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The recently concluded 'Iron & Steel Summit' in Raipur was useful to steel professionals in many ways.

It was our second event in Raipur and interestingly, everytime the issues of concern were different. In the first event, growth was the passion. A lot of mini sponge iron plants were getting set up in the region and iron ore and non coking coal linkages were debated. Later on in the second event, stability and long term viability were the key issues. Co-gen modules were discussed in detail. Also it was felt that to have stability and viability in the long run, it was necessary to go for forward integration in terms of steel making and rolling. Today, a lot of infrastructure projects are being talked about in the region including building a new capital city which would be named as 'Naya Raipur'. This would certainly give the steel demand of the region a big boost and would take care of the long term viability of the numerous steel projects coming up in the region.

Another interesting topic discussed was 'Clean Development Mechanism' or CDM as it is called. Now, pollution control measures are a must for any sponge iron or a mini steel complex. How to control carbon emission and how to get its compensation from the international markets was another interesting presentation. Also, delegates were informed about the United Nations Development Programme (UNDP) for technological upgradation of Re-rolling sector by Ministry of Steel. Overall, the deliberations in the conference were very informative and useful to the steel community.

The reason to narrate the above in detail is in India the story is same for many regions like Chattisgarh, Orissa, Jharkhand, Bellary-Hospet etc. A matrix of mini sponge iron based steel industry coupled with few big integrated steel plants. This is emerging as a viable model for sustained growth of not only steel industry but also is successful in giving the required foundation to the regional economy in general.

 D.A.Chandekar
Editor & CEO

 

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Ye Dil Maange, more steel!! Says India

If there's any single sector that shows the difference between the emergence stories of India and China, it is steel. There is almost no point even making comparisons. But, at the risk of self-infliction of some pain, we must. In the last four years, India has added seven million tonnes of steel production capacity. In just two years, China has added on 130 million tonnesmany times India's total capacity. For anyone harbouring visions of catching up with China on foreign direct investment and all the rest of the show, the steel comparison is sobering. For, China's torrid steel consumption represents the pace at which assorted structures are being erected across the country to transform what was once a vast landscape of paddy fields and arid expanse. India, meanwhile, must console itself with the odd Metro project, some new office blocks and a few kilometers of eight-laned highways. But with a growth rate nearing China's, shouldn't India's steel consumption be headed higher? To some extent, it is. In the past three years, imports have risen to 5 million tonnes. And as the finance minister said in a speech in London the other day, so long as India was growing at the so-called Hindu rate of growth, the country could live with the shortages. But not any more.
Domestic steel prices have shown a consistent uptrend, a clear indication that supplies are running short, and the user-industries continue to throb with activity. Moreover, international steel prices remain buoyant, and there are signs that the current steel commodity cycle will not adhere to its old pattern. Under these circumstances, investment in steel should be looking robust. Yet, according to analysts, none of the major mega expansions planned for the sector in India has taken shape. It is production efficiency that has delivered the gains. The double-digit growth figures that companies have logged may seem impressive, but they are on bases so small that they do not mean much. And here lies the rub.
What we need is a quantum change in the scale of operations of the domestic steel industry. Only then would prices soften and usage expands. Instead of tilting at the windmills with threats of price controls, the steel ministry would do the economy a good turn by concentrating on measures to spur capacity expansion by the multi-million.

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Australia to facilitate acquisitions by Indian steel makers

The Australian government has assured India to expedite the process of stake buy in coking coal firms and mines by Indian steel giants SAIL, RINL and NMDC to ensure their raw material security, Steel Minister Ram Vilas Paswan said.
"Australian Federal Minister for Industry, Tourism and Resources Ian McFarlane has assured me all possible help in fast-tracking these acquisition ventures, which are critical for India's capacity-expansion in the steel sector," Paswan, who is currently leading a high-level delegation in Australia said over telephone. The proposal by these steel companies to jointly acquire stake in Australian coal properties has received a fillip with this visit and "they are likely to shortly buy equity in these properties or acquire mineral properties in Australia," the minister said.
"Australian mining giants BHP Billiton and Rio Tinto and other mining companies expressed their keen desire to invest in Indian mineral sector. I assured the Australian government and these companies of requisite assistance within the boundaries of India's investment policies and our mineral exploration policy," Paswan said. Both the nations also agreed to constitute teams of officials to carry forward this dialogue and to concretize the decision taken during this visit.

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RINL ACHIVES BEST EVER Q-1 SALES

Strategic marketing decisions and better customer relations have resulted in RINL achieving the best ever First Quarter (Q-1) Sales Turnover of Rs. 2026 Crores during the period Apr June'07 which registered an impressive growth of 14% over the same period last year (Rs. 1774 Crores).
On the domestic front, Sale of 6.34 lakh tons of steel in the Domestic Market registered a growth of 7% over the same period last year. RINL's focus towards value added steel has resulted in the sale of 2.94 lakh tons of Value added steel in the Ist Qtr registering a whopping growth of 43% over the same period last year.
Another significant feature of marketing performance was sale of 1, 45,767 tons for Projects segment which recorded a growth of 16% over the same period last year.
The Sale of 5571 MT to District Level Dealers serving the rural market is also the highest for ANY QUARTER, since inception.

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LNM, Posco may forge global ties

The Indian market may become a battleground for global steel majors, with Arcelor Mittal, the world's largest steelmaker by capacity exploring ways to partner South Korea's Posco in developing raw material assets globally.
The two behemoths, which together control about a seventh of the world's steel production, have reportedly met to discuss collaboration in overseas projects, which could include India. Both ArcelorMittal and Posco have large interests in Indiaone of the world's largest steel-producing marketswhere high-quality iron ore deposits and skilled technical workforce have made it an ideal destination for steelmaking. International reports on Thursday indicated that Posco and ArcelorMittal discussed cooperation mainly since the Korean company wanted to ward off potential takeover threat from the LN Mittal-owned steel giant. Queries emailed to ArcelorMittal and Posco weren't answered. A senior ArcelorMittal executive, however, told ET that since the reports said the two companies have only discussed options and nothing has been finalised, “there isn't anything to say”.
While ArcelorMittal has announced plans to build 24 million tonnes of steel capacity in Jharkhand and Orissa, Poscothe world's fourth largest steelmakeris investing $12 billion in Orissa. India is home to one of the largest reserves of iron oreabout 24 billion tonnes of proven reserves. Interestingly, ArcelorMittal has asked for a portion of the Chiria iron ore reserves in Jharkhand, one of the largest in Asia. Posco too has asked the Orissa government for an assured supply of over 600 million tonnes of iron ore. Industry analysts are wary of commenting on the development, but accept that the combination “will be too huge to ignore”.
An analyst, who did not wished to be named, said, “If we take the three projects that the two have planned, they will jointly have a capacity of over 35 million tonnes per annum. None of the Indian companies, including Tata Steel and Steel Authority of India, come even close.”
Tata Steel became the world's sixth-largest steelmaker after its recent acquisition of the Anglo-Dutch Corus. The move is being seen as an effort by Posco to stem ArcelorMittal's acquisition overtures. A member of ArcelorMittal's management had met Posco chief executive Lee Ku-taek in February this year, triggering speculation of a takeover by the Mittal-owned company. The South Korean company was seen to be vulnerable because of its fragmented share ownership. Japan's Nippon Steel holds about 5.3% in Posco while the South Korean company has 3.8% in Nippon. Last week, ArcelorMittal had signed a technology transfer and capacity expansion agreement with Nippon. ArcelorMittal chairman LN Mittal has been reported as saying that after Europe and North America, he is keen on building a presence in China and India. While China is the world's largest steel market, India, with its large iron ore deposits and a business-friendly government, offers more options to steel companies.

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Uttam Galva exports 2 mt value added steel

Uttam Galva Steels Limited, India's leading manufacturer - exporter of galvanized steel, crossed a new landmark by exporting 2 million tonnes of value added steel. Commenting on the company's achievement, Mr. Ankit Miglani, Director (Commercial), Uttam Galva Steels Limited, said, "It is a great honour for the company to cross the two million tonne mark in exports. What is more interesting is that the company enjoys the distinction of supplying quality steel to developed markets like US, Europe and Japan".
The company is fully committed to manufacture high quality value added steel and will continue to supply to international firms of repute underlining India's strength in this sector at competitive prices, Mr.Miglani added. Uttam Galva is the recipient of the Government of India's "Highest Exporter Award" for seven consecutive years. It has taken only 30 months to achieve its second million tonne of exports. This assumes greater significance in light of the fact that these exports are not for generic products but for high end products tailor-made to a customer's specific requirement. Uttam Galva now exports to 128 countries worldwide. It supplies to most of the developed nations including USA, Japan, Australia, New Zealand, Canada, Germany, etc to name a few. The company's value added products include galvanized coils, galvanized sheets, CRCA and color-coated steel.

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Centre urges long-product capacity to be hikes

The government has asked major domestic steel companies to enhance capacities to make long-products in order to strike a balance between supply and the growing demand from real estate and construction sectors. The appeal was made during the Steel Price Monitoring Committee meeting held recently. Prices of long products, such as angles and reinforcement bars, have risen 10-12 per cent since February. "We are by-and-large satisfied with the current price levels of steel, with an exception of long products, whose demand has far outpaced supplies. We have therefore asked major steel makers to expand their long products capacity," Kumar Arvind Singh Deo, joint secretary, ministry of steel, said. The long products market is largely fragmented, dominated by small players, with only Steel Authority of India. and Tata Steel, among large companies, having considerable capacity. "We are concerned that realisations on long products may not match the kind of investment required to build in capacities," an industry official said..

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Visa Steel FY07 PAT up 64 pc at Rs 20.5 cr

Stainless steel maker Visa Steel on Monday reported a 64 per cent growth in net profit at Rs 20.52 crore for the financial year 2006-07 as compared to Rs 12.48 crore in the previous year. The Kolkata-based company's revenue rose by 39 per cent to Rs 537.93 crore in FY07 as compared to Rs 387.46 in the previous fiscal, Visa Steel said in a release. The growth in revenue and profit during FY07 has been driven by the pig iron and coke business, it added. Coke production stood at 59,643 metric tonnes (MT) during FY07 as against 450 MT during the previous year, the company said.
"The strategy of the company is to be a low-cost producer through full integration, location and logistics advantages, raw material linkage and process and technology choices and focus on value added niche products," it said. Visa Steel would add a 0.5 million TPA bar and wire rod mill and additional 25 MW power
plant to achieve further integration and value addition to its products in a bid to raise the total power generation capacity to 75
MW. VISA Steel is already setting up a 50,000 TPA Ferro Chrome Plant, 300,000 TPA sponge iron plant, 50 MW power plant and 0.5 million TPA special and stainless steel plant. Visa Steel is setting up a 1.5 million special and stainless steel project in Orissa at a cost of Rs 4,500 crore and planned to put up another special steel project in neighbouring Chhattisgarh.
The company's first priority was to implement the first phase of the fully integrated 0.5 mt special steel project involving Rs 1,800 crore at Kalinganagar in Orissa, Visa Steel Chairman V Saran said. The company posted a net profit of Rs 20.52 crore during 2006-07. The first phase the project would include a rolling mill and a 75 MW power plant among other facilities and would be completed next year, he said. It would take up the work of expanding its capacity to 1.5 mt, which would take another two and half years to complete..

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Essar Global Completes Algoma Acquisition

Essar Global has completed the acquisition of Algoma Steel Inc. through its wholly owned subsidiary, Essar Steel Holdings Limited. Essar has acquired the company at a valuation of Canadian $1.85 billion. Following this, Algoma Steel becomes a part of Essar Global. Mr. Denis Turcotte will continue as Chief Executive Officer of Algoma Steel Inc. Mr Shashi Ruia, Chairman, Essar Global said, “We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets. We look forward to working with Algoma's impressive team to take forward our vision of world class, low cost steel assets, with a global footprint. In addition, there are plenty of synergies available between our two operations.”
“As part of the Essar group, we will be able to exploit new growth opportunities and implement the best technological and engineering practices from across both organizations. This is a win-win situation for all Algoma stakeholders. Our customers, employees, and community can look forward to investment that will reposition the Company as a North American leader in steel”, added Denis Turcotte, CEO of Algoma.
Algoma brings a whole new dimension to Essar Steel's marketing operations in North America and Algoma will now have access to Essar's range of value added products in the automobile, white goods, construction and engineering industries. The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications.

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SAIL reduces Flat Steel Product Prices

In tune with the fall in prices of certain steel products globally, public sector behemoth Steel Authority of India Ltd (SAIL) on Monday reduced prices of its flat steel products by Rs 500 to Rs 1,000 per tonne.
"Prices have been reduced by Rs 500 to Rs 1,000 per tonne with effect from July 1 for galvanized plain and corrugated sheets. This reduction is in tandem with the fall in prices of certain steel products globally," a SAIL spokesperson told media. "The demand for GP and GC sheets increases in the monsoons. Yet the prices of these products were reduced to make them more affordable to the common man," he said. The spokesperson added, "however, the prices of long steel products like TMT bars and other products have been kept unchanged.

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Patnaik promises ore to working steel units

Orissa government will ensure smooth supply of iron ore to the steel companies who have started partial production. Efforts will be made to supply the raw material required by these industries expeditiously within 3 months.
This was decided at a review meeting on iron ore linkage to the upcoming industries chaired by the Chief Minister Naveen Patnaik in the state secretariat. It reviewed the overall position reserves of Iron ore and Bauxite in the state. While total reserves of iron ore was estimated at 5,306 million tonne ,about 3945 million tonne were alloted to different companies. Out of the remaining reserves of 1361million tonne 197 million tonne were relinquished. Besides, 517 million tonne were reserved for public sector undertakings like Steel Authority of India Limited (SAIL) and for the joint sector undertaking of Orissa Mining Corporation -Rio Tinto.
The total proposed capacity of the MOU signing steel companies is estimated to be 75 million tonne, the capacity of the companies having iron ore leases was pegged at 9.7 million tonne. The iron ore requirement of the companies not having iron ore lease is put at 2612 million tonne. However, reserves available in freehold areas was about 1361million tonne. The remaining 1251 million tonne is required to be met through linkage with Orissa Mining Corporation (OMC) and other lessees of the state, according to official sources.
A district wise review showed that Keonjhar had a iron ore reserve of 3574 million tonne in 42 locations, Sundergarh had 1605 million tonne in 37 locations, Mayurbhanj had a reserve of 35 million tonne in 12 locations and Jajpur-Keonjhar border areas had a reserve of 82 million tonne. Besides, Jajpur district had a reserve of 10 million tonne in one location. According to the review, 25 companies have achieved partial production and 16 companies have achieved financial closure.

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Feeder steel units come up around industrial hubs

To serve the growing industrial hubs in the country that need processed steel, service centres are being set up close to them.
These hubs chiefly comprise the automobile, automobile ancillary and consumer durables industries that are emerging in clusters in and around a few Indian cities. At present, around 10 per cent of steel in India is sold through service centres, unlike Europe and the US, where it is 40-50 per cent. However, with the emergence of automobile manufacturing hubs like Manesar in Gurgaon, Pune and Chennai, these service centres are gaining more market share. Total demand for steel from the automobile sector in India is 2-2.5 million tonnes per annum (mtpa) or 10-12 per cent. The total demand for high-end and auto-grade steel coming out of Manesar and Faridabad is around 0.4 mtpa. Pune is also drawing demands of 0.3-0.4 mtpa and it is expected to grow at around 10 per cent. Pantnagar in Uttarakhand has also become home to many such industries like Mahindra & Mahindra, Sharda Motors, Tata Motors, Bajaj Auto and Voltas as they qualify for the ten-year tax holiday extended by the Centre in 2003. Tata Ryerson, a joint venture between Tata Steel and North America's leading steel distributor and processor firm Ryerson Inc, has been catering to the needs of these industries with an array of flat and long steel solutions.
Another Rs 40-crore facility by the same company in Pune handles customers like Hyundai Motors, Godrej GE, ITW Signode, Wheels India and Hindustan Motors. The company's revenues have risen from Rs 1.83 crore in 1998 to more than Rs 1,000 crore, which aptly sums up the tremendous success this industry has seen. The state-run SAIL has also joined the bandwagon. It had entered into a 40:60 joint venture with BMW Industries Ltd near the Bokaro steel plant in 2002. It plans to set up more service centres to make itself more market savvy, company sources say. Posco has two such facilities in India in Pune and Chennai while its new facility at Manesar will be launched in the next six months. It is already catering to firms like Hyundai and Honda.
Bhushan Steel has an in-house 0.5 million tonne steel service centre at Sahibabad in Uttar Pradesh. The company's CFO Nitin Johari says: “Around 40 per cent of our sales are routed through the service centre. With the exception of Maruti Udyog Ltd, which has separate facilities for treatment of steel, most of our customers purchase from our service centres.” The service centre of the company is equipped to produce steel products in smaller tonnages and varied sizes as it serves Honda Motors, LG, Whirlpool and Godrej. When asked about growth figures, he said, “We are poised to grow at 25-30 per cent in the next year, with steel from service centres contributing around half of the revenue.” Small and medium enterprises (SME) are also trying to catch up with the trend. Bangalore and Chennai are witnessing a host of standalone service centres that customise steel and operate at lesser margins. However, Johari was sceptical about these standalones. “These small set-ups suffer from financial and technological constraints. Because of freight and other expenses, they sell steel costlier by 3-5 per cent than we do. It is the shortage that they are banking upon. As such, I do not see any major opportunities for them in the near future given that the production in the country is stepped up. Moreover, they are under constant pressure of being sandwiched between big players,”he added. Other companies like Mahindra Intertrade, a subsidiary of the Mahindra group and galvanised steel manufacturer Uttam Galva, have already forayed into the business. Mahindra Intertrade is serving global auto majors like Volkswagen, General Motors & Mahindra & Mahindra.

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Kalyani Steels in pact

Pune-based Kalyani Steels has entered into a joint venture with Brazil's Gerdau to enhance the capacity of SJK Steel Plant, a company it has acquired recently.
Through the venture, Kalyani Steels will increase its capacity to 1.6 million tonnes per annum of finished steel in the next few years. Under the agreement, both companies will have an equity partnership of 45 per cent each in SJK Steel.

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ArcelorMittal to cut steel output

The world´s largest steelmaker, ArcelorMittal, will slightly cut output in the third quarter and keep prices steady to help contain an Europe's steel prices are the world's highest. This has attracted increasing Chinese trade, raising concern among European steelmakers and EU officials about the possibility of Chinese steel being dumped on European markets. EU officials have warned of sanctions unless Beijing acts to cool what they describe as too much output from China's overcapacity.
Despite robust European demand and a possible squeeze on costs in the second half of the year, ArcelorMittal said it would stick with current prices in the third quarter for flat carbon used for the body of cars, trains and ships, claiming it needed to maintain a sustainable market environment for customers and a healthy inventory level. The company -- currently being formed as Mittal Steel Co. NV takes over Arcelor SA -- warned that its supply to the European market would fall by 3 to 4 percent by volume in the third quarter from the second as mills had to shut down for repair and inspection work.
“This will contribute to reduce the level of inventory of the market, which is slightly inflated due to a recent surge of imports," it said. ArcelorMittal said it saw robust demand across the region from strong economic growth in Western Europe as well as a buoyant Eastern European steel market while facing "increasing tension" on the raw material iron ore and scrap markets. "Our forecast for auto, construction, mechanical equipment, power generation, oil and gas and the tube industry in Europe is very robust. We expect that this year will continue as strongly as it has started," said the head of the company's European flat carbon unit, Christophe Cornier. ArcelorMittal controls about 10 percent of global steel production.

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India's biggest uranium processing plant inaugurated

  The Rs 350-crore plant, built under Uranium Corporation of India Limited's (UCIL) ongoing uranium augmentation programme, was the second processing plant of UCIL, a PSU under the Department of Atomic Energy. The plant has uranium ore processing capacity of 3,000 tonne per day. The uranium ore extracted from its underground Turamdih and Mohuldih as well as open cast mine at Banduhurang will be processed at the new plant. The capacity of UCIL's first processing plant at Jadugora, inaugurated in 1967, was increased to 2,090 tons per day from the initial 1,200 tons, UCIL sources said.
UCIL presently operates four underground mines - Jadugora, Bhatin, Narwapahar and Turamdih - and the Jadugora plant (all in East Singhbhum district of Jharkhand). Kakodkar also inaugurated the Banduhurang open-cast mine and laid foundation stone for UCIL's proposed Mohuldih uranium mine located in the Saraikela-Kharswan district of the state. While the corporation's first open-cast mine, Banduhurang, would produce 2,400 tons uranium ore per day, the projected capacity of Mohuldih underground mining project was expected to produce 1,50,000 tonne of ore per annum.

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Largest steel coil coating plant in GCC starts its operations in Dubai Investment Park

Sunrise Metal Coating LLC, the GCC's largest and most advanced metal coil coating plant officially opened its doors, ushering into a new era in the Pre-Painted Coil Coating industry.
In an exclusive press conference, Abdul-Samad Rezaei, the Chairman of Sunrise Metal Coating, stated, “There is a large demand for pre-painted coils in the region. The UAE market requirement alone is estimated to be 12,000 tons per month, which amounts to a monthly turnover of approximately US$30 mln. With a production capacity of 144,000 metric ton per annum, we are confident of gaining over 25% of the market share within our first year of operations”
Built at a cost of AED 500 mln, the 30,000 square meters plant is located at the Dubai Investments Park and is equipped with the latest technology. Abdul-Samad Rezaei said, “We have got the latest machinery and equipment from Italy which gives us a cutting edge in the pre-painted coil industry.” The production line itself is 150 meters in length and fully computerized, hence we are able to produce 18 tons of material in just one hour.”
Sun Rise Metal Coating specializes in the latest coil coating techniques and prides itself in producing world class pre-painted coils of Aluminiun, Galvanized and AluZinc with Polyester, PVDY and PU Top coats in Glossy, matt and metallic finishes. These pre-painted coils are widely used in the field of construction, external and internal cladding, roofing profiles, metal ceiling, insulated panel for cold storage etc. Furthermore, these pre-painted coils are also used for manufacture of consumer items such as -refrigerators, washing machines, computers, gas stoves and other home appliances. The company is introducing its pre-painted coils under the brand name ALVAN (SR), meaning “rainbow colors”. The different RAL colors make ALVAN (SR) more appealing.
Due to the high demand of pre-painted coils, there has always been a shortage of these in the market, According to Abdul-Samad Rezaei, “previously, the local manufacturers had to wait for nearly three to four weeks to receive their supplies of pre-painted coils, as these were coming from different parts of the world. However, with the development of our facility, we would be able to significantly reduce this waiting period, which in turn would improve the total output of the pre-painted coil industry.”
He further stated, “At Sunrise Metal Coating, the emphasis is on quality. Hence, apart from the Middle East and Asia, the European market too has shown a strong interest in our product, due to the high quality and diversity of our range. We are able to deliver a comprehensive and versatile range with different levels of thickness. The basic steps in the process include substrate material cleaning, preparing or priming the surface and applying coating followed by curing. Despite the superior quality of our products, we are extremely price friendly compared to the market prices.'”
Plans are already underway for further expansion. He said, “We are currently working on setting up another production line with a higher capacity and a rolling mill. However, it is too early to reveal anything more than that at this juncture."

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Qasco asks firms to contact directly for procurement issues

Construction and contracting companies facing difficulties in getting steel from the designated distributors can contact Qatar Steel (Qasco) for supplies directly, its General Manager and Board Member said .
“Many companies have contacted us in the past and got supplies from us directly," Sheikh Nasser bin Hamad Al Thani said. "We follow an open-door policy and are ever willing to help contractors," he said.
Qatar Steel has 15 distributors and sometimes delays might be caused due to problems to do with delivery, he said. "We are meeting 95 per cent of the local demand for steel."
The other factor which causes delays in delivery is sudden demand by contracting companies.The price of steel manufactured by the company is up to QR2, 600 per ton but transport costs and the way the bars are cut can escalate the prices a bit.
The prices are linked to international levels to prevent buyers from taking stocks out of the country for sale, Sheikh Nasser told Al Sharq in an interview. The company imports some 40,000 tons of steel from Turkey every month. It exports some amount of steel as well. Most of the other GCC states also import steel from Turkey. The imports into the region total something like three to four million tons a year. The UAE, Oman and Kuwait are the large importers.

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Qatar Steel's Bar Mill Unit begins operation

Qatar Steel celebrated the commencement of the operation of the new Bar Mill Unit, as one of the stages of Qatar Steel's expansion. Sheikh Nasser bin Hamad A Thani, Director and General Manager, as well as the divisions and departments manager and senior staff attended the ceremony. Among the attendees was Giuseppe Buccino Grimaldi, Italian Ambassador to Qatar, as well as Giuseppe Ferrario, Managing Director of Siemens VIA Technology, the Italian company responsible for project execution.
In his welcome speech, Sheikh Nasser bin Hamad Al Thani expressed appreciation of the dedicated efforts of Siemens VIA Technology in completing the project. E. Sheikh Nasser pointed out "Qatar Steel started, several years ago, implementing its ambitious plans for thorough expansion to meet the increased demand. The new Bar Mill Unit which we celebrate its operation commencement today, with its productivity of 700,000 tons per year, will increase the production of bars to around 1.5 million tons per year."
Sheikh Nasser added: "The expansion decision has been a strategic one made by the higher management relying on modern technology which ensures the production of a high quality product meeting all international standards. The Qatari production has very peculiar characteristics as it is not affected by climatic conditions and does not lose its mechanical properties."
On the other hand, Giuseppe Ferrario, Managing Director of Siemens VIA Technology, stated that production was commenced successfully in the new Bar Mill Unit with a production capacity of 700,000 tonnes of bars annually. He pointed out that all the state-of-the-art rolling technology was employed in the new Bar Mill and that the new plant is the first of the new advanced generation of plants in the Gulf region.
The contract was signed in 2005 on the basis of project in favor of Siemens VIA Technology (previously known as VIA Pomini). Implementation was made in cooperation with the European partner and local subcontractors. Qatar Steel is considered the first integrated steel company to be established in the GCC region. Its plants are located in Industrial Mesaieed City 45km south of Doha, the capital of the State of Qatar. Today Qatar Steel stands as one of the major integrated companies in the steel.

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Value of DGCX contracts hits $2.23b.

The Dubai Gold and Commodities Exchange (DGCX) traded 64,616 contracts valued at $2.23 billion in June.
Recently DGCX launched its rupee futures contract, becoming the first and the only futures exchange in the world to trade the Indian currency. The new contract met with a mixed response from market participants with 3,095 contracts worth $151.45 million traded in the first month, the exchange said in a statement. In June gold futures traded on the exchange clocked a volume of 48,860 contracts valued at $1.03 billion. Overall, in the currency futures segment, a total of 15,412 contracts were traded during the month, with GBP contract primarily leading the way with a volume of 8,003 contracts. The daily average number of contracts traded per day on the exchange stood at 3077 in June.
The value of total number of contracts traded since inception stands at $31.15 billion of which gold contracts account for $17.97 billion. Total open interest in respect of gold futures (the number of contracts executed bought or sold) but not closed out by the participants, as on June 29, stood at its highest-ever level of 5,561 contracts, valued at $116.24 million. A slightly higher average intra-day volatility of $7.52 per troy ounce was observed during the month in the near-term gold futures contract as against $7.28 per ounce recorded during May 2007.
In addition to its existing contracts DGCX has plans to introduce steel and plastic contracts this year. Originally the exchange had planned to launch its steel rebar futures on June 27 but postponed the launch until the end of summer. Despite the delay, DGCX sources said the exchange would be ahead of its competition in launching an internationally tradable steel futures contract. While the London Metal Exchange is planning an early 2008 launch of a steel futures contract, The New York Mercantile Exchange and Shanghai Futures Exchange are also working on the launch of steel futures.

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Arab steel production exceeds 20 million tons in 2006

The total production of the Arab companies of finished products amounted to 20.56 million tons in 2006 against 19.05 million tons in 2005, i.e., is, with a growth rate of 7.95%. This is mentioned in the report presented by the Secretary General of the Arab Iron and Steel Union, Mr. Mohamed Aid Lachgar, in the meeting of the General Assembly of the Union held in Musrata in the headquarters of the Libyan Iron and Steel Company. The total production of long products amounted to 16.2 million tons and flat products 4.4 million tons.
Ezz Dkheila occupied the first rank with a production figure of 4.6 million tons, followed by Saudi Iron and Steel Company with 3.8 million tons. There were four companies whose production exceeded one million tons each.
The report highlighted the importance of the new expansions in the future growth of this industry. The number of the new expansion projects amounted to about 97 projects, which will double the production capacity within less than 8 years.
The report also indicated the increasing volume of the imports of the Arab countries of steel products for the purpose of meeting the growing demand. The United Arab Emirates constituted the largest importing country of steel products at the Arab level. Its total imports in 2006 amounted to 6.4 million tons. The imports of the GCC's countries constitute the biggest share in the imports volume. Most projects and expansions are concentrated in these countries.

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Japan lines up $30 bn for investment in core sector

Akira Amari, Japan's minister for economy, trade and industry, is likely to announce an investment of $30 billion in infrastructure projects during his visit as the head of the largest ever Japanese delegation towards the end of this month.
The package would include building a high-speed freight railway system between New Delhi and Mumbai, a port in Gujarat, and industrial complexes in Rajasthan. The delegation, comprising over 60 executives of 15 companies, will visit New Delhi and Mumbai and have meetings with industry bodies like the CII and Ficci. However, Japanese steel companies, which have long-standing ties with their Indian counterparts, will not be a part of the delegation. India is a major supplier of iron ore to Japan. In fact, Mitsui owned the country's second largest iron ore exporter, Sesa Goa, till a couple of months ago. Nippon Steel is looking at a joint venture with Tata Steel.
Nisshin Steel recently announced plans for a carbon- and stainless steel pipe joint venture, while Kobe is in talks with the Chowgule group for an iron nugget plant in India. Also, the Japan Iron & Steel Federation is considering providing energy-saving expertise to India's steel industry. Amari's visit is expected to be followed by Japanese Prime Minister Shinzo Abe's in August. Prime Minister Manmohan Singh visited Tokyo in December and agreed to boost business ties between the two nations. Sources close to the development said Japan wanted to invest in India's infrastructure and make it a hub for production and exports to Europe and West Asia.

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KOBE STEEL, CLEVELAND-CLIFFS PLAN ITMK3PLANT IN USA

US iron ore miner and pelletizer Cleveland Cliffs is to build a 500,000 tpy iron nugget plant in the US in a joint venture with Japan's Kobe Steel after it secured a 10-year deal to use Kobe's ITmk3 iron making process. The deal covers use of the technology in all the countries in which Cliffs operates the USA, Canada, Australia and Brazil- Cliffs said in a statement. ITmk3, developed by Kobe's US-based plant making and technology subsidiary Midrex, is used to make iron nuggets of over 96 percent iron, which can be used as a substitute for pig iron by electric arc furnace-based steelmakers. Permit issues will determine when and where the plant will be built, Cliffs added.
Cliffs had been working with Kobe to develop a nugget plant at its North Shore facility in Silver Bay, Minnesota. The two companies opted to work together after a long term project also involving mini-mill steelmaker Steel Dynamics Inc (SDI), Mesabi Nugget and Ferro metrics was suspended in November 2006 after Cliffs and SDI couldn't come to terms on pricing. The Mesabi Nugget project, without Cliffs, was given a new lease of life in January when the venture acquired control of land to build its own nugget plant in nearby Hoyt Lakes, Minnesota. The ITmk3 deal gives Cliffs, which sells the majority of its pellets from its US and Canadian mines to integrated steel companies in the US and Canada, a potentially new market in US mini-mill steelmakers. 'By constructing a commercial-scale facility that will produce iron in nearly pure form, we will further than mission and be able to offer North America's non-integrated steel mills a consistently available and very high quality domestic metallic feed, which is similar in quality to imported pig iron,' said Cliffs' chairman, president and CEO Joseph Carrabba.
The ITmk3 process uses iron ore fines and pulverized coal to produce pellets which are then put through a rotary hearth furnace. The pellets are then reduced and melted and can be separated from impurities at lower temperatures and quicker than conventional blast furnaces. The technology emits 20 percent less carbon dioxide than blast furnace production with about half the capital investment, Kobe claims.

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TINPLATE MAKERS PLANNING ANTI-DUMPING SUIT

Local tinplate manufacturers are considering filing an anti-dumping case against imported products to cope with sharply decreasing market shares. The market share of Thailand's only tinplate manufacturers, Thai tinplate Manufacturing Co Ltd and Siam tinplate Co Ltd, dropped from 98 percent in 2002 to 68 percent in the first four months of 2007 due to an influx of low-priced imported materials, said Fumio Nishimura, deputy managing director for Thai tinplate Manufacturing. Thai tinplate, a Thai-Japanese joint venture, is Thailand's largest tinplate producer. Thailand is Asean's largest market for tinplate products. Thai tinplate from South Korea, Brazil, Taiwan and China is 6-20 percent cheaper than local products, said Mr. Nishimura. Thai tinplate cut its price by 2,000 baht per tonne and its product now sells for about 40,000 baht per tonne, said Mr Nishimura. “Consumers enjoy lower prices of foreign products despite the fact that their prime yields are smaller than local products by 5-10 percent,” said Mr Nishimura. “We accept that free trade has caused this situation but we want to highlight that local production capacity is enough to supply the domestic demand,” said Mr. Nishimura. If the local producers' market share continues to drop in coming months, the company would consider seeking anti-dumping measures, he said. However, he added, “We aren't so sure that there's room for government to do anything for us.” Thai tinplate says it is unable to fight a price war against imported products due to low margins and rising costs.

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PHILIPPINE SINTER BUILDS P1-BILLION PLANT

Philippine Sinter Corp. has invested P1 billion for the construction of an 18 megawatt (MW) waste heat recovery power generation project, Energy Secretary Raphael P.M. Lotilla yesterday said.
In a statement, Mr. Lotilla said the project is located within the Phividec Industrial Estates in Villanueva, Misamis Oriental and will supply power to the facility.
Philippine Sinter is a wholly owned subsidiary of JFE Steel Corp. of Japan. The plant is a standalone iron-ore sintering plant which takes inputs of iron-ore, coal and limestone. It then processes these inputs to ready them for use in black furnaces. The sintered ore is produced at a high temperature and needs to be cooled before being stored. The ore is cooled through electric fans while the heated air is expelled via heat stacks. The sintered ore is exported to Japan for JFE steel's integrated steelworks. In order to generate electricity, the heated air from the cooling process will pass through a boiler before being expelled. The steam from the boiler will be used to drive turbine and generate electricity with a maximum output of 18.6 MW. The construction of the plant started in January and is scheduled to be commissioned in the second quarter of 2008. Its operational life lasts for 20 years.
Mr. Lotilla said the electricity produced by the project would be used at the
Philippine Sinter facility to replace electricity imported from the Mindanao grid. “By producing new power from a waste source, this will help to stabilize the power supply in the area thereby helping domestic users to obtain more reliable supply of electricity,” he said. Philippine Sinter's current demand is between 22 and 24 MW. This project will displace some of the power from the fossil fuel plant, thus lessening the emission of greenhouse gas from the Mindanao grid.
Mr. Lotilla said this kind of project would help stabilize the power supply in Mindanao and address environmental concerns. Philippine Sinter's application for Emission Reduction Purchase Agreement under the United Nation's Clean Development Mechanism (CDM) Project of the Kyoto
Protocol has already been approved by the International Executive Board of the CDM last May 5, 2007. Kyoto Protocol is an agreement that seeks to limit the carbon emission of industries. Once operational, the plant can sell its carbon credits.
Philippine Sinter estimated that the project will lessen emission reduction by 70,000 tons of carbon dioxide yearly. Philippine Sinter was established in 1975 and is engaged in the mining and processing of sinterore.

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SE Asian plate import market stable

SE Asian plate import market has remained stable. Recent transactions for ship plate reflect prices that are unchanged from the last month. According to data available with SBB, Ukrainian-origin ship plate for September shipment was booked in recent days at $750/t cfr, unchanged from prices transacted last month. It has however been learnt that there are only a few export offers of Chinese ship plate as domestic demand is still strong. They say that this is contributing to the firm prices for overseas shipments. Meanwhile, Chinese commercial plate of up 6 ft width was recently transacted at around $620/t cfr Singapore, which is also about the same as last month.

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MITSUBISHI CORPORATION TO INVEST IN IRON ORE PROJECT IN WESTERN AUSTRALIA

  Mitsubishi Corporation announced the execution of an agreement by its wholly owned subsidiary Mitsubishi Development Pty Ltd with Murchison Metals Limited on the development of Murchison's iron ore assets in the Midwest region of Western Australia.The Agreement also includes the joint development of the proposed associated mainland multi-user rail and port infrastructure and envisages a total investment of A$3.0 billion. Mitsubishi and Murchison will establish and jointly control two special purpose joint venture vehicles that will each own and actively develop the mining and infrastructure assets/opportunities. Mitsubishi will be the exclusive marketing agent in relation to all iron ore sales excluding supply to certain customer.

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CHINA ADDS STEEL DUTIES TO CURB EXPORTS

  China has taken further steps to trim its surging trade surplus by making tariff changes that will raise the prices of its steel and metal products in global markets.
Recently, the Finance Ministry said it will impose duties of 5% to 10% on exports of 80 types of Chinese-made steel products, effective June 1, essentially discouraging sales of those products. China is the world's biggest steel producer, and its rising exports of low-priced steel have contributed to a catalog of trade frictions.
The ministry also raised export duties on a smaller set of steel products and said exports of refined lead and rare-earth minerals would be subject to a new tax of 10%. At the same time, tax changes for imported components and raw materials will aim to boost imports and curb China's trade surplus, the ministry said.
Current import tariffs on some products will also be lowered temporarily. For example, coal and fuel oil will be taxed at a low rate between zero and 3%, while duties on many types of electronic and mechanical components will be cut to between 2% and 6%.

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Tata group sees synergy in Ryerson JV buyout 

The Tatas are likely to buy out Ryerson's stake in their JV TataRyerson to increase synergies between Tata Steel and its recent acquisition, the UK-based Corus. TataRyerson, an equal JV between Tata Steel and the US-based Ryerson Tull, is a leading player in steel processing and distribution, a segment where Corus has the leading market share in Europe.
“We would want to go it alone as it would help us in our efforts to integrate Corus,” a senior Tata Steel official said, when asked whether the company would be open to the idea of a different JV in TataRyerson. “Although we're not keen on the US company, it would be better to control the venture here,” he added. Meanwhile, Ryerson is currently on the block and a number of large players, including the world's largest steel maker Arcelor Mittal and private equity firms such as the California-based Platinum Equity, are in the race. Any company that wins the bid to buy Ryerson globally will indirectly control a stake in the Indian JV. The Tatas' plan for the Rs 743-crore TataRyerson will be closely watched, as the group doesn't have the first right of refusal in the JV. A Tata Steel spokesperson said the company “does not have any public statement to make at this point of time. It is an internal JV matter.” Sources said the company is evaluating options for negotiations with the American partner. The size of the deal could be over Rs 400 crore,” they said. Processing and distribution facilities could add value to manufacturing plants.
TataRyerson, which is based at Kolkata, has facilities in other regions including Pune, Jamshedpur and Singur, started to support Tata Motors' small car project. The company recently started warehousing and distribution operations at Faridabad and Kolkata. The company is also the retail distributor for Tata Steel's galvanised sheets and coils in some states. “Since it has exposure to the group's plans in automobiles and other industries, it isn't surprising that the Tatas want to have control over TataRyerson,” said an analyst at an European brokerage.

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CONTIROD wire rod plant for AMER INTERNATIONAL GROUP

AMER INTERNATIONAL GROUP, a manufacturer of premium quality power cables in China and Taiwan, recently placed an order with SMS Meer, a company of the SMS group, Germany, for the supply of a CONTIROD® CR 3500 wire rod plant for its Amer Copper Technology works in Tongling, China. This investment forms part of AMER's strategy of safeguarding a starting material basis for its cable production. The CONTIROD® plant will produce 225,000 t of 8-mm-diameter copper wire rod per year, equivalent to an hourly output of 35 t. The SMS Meer scope of supply encompasses the complete process equipment, starting from the shaft furnace for melting copper cathodes, the Hazelett twin-belt caster for casting a 93 x 70 mm large starting cross-section and the twelve-stand rolling mill, as well as the media supply systems, electrical equipment and a fully automated coil packing system.
SMS group is, under the roof of the holding SMS GmbH, a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It essentially consists of the two Business Areas SMS Demag and SMS Meer, which jointly form SMS metallurgy. In 2006, some 9,000 employees worldwide generated a turnover of about EUR 2.8 bn.
This casting and rolling plant for high-quality wire rod features automatic control of the liquid copper flow as well as the use of variable-frequency individual drives for all twelve stands of the SMS mill. This line will thus be one of the most modern and economical of its kind in the world. Commissioning of the plant is scheduled for the middle of 2008.

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MMay 2007 Crude Steel Productionr

World crude steel production for the 67 countries reporting to the International Iron and Steel Institute was 112.2 million metric tons (mmt) in May. This is a 6.4% increase on May 2006. China produced 41.3 mmt of crude steel in May. This is an increase of 15.7% compared to the same month of 2006. Japan produced 10.2 mmt, an increase of 2.6%. South Korean production was 4.4 mmt, an increase of 6.3%. May crude steel production in India was 3.7 mmt, an increase of 2.8%.In Europe, Germany produced 4.0 mmt of crude steel in May, an increase of 0.8% compared to May 2006. Spanish production was 1.7 mmt, 6.0% down on the same month last year. France produced 1.8 mmt, down 0.8%. Production in the United Kingdom was 1.3 mmt in April, 3.7% higher than the same month of 2006.Russia produced 6.3 mmt of crude steel in May, an increase of 1.9% compared to the same month last year. In Ukraine production was 3.7 mmt, up 3.3%. Brazil produced 2.9 mmt of crude steel in May, up 16.2% on the same month last year.

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CELSA modernizes medium section mil

Compania Española de Laminacion S.L. (CELSA), Castellbisbal in Spain, has placed an order with SMS Meer, Germany, for the modernization of its medium section mill. The modernization incorporates new work roller tables with side-guard manipulators for the breakdown mill stand and a nine-roller CRS® Compact Roller Straightener. This investment in the medium section mill delivered and commissioned by SMS Meer in 2001 had become necessary in order to allow a wider product range to be rolled. Originally the mill was designed for parallel-flanged beams up to IPE 450 and wide flanged beams up to HE 260. Following the modernization it will also be possible to produce parallel-flanged beams up to IPE 600 and wide-flanged beams up to HEB 400. The product mix also includes angles, flat products and channels. The new equipment will be installed during the scheduled annual shutdown in November 2007. The mill components will be designed in such a way that they can be installed without extensive foundation work. The scope of supply includes not only the mechanical and electrical equipment and automation system, but also the erection and commissioning supervision and the commissioning of the electrical equipment and automation system. SMS group is, under the roof of the holding SMS GmbH, a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It essentially consists of the two Business Areas SMS Demag and SMS Meer, which jointly form SMS metallurgy. In 2006, some 9,000 employees worldwide generated a turnover of about EUR 2.8 bn. The new side-guard manipulators for the reversing breakdown mill stand will be designed to handle the wider range of beam blank formats and lengths. The new CRS® roller straightener has hydraulic adjustment systems for the upper straightening rollers, individually driven straightening rollers mounted in bearings on both sides and a simultaneous, fully automated changing of all nine straightening rollers. CRS® roller straighteners (SMS Meer patent) are already successfully in operation with several leading long-product manufacturers and are characterized by improved straightness and residual stresses of the finished products. The mill availability will be further increased by the possibility of changing the straightening rollers in a maximum of 20 minutes. A process model will also be supplied for the setting of the straightener. This investment will bring the CELSA medium section mill up to the latest state of the art and will enable Europe's widest range of products to be manufactured highly flexibly and efficiently on a single mill.

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JSW Steel keen on service centre buyouts in Europe

At a time when Indian steel companies are in the news for big-ticket acquisitions, JSW Steel the country's third-largest private manufacturer is instead following a different strategy. Although its manufacturing facilities will be limited to India, the Sajjan Jindal-led company plans to acquire service centres across Europe, where value-added products will be processed as per the customer needs. Its Rs 31-crore acquisition of Argent Independent Steel, the UK-based service centre, in April this year is in line with this principle. Now, the Rs 9,300-crore JSW Steel is looking at similar acquisitions in five more European countries France, Italy, Germany, the Netherlands and Spain.
The Argent buy was a marked difference from Tata Steel's $13.2-billion acquisition of Anglo-Dutch steelmaker Corus and Essar Global's buyout of Canada's Algoma Steel for over $1.5 billion. “We are not looking at any big acquisitions. One needs to have the management and financial width, and we don't want our projects in India to be affected,” vice-chairman and managing director Sajjan Jindal told ET. “More importantly, we want to maximise the cost advantage that India has in manufacturing.” At present, JSW Steel is expanding capacity at its Karnataka facility to 10MT, scheduled by 2010. It has multi-billion-dollar greenfield projects planned in West Bengal and Jharkhand. According to its long-term plans, the company wants capacity to be at 30MT by 2020. “But we believe that finishing the steel into specialised products should be done closer to the market, in these European countries,” said Mr Jindal. To complement its operations in India, JSW Steel is now scouting for raw materials.

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Funds ask Dutch AFM to probe Arcelor Mittal

A group of hedge funds has asked the Dutch market regulator AFM to halt Amsterdam trading of Arcelor Mittal , the world's largest steel group, saying it was misled during the takeover that created the company. According to Dutch newspaper Het Financieele Dagblad, investors including Trafalgar Asset Managers and SRM Advisers say they lost a total of more than 1 billion euros ($1.33 billion) through the transaction. They want the AFM to ensure there is full clarity surrounding the takeover, and point to the regulator's order to Dutch bank ABN AMRO in May to publicize details surrounding a bid from British bank Barclays , as an example of its intervention. The paper said the regulator would not intervene. The AFM was not immediately available for comment. Mittal bought Arcelor by offering 11 of its own shares for seven of Arcelor, a ratio of 1.571.
Arcelor Mittal said it would buy out minority shareholders who hold slightly under 6 per cent of Arcelor at an exchange ratio of eight Arcelor Mittal shares for seven Arcelor shares, a ratio of 1.143. The hedge funds are threatening legal action if they don't get the higher price for their shares. Not all shares were given up immediately as some investors held out for a higher offer. Arcelor shareholders in 2006 accepted a takeover offer from Mittal Steel , then led by Lakshmi Mittal, after an acrimonious fight between the two companies. The group has said it aims to finish the ongoing merger and become a single legal entity in the course of 2007.

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