State-owned Emirates Steel Industries said on Monday it had signed a $474 million contract with Danieli Corporation for construction of phase II B of the company's overall $2.45 billion expansion plan.
Italy-based Danieli will be the contractor for construction of a heavy section rolling mill with a production capacity of 1 million tons per year, which will add to Emirates Steel's total capacity by the end of 2011.
Phase II B's rolling mill will produce heavy section beams, columns and sheet piles. Emirates Steel currently has output capacity of 2 million tons, and is expected to reach 3 million tons by 2011.
The company has said it is looking to further boost its capacity to 6.5 million tons annually by 2013-2014 through capacity expansions and acquisitions.
Emirates Steel has acquired 100 percent of a steel manufacturing company in the Middle East, Hussein Al Nowais, chairman of Emirates Steel, said at a news conference in Abu Dhabi.
'We have signed a MOU (memorandum of understanding) with a regional steel company and this is part of our acquisition plan to increase the overall production capacity of Emirates Steel,' he said, declining to name the company or the value of the deal. Nowais added that the company has raised $850 million from local banks and the Italian government while the rest of the financing for the overall expansion project will come from Emirates Steel's equity. 'Our ultimate objective is to issue an IPO but this won't happen before one to two years time,' he said. 

Iranian crude steel production in the first 7 months of 2009 reached 6.5 million tons showing a 12.5 percent increase compared to the same period in 2008.
The Islamic Republic of Iran News Network quoted a report of the International Iron and Steel Institute stating that after Ecuador and Macedonia, which ranked first and second respectively, Iran ranked third in terms of production growth.
The increase in steel production in Iran happened while the average output declined in 66 countries until August showing an 11.1 percent slump.
IISI reported that Iranian crude steel production in the month of July was estimated to be about 870,000 tons which indicates a 15.1 percent increase in comparison to the year before.
During the fifth Iranian calendar month steel production increased in only 6 countries namely Uzbekistan, Ecuador, Iran, Libya, China and India while it decreased in other countries.

Due to the falling demand of long products presently the small steel mills in Turkey only purchased small steel scrap.
Many buyers predicted that the scrap price would drop in the following several days, therefore, they delayed to make a purchase.
Few days back, the settled price of No1 and No 2 mix heave scarp was USD 315 per ton to USD 325 per ton but it is understood that there was no deal.
A debar manufacturer from Turkey disclosed that there was not any orders this week but next week may place some new orders. Traders said that owing to the weak demand of debar, the steel mills were unwilling to purchase scrap with this price. However, most buyers still needed scrap for October delivery, so the buyers in Turkey were estimated to return back the market soon.

Yousef Hussein Kamal economic minister of Qatar met with Iranian deputy economy minister and called for his country's investment in Iran's telecommunications, tourism, banking and steel industries.
Behrouz Alishiri the director of Organization for Investment, Economic and Technical Assistance of Iran said that the ways for broadening economic and trade cooperation between the 2 countries were discussed in the meeting.
Alishiri highlighted the capacities of the Export Development Bank of Iran and the Export Guarantee Fund of Iran for expanding commercial ties.
The OIETAI president added that Iran is undergoing privatization and good opportunities in this regard will be offered to Qatari investors in a future conference.
Yousef Hussein Kamal economy minister of Qatari conveyed his satisfaction with Alishiri's suggestions and expressed hope that Qatari financiers invest in Iran. He also called for the establishment of Bank of Qatar in Iran and asked for cooperation in this regard.
Qatar has experienced rapid economic growth over the last several years and in 2008 posted its 8 consecutive budget surplus. In July, Abdollah Sohrabi the ambassador of Iran to Qatar said that plans are afoot to open up an Iranian trade center in Doha and in return, Iran has already allocated a piece of land to build a Qatari trade center in Iran's Bushehr city port.

According to the statistics released by the Istanbul Mineral and Metals Exporters' Association, in August Turkey's total steel billet exports amounted to 226,400 tons decreasing by 40.03 percent MoM but increasing by 19.85 percent YoY. Meanwhile, the revenue generated by these exports totaled USD 91.29 million down 57.11 percent compared to the same month of the previous year and down 37.82 percent over July this year.
In August, the average export price of Turkish steel billet amounted to USD 403 per ton up USD 14 per ton or 3.67 percent from July levels but indicating a decrease of USD 723 per ton or 64.2% from USD 1,127 per ton in August 2008.
On the other hand, in the January and August period of the current year, Turkey's steel billet exports slid 30.61 percent YoY to 1.33 million ton totaling a value of USD 524 million down 67.61% compared to the corresponding period of the previous year.

State run Emirates Steel Industries has recently unveiled plans to become largest steel maker in UAE.
Hussain Al Nowais chairman of the Abu Dhabi based company said that the project is part of Emirates Steel's plan to become the biggest steel producer in the Middle East with an expected annual capacity of 6.5 million tons by 2015.
Shaikh Hamed bin Zayed Al Nahyan chairman of General Holding Corporation said that “ESI's focused and fast paced approach has allowed it to edge ahead of schedule in its expansion plan, bringing it closer to its goal of becoming the largest steel manufacturer in the region.”
ESI has almost tripled its production capacity from 650,000 tons in 2007 to 2 million tons today. The expansion it plans with Danieli's help will enable it for the first time to produce finished steel products such as heavy section beams and columns, channels, angles and sheet piles.

Iraqi ministry of Industry has allocated about USD 400 to rehabilitate the facilities of the State Iron and Steel Company based in al Zubair direct of Basra governorate to enable the company to produce 1 million tons of sponge iron, 1 million tons of billets, 1 million tons of rebar's.
According to the statement, the development plan will be executed in three stages. The first stage will start in 2010 which will boost the production capacity to 500,000 tons of crude steel and the sand quality of rebar. The cost of this stage is more than USD 100,000 this stage will include addition of rolling lines melt shops. The Second stage will start in 2011 to rehabilitate the sponge iron which will bring the production capacity up to USD 1 million tons. The cost of this stage is more than USD 140 million.