for us. Also, location of the land that was being offered was very attractive. We were impressed by the pace at which Gujarat government facilitated the project shift including the land acquisition. We promise to become a good corporate citizens of Gujarat and stand for all that Gujarat stands for.”

Flat products prices continue to decline in India

Mumbai

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Indore

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Ahmedabad

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Kanpur

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We have not provided index owing holidays in Kolkata and other major steel trading centers which are closed on account of Durga Puja and Dusshera.

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Baldota arm Aaress to setup steel plant at Koppal in Karnataka

It is reported that Baldota Group’s Aaress Iron & Steel Ltd plans to setup steel plant worth INR 4700 crore at Koppal in northern Karnataka to cater the needs of the automobile industry and other high value added engineering segments.

The facility, spread across 1,100 acres, will produce special carbon and alloy steel grades. The project will be executed in two phases and the company aims to start production by mid 2010 with an initial capacity of 1.2 million tonnes annually. Furthermore, AISL proposes to increase the annual capacity to 5 million tonnes by 2012, which would be used for producing hot rolled flat products.

According to the company, two third of the investment for the first phase will be raised through debt and the facility would manufacture special carbon and alloy steel grades, billets and wire rods during the first phase.

Waive off exports levy on steel - ASSOCHAM

India Infoline News Service reported that the industry chamber demands removal of export duty on all steel products and a 5% duty on steel imports to ensure fair play for domestic steelmakers

According to the Associated Chambers of Commerce and Industry of India, the global slowdown has started impacting the Indian steel industry disturbing their expansion plans and threatening their viability. The industry chamber has demanded immediate removal of export duty on all categories of steel and imposition of 5% duty on steel imports to ensure fair play for domestic steelmakers.

In addition the ASSOCHAM has also called for re imposition of 14% countervailing duty on all imports of bars and structural and recommended restoration of export incentives under Duty Entitlement Passbook Scheme for domestic steel producers to make their exports viable.

In a representation submitted to secretary to the ministry of steel, Mr Sajan Jindal president of ASSOCHAM said that henceforth policy initiatives taken by the government between March to June 2008 for steel producers have resulted in steel imports increasing sharply by 26% between April to July 2008 and steel exports during the same period witnessing a sharp fall of 32%.

He said that “What is now required is that steel meant for exports should be totally exempted from export levies and imports of steel be subjected to 5% steel import duty. Re imposition of 14% counter veiling duty on bars and structural is called for with steel exports brought under DEPB scheme to make Indian steel exports viable and discourage imports of steel since the domestic industry is facing a slowdown. As a result of which its viability has come into great question.”

Referring to the series of measures taken by the government between March to June 2008 on export and import of various categories of steel products, Mr Jindal said that the government suspended DEPB benefits on steel exports and import duty on various categories of steel products was reduced from 5% to nil.

The government withdrew the counter veiling duty on import of Re bars and structural and export duty of 10% ad valorem on FOB prices was imposed on various categories of steel and was subsequently enhanced to 15% ad valorem vide Notification No. 77/2008 dated 13th June 2008.

Mr Jindal said that the government took these steps to discourage exports so as to increase domestic availability of steel and also contain inflation. He said that “This has resulted in steel import between April to July 2008 increasingly sharply by 26% and steel exports during the same period saw a steep fall by 32%.”

The representation further points out that the domestic steel industry is finding themselves to be highly uncompetitive and in a difficult situation. The cost of production remains high especially with high prices on imported coking coal, coke and ferroalloys etc. The falling steel prices have had a double impact and could snowball into a serious crisis, resulting into cutting down of capacity and leading to closing down of smaller plants. The situation has also necessitated the review of capacity expansion and is likely to reduce its momentum.

Impact of prevailing adverse situation has significantly reflected on steel demand, steel being one of the core economic commodities. There is a drastic fall in domestic demand as well as international demand with international price falling by 15% to 40% in various categories of steel.

To further add to the problems, the domestic steel producers are now faced with the onslaught of cheap imports from countries like China, Russia, CIS and Thailand. Some of these countries have the advantage of raw material integration and thus are offering their products at substantially reduced prices.

TATA Corus to adjust steel production amid weak demand

Reuter reported that Corus demand had slowed and it was taking steps to adjust its steel production accordingly.

The report cited a Corus spokesman as saying that “There is clearly a slowdown in steel demand which we have noticed in the United Kingdom in export markets and in Southern Europe. We are taking steps to adjust our production to tie in with the new demand realities and to maintain a low level of stocks.”

As per report, the company owned by TATA Steel now produces more than 20 million tonnes of crude steel a year. A collapse in steel prices, producers and traders de stocking instead of buying new material and a gloomy demand outlook have helped force steelmakers across Europe to cut production.

Corus spokesman said that the company was not greatly affected by the spot price changes as a significant amount of its contracts were based on a longer term fixed price. He said that “It is important to note that the effect has been most prominent in the spot and short term quarterly contract markets, not in longer term fixed price contracts which make up a sizeable proportion of Corus' sales.”

Corus statement follows an announcement by the world's top steelmaker ArcelorMittal of a 15% cutback in production in an attempt to maintain prices.

But it contrasted with a statement by the World Steel Association that it was confident that both 2008 and 2009 would be years of demand growth in steel. Mr Ku-Taek Lee chairman of the World Steel Association and chairman & CEO of POSCO said that “We are in a period of high economic uncertainty. He said that however we continue to expect growth in steel demand in 2009 and for the medium term, above the world GDP growth rate”.

Sponge Iron and pencil ingot prices decline further in India

Melting scrap
80:20
HMS

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Sponge iron

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Pencil ingot

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Long products prices stable in major centers in India

Mumbai

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Chennai

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Delhi

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Ahmedabad

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Kanpur

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Indore

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Raipur

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TATA Steel wins Deming Application Prize for 2008

It is reported that world's sixth largest steel maker TATA Steel on Tuesday has become the first integrated steel company in the world, outside Japan to be awarded the Deming Application Prize for excellence in total quality management.

TATA Steel in statement said that the award for 2008 was announced by the Deming prize committee instituted by the Japanese union of scientists and engineers, the apex body spearheading quality movement. It added that the formal award ceremony will be held on November 12 this year in Tokyo.

Expressing satisfaction over the accomplishment, Mr B Muthuraman MD of TATA Steel said that “No other activity made us think so deeply about our business and relationships than the process of applying for the Deming Prize.”

He added that "Total quality management is a fundamental way of managing business and every organization can gain from institutionalizing the culture necessary to win this prize.”

He dedicated this recognition to the employees of Tata Steel, its customers and business partners who have consistently embraced the culture of continuous improvement and demonstrated a great teamwork leading to several recognitions in the last 20 years since the TQM journey started at the Steel Company in 1988.

The Deming prize, established in December 1950 in honor of W. Edwards Deming, was originally designed to reward Japan companies for major advances in quality improvement. It has grown, under the guidance of Japanese Union of Scientists and Engineers and is now also available to non Japanese companies. The prizes are awarded to an individual or company and other operating organizations, factories located outside Japan. The Union of Japanese Scientists and Engineers are the administrators of the process and the examiners are typically university professors with areas of expertise in quality management. Worldwide, 160 companies have won the Deming Application Prize since the time it was instituted. Of these 160, 15 companies are Indian, primarily from the automotive sector.

Directory of Autoparts Makers in India

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Vizag Port turns 75

BL cited Mr MS Rao deputy chairman of Visakhapatnam port as saying that Visakhapatnam port which became operational on October 7th 1933 turns 75 on Tuesday and the Visakhapatnam Port Trust is planning to hold a series of events on the occasion of Platinum Jubilee.

Mr Rao at a press meet on the eve of the Platinum Jubilee said that the passenger ship SS Jaladurga arrived at the port on the historic date, but the formal inauguration took place on December 19th of that year by the then Viceroy Lord Wellington.

Mr Rao said that the port was built at a cost of INR 3.78 crore with 3 berths initially and since then it had made giant strides. Last year the port handled 64.6 million tonnes of throughput and the target for the current year was fixed at 65 million tonnes. The VPT handled 33.8 million tonnes of cargo during the current financial year as against 31.4 million tonnes during the corresponding period in the previous year.

Mr Rao said that there was no doubt that the VPT would have a very bright future, notwithstanding competition from the Gangavaram port and other ports, and projects worth INR 3,000 crore were under implementation to augment the port capacity to 125 million tonnes by 2012.

He said that “The present capacity of the port is 61 million tonnes but we have already exceeded it. By 2012, the projected cargo is 80 million tonnes and we have taken up projects to augment the capacity to 125 million tonnes at a cost of INR 3,000 crore. Roughly, half of the investment comes from the private sector.”

He added the general cargo berth at the outer harbor was being upgraded to handle 2 million DWT vessels, as against 1.5 million DWT vessels and mechanized handling facilities would be installed for coal. The major project would cost INR 400 crore.

South Western Railway zone freight loading up by 14% in H1

BL reported that hike in freight rate for iron ore cargo the Hubli headquartered South Western Railway zone has been able to manage a growth of 14.21% in originating freight traffic in the H1 of the current financial year.

Mr Praveen Kumar GM of South Western Railway said that that the SWR recorded an originating freight loading of 22.5 million tonnes in the first six months of the current financial year as against 19.7 million tonnes in the corresponding period of the previous fiscal, recording a growth of 14.21%. However he added that the last two months of the current fiscal were not so satisfactory.

Mr Kumar said that “In September we loaded 10% less than last year and he attributed this to the uncertain situation in the iron ore export market.

When asked about the amount of iron ore cargo shifted from railway to road after the increase in the freight rate, Mr Kumar said that around five to six rakes a day which were earlier moving through railways, were shifted to road.

He said that monsoon months are not good for iron ore business, he added that some of the ports in the west coast such as Mormugao, Karwar and Belekeri remain closed during that period. He said that “Normally June to August are the lean period for iron ore business. The good season for the iron ore begins in October.” He said when asked about the domestic loading of iron ore cargo, he added that one of the major domestic steel companies has cut down on the iron ore intake in the last 10 days.

Mr Kumar said that “The finished steel product dispatches have come down in September. That is an indication that major steel producer has slowed down steel dispatches, which is again hit us in terms of carrying more outward traffic.” He further added that Iron ore and steel products are attractive traffic for SWR zone as they are high rated traffic.

15,000 MW new grid interactive capacity in 11th plan

According to the Vol III of Plan document, the 11th Plan has targeted to add 14,000 MW capacity of grid interactive power through new and renewable energy sources. In addition 950 MW of off grid wind/hybrid, small hydro and bio mass power and around 50 MW of solar power is also planned to be achieved that would take the total capacity through NRES to around 15,000 MW.

The various program of the ministry of new & renewable energy for the 11th Plan include:
1. Grid Interactive and Distributed Renewable Power.
2. Renewable Energy for Rural, urban, industrial and commercial Applications.
3. Research & Development.
4. Equity support to IREDA

In grid connectivity, wind power would be the major constituent with 10,500 MW capacity followed by small hydro 1,400 MW and biomass 1,200 MW. Cogeneration would add 500 MW and urban and industrial waste to energy sources 200 MW each. Total power capacity targeted for the plan is around 92,577 MW and renewable would account for around 9.7% of total grid connected capacity of 2.25 million MW at the end of the plan period. Public sector outlay for NRES has been fixed at INR 10,460 crore while the total investment requirement for projects would be over INR 60,000 crore.

Capital subsidies that encourage investment without ensuring outcomes would be phased out. Incentives provided for grid connected power from renewable sources would be linked to generation and not to power capacities created. Thus power regulators will be asked to create alternative incentive structures such as mandated feed in laws or differential tariffs for grid interactive power. Grid interactive renewable power may also be promoted by mandating a renewable portfolio standard for all power distribution companies and providing a subsidy for each unit of renewable electricity purchased. The utilities would be free to meet their requirement by purchasing certificates from other utilities that may have a surplus of renewable electricity in their portfolios.

To increase availability of finance for new and renewable energy, IREDA is to be restructured by broad basing its equity structure. IREDA should be permitted to issue Capital Gains Bonds similar to those issued by REC and NHAI to the tune of INR 300 crore per year to 400 crore per year during the Plan. A national policy has to be finalized to create a competitive bio fuels industry.

The performance of grid interactive NRES over the 10th Plan had exceeded targets with commissioning of 6,711 MW more than twice of 3,075 MW envisaged for the plan. By the end of the Plan, the contribution of power generation from NRES had reached 10,161 MW. Of this wind power accounted for 7,082 MW, small hydro 1958 MW, biomass 1118 MW and solar 3 MW.

Bihar may implement Dagmara hydro project on its own

Project Monitor reported that Bihar State Hydroelectric Power Corporation Limited might implement the 126 MW Dagmara hydropower project on its own instead of the public private partnership route.

Government consultancy Water & Power Consultants Limited is currently preparing the detailed project report for the 3x42 MW Dagmara projects that will take shape in Piprahi village of Supaul district. The DPR is expected to be ready by November end and a final decision on the implementation mode will be taken thereafter.

Bihar State Hydroelectric Power Corporation Limited officials said that the Kosi River basin had an untapped hydropower potential of 223 MW spread over 18 sites of which the Dagmara project is the largest. In early 2007 the ministry of new and renewable energy provided a subsidy to BSHPCL to undertake feasibility studies on 10 of these 18 projects spread over the Supaul, Saharsa, Madhepura and Arariya districts. While consultancy work on these 10 projects out of which the 12 MW Arar Ghat is the largest is under way, some smaller projects might be commissioned within the 11th Plan period.

Official said that the state government agency has also initiated steps to develop the 450 MW Indrapuri hydropower project on build own operate transfer basis. RfQ documents are being issued up to October 25 with a pre bid conference scheduled for November 10th 2008.

As per report, the Indrapuri project will spread over Rohtas district of Bihar and Garhwa district of Jharkhand. Harnessing the Sone River, the multipurpose project aims at hydropower generation, irrigation and flood control. Estimated to generate over 750 GWH of power annually the project will be developed on BOOT basis under a 30 year concession period.

Enercon plans wind power plants in Haryana

It is reported that Enercon Limited plans to venture in Haryana. The company signed MoUs over a year ago for installation of 140 MW wind power plants in the state.

The wind velocity and the state is low at present the company is assessing the suitability of various sites for wind power projects. Mr Dipankar Das Sharma Head of Business Development & Operations, Madhya Pradesh, Enercon Limited said that “If at a particular location wind resource is found to be good, the company will start development of a wind power project at that site.”

At the same time, other factors will also be considered. Mr Sharma is also responsible for development of projects and their operations in Haryana region aid Mr Sharma. In the financial year 2009-10 the company plans to install further 60 MW to 80 MW wind power plants in Madhya Pradesh at various locations.

Mr Sharma said that “Depending on the circumstances, the plans and policies of the company need to be re framed. The company is monitoring wind speeds at various locations in Madhya Pradesh like Dewas Mansaur and Shahjanpur. The company also plans to take up the study of wind speeds at Bhopal and its surrounding places like Sehore and Hoshangabad.

TATA Steel scholarship for seven students from Kalinga Nagar

Seven more Students from the TATA Steel rehabilitated families at Kalinga Nagar have received the TATA Steel Parivar Scholarship this year. The scholarship program was introduced since last year for the rehabilitated families of Kalinga Nagar termed as TATA Steel Parivar.

The program aims at encouraging the members of TATA Steel Parivar who are keen to pursue higher education to receive professional and technical qualifications. Mr B K Singh vice president of Orissa Project gave away the scholarship to the students at a functions held at Kalinga Nagar.

As part of its corporate social commitments towards rehabilitated families in Kalinga Nagar, TATA Steel announced this scholarship program for the members of the Tata Steel Parivar. In the current year, out of seven students selected, TATA Steel is sponsoring one member of TATA Steel Parivar to pursue B-Tech, while the other six members have opted for diploma in engineering in different disciplines. Last year, under this scholarship program the company had sponsored a medical student and five diploma engineering students.

Kandla Port Trust invites bids for expansion projects

BL reported that Kandla Port Trust is planning massive capacity expansion and has invited bids for several projects, including 4 multi purpose berths, cargo handling facilities at Tuna Tekra where a special economic zone is to come up and additional facilities at Vadinar.

Mr MA Bhasakarachar deputy chairman of Kandla Port Trust said that “At Vadinar which is about 260 kilometer by road from Kandla, we’ve three single point moorings two by Indian Oil and one by Essar Oil. But we would like to explore opportunities for new facilities for handling any kind of traffic not only liquid bulk by way of the SPMs but also dry bulk and containerized traffic as also other facilities such as bunkering, shipbuilding and ship repair.”

Mr Bhasakarachar said that “Vadinar offering an average draught of 34 meters should be an ideal choice for any private entrepreneur keen to invest in port projects.”

The port authorities as the deputy chairman said that it have made some progress with regard to constructing four berths in BOT basis.

The deputy chairman of the largest cargo handling port said that 11th firms have been short listed. He said that “We’ve also made upfront proposal to the Tariff Authority for Major Ports for probable tariff structures in respect to the proposed berths and we understand TAMP is about to firm up its view on this and we’ll go for the next step once the notification has been issued by TAMP.”

He said that as for the plan to have 4 berths constructed at Tuna Tekra about 10 kilometer from the Kandla port, nearly 40 firms had obtained the papers and preliminary discussion had been initiated with 10 of them. Mr Bhasakarachar said that “Since the last date is to be extended, we hope to get more responses.”

The port has 12 berths and the proposed berths will be numbered 13, 14, 15 and 16.

Punjab to accelerate small hydropower plants

Project Monitor reported that Punjab that has taken rapid strides in the development of biomass based power project is also seen pursuing small hydropower projects in a significant way.

Senior officials of nodal agency Punjab Energy Development Agency said that during the ongoing 11th Plan period ending March 2012, the state expects to add 34.5 MW new capacity through small hydropower projects.

PEDA officials said that Punjab has a total potential of 140 MW through small hydropower projects against which 29.55 MW capacity is under operation. Punjab does not have a separate state government agency for implementing small hydropower projects. Punjab State Electricity Board implements small projects downstream of large hydropower schemes. To boost the sector, private participation is being elicited for micro and mini hydropower schemes. The entire 34.5 MW that is currently under construction and targeted to commission before March 2012 is through private entrepreneurship with projects being offered on BOOT basis under a 30 year concession period.

In a significant development, the foundation stone for 5 canal based power projects aggregating around 8 MW was laid last month in Ludhiana district. These projects coming up on the Abohar Branch Canal will be developed by Gurgaon headquartered Polyplex Corporation Limited.

A senior official said that a special purpose Abohar Power Generation Private Limited has been formed to implement the 5 projects namely Khanpur, Sidhar, Akhara, Gholian and Channowal.

He said that “Digging work has started on all sites and the projects will be commissioned during 2009-10. For polyester film maker Polyplex which is now aggressively growing in the renewable energy space these projects will further the company's presence in Punjab. The group already has 6 operational small hydropower projects aggregating 8 MW in Punjab, besides some other construction. The official added that while 3 operational projects Salar, Dolowal and Bhanbhura are being managed by Punjab Hydro Power Private Limited another special purpose vehicle Kotla Hydro Power Private Limited is implementing three schemes Babbanpur, Killa and Sahoke.

Recession reports - India remains upbeat on growth

Reuters cited Mr P Chidambaram finance minister of India as saying that India's economy will up by 8% this fiscal year and rebound to 9% next despite the rout in global markets which has triggered recession fears in industrialized nations.

Mr Chidambaram said that “There is a storm blowing across the world. India will be affected to some extent, although indirectly, but Indian business and industry have placed India in a situation where we can weather the storm.”

Mr Chidambaram cited robust revenues, exports and investment planned by Indian corporate as major positive factors which would help India through the global crisis. He said that “Huge capacities are being added in power, steel, commercial vehicles, passenger cars and two wheelers. What is there to fear? There is nothing to fear but fear itself.”

Mr Chidambaram said that “We will remain vigilant. Our regulators have shown great agility. Going forward, we can still end this year with a growth rate of 8.0%. I am confident that in 2009/10, the growth rate will bounce back to 9.0%.”

The remarks made at an award ceremony for top businessmen late on Monday were released by the finance ministry on Tuesday. Indian stocks have taken a battering in recent weeks and the rupee on Tuesday weakened beyond 48 to the dollar to its lowest since December 2002 as investors cut their exposure to riskier assets amid the financial turmoil.

Growth in the June quarter eased to an annual 7.9% the slowest pace in 3 ½ years losing momentum as services slowed sharply and higher oil prices and interest rates weighed.

ONGC Videsh eyeing oil blocks in Angola and Brazil

Oil and Natural Gas Corporation announced that it is exploring the options to pick up blocks in Angola and Brazil.

ONGC Videsh, ONGC’s overseas arm, has set a target of crossing 10 million tonnes of equity oil production abroad. For this ONGC is projected to pick up oil blocks in African and Latin American sub continent, to ramp up its production capacity.

In a JV ONGC has already tied up for two oil blocks in Venezuela.

SA seeking Indian business partners

Project monitor reported that the Premier of North-West Provincial government of South Africa, Ms Edna Molewa with a high powered official delegation visited Delhi, Orissa and Mumbai scouting for Indian business partners for developing four key sectors mining, tourism, agriculture, manufacturing in her province.

Ms Molewa at a recent meet in Mumbai said that “We invite Indian entrepreneurs to come to the North-West Province and explore lucrative investment possibilities.”

Dharavi redevelopment plan ob course with revised schedule

Project monitor reported that INR 9,300 crore, Dharavi Redevelopment Project is finally back on course with the Maharashtra government finalizing a revised schedule for the much delayed bidding process. Work on the project will start 2009.

According to Mr Gautam Chatterjee VP of Maharashtra Housing and Development Authority, also officer on special duty for the project, the tentative timeline has been approved in principle by Mr Vilasrao Deshmukh CM of Maharashtra.

The 19 short listed consortia of global realty majors will be issued amended bid documents by September end. They will present their master plans by mid October following a deliberative process regarding each bid's technical merits. Financial bids will be opened by November end.
If adhered to the timeline, the winning bids will be announced year end and work would then begin by early 2009. It is mandatory for bidders to demarcate spaces for economic activities in their master plan since Dharavi is a hub for manufacture of leather goods, food products, clothing and artificial jewellery besides a large recycling industry. A conceptual master plan, technical specifications of amenities and mandatory infrastructural development should be submitted by the bidders.

As per report, the project aims at re housing 57,000 slum families in free homes, to be built by investing real estate developers who then exploit the FSI of 4 for commercial realty development. The minimum size of all flats for slum dwellers is 300 square feet those who currently own more than 300 square feet will be eligible for 400 square feet homes, if they pay construction cost for the excess 100 square feet.

The project management consultant is architect Mr Mukesh Mehta.

JHK and APM Terminals increase stake in South Asia Gateway Terminal

It is reported that Sri Lanka’s John Keells Holdings has reportedly bolstered its stake in South Asia Gateway Terminals to 37.97% following its acquisition of a 4.22% tranche from the Asian Development Bank.

As per report John Keells Holdings is said to have paid USD 4.41 million for the shares when ADB exercised a put option to sell a 7.5% equity interest in SAGT.

The balance was snapped up by APM Terminals which increased the size of parent, the Maersk group’s stake to 29.5%. JKH had acquired a 7.5% stake in SAGT in October 2006.

GVK Power divests stake in GVK Aviation Private Limited

GVK Power & Infrastructure Limited has announced that the Company has divested the entire equity holding in its wholly owned subsidiary that is GVK Aviation Private Limited. Hence effective September 30th 2008 the said Company is no longer a wholly owned subsidiary of GVKPIL.

Power ministry seeks higher gas allocation

It is reported that the ministry of power has requested the centre to raise natural gas supply to the power sector alongside the anticipated increase in availability of natural gas in the country in the coming years. The ministry said that the power sector had been given high priority in natural gas and its supply should therefore improve substantially.

Currently the power industry consumes about 42% of natural gas. Out of 38.14 million standard cubic meters per day of gas, reported to be used by power plants, about 25.12 million standard cubic meters per day is APM gas. The sector also consumes about 13 million standard cubic meter per day of market price gas including re gasified liquefied natural gas. Out of the total 53 million standard cubic meters per day of APM gas available, about 25 million standard cubic meters per day is supplied to the power sector. There is however a shortage of 27.53 million standard cubic meters per day of gas in the sector.

The empowered group of ministers at a meeting held in May 2008 decided that out of the 40 million standard cubic meters per day of natural gas expected to be produced from Reliance Industries' KG D6 field during 2008-09 up to 18 million standard cubic meters per day would be supplied to gas based power plants lying idle or underutilized and which were likely to be commissioned during the current year. The liquid fuel plants which are now running on liquid fuel and could switch over to natural gas would also be given priority. Further any gas available after supplies to existing fertilizer plants, LPG plants and city gas projects would also be supplied to the power plants.

The power ministry has asked the Centre to further augment the projected supply as the production of natural gas from KG D6 field was likely to increase up to 80 million standard cubic meters per day by 2011-12.

As per report, most of the gas based power plants which have been completed but are lying idle due to the unavailability of fuel are connected by pipeline.

GAIL explores investment scope in China

Financial Express reported that GAIL India proposes to explore investment opportunities in China in the areas of Coal Gasification, City Gas Distribution and Liquefaction businesses. GAIL India’s move comes close on the heels of the joint venture formed between GAIL India and China Gas.

As per report, the JV company GAIL China Gas Global Energy Holdings Limited aims at identifying the projects in China. The first board meeting of the JV is expected to hold in November.

Informed sources said that GAIL India during the recent visit by its officials was informed that coal price is market determined which is monitored by the Chinese Government. Natural gas price is fixed by central government Coal gas price is also market determined and ensured by local government before project is started.

Further all ceramic companies use two section gas producing technology and government regulate the coal gas price using cost pass through mechanism. Further two section gas producing technology uses anthracite as feedstock, its price is double than long flame coal and bituminous coal which are proposed to be used in our project.

TATA likely to drive Nano to Gujarat

ET reported that Gujarat is emerging as the favorite location to replace Singur for the setting up of the mother plant for TATA Motors’ Nano. The state faces tough competition from Andhra Pradesh and Karnataka, but sources in the state government indicate that industry friendly Gujarat is likely to bag the coveted project.

Sources in Gandhinagar said that TATA Motors’ MD Ravi Kant is very likely to meet chief minister Narendra Modi on Tuesday to discuss the location.

As reported by ET, Gujarat has readied at least four sites for the Tatas to choose from. While Sanand and Mundra are the favorites, Khambat and Dahej too are being showcased for the project, which would act as a major booster for any state that bags it. There are also strong rumors, which ET was not able to confirm, that Mr Tata too would fly down for a meeting with Mr Modi on Tuesday.

When contacted by ET, chief secretary D Rajagopalan said that things were yet to be finalized and that the company officials are still going around the country reviewing offers by various states.

However, by Monday evening, speculation was rife that the Nano would eventually be rolled out from Sanand, 30 km away from Ahmedabad. The state has already allocated 2,200 acres to the company which requires 1,000 acres to set up the mother plant, targeting to churn out 400,000 cars per annum.

5 leading shipping lines team up for North-East Asia-Oz trade

It is reported that APL, Hamburg Süd, Hapag-Lloyd and Hyundai Merchant Marine have teamed up with Evergreen to provide a new North-East Asia to Australia service later this month. The new alliance added that the move was brought about by significant cost increases and very poor freight rates both southbound and northbound.

A joint statement said that the group of 4 AAS partners together with Evergreen will jointly provide one of the most comprehensive service networks in the trade with 2 fixed day weekly loops. All vessels now deployed in Evergreen’s TCA service will no longer trade on the North-East Asia to Australia route. Evergreen will instead purchase slots on the AAS southern loop from the fourth week of this month.

A joint statement added that while the above two loop system will allow the lines to offer better port coverage in Asia and some of the fastest transit times in the trade, the cooperation will result in a net capacity reduction equivalent to 800 TEUs per week or 3.2% of total trade capacity.

Northern loop rotation will be Yokohama, Osaka, Busan, Qingdao, Shanghai, Ningbo, Melbourne, Sydney, Brisbane and back to Yokohama. The rotation on the southern loop will be Kaohsiung, Yantian, Hong Kong, Melbourne, Sydney, Brisbane and back to Kaohsiung.

The service will be operated with 5 modern 3,500 TEU nominal vessels and 4 modern 2,500 TEU nominal vessels. Hamburg Süd will provide 3, HMM and APL 2 vessels each while Hapag-Lloyd and Evergreen will supply 1 vessel each.

WSA gives short range outlook on global steel market

The World Steel Association Executive Committee has reviewed its original Short Range Forecast issued in April 2008. The executive has recognized that the market is going through rapidly changing circumstances but noted however that 2008 will still be another year of growth for the steel industry.

Mr Ku Taek Lee chairman of the World Steel Association and 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 this year. We are currently reviewing our forecasts for 2009, which had been prepared this summer before current events. However, we continue to expect growth in steel demand in 2009 and for the medium term, above the world GDP growth rate.”

The World Steel Association is one of the largest and most dynamic industry associations in the world. It represents approximately 180 steel producers, national and regional steel industry associations, and steel research institutes. Its members produce around 85% of the world's steel.

The projections forecast by the economics committee consider both real and apparent steel use. Apparent steel use reflects the deliveries of steel to the marketplace from the steel producers as well as from importers. These figures, however, may differ from the amount of steel actually being used with the difference being added to, or drawn from, inventories.

ThyssenKrupp confident of steel boom due to emerging market

It is reported that ThyssenKrupp is confident that the steel boom will continue due to emerging markets, despite the current financial turmoil. The top executive at ThyssenKrupp's core steelmaking division expressed confidence that emerging markets would keep the steel boom alive next year even as economic growth slows.

Mr Karl Ulrich Koehler CEO of ThyssenKrupp Steel said that "We are confident. The optimism is based on the continued favorable outlook for the global steel markets. In particular, demand from Asia, Latin America, the Near East and the Commonwealth of Independent States will increase at an above average rate in the coming years and considerably influence the world market."

Mr Koehler said that his business in the fiscal year ended in September 2008 would not match the record pretax profit seen prior year. He added that "Operationally we will remain roughly on par with the previous year's level."

He said that there were no further construction delays for its slab mill in Brazil and processing plant in the US state of Alabama, nor did either project go any further over budget. He also reaffirmed his parent group's full fiscal year forecast for revenue of around EUR 53 billion and earnings of more than ERU 3.2 billion before tax and major non recurring items.

Nippon Steel to seek 10% increase in domestic plate prices

Bloomberg reported that Nippon Steel Corporation is asking for a 10% rise in plate steel prices from Japanese shipbuilders to offset materials costs.

As per report, an increase to as much as JPY 110,000 a tonne would take effect from October 1st 2008 under contracts with domestic shipbuilders and machinery makers. Nippon Steel raised prices by 40% to a record in the first half ended September 30th 2008.

Nippon Steel, which forecasts a 28% drop in annual profit, needs to raise prices to offset a tripling of costs for coking coal and a surge of as much as 97% in iron ore. A price increase would also narrow the difference with South Korean shipyards, which are paying more than Japanese customers such as Mitsubishi Heavy Industries Limited.

Mr Shoji Muneoka president of Nippon Steel in July 2008 said that soaring material prices would add JPY 35,000 a tonne to costs this year. Nippon Steel would ask customers to pay more for the metal after it agreed to a fourfold increase in semi soft coking coal prices retroactive to April 1st 2008.

Nippon Steel has raised spot prices for domestic wholesalers by about 50% since the quarter ended March 2008, when the company said its average product price was JPY 80,200 a tonne. It raised plate prices for South Korean yards including Hyundai Heavy Industries Co by as much as 50% to a record JPY 150,000 a tonne as costs surged.

Salzgitter sees output goal reached by 2009 end

Reuters reported that German steelmaker Salzgitter AG could reach its annual steel output target of 9 million tonnes by the end of 2009 or early 2010.

Mr Wolfgang Leese CEO of Salzgitter said that revenue in 2008 would rise to around EUR 12 billion from EUR 10.2 billion in 2007. He added that "We will increase our steel production to 9 million tonnes by end 2009 or early 2010. With that, the issue would be concluded. We do not want more."

Mr Leese said that its steel business was proceeding very well in the fourth quarter. He added that the steel industry would not escape the impact of the financial crisis but Salzgitter would not particularly suffer because only around 1.6 million tonnes of the 7 million it produces go to the car industry.

He further added that in addition to the automotive business, Salzgitter also supplies to the infrastructure and energy industries while demand for its products is also high in shipping, ports and high rise buildings.

SMS and Elex form a new company SMS ELEX AG

To strengthen their activities in the field of environmental engineering, SMS Demag AG, a company of the SMS group of Germany, together with Elex AG jointly founded a new company, SMS ELEX AG, on October 1st 2008. This company has its headquarters in Schwerzenbach near Zurich in Switzerland.

The release said that “By setting up SMS ELEX AG, SMS Demag and Elex wish to jointly further pursue their strategy of improving the environmental and energy balance of their plants and of making their processes more economical for their customers.”

The release said that “In future, SMS ELEX AG will produce a new generation of filter systems for cleaning flue gas in steelworks. These filters effectively remove dust from the process gases while keeping costs low and thereby meet the most stringent environmental standards. The new company will also be focusing on the development of new flue-gas cleaning technologies for steelmaking.”

The release added that “SMS Demag and Elex have a history of successful cooperation on numerous orders in the field of electrostatic precipitators. The setting up of SMS ELEX AG will serve to further consolidate and enhance the close relations between both companies.”

Elex AG is a world leader in the field of flue gas cleaning and offers electrostatic filters, hybrid filters and catalytic nitrogen removal systems.

Vietnam reduces export tariff on billets to 5%

According to a new decision issued by Vietnam’s ministry of finance, from October 7th 2008, the export tariff for steel billet will be decreased from 10% to 5%.

Under the decision issued on October 6, this new tariff will be applied to those exported items which are registered with the custom agency from October 7th 2008.

This is the second tax cut on steel billet export over the past two week. Earlier on September 22, the Ministry of Finance halved the steel billet export tax from 20% to 10%.

Tenova acquires controlling interest in Core Furnace Systems

Effective October 1st 2008 Tenova has finalized the acquisition of the controlling interest of Core Furnace Systems Corp located at Pittsburgh and leader in the North American market for the design and supply of industrial furnaces for reheating and heat treatment, carbon processing and electric smelting and refining furnaces as well as melt shop equipment and services.

The release said that “With the addition of CORE to its team, the Tenova Group will consolidate and strengthen its position in the North American metals industry by providing increasingly competitive skills and services to this important market.”

It added that “CORE will also benefit from being part of Tenova’s vast global resources network as it will provide further opportunities to incorporate in its current technological portfolio additional technologies such as innovative submerged arc furnace designs with Tenova Pyromet and strip processing lines with Tenova heritage of Aetna Standard Company.”

As per release “Tenova’s leading position in the North American industrial furnaces will be further strengthened by leveraging the synergies of CORE with LOI Inc the Pittsburgh based Company key player in industrial furnaces for the steel and Aluminium industry.”

Tenova’s consolidated presence in NAFTA market includes
1. Tenova Goodfellow, the Canadian research center for Steelmaking
2. Tenova HYL, the Monterrey Company specialized in Direct Reduced Iron plant
3. Pomini Inc, the Pittsburgh Company specialized in roll grinders
4. Open pit mining equipment manufacturer Tenova TAKRAF, located in Denver, Colorado and Calgary, Alberta, Canada.

Corrigendum - SEC charges former Gerdau board member

It was reported on October 2nd that US Securities and Exchange Commission filed a settled enforcement action against Mr Carlos Petry, charging him with insider trading in the stock of a company acquired last year by Gerdau Ameristeel.

We wish to clarify that Mr Carlos João Petry, the person identified in the article, is no longer a member of the Gerdau Administration Board. In January 2008, Mr Petry resigned as a member of the Gerdau SA Board of Directors and retired from the company.

Gerdau has also reiterated that it was absolutely unaware of a former board member’s decision to purchase Chaparral Steel stocks during the time when Gerdau Ameristeel was in the process of analyzing Chaparral Steel’s acquisition.

Gerdau also reaffirmed its respect for all laws and regulations governing the stock market and underscores its requirement that all its employees fully comply with the Company’s ethical guidelines in all their activities.

Inconvenience caused is regretted.

Directory of Shipyards and Marine Service Providers in India

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

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

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

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

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

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

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

Price:
USD 150 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form

How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com, who will send you an invoice of the report.

LME appoints Mr O'Hegarty as deputy CEO

The London Metal Exchange has appointed Mr Diarmuid O’Hegarty as Deputy Chief Executive of the Exchange. Mr Diarmuid will continue to run the Regulation and Compliance activities of the Exchange and deputize for CEO Mr Martin Abbott in all matters.

The appointment is effective immediately, with departmental reporting lines remaining unchanged.

The release said that “The appointment recognizes the importance of these functions to both the daily operations and the long term aspirations of the Exchange.”

Mr Martin Abbott CEO of LME said “In addition to his specialist departmental and professional knowledge Diarmuid brings a wealth of experience at the LME and a deep understanding of the factors that drive business to an exchange such as the LME. I look forward to working closely with Diarmuid as the LME consolidates its existing market position whilst seeking new business opportunities.”

The LME is the world's premier non-ferrous metals market and achieved volumes of almost 93 million lots in 2007, an increase of 7% on 2006 figures and equivalent to USD 9,500 billion in monetary terms;

SSAB to introduce Docol Roll at EuroBLECH 2008

Docol Roll is the latest milestone in the continuous development of SSAB's products. This ultra high strength steel is available in two strength levels and can be formed to very tight bending radii. It will be presented to the public at the EuroBLECH 2008 industry fair to be held between October 21st 2008 and October 25th 2008.

Special advantages offered by this Docol cold reduced steel are its high yield strength and the high dimensional stability of the finished profiles. In response to the increased demand for roll forming steels, SSAB is now launching Docol Roll, ultra high strength steel which can be formed to the tightest bending radii.

One of the reasons for its outstanding bending characteristics is the fact that this optimized dual phase steel has a very well balanced hardness distribution of the components ferrite and martensite.

Tokyo Steel cuts scrap purchase price again

Japan’s Tokyo Steel Manufacturing Co, Limited has announced to cut the purchasing price of scrap by JPY 12,000 per tonne from October 6th 2008. Tokyo steel has decreased the purchasing price by a total JPY 12,000 per tonne since October 1st 2008.

On the other hand, Tokyo Steel has increased its purchasing price for scrap by JPY 4,000 to JPY 5,000 per tonne during the first half of September 2008.

Scrap prices are expected to fall further, in line with dropping American scrap prices.

(Sourced from Yieh.com)

Euro falls to 13 month low against dollar

It is reported that the euro sank to a 13 month low against the dollar in Asian trade hit by signs of rising financial turmoil in Europe, dealers said. They said that after the US Congress finally passed a Wall Street bailout bill, traders were turning their attention to the problems among European banks. The euro fell to as low as USD 1.3610 in early Asian trade.

The euro slipped to JPY 142.50 from 145.16. The dollar dropped to JPY 104.42 from 105.27.

Analyst at the Barclays capital said that the US Congressional approval Friday of a USD 700 billion Wall Street rescue package prompted markets to change their focus from the financial turmoil in the US to Europe. They predicted that "The euro is expected to continue to extend its losses against major currencies."

Worries over whether the Europeans can contain the turmoil grew after the leaders of France, Germany, Italy and Britain vowed on October 4th 2008 to protect fragile banks but did not discuss a continent-wide financial rescue package.

Dealers said that markets were looking ahead to a meeting Friday of finance chiefs from the Group of Seven rich nations, waiting for any announcements on coordinated action such as liquidity injections or cuts in interest rate.

ArcelorMittal SA falls most in 18 years

Bloomberg reported that shares at ArcelorMittal South Africa Limited fell the most in at least 18 years in Johannesburg trading. Its share slumped as much as ZAR 22.15 or 16% to ZAR 114.60.

Mr David Shapiro manager at Sasfin Holdings Limited said that "Steel prices are falling and the drop in ArcelorMittal South Africa follows the slide in global steelmakers.''

It may be noted that Nippon Steel Corporation and Baoshan Iron Steel Company led a decline in Asian mills on concern demand from automakers and builders will drop amid a global credit crunch and economic slowdown. Nippon Steel plunged 7.8% to JPY 319 while, Baoshan Steel dropped 8.8% to CNY 6.63.

Drilling demand to increase by 20% in 2009 - Report

Jakarta Post reported that demand for oil drilling services is expected to jump by 20% in 2009 as companies boost their production to cash in on soaring global crude oil prices.

Mr Bambang Purwohadi chairman of Indonesian Oil & Gas Drilling Contractors Association said that demand for drilling services had flourished for the past year because of the skyrocketing oil prices.

Mr Bambang said that "Despite the decline in the oil prices, the prices are still higher on average than in previous years. This will lure oil companies to increase their production, meaning more drilling projects will be available. I think demand will increase by 20% next year."

Mr Bambang said management of several marginal wells owned by state oil and gas company PT Pertamina had already been transferred to local firms. He added that "This is a blessing for us. About 12 drilling companies will begin work on this project immediately."

APMI estimates this year's demand for drilling to tap into some 420 wells, would grow by about 25% compared to last year. While oil prices have eased recently, Bambang believes demand for drilling will remain strong next year.

APMI set a benchmark for drilling fees this year, which was USD 30 per horsepower day for a new drilling project and USD 20 per horsepower day for a work over drilling project. The fees will remain at this level for the next year because we accounted for the soaring prices of steel and equipment in calculating the benchmark.

By the end of 2015, APMI estimates to see 25 strong drilling companies in Indonesia, 20 of which will work in onshore projects and the remainder will be offshore. Some foreign oil contractors were reluctant to use local drilling services.

Update on US oil markets scenario

The week ended on October 3rd 2008 was a hard one for the oil market which is looking for direction at the economic fundamentals. But these fundamentals do not allow a lot of optimism. The growing signs of recession make the oil market more and more nervous as it is clear that the economic slow dawn will affect demand.

Oil has declined 12% last week as higher borrowing costs and reports showing a worsening economy spurred skepticism that US government's USD 700 billion bank bailout plan will stimulate growth. US payrolls fell by 159,000 in September 2008, the most in five years. Oil has declined 37% from its record USD 147.27 on July 11th 2008. The weekly drop is the biggest since December 3rd 2004.

According to market’s analysts this trend will continue in the week begins on October 6th 2008. The main reason for the escalation of pressure on the crude prices is the fear that the upcoming recession is inevitable, with all the negatives that this mean for the oil demand and of course prices.

Seventeen of 31 analysts surveyed by Bloomberg News said that prices will decrease through October 10th 2008, the most bearish response since the week ended June 6th 2008. Seven respondents said that oil will rise and seven said prices will be little changed.

Funding delays threaten Ravenscraig steelworks - Report

It is reported that delays in handing over GBP 2.8 million from the public purse is threatening to derail the transformation of the former Ravenscraig steelworks into Scotland's first new town in a generation.

The Scottish government's private sector partners in the bid to create 12,000 jobs and 3500 new homes on the Brownfield site in Lanarkshire have accused it of dragging its heels over financially committing to the scheme and are warning that the GBP 1.2 billion vision is in very real jeopardy.

Civic leaders have also urged the government to signal its intentions over Ravenscraig in order to allow the development to remain on track.

Mr Jim Fitzsimons, who is overseeing the scheme on behalf of Barratt, a partner with the public sector and Corus in Ravenscraig Limited, said that, since a meeting with enterprise minister Mr Jim Mather in mid May 2008 on progressing the second phase of the 20 year project, there has been no movement.

He added that the GBP 2.8 million is required for further site exploration and preliminary works and it could actually bring down the GBP 70 million required from the government over the next 7 years.

Mr Fitzsimons said that "If the public sector can't find GBP 2.8 million which would unlock a further GBP 600 million there is the potential the whole thing could die. You can't turn the taps on and off when you want to as the private sector will just walk away."

Meanwhile, a Scottish government spokesman said that "Scottish Enterprise has invested over GBP 20 million in the first phase and is continuing to work with its private sector partners, as well as the local authority, to develop and refine proposals for phase two and is currently considering how best to take this development forward in light of the credit crunch and market changes."

Credit crisis threatens weak bulk shippers and shipyards

Reuters reported that access to credit is the lifeblood of maritime trade and the credit crunch has largely cut off that supply, threatening to weed out weaker shippers and shipyards, as well as hamper global trade.

Mr Omar Nokta analyst at investment bank Dahlman Rose said that "The credit crisis has made banks nervous and the last thing on their minds is making fresh loans. Some ship owners and shipyards in particular are feeling the pain."

The outlook is worst for the bulk shipping industry, which hauls raw materials such as iron ore, grain and cement. More than 90% of the world's traded goods by volume is carried by sea. Access to credit has been cut off at an inopportune time for the industry, after several years of robust growth in markets like India and China, accompanied by huge infrastructure investments, spurred a race to build new ships, creating 3 year backlogs on shipyard order books.

Some shippers and analysts have noted that letters of credit and bank guarantees on behalf of buyers that are given to exporters and which are an important aspect of global trade have become scarce, leaving some cargoes stranded.

For instance, South Korea's Hyundai Mipo Dockyard Co Limited announced on August 1st 2008 that it had canceled a KRW 197 billion order for four product carriers. But the company said this was not due to market issues but the problems of the buyer and at the same time announced a KRW 411.9 billion order for eight bulk ships.

Major steel firms drops prices due to low demand - Report

It is reported that a global slump in steel demand coupled with a drop in prices saw South Africa’s major steel producers, Highveld Steel and Vanadium, take a pounding.

Analysts have warned that further price drops in the medium term were likely as the gloom in global financial markets spreads to other sectors.

Last week ArcelorMittal announced it would drop steel prices for a second consecutive month next month as the global downturn starts to bite and demand declines. It said that it would cut the price of long and flat steel products on average 10% or ZAR 1000 a tonne from next month. It said the prices of some product lines, such as galvanized products, would fall by a more modest ZAR 500 a tonne.

This follows an average 5% price cut which came into effect last week the first this year after prices jumped by as much as 72% since the start of the year. ArcelorMittal sets its prices on the weighted average movement of steel prices in a handful of like markets.

UBS has lowered its steel price forecasts for next year, dropping its benchmark steel prices for European Union, US and China domestic steel prices by about 15%, and 6% for the US and 13% for Europe and China for 2010.

Paraguay faces wire rod shortages in domestic market

Mr Walter Bogarín manager of Walt Metalúrgica SRL said that in addition to a rod deficit plaguing Paraguay's market, the country is also facing a shortage of wire rods for wire making. He added that the shortage is causing problems with the production of steel wire used for various purposes.

Mr Bogarin also said that there is still a shortage of rebar for construction, so the country's only steelmaker Acepar can not keep up with market growth. Rebar demand on the domestic market has grown to over 5,000 tonnes per month while Acepar only provides 3,000 to 3,500 tonnes per month.

In September 2008, a spokesperson from Paraguay's industry and trade ministry said that the rebar supply crisis will stretch into November, when local company Aceros Industrializados begins producing for the domestic market. Acepar produces plain rods for construction and other uses in addition to rods and billets for rolling. It churns out 100,000 tonnes per year on average.

Japanese steel exports in August up by 3.4% YoY

Japan’s exports of steel products in August rose by 3.4% YoY to 3.3 million tonnes as compared to the same period of last year.

Among the 3.3 million tonnes, 2.29 million tonnes is carbon steel with a 1.3% YoY increase from the same time of last year.

South Korea was the main export destination, for HRC.

(Sourced from Yieh.com)

ArcelorMittal to curb prod on softening steel prices

It is reported that ArcelorMittal has taken steps to control its production owing to softening steel prices.

It has also been reported that the company has stopped mining in Kazakhstan and Uzbekistan, and that it has asked its workers to go on a paid holiday for 15 days. Also, there are reports that the company will re evaluate the situation after October 15th 2008.

Steel users in Middle East Asia

A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item, but there is no bench mark available to steel buyers to compare their transaction prices, which in a big way decided their bottom line. Lastly, steel has been very volatile in last 6 months and has effected many users in a very severe way making it all the more important to track the prices and trends.

www.steelprices-middleeast.com is a new portal that provides domestic pricing information for benchmark steel products in each category at select location in China on a regular basis 5 days a week. In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available on daily basis to give a sense of alternates.

This would assist persons, including steel makers, traders, users and others, who are connected with industry in some way to asses the steel pricing trends and utilize in their day to day working to take considered decisions.

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

All these features are accessible only to registered user who is provided with a login id and password after payment is received. To know more about the service, please logon to the web site and click on “Features”, “Subscription” and if you like the service on “Registration”.

www.steelprices-middleeast.com is developed and run by none other that www.steelguru.com, which has become the largest English based steel portal in the world, with more than 1 million page hits per month in just 3 years of operations.

Vietnam work towards stabilizing markets

Ministry of industry & trade recently announced that ministries and sectors will continue to implement key solutions to curb inflation and stabilize the economy, including stabilizing markets by the end of 2008.

The ministry forecast that the prices of essential goods would remain stable or increase slightly because world prices had recently been declining, and the domestic demand for goods had yet to increase sharply. It said that goods and monetary markets had been developing positively considering the dire situation of the world economy.

The ministry of finance plans to instruct provinces to use their budgets to support enterprises to stock goods to ensure fair prices during the lunar New Year festival in 2009. It also plans to continue to solve difficulties and support enterprises to purchase export goods, especially seafood and agricultural products.

The ministry is also calling for regulations on imported scrap metal to ensure material for the domestic steel production and reduce import surplus.

European carmakers want EUR 40 billion in state loans

Bloomberg reported that automakers have asked the European Union to approve EUR 40 billion in low interest loans to help them develop fuel efficient vehicles as the global financial crisis affects sales.

European Automobile Manufacturers' Association said that lawmakers also should provide incentives for consumers to scrap cars that are more than eight years old in order to accelerate purchases, the Brussels based. The group represents 15 carmakers, including Volkswagen AG as well as General Motors Corporation, Toyota Motor Corporation and Ford Motor Co.

Mr Christian Streiff CEO of PSA Peugeot Citroen and the trade group's president said in that "Carmakers face increasingly hesitant consumers and call on governments to respond, stimulate the economy, relieve the credit crunch and restore consumer confidence. The proposed loans package will give an important and welcome signal to consumers and financial markets.''

The assistance requested in Europe would echo a US program to provide USD 25 billion in subsidized loans to help build smaller, thriftier vehicles. The global financial crisis is sapping demand at the same time that higher steel and oil prices increase manufacturing costs.

MR Pete Kelly senior director of JD Power Automotive Forecasting in Oxford said that the call for help is extremely unusual. EU officials may be reluctant to grant the auto industry a special deal because it could open the door to others claiming hardship. He added that "They can't claim to be any special case. They are not as close to the abyss as US manufacturers.''

Auto sales plunged 27% in the US last month as tightening credit and an economic slowdown discouraged buyers. They are also sliding in Europe, dropping 16% in August 2008, the biggest monthly decline since 1999. Demand is even slackening in emerging markets such as Russia, Eastern Europe and Brazil, where carmakers have been investing in factories to expand production capacity.

Oil falls by 2% to USD 92

It is reported that oil prices slumped 2%, falling for the fourth day as traders feared efforts to contain an intensifying credit crisis would fail to stave off a deeper decline in oil demand.

Prices are treading near their seven-month low of USD 90.51 a barrel touched on September 16th 2008 after slumping 12 % last week, its biggest such loss in almost four years.

Mr Mark Pervan senior commodities analyst at ANZ said that "There's a growing perception that the bailout package will put a further drag on US growth and that really this is just a band-aid initiative to bail out Wall Street."

The US dollar's rise to a 13 month high versus the euro added to pressure on beleaguered commodities, which slumped more than 10 % last week in their biggest ever weekly loss. Asian stocks tumbled 4%.

Oil demand in the world's top consumer has already slumped this year under the weight of record prices, while consumption in Japan and Europe has also weakened, knocking crude off a record peak over USD 147 a barrel struck in July 2008.

Vattenfall acquires AMEC Wind Energy ltd

Vattenfall AB, the fifth largest electricity generator in Europe, announced the acquisition of 100% of AMEC Wind Energy Limited a major UK developer of commercial wind farms for cash consideration of around GBP 126.6 million.

According to the release, this move positions Vattenfall to further expand its presence in the UK market and to advance its efforts to make electricity clean by reducing emissions from electricity production and to increase electricity production from renewable energy. Vattenfall and AMEC have also entered into a strategic alliance in the development of energy projects with increased efficiency and lower carbon emissions in addition to a framework agreement with the aim to develop the existing wind projects in the AMEC portfolio being acquired by Vattenfall and to develop new wind projects in the UK.

Mr Lars G Josefsson CEO of the Vattenfall Group said "This deal provides an excellent opportunity to expand our business in the UK by strengthening our local presence and leveraging our considerable experience in wind power. As part of our strategy to reduce emissions, Vattenfall has very ambitious plans for renewable energy. The UK is a prime target market for future renewables growth, due to its well-functioning support systems, a deregulated and competitive market for electricity and openness to foreign investment. AMEC Wind is a sound company with long experience within this field and has developed important projects in line with our business and ambitions. Vattenfall sees the economics of the UK wind sector being attractive as the UK also benefits from high wind speeds, providing wind farms in the UK with higher load factors than wind farms in much of Continental Europe.“

Mr Samir Brikho CEO of AMEC said: “This is an excellent deal for both AMEC and Vattenfall. We are delighted to be working with Vattenfall as they build their position in the UK wind energy market. This is an area of national importance and together we look forward to making a significant contribution towards the UK’s targets for energy from renewable sources.”

Steel pricing trends in India

A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item, but there is no bench mark available to steel buyers to compare their transaction prices, which in a big way decided their bottom line. Lastly, steel has been very volatile in last 6 months and has effected many users in a very severe way making it all the more important to track the prices and trends.

www.steelprices-india.com is a new portal that provides domestic pricing information for benchmark steel products in each category at select location in China on a regular basis 5 days a week. In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available on daily basis to give a sense of alternates.

This would assist persons, including steel makers, traders, users and others, who are connected with industry in some way to asses the steel pricing trends and utilize in their day to day working to take considered decisions.

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

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Mr Brunet appointed as VP of Linde North America

Linde North America has named Mr Philippe D Brunet to the role of vice president, operational finance and control and investments, effective immediately.

Mr Brunet holds a business degree from Ecole Supérieure des Sciences Economiques et Commerciales in Paris and a Program for Global Leadership degree from Harvard Business School. He most recently served as senior VP of finance for US Packaging division of Saint Gobain Group. He will be based in Linde’s Murray Hill, North American headquarters.

Mr Juergen Nowicki head of operational finance & control and investments for Linde Group said that "Mr Philippe will bring his vast, international experience in various areas of finance such as mergers and acquisitions, treasury and cash management, strategic planning, financial and operational controlling."

Linde North America is a member of Linde Group, a world leading gases and engineering company.

GCC needs over USD 35 billion to finance power projects

Gulf News reported that Gulf Arab countries face an acute challenge in meeting the rising demand for electricity as they power ahead with an unprecedented construction spree.

Ratings agency Moody's in a report said that the power sector in the Gulf Cooperation Council could require more than USD 35 billion in financing in the next 10 years. The agency said that "The electricity industry in the GCC countries is experiencing a period of great challenges as it attempts to keep up with unprecedented economic and demographic growth.”

It said that most GCC countries, which are the world's top oil exporters, will face fuel procurement problems in the coming years. Further government support, mainly through subsidies, may be required in some markets to ensure profitability of power producers, particularly if tariffs remain motivated by political rather than economic considerations.

Middle East Economic Digest said earlier this year “Encouraged by high oil revenues, governments in the region have launched massive infrastructure projects in recent years. The value of Gulf projects under development has crossed USD 2 trillion.”

As per earlier reports, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE are expected to spend USD 50 billion by 2015 to boost generation capacity by nearly 60,000 megawatts.

Middle East demand to cushion Kinsteel from slow down

The News reported that Malaysian steel maker Kinsteel Bhd expects the construction boom in the Middle East to cushion the impact of lower domestic and regional demand for its steel products caused by the current sluggish economic environment.

Mr Tan Sri Pheng Yin Huah MD of Kinsteel said that Kinsteel’s semi finished steel products were in high demand in the Middle East even during the Ramadhan period.

Mr Pheng said that “The construction boom in the Middle East is a boon for us. We do not see an impact in the demand for our steel products from the Middle East market amid the recent financial crisis. We expect demand to pick up again after the Hari Raya Aidilfitri celebration.”

Mr Pheng said that “Going forward, our strategy is to focus on improving the utilization rate of our products and stepping up marketing efforts overseas. He said that venturing into the overseas markets is part of our long term plan to market our full range of products in the global market adding that the immediate targeted markets were the Middle East and Europe.

He said that Kinsteel had been upgrading its section mills to produce Imperial, Australian and European sizes. He added that the ability to manufacture the various sizes has enabled Kinsteel to expand its market share abroad.

Currently Kinsteel has more than 300 dealers locally and regionally. Its other export markets include Singapore, Taiwan, Vietnam and Indonesia. With a total of 12 plants in Malaysia, Kinsteel manufactures 15 types of long steel products and has an annual production of 2 million tonnes to cater mainly for the domestic market. For the H1 of the year overseas sales contributed 40% to Kinsteel’s total revenue. Of the figure half was from the Middle Eastern market. Kinsteel exports its semi finished product namely billets, beam-blanks and blooms which are mainly used in the construction industry to the Middle East.

Claxton Engineering opens office in Jebel Ali

Pipeline Dubai reported that Claxton Engineering Services opens its office in Jebel Ali to serve its international clientele network. The new facility located in the Jebel Ali Free Zone port will improve the service provided to Claxton’s customers in the Middle East and Far East markets as well as acting as a hub for storage and repair of equipment throughout the region.

The opening of the new office follows Claxton’s merger with the template, tie back centralizer and camera business of sister Acteon company UWG in August 2008.

Mr Laura Claxton MD of Claxton Engineering Services Limited said that “We identified the Middle and Far East regions as key areas for expansion and have been planning a base of operations there for some time. The increased portfolio resulting from the recent merger with some of UWG’s product lines has presented us with the ideal opportunity to increase our sales and services worldwide.”

Demand for Claxton’s services in the area is already high with contract wins from Dubai Petroleum, Maritime Industrial Services and RAK Petroleum. The base will also help service Claxton’s current wellhead maintenance contract for Kuwait Oil Company.

Mr Laura said that “The opening of the new office reflects our success in the North Sea and the increasing demand for our services in key oil and gas markets worldwide. He said that with the Dubai office already proving a success, we look forward to opening another office in the Far East to provide a dedicated service to each of these vital regions.”

Kuwait Petroleum plans USD 75 billion oil investments

Reuter reported Kuwait Petroleum Corporation the Gulf Arab state's top state oil company plans investments and projects worth KWD 20 billion in the next 5 years.

Mr Ali al-Hajeri head of administrative and financial affairs at KPC told Al-Rai newspaper that the investment figure is higher than an earlier estimate given by Mr Mohammad al-Olaim Kuwait's Oil Minister who said in June the Opec producer would spend USD 55 billion on oil projects over the next 5 years. The amount included KWD 5 billion designated for a planned upgrade of Kuwait's Mina Abdullah and Mina Al-Ahmadi refineries.

State refiner Kuwait National Petroleum Company a unit of KPC said that it planned a tender to boost capacity of the two refineries to 800,000 barrels per day from 600,000 barrel per day which might be worth as much as KWD 4 billion. No detailed cost estimate for the project has been given yet.

Mr Hajeri said that the projected KPC budget through to 2013 also includes KWD 4 billion to build the 615,000 barrel per day al-Zour refinery. He added that KPC also planned several other projects to boost productivity and performance of the oil sector. Kuwait the world's seventh largest oil exporter sits on 10% of proven global reserves.

Hyder wins USD 14.4 million Diyar Al Muharraq contract

TradeArabia News Service reported that Diyar Al Muharraq has signed USD 14.4 million contract with Hyder Consulting, the international advisory and design consultancy, to offer a range of design and supervision services for the key project.

A company official said that under the deal, Hyder will provide design and supervision services for half of the ambitious 12 square kilometer project.

Diyar Al Muharraq is one of the biggest mixed use residential urban developments undertaken by a private sector in Bahrain. Situated on the northern shores of the Bahrain’s Muharraq island the USD 3.2 billion is unique in offering an unprecedented lifestyle for people of all incomes to enjoy as the pricing structure and selection of freehold properties is accessible to buyers across the income levels.

Diyar Al Muharraq’s masterplan maps out a self contained city with many accessible, landscaped public spaces, incorporating around 40 kilometers of waterfront which includes sandy beaches and a marina. This will be among the largest publicly accessible waterfront in the Kingdom. The development also includes provision for numerous community spaces and facilities, abundant landscaping, a number of international 5-star hotels and a large shopping mall with extensive parking, business district and light logistic and support area.

As per report, its physical scale is also impressive with the expected number of planned properties standing at 30,000 which will house over 100,000 people on completion. Diyar Al Muharraq’s long term strategy includes a plan to support the ministry of housing’s social housing program.

The report added that all of this requires extensive and detailed infrastructural support and Hyder Consulting, operating through its global network will supervise early infrastructure development including roads, bridges, traffic, geotechnical, water, electricity, communication, sewerage, drainage, district cooling and landscape architecture.

Mr Aaref Hejres CEO of Diyar Al Muharraq said that “Our vision is to create a unique city for the future, offering a choice of housing and a quality lifestyle for all. He said that we need therefore to focus on providing an extensive, modern and fully functioning infrastructure, capable of ensuring that our new city functions efficiently and offers the maximum convenience for residents and visitors alike.”

He said that “Hyder Consulting is well equipped to take on such challenges and satisfy the needs of such a large development and we are confident that they will take the master plan forward from the conceptual stage to become a long awaited reality.”

Mr Rod Athey Pollard project manager at Hyder Consulting Bahrain said that this was the largest single project won by Hyder Consulting in the Kingdom.

Bahrain to review monorail network designs

TradeArabia News Service reported that designs for Bahrain's monorail network are due to be submitted to the government later this month.

Mr V Kanesan VP of Global Projects said that experts from Malaysian firm Scomi Engineering have been working on the project behind the scenes for the past year. It is too early to put a price on the monorail system, but work could start within two years.”

Mr Kanesan said that “We have been coordinating with the Bahrain government over the last year and have been invited to give them our proposal. He said that we are involved with designing and implementing the project and are now also on the lookout for a local partner. We have teams in place on the ground in Bahrain and are making substantial progress towards the project implementation.”

Sources said that the first phase of the project could constitute a 23 kilometer stretch of track linking some of the country's most congested areas. They added that construction could begin in the H1 of 2010 and the entire project measuring 83 kilometer could be completed by 2030.

Shaikh Ahmed bin Ateyatala Al Khalifa Cabinet Affairs Minister said that the initiative stemmed from the government's resolve to decongest Bahrain's roads and preempt mounting traffic challenges. He said that under a suggested long term strategy, Bahrain would use technology that has proved a success in countries facing similar traffic challenges.

OVL in discussion with Iranian government for gas block

Project today reported that ONGC Videsh is negotiating with the Iranian government to explore an oil block near the Caspian Sea in the northern part of the country. It is learnt that the Chinese company Sinopec is also in the race for the block.

As per report, OVL along with Oil India and Indian Oil Corporation has discovered oil and gas in the offshore Farsi block in Iran. The company is also seeking other oil and gas blocks in Iran, particularly in the South Pars field.

Dubai shrugs off turmoil with mega projects

Dubai government firm recently announced that it will build a new city in the booming Gulf emirate at a projected cost of USD 95 billion shrugging off the global financial turmoil.

The mixed use Jumeirah Gardens development will be an integrated city within a city to be built over 12 years, Meraas Development said at the opening of Cityscape Dubai 2008 a 4 day international real estate fair.

Jumeirah Gardens will stretch north of Sheikh Zayed Road, Dubai's main thoroughfare linking it to the oil rich emirate and UAE capital of Abu Dhabi 150 kilometers to the south.

Meraas Development said that the project will comprise business, residential and leisure facilities linked by a transportation network and including some of the city's biggest towers and with a large canal running through the development.

The company said that construction of the first phase of the project has already begun and the first buildings are due for handover in the Q4 of 2011.

The announcement came one day after Dubai developers Nakheel said that it planned to build a tower which will stand more than one kilometer tall beating the city's own world record.

According to developers Emaar, Dubai already boasts the world's tallest building, the yet to be completed Burj Dubai tower which reached a height of 688 meters at the start of September and is still growing. Visitors watch the model of Nakheel Harbour & Tower at the Exhibition Centre. It now boasts 160 storeys the highest skyscraper in the world.

ADNOC cuts September crude prices

Reuter reported that Abu Dhabi National Oil Company cut the September retroactive selling price of its benchmark Murban crude for the second consecutive month as global crude prices fell.

ADNOC has set the September Murban price at USD 98.05 a barrel, down by USD 19.45 and lowest since February.

Murban was set at a USD 2.15 premium to the September average for Dubai which stood at USD 95.90 a barrel, versus a premium of USD 4.64 for August. The premium was the lowest since April 2004.

The sharp fall against Dubai quotes came after Abu Dhabi grades have traded at discounts as deep as USD 3.00 a barrel to their OSP on weak Asian demand and despite last month's already deep USD 1.44 cut in the premium.

Abu Dhabi crudes most of which are middle distillate rich have lost their appeal as the profit margin for making gas oil has more than halved from a record USD 45 a barrel in May.

US crude hit an 8 month low of USD 87.65 on Monday on concern that demand for fuel would decline sharply if the global economy slipped into recession.

Al Maabar eying USD 500 million project in Iraq

Reuter reported that Al Maabar International a JV between Aldar Properties and Sorouh Real Estate plans to develop a project in Iraq this year worth at least USD 500 million.

Mr Yousef Al Nowais MD of Maabar said that “We want to launch a mixed use project in Baghdad before the end of the year it will be a huge project worth more than USD 500 million.”

He said “People need suitable houses to live in after the war has destroyed their homes and there is an effort now by Arabs to work for the stability of Iraq.”

Mr Nowais said that Al Maabar was also considering development projects in Egypt and Algeria to tap North Africa's mos