February 06, 2012

Bhushan Steel puts proposed WB steel plant on hold

New royalty rates for minerals in August

Tube Investments of India to invest INR 550 crore in expansion

SC panel suggest cancellation of 49 mining leases

Mahindra and Mahindra January sales up by 22%

Excellence enhancement centre for the Indian power sector launched

South Korean industrial output to remain weak for some time

US drilling rig count fell by 11 units to 1997 last week

Copper prices jump on improving US jobs market

Afghan copper mine income to increase by USD 163 million

Cambodia to import oil from Iran

Ukraine may establish a tripartite gas transport consortium with Russia and EU

Chinese stainless steel output exceeds 12 million tonnes in 2011

Pipeline operations focus for Bahrain summit - Feb 06

Experts from within and outside the region will discuss the latest technologies and concepts for maintaining and operating oil and gas pipelines in the most efficient and cost effective manner at an upcoming conference in Bahrain.

The first international Best Practices in Pipeline Operations and Integrity Management Conference and Exhibition will be held from March 19th to 21st 2012 at the Gulf Convention Centre.

Dr Abdul Hussain bin Ali Mirza energy minister of Bahrain said that “Bahrain’s position as an important destination for global events in the Gulf and the Middle East has been enhanced by the number of energy industry events planned for 2012.”

Dr Ali Mirza said that “This will enhance Bahrain’s position as an important destination in the Gulf and the Middle East for such global events that contribute to the development of professionals, particularly in the field of oil and gas. Bahrain is proud to host the first international conference on Best Practices in Pipeline Operations and Integrity Management.”

He said that as Bahrain establishes itself into one of the best venues for business networking in the region, events like this will provide a great opportunity to businesses in the pipeline industry and clients to exchange notes and forge new business relations.

_{(Sourced from: www.steelguru.com)}

Investments in Vietnamese steel industry slowing down - Feb 03

Experts believe that the investment in the steel industry would slow down in the time to come, since manufacturers have witnessed how the economic difficulties have influenced other manufacturers.

Mr Do Duy Thai general director of Viet Steel Corporation said that "In general, investors consider the demand in the future when making investment decision. Meanwhile, the low demand has made them hesitant."

Mr Thai believes that the investments in steel projects, both by domestic and foreign investors, would slow down in the next five years at least.

Mr Nguyen Tien Nghi deputy chair of VSA said that it is very likely that no one would spend money on steel production any more. The total capacity of the domestic steel mills has reached 9 million tonnes, while the total consumption in 2012 is expected to reach 6 million tonnes only.

As for cold rolled steel, Mr Nghi said that there are many investment projects which make this kind of products with the total capacity of up to 3.6 million tonnes, while the consumption is only 1.7 million tonnes.

Regarding the information about the anti subsidization investigation to be taken by the US Department of Commerce against black steel pipe, galvanized steel pipe products from Vietnam, Mr Nghi said that the US side has defined two compulsory defendants, namely SeAH Steel Vina, a 100% South Korean mill in Dong Nai province and Hong Nguyen Steel Company in Hai Phong City.

The Ministry of Industry and Trade has requested investors to speed up some key projects in 2012, including the Thai Nguyen upgrading project, the Lao Cai Cast Iron and Steel Mill, the Thach Khe Steel (2 million tonnes per annum) and the JV between Indian Essar and some domestic enterprises.

_{(Sourced from www.steelguru.com)}

China and Japan scramble for oil as Sudan shuts fields- Feb 02

It is reported that the shutdown in Sudanese oil supply could drive up already record premiums on spot crude markets as top Sudan customers China and Japan scramble for alternatives even as they weigh the impact on oil flows of international sanctions on Iran.

South Sudan has shut down its oil output, estimated at around 350,000 barrels per day as it and neighbor Sudan row over how to disentangle their oil industries, borders and debt.

According to Chinese customs data, before the shutdown, China imported most of that volume bringing in around 260,000 barrels per day in 2011. That loss in addition to cuts China has made in imports from Iran as Beijing and Tehran bicker over contract terms has left China looking for alternatives equivalent to around 10% of its imports or around 545,000.

Mr Victor Shum senior partner at oil consultancy Purvin & Gertz said that “It will be a challenge to try to meet the shortfall in supply due to this sudden disruption as the overall quantity is not really that small. Overall this is a tighter supply situation for Asian refiners.”

The regional spot market is unlikely to provide much relief because of limited availability due to a spurt in demand from Japan for power generation after a devastating earthquake crippled nuclear facilities last year.

The supply disruption has added to the rally, boosting spot premiums for March to a record. It could drive prices even higher although any rise may be tempered by refinery maintenance in the Q2.

The shutdown by South Sudan in protest has cut off supplies to equity holders China National Petroleum Corporation, Malaysia’s Petronas and India’s Oil & Natural Gas Corporation.

An official with one of the equity holders said that “We expect some disruption in loading schedules with the production shutdown. We hope for a resolution soon.”

(Sourced from: www.steelguru.com)

Ukraine could boost alternative energy capacity by 600 MW in 2012- Feb 01

According to the State Agency for Energy Efficiency and Conservation forecasts, the combined installed capacity of wind and solar power plants in Ukraine could increase by 600 MW in 2012 with the construction of new facilities.

Agency head Mr Nikolai Pashkevich said at a round table on energy strategy that "Two sectors solar and wind power will develop rapidly in Ukraine. This is consistent with global trends. We expect capacity growth in 2012 as stated by investors of about 300 MW for wind power stations and about the same amount for solar power."

He said the installed capacity of power plants using renewable energy sources doubled in 2011, and production of electricity increased to 330 million kWh from 240 million kWh a year earlier.

The agency's deputy head, Mr Sergei Dubovik citing the National Energy Regulation Commission said that installed capacity of power generating companies operating under the "green" tariff increased to nearly 400 MW in 2011 from 155 MW a year earlier.

Mr Pashkevich said renewable energy in Ukraine is developing more rapidly than in any other European country. He said that "If we maintain this pace, then according to optimistic estimates by 2020 we will reach current European indicators and that is a 12% share of electricity from renewable sources in the total energy balance."

_{(Sourced from: www.steelguru.com})

India remains attractive destination for global steel companies- Jan 31

Consultancy firm Ernst & Young said India continues to be an attractive investment decision for major global steel manufacturers notwithstanding the fact that so many proposals are yet to take off.

Ernst & Young said that "India's iron ore resources and its surplus production are significant strengths that have not been fully leveraged by the steel industry. This strategic advantage, coupled with expected demand growth, makes it an attractive investment destination for global majors.”
It added that "However, success has eluded most of them, with little progress on implementation of most Greenfield plants. Despite this, India continues to be on the radar of most of the global players for retaining growth.”

Ernst & Young said that "Indian steel sector needs to address its own challenges and opportunities, some of which are unique to the country. While issues around social licenses to operate and growing resource nationalism are visible in most developing economies, their impact on the growth of the Indian steel sector is more profound at current times.”
The consultancy firm also said despite weak cues from the global economy, India's steel consumption may be better than others in the current year as demand from infrastructure and consumer durables grow.

It said that "Crude steel capacity is also expected to increase in the next two-three years as large expansion projects are commissioned.”

The history of global steel sector evolution in last 5 decades has clearly outlined that investment in steel capacity move to the region where the demand is growing. With the projected growth of almost 10% in economy, India is likely to see one of the most promising growth scenarios in steel consumption making it the right place for investments in steel sector for capacity addition.

While Indian steel sector has few giants, followed by handful of mid sized players but the largest chunk comes from small sized companies. Their respective aspiration levels very to a great extant. While giants and mid sized players talk in millions of tonnes, aspirations of smaller companies are well below a million tonne.

Another unique character surrounding Indian steel sector is the degree of de-fragmentation, which makes exchange of information quite difficult for technology providers to reach them or vice versa steel makers to know what all is available to fulfill their dreams of expansions.

_{(Sourced from: NDTV Profit)}

Copper falls from 4 month high as euro weakens- Jan 30

Copper slipped from a four month high under pressure from a weak euro on concerns about the region's debt crisis although expectations of US infrastructure spending and data showing falling inventory levels limited further falls.

Three month copper on the London Metal Exchange was down 0.6% to USD 8,308.75 per tonne by 1125 GMT from Tuesday's close of USD 8,360 having earlier hit its highest since September 19th 2011 at USD 8,455.25. The euro turned lower against the dollar, erasing gains from earlier in the session when data showed German business sentiment beat expectations by rising for a third month in a row in January. A strong dollar makes commodities priced in the US unit more expensive for holders of other currencies.

Mr Andrey Kryuchenkov analyst at VTB Capital said that this week we will be trading purely on euro zone news. Frustration is growing because an agreement is yet to be reached about Greece's debt talks. People are too concerned with the euro zone debt crisis so I don't expect sustained gains for metals from here. Trading volumes remained low with top consumer China away. The Shanghai Futures Exchange is closed this week for the Lunar New Year holiday. Chinese financial markets will reopen on January 30th 2012.

In a boost to the metal used in power and construction, Mr Obama president of US proposed using half the money America will save from the end of its wars in Iraq and Afghanistan in high-speed rail lines and repairs to the nation's creaking roads and infrastructure.

Mr Mark Pervan head of commodities research at ANZ Research in Melbourne said that it creates jobs, it creates growth, it boosts the economy. It's a smart move and one ultimately that will be good for the commodities market because all the focus has been on emerging market demand.

Market focus now turns to the Federal Reserve with the US central bank expected to begin a new practice of announcing policymakers' interest rate projections when a two day meet ends later on Wednesday. Large stock withdrawals in LME-monitored warehouses helped support copper with the latest data showing inventories monitored by the LME dropped by 2,500 tonne to 3,39,750 tonne, its lowest level since September 2009.

Mr Kryuchenkov said that "The pace of this withdrawal is quite strong and that indicates there is steady spot demand. On the technical front, copper could break on the upside, a trader in London said, citing a widespread theory that Chinese copper traders were short and with the metal trading near 200 day moving average which if triggered could send a buy signal to funds.”

He said that many copper traders are convinced the Chinese are short and will be big buyers after the holidays, an added reason why copper is facing 8,500 and a big breakout.

Traders said that a break above the 200 day moving average for the first time in around 5 months could spur fresh technical buys but with China away any advance would likely prove short lived. In other metals, aluminum fell to USD 2,231 per tonne from a close of USD 2,239 while zinc was at USD 2,114.75 from USD 2,125.

_{(Sourced from economictimes.indiatimes.com)}

Russian automakers call for cuts in steel duty- Jan 27

It is reported that Russian carmakers are calling for the abolition of import duty on steel because they are unhappy with the quality of local supplies.

According to the Kommersant business daily the Association of Russian Automakers has asked the Industry and Trade Ministry to consider abolishing the import duty on several types of flat-rolled products used in auto production.

The carmakers are said to be unhappy with galvanized deep drawing rolled stock used for the front of a car body. The ministry will consider abolishing the duty at a meeting on 1 February.

Import duty on rolled stock amounts to 5%. A total of 1.7 million vehicles were produced in Russia last year using on average, 250 kilogram to 300 kilogram of the galvanized rolled stock necessary for each car a total of 425,000 tonnes to 510,000 tonnes.

Kommersant said if import duties are abolished it could save USD 1.8 million. GAZ Group said abolition of import duties would allow Russian carmakers to reduce the overall cost of car production.

_{(Sourced from www.steelguru.com)}

Japanese steel dealers trying to improve reselling prices - Jan 25

It is reported that Japanese steel dealers are trying to improve reselling prices. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, set its steel product selling prices unchanged for February contracts. Steel sheet dealers around Tokyo said market price of hot rolled steel sheet is totally weak for both imports and domestic integrated steels' products.

Another dealer suggested reselling volume is stable but price competition is very severe. Dealers are presently forced to reduce losses or offer low prices against second and third dealers.

Steel plate dealers showed weak reactions against Tokyo Steel's latest price announcement. Market price of imported plate has already declined to the level as low as Tokyo Steel's price at JPY 65,000 per tonne. Price gap is only JPY 10,000 between Tokyo Steel's and domestic integrated steels. Steel plate shipment seems slightly recovering for large building projects around Tokyo while maintains slow for small and middle class dealers. Plate dealers are minimizing orders to steel makers including Tokyo Steel.

H beam dealer source said they aim to raise the market bottom price since dealers have failed to pass Tokyo Steel's previous price hike on the reselling price fully. Order volumes for H beam dealers maintain low. H beam market price is JPY 73,000 to JPY 75,000 per tonne for base size around Tokyo. Dealers can't gain profits enough when Tokyo Steel' price announcement is JPY 71,000.

H beam users strongly require price cut against dealers. Meanwhile, demand upturn is expected for reconstructions in the disaster areas of the Grate East Japan Earthquake. Rebar market price is JPY 57,000 to JPY 60,000 around Tokyo.

One dealer source said the market price would not be affected so much by Tokyo Steel's latest price announcement. Rebar makers are offering price hike though ferrous scrap cost is lowering. Rebar dealers aim to fix the market mid price level at JPY 60,000.

_{(Sourced from: www.steelguru.com)}

China and India set to drive up hybrid car sales- Jan 24

According to BP, sales of fuel efficient, hybrid cars may have got off to a sluggish start, but ownership is set to explode to account for more than half of all vehicles sold by 2030, as improving models, government incentives and rising petrol costs escalate demand.

In its latest "energy outlook" report, the oil giant said phenomenal demand in India and China would drive up the number of cars worldwide from 1 billion to 1.6 billion by 2030.

Although this represents an increase of 60% in vehicle ownership, the total amount of energy consumed by the world's cars will only rise by 26 per cent as hybrid ownership jumps from less than 1% of vehicles to represent a third.

However, the oil giant warned that, even with projected efficiency gains inside and outside the transport sector, total worldwide energy usage will increase 39% by 2030 putting well out of reach targets to keep global warming at below 2 degrees Celsius, the level at which experts agree the worst consequences of climate change could be avoided.

Coal, oil and gas will continue to dominate energy production, with each forecasted to account for about 30% of the total power produced in 2030.

This has potentially huge geopolitical implications, as China will have to import more than five times the amount of coal, oil and gas as it currently does, while India will need to bring in twice as much. In Europe, imports of oil and coal will remain near current levels, while natural gas imports will rise by about two-thirds.

BP said that meanwhile, the phenomenal growth of shale oil and gas production and widespread cultivation of biofuels in the US and tar sands developments in Canada, will transform North America from having a substantial energy deficit to a small surplus by 2030.

It sees energy generated from renewable sources, which here include wind, solar and biofuels, but not hydropower, growing much faster than the traditional fossil fuels of oil, gas and coal.

BP forecasts that renewably generated energy will grow by 8.2% a year and, together with nuclear and hydro power, the non fossil fuel contribution will satisfy 34% of the additional energy demanded by 2030.

_{(Sourced from: www.independent.co.uk)}

Italian Steelmaker to build steel plant in Urals- Jan 20

It is reported that Italian steelmaking group Cividale-Valduga will invest EUR 50 million to build a steel-casting plant in the Chelyabinsk region in the Urals in 2013.

Mr Chiara Valduga Cividale-Valduga group President was quoted in the statement as saying that "It will be the first facility in Russia which produces such high-quality steel. Overall volume of investment is at about 50 billion euros."

He said that the project will be implemented together with Russia Konar firm an oil and gas pipeline and parts manufacturer based in Chelyabinsk.

Mr Vladimir Pavlov Regional Industry Minister said the plant's products will be used in the tube-making industry.

_{(Sourced from: www.steelguru.com)}

Severstal Columbus launches 2nd hot dip galvanizing line- Jan 19

Severstal North America announced the launch of its new second Hot Dip Galvanizing Line at Columbus in Mississippi in US.

The new line has a designed annual capacity of 600,000 net tons of hot rolled and cold rolled galvanized products. Capable of galvanizing product up to 72” wide with a gauge range of up to 0.125”, the line will target applications for construction, infrastructure and culvert markets.

The start up of HDGL2 complements the recent launches of the 2nd EAF primary strand and Push Pull Pickle Line and completes the $550 million Phase II expansion project at the Columbus plant, effectively increasing annual steel capacity to 3.4 million net tons and galvanizing capacity to 1.1 million net tons.

Major equipment suppliers for Phase 2 were ABB, Ebner, GE Power, SES, SMS Siemag and TMEIC.

The project management was facilitated by Integrated Project Resources.

Engineering services were provided by ABB, Bricmont, CV Engineering, E & C Engineering, Ebner, GE Power, P & H, Schust Engineering, SES, SMS Siemag, Tenova Core, TMEIC Inc and Zenar. Construction and installation services were provided by ABC Construction, Cache Valley Electric, Eutaw Construction, Schueck Steel Erectors and Systems Contracting.

_{(Sourced from: www.steelguru.com)}

Ukraine power plants to run on coal to save 6 billion cubic meters of gas per year- Jan 18

According to Mr Yuriy Boiko Minister of Energy and Coal Industry as saying that Ukraine is planning to make all thermoelectric power plants run on coal which will save about 6 billion cubic meters of gas per year.

He said that "We will transfer all of our TPPs to coal. This will take about a year, but we have already begun this work."

The Minister noted that implementation of this program takes adoption of a law allowing privatization of thermal power stations and their granting on lease. He added that "Once the law is adopted on their withdrawal from the list of objects that are not subject to privatization, we'll subject them for concession or privatization. But only on condition of transfer to the water-coal technology."

Mr Boiko noted that Ukraine is negotiating with Chinese partners the introduction of appropriate technology. He added that "We are currently developing this technology together with our Chinese partners. It will give us savings of about 6 billion cubic meters of gas a year."

As reported, coal production in Ukraine in 2011 reached a record high, having increased by 8.8% to 81.8 million tons.

_{(Sourced from: www.steelguru.com)}

Nissan aims to sell 8000 cars in South Korea in 2012- Jan 17

Nissan Motor Co said that its aims to sell 8,000 cars in South Korea in 2012 by aggressively marketing popular models.

The company's local distributor said the sales target represents a 9.59% increase from the 7,300 cars it is expected to sell this year. To meet the goal, the carmaker will open dealerships in cities such as Daejeon and Jeonju, potentially expanding its domestic sales outlets to 16 and launch new vehicle models.

It plans to introduce the new Altima midsize sedan, sell the limited edition of its Cube box type car and introduce several new Infinity vehicles in 2012. Nissan's Cube and luxury brand Infinity are very popular in South Korea.

Nissan also said it wants to import more auto parts from South Korean manufacturers as part of its global multi sourcing strategy. The company started buying Korean parts and components on a trial basis in October.

_{(Sourced from: www.steelguru.com)}

Hyundai Motor eyeing domestic sales of 700000 cars in 2012- Jan 16

Hyundai Motor Co, South Korea's largest carmaker, said that it is targeting to sell 700,000 vehicles in the domestic market in 2012, up by 2.4% YoY from 2011.

Hyundai Motor, which sold 683,570 units locally in 2011, said that competition in the domestic market is expected to be fierce this year and a free trade deal with the US, expected to go into effect in the next few months, could make foreign made cars more competitive.

Mr Chung Eui sun vice chairman of Hyundai said that "Imported cars are expected to compete more aggressively for domestic market share so Hyundai must counter by offering consumers premium services and devise new marketing ideas."

Hyundai, which controlled about 46% of the domestic market in 2011, said that it had sold 4.06 million cars worldwide in 2011, up by 13% YoY.

Kia Motors Corporation, Hyundai's smaller affiliate, said that it will seek a sales gain of around 1.4% to 500,000 units in 2012 from 493,003 vehicles sold in 2011. This target should allow it to hold onto its 33% market share in the new year since new car sales are predicted to reach 1.5 million units.

Industry sources said that both companies have announced conservative growth estimates, reflecting general economic uncertainties.

Meanwhile, Renault Samsung Motors Co, the local unit of French automaker Renault SA, said that it wants to sell 110,000 cars in South Korea in 2012, effectively unchanged from 109,221 it sold the year before. The carmaker, which had a market share of 7.4% in 2011, said that every effort will be made to enhance customer loyalty and after sale services in the new year.

Other carmakers such as GM Korea Co, the South Korean unit of US automaker General Motors Co, said that it is aiming for a market share of 10%, up from 9% tallied for 2011, while Ssangyong Motor Co, the country's smallest carmaker, is targeting sales reaching 47,000 units, or a gain of 21% from the year before.

_{(Sourced from www.steelguru.com)}

Jordan and Qatar plan major offshore gas terminals- Jan 13

It is reported that Qatar and Jordan are inching closer to constructing a multimillion dollar offshore gas terminal in Aqaba and a number of reception terminals in Jordan by 2013 to help the kingdom receive liquefied gas to replace imports from Egypt.

Mr Qutaiba Abu Qura minister of energy of Jordan told Gulf News that the plan aims to make up for the heavy dependence on Egyptian gas supplies which were badly affected after pipelines spanning 400 kilometers in the Sinai Peninsula were targeted in ten acts of sabotage affecting supplies of liquefied gas to Jordan.

He said that "We had very technical talks about this project and we discussed its financial feasibility. A gas deal between the two countries is within reach."

For his part, Mr Mohammad Bin Saleh, Qatar's minister of energy, said that "The talks were very positive and we explored the possibility of providing Jordan with Qatari liquefied gas and natural gas."

He said that it would take Jordan up to three years to benefit from any new energy agreement due to infrastructure requirements.

_{(Sourced from: www.steelguru.com)}

Nissan and Daimler to jointly produce Mercedes Benz engines- Jan 10

Nissan Motor Co Limited said that it will produce Mercedes Benz 4 cylinder gasoline engines together with Mercedes Benz parent firm Daimler AG at the Japanese car maker's power train plant in Decherd, beginning in 2014, marking the latest step in the two car makers' comprehensive alliance plans.

Mr Carlos Ghosn CEO of both Nissan and its French affiliate Renault SA said that "This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far. Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America."

Nissan and Daimler are planning for production capacity of 250,000 engines per year at the Tennessee plant. The engines will be used in Mercedes Benz cars and in Nissan's Infiniti premium brand.

In September 2011, Nissan and Daimler said the Infiniti brand will start producing a new compact car based on Mercedes Benz technology in 2014.

Mr Ghosn said at the time that Renault is looking into using Mercedes Benz modules as well. Both auto makers stressed at the time that there are no taboos for future cooperation projects as long as they are mutually beneficial.

The Renault Nissan alliance collectively holds a 3.1% stake in Daimler and the German luxury car maker has an equivalent stake in each of its two alliance partners. Under the cooperation agreement, the three companies pledged to cooperate in developing small vehicles and engines to reap cost synergies. They also agreed to cooperate in the field of light commercial vehicles.

(Sourced from: www.steelguru.com)

Suzuki Motors to set up engine plant in Indonesia- Jan 09


Suzuki Motor Corp said today it will build a plant to produce engines in Indonesia as part of its plan to raise four wheel vehicle production to more than 100,000 units per year in the country.

In an effort to boost production in the growing market and increase local procurement on the back of the strong yen, the company plans to invest some JPY 30 billion (USD 390 million) to open the plant in 2014 with annual capacity of about 100,000 engines.

Suzuki currently produces 50,000 engines in Indonesia.

The company has acquired a 1.3 million square meter site for the plant for JPY 10 billion. All the engines manufactured at the plant as well as existing plants will be used for four wheel vehicles produced locally, according to the company.

Suzuki, which has an annual production capacity of 80,000 four wheel vehicles and 1 million motorcycles in Indonesia, said it will invest an additional JPY 20 billion to expand four wheel vehicle production in the country.

(Sourced from: BL)

Toyota Motor seeks JPY 5000/t steel price cut- Jan 06

Nikkei reported that Toyota Motor Corporation is seeking a price reduction of about JPY 5,000 per tonne from Nippon Steel Corporation and other steelmakers for the second half of the business year ending in March 2012, in line with a fall in materials prices.

It may be recalled that steelmakers succeeded in hiking prices for steel sheet in the last round of negotiations, citing higher materials prices, but are resisting significant cuts this time due to depressed earnings on the back of tougher competition against Asian rivals.

_{(Sourced from: Nikkei)}

US automakers well positioned for 2012- Jan 05

Fitch Ratings expects the financial profiles of US automakers and parts suppliers to remain resilient in a downside scenario characterized by sluggish global economic growth and weaker than expected North American light vehicle demand.

Fitch said that "Unlike 2008-2009, when US original equipment manufacturers and their primary suppliers were forced to undertake dramatic restructurings in the face of plummeting demand, we believe the Detroit Three (Ford, General Motors, and Chrysler) and the largest U.S. parts makers are well positioned from both a cost and liquidity standpoint to withstand significant demand pressure this year. While we continue to see US light vehicle sales growing modestly to approximately 13.2 million units in 2012, credit profiles are likely to remain relatively stable if a slowdown in unit sales and softer pricing undercuts margins this year."

Relative to the last downturn, operating profiles are more resilient as a result of capacity reduction, lower fixed costs, and a more manageable labor cost structure linked to the recently ratified United Auto Workers contracts. We estimate that the break-even industry sales level for the Detroit Three and major parts suppliers is now about 10.5 million light vehicles, corresponding to 2009 recessionary sales volumes.

OEMs and suppliers have also taken steps to bolster their balance sheets since 2009, with generally solid liquidity positions and ample credit facility availability across the industry. Importantly, management teams have also repeatedly emphasized their commitment to achieving investment grade status over the medium to long term, with a focus on free cash flow generation, strong liquidity, and consistent debt reduction.

Although US light vehicle sales are likely to grow this year, the forecasted size of the market, at 13.2 million units, will remain well below the industry annual sales level of approximately 17 million units seen from 1999 through 2006. We believe the US industry may struggle to exceed annual sales of approximately 15 million light vehicles at the peak of the current demand cycle.

With auto sales in Western Europe likely to fall this year and sales growth rates declining in key emerging markets such as China, India, and Brazil, US automakers' operating results in 2012 will depend more directly on volume growth and pricing traction in the US market.

Although a global downturn would clearly impede the progress of US automakers in their efforts to strengthen their balance sheets, most Fitch rated issuers have sufficient cushioning in their credit metrics to withstand a significant demand shock without driving negative changes in outlooks or ratings. This fundamental improvement in the US auto industry's resilience forms the primary foundation of our positive outlook for the industry in 2012.

_{(Sourced from: www.steelguru.com)}

Aluminium likely to remain volatile in first half of 2012- Jan 03

Aluminium is likely to remain volatile in 2012. Intensifying economic concerns, coupled with the euro zone debt woes may keep the metal under pressure in the first half. In the second half, however, the light base metal is set to get support from a possible recovery in manufacturing and infrastructure sectors.

Prices accentuated in first half of 2011 to reach its two year high of USD 2803 a tonne, at the London Metal Exchange translating thereby at INR 124.15 a kg on the Multi Commodity Exchange on back of growth optimism worldwide. But the metal failed to carry the strength as euro zone crisis took over and slackening manufacturing activities.

The metal market experienced paradigm shift of production centre as its output headed towards the eastern side of the globe due to rise in power costs leading to closures by smelters in the US and Europe. Alumina prices treaded higher during first half of 2011, even though Chinese and global production increased due to re-stocking activity. However, stocks in LME hit a record high above 4.71 million tonnes in May, backed by turbulence in Europe and the US which impacted the trend later in the year.

Mr Jayant Manglik president retail distribution of Religare Securities Ltd said that “However, China is set to adopt a path of monetary loosening policy in 2012 to avoid hard landing of its economy which may prop up prices coupled with the renewal in demand from Japan, once manufacturing activity recommences. The transportation sector will be the single largest end-use market for aluminum demand. Despite high inventories of aluminum in warehouses, the demand growth and looming supply issues in China may push prices northward in the second half of 2012.”

According to the World Bureau of Metal Statistics, global primary aluminum consumption rose 5.% YoY to 28.1 million tonnes between January to August this year. Consumption in China during the first eight months of this year rose 6.2% while growth in Germany during the same period rose by a whopping 15%

China accounts for a whopping 40% share in global aluminum consumption and the EIU expects growth in the country to slow to 6% in 2011 as compared with a rise of 10.5% in 2010. Economic prospects for China look weak considering the tight lending market scenario, weak demand for cars and a grim global economic scenario.

Japan which accounts for 5% of world consumption is expected to witness a slowdown on the back of problems in the manufacturing supply chain after the earthquake and tsunami that struck the nation in March'11.

India, accounts for 4% of global aluminum demand, witnessed a decline of 10.5% YoY between January to August. EIU expects a decline in Indian aluminum consumption by around five per cent. But in 2012 and 2013, demand is forecast to rise around nine per cent. Producers including Hindalco and Nalco are set to see a turnaround in sales in the second half of 2012.

Mr Naveen Mathur associate director of Angel Broking said that “Rising inventories coupled with a comfortable supply-side scenario is expected to act as a negative factor for aluminum in the coming year. But with improvement in the US economic scenario and expected decline in interest rates in China, sharp downside in prices will be cushioned in the second-half of the year.”

Aluminum prices on the LME slumped by more than 20%, with major downside pressure seen in October and November. Average monthly prices of the metal slipped from USD 2687 a tonnes in April to USD 2058 a tonnes in December translating thereby at INR 119 a kg and INR 108 a kg in rupee term.

(Sourced from: BS)

Geely Automobile to enter UK market- Jan 02

It is reported that Geely Automobile Holdings Ltd the listed unit of China largest privately owned carmaker Zhejiang Geely Holding plans to export a domestically-produced model to the UK in late 2012.

The report said that the Chinese automaker will sell its Emgrand EC7 vehicles at a retail price of about GBP 10,000.

A senior official from the company said that it plans to recruit 30 to 40 dealers in the UK.

So far this year, Geely has exported nearly 40,000 vehicles, reflecting a robust growth of 120%. The company auto exports are expected to surge 150% year on year in 2012.

(Sourced from: www.steelguru.com)

Indonesia PLN to operate 3 new coal fired plants- Dec 30

It is reported that Indonesian state utility Perusahaan Listrik Negara will operate three new coal-fired power plants in Banten.

Mr Nur Pamudji PLN CEO said these power plants are crucial to step up power capacity in Java and Bali from 19,700 up to 23,000 megawatt.

The coal-fired power plant is also said to cut PLN expenses as much as IDR 19.9 trillion per year by converting from fuel-based power plant.

Details on power plant projects as follows:

1. PLTU 1 BANTEN - SURALAYA: Capacity at 1 x 625 MW with 2.9 million tonnes per year coal consumption. Located in Suralaya, Banten with investment size at around USD 478 million. The project is run by CNTIC and Indonesia state-owned PT Rekayasa Industri consortium.

2. PLTU 3 BANTEN - LONTAR: Capacity at 3 x 315 MW with 1.4 million tonnes per year coal consumption. Located in Lontar Banten with investment size at around USD 808.4 million. The project is run by China power equipment giant Dongfang Electric Corporation and PT Dalle Energy consortium.

3. PLTU TANJUNG JATI B : Capacity at 2 x 662 MWt with 2.2 million tonnes per year coal consumption. Located in Tubanan, Central Java with investment size at around JPY 160 billion. The project is run by Japan third-largest trading firm Sumitomo Corporation, Wasa Mitra Engineering and Bangladeshi power firm Summit Power Development Ltd.

Indonesia wants to boost its electricity capacity under the government fast-track program to add a total of 20,000 megawatts generating capacity. Power shortages are common in Indonesia where poor infrastructure is one of the factors restricting growth in Southeast Asia largest economy.

_{(Sourced from: www.steelguru.com)}

SAIL and Kobe Steel to form JV for ITmk3 project study- Dec 29

Steel Authority of India Limited and Kobe Steel, Ltd of Japan have agreed to establish a joint venture company to carry out a detailed feasibility study for a commercial ITmk3 iron making plant in India. Provisionally called SAIL-KOBE Iron India Private Limited, the proposed 50-50 joint venture will be headquartered in New Delhi.

Mr Sato president of Kobe Steel Ltd said that “It is my earnest wish that our new iron making technology ITmk3 will contribute, through this joint venture project with SAIL, to further development of Indian Steel industry as well as of India itself. Further, I do hope this ITmk3 JV Project will become a golden opportunity for the both companies to explore other fields where we can collaborate for mutual benefits.”

Mr CS Verma said that “The joint venture will bring about an era of path-breaking technological collaboration between the two advanced and modern companies, heralding a new dawn for the Indian steel industry.”

The two companies have so far been jointly working on a preliminary study to utilize the ITmk3 process developed solely by Kobe Steel since signing a memorandum of understanding in March 2010. Kobe Steel and SAIL will now carry out the detailed feasibility study to bring about the early implementation of the project.

The project consists of one ITmK3 iron making plant and associated facilities. With a capacity to produce 500,000 tonnes of iron nuggets per year, the plant would be constructed at SAIL’s Alloy Steels Plant in Durgapur in West Bengal. The project would use iron ore from SAIL’s mines. Non-coking coal, sourced within India, will be used as the reductant in the ITmk3 Process.

After the detailed feasibility study is completed with the environmental permits having been obtained, plant construction would commence in 2013 at the earliest and the plant would go into operation in 2015.

ITmk3 technology is the latest generation iron making technology where iron nuggets are produced by using iron ore fines and non coking coal. Conventional BF route requires iron ore lumps, sinter and coking coal to produce pig iron. ITmk3 technology produces high quality iron nuggets and the technology is also environmental friendly.

Kobe Steel and SAIL will have the right to utilize the iron nuggets produced at the Durgapur plant in proportion to their equity share in the joint venture for their own use, or the joint venture may sell the nuggets directly to the market.

Through the ITmk3 project, Kobe Steel and SAIL will be able to contribute to the further development of India’s steel market.

_{(Sourced from: www.steelguru.com)}

Japanese carmakers to cut production costs by buying more parts from overseas- Dec 28

The Yomiuri Shimbun reported that Japanese domestic automakers, which are being squeezed by the extreme rise in the yen's value, are seeking to cut production costs by buying more parts from overseas.

As per report, some economists fear Japanese parts makers will be forced to relocate plants overseas or go out of business if the trend continues. Economists say this could lead to the complete hollowing-out of the Japanese automobile industry.

Toyota Motor Corporation in August 2011 invited officials from about 40 South Korean parts makers to its head office in Toyota, Aichi Prefecture, to display their companies' technologies. Toyota held the event to determine the technological capabilities of South Korean makers. In mid December 2011, Toyota held a similar event in Seoul. Toyota is already using parts from South Korea in some domestic assembly lines.

A Toyota executive said that "South Korean makers' technological capabilities and product quality are high. And their parts are also 20% to 30% cheaper than parts made by Japanese makers."

Nissan Motor Kyushu Co in Kandamachi, Fukuoka Prefecture, plans to use only parts made overseas or in Kyushu in the future.

Fuji Heavy Industries Limited plans to raise its percentage of parts procured from overseas from its current level of about 13% to 30% by fiscal 2015.

Mitsubishi Motors Corporation also plans to raise the percentage of foreign made parts from 18% in fiscal 2010 to 25% in fiscal 2013.

Domestic automakers have increased procurement of foreign made parts in the hope the cheaper parts will allow them to protect jobs and technological capabilities at home by keeping domestic car production going.

The effects of moves overseas by domestic automakers have spread to parts makers.

Mr Akihiko Shido VC of Japan Auto Parts Industries Association said that "Not only major parts makers but also midsize and small firms are accelerating their moves overseas."

Toyota EVP Mr Satoshi Ozawa said that he was shocked to learn, in the wake of flood damage in Thailand, that some electronic parts widely used to manufacture cars are not produced in Japan. Mr Ozawa said he was shocked to see that Japan's auto parts industry is rapidly hollowing out.

An official of the Economy, Trade and Industry Ministry said that "If the yen remains at its current high level, the whole of the automobile industry, including parts and materials makers, may relocate overseas, resulting in a 'hollowing out by the roots.'"

An estimate by the ministry shows that if the hollowing out of the automobile industry continues at the current pace, 600,000 jobs, more than 10% of all jobs in the nation, may be lost in the middle of the 2010s and later.

_{(Sourced from: www.steelguru.com)}

Demand for cars helps boost steel industry in US - Dec 27

It is reported that buoyed by rising sales of cars, farm gear and oil drilling equipment, steelmakers are increasing prices and expanding production after setbacks earlier this year when the US recovery stalled and the European debt crisis deepened.

ArcelorMittal, AK Steel Holding Corp, Nucor Corp and Severstal recently have raised prices on benchmark hot and cold rolled steel used by the auto industry. After declining earlier this year, steel prices are up 25% since November 2nd 2011, with, for example, mills charging around USD 750 a tonne for hot rolled steel, from around USD 600, causing upward price pressure on goods from cars to washing machines.

Total shipments by US steel plants were 76.4 million tons in the first 10 months of 2011, up from 69.7 million tons over the same period in 2010.

Gerdau SA will invest USD 67 million to expand production at a plant in Monroe, which makes steel for aerospace and defense industries. Russian steelmaker OAO Severstal last month opened a new part of its plant in Columbus, a USD 550 million project that doubled annual capacity to 3.4 million tonnes.

Mr Lou Schorsch, who oversees ArcelorMittal’s flat carbon operations in North and South America, said that "If you take the European Union out of the equation, things look pretty good."

Mr Andre Gerdau Johannpeter CEO said last week that "Gerdau's Michigan plant expansion came as a result of our confidence in the recovery and growth of the North American market."

Mr Tom Marchak, a vice president for Severstal North America, said that prices previously had declined for 33 weeks and that demand has reached a level to support these increases.

Still, producers remain cautious, noting that the US is still recovering from a recession and gains could stall, if companies and consumers get skittish. Certain markets, including construction, remain weak and their outlook uncertain. Profit margins remain tight, due largely to high raw material and energy costs and some producers are warning that increased imports and higher production could erode prices. Nucor issued a profit warning last week saying increased imports and new domestic supplies were eroding prices and margins.

_{(Sourced from www.steelguru.com)}

Hyundai Motors overseas output to exceed 3 million- Dec 26

It is reported that overseas production of Hyundai Motor Group affiliates Hyundai Motor Co and Kia Motors Corporation is expected to surpass 3 million units for the first this year.

According to the data by the Korea Automobile Manufacturers Association, the two automakers, the flagships of Hyundai Motor Group, built a combined 2.88 million vehicles in their overseas plants in the January to November 2011 period, up by 21.8% YoY.

_{(Sourced from www.steelguru.com)}

Honda will make cars 10% lighter- Dec 26

It is reported that Honda will change the design and manufacturing processes to make their card 10% lighter cars that are lighter are more fuel efficient.

Some of Honda's new manufacturing methods involve welding outer panels to the frame, rather than assembling the ceiling, side and other panels, to reduce the use of bolts and reinforcing materials. Other techniques include combining two steel sheets of different thicknesses into a single sheet and using thinner steel sheets that are heat treated during processing to enhance their strength.

For starters, the automaker has begun using methods that enable it to cut down on materials, parts and processing steps for producing its new mini vehicle, the N Box, reducing the vehicle's weight by 10% and lowering its manufacturing costs.

_{(Sourced from www.steelguru.com)}

Vision Document for renewable power generation in India- Dec 23

Dr Farooq Abdullah, Minister of New and Renewable Energy, Govt. of India, informed the Rajya Sabha that the ministry of new and renewable energy has prepared in February 2011 a Strategic Plan for accelerated development of renewable energy sources for various applications including power generation, covering the period up to 2022.

The Strategic Plan covers grid-interactive power generation from the main renewable energy sources solar, wind, biomass and small hydro power, besides off grid/ decentralised renewable energy applications/ programs such as biogas, remote village electrification, biomass gasifiers, solar photovoltaic/ thermal systems, micro-hydel, waste to energy, etc. It, inter alia, makes an assessment of the existing situation and external factors impacting growth, strengths and weaknesses of the sector and potential strategies to address the same.

The Strategic Plan document has laid down specific goals and targets for the six years period 2011-17 and long-term Aspirational Goals for the ten years period up to 2022 for various renewable energy programmes/ applications including power generation.

With regard to renewable power generation, the document estimates that about 50,000 MW new capacity would be added during the XII and XIII plan periods leading to total renewable power generation capacity of about 73,000 MW by 2022. This capacity will comprise of 20,000 MW from solar power under the National Solar Mission and the remaining 30,000 MW from other renewable energy sources mainly wind, small hydro and biomass power. The contribution of renewable power by 2022 to the then likely total installed capacity and electricity mix has been estimated to be around 18% and 7.3% respectively, which could change depending on actual achievements of conventional power capacity.

Various steps have been taken by the Government to increase power generation through renewable energy sources in the future and the same are continuing. These include the following:

1. Fiscal and financial incentives such as, capital/ interest subsidy/ generation based incentive, accelerated depreciation, nil/ concessional excise and customs duties

2. Generation Based Incentives Scheme introduced for Wind power and Solar Power to attract private investment by Independent Power Producers not availing Accelerated Depreciation benefit.

3. Directives under Electricity Act 2003 to all States for fixing a minimum percentage for purchase of electricity from renewable energy sources

4. Preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year.

5. Jawaharlal Nehru National Solar Mission initiated in January 2010 to enable large scale capital investment in solar energy applications; Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission.

(Sourced from www.steelguru.com)

Amtek Auto scouts for cheap assets in India, Europe- Dec 22

Auto parts maker Amtek Auto Ltd, India's second largest forging maker, is keen to take advantage of the economic slowdown in India and Europe by bidding for cheap assets, Chief Financial Officer Santosh Singhi said.
The Amtek group has cash reserves of close to Rs 1,500 crore, which Singhi said could be used as the basis to acquire forging, machining and casting businesses.
The next six months to one year is the right time to buy assets. We are looking at the domestic market as well as Europe, but valuations are high," Singhi said.

"We think markets will trend downwards in 2012 . We are exploring if there is a right opportunity for cheaper assets," Singhi said.

Analysts expect a new phase of consolidation in Indian auto parts industry after a quiet few years as the economy slows and companies that expanded in the boom time seek to reduce debt.

So far, high expectations of promoters of takeover targets have thwarted many potential deals.

Amtek itself has grown through a string of acquisitions both in India and overseas, mostly between 2004 and 2008.

"At the moment, the overseas deals we are exploring are mostly in Europe," Singhi said.

The company, which has said it plans to boost revenue to about $3 billion by 2015 from $342 million now, remains bullish on the domestic auto market.

Car sales in India have been nearly flat this year after rising 30% in 2010/11 ended March.

"India is still a good market, though Europe is flattish and we are seeing only marginal growth," Singhi said. "In India, growth is still being seen in LCVs (light commercial vehicles) and two-wheelers."

Sales of commercial vehicles, a key indicator of economic activity, rose 35% to 66,264 in November, while motorcycles rose 22.7%.

However, car sales fared much worse rising 7% in November and falling 3.5% from April-November.

Rising finance costs and increasing prices have deterred buyers while a labour unrest at India's top carmaker, Maruti Suzuki, crippled production.

Amtek, which ranks second behind Bharat Forge in production of forgings, is a major supplier to local and global automakers, including Maruti, Tata Motors, Hero Motor Corp, General Motors, Ford and BMW.

At 1:39 pm, shares in Amtek Auto, valued about $415 million, were down 0.05% at Rs 93.85 in a firm Mumbai market.

Japanese steelmakers plan to raise export prices of EGI steel- Dec 21

It’s reported that Japanese steelmakers is going to start the export price negotiation for electrical galvanized (EGI) steel for next February deliveries next week. It’s said that Japanese mills planned to raise the prices by US$30~US$50/ton.

It’s known that China Steel Corp. (CSC) cut the domestic prices of EGI steel by NT$2,000/ton for deliveries in next January and February, causing buyers think the prices would dip further.

However, since Chinese Baosteel hiked its domestic prices of EGI steel by RMB100~RMB200/ton for next January, some customers said the EGI steel market has touched the bottom and would rebound soon.

_{(Sourced from www.steelguru.com)}

South Korean shipbuilding sector headed for restructuring- Dec 20

It is reported that shipbuilding industries which has built up an oversupply thanks to aggressive investment in facilities are bracing for major restructuring in 2012. With the European debt crisis likely to carry on or even worsen next year, some companies are already on the verge of shutdown.

Market analysts said that the shipbuilding sector faces the greatest peril with competition running to extremes after companies mushroomed during the 2007-2008 market boom. Adding to the woes is dried up funding from European financial institutions that do a lot of ship financing.

According to Samsung Securities, China's shipbuilding volume in 2010, which accounts for 38% of the global production, jumped 170% from a year ago. Prices of bulk carriers and tankers, key vessels on Chinese shipyards, have continued to fall.

Mr Um Kyunng ah, an analyst at Shinyoung Securities, said in a report that "There is an undeniable oversupply of ships. Shipbuilding and shipping industries are to undergo major restructuring. The three Asian countries' capacity to build merchant vessels will fall by 40.7% and Korean shipbuilders by 34.4%."

Mr Um said that the struggling shipbuilders will be weeded out within two years if the global recession stretches out, unfolding situations favorable for large companies that are competitive in areas other than shipbuilding.

Several large shipbuilders have turned to offshore plants, but small and medium sized companies don't have the option.

Sungdong Shipbuilding & Marine Engineering, the world's No 8 in terms of order backlog and Korea's largest unlisted shipbuilder, posted losses of KRW 141.3 billion in 2009 and KRW 465.3 billion in 2010.

Mr Kang Sung bu, chief of bond analysis team at Tongyang Securities, said that "The economic slump could lead to a cutback in new orders, cancellation of orders and delays in deliveries. Companies that have already used up their advance payments will find it hard to keep up with their cash flow needs."

_{(Sourced from: www.steelguru.com)}

Mitsubishi Heavy to establish a comprehensive Engineering Headquarters- Dec 19

Effective January 1st 2012, Mitsubishi Heavy Industries Limited will establish a new Engineering Headquarters that will comprehensively handle all company EPC (engineering, procurement and construction) operations by integrating related activities currently being undertaken separately by various business headquarters within the company.

The move has three aims: to further strengthen the company's accumulated EPC technology and know how through integration; to respond swiftly to business opportunities involving large-scale infrastructure projects, which are now increasing in the overseas markets; and to boost profits from EPC operations while also providing support for business expansion of core products. The new business unit is also planned to function as a headquarters overseeing the company's solutions business, including smart community-related matters.

Specifically, the new Engineering Headquarters will integrate the current Sustainability Energy & Environment Strategic Planning Department and EPC related units within the company's Power Systems and Machinery & Steel Infrastructure Systems business headquarters. At present, EPC related activities of the latter two headquarters are handled mainly by the Power Systems Plant Engineering & Construction Department and the Environment & Chemical Plant Division, respectively. Within the new Engineering Headquarters, a department will also be established to handle EPC-related activities for overseas nuclear power plant projects and large-scale infrastructure projects in the Machinery & Steel Infrastructure Systems business.

Mr Takato Nishizawa representative director and EVP will become General Manager of the new organization, which will commence operations with 2,600 staff members.

Until now, MHI has focused primarily on attracting orders for large-scale infrastructure projects in the emerging economies. With the establishment of its new organization integrating earlier EPC units spread across multiple business segments and undertaking EPC and solutions businesses comprehensively, the company now looks to further strengthen and expand related business.

_{(Sourced from: www.steelguru.com)}

TATA Motors Group global sales at 108028 vehicles in November 2011- Dec 16

The TATA Motors Group global wholesales, including Jaguar Land Rover, were 108,028 numbers in November 2011, higher by 35% over November 2010. Cumulative sales for the fiscal are 750,457 higher by 10% compared to the corresponding period in 2010-11.

Global sales of all commercial vehicles TATA, TATA Daewoo and the TATA Hispano Carrocera range were 49,724 numbers in November 2011, a growth of 24%. Cumulative sales for the fiscal are 371,410 numbers a growth of 18%.

Global sales of all passenger vehicles were at 58,304 numbers in November 2011, higher by 47%. Cumulative sales for the fiscal are 379,047 numbers higher by 4%.

Global sales of TATA passenger vehicles and the distribution offtake in India of Fiat cars were at 29,121 nos., for the month, higher by 74% over November 2010. Cumulative sales for the fiscal are at 193,616 numbers lower by 8%.

Global sales of Jaguar Land Rover in November 2011 were at 29,183 vehicles, higher by 27% over November 2010. Jaguar sales for the month were 5,315 numbers, lower by 5%, while Land Rover sales were 23,868 numbers, higher by 38%. Cumulative sales of Jaguar Land Rover for the fiscal are 185,431 numbers, higher by 19%. Cumulative sales of Jaguar are 35,195 numbers, lower by 9%, while cumulative sales of Land Rover are 150,236 numbers, higher by 28%.

_{(Sourced from: www.steelguru.com)}

Hyundai Motor calls for efforts to ride out market woes- Dec 15

Yonhap reported that Hyundai Motor Group called for greater efforts to cope with market uncertainties triggered by the global economic slowdown.

Mr Chung Mong Koo chairman of Hyundai Motor Group told a meeting of the automotive conglomerate's overseas branch presidents that despite gains made in 2011, Hyundai must be on guard against unexpected market developments and complacency.

The meeting was held because of concerns that the ongoing euro zone crisis and sluggish growth forecasts for major emerging economies such as China and India could hurt overseas car sales that account for the bulk of Hyundai's business.

In the first 11 months of 2011, Hyundai Motor Co and Kia Motors Corp, South Korea's two largest carmakers and flagship companies of the conglomerate, sold over 5.98 million vehicles worldwide, with overseas sales accounting for more than 82% of total sales or 4.91 million units.

He said that "Hyundai and Kia have been lauded as having done well so far, but the entire automobile industry could be rocked in the future, and that will impact the group."

The chairman said in light of current economic developments, there is no way to be certain about how the future of the industry will unfold. He added that "There is a need to meet individual demands of each overseas market to win the minds of consumers."

Senior executives also said more must be done to enhance customer service support, improve quality and strengthen overall substance and competitiveness to overcome present and future challenges.

_{(Sourced from www.yonhapnews.co.kr)}

South Korean auto industry growth to dip in 2012- Dec 14

Yonhap reported that the growth of South Korea's automobile production and exports will slow sharply in 2012 from 2011 due to a global economic downturn.

According to the report by the Ministry of Knowledge Economy, the combined output of the country's five automakers, including vehicles produced at overseas plants, is expected to reach 7.61 million units in 2011, growing 10.7% from 6.87 million in 2010.

The ministry, citing a report from the Korea Automobile Manufacturers Association, said that their combined production in 2012, however, is estimated to rise only 5.8% to 8.05 million units. The automakers' total output will surpass the 8 million mark for the first time in 2012.

The ministry said that "The global economy showed brief signs of recovery since the 2008 financial crisis but conditions for 2012 are continuing to worsen due to growing uncertainties stemming from the European crisis and signs of economic downturns in developed markets."

It said the country's total automobile exports will likely grow 3.9% to 3.2 million units in 2012 compared with an estimated 11.1% growth in 2011. Vehicles produced overseas are not counted as exports.

According to the ministry, domestic sales of vehicles produced by South Korean manufacturers will likely grow 1.4% to 1.5 million units in 2012, similar to this year's estimated gain of 1%.

Sales of imported vehicles, on the other hand, are expected to surge 21.7% to a record high of 140,000 units in 2012, gaining further ground from this year's estimated growth of 15.9% to 115,000 units.

Meanwhile, the ministry said the country's automobile production in November 2011 rose by 10.1% to 428,516 vehicles. The monthly gain was led by brisk exports, which jumped 15.5% to 300,105 vehicles. Domestic sales dropped 12.7% to 115,768.

_{(Sourced from www.yonhapnews.co.kr)}

Indonesia coal pricing norm affects Indian power companies- Dec 13

About 14,000 MW of capacity addition in the pipeline, based on Indonesian coal, appears to have hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.

TATA Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech had aggressively bid in the tariff based competitive bidding process for power projects, based on their agreements/ arrangements they had made for fuel stock from Indonesia.

It is learnt that the developers had worked the financials of their projects factoring in the coal price they had entered into in Indonesia for long term supply, which in some cases are about USD 26 to USD 30 a tonne, almost half the benchmark prices.

TATA Power has commissioned the first of its 830 MW unit at Mundra. Reliance Power has slowed down work at its 4,000 MW Krishnapatnam project till a decision is taken as no substantial investments had been made and lenders too were reluctant to release funds citing fuel price cost.

Mr Ashok Khurana director general of Association of Power Producers the apex body of power developers in the country said that “The issue concerns about 20,000 MW of stranded capacity.”

He said that the association is only asking the Government for a forum or mechanism where the voices of the developers would be heard. A decision needs to be taken. It is not only about imported coal even domestic producers are impacted as Coal India is not able to address their requirements.

Mr Khurana said it must be understood that the ultra mega power project format was put up by the Government and assurances were given. It is not the developers' fault. Today bankers and investor were spurning them. Asking developers to speak to procurers is just passing the buck.

A few months back, Mr Alok Kanagat, Chief Executive Officer, Coastal Gujarat Power, wrote to the Power Minister stating that while initial calculations based on the Central Electricity Regulatory Commission norms provided for 14% return on equity would be around INR 600 crore per annum, but with the coal cost increase the impact could be up to INR 1,800 crore and nullify returns. Further, the impact on tariff could be up to INR 1 per unit.

To tide over the crisis, TATA Power has provisioned INR 823 crore for impairment in Coastal Gujarat Power Ltd this quarter. This has been worked out on the projected fuel cost that could impact future cash flows. Further, to address coal price volatility, Tata Power said it would also consider transferring 75% ownership of investments in coal companies to CGPL.

_{(Sourced from: BL)}

TATA Steel introduces Aurora Online for automotive industry- Dec 12

Offering a complete overview of the key characteristics of the automotive materials TATA Steel offers, Aurora Online presents the automotive industry with a valuable tool in the design and manufacture of new vehicles.

The move towards greener, more sustainable vehicles means that car manufacturers now need to be respectful of weight, as well as structural integrity, when designing new models. This requires in depth knowledge of the materials available, and Aurora Online provides an integrated approach to getting the best from today's steels.

Ranging from basic information on the commonly used steel grades through to detailed specifications, the online system gives design and manufacturing teams round the clock access to key data through an easy to use interface. The advanced datasheets provide detailed information on a metal’s formability, weldability and fatigue and crash performance.

This sophisticated database allows TATA Steel's clients to have access to reliable and accurate information. By using representative data sets of a material’s capabilities, rather than the specification limits, the system provides more realistic information into the design and construction process, cutting lead times, improving product quality and reducing costs.

Mr Maurice van Giezen marketing manager at TATA Automotive said that "Today, more than ever, the automotive industry is looking at the robustness of its processes in order to reduce yield losses. Aurora Online enables this through the supply of statistical information on our materials."

Mr Marc Lambriks product market manager EVI at TATA Steel expands on the importance of Aurora Online to a design and manufacturing process. He said that "This powerful yet easy to use system lets companies work hand in hand with TATA Steel, and tap into our expertise in metal technology. As a key supplier to the automotive industry we have the ability to drastically improve and refine the efficiency of a car's construction."

_{(Sourced from www.steelguru.com)}

Volvo agrees to launch JV with Dongfeng Motor- Dec 9

Sources from China said Sweden-based automaker Volvo Car Corp, owned by Zhejiang Geely Holding Group Co, China largest privately owned automaker has agreed to set up a joint venture with Dongfeng Motor Group Co to principally manufacture heavy trucks.

The person added that Dongfeng Motor will hold a 55% stake in the JV that would be launched next year while Volvo Car will have the remaining 45% stake. The new JV is likely to have its headquarters in Shiyan, Hubei Province.

Volvo Car and Dongfeng Motor have yet commented on the news.

The deal would hinge on the third party Japan based Nissan Motor Corp which owns a 50-50 JV with Dongfeng Motor to produce passenger and commercial vehicles including heavy trucks. But Chinese regulators stipulate that foreign companies have no more than a 50% stake in a foreign venture with domestic autocar makers.

Therefore, Nissan Motor would pull investments from the heavy truck business of Dongfeng Motor, which in return would start domestic production and sales plans for Nissan Motor's Infiniti and Renault brands.

_{(Sourced from: www.steelguru.com)}

Cosma buys ThyssenKrupp Automotive Brazilian operation- Dec 8

The Ontario based auto parts giant said that Cosma has closed a deal with ThyssenKrupp Automotive Systems to take over its Brazilian operations, four plants and about 770 employees.

Magna didn't disclose a price paid but said the ThyssenKrupp operation had sales of about USD 250 million in its fiscal year ended September 30th 2011.

ThyssenKrupp Automotive Systems Industrial do Brasil Ltda produces and assembles chassis (internal framework) components and modules for several Brazilian automotive customers. Current production customers include Ford, Fiat, Renault Nissan and Honda.

Cosma said that the acquisition expands its global footprint and positions it to become a leading metal-forming and chassis supplier in South America.

Mr Horst Prelog president of Cosma International said that "The acquisition represents a significant commitment to the South American automotive market and our global OEM customers."

Magna already has nine manufacturing plants and two research and development spaces in South America, with about 3,650 employees.

Cosma International manufactures metal body systems, components, assemblies and modules including complete vehicle frames and chassis systems. It has 47 manufacturing facilities and 25 product development and engineering centers worldwide.

In November 2011, Cosma said it would acquire BDW technologies group and its four European facilities that supply several auto makers, including Volkswagen.

Magna is seeing its business rebound after a slump during and after the recession, as demand for vehicles picks up. In its most recent quarter vehicle assembly sales increased 28% and volumes were up 55% from 2010.

However, its Cosma division is also under fire from the US Justice Department on an antitrust matter in the auto tooling industry. It is being investigated as part of a broader crackdown into anti-competitive activities in the auto parts industry.

Magna is Canada's largest auto parts manufacturer and one of the largest in the world. It primarily supplies auto makers in North America and Europe.


_{(Sourced from: www.steelguru.com)}

Nissan Motor eyes making newly developed cars at overseas plants- Dec 7

Dow Jones reported that Nissan Motor Co will in principle produce newly developed cars at its overseas plants in future, as the yen's surge is eroding the profitability of its exports.

Mr Toshiyuki Shiga CFO of Nissan said that "Under current foreign exchange rates, there can be no shipments from Japan of totally new projects," was quoted as saying in the interview."

Mr Shiga's comments suggest that there are few benefits to producing entirely new models for export in Japan because of the yen's surge, but new models that use the chassis of existing vehicles can be exported as they are relatively less expensive to produce.

Mr Shiga said that the company will maintain its domestic production capacity of 1 million vehicles per year, even assuming that exports fall to 400,000 vehicles.

In the fiscal year that ended in March 2011 Nissan's domestic production totaled 1.07 million vehicles, with 610,000 for export and 460,000 for sale in Japan .

_{(Sourced from: Dow Jones)}

Toyota and Honda to tap alternative market- Dec 5

Japanese car majors Toyota Kirloskar and Honda Siel are looking for alternative component sources as a flood crisis in Thailand , a key component supplier in Asia, has hit supplies and disrupted production at their facilities in India .

Toyota , which is estimated to incur a production loss of 800-1,000 vehicles or 8 to 10% of total output due to the supply disruption, is diverting spare parts meant for plants in Indonesia and the Philippines to keep up production for the waiting Innova and Fortuner customers in India .

Honda Siel, which has suffered an output loss of more than 60 to 70%, is in negotiation with alternative sources from China and Japan to bring back normalcy in production.

Mr Sandeep Singh deputy managing director marketing at Toyota Kirloskar said that "Toyota Motor Asia Pacific has given India the top-most priority. It is helping us by sourcing and diverting components, meant for Indonesia and Japan , here to sustain our good growth. Through this arrangement we will have spare parts supply till the end of the month.”

A three-month long crisis triggered by unusually heavy monsoon rains has left several hundreds people dead in Bangkok and disrupted industrial hubs mostly in northern and central Thailand, which will take at least a few months for them to resurrect.

Toyota imports some of the key engine components for Fortuner and Innova from Thailand , while Honda Siel imports under-body parts and electronic parts.

_{(Sourced from: ET)}

Automakers work to make steel stronger and vehicles lighter- Dec 1

It is reported that as automakers work to meet corporate average fuel economy standards by making lighter vehicles, the US steel business has the chance to foil those who consider it the enemy of environmentalists.

According to American Iron and Steel Institute, approximately 63% of the average vehicle is steel, so now that industry is a knight in shining armor. It's working on super strong materials so car manufacturers can use less steel per vehicle. The tarnished becomes the burnished.

Mr Ronald Krupitzer VP of automotive market at AISI said that "People think of steel of vehicles as the steel of your father's Oldsmobile. With standards being so aggressively increased in terms of safety and fuel economy requirements, what we're seeing is car companies are looking to redesign their vehicles to be more efficient, which means take the weight out and still be safe, fuel efficient vehicles. The old vehicles would be too heavy."

Mr Jim Earl manager of environmental engineering for steelmaker Severstal, which has a mill in Dearborn, said that to make steel stronger without adding heft, the industry has relied on two methods over the last 40 years.

First came grain size refinement where, imagine a pile of soap bubbles is a bunch of molecules, scientists and engineers figured out how to go into each bubble and make it smaller. More recently, though, they've reduced steel's cooling time; dropping from 800 plus degrees Celsius to room temperature used to take a day, but now can be done in minutes or seconds.

Mr Earl said that "You're not making the steel lighter, you're using less of it. Steel is an amazing thing. There's an incredible range of yield strength."

Steel strength is measured in mega pascals or MPa. Mr Earl said a car in the 1950s would've been 240 MPa, while today, it's 1,500, with steelmakers being asked to get it to 2,000 MPa.

Mr Jay Baron, president, chairman and CEO of the Center for Automotive Research in Ann Arbor, called steelmakers a major player in the effort to make vehicles lighter, adding that they're never done. It's a moving target.

He said that "It's too bad they have to have a campaign to resurrect their image, much like the auto industry itself. The innovation and technology that has been developed by the automotive industry and the steel industry is significantly unappreciated and unknown to those outside the industry. Whenever you think of steel, you think of Pittsburgh with smokestacks. The industry, in general, isn't glamorous."

AISI said that half the types of steels carmakers use now were created in the last decade.

_{(Sourced from: www.steelguru.com)}

Indian consortium bags 3 Hajigak iron ore blocks in Afghanistan- Nov 29

It is reported that Afghanistan government has offered India a new strategic role in Afghanistan by awarding mining rights for the country’s biggest iron deposit to a group of Indian state run and private companies.

Mr Karzai president of Afghanistan and his cabinet awarded three of four blocks at the Hajigak ore deposit to seven companies that bid with support from Indian Government and offered the final block to Canada’s Kilo Goldmines Ltd

The Afghan Ministry of Mines announced “The Afghan Iron and Steel Consortium (AFISCO) which comprises SAIL, NMDC, Monnet Ispat & Energy, RINL, JSW Steel, Jindal Steel & Power, JSW Ispat has been awarded three blocks.”

India’s Government backed the group, led by state owned Steel Authority of India Ltd Limited and NMDC Ltd, to widen the country’s strategic presence in Afghanistan, which Prime Minister Manmohan Singh has said is essential for Indian security.

Hajigak, a series of rugged mountain ridges 100 kilometers west of Kabul, holds an estimated 1.8 billion tonnes of ore and is the biggest mining project on offer in a country that the US government estimated last year holds USD 1 trillion in untapped minerals.

The Afghan government had invited bids to award development rights for four mines in Hajigak earlier this year and the last date for submission of bids was September 4.

_{(Sourced from: www.steelguru.com)}

Hyundai Motor Group breaks ground for third engine factory in China- Nov 28

It is reported that South Korea's Hyundai Motor Group has broken ground in China for a new factory to produce engines as the automobile giant seeks to expand into the world's largest market.

Hyundai Wia Corporation, a member of the automotive group and the second biggest automotive parts manufacturer in South Korea, said it started work on the USD 270 million engine factory this month on the eastern coast of China.

_{(Sourced from: www.steelguru.com)}

Automakers turn to Simulation-Driven Design to meet efficiency rules- Nov 25

Intelligent simulation is a key technology in weight-management strategies for OEMs, and simulation-driven design is establishing processes that can help rapidly accelerate the industry toward the fuel economy and emissions goals down the road.

Manufacturers are recognizing that new rules relating to the ways automotive technology impacts our lives require new technologies to change the way we build vehicles.

In the United States , new and existing regulations requiring dramatic improvements in mileage for both cars and trucks already are creating another revolution in vehicle design, as OEMs attempt to make their products lighter, more fuel-efficient and less polluting. In Europe , legislation mandating reduced CO2 emissions by as much as 30% over the next few years is leading to similar design reconsiderations.

Designers are employing several strategies to attain new levels of light-weighting, which will translate into better mileage and lower levels of emissions.

One technique has been the introduction of multiple types of materials to substitute for conventional steel. Using a combination of metal alloys and lighter substances -- like aluminum and composites -- designers are making vehicle weight a primary factor in their work.

Traditionally, the industry has sought to balance cost and performance, with weight as an outcome of performance. Now, however, weight is being controlled and proactively engineered, elevated to equal status with cost and performance in balancing design considerations.

For example, engineers fabricating the BMW M3 bumper beam -- ordinarily a metallic structure -- have substituted steel for a glass-fiber-filled polymer and are achieving a 40% weight reduction. The Audi A8 spare-tire wheel well uses a similar material to achieve a 30% weight saving.

In addition, many designers are focusing on developing lighter body-in-white structures, because they estimate that shaving 1 kilogram of weight from this primary structure allows them to save an additional 1 kilogram in secondary mass on other components that can be built of more lightweight materials.

Even more significant for light-weighting, however, may be vehicles like the BMW i3, which not only employs an electric powertrain but also is constructed primarily from composites. It is planned as the first high-volume composite vehicle and is the type of technology envisioned and required by the future rules of the road.

Intelligent Simulation is a Key Technology

Whatever the strategy, designers and engineers will need to rely on sophisticated, intelligent technology to optimize the designs of the components, systems and vehicles they produce, ensuring they are designed with the least amount of material that enables maximum performance.

Without simulation tools, such optimization can be difficult. Composites, for example, add great flexibility to vehicle design, but this flexibility is accompanied by increased complexity.
To guide their efforts, designers are turning to intelligent software tools, such as OptiStruct, that can automatically recommend the most optimal design configuration.

Whereas computer simulation has long been used to validate designs at the end of the development process, designers and engineers increasingly are recognizing the value of introducing simulation to their processes at the very earliest ideation stage and then incorporating simulation in each of the succeeding stages. The auto industry is adopting this simulation-driven design process as a methodology for meeting the light-weighting requirements that confront their planning.

For example, using OptiStruct as part of a simulation-driven design process, a team at Altair ProductDesign developed the body-in-white for the SAIC Roewe 550. They screened every component of the vehicle for its optimization potential, and OptiStruct was applied to all those that could be effectively optimized.

Altair ProductDesign applied a variety of optimization methods -- including free-form optimization -- in which the designer indicates the forces on and space restraints for the product, and the software creates the optimal material layout for that space. In the earliest stages, concept optimization allows designers to look at global performance characteristics.
As the program progresses, the focus shifts to local performance and continuing to go after more mass reduction. Design of the Roewe 550 involved a massive deployment of optimization technology for all attributes, including crashworthiness, noise-vibration-harshness and durability.

The role of optimization tools will expand further as the auto industry evolves. With the smaller electric powertrains, for instance, designers gain more creative freedom to use free-form optimization to design new vehicle architectures. Optimization tools can provide invaluable guidance in developing these designs.

The adoption of simulation-driven design is rolling throughout the auto industry, as the design process is impacted by increased computing power, more software integration, and the predictability and intelligence that today's computer-aided engineering tools can offer.
Intelligent simulation is a key technology in weight-management strategies for OEMs, and simulation-driven design is establishing processes that can help rapidly accelerate the industry toward the fuel economy and emissions goals down the road.

Russian Govt. to assume part of burden to comply with WTO auto assembly principles- Nov 24

Russian Prime Minister, Mr Vladimir Putin has said that the Government will assume part of the burden of compliance with the World Trade Organization (WTO) principles regarding auto assembly.

He said that "During the process of Russia's accession to the WTO, we held long discussions on how we can build this work auto assembly in the future, so as to not let down our investors and to live up to our promises to them, and at the same time meet the WTO standards and principles on auto assembly."

Mr Vladimir said "We have reached acceptable compromises. Part of the burden of meeting all our obligations to investors will be assumed by the Russian state."

He said that the government is doing this deliberately so as to increase the technological level of the auto industry and to provide our market with a modern competitive product. He added that the decision to provide benefits to investors in the auto industry has fully justified itself.

Mr Putin said in 2011, Russia has become Europe's fastest growing auto market by sales. He said "The prospects are probably the same. The market capacity is fairly large. Last year more cars were sold on the Russian market than in India. The Russian market capacity is far from being exhausted."


(Sourced from: www.steelguru.com)

Tin exports from Indonesia may drop in November on trade ban- Nov 23

Tin shipments from Indonesia , the world’s largest exporter may slump 26% this month to the lowest level in almost 3 years after producers agreed to ban spot market sales to try to reverse a decline in prices.

According to the median estimate in a Bloomberg News survey of eight traders, exports may drop to 4,000 tonnes. That compares with 5,442 tonnes in October and an average of 8,136 tonnes in the first 9 months, before the ban took effect. The trade ministry may issue the data for November in the second week of December.

Falling supplies from the country which accounts for about 40% of global exports may help to support prices that fell 22% in the Q3 on concern that Europe ’s sovereign debt crisis may hurt the global economy. Indonesian producers halted exports from October 1st 2011 seeking USD 25,000 per tonne.

Mr Andrian Tanuwijaya Jakarta based analyst at PT Trimegah Securities said that Exports may only come from PT Timah as they’re still allowed to meet their term contracts referring to the nation’s largest exporter. The smaller producers mostly trade in the spot market which is banned.

Tin for 3 month delivery settled at USD 21,275 per tonne on the London Metal Exchange on November 18th 2011. Inventories monitored by the LME plunged 23% in October, the biggest monthly decline since October 2008 when they lost 36%.

According to data from the trade ministry tracked by Bloomberg, shipments of 4,000 tonnes this month would be the smallest quantity since exports of 3,805.5 tonnes in December 2008. In November last year, exports were 8,986 tonnes. The Bloomberg survey also forecast shipments of 4,000 tonnes for next month.

Mr Johan Murod general secretary of the Indonesia Tin Association said that 28 companies agreed earlier this month to extend the halt until the year end. Timah, the world’s biggest tin exporting company, may meet contractual orders while halting spot sales, Mr Eko Mulana Ali provincial governor of Bangka Belitung the main producing region.

Mr Peter Kettle research manager at St Albans , England based ITRI Limited said that the halt will certainly help support prices, but I don’t see a lot of upside potential in the next couple of months. Tin may trade between USD 21,000 per tonne and USD 24,000 per tonne influenced by news from Europe .

The trade ministry said that Indonesia shipped 78,715 tonnes of tin in the first 10 months of the year 3.9% more than the 75,778 tonnes a year earlier.

_{(Sourced from www.steelguru.com)}

Turkish auto industry to see healthy improvement in 2012- Nov 22

Professor Ercan Tezer general secretary of the Turkish Automotive Manufacturers' Association said that the Turkish automotive industry managed to overcome the effects of the 2008 world economic crisis in only one year, thanks to lively commercial vehicle sales indicating Turkish investors' confidence in the future. Accordingly in 2011 Turkey's automotive production exceeded pre crisis levels.

Mr Tezer remarked that Turkey's automotive exports are still lower than in the pre crisis period due to the significant contraction in Europe's auto demand. Nevertheless Turkish automakers are now heading to new export markets including North America.

Expecting a moderate improvement in auto demand in 2012, Mr Tezer explained that rapid rises in demand often result from the drawing forth of an existing demand potential, rather than the creation of new demand. Accordingly, slight upticks in demand may be actually healthier than rapid improvements in demand.

He criticized the current tax regime in the Turkish automotive industry and reiterated the importance of a reform in the current tax regime to a more transparent, widely conventional and fair structure.

_{(Sourced from www.steelguru.com)}

UAE power production tops 10000 MW- Nov 21

Reuters reported that Abu Dhabi's peak power production will exceed 10,000 MW for the first time next year buoyed by its ambitious energy projects and exports to the northern emirates.

Mr Keith Miller director of planning and studies at Abu Dhabi Water & Electricity Company said that "Abu Dhabi electricity demand growth is amongst the fastest growing in the world today, even faster than China in percentage terms."

He said that the emirate's peak demand in 2011 was around 9,800 MW up 14% over last year. The production is coming from its 8 independent water and power projects and is mostly consumed by its own robust residential and industrial demand.

Power demand in the Middle East has been rising with population growth and strong economic activity fuelled by booming petrodollar spending. Demand usually peaks in summer, when temperatures soar.

Abu Dhabi's industry this year received more than 600 MW of which 500 MW went to Abu Dhabi National Oil Company which produces the bulk of oil in the UAE, one of the top 5 crude exporters in the world.

Mr Miller said that in 2015 electricity supply to ADNOC will rise to 2,000 MW due to new projects Shah Gas Takreer and others referring to Abu Dhabi's giant Shah sour gas project and refiner Takreer's plans to double capacity by the end of 2013.

Residential and service sectors in Abu Dhabi received 6,140 MW in 2011 while some 2,100 MW of power was exported to the relatively poorer northern members of the UAE another factor driving Abu Dhabi's power generation higher.

He said that "Electricity production is linked not just to Abu Dhabi but also to the northern emirates' economic activity. Abu Dhabi began exporting power to Bahrain in 2011. Adwec's exports to Bahrain were 50 MW in August and 100 MW in September accounting for 2% of total exports.

_{(Sourced from: www.steelguru.com)}

Russia launches first AD probe into auto imports- Nov 18

It is reported that Russia Industry and Trade Ministry has launched the country first anti-dumping probe into truck imports from a number of European countries and Turkey.

The probe was launched at the request of auto maker Sollers, Russia second largest producer of light commercial vehicles with a weight of 2.8 tons to 3.5 tonnes and diesel engines with a capacity of up to 3 litres which claimed that trucks were imported from Italy, Germany, Poland and Turkey at prices considerably below rates on the domestic market.

The auto maker claimed that the imports of trucks at dumping prices have inflicted considerable financial damage on Sollers as its inventories have grown while its rate of return and market share have decreased, even though its trucks are similar to imported vehicles by technical characteristics.

Kommersant business daily reported referring to sources that the probe is the first anti-dumping investigation on the Russian auto market because previously the Russian government resorted to the practice of raising import duties to protect domestic auto producers.

Now that Russia is expected to join the World Trade Organization soon, Sollers is choosing market protection procedures which do not contradict the rules of the global trade club. The segment of light commercial vehicles is to suffer the most from Russia accession to the WTO as import duties will fall from the current 25% to 15% and decline to 10% during three years.

_{(Sourced from: www.steelguru.com)}

Chinese aluminum imports poised to soar- Nov 17

According to new forecasts from CRU, a leading commodities consultancy, China will import more than 1m tonnes of aluminum a year by the end of the decade.

The consultancy predicted that the appreciation of the renminbi, combined with higher prices for energy, labor and raw materials would make China’s vast aluminum industry less competitive.

The future role of China in the aluminum market is a subject of heated debate among analysts, traders and producers. The country is the world’s largest producer and consumer of aluminum accounting for roughly 40% of the global market of 40m tonnes a year. Until 2007, it was a large net exporter of the metal.

However, since then its aluminum trade has been largely balanced, apart from an opportunistic wave of imports in 2009 with Chinese smelters selling to the domestic manufacturing industry which is in turn a large exporter of semi finished aluminum products.

Aluminum is the most widely used metal after steel with a variety of applications from construction to consumer and industrial products such as cars, aircraft and drinks cans.

CRU predicted that net Chinese imports of aluminum would rise to 1.4 million tonnes in 2020 compared to just 70,000 tonnes last year. In the next decade we predict China will not be able to keep pace with its demand growth. The task will then fall to producers in the world ex China to meet the supply shortfall.”

The prediction, while bullish for non Chinese aluminum producers such as Rusal, Alcoa and Rio Tinto, is more conservative than some other forecasters. CRU predicts that net imports will remain small below 200,000 tonnes until 2015.

Some analysts and producers believe large Chinese imports could come much sooner as the country’s aluminum smelters, some of which count as the highest cost producers in the industry are forced out of business by rising power prices. Inventories of the metal at Shanghai Futures Exchange warehouses have fallen sharply to their lowest since February 2008.


_{(Sourced from: www.steelguru.com)}

World Auto Steel FSV program reduces emissions as well as mass- Nov 16

Future Steel Vehicle, a program of World Auto Steel, the automotive group of the World Steel Association, attends or is represented at just about every major automotive engineering show and conference for a reason. When the total vehicle's life cycle is taken into account in lieu of just tailpipe emissions, steel is the most environmentally and cost effective choice for auto makers.

This should be good news for stock investors in steel companies. Yes, steel is not going away no matter how many electric vehicles are planned; and reducing mass and emission are possible even with steel. No matter which conference this reporter attends, from the SAE World Congress in Detroit to the Business of Plugging In (CAR) in Dearborn and, most recently, Engine Expo and The Battery Show in Novi, Michigan, materials like steel always comes up in presentation with regard to safety and energy for automobiles. The general thinking is that lightweight for vehicles demands aluminum, and plenty of it, which explains why many EVs cost so much; aside from lithium-ion batteries, of course.

When you think of safety, though, you might think of high strength steel (HSS) and advanced high strength steel (AHSS). However, how many people really associate steel with energy savings? Not many; and that’s why the Future Steel Vehicle (FSV) program is so important to the industry in light of its drive toward vehicles with lower mass.

Autosteel.org is also quick to point out that alternative materials, such as aluminum, magnesium and carbon fiber produce emissions during their manufacture that are five to 20 times greater than steel. That is why the organization says government and the auto industry needs to shift the basis of vehicle emissions regulations from tailpipe emissions to a total life cycle assessment.

Objectives

In the quest for more environmentally friendly vehicles, the FSV Program believes it is necessary to rethink the design of the car to host fundamentally different power trains such as hybrid, electric and fuel cell systems, and to ensure that the structure is as environmentally efficient as its power train. By the way, every study like this carries the same theme: think outside the old box, so to speak.

The Future Steel Vehicle program is a multi million dollar, three year program that delivers safe, lightweight AHSS body structures that address radically different requirements for advanced power trains and reduce greenhouse gas emissions over the vehicle's entire life cycle. FSV addresses the increased value of mass reduction with solutions that demonstrate steel as the material of choice for future vehicle structures.

The target for this research is the 2015-2025 timeframe, whereby the government has mandated new fuel economy targets, such as 54.5 MPG by 2025.

The Latest FSV Program

The FSV program is the most recent addition to the global steel industry’s series of lightweight initiatives offering steel solutions to automakers around the world. FSV follows the 1998 UltraLight Steel Auto Body, 2000 Ultra Light Steel Auto Closures, 2000 Ultra Light Steel Auto Suspension, and 2001 ULSAB Advanced Vehicle Concepts programs.

In total, this body of research represents a USD 80 million investment by the global steel industry, comprised of comprised of seventeen major global steel producers from around the world:

Anshan Iron & Steel Group Corporation
ArcelorMittal
Baoshan Iron & Steel Co Ltd
China Steel Corporation
Hyundai Steel Company
JFE Steel Corporation
Kobe Steel Ltd
Nippon Steel Corporation
Nucor Corporation
POSCO
Severstal
Sumitomo Metal Industries Ltd
TATA Steel (TATLY)
ThyssenKrupp Steel Europe AG
United States Steel Corporation
Usinas Siderurgicas de Minas Gerais SA
voestalpine Stahl GmbH

Designing within the FSV Program

WorldAutoSteel commissioned EDAG Inc to conduct an advanced power train technology assessment, and to provide vehicle design and program engineering management for the FSV program.

EDAG was not alone, though, as its engineering partners Engineering Technologies Associates Inc. and LMS Engineering Services applied a holistic approach to vehicle layout design. Together they used advanced future power trains and created a new vehicle architecture that offers mass efficient, steel intensive solutions.

For the record, the future advanced power trains that have major influence on vehicle layout and body structure architecture include, battery electric vehicles (BEV), plug In hybrid electric vehicle (PHEV) and fuel cell electric vehicle (FCEV).

It is interesting that nowhere in the study does anyone consider the latest gains in IC engine technology, like Ford’s downsizing using EcoBoost or the upcoming potential of the split cycle engines of Scuderi Engine and Tour Engine.

Regardless of the propulsion system, though, the innovations of future automotive design still need to exploit steel’s versatility and strength. For example, it is steel’s design flexibility that makes it the best to attain award-winning, state-of-the-future design optimization process that develops non-intuitive solutions for structural performance.

According to the program’s information via autosteel.org, the resulting optimized shapes and component configurations often mimic Mother Nature’s own design efficiency, whereby structure and strength is placed exactly where it is needed for the intended function.

The FSV material portfolio includes dual phase (DP), TRIP, TWIP, complex phase, and hot formed steels, which reach into Giga Pascal strength levels and are the newest in steel technology offered by the global industry. These steels answer the call of automakers for stronger, yet formable steels needed for lighter structures that meet increasing crash requirements and are evidence of steel’s continual reinvention of itself to meet automotive design challenges.

FSV's steel portfolio is utilized with the aid of full vehicle analysis to determine material grade and thickness optimization. Consequently, FSV vehicles are deemed very efficient and very light weight as well. More specifically, there is a 35% reduction in weight as compared to today’s body structures.

Furthermore, there is no degradation or compromise on safety and performance. For example, the FSV program brings yet more advanced steel and steel technologies to its portfolio. Consequently this enlarges the tool sets of automotive engineers around the world, including more than 20 new AHSS grades, representing materials expected to be commercially available in the 2015 to 2020 technology horizon.

Three key bottom line items

Enables 5 Star Safety Ratings: Included as an integral part of the design optimization process are crash analyses according to a set of stringent analyses that encompass the most severe global requirements. FSV meets or exceeds the structural requirements for each of these analyses, and thereby enables the achievement of five-star safety ratings in final production vehicles.

Reduces Total Lifetime Emissions By Nearly 70%: This is the surprise that most do not realize. The data shows that, using the US energy grid and the previously noted production vehicle comparison, AHSS combined with an electrified power train reduces total life cycle emissions by 56%. In regions where energy grid sources are more efficient, such as Europe, this grows to nearly 70% reduction in total life cycle emissions.

Reduces Mass And Emissions At No Cost Penalty: Dramatic mass reduction is achieved at no cost penalty over current steel body structures. According to the report, the FSV BEV can be manufactured and assembled for an estimated cost of USD 1,115.

_{(Sourced from: www.steelguru.com)}

Toyota Motor to restart production in Thailand- Nov 15

Toyota Motor Corporation said that it will restart production in Thailand on November 21st 2011.

The Japanese automaker, which has had its global operations disrupted by the flooding that has devastated the nation, said in a statement that it is starting to get a firm grasp of the situation and would like to restart production as soon as possible.

Mr Akio Toyoda president of Toyota Motor said that "Toyota is not considering shrinking its operations here. If anything, we would expand."

Toyota Motor said that it was forced to suspend its earnings forecast for the full year, citing volatility in currency markets and uncertainty on resumption of normal production due to the flooding in Thailand.

_{(Sourced from: www.steelguru.com)}

Honda Motor to release over 10 new models in South Korea- Nov 14

Yonhap reported that Japan's No. 2 carmaker Honda Motor Co plans to launch more than 10 new models in the growing South Korean market.

Mr Takanobu Ito global CEO of Honda said that South Korea has become an important market for the Japanese carmaker and said all available resources will be used to boost competitiveness here.

_{(Sourced from: www.steelguru.com)}

POSCO begins work on plant for wider magnesium sheet- Nov 11

POSCO, Korea's leading steelmaker has began to build a plant in the country that produces magnesium sheets to be used for production of automotives. The plant in the southern city of Suncheon, 415 kilometers south of Seoul will be built by August 2012 with an annual capacity of 10,000 tonnes of magnesium sheets.

POSCO said that commercial production at the plant may start in 2013 as the world's third largest steelmaker and the Research Institute of Industrial Science and Technology in Pohang are engaged in development of casting technology for wider magnesium sheets.

POSCO already has a plant in the country that produces 3,000 tonnes of 600 millimeter wide magnesium sheets annually. Currently, magnesium sheets are used mainly in manufacturing various hard cases for mobile devices such as mobile phones and laptop computers. But POSCO wants to produce wider magnesium sheets up to 2,000 millimeters for use in automotives.

Magnesium sheets have a consistent durability and flexibility and are 25% and 70% lighter than steel and aluminum, respectively. Magnesium is better than plastic for recycling and electromagnetic wave isolation.

_{(Sourced from: www.steelguru.com)}

Volkswagen considers resuming Audi assembly in Russia- Nov 9

It is reported that Volkswagen which now builds Volkswagens and Skodas in Russia may next year decide to resume making Audis in the country.

Ms Yelena Smirnova Audi chief for Russia said "Strategically, we plan to assemble Audi automobiles on Russian territory. A decision could be made during 2012. She did not say what models might be built or where, but said various options are under consideration.”

Ms Smirnova said Audi is sticking with its forecast for Russian auto sales growth this year of 25,000 vehicles versus 18,500 the year before. Russia automobile market could grow to 2.4 million this year.

She said Russian sales could reach 30,000 to 40,000 automobiles depending on economic conditions.

The company intends to start shipping updated A3, A4, A5 and Q5 models in 2012.

The company chain of dealerships will increase by ten from 47 with the opening of salons in such cities as Moscow, Arkhangelsk, Petrozavodsk and Izhevsk.

_{(Sourced from: www.steelguru.com)}

Hyundai Motor looks to forge special alloys to slash car weight- Nov 8

Financial Times reported that Mr Henry Ford's epiphany came as he sifted through the wreckage of a French sports car at a Florida race track. He extracted a mangled strip of light metal he did not recognize, but instantly knew he needed: Vanadium alloy.

At that moment, Mr Ford determined he had to build his own steelworks to produce tailor made, lightweight metal for his revolutionary Model T, which entered production in 1908.

In house steel mills are not a standard feature of the modern auto industry, but one big auto maker is breaking the mould with its own blast furnaces, South Korea's fast growing Hyundai Motor Group.

The family run group comprises units Hyundai Motor, Kia Motors and Hyundai Steel. Mr Chung Mong koo, the group's chairman, holds a 13% stake in Hyundai Steel and Kia holds 21%.

The conglomerate's motive for boosting steel production for Hyundai and Kia, which combined are the world’s fifth largest maker of cars by sales, is the same as Mr Ford's was a century ago, as it looks to forge special alloys to slash the weight of its cars.

The goal is to reduce weight by 10% by 2015 and in so doing, make its vehicles more fuel efficient and more attractive to buyers fretting about high fuel prices. Hyundai believes it will also gain a speed advantage in manufacturing by tailoring specialist steels for its own designs, breaking its dependence on traditional suppliers such as Japan’s Nippon Steel and South Korea's POSCO.

Mr Cho Won suk SVP at Hyundai Steel told the Financial Times that "Every major automobile manufacturer wants to have steel making in house, but the investment is just too huge. Nobody else out there can decide to invest that amount, but Hyundai made the decision to enhance quality."

Hyundai Steel has invested USD 8 billion over the past five years in three blast furnaces at Dangjin, each with a capacity of about 4 million tonnes per year. Two have come online since 2010. About a quarter of this 8 million tonnes is earmarked for Hyundai Kia, meaning Hyundai Steel supplies 30% of the auto makers' needs. It wants to raise that to 45% by 2013, when the third furnace comes online.

The steel maker is now eyeing a move into the ranks of the world's top 10 producers by tonnage, targeting output of 24 million tonnes by 2013, up from last year's 20 million and just 4.8 million in 1998.

Mr Cho said that the furnaces give Hyundai greater flexibility and speed to forge its own advanced high density steel for specific designs. Giving the YF Sonata sedan as an example, he said Hyundai Motor plans to improve fuel efficiency by making half the parts from the lighter, specialized steel by 2015, more than double the current 20%.

Despite the benefits to Hyundai and Kia from the steel production push, however, the move poses challenges for the Hyundai Motor Group.

Analysts expect Hyundai Steel's net profit to sag in the near future as global market turmoil undermines the South Korean won, iron ore prices remain high and prices for construction steel fall. These concerns have pushed Hyundai Steel’s share price down 40% since April 2011.

Some stakeholders grumble that the Hyundai companies' risk is being distracted by the group's investments in steel and the construction business. They argue Hyundai Motor Group should focus more on cars because a steel mill is also exposed to the battered shipbuilding and construction sectors. Fears that Hyundai Motor was bulking up excessively in a sector far from its core were kindled by the group's USD 4.7 billion purchase earlier this year of Hyundai Engineering and Construction.

Mr Kim said that "It is positive that Hyundai Steel has stable customers in Hyundai and Kia. The whole group can expand fast thanks to the steelmaking unit, but it could also have had more room for investment in auto manufacturing if it had not moved into steel making."

_{(Sourced from: www.ft.com)}

Kia Motors to build new China plant and models- Nov 4

Reuters quoted South Korea Kia Motors said that its Chinese joint venture plans to build its third vehicle manufacturing facility in China by 2014 producing cars targeted at the world's top auto market.

Kia said in a statement that the new facility with an annual capacity of 300,000 vehicles will bring Kia total capacity in China to 730,000 vehicles and is aimed at meeting dramatically increasing local demand and maintaining positive sales momentum in the Chinese market.

Kia an affiliate of Hyundai Motors makes cars in China in a tie up with Dongfeng Motor Group Co Ltd and Jiangsu Yueda Investment Co Ltd. Kia and Hyundai have been among the best performing foreign brands in China in recent years posting record-high monthly sales in September on strong demand for Hyundai new Sonata sedan and Kia new K2 subcompact.

Hyundai-Kia expects to reach sales of around 1.15 million vehicles in China this year placing it third in the market behind Volkswagen and General Motors.

Kia said the plant would produce strategic models developed especially for the Chinese market.

Hyundai Motor also plans to start production at its third China plant next year bringing its total annual capacity to 1 million units.

_{(Sourced from: Reuters)}

Global steel prices declined in October- Nov 3

UK based MEPS said that in the US, flat products transaction prices fell in October despite the fact that the domestic mills had proposed further rises for the fourth quarter, on top of those noted last month. Delivery lead times are relatively short. Producers do not have full order books and have had to offer discounts to try to stimulate demand. Distributors report that their business is just about satisfactory but likely to slow as the year end approaches. Consequently, they are cautious regarding their forward purchasing levels.

Several Canadian mills are currently operating below capacity. Customers were reluctant to agree the price hikes announced last month to recover more costly raw material inputs. The increases were not fully implemented, leaving October 2011 transaction figures lower than in September. Further downward pressure is developing because buyers expect special year end deals, as was the case in 2010. This could prove difficult for the steelmakers with their current cost structures. However, now that domestic prices are cheaper, overseas material looks less attractive and so import activity has reduced.

West European buyers are reluctant to place orders on the mills as concern over the current financial crisis is undermining business confidence. Because demand is so mediocre, the output cuts that the producers have implemented so far have not had any positive effect on basis values. However, more production curbs are planned by several steelmakers.

There are worries about Chinese demand. Inflationary pressure has prompted the government to force the banks to cut back on the supply of credit, slowing the growth of steel consumption as manufacturing output is weakening. The upward market price trend has reversed. Despite this, Baosteel has elected to keep most of its official ex works figures for November bookings of flat products unchanged, in the hope that this will boost confidence. In contrast, two other large mills, Wugang and Anshan , have announced decreases. Order intake from overseas clients is predicted to decline for the remainder of 2011.

After softening steadily for most of this year, Japanese steel export volumes dropped sharply in September. Weak demand and growing capacity in the Asian region are to blame. However, imports are on the rise due to the strong yen. Quayside inventories of imported flat products, as at the end of September, failed to reduce from the high levels of August and there are fears that they could climb even higher. Although Tokyo Steel lifted its October domestic list prices to reflect higher scrap costs, it has recently reversed the hike for November shipments.

The South Korean manufacturing sector remains depressed. However, domestic forecasts predict a small increase in steel demand in 2012, with special emphasis on overseas markets. Meanwhile, inventory adjustment is slow. Stocks of flat rolled items climbed again in August.

_{(Sourced from: MEPS-International Steel Review)}

Erdos Metallurgy to produce a new special grade ferro-silicon- Nov 2

TEX quoted Mr Zi Jisheng vice GM of Erdos Metallurgy Group as saying that a project to launch into production of special grade ferro-silicon has been in good progress.

He added that "The project is to produce ferro-silicon of special grade up to 20% of the company's annual production in the near future (cf. projected annual production of ferro-silicon including the special grade in 2015 is 1 million tonnes in total) and to start production of 50,000 tonnes on yearly basis using the existing 6 electric furnaces. Preliminary sales activities already started domestically with a plan to start overseas marketing, in Korea and in Japan first, before long."

Current production capacity of ferro-silicon of standard quality at Erdos' facilities is 650,000 tonnes per year, involving 52 electric furnaces. The capacity is to be expanded to 800,000 tonnes toward the end of 2011, by absorbing and refurbishing small medium sized furnaces from other small smelting companies, in accordance with the governmental guideline of trimming and or regenerating surplus and idled capacities, and starting operations at the newly built, under the corporate plan Phase 5, 4 electric furnaces of 36,000 KVA each.

Erdos decided to enter into the project (of special grade production) late last year, and test run production started already in April 2011. In July 2011, the company successfully acquired technology to produce special grades within the required specifications, i.e. with lower impurities of such as aluminum, titanium etc.

For production of the planned 50,000 tonnes per year of the special grades, Erdos intends to employ 6 electric furnaces, 4 x 8,300 KVA which were producing silicon metal, plus 2 x 12,500 KVA which have been engaged in standard grade ferro-silicon production.
China's stance for its steel production is gradually changing to pursue quality rather than quantity. Erdos, reacting to this gradual shift, made the decision to produce special grades in order to meet requirements for raw materials of higher quality to produce high class steels.

Also, the governmental policies to protect environments and to save energy have been enhanced every year, somewhat intangibly but firmly pressing Erdos, after 8 years of operation of ferro-silicon production, to meet and cooperate with the policies. At the same time this is a good opportunity for Erdos to build a better corporate image by starting production of special and better qualities as a part of its product lineup.

Mr Zi added that there was no worry about the raw material for producing the special grade, because both silica stone and cokes charcoal as reductants were available in adjacent areas.

(Sourced from: TEX Report Limited)

European steel sector set for sharper slowdown till 2011 end- Nov 1

It is reported that European steelmakers are braced for a weak end to the year after fears of recession that emerged in August transformed a seasonal dip in the third quarter into an extended slowdown.

Weak developed markets, exacerbated by the euro zone debt crisis, and tight credit conditions in China, the world's biggest steel consumer and producer, have weighed on the sector, even if the costs of raw materials are falling.

The third quarter is typically a thin period for the USD 500 billion a year global steel industry, but US and Asian producers have already forecast weak demand and prices stretching into the fourth quarter, when a pick up might normally occur.

Mr Ingo Schachel, analyst at Commerzbank, said that "I'm rather cautious on steel in 2012. I see lower demand from the automotive and construction sectors and only growth in engineering."

Mr Neil Sampat, analyst at Nomura, said that "ArcelorMittal's recent plans to consolidate its production footprint in Europe make sense, but the worry is that they will end up losing market share."


_{(Sourced from: www.reuters.com)}

China Automotive systems to form JV in Brazil- Oct 31

China Automotive Systems Inc a leading power steering components and systems supplier in China announced that its Board of Directors has approved the formation of a joint venture in Brazil to target the largest automotive market in South America.

The new joint venture which will be 80% owned by CAAS's wholly own subsidiary, Hengsheng will be based in Sao Paulo and established with two local Brazilian automotive partners, with ownership of 15% and 5%, respectively.

Mr Hanlin Chen Chairman of CAAS stated that "Brazil is the most important economic engine in South America and China has surpassed the United States as Brazil leading trade partner. The automotive market is on the rise in Brazil, with current annual OEM demand estimated at 3.5 million vehicles and a rapidly growing aftermarket sector. We have seen Chinese automakers, such as Chery Auto, one of our largest customers, successfully penetrate the Brazilian market with high quality, value-added vehicles and believe we can also leverage this trend. Our local partners have proven track records in production and distribution and we believe our strong product development capabilities and high quality control processes for mass production will create tremendous value for local OEM and aftermarket customers. This joint venture will enable us to capitalize on the significant growth opportunities presented by Brazil and South America, as a whole."

Indonesia to become next production base for auto part makers-Oct 28
It is reported that Indonesia will soon become the next destination for investment in auto parts manufacture as negotiations are underway.

Industry Minister M.S. Hidayat said that the investment in car components and sub-components would come in part by relocating auto part production centers that were experiencing production slowdown, including in Japan and Thailand.

Auto parts supply has reportedly suffered a disruption by the worst flooding in decades in Thailand, where the leading Japanese carmakers deploy their regional production base in Southeast Asia, as manufacturers halt operation.

He added that the talks of planned relocation had begun. Some companies in the electronics and automotive component sectors from Japan are showing interest in entering Indonesia.

Mr. Budi Darmadi, the Industry Ministry Director General of high tech priority industries indicated that apart from relocation, Indonesia was currently the key destination for investment in auto component and subcomponent facilities by looking at the recent robust expansion of car production.

Automotive foundry conducting R&D for CGI components- Oct 27

SinterCast AB reports that the Foundry Research Institute at China’s FAW Foundry Co. Ltd. in Changchun, China, has ordered a second SinterCast Mini-System 3000 to support its compacted-graphite iron research and development program.  Early last year, the research center ordered a comparable system to support CGI product development across the organization. That system has been transferred to FAW Foundry Co.’s Wuxi Foundry, which support’s FAW's Wuxi Diesel Engine Co., in Wuxi.

Stockholm-based SinterCast develops and licenses process control technology for producing CGI, an alternative to gray iron and aluminum for forming strong but lightweight automotive components. Its System 3000 is the third generation of the control package, introduced in 2010, and includes hardware, an operating system, and process control software. It’s a modular system that can be installed for any foundry or process flow, e.g., foundries that produce CGI from pressurized pouring furnaces or by ladle pouring. The Mini-System 3000 is scaled for research programs.

The new Mini-System 3000 at the R&D center will be used to develop CGI component parts for passenger cars, light-duty and heavy-duty commercial vehicles, and buses. 

The FAW Group manufactures passenger and commercial vehicles, and collaborates in vehicle development, production, and sales with various global automotive OEMS, including Audi, Ford, Hyundai, Mazda, Toyota, and Volkswagen.

"As the largest automobile manufacturer in China, with production of more than 2.5 million vehicles per year, FAW has established itself as the Chinese market leader for CGI product development," observed SinterCast president and CEO Dr. Steve Dawson. 

"Building on our successful, high-volume production of compacted graphite iron exhaust components in China since 2007, and the local presence provided by our offices based in Shanghai and Beijing, we look forward to increasing our support of the Chinese foundry and automotive industries as one of the key growth areas for SinterCast and CGI," he concluded.

Steel fights back against alternative auto materials- Oct 25

The study 'Preparing for a Life Cycle CO2 Measure' by the UK firm Ricardo looks at the embedded emissions that occur before a vehicle hits the road.

The study explores hidden emissions in electric vehicles. Battery powered cars reduce carbon output in use, but they may increase emissions in the manufacturing process and in recycling. The study estimates that embedded emissions will grow to 57% of the total lifecycle in EVs. The study calls on car makers to take into account the embedded emissions as they design vehicles for low emission output.

The steel industry has touted the study as an argument that steel may provide lower overall emissions than alternative materials. The auto industry is flirting with new and lighter materials to cut down on fuel consumption.

The Steel Market Development Institute argues that you have to take more into consideration than simply the impact of vehicle use.

Mr Ron Krupitzer VP of automotive markets at the SMDI said that "There are three factors that matter. There's the lifecycle of the materials in the car, how they affect the driving, and finally, the end of life in the recycling. Steel manufacturing requires one fifth to one twentieth the emissions of alternative materials."

Another factor the SMDI stresses is that new high strength light steel can provide the same collision protection as traditional steel.

Mr Krupitzer said that "One of the big factors in high strength steel is that it does the same job as the steel it replaces, but it's thinner and much more efficient in its structure. You have steel that is 25% less in weight while still having the same concussion strength."

The SMDI also cites the Ricardo study findings regarding end of life savings from steel. Mr Krupitzer said that "Steel is fully recyclable, so you don’t have to go back to iron ore. Steel is a very sustainable material. We are trying to educate people on this, including the EPA, so they understand that emissions are divided up into these different components."

To further drive home the argument regarding steel, WorldAutoSteel, the automotive arm of the World Steel Association, has called for a shift from measuring tailpipe emissions to total lifecycle assessment. In a statement directed to US, European, and Asian regulators, WorldAutoSteel director Mr Cees ten Broek said the manufacture of materials such as aluminum, magnesium, and carbon fiber produce far more emissions than steel.

The United States is examining fuel economy and emissions requirements for 2017-2025. The European Union’s midterm review of legislation on emission standards for new cars is expected next year. Efficiency standards are also being assessed in many Asia Pacific countries. In light of these developments, the steel industry is pushing hard to shift from measuring emissions during vehicle use and shifting to assessments based on the vehicle’s entire lifecycle.

_{(Sourced from: www.steelguru.com)}

General Motor Q3 sales jump 21% in Middle-East- Oct 24

General Motors Middle East has announced that the company continued to maintain a double digit growth for the 12th consecutive month in September. Last month concluded a successful Q3 for the US auto maker as its dealers in the region reported total sales of 9,853 vehicles in the month an increase of 13% over September last year.

Mr John Stadwick president and MD of General Motors Middle East Operations said that “September capped an outstanding 12 months for GM Middle East. The strong performance in September represents the 12th consecutive month of double digit sales growth for GM Middle East a record that stretches back to October 2010.”

Mr Stadwick said that to achieve 12 consecutive months of double-digit growth and to increase Q3 sales by 21% is an incredible achievement. It is testament to the investment we and our dealer partners are making to ensure we introduce the very best vehicles to the region combined with an unrivalled customer experience.

For the Q3 2011, GM Middle East reported total sales of 35,565 vehicles up 21% compared to the same quarter in 2010. The sales growth was recorded throughout the region for the company’s line up of passenger cars, crossovers, sport utility vehicles and pickups across its three brands: Chevrolet, GMC and Cadillac.

Total sales of Chevrolet in the Q3 rose by 21% while sales of GMC experienced a 28% increase. Meanwhile, Cadillac’s Q3 sales grew by 32%. Retail sales purchases made by individual customers rose by 43% during the Q3 and represented a healthy 73% of total sales.

September sales figures contributed to year to date total sales growth of 22% for the first 9 months of 2011 compared to the same period in 2010. Total sales of GM passenger cars grew by 8% during the Q3 of 2011. The gain was driven by sales of Chevrolet Optra which were up 55% compared to the same period in 2010, the Caprice and the Malibu. Sales of the Cadillac CTS rose 43% spurred by strong demand for the CTS Coupe.

_{(Sourced from: www.steelguru.com)}

Spain 2011 thermal coal imports seen at 10 million tonnes- Oct 21

An executive from Spanish utility Iberdrola said Spain is on course to import 10 million tonnes of thermal coal in 2011 due to better margins on burning coal than liquefied natural gas.

Speaking on the sidelines of the annual Coaltrans conference in Madrid, utility sources said they have renegotiated LNG take or pay contracts and resold cargoes mainly to Japan but also to Europe and elsewhere in Asia.

Mr Jorge Palomar a Madrid-based executive in Iberdrola coal and biomass trading department said "All of Spain's coal-fired power plants are currently burning."

He said that "Last year, it was very wet so there was more hydro available, this year it's been dry."

Data from national grid operator REE showed coal plants were providing 21.1% of Spain electricity by 1150 GMT which compares to an average of 8% for 2010 as a whole.

Utilities can sell hydropower at a discount to electricity generated from coal and gas, so a lack of it over the recent hot, dry summer has forced up wholesale Spanish power prices.

Spain coal imports have languished in recent years and many analysts expect them to be compromised this year by the introduction of market regulations favoring domestically produced coal.

_{(Sourced from: www.steelguru.com)}

NALCO- the aluminum giant from Orissa beckoning the world- Oct 20

National Aluminum Company Limited is considered to be a turning point in the history of Indian Aluminum Industry. In a major leap forward, NALCO has not only addressed the need for self sufficiency in aluminum but has also given the country a technological edge in producing this strategic metal on the best of world standards. NALCO was incorporated in 1981 in the public sector, to exploit a part of the large deposits of bauxite discovered in the East Coast in technological collaboration with Aluminum Pechiney of France.

NALCO’s original project cost of INR 2408 crore was partly financed by 980 million US dollars, extended by a consortium of International banks. By 1998, the company not only achieved a zero debt status but is going steady with an internally funded major expansion plan involving an investment of over INR 3700 crore. With its consistent track record in capacity utilization, technology absorption, quality assurance, export performance and posting of profits, NALCO is a bright example of India’s industrial capability.

Today, as an ISO 92002 & 14001 Company, NALCO has emerged as the largest integrated bauxite alumina aluminum complex in Asia. The complex has 5 multi locational complexes in Asia. The complex has five multi location well integrated, segments viz Bauxite Mine, Alumina Refinery, Aluminum Smelter, Captive Power Plant and Port Facilities. On Panchpatmali hills of Koraput district in Odisha, a fully mechanized open cast mine of 2.4 million tonne per annum capacity is in operation since November 1985, serving feed stock to Alumina Refinery at Damanjodi located on the foothills. Under the ongoing expansion program the capacity has been expanded to 4.8 million tonne per annum.

The 8,00,000 tonne per annum Alumina Refinery having two parallel streams of equal capacity is located in the picturesque valley of Damanjodi in Koraput district. In operation since 1986, the refinery is designed to provide about 40,000 tonnes of Alumina to the company’s smelter at Angul and Export the balance of Alumina to Overseas markets through Visakhapatnam port. Presently, the capacity is being expanded to 1,575,000 tonne per annum.

The 230,000 tonne per annum capacity Aluminum smelter is located at Angul in Odisha. Based on energy efficient state of the art technology of smelting and pollution control, the smelter plant is in operation since early 1987. Presently, the capacity is being expanded to 345,000 tonne per annum. Close to the Aluminum smelter at Angul, a captive power plant of 720 MW capacity comprising 6x120 MW clusters has been established of firm supply of power to the smelter.

Presently, the capacity is being expanded to 960 MW. NALCO has established mechanized storage and ship handling facilities port. The quality assurance associated with NALCO received international acclaim with NALCO metal’s admission into London Metal Exchange in May 1989. The Company also enjoys the status of a Star Trading House and has won export awards from Capexil and EEPC year after year.

NALCO has a strong global presence. The Company today boosts of satisfied customers in more than 30 countries worldwide. In recognition of the interests of the society in securing sustainable industrial growth, NALCO assigns high importance to promotion and maintenance of a pollution free environment in all its activities. Environment Management Systems in all production units of NALCO conform to the ISO 14001 norms. The prestigious Indira Priyadarshini Vrikshamitra Award achieved by the company in the year 1994 bears further testimony of NALCO’s concern for the environment. NALCO is committed to use non polluting and environment friendly technology.

The Company has adopted a policy of playing a catalytic role in improving the quality of life of the people living in peripheral villages, in collaboration with local government authorities, especially in Development, Construction and repair of roads, culverts, bathing ghats, schools and hospital buildings in the peripheral village, free medical facility at NALCO hospitals to the displaced families and extension of medical services to rural areas through health camps, digging of tube wells, bore wells and extensive financial support to rural drinking water schemes; active participation in the national literacy mission at the district level; encouragement and financial support to local sports, cultural and community welfare events social forestry, agriculture, pisciculture, health and sanitation programs with the participation of the community and govt. agencies are corporate social responsibility taken by NALCO’s Higher Management every year.

_{(Sourced from: www.steelguru.com)}

Eicher Trucks and Buses sales up 20% in Sept- Oct 19

Eicher Trucks and Buses today said it has registered a growth of 20% in its at 4,627 vehicles in the month of September.

It has recorded a jump of 13.3% in the domestic commercial vehicle market (5t and above) during the month.

In 5-12t light and medium duty truck segment, the company has posted 16.4% growth, a statement said.

The "VE Series" of fuel-efficient heavy-duty trucks has recorded a growth of 11% in September 2011 over the corresponding month last year in the domestic market.

On the exports front, it has recorded a sale of 475 units which is 139% higher than 199 units in September 2010.

Eicher Trucks and Buses is a business area of VE Commercial Vehicles Ltd. It is present in as many as 26 countries .

_{(Sourced from: UNI)}

Daimler approved to set up JV with Foton- Oct 18

China Knowledge reported that Daimler AG, the world second largest maker of luxury cars has received approval from China Ministry of Commerce for a truck making joint venture with Beiqi Foton Motor Co Ltd.

Mr Dieter Zetsche Daimler chairman said the 50:50 JV named Beijing Foton Daimler Automotive would give Daimler a 50% stake in the Chinese partner medium and heavy-duty truck business marking an important step for the global growth strategy.

A person familiar with the matter said the JV expects to use Foton Auman brand as a platform to increase auto market in China and seek cooperation opportunities outside of China , adding that the JV is designed to have an annual output capacity of 160,000 trucks.

Trucks produced by the JV will be installed with engines developed by Mercedes Benz, Daimler luxury car unit.

_{(Sourced from: China Knowledge)}

Skoda Citigo small car revealed- Oct 17

Skoda has unveiled its new small car, the Citigo. Based on the Volkswagen Up platform, the Citigo is the first in an aggressive product roll-out by Skoda that will see a new car being launched every six months.

The Citigo’s styling mixes its current cues from the Fabia with the look of its recent VisionD and MissionL concept cars. It features a finned grille set in a chrome-plated frame, similar to that seen on the MissionL.

The car is 3560mm long, 1650mm wide and 1480mm high. Skoda claims that its 2420mm wheelbase offers enough interior space for four passengers, making it comfortable even for long trips. Boot volume is 251 litres, or 951 litres with the rear seats folded down.

The Citigo will initially be offered with the Up’s 1.0-litre, three-cylinder petrol engine with two power outputs – 59bhp and 74bhp. Highly economical variants under the Green Tec banner will also be available. The Citigo will be available in both manual and automatic transmissions.

In the European model, the interior kit includes numerous storage compartments, Bluetooth and Satnav, which comes in the shape of a detachable, portable five-inch touchscreen. The car will also feature Skoda’s new brake assistance system for collision avoidance.

The three-door Citigo is the first of a range of new cars the company collectively calls ‘New Small Family’. However, Skoda technical chief Eckhard Scholz has said that the four-door version, previewed at the recent Frankfurt motor show, would be "the most important" of the new cars.

"The three-door looks good, but the four-door is even better in my opinion," he told Autocar. Scholz has also confirmed an "aggressive price" for the Citigo.

An electric version of the Citigo is also under consideration, but not yet confirmed. "We need to learn about the technology first," said Scholz.


_{(Sourced from: www.autocarindia.com)}

Turkish auto sales in 9 months surges by 30%- Oct 17

The Turkish Automotive Distributors Association recently said that Turkish passenger car and light commercial vehicle sales rose 29.5% in the first nine months of the year but dipped 6% in September.

It said in a statement, automotive sales amounted to 59,990 units in September and 602,228 units in the nine month period.

_{(Sourced from: www.steelguru.com)}

World Auto Steel calls for shift in vehicle regulations- Oct 14

WorldAutoSteel, the automotive group of the World Steel Association, pressed that the need to shift the basis of vehicle emissions regulations from tailpipe emissions to a total life cycle assessment.

LCA considers emissions from all aspects of a vehicle's life, from material production to end of life recycling, and should play an important role in current regulations in discussion around the world.

Mr Cees ten Broek director of World Auto Steel said that "When vehicle emissions assessment is focused solely on emissions produced during the driving phase (tailpipe), this encourages the use of greenhouse gas intensive materials in an effort to reduce vehicle weight and fuel consumption. However, this may have the unintended consequence of increasing greenhouse gas emissions during the vehicle’s total life cycle."

Alternative materials, such as aluminium, magnesium and carbon fibre, produce emissions during their manufacture that are five to 20 times greater than steel.

The US is currently examining further fuel economy and emissions requirements for 2017-2025. And while the mid term review of EU legislation on emission standards for new cars is expected for next year, in many Asia Pacific countries vehicle efficiency standards also are being assessed. In light of these developments, the industry is calling for a shift from tailpipe emissions regulations to a life cycle assessment approach that effectively measures the carbon footprint of today's and future cars.

Mr ten Broek said that "Legislation that focuses only on one part of the vehicle’s life cycle will become immediately out of date as the electric vehicle becomes more prominent on the road. We are only shifting the problem to other vehicle life cycle phases."

World Auto Steel recently released results of a global steel industry initiative, the FutureSteelVehicle, which features fully engineered steel body structure designs for electrified vehicles that reduce total life cycle emissions by nearly 70% and vehicle weight by 35% compared to a benchmark. FSV demonstrates that low life cycle emission vehicles are not only possible with steel, but more probable.

_{(Sourced from: www.steelguru.com)}

Indian steel market basks in the global gloom- Oct 13

October has enlivened Indian steel market which stands in stark contrast to the apocalyptic global market. The sudden revival in domestic market is a child of global turmoil that has left a veritable ground for the Indian mills to capitalize.

A thudding depreciation in INR v/s USD by 12% since July has provided the cutting edge to Indian mills as the import levels despite USD 30 per tonne to USD 50 per tonne correction is barely competitive with the domestic levels. Indian mills sensing opportunity hiked prices in long and flat products by INR 1000 per tonne to INR 2000 per tonne.

At the same time a severely curtailed iron ore supply, after a wave of legal tirade against scandalous miners, caused shortfall in finished products. With JSW production down to 50% and import shut out, a deficit of nearly 250000 tonnes to 300000 tonnes per month in HRC has provided the nudge for prices to look up.

At the same time the long product prices are on a dream run edged by hiked sponge iron prices and severe power crisis afflicting the entire nation. In the gung ho one cannot be oblivious to the underlining reality of sluggish demand. Spiraling cost of borrowing as the economy grapples with whirlwind inflation at 9.78% and the RBI tightening its belt to hike it further on 25 October there seems to be no respite for the bedraggled demand. The mills having ambitiously hiked the price might just have overdone as the off lift is reportedly slow.

Russia's scrap export hits 285,000 tons July- Oct 12

In this July, Russia's scrap exports totaled 285,000 tons, up by 44.6% year-on-year but decreased by 44.6% month-on-month.

This is the first time that export scrap quantity to drop in the recently four months.

Russia's major scrap export countries were Turkey by 159,000 tons, South Korea by 30,000 tons, Spain by 24,000 tons and Egypt by 21,000 tons.

Russia's total scrap export quantities during the first 7 months were 2.182 million tons which had risen 77.1% year-on-year and its monthly export quantity in average was about 312,000 tons.

Japan ’s nickel base stainless steel scrap prices drop further- Oct 10

Affected by the slumped nickel prices at LME, the prices of Japanese nickel base stainless steel scrap decreased to ￥140,000/ton in the beginning of October from ￥155,000~￥160,000/ton in the end of September.

Besides, it’s known that the Japanese specialty steel mills in Nagoya cut the scrap
prices further by ￥5,000/ton.

Meanwhile, It’s known that the distributors in Japanese Kanto region currently purchase the stainless steel scrap with prices of ￥130,000/ton.

US H1 scrap average price remained flat for consecutive nine weeks- Oct 10

The average prices of the US’s H1 scrap in Pittsburgh, Chicago and Philadelphia were at US$416.83/long ton on October 3rd, 2011, remained unchanged from a week earlier.

Also, the US’s H1 scrap prices have remained unchanged for consecutive nine weeks.

Among them, the average H1 scrap prices in Pittsburgh, Chicago and Philadelphia were at US$409.5/long ton and US$419.5/long ton and US$421.5/long ton respectively.

At the same time, the average prices of the H1 scrap in New York, Boston and Houston kept unchanged at US$400.83/long ton, stayed flat from a week earlier.

US fines auto parts firm Furukawa Electric for price fixing- Oct 7

The US Justice Department announced that Japanese auto parts firm Furukawa Electric was fined USD 200 million and three company executives sentenced to prison for price fixing and bid rigging.

The department said that Furukawa and the executives pleaded guilty to the felony charges, the first in an ongoing investigation into price fixing and bid rigging by international auto parts suppliers.

The three executives, Mr Junichi Funo, Mr Hirotsugu Nagata and Mr Tetsuya Ukai, agreed to serve 12 to 18 months in a US prison for their roles in the conspiracy. The fines and sentences still have to be approved by a court.

Ms Sharis Pozen, the department's acting assistant attorney general, said that "As a result of this international price fixing and bid rigging conspiracy, automobile manufacturers paid noncompetitive and higher prices for parts in cars sold to US consumers."

According to the department, the price fixing ring was involved in the supply of wiring harnesses and related products to automakers over at least a decade to 2010.

Ms Pozen did not name any other companies suspected as taking part in the price fixing ring, but told reporters that the investigation is ongoing.

Two of the executives, Mr Funo and Mr Ukai, worked in Japan in the company's Honda sales division, but Mr Funo also spent time during the period under investigation in the Detroit area, the hub of US auto manufacturing.

Mr Nagata was general manager of sales at Furukawa's US subsidiary, and also worked in the Detroit area. Ms Pozen said the company had cooperated with investigators, but declined to say whether that resulted in reduced fines or prison sentences. She also said the investigation involved with authorities from other countries, but declined to be specific.

(Sourced from: www.chinapost.com.tw)

Japan to develop new materials and components to reduce vehicle weight- Sept 30

It is reported that steelmakers and chemical manufacturers in Japan have placed a firm focus on developing new materials and components to make vehicles lighter.

As per report, Japanese automakers have been increasingly procuring parts and materials overseas due to the strong yen and so now these manufacturers are attempting to bolster their competitive position.

In particular, it highlights the case of Sumitomo Metal Industries Limited, which has developed technology capable of processing high intensity steel tubes into car bodies and cutting weight in half. It also involves a new heat treatment process that forms steel tubes into complicated shapes while also making the tubes as much as 150% stronger.

Other examples include Toray Industries and Teijin Limited, which are working on technology for producing carbon fibre at a lower cost and DIC Corporation, which has built a production line for polyphenylene sulphide, a high function resin which is seen as a lightweight alternative to metal.

_{(Sourced from www.thegreencarwebsite.co.uk)}

Toyota seeks changes in parts export policy- Sept 29

It is reported that Toyota has urged the government to change the criteria for selling automobile parts via a third country to India under the bilateral free trade agreement between Thailand and India .

Mr Kittiratt Na Ranong commerce minister of Thailand said that the issue of third party invoicing is covered by regulations related to rules of origin and has been amended to facilitate trade. However, Thailand needs to ratify the amendment under Article 190 of the constitution.

A few items of automobile parts are included in the so called early harvest scheme of the Thailand India FTA, which is expected to be expanded in the future to cover more goods and services.

Toyota executives were part of a group of businessmen who met with Mr Kittiratt yesterday to discuss issues related to the automotive industry.

Executives of Ford Motor Co told the minister that they would like to see the government open more opportunities for joint cooperation in order to underline Thailand 's position as a major regional production base for the automobile industry.

_{(Sourced from www.bangkokpost.com)}

Ford may make electric cars in China- Sept 28

Bloomberg citing Mr Alan Mulally CEO of Ford Motor Co as saying that may make electric cars with its partner in China as the auto industry moves toward producing more fuel-efficient vehicles.

He said that “As we move to more electrification, you’re going to see more hybrids, plug-in hybrids and all-electric cars.”

Mr Mulally in China for the groundbreaking of an engine transmission plant at Ford venture with Changan Automobile Group didn’t say when the Dearborn, Michigan-based company may start making the electric cars. Rivals Daimler AG and General Motors Co have announced plans to add such vehicles in China as the country and the world largest polluter and seek to reduce emissions.

He said that the government aims to have 1 million electric-powered vehicles on the road by 2015. A rollout of electric vehicles depends largely on infrastructure and advances in battery technology.

He added that Ford will also consider introducing its Lincoln luxury brand in China to tap the growing high end sedan market. The carmaker now sells models including its Mondeo sedan and Focus small car in the country.

He also said “We have a great luxury brand in Lincoln which we have recommitted ourselves to. There’s going to be tremendous pull from China to have access to these great vehicles.”

According to JD Power & Associates while GM controlled 10% Ford is spending USD 1.6 billion to build four factories in China where it plans to triple its line up by offering 15 models by mid-decade. The carmaker dependent on the US and Europe for most sales and profits had 2.7% of the passenger vehicle market in China through June.

Analysts at JD Power forecast China demand for luxury cars will grow about 35% this year. This compares with a 5% increase for overall auto sales as predicted by the China Association of Automobile Manufacturers. Ford also expects the market to grow at about 5% near the low end of its 5 to 10% forecast.

_{(Sourced from Bloomberg)}

Renault and Volkswagen to expand manufacturing operations in Brazil- Sept 26

Dow Jones Newswires reported that France's Renault SA and Germany's Volkswagen AG are planning to expand their Brazilian manufacturing operations, at a combined cost of at least BRL 2 billion.

The news comes even as sales in Brazil are starting to slow, amid government rules introduced to tame auto credit growth, as well as a slowing local economy.

As per report, Renault is preparing a major development in the southern state of Parana and may also unveil a new plant for its Nissan Motor Co unit.

Mr Carlos Ghosn CEO of Renault said that Renault has achieved a 10% market share on average around the world, but is lagging in Brazil, at just 5%.

Volkswagen, meanwhile, is considering whether to expand its existing three plants or build a new one. The company builds 3,600 cars per day and wants to increase that by 600 or 700 in the short term and 1,200 or 1,400 over the medium term.

_{(Sourced from: Dow Jones Newswires)}

MAN Truck is the leading western importer in the market- Sept 23

It is reported that MAN continues on course for success in Russia an MAN coach the Neo-plan Cityliner has been voted "Bus of the Year" at Comtrans 2011, the international commercial-vehicle show in Moscow.

1. The prizes
With its striking design this vehicle is the best selling Neoplan model in Russia and has already won the red dot design award best of the best. Beside this a jury of specialists and independent experts in Russia singled out the MAN Lion Regio as the winner in the category lowest running costs for buses.

2. Important growth market
Dr Frank Hiller Director Marketing, Sales & Services at MAN Truck & Bus AG was extremely pleased about the prizes "As an important growth market, Russia plays a major part in our BRIC strategy. These distinctions not only confirm the successful activities of MAN Truck & Bus on the Russian market but show once again that high quality vehicles are those most favored by experts and customers alike."

3. Once again the leading importer in Russia
The success is reflected in sales too in the first eight months of 2011 MAN was once again the leading European importer of commercial vehicles on the Russian market. From January to August 2011 the company delivered a total of 4,282 trucks over 6 tonnes and 152 coaches and intercity buses in the 12 metres and over segment to Russia. The number of units sold in the full year 2011 is set to be about twice as high as in 2010.

This makes Russia the second largest market for MAN Truck & Bus after Germany. MAN is currently setting up a truck production plant in St Petersburg. As early as 2012 a quarter of the trucks sold in Russia are to be produced locally.

_{(Sourced from: MAN Truck & Bus)}

Volkswagen may take over Suzuki- Sept 22

Volkswagen could make a move to take over Japan's Suzuki, German magazine Der Spiegel reported, citing an unnamed senior manager at VW.

"I do not rule out this possibility," the weekly quoted the person as saying on Sunday.

Volkswagen declined to comment on the matter.

Suzuki said on Monday it wanted to end its two-year alliance with VW after the German carmaker accused it of violating the pact by agreeing a diesel engine supply deal with Italy's Fiat.

Suzuki chairman and CEO Osamu Suzuki has offered to buy Volkswagen's 19.9% stake in his company with cash, but the German company has said it has no intention of selling.

VW, which has tried to patch things up since its relationship with the Japanese carmaker turned sour two months ago, has said it was happy with its investment in Suzuki.

According to Spiegel, VW cannot raise its stake in Suzuki without the Japanese company's consent as long as the alliance between the two companies is still in place. But if Suzuki cancels the partnership, VW would be free to stock up, it said.

Daimler Trucks new heavy duty Actros truck- Sept 21

The new Mercedes-Benz Actros is the new benchmark for premium class trucks. It reconciles high performance with low fuel consumption, its emissions are lower in pollutants than any comparable vehicle and its has undergone testing of unprecedented intensity.

Typically for a truck, the cab on the new Actros is available in a range of different variants. Less typically, two widths and no less than six height and roof variants are available, tailored precisely to individual operational requirements. And anything but typically, the majority of cabs for the new Actros feature a flat floor, offering generous freedom of movement on board. The new Actros with GigaSpace cab has almost 12 cubic metres of space inside.

Space and freedom of movement are of great importance in long-haul trucks. A driver may spend days or even weeks on the road in such vehicles. The cab thus serves as the driver's workplace, living area and sleeping berth in one. In view of this situation, the cockpit and living area have been separated from one another for the first time in the new Actros by means of the colour scheme and the cockpit's geometric design.

BlueEfficiency Power is the name of the new engines in the new Mercedes-Benz Actros combining clean running and power. The experience of driving with these engines is as impressive as these key data suggest: with a displacement of 12.9 l the six cylinder in line engines generate 310 kW (421 hp) and 375 kW (510 hp) in four stages, with maximum torque ranging between 2100 and 2500 Nm.

The new Actros has been developed according to the strict rules of Daimler Trucks' eleven "quality gates", which control the development process in defined steps. This process entails countless individual tests on engines, transmissions, other drive components, chassis and cab on test benches, as well as tests on rough roads, endurance tests, functional tests and tests in a climatic chamber

Automaker JLR to open plant in England- Sept 21

British luxury automaker Jaguar Land Rover is set to build a 400 million pounds ($632 million) engine plant in the UK, according to the Sunday Telegraph newspaper.
The report, citing a source with knowledge of the company's plans, said the factory would be built in Wolverhampton, central England, and create some 2,000 jobs.

It added Britain's coalition government had offered around 10 million pounds of support for the plant.
JLR, a unit of India's Tata Motors, could make an announcement as early as Monday in conjunction with British business secretary Vince Cable, the report added.
JLR was unavailable for comment when contacted by Reuters

World's largest auto show is alive and buzzing- Sept 15

The 64th IAA International Motor Show got under way on Tuesday in Frankfurt, Germany. The world’s largest auto show usually has some very significant unveilings and launches, and this occasion was no different, with some interesting and exciting cars showcased. Around 1,000 exhibitors are taking part from 35 countries and at least 80 world premieres are expected over the coming days.
This show is important for the BRICS  (Brazil, Russia, India, China and South Africa) nations, as it is these markets that are displaying signs of growth while much of Europe is in a slump. Some of these models have significance for the Indian market and here’s an idea of some of the more prominent ones.

The IAA is held within a very large exhibition area in the heart of Frankfurt, and this year, Audi went all out to grab everyone’s attention with its space-age display area, where you could actually get to drive some of their cars. The RS5, a performance coupe available in India, was displayed in a slightly updated edition, as was the
RS version of the A3 and the TT. The concept for the A2, a small hatchback, was shown. It looks like a car that could eventually be considered for India.
Jaguar and Land Rover were very prominent during the show as well.
Jaguar showcased the CX-16 concept, their vision for the sportscar of the future. With an all-aluminium construction, this two-seater sports car features a powerful 3.0-litre V6 petrol engine in addition to an electric motor, making it a hybrid with plenty of promise. A unique feature is a button on the steering wheel which, when pressed, gives the driver a 10-second boost of torque for a burst of acceleration. The car has in its design DNA the legendary E-Type as well as nods to the XK line of sport cars, with a hint of Aston Martin as well -- after all, its designer Ian Callum has designed Astons as well!
The legendary Land Rover Defender, perhaps the most iconic off-road vehicle ever made, is also being readied for an entirely new version. On show were the DC100 and DC100 Sports concepts, both of which are a complete departure in design language from the rugged looks of the traditional Defender. The concepts are modern and futuristic. They take on a classic design, looking almost like machines from the 'Transformer' movies. Significantly, a new logo for the JLR group was unveiled, which was also a more futuristic design. Similarly, the Jaguar logo also saw a subtle change.
The Volkswagen group had a very strong presence at this year's show, and had most India-relevant cars lined up. Most important for us is the Up, a hatchback VW hopes will become a Beetle of sorts — another people's car in other words. It is a design that will appeal to a wide variety of people and while the two-door version was showcased at Frankfurt, a four-door hatch is what will make it to India, most probably by early 2013. It will compete with the likes of the Hyundai i10 and Maruti Suzuki Wagon R.
Skoda showed the MissionL concept, a sedan that in India is likely to be a replacement for the Octavia and could be badged the Lauretta. It is a fresh design and sharper looking than anything we have come to associate with traditional Skoda designs. Based on the Volkswagen Vento platform, it could compete with the Honda City and Vento, among others. Porsche unveiled the new 911, the latest version of their legendary sports car. Over the last 48 years, the 911 has never strayed from its basic design philosophy, and the latest version is no different in that regard. However, it is definitely a more beautiful car now than it has ever been, and it is longer too.
In the upper stratosphere of the market, Lamborghini showed off the Gallardo Super Trofeo Stradale, a lighter and more hardcore version of the Gallardo supercar, and Bugatti displayed a porcelain-based version of the Veyron that was, quite frankly, a bit mad! Bentley also showed the newest version of their luxury sports tourer, the Continental GTC.
Mercedes-Benz were also prominently present at the show. They unveiled the ML class, a luxury SUV, and the brand new B-Class, an MUV likely to come to India by mid-2012. The ML shows a lot of promise as an India launch in the near future, given the huge growth in the market for top-end SUVs. Another interesting display here was the A-class concept, an extremely futuristic take on the smallest car in the Mercedes stable; the concept was aggressive in appearance and much larger than the current car. A concept for the future S-Class was also unveiled. Honda displayed the new Civic, but in hatchback form, which will not come to India. Design cues from it are likely to be seen in the sedan version we'll get in 2012.
Hyundai showed the updated version of the i30. The i30 platform is likely to underpin the Elantra sedan, which will compete with the Honda Civic and Toyota Corolla and a 2012 launch can be expected. Maserati showed their concept SUV, which will come to India for sure when launched. It is based on the Jeep Cherokee platform and should help the company better its sales figures from the current 6,000-odd units a year globally.
Of course, these are but a small part of the show, which features more manufacturers, both small and large. One thing is clear, though: the high-end European car makers are headed towards making premium cars that feature advanced technology, including hybridisation, in order to get in line with stricter emission norms, while manufacturers at the lower end of the scale are headed towards smaller internal combustion engines to achieve the same goal. How all of this will tie in with with the growth markets remains to be seen, since these markets are still overwhelmingly based on fossil fuels and alternative technology has not proved to be very popular in these countries. Only time will tell.

Aluminum threatens to overtake Steel in Auto Production- Sept 14

Industry touts survey showing significant gains in automotive applications. By 2012 the use of aluminum in automobiles could reach record highs, the Aluminum Association reports. The organization cited a Ducker Worldwide survey that shows North American automakers will increase their use of aluminum 53% to 500 pounds by 2025.

Fuel-economy standards in the United States are forcing carmakers to seek lighter-weight materials for production. Aluminum is seen as one of the steel industry's most formidable challengers in the race to produce fuel-efficient vehicles.

Steelmakers have led the way to vehicle-mass reduction with advanced high-strength steels. These steel grades feature the strength characteristics of traditional steel but are easier to form and lighter than other older versions.

But the Aluminum Association, which represents U.S. and foreign-based aluminum producers, says aluminum can replace more than twice as much weight as steel. Alcoa Inc. marketing director Randall Scheps touted the Ducker findings as a sign that "aluminum's time has come" as a major player in new vehicle designs.

Aluminum certainly has weight advantages over steel, but the material's cost and lack of familiarity within the auto industry are still challenges for the industry, says Jay Baron, president and CEO of Center for Automotive Research in Ann Arbor, Mich. In many instances, automakers' plants are more equipped to handle steel than aluminum.

"We like steel in the auto industry because we've been using it forever, we know how to form it, and it's magnetic," Baron says.

The magnetic qualities of steel allow the auto plants to use magnets for material-handling purposes, Baron says. Automakers also are more familiar with how to weld steel than aluminum, he says.

Aluminum also poses corrosion issues if an aluminum part touches a steel component in the vehicle, Baron says.

Perhaps the greatest advantage steel has over aluminum is cost. Aluminum can be two to three times more costly than steel, Baron says.

That cost can be offset, though, by cost savings from downsized components, the Aluminum Association contends.

"Downweighting is actually an enabler of cost savings across the vehicle by accommodating downsized powertrains and parts consolidation - all without sacrificing safety or performance," said Scheps in a prepared statement. "A lighter car can allow for a smaller, less-expensive drive train and generate the same performance as the original vehicle more cost effectively, safer and, most importantly, in a fuel-efficient manner."

Aluminum has been used primarily in powertrain and wheel applications, but it's gaining market share in body applications, including hoods, trunks and doors, the Aluminum Association reports. General Motors Co. leads all North American automakers in aluminum content with 366 pounds per vehicle, according to the Ducker survey.

Volkswagen to add 8 new factories worldwide- Sept 13

Volkswagen AG will add about eight factories within seven years, Mr Martin Winterkorn VW group CEO said that "By 2018 we will be operating about 70 factories.”

Mr Winterkorn was quoted saying in an interview last week. With 62 factories worldwide that makes it at least eight new factories.

A factory for Audi in North America seems to be high on the list. Mr Winterkorn said that "With good reason, Audi is considering production in the dollar zone. Where, specifically, is under discussion right now. But they need at least 150,000 units for a reasonable utilization of capacity."

Mr Winterkorn continued that "We basically manufacture where the demand is. For this reason, we have built new factories in Russia, India and the US in recent years."

Mr Winterkorn commented on the situation in China by saying that "In China, we just expanded our Chengdu factory and approved the financing for two more factories, in Foshan and Yizheng, by 2013. If that market keeps growing the way it has, even more facilities are conceivable."

_{(Sourced from: www.steelguru.com)}

Car makers hope to fend off European gloom in Frankfurt- Sept 12

The global automobiles industry descends on Frankfurt next week (Frankfurt Auto Show) to show off the latest models it hopes will fend off an economic slowdown in some of its biggest markets, as government spending cuts chip away at consumer confidence in Europe .

Car makers are also facing slowing growth in China , now the world's number one auto market, and a major driver of surging demand for luxury cars over the last two years.
Even if the United States avoids recession, competition will intensify there as Japanese auto makers battle to claw back ground lost when the March earthquake disrupted production.

Car registrations in some major European markets actually rose last month, but analysts are warning the numbers, which reflect cars bought up to two months ago, before the summer's stock market slump, do not tell the whole story.

Certainly from a stock market point of view, a lot has changed during that time, said Barclays Capital analyst Michael Tyndall. I take little comfort from good August numbers.
It's been very aptly put that we have to be careful we don't talk ourselves into a recession, he said. It's quite easy from a consumer perspective to get yourself to a point where you don't want to spend on anything -- it's all too uncertain, he added.

Tyndall's assessment of the vicious circle that could choke off demand is shared by luxury car maker BMW's chief financial officer Friedrich Eichiner, who told reporters on Friday: We don't want to bring about a crisis by talking about it, because we don't see one at the moment.

Eichiner said: We believe we will have to cope with dampened growth in the future, but not necessarily with a new recession.

However, with the macroeconomic situation changing quickly, gloomy forecasts could weigh on demand.

Tyndall said: We're looking at slower growth and in Europe we're looking at some retracement in 2012 but not anything like the collapse we saw in 2008.

But even if the car industry is expecting something far short of a crash, it will face up to the slowdown without the support from the government loans and generous scrappage schemes that saved the market last time round.

PricewaterhouseCoopers analysts see a difficult final quarter of 2011 in Europe that will drag the year as a whole into a 2.5% dip in the European car market to 13.4 million vehicles.

Josselin Chabert, an analyst at PwC's Autofact's unit said: With the debt crisis, the lowering of economic forecasts and weak prospects for the job market, numerous European countries could experience a difficult next few months.

European car makers may have scrambled to increase their presence in China and other new regions but they still rely on Europe for the bulk of their sales and tough austerity measures threaten consumer spending power.

The Frankfurt show, which opens to the media on Sept 13, is traditionally a chance for premium German car makers to show off their new models.

Those brands in particular have been riding high, as newly affluent Chinese buyers have snapped up their plush models, but the smaller cars they are set to unveil next week should help them win a bigger slice of stagnating demand in Europe, where tightening emissions legislation favours small vehicles.

It's a wide trend, especially for German car makers, shifting down-segment, said IHS Global Insight analyst Tim Urquhart, adding that the move also helped attract younger drivers.

They can expand into the smaller segments and there's a whole new demographic that will be able to buy their vehicles.

Mercedes-Benz will take the wraps off its new B-class for the first time in Frankfurt , while BMW will show its new 1 series compact.

Europe's  largest car maker Volkswagen will show its new small city car, the Up!, which it hopes will rival popular small models including Fiat's 500 and form a key part of its bid to be the world's largest car maker by 2018.

VW unit Audi will display an urban concept car powered by a lithium-ion battery and built around a carbon-fibre monocoque frame on its lavish 10 million euro stand which incorporates its own test track.

PwC said Germany itself remains a relative bright spot in Europe 's gloom and predicted growth this year of 9.7% in that market, the region's biggest, after its economy held up better than some of its neighbours.

Whether this will last is an open question and dealerships are braced for tougher times ahead.

Ernst-Robert Nouvertne, owner of dealership Autohaus Nouvertn am Wasserturm in Solingen said orders had cooled off quickly since May after a strong start to the year.
But we expect new models and premieres at the Frankfurt auto show to play a key role in giving a boost to new orders.

Juergen Karpinski, owner of Autoschmitt Frankfurt added: New cars are in demand and waiting lists can be several months long. Nevertheless we expect an impact -- that always happens when the economy softens and hurts purchasing power, it just comes with a delay.

Japanese domestic auto sales down by 26% in August- Sept 9

It is reported that Japan's auto sales dropped by 26%  in August 2011 as production disruptions after the massive earthquake in March were still holding up the supply of vehicles five months later.

But the industry is hoping to see a sales recovery from October 2011 as companies begin to ramp up output to make up for lost time. The result in August, which marked the 12th consecutive monthly decline, also reflected a high basis of comparison in the year earlier month, when sales surged by nearly 50% as consumers rushed to take advantage of government subsidies for fuel efficient vehicles before the offer expired in September.

A spokesman at the Japan Automobile Dealers Association said that "Last year was unusually strong, we don't expect sales to keep dropping by around 30% in the coming months."

The result in August came after a 28% YoY fall in July, a 23% drop in June and a 38% fall in May. In April, the first monthly data to fully take into account the impact of the March 11th 2011 earthquake and tsunami on Japanese auto production and consumer sentiment, sales plunged 51%.

Still, the Japanese auto market is heading for a recovery as companies prepare to boost production once their supply chains return to normal, the spokesman said.

Mr Toshiyuki Shiga chairman of Japan Automobile Manufacturers Association said that "All car makers are set to make big volume increases in the fiscal second half that starts in October, as their quake disrupted parts supply chains will be back to normal."

Toyota Motor Corporation plans to boost production in September, one month earlier than initially planned, to catch up on the previous six months. Honda Motor Co plans to increase output volume by 25% in the fiscal second half, while Nissan Motor Co expects its manufacturing to be back to pre quake conditions in October.

Sales of new cars, trucks and buses in Japan stood at 216,510 vehicles in August. The figure does not include sales of mini cars and trucks with engine capacities of 660 cubic centimeters or less.

Toyota's sales sagged 24% to 98,376 in August, but those of its Lexus upscale brand rose 67% in the month. Nissan sold 33,776 vehicles in the month, down 25% YoY, while Honda's sales slumped 49% to 25,549 vehicles.

_{(Sourced from:www.steelguru.com)}

Venezuela to increase iron output with help from China- Sept 8

Venezuela hopes to improve its production and transport of iron after signing three agreements with Chinese companies.

The contracts include the purchase of mining equipment, the expansion of a port in the state of Bolivar and the enlarging of a shipping lane in the Orinoco River.

According to Venezuela’s basic industries and mining minister Mr Jose Khan, the work encompassed by the agreements will be completed in roughly 18 months, state media reported.

The accords, between the South American country and Wuhan Iron & Steel Group, China Railway Group and China Communications Construction Co, are valued at USD 473 million. The projects will be financed with loans from Chinese funds and are scheduled to be completed in about 18 months. The debt will be repaid either in raw materials and or currencies.

The first agreement involves a USD 200 million contract between Ferrominera and China's state owned Wuhan Iron and Steel Corporation’s Wisco Natural Resources to increase Ferrominera's iron ore production capacity to 18 million tonnes by the end of this year including construction of a second pellet line. Also contained in the agreement are seven new 100 tonne mining trucks, as well as the repair and supply of other mining and drilling equipment.

The second agreement for USD 112 million is aimed at expanding the Puerto de Palua in San Felix in Bolivar state, as well as improving rails, chutes and elevators at the port facility.

The third agreement includes USD 161 million program by China's Communications Construction Company to dredge a navigation canal in the Orinoco River to accommodate larger ships.

_{(Sourced from: www.steelguru.com)}

Talks to tie Australian carbon plan to European trading scheme- Sept 7

It is reported that Australian coal miners could be trading carbon permits with Hungarian steelworks or Spanish oil refineries, under plans to merge aspects of the government's carbon pricing system with Europe's emissions trading scheme.

Preliminary talks began in Canberra with the visit of the European Commission President Mr Jose Manuel Barroso and the EU climate commissioner Ms Connie Hedegaard.

Both endorsed the government's plan for a market based mechanism to reduce Australia's greenhouse gas emissions, even though the carbon plan is scheduled to start with a fixed price in July 2012. It will not become a trading scheme until 2015, meaning that international trading in Australia is years away.

Mr Barroso said that "Our assessment is that the ETS has been very positive. So we welcome the decision taken by the government of Australia and certainly with other partners we will do everything to enlarge this market."

Australian Prime Minister Ms Julia Gillard said that Australia would push for a global carbon market. She said that "What the President has said reinforces the depth of the actions that have happened around the world and continue to happen around the world. The risk to us is we get left behind as the clean jobs, the green jobs, of the future are created."

Ms Hedegaard met the climate change minister Mr Greg Combet and the opposition climate action spokesman Mr Greg Hunt. She argued against the idea that heavy-polluting industry in Australia would be compelled to shift operations overseas to avoid a carbon price.

Ms Hedegaard said that "Independent institutions have analyzed time and again has there been any carbon leakage from Europe. No matter who you ask to analyze this, there is not you cannot say that due to our climate policies we have forced industry to move out."

She did not rule out one day applying punitive tariffs to countries that failed to regulate greenhouse gases but said she hoped a binding global agreement to cut emissions would be in place before that happened.

_{(Sourced from www.steelguru.com)}

Hyundai and Kia ink deal to make car infotainment system with Intel- Sept 6

It is reported that Hyundai Motor Co and its affiliate Kia Motors Corporation have signed a deal with Intel Corporation to develop an enhanced in vehicle infotainment platform system.

The memorandum of understanding reached in Seoul calls for the joint development of a platform that can allow users to receive entertainment content, as well as location based and social network services in their cars.

_{(Sourced from www.steelguru.com)}

Magna Unit Acquires Aluminum Automotive Foundry- Sept 05

Cosma International buys Grenville Castings in a bid to be a global casting supplier

Cosma International, an Ontario company that manufactures a range of automotive systems, components, assemblies, and modules, has purchased Grenville Castings in order to expand its portfolio to include structural aluminum castings. Grenville, of Perth , Ont., is a low-pressure casting and permanent mold foundry that produces complex automotive components, including thin-wall and hollow-core castings.

The financial details of the purchase have not been revealed.

According to its announcement, Cosma's acquisition of Grenville Castings is part of a strategy to become a global manufacturer of aluminum structural castings in all major geographic markets. It also supports Cosma's global launch of an automotive chassis program, scheduled to start production in 2014.

"This acquisition further enables Cosma to support our customers with lightweight solutions through the latest technologies and proven manufacturing excellence. Grenville's expertise in the area of structural castings enhances our already diverse range of metalforming solutions," stated the company’s president, Horst Prelog.

Cosma is an operating unit of Magna International Inc., a Tier One automotive supplier. Cosma employs processes like hydroforming, stamping, and roll-forming to produce metal body systems, complete vehicle frames, chassis systems, and body-in-white systems, among other products. It has . has 47 manufacturing plants and 25 product development centers worldwide.

Yusco cuts stainless steel prices for September- Sept 2

Taiwan’s Yieh United Steel Corp. (Yusco) announced the list prices for September delivery on August 29th.

The company decided to cut the domestic prices of 300 series hot rolled and cold rolled stainless steel by NT$3,500/ton and NT$3,000/ton respectively.

Besides, Yusco cut the export prices of 300 series stainless steel products by US$80~US$100/ton averagely.

However, it remained the price of 400 series stainless steel products unchanged for export and domestic markets.

Taiwanese steel pipe mills hike prices for September- Sept 2

It’s reported that Taiwanese steel pipe mills announced to hike the list prices for September yesterday.

Steel pipe mills decided to increase the list prices of small-diameter black steel pipes by NT$500/ton and to raise the prices of galvanized steel pipes by NT$600/ton, drive by the price hike announced by Chung Hung Steel, the major upstream mill.

It’s known that Chung Hung Steel announced on last Friday to increase the list prices of hot rolled steel, cold rolled steel and galvanized steel by NT$450/ton, NT$450~US$650/ton and NT$800/ton respectively.

Taiwanese steel pipe dealers said that they decided to raise the prices to compensate the loss in August and to reflect the rising raw material prices.

TATA Steel Thailand suspends operations of mini blast furnace- Sept 1

The Nation reported that TATA Steel (Thailand) Plc has temporarily suspended the operations of its mini blast furnace, due to the skyrocketing price of natural iron, a major raw material.

TATA Steel said in a statement to the Stock Exchange of Thailand that the temporary stoppage of mini blast furnace operations at NTS Steel Group Plc, a company's subsidiary, from the end of August 2011 till March 2012, should not create a financial impact.

TATA said that "The main reason of closure is the consistently rising trend in international MBF raw material prices which entirely has no effect to the normal course of business of the company. During MBF closure period, NTS Steel Group will be continuously producing billet from electric arc furnace which use scrap as a raw material instead of hot metal from MBF. This will enable the company to remain as market leader for long products in Thailand."

It added that the company will closely monitor the trend of raw material prices and the changes in the market environment and will commence the operation at an appropriate time.

_{(Sourced from: www.steelguru.com)}

Turkey annual auto sales may hit 1 million- Aug 30

Posting robust growth during the global economic crisis, Turkey’s automobile sales might reach 1 million by the end of this year.

Mr Jean Pierre Vieux GM of Peugeot Turkeysaid that “Turkey has this potential.” He said that “Turkey is now considered a European country adding that the country has not been affected by the global economic crisis. Turkey has overcome the economic problems of the crisis.”

Mr Vieux said the automotive sector has gone downhill in almost all European countries while the Turkish automotive market grew to new peaks.

Assigned as the director of Peugeot North Europe & Eastern Europe operations starting in November, Mr Vieux said that “Turkey remains one of the top markets for Peugeot regarding the company’s growth strategies.”

_{(Sourced from: www.hurriyetdailynews.com)}

Rolls Royce wins two shipyard deals in UAE and Saudi- Aug 30

Rolls Royce the global power systems company said on Monday that it has won contracts to supply ship lifts to two shipyards in the Gulf region.

One of the orders will see a lift designed and installed at Hamriyah Free Zone shipyard in Sharjah for Damen Shipyards Sharjah. This installation, with a docking platform of 120 metres in length and a width of 26.5 metres will be the sixth Rolls-Royce Syncrolift installed in the UAE and it will be operational by the end of 2012.

The second contract, awarded by Zamil Offshore Services, involves the installation of a ship lift with a platform 102 metres long and 32 metres wide at a new shipyard, which is being built in King Abdul Aziz port, Dammam, Saudi Arabia.

Zamil Offshore already operate one Rolls-Royce ship lift and this order will bring the total number of systems installed in Saudi Arabia to five.

Commissioning of the Syncrolift is planned for 2013, Rolls-Royce added in the statement. It did not give a value to either contract.

Mr Ravi K GM Marine - Middle East of Rolls-Royce said that "The investments mean that these two new Middle East shipyards will be able to build and repair ships more efficiently, further enhancing their position within the global marine industry."

_{(Sourced from www.arabianbusiness.com)}

Turkey annual auto sales may hit 1 million- Aug 29

Posting robust growth during the global economic crisis, Turkey’s automobile sales might reach 1 million by the end of this year.

Mr Jean Pierre Vieux GM of Peugeot Turkeysaid that “Turkey has this potential.” He said that “Turkey is now considered a European country adding that the country has not been affected by the global economic crisis. Turkey has overcome the economic problems of the crisis.”

Mr Vieux said the automotive sector has gone downhill in almost all European countries while the Turkish automotive market grew to new peaks.

Assigned as the director of Peugeot North Europe & Eastern Europe operations starting in November, Mr Vieux said that “Turkey remains one of the top markets for Peugeot regarding the company’s growth strategies.”


_{(Sourced from: www.steelguru.com)}

Sumitomo Metal unit to set up auto steel service center in Tohoku- Aug 26

SSC Co, a steel processing firm partly owned by Sumitomo Metal Industries Ltd and Sumitomo Corp said that it will build a plant in Iwate Prefecture, in a region that has become a new hub for the automotive industry.

Its new plant, the company's third, is scheduled to open next June in the city of Oshu, in Iwate. It will be able to process 7,000 tonnes a month of coil steel from Sumitomo Metal and other steelmakers.

SSC is based in Aichi Prefecture. SSC is 51% owned by Kanpoh Steel Co. of Osaka. Sumitomo Metal holds a 19% stake, while trading house Sumitomo and Sumikin Bussan Corp each own 15%.

The Tohoku region has already seen production added by the Toyota Motor Corp group. In one move, Toyota subsidiary Central Motor Co. has started up a factory in Miyagi Prefecture.

_{(Sourced from: www.steelguru.com)}

TATA Steel free to market new ultra high strength automotive steel- Aug 25

A patent ruling has provided TATA Steel with a breakthrough in its plans to bring to market a new press hardened zinc coated boron steel sheet, called ZnX®.‬‪ which is suitable for hot forming.

The Board of Appeal of the European Patent Office in Munich on August 18 revoked a patent that relates to the hot forming of zinc coated boron steel and that TATA Steel, among others, had contested.

In order to produce safe, green vehicles, automotive manufacturers require ultra high strength steels that allow them to develop lightweight designs. There is consequently a growing trend towards the use of press hardened steels in automotive applications. Far and away the predominant process in this area is “direct” hot forming, where a blank (or sheet) of steel is heated and subsequently pressed and quenched, resulting in ultra strong components.‬‪

At present only uncoated and aluminized sheet steels are suitable for direct hot forming. However, TATA Steel is developing an innovative new zinc coated boron steel product, ZnX®, which offers the same ultra high strength benefits, with the added advantage of active corrosion protection.‬‪

Mr Jaap Piso TATA Steel’s Automotive Sales & Marketing Director said “This ruling is a milestone as it frees automotive customers to work with us on the use of ZnX®. Our aim is to be able to provide them with a new product that possesses the enhanced properties they want. Trials of ZnX® to date have proved extremely promising and we believe the product represents a significant step forward in our ambition to offer next-generation materials for car body engineering."

_{(Sourced from: www.steelguru.com)}

Australian steel sector turning towards iron ore for salvation- Aug 24

Brisbane Times reported that Australia's struggling steel sector is turning towards iron ore for salvation, with the nation's two biggest steel makers looking to increase their exposure to the commodity that once was little more than an ingredient in their steel production.

The move by OneSteel to buy more iron ore assets and almost double its export of the booming commodity came as BlueScope Steel revealed it might also make iron ore acquisitions in the future.

OneSteel's earnings from its iron ore business increased 57% in 2010, helping to keep the company in the black amid dismal returns from its steel division. With record high prices for iron ore tipped to continue until at least 2014, OneSteel will spend AUD 346 million buying South Australian iron ore assets from subsidiaries of WPG Resources.

The company will also spend AUD 200 million expanding its Whyalla port capacity from 7 million tonnes a year to 12 million, with a current export target of about 10 million tonnes a year. An export rate of 10 million tonnes would make OneSteel one of Australia's more significant iron ore exporters, and OneSteel boss Mr Geoff Plummer challenged investors to update their perceptions of his company.

He said that "One of the challenges we have is many people's view of OneSteel is out of date. When OneSteel started it was a pure play, domestic, long product steel organization and that is now out of date. With 10 million tonnes, we are certainly significant as a second tier player. Many people are aspiring to build iron ore businesses of that scale."

While BHP Billiton and Rio Tinto export hundreds of millions of tonnes of iron ore each year, market darling Atlas Iron exports about 6 million tonnes a year. OneSteel's iron ore exposure has long been seen as one of its strengths in contrast to rival BlueScope, which is a purer steel play.

Amid a big corporate restructure yesterday, BlueScope CEO Mr Paul O'Malley said that his company would continue to look for iron ore opportunities. He added that "The most important thing for us has been to turn around this business in Australia. We now have a plan and at some point in the future that may involve adding some iron ore capability."

Moves by steel makers to increase their exposure to iron ore are ironic, as the high prices for iron ore as an ingredient for steel making has been one of several factors crippling the steel sector in recent times.

But Morningstar analyst Mr Mathew Hodge said inflated asset prices and high capital costs in the iron ore sector might prevent a cash strapped company such as BlueScope making such a play. He added that "It's going to be very hard for them to buy something now. Asset prices are high and capital costs are just going up."

_{(Sourced from www.steelguru.com)}

Turkey purchases scrap from US and Russia- Aug 23

It is reported that Turkish steel mills have continued to purchase scrap from United States and Russia.

At present, the country purchased 20,000 tonnes of HMS 80:20 and 15,000 tonnes of shredded scrap from the US with prices of USD 469 per tonne C&F and USD 474 per tonne C&F respectively.

At the same time, Turkey bought scrap from Baltic Sea, including 15,000 tonnes of shredded scrap and 25,000 tonnes of A3 scrap. The deal prices are at USD 469 per tonne C&F.

Meanwhile, it’s known that the US offered the scrap quoted at USD 475 per tonne C&F to Turkey currently.

_{(Sourced from: www.steelguru.com)}

Bangladesh and India shaping South Asia Power Grid- Aug 22

It is reported that Bangladesh and India are working together to draw the contours of the proposed South Asia Power Grid, even as the two countries are set to strengthen bilateral cooperation in the energy sector during Indian prime minister Mr Manmohan Singh's visit to Bangladesh on Sep 6 to 7.

The power ministry of the Indian government informed the country's parliament that Delhi and Dhaka were preparing the draft concept papers for the proposed regional power trading regime.

Mr KC Venugopal, India's state minister for power told Lok Sabha that the Lower House of India's bicameral Parliament, that India was preparing two draft concept papers on the proposed South Asia Power Grid.

He said that the first concept paper would focus on framework for planning cross border transmission links and associated system strengthening through joint system studies, methodology for implementation of trans-country transmission infrastructure including financing arrangements, ownership and security of assets.

Mr Venugopal further said that the second concept paper being prepared by New Delhi would focus on operation of stable and secure SAARC coordinated scheduling and settlement procedures for long-term and short term cross-border electricity exchange and trade.

A South Asia Power Grid has since long been in discussion among the government agencies, corporate houses and independent experts. However, it was in the second meeting of the SAARC Expert Group on Electricity at Udaipur in Indian state of Rajasthan on January 18 this year, Bangladesh and India were entrusted with the task of preparing the concept papers.

_{(Sourced from: www.steelguru.com)}

Tata Steel warns uncertain outlook for the global economy- Aug 19

Tata Steel, the largest steelmaker in India said it warned the uncertain outlook for the global economy in the Q3 and Q4.

According to the official data, the sales of house building and automobile have slowed down and the steel consumption in Indian domestic market has dropped.

Moreover, the steel consumption has been forecasted to drop due to worries on the US debt credit and the Europe ’s debt crisis.

Thus, Tata Steel has worries the slowdown of global economy even though ArcelorMittal, the world’s largest steelmaker said earlier that Europe ’s steel demand would turn better in the period of the Q3 and Q4.

US steel mills may raise steel sheet prices further- Aug 19

It’s reported that the US steel mills might raise the steel sheet prices further by US$60/short in the end of this week or next week, according to market participant.

In fact, the US steel mills just announced to increase the steel sheet prices by US$60/short ton last week; however, the price seems unfavorable to buyers.

Nevertheless, traders said that rumor of the prices hike was to activate buyers to purchase and push up the spot prices.

South Korean auto industry productivity outpaces US and Japan- Aug 18

It is reported that labour productivity in South Korea's automobile industry has grown at a faster pace than that of the United States and Japan over the past decade.

The report by the Korea Productivity Center showed that domestic productivity rising 6.3% in the 2001 to 2010 period, higher than the 5.5% and 4% gains tallied for the other two countries. Labor productivity is measured by dividing output by labor input during a given period of time.

During the time, the auto industry's labor productivity averaged USD 55,750 as compared to USD 98,426 in the United States and USD 82,305 in Japan.

The report, meanwhile, showed that labor productivity at Hyundai Motor Co averaged USD 148,000. This is higher than USD 147,000 tallied for Japan's Toyota Motor Co. The number for Kia Motor Corporation, Hyundai sister company, stood at around USD 119,000.

The report added that the percentage of tangible assets set aside to promote research and development by Hyundai and Kia reached 13.2% and 12.4%, respectively, in the 10 year period. This is higher than 7.6% tallied for Toyota.

_{(Sourced from: www.steelguru.com)}

Global steel industry faces challenging conditions- Aug 17

Reuters reported that steelmaking is undergoing a crisis not only in Brazil , but around the world as producers grapple with overcapacity, poor demand from some important buyers and economic weakness in the United States and Europe .

In Brazil , mills have been struggling to raise prices amid strong demand for cheaper steel produced by countries such as China and Turkey . The strength of Brazil ’s currency, the real, has not helped. Imported cars accounted for a fifth of sales this year and local demand for imported steel keeps swelling.

Brazilian steel mills are going through a peculiar and worrying moment. Mining iron ore is making more money for them than producing slabs and rods. And the situation might persist for quite a while, causing more stress for investors, who have dumped shares in the sector this year.

With little sign of a let-up in the currency's strength, steelmaking companies will likely have to get used to the more challenging conditions.

A 49% rally in Brazil 's currency since the start of 2009 has drawn cheap steel into the country like a magnet, forcing local mills to slash prices to retain market share. As competition mounts and international prices decline, price premiums relative to imports will disappear. The increasing globalization of steel markets is likely to make Brazil more vulnerable to imports in the future. Unlike Brazil , steel in Mexico , Argentina and Colombia trades in line with international prices.

Mr Daniella Maia, an analyst with Rio de Janeiro based Ativa Corretora, said that "If prices for steel fall in the domestic market, I don't see how shares will avert the same fate."

Steel has been the worst performing sector on Brazil 's stock exchange this year as the main Bovespa slumped about 25%. The shares of Usiminas have shed 41% in 2011. Gerdau has tumbled 38%. CSN has plunged 36%.

Weak results in the first half of this year underlined the sector's problems, despite an improvement in operational profit margins as some cost pressures, such as high raw materials prices, eased.

_{(Sourced from www.reuters.com)}

Bharat Forge eying operation in Brazil and Asian countries- Aug 16

The world's largest forgings company by capacity, Bharat Forge, will enter the South American market via Brazil and later target the rest of Asia .

Currently, Bharat Forge serves its customers in Brazil from India since its US subsidiary has higher costs.

On the focus on South America, specifically Brazil , Mr BN Kalyani CMD of Bharat Forge said that "There are two areas where our growth has not been so good. South America, specifically Brazil , is a very important region for overall growth especially the automotive. Brazil is important also because of NAFTA (the free trade agreement between the US , Canada and Mexico ) and our customers want us there. The first step is to gain customers there then get long term commitments and then do some local manufacture although that is in the long term. That will position us in three of the four BRIC countries."

Mr Kalyani noted that "The other area is the rest of Asia , where we need a presence. We are strong in India and China . We believe that in the next five seven years, India will have FTAs (free trade agreements) with all countries of Asia so we need to be in the region."

The strategy of a strong non automotive focus has begun to work for Bharat Forge with this sector expected to contribute 37% of the stand alone company's revenues this fiscal. Its long term goal is to have 40% of its revenues from the non automotive. Contributing to this sector is the INR 1885 crore, three 150 MW power project in Haldia being undertaken by its wholly owned EPC subsidiary.

Having reported its best ever quarter results, an upbeat Mr Kalyani said that "We have INR 150 crore cash after tax in just this quarter so there is no problem for investment."

Mr Kalyani said the outlook for the rest of the year remained excellent. "It is too early to say there is a global slowdown. Our global customers are not surprised at the downgrade of the US which remains the world's largest market. However, companies in Europe and the US may not be willing to risk new investment because lending institutions may not lend. This is an opportunity for emerging markets.”

_{(Sourced from: ET)}

Argentina and China in talks to build copper refinery- Aug 12

Market Watch reported that Argentina is in talks with Chinese investors to build USD 750 million copper refinery in the South American country.

Mr Jorge Mayoral mining secretary said that "We have discussed this issue with Chinese companies that produce cathode copper, that are copper consumers and are eager to have a this kind of commercial relationship with Argentina because they see us as a big player in the copper market in the future."

Mr Mayoral declined to identify the companies or provide a timeline. The project would involve building a plant to process copper concentrates into 210,000 tonnes of cathode copper and 700,000 tonnes of sulfuric acid a year.

Currently, Argentina only has one significant copper mine, Bajo de la Alumbrera with annual production capacity of 150,000 tonnes of copper and 400,000 ounces of gold in concentrate. Xstrata PLCowns 50% of the mine, while Goldcorp has a 37.5% stake and Canada's Yamana Gold Inc has 12.5%. Those companies also own the nearby Agua Rica copper gold molybdenum mine project.

Argentina currently ships copper concentrates abroad but the government is pushing for more domestic processing as copper production rises. Based on recent exploration and discoveries, production will grow 10 fold in the coming years.

The world's biggest copper producer is Chile's state owned Codelco, which produced around 1.69 million metric tons last year from the other side of the Andes Mountains which separate Argentina and Chile.

According to consulting firm Deloitte, Chinese investment is flooding into Latin America, reaching USD 15.6 billion during the 12 month period through the end of May, nearly three times greater than the year earlier period. Of that amount, Brazil received about 60% and Argentina close to 40%.

During the last three years, more than 70% of China's investment in the region went to energy and minerals but farming has become increasingly important and the Chinese have even moved into banking.

_{(Sourced from: www.steelguru.com)}

South Korea hikes electricity fees in ferro-alloy industry by 6%- Aug 11

TEX reported that the electricity fees in South Korea have been raised from August 1st 2011. The fee to be consumed in the ferroalloy industry has raised by 6.34% per 1 KWH. The fee was so far KRW 72.90 per 1 KWH but new fee has come up to KRW 77.50 per 1 KWH.

As regards electricity fees, South Korea has referred to the index for energy and a further raise of about 10% is anticipated. This raise of electricity fee to be applied to ferroalloy is estimated to increase the cost for production of silicomanganese by USD 20 per tonne and that for high carbon ferromanganese by a little less than USD 10 per tonne.

Already in China , the electricity fees for industrial use have been raised by CNY 0.0167 per 1 KWH on the average from June 1st 2011 in 15 provinces. The objective districts for this raise of electricity fee are Shanxi Province , Qinghai Province, Gansu Province , Jiangxi Province, Hainan Province , Shaanxi Province, Shandong Province , Hunan Province, Chongqing Municipality , Anhui Province, Henan Province , Hubei Province, Sichuan Province , Heibei Province and Guizhou Province .

Also, Orissa State of India has raised electricity fees by INR 3 to INR 4 per 1 KWH from April 2011, having caused to increase the cost for production of silicomanganese by USD 40 per tonne. Each state of India has held the tariff concerning electricity fees, and a rate and a time to raise electricity fees are decided by each state. Therefore, there is a time lag and some state has recently decided to raise electricity fees.

_{(Sourced from: TEX Report Limited)}

Indonesian coal policy taking toll on Indian power firms- Aug 10

The new Indonesian coal policy is taking its toll on Indian power companies.

As per report, TATA Power, which is executing the Mundra ultra mega power plant, has expressed concerns over the viability of the 4,000 MW project under the present circumstances.

Earlier, Reliance Power had raised similar issues for its Krishnapatnam UMPP in Andhra Pradesh.

According to officials close to the development, the ministry has called a meeting of all buyers and Reliance Power to address issues related to importing coal price for the Krishnapatnam UMPP.

Both 4,000 MW UMPPs are based on imported coal and the companies had made agreements with Indonesian authorities. But, recently, the Indonesian government changed its policy and decided to benchmark its coal prices to international indices (current market pricing). The new rule will apply to all the contracts, retrospectively.

In a letter to the power ministry, TATA Power said that "Despite our efforts to complete the project (Mundra UMPP) well within the targets and cost, circumstances have arisen which could result in the project becoming unviable."

It added that "Most developers of power projects in India including TATA Power are planning to source its long term coal requirements from Indonesia. The new regulation by the Indonesian government imply that the long term contracts which were based on discounts and or flat pricing will no longer be honored and would result in steep escalation in prices, leading to significant alteration of the viability of imported coal based projects."

When contacted, TATA Power in a statement said that "Mundra is one of the first ultra mega projects of the country that has progressed faster than schedule. Mundra UMPP had made all contractual preparations including linkages through linked mines abroad for imported coal, linked ports at both ends & shipping for reliability. Recently, Indonesia like other coal exporting countries made amendments in conditions related to exports of coal from their shores. We look forward to a discussion on how the issue of change in law in Indonesia regarding imported coal would be dealt with."

The company, through its subsidiary Coastal Gujarat Power Limited, had won the Mundra UMPP at a tariff based bidding of around INR 2.265 and will be investing about INR 17,000 crore in the project. The main buyers of power will be Punjab, Gujarat and Haryana among others.

_{(Sourced from www.steelguru.com)}

Geely Auto to invest USD 2 billion in Indonesia- Aug 9

China Knowledge reported that Chinese automaker Geely Automobile Holdings Ltd intends to pour USD 2 billion in Indonesia to tap the country strong consumer demand for cars.

Mr Budi Pramono CEO of the Indonesian unit of Geely Auto said that the Chinese automaker may make Indonesia , the largest economy in Southeast Asia and the production base for exports to other Southeast Asian countries, Australia and New Zealand .

Geely Auto plans to build a car plant in Cikarang near capital Jakarta to have an annual production capacity of 30,000 units by 2014.

The Chinese automaker currently has 14 auto dealers in Indonesia and aims to sell 2,450 cars in 2011.

_{(Sourced from: China Knowledge)}

US automakers warn of fragile demand- Aug 5

It is reported that US auto sales ticked higher in July 2011, but the industry's top salesmen cautioned the prospect for a second half recovery

remained clouded with consumers hurting in a weak economy. Mr Reid Bigland, Chrysler's US sales chief, called the market tougher than a cheap steak, while his equivalent at General Motors Co, Mr Don Johnson,

said consumer confidence is pretty fragile right now because of everything that's happened in the past few months. Analysts said that high unemployment and concern about the strength of the US recovery could force automakers to offer consumers more generous

incentives that sap profits. GM's US sales in July 2011 rose by about 8%, while those at Ford Motor Co and Fiat controlled Chrysler increased 9% and 20%, respectively.

Japanese automakers Toyota Motor Corporation and Honda Motor Co, both hurt by the March earthquake in Japan, saw sales fall more than 20%.

July US sales for Nissan Motor Co and Hyundai Motor Co rose 3% and 10%, respectively. Sales at Toyota and Honda fell 23% and 28%, respectively.

Industry sales in July finished up only about 1% as the weak economy weighed on consumers, but the debate in Washington over the debt ceiling

added a note of uncertainty. The sales rate in July on an annual basis was 12.23 million vehicles, above the 11.8 million that was expected by 39

economists polled by Reuters. That still trails the 13 million plus rate from earlier this year, but many industry executives said it would mark the

beginning of a recovery from a bottom in June, when the sales rate was 11.45 million. At the start of the year, analysts had forecast a bounce back in 2011 sales to between 13 million and 15 million vehicles, but the Japanese earthquake which led to production cuts and the weak economy changed that picture.Consumer nervousness was reflected in the Commerce Department's announcement that US consumer spending unexpectedly fell in June to post the first decline in two years. The US housing market's strength is critical for the more profitable full size pickup truck sales, but Ford US sales analyst Mr George Pipas said a recovery is more a matter of if than when.

_{(Sourced from www.steelguru.com)}

Brazilian steelmakers and miners applaud new industry policy- Aug 4

Representatives of Brazil's steel and mining sectors said that Brazil's new industrial policy, announced by President Ms Dilma Rousseff, is a welcome start to boosting the country's competitiveness, but more measures may still be needed to achieve this goal in a globalized economy.

Mr Wilson Brumer CEO of steelmaker Usinas Siderurgicas de Minas Gerais or Usiminas said that mechanisms to ward off unfair trade practices and dumping still need to become more agile to deter the influx of imports attracted by Brazil's strong real.

Mr Brumer of Usiminas said that “Brazil's new industrial policy is praiseworthy but trade defense mechanisms still need to be further speeded up to bring them in line with those of other countries including the US, where alleged unfair trade practices can be investigated in three months. With Brazil's new policy, trade investigation times will fall from more than one year at present to a maximum of 10 months. It's a recognition that something needs to be done to boost competiveness without resorting to protectionism. Imports of goods containing steel may fall as a result.”

Mr Brumer said that steel imports can this year now be expected to be halved to about 3 million tonnes.

Mr Paulo Camillo Penna, president of Brazilian Mining Institute Ibram noted with great satisfaction the payroll tax relief offered under the new policy to Brazilian companies.

Mr Penna said that “The new industrial policy is a courageous step forward which gives industry some tax relief and should be followed by other measures to increase competivity. The new policy is set to curb triangular trade practices involving various countries, which is a positive point, and broadening the scope of development bank BNDES's credits will help Brazilian industry to grow.”

According to Ibram, Brazil's mining sector still bears a tax burden among the highest in the world and discussion continues in government circles on a possible increase in Brazilian mine royalties charges.

Brazil's steel industry is one of the sectors that have suffered the most from high import levels. Last year, steel imports soared to around 5.8 million tonnes, taking well over 20% of the market, due to the strong real and also to import tax incentives operated in some Brazilian states and not others. This so called fiscal war between Brazilian states should now be combated by the new industrial policy, which introduces Buy Brazil incentives.

(Sourced from: www.steelguru.com)

TATA Steel Europe invests GBP 1 million to tackle dust emissions- Aug 3

It is reported that a major landscaping scheme that will slash dust emissions at TATA Steel's Scunthorpe works has been announced.

The GBP 1 million investment by TATA Steel Europe will see 3,500 trees including oak, maple, ash and willow, planted across the 2,000 acre site.

At the same time, a seven and a half acre wildflower grassland area will be created and almost four miles of earth embankments built. The trees and the grassland will provide new wildlife habitat, but are also designed to help cut down dust emissions from the site, improving life for workers and people living nearby.

The scheme is being backed by the Environment Agency, which is contributing GBP 20,000 towards the work, along with the Humber Industry Nature and Conservation Association, which is acting as consultants.

Mr John Dronfield, the agency's pollution and prevention officer, said that "We are helping to fund this scheme as we believe it will help deliver significant environmental improvements for local people."

The project will focus on the north and north eastern areas of the Scunthorpe steelworks and incorporate the coal handling and the ore blending plants and former Redbourn works. If planning approval is granted, it is hoped to complete the groundwork in time for the tree planting season over the winter.

Ms Kat Liddle, the environment manager for TATA Steel long products, said that "These planned improvements will reduce the amount of dust being blown around and off our site, while providing additional habitat for wildlife. The embankments will act as windbreaks, while the trees will trap dust. We will focus on large open areas where we have stockpiles of loose raw materials, like iron ore and coal, as well as un tarmaced stocking areas."

He added that "We strive to find new ways of reducing our impact on the local environment and we believe this major landscaping scheme will significantly reduce dust levels around and off the steelworks, improving the environment for our workers and our neighbors."

The landscaping exercise is the latest project being developed by TATA Steel to reduce its impact on the local environment. Two fog cannons which spray a mist like fog have been brought into operation at the basic oxygen steel making plant to cut down dust emissions in the slag bay area.

TATA Steel bosses have also invested in a GBP 9 million state of the art environmental system at the BOS plant. It collects and stores the dust before being turned into oxide briquettes which are recycled in the steel making process.

_{(Sourced from www.steelguru.com)}

Global manganese demand driven by Asia Pacific region- Aug 3

Driven by the revival of the infrastructure industry, the increased demand for steel worldwide is driving the global manganese market as well. The demand is exceptionally high in the developing nations, with the Asia Pacific region accounting for the highest consumption of manganese. Analysts are of the opinion that the region’s demand is set to grow at 7.5% to 8% annually.

Other than the steel industry, which is the traditional user of manganese, the battery industry is also driving the manganese market. Lithium manganese batteries are expected to be the answer for the need for high capacity and low cost energy storage devices.

Both factors are essential for the success of emerging technologies in areas such as renewable energy, consumer electronics, and electric vehicles.

Mr Jonathan Lee battery technology and materials analyst for Byron Capital Markets said that China produced 1.4 million tonnes of the metal in 2010 and non Chinese production of electrolytic manganese was only about 34,000 tonnes. He added that "With electric vehicles, our estimates are by 2020, we see a need for 80,000 to 90,000 tonnes of manganese for electric vehicles."

As manganese battery technology improves, the efficiency of electric vehicles is expected to improve as well. This will naturally increase the demand for both. Also, the potential of manganese based batteries in mobile technology is very high and that could lead to a much higher demand for manganese.

Nations have now turned their attention to the ocean floors and the Atlantic is being actively explored for minefields. Deposits of precious and rare metals have reportedly been discovered at a depth of about 4 kilometers on the ocean floor. The discoveries are naturally creating a great deal of interest among geologists.

Mr Vladimir Kryukov director of Russia's Polar Marine Geological Prospecting Expedition said that "China has already made a claim to this end, whereas France, Germany and England are actively engaged in searching for these ores that rank among such promising natural resources as manganese and cobalt. Russia, by the way, owns and explores a manganese field in the Pacific Ocean. Now we are preparing our bid to the UN concerning cobalt deposits."

The 20% export duty imposed by China electrolytic manganese has been creating more concerns than relief for Chinese authorities. China has been collecting the export duty January 2008 but recent reports indicate that certain quantities of the metal seem to be evading this duty and are being sold in Asian and European markets.

This is creating a price pressure on the formally exported electrolytic manganese that has incorporated the export duty in its prices.

Another issue dogging China's electrolytic manganese sector is the fact that China's export records do not match the import records of Japan and South Korea. This mysterious phenomenon is causing Chinese exporters a great deal of anxiety since it substantiates the suspicion that large quantities of Chinese electrolytic manganese are successfully evading the export duty and taking advantage of the price difference.

_{(Sourced from Critical Strategic Metals)}

US auto suppliers face higher costs and economic slowdown- Aug 2

Reuters reported that US based auto suppliers are contending with higher commodity costs and a slowdown in the global economy that will pressure them to wring out more efficiencies and remain lean through the rest of the year.

Many automotive suppliers, including BorgWarner Inc, Federal Mogul Corp and Goodyear Tire & Rubber posted second quarter results that surpassed estimates. BorgWarner shares shot up as much as 12.3%, enjoying their biggest jump in more than two years.

But companies also noted that the expected economic recovery has not yet taken hold. Some tempered their outlook for the second half of the year, echoing sentiments from other suppliers and automakers Ford Motor Co and Chrysler Group LLC earlier this week.

Earlier this week, Ford said full year auto sales in the United States would fall toward the lower end of its 13 million to 13.5 million range, including big pickup trucks.

Mr Jose Maria Alapont CEO of Federal Mogul said that "When we look at the global market for the quarter, it is clear for the first time in a couple of quarters there has been a global environment slowdown."

Dana Holding Corporation shares were down 4 cents at USD 17.26 after analysts said they were disappointed with the company's second quarter margins and outlook for the rest of the year.

Goodyear Tire & Rubber said higher raw material costs would make it tough to maintain profit margins in its tire business in North America in the second half of the year.

Goodyear sees those costs rising more than 30% for the rest of the year. BorgWarner reiterated that raw material costs would cost the company between USD 35 million and USD 40 million more in 2011 than in 2010.

Executives said in interviews and on analyst calls that being nimble will allow suppliers to withstand the economic storms. Federal Mogul, for example, has many temporary workers, which allows the company to scale back its headcount if the market goes sour.

Mr Alapont said that "If you push globalization, but with no efficiency, you're going to see challenges."

Federal Mogul posted net income of 64 cents per share, beating the average analyst estimate of 58 cents per share.

Dana reported an adjusted profit of 45 cents per share, above the 36 cents per share analysts on average had expected. Goodyear reported an adjusted profit of 65 cents per share, blowing past Wall Street estimates of 27 cents. BorgWarner's profit of USD 1.12 per share beat out the average expectation of 99 cents per share.

_{(Sourced from: www.steelguru.com)}

Growth rate of auto industry in China to fall in H2- Aug 1

It is reported that high growth rate during the first six months of 2011 cast shadow on the auto industry for the second half year.

The coming months are expected to witness negative growth during the traditional off-peak seasons from Q2 to Q3, but the sales volume may rally in Q4 due to seasonal factors. The growth rate of sales volume is predicted to range from 5% to 10% in 2011. The whole industry would not present big investment opportunities without triggering drivers when the industry growth rate slumped to below 10%.

Against the backdrop of sluggishness, the auto exports may turn out to be a highlight when entering the second half year. Since the export volume is relatively less with great potential to boost, the growth rate of domestic sales volume may lag far behind that of exports.

The government policy recently shows less support for the auto industry by eliminating the preferential purchase tax and subsidies for changing the old for the new. Some cities launched vehicle purchase bans accompanied by high hovering fuel prices and the increase of parking fees which resulted in the costs surging significantly and then the sales volume was hit a great blow.

On the other hand, the wide spread of clean energy vehicles is difficult to be achieved, owning to the high cost and backward charging facilities in the short run, although the policy is still propped up by the government.

_{(Sourced from www.sina.com.cn)}

Australia plans to build ties with Indian automotive industry- July 29

Australia is exploring possibilities of building better ties between its world class firms and rapidly growing Indian automotive industries to create new export opportunities and helps secure the ongoing strength of the multi billion dollar auto industries there.

Australian Minister for Innovation, Industry, Science and Research Mr Kim Carr who is on a three day maiden visit to India told media persons that his country was looking to build closer links between their innovative automotive companies and the Indian market.

Mr Carr said that "With the help of the Australian government's 'a New car plan for a Greener Future', our auto industry has not only survived the global economic downturn but is transforming and becoming a world leader in new technology.”

Mr Carr added that "This expertise makes our companies attractive partners for international companies including India.”

Mr Carr said that Indian companies can especially benefit from new innovations in aerospace industries (in which Mahindra Group is keen) also without any Intellectual Property rights issues especially in building aero planes and turbo propellers partnering with Australian industries to produce and supply the world market.

The Indian automotive and other industries using innovations done in Australia for scaling up and manufacturing parts can benefit with its newly introduced R&D Tax Credit Legislation.

The minister further said the Indian automotive industry wanted to develop more vehicle design, manufacturing processes and low emission technologies and Australia is well placed to provide these innovative products.

_{(Sourced from: www.steelguru.com)}

SAIL plans JVs for green power- July 28

It is reported that Steel Authority of India Limited is exploring options to float joint ventures with ‘green' power producers to meet its renewable energy commitment.

Sources said that SAIL not only proposes to buy green power from renewable producers, but is also open for joint ventures for producing green energy.

SAIL produces about 600 MW yearly through its conventional captive units. As part of their renewable purchase obligation, the state utilities and captive producers are expected to source about 5% of their requirement from green sources.

Such commitment, as specified by the respective state energy regulatory bodies, would increase one per cent yearly till it reaches 10%.

At current level, SAIL would have to source almost 30 MW a year from renewables and this would increase to up to 60 MW over next five years.

Sources said that “Since our requirement is substantial, we are open to form joint ventures with companies in wind, solar, bio mass and even small hydro projects.”

The company has invited expression of interest from both domestic and global green power producing firms and expects to firm up its plans by the year end.

SAIL would be joining other public sector entities such as ONGC, BHEL, GAIL, Indian Oil Corporation and NTPC which are already in the fray to set their own green power capacities.

As a part of National Action Plan on Climate Change the Government is targeting 20,000 MW of solar power by 2022 and 2,000 MW equivalent off-grid solar applications.

_{(Sourced from: www.steelguru.com)}

Nissan Motor to shift regional headquarters to Thailand- July 27

German automotive major Daimler is planning to launch its compact car in India by 2012-2013. Meanwhile, during the present year, the company is planning to sell over 7,000 luxury cars in India under its brand Mercedes Benz and 140 buses. The company is betting big on tier-III and rural parts of the country.

Mr Peter Honegg MD of Mercedes Benz India Pvt Ltd and CEO said that “We will launch the compact car by mid next year in Europe and in India it will be launched in 2 to 3 years. The company the car will be brought here as a completely knocked down unit.”

He said the compact car rolled out of Daimler’s plants in Germany and Hungary will be launched in Europe later this year.

According to Honegg, the company is expected to close the year with sales of over 7,000 cars and around 140 buses, up from 5,820 cars and around 90 buses sold in 2010.

Mr Honegg said that “The four major metros Delhi, Mumbai, Bangalore and Chennai contributed around 60 to 70% to sales which has now come down to 50% as the markets in tier III and IV cities are growing.”

To tap the potential the company is planning to open 15 new dealers every year mainly in tier II,III and IV cites and towns. At present the company has 30 selling points in the country.

_{(Sourced from: www.steelguru.com)}

Car maker Renault to invest more than $120 Million in Casting Plant- July 25

Renault, Boulogne-Billancourt , France , announced it will invest about $120.5 million in its Fonderie de Bretagne, Caudan , France , to make the facility more competitive and ensure its longevity.

According to a press release issued by the company, Renault has put about $55 million in the facility in the last three years and will make the additional $120.5 million investment over the next six years. The company said more than 400 jobs will be retained due to the investments.

Renault said the money will be used to install a new production line with a capacity of 40,000 metric tons per year to replace an existing line that currently accounts for 70% of its business. The new line also will give the company the ability to produce ductile iron castings, including chassis parts (stub axles and arms) and powertrain parts (crankshafts and differential casings).

“This investment project confirms Renault’s industrial anchor in France , consistent with [our]…industrial strategy,” said Gérard Leclercq, the company’s executive vice president of manufacturing and supply chain.

Renault said investments also will be made in improving safety and working conditions (roofs, heating, extraction and gantries), quality (test systems) and environmental preservation (soil, air and water protection). The company plans to begin a study phase for the new projects in 2012, followed by substantial investment in 2013 and startup of the new line in 2014. It expects the line to be up to full capacity by 2015.

Toyota struggles to boost iQ as Kia captures market soul- July 21

It is reported that the Kia Motors Corporation's Scion brand, created in 2003 to attract young buyers with quirky cars and low prices, is trying to revive flagging sales with the tiny iQ.

Scion is in need of a revival: Sales have fallen for four straight years, sliding 74% from a 2006 peak of 173,034. While deliveries of xB wagons, xD hatchbacks and tC coupes rose 27% in the first half, they totaled only 26,621, or less than half that of Kia Motors Corporation boxy Soul wagon at 54,987.

Ms Jessica Caldwell, an analyst with Edmunds.com, a Santa Monica, California based automotive pricing and data service, said that "Part of Scion’s problem is some others have cut into their market, and the Kia Soul would be the best example. In some ways, it's a better version of xB than Scion's."

Toyota, which sold more vehicles than any other automaker last year, relies on Scion to attract younger customers to dealerships that also sell the company’s namesake brand. The iQ, just 120.1 inches long, is two feet smaller than a Mini Cooper and may be the most efficient non hybrid car on the road when it goes on sale in early 2012. Scion's styling became more conventional when the xD replaced the original xA and the xB wagon was redesigned in 2007.

Ms Caldwell said that "The first xB was kind of funky and out there,” she said. With the redesign, they Camryed it, made it a bit mainstream. For El Paso, Texas, real estate agent Mr Rick Chumsae, who owns an original xB and an xA, the brand strayed from its roots. They both look a little funkier than what’s out there now, particularly the xB. In their quirkiness, they’re kind of timeless."

_{(Sourced from www.steelguru.com)}

Achates eyes Indian auto market with new engine- July 20

US based Achates Power already has over 800 patentable innovations in its kitty. Its mandate is simple: build better engines to meet the environmental challenges of the global transport industry.

At the heart of Achates Power's business is its two stroke opposed piston diesel engine which assures cleaner emissions in cars and commercial vehicles. Unlike conventional engines, this one does not have a cylinder head or valve train and its two pistons face each other. Interestingly, the two stroke OP was used in ships, tanks and locomotives decades ago.

Mr David M Johnson president and CEO of Achates Power told Business Line that “I think our technology enables a country like India to go more quickly to clean engines in vehicles because the economic pain will be reduced. While there are savings in the cost of the engine, the fuel savings are vastly greater.”

He said there was no question about the potential of this engine in markets like India or China as both eventually need to climb the emissions ladder. Typically, the biggest obstacle here is the economic challenge associated with the transition.

Mr Johnson said that “While these are important issues, I would argue that every single economy be it India, China or Brazil, will get to the same standards that we have today. This technology will ease that transition because it saves you money.”

Mr Johnson further said that “Our idea of a business plan is, rather than make the large investments ourselves, to work with those companies that already have those plants and license that technology to them. In the process, they can make better engines in their facilities and we are in partnership, as opposed to in competition, with them.”

Across the world, there are nearly 80 million units of capacity for engines and this gives Achates the opportunity to spread its footprint in the US, Europe, China or India. Any vehicle maker can use the crankshaft line, block line or pistons and deploy a whole bunch of infrastructure to make this engine.

(Sourced from: www.steelguru.com)

Saudi Steel Pipe net income amounts 21 million for Q2 2011- July 19

Gulf Base reported that the Saudi Steel Pipe Company generated a net income amounting to SAR 21.34 million for the Q2 of this year.

This is a decrease of 15.1% compared to the same period last year of SAR 25.15 million and an increase by 1.6% compared to SAR 21.01 million posted in the Q1 2011.

It said that gross profit for the second quarter amounted to SAR 29.74 million decreases of 9.8% compared to the same period last year of SAR 32.99 million. Operating profit for the Q2 amounted to SAR 21.17 million compared to the same period last year of SAR 25.25 million a decrease of 16.1%.

Net profit for the first 6 months of 2011 at SAR 42.35 million compared to the same period last year of SAR 45.18 million a decrease of 6.2%. Earnings per share for the first 6 months of 2011 at SAR 0.83 compared to same period of last year at SAR 0.89.

The gross profit for the first 6 months of 2011 at SAR 58.49 million compared to same period of last year at SAR 61.11 million decrease of 4.3%. Operating profit for the first 6 months of 2011 at SAR 42.21 million compared to the same period last year of SAR 45.19 million a decrease of 6.6%.

The statement said that net income for the Q2 and first 6 months of 2011 decrease compared to the same period of last year because of decrease in sales due to poor market demand particularly in oil pipes. Sales in the induction bending business sales for the first 6 months of 2011 at SAR 7 million has doubled compared to same period of last year at SAR 3 million only. For the new projects we expect to make an effect on our income on the last periods of this year.

_{(Sourced from www.steelguru.com)}

Vietnamese steelmakers scale back production as consumption falls- July 18

Vietnam News reported that the domestic steel industry is cutting back on production in a big way as it faces unsold stockpiles and struggles to increase exports because it is not competitive enough. Its problems are compounded by increasing imports of cheaper steel products.

The construction season is nearing its peak, but instead of increasing capacity, steel factories nation wide are scaling back production, leading to fiercer competition.

The Pomina Steel Mill is among the companies which have been functioning at 50% of its production capacity for a few months due to low demand.

The Viet Nam Steel Corporation (VNSteel) is facing a similar situation with sales down 50% in the last few months, forcing it to decrease production and prevent excessive stockpiles. Smaller companies in the domestic market have also been experiencing dull business.

According to the Viet Nam Steel Association, while leading steel corporations and companies have been cutting their capacities by as much as 50%, smaller firms in the field have been running at 30% to 40% of their designed capacities, while some have stopped production altogether.

The association says Viet Nam produced 2.21 million tonnes of steel in the first five months of the year, a year-on-year increase of 281,000 tonnes or 14%. Total consumption was estimated at 2.14 million tonnes, up 18% against the same period last year.

The country had about 320,000 tonnes of finished steel products in stock in May and 520,000 tonnes of steel billet (or scrap iron) for production in June. During the first six months of the year, over 3 million tonnes of steel products and materials were imported into the country.

The current stock of steel, including imports, could meet domestic market demand till the end of the third quarter of this year, the director of a steel production company said on condition of anonymity.

Officials from VNSteel and Pomina Steel both said the decrease in demand was because of low consumption which, in turn, was caused largely by prolonged inflation and increased interest rates. Decree 11 on cutting public investment was another factor in the low demand for steel products.

Meanwhile, the situation of excessive production was getting worse with a number of new projects with capacities of between 250,000 to 500,000 tonnes per year set to be put into operation this year. The total capacity of the new factories is expected to exceed 2 million tonnes a year.

Many companies have been trying to export their products to deal with the situation, but are facing challenges posed by policies as well as international competition.

Mr Do Duy Thai, general director of Pomina Steel, which has been exporting its products to Cambodia and Laos, said the export value was still modest, especially at this time. He said that to be able to export to Cambodia and Laos, the products had to be priced very competitively, which was a disadvantage for the Vietnamese steel industry.

_{(Sourced from: www.steelguru.com)}

TATA Motors to start work on South Africa plant- July 15

According to a report in newspaper citing a well placed government source reported that Indian automotive giant TATA Motors will start construction of a vehicle assembly plant in South Africa next week, giving the country's economy a huge boost.

Mr Debasis Roy TATA's spokesman in Dubai told the daily that "We're not giving out any details now, but it's been the planning for some time now to build an assembly plant in South Africa .”

Confirming the report, he said that TATA would announce details of its plan for South Africa shortly, though he refused to give any details on the size of the prospective investment.

He said that "We're very excited that it's got to the point that it's come to fruition. We're on the doorstep of a major milestone.”

The daily said the government source had indicated that a sod turning ceremony for the plant would take place on July 22, and that the plant at Rosslyn, an industrial area north of Pretoria , was likely to manufacture a commercial vehicle or bus for the local and African market.

_{(Sourced from ET)}

Turkish motor vehicle output up 8% in June- July 14


According to the monthly statistics released by the Turkish Automotive Manufacturers' Association, in June this year Turkey's motor vehicle output totaled 109,189 units increasing by 7.7% and up by 11.3% over the month of May.

In June, Turkey's passenger car output totaled 58,694 units up 7.4% its commercial vehicle production reached 50,495 units up 8.04% while tractor production amounted to 4,657 units up 65.5% all compared to June 2010.

Meanwhile in the H1 of this year, the country's total motor vehicle output amounted to 621,695 units up 13.6% passenger car output totaled 335,783 units while commercial vehicle production reached 285,912 units increasing respectively by 7% and 22% compared to the corresponding period of 2010.

(Sourced from: www.steelguru.com)

South Korean H1 2011 vehicle exports up by 30%- July 13

It is reported that South Korea's exports of vehicles hit a record high during the first half of 2011 amid improving consumer sentiment in major economies.

According to the data by Korea Customs Service, South Korea exported USD 19.1 billion worth of cars during the January to June 2011 period, up by 30.4% YoY. The number of vehicles shipped overseas also grew by 15.9% to 1.5 million.

_{(Sourced from: www.steelguru.com)}

350 TATA Nano booked in Nepal in 10 days- July 11

It is reported that Nano is poised to sweep Nepal with over 350 bookings in just 10 days since the world’s cheapest four wheeler was launched in the Himalayan republic June 26.

Sipradi Trading, the exclusive dealer of the TATA Group’s vehicles in Nepal, said that the majority of buyers almost 40% ordered the Nano Standard priced at NPR 798,000 in Nepal.

Though the Nano in Nepal costs almost five times as much as in India, thanks to whopping 240% taxes, it is still the cheapest car in Nepal with its nearest competitor, the Maruti 800 priced at about NPR 1.4 million.

The introductory price of the Nano remained valid for the 10 days of the first phase of booking. Now the Indian manufacturer will pore over the response there have been over 8,000 queries to firm up its strategy in Nepal as well as the final price.

Unlike in India, where the cost of the Nano varies from state to state, in Nepal, there is only one price for one model.

_{(Sourced from: www.steelguru.com)}

Brammo production gets underway in Europe- July 8

Brammo Inc, a global leader in the electric motorcycle industry, announced that production of its award winning motorcycles is now under way at the Flextronics production facility at Sarvar in Hungary.

The newest Brammo production line is capable of producing 660 motorcycles a month and will initially produce the Brammo Enertia and Enertia Plus for North American, European and Asian customers.

The Brammo production facility in Sarvar is almost certainly the most advanced electric motorcycle assembly line in the world and it sets new standards for quality and efficiency. Brammo's focus on designing for commercialization and quality ensures that its award winning motorcycles are extremely reliable and can be serviced quickly and easily by skilled motorcycle technicians.

Mr Craig Bramscher CEO and Founder of Brammo said that "Now that our new facility has begun production, we have a significant number of customer and fleet orders that we will be fulfilling this year." He added that "It's been a very satisfying year with customer orders, new dealers and now production all gaining momentum much faster than anticipated."

Mr Brian Wismann director of Product Development at Brammo Inc said that "After 8 months of solid, concerted effort on both sides we have reached this milestone, and I couldn't be more proud of the team. We have been extremely impressed with how much Flextronics brings to the table in the way of manufacturing and quality processes owing to their vast experience as a Tier 1 automotive supplier and contract manufacturer. This partnership gives Brammo the ability to scale production and access global markets and the benefit of strengthening its reputation as the builder of the world's finest electric motorcycles."

_{(Sourced from: www.steelguru.com)}

Delphi to steer clear of low cost cars- July 7

Low cost cars could be the latest global mantra but auto ancillary supplier, Delphi, has no interest in this space. It was the TATA Nano which first fuelled the imagination of the world, thanks largely to its widely publicized INR 100,000 tag. It prompted Mr Carlos Ghosn the CEO of Renault Nissan, to promptly follow suit with the ULC (ultra low cost) car being developed with Bajaj Auto.

Mr Rodney O' Neal CEO and president of Delphi said that “There is a price point that has to be reached since technology does cost money and this makes affordability an issue.”

He said that “When you look at the TATA Nano, it is not a vehicle where you will find a lot of Delphi content. This is because it is aimed at the affordability segment in the entry level. It is a wonderful car but not very sophisticated in terms of its electrical content.”

A provider of powertrain, safety, electronic and thermal technology solutions, Delphi spends a billion dollars on engineering every year.

Mr O' Neal reiterated that “To lose tremendous money at the altar of strategy and learning does not make business sense to us. I respect the innovations in the Nano but we will not be learning on those types of vehicles but on other types.”

Delphi would be “very interested” in those consumers who, after buying the Nano, would move up to the next class of vehicles.

He said that “We will not be participating in the entry level vehicle other than perhaps the powertrain side because we do injectors for motorcycles.”

As Mr O' Neal put it, it is virtually impossible for businesses worldwide to service every segment of the market. He said that “There is a huge spectrum of automobiles across the world but we have no desire to try and be on everyone. We have segmented the market and we think Delphi's capabilities will fit in a particular space.”

After the slowdown of 2009, 2010 was a rebound year and 2011, likewise, has got off to a good start for the company. Yet, the worst may still not be over. Mr O' Neal said that “It is amazing what a tsunami, a couple of wars and oil going at over USD 110/bbl can do. There is a little bit of uncertainty globally in terms of which way the markets are going, particularly in Europe and even the US which is still shaky.”

_{(Sourced from: www.steelguru.com)}

GM gives natural gas cars a boost- July 6

It is reported that American automobiles have a limited diet but gasoline’s monopoly at the pump may be ending. The giant of US automakers is turning to something cheaper and cleaner.

General Motors Corporation announced plans this week to develop its first natural gas powered engine, overcoming its long aversion to alternative fuels and joining a host of smaller players working to put natural gas in car engines.

In Indianapolis, Marlon Kirby has built a new supercar that looks much like all the others sleek, curvy low to the ground but which differs from its gasoline guzzling counterparts in one major way it runs on liquid natural gas. After 21,000 man hours, the USD 1 million Maxximus LNG 2000 is ready for speed trials and Kirby expects it to top 200 miles per hour.

GM, the automobile powerhouse and Kirby, the niche mechanic are at opposite ends of the same movement; to make car engines that use the country’s abundant cheap supplies of natural gas.

The United States has more natural gas than it knows what to do with up to 100 years of supply, thanks to a new drilling technique call hydraulic fracturing which releases huge reserves of natural gas trapped in shale rock.

Natural gas is used mainly in electricity generation and for industry but with just 120,000 natural gas vehicles on the road and only 900 filling stations, transport remains a tiny fraction of total demand. However, assuming production forecasts are correct natural gas will likely remain cheap for years and could help cut US reliance on oil. While crude prices soared above USD 110 per barrel this year due to unrest in the Middle East, US natural gas prices, impervious to international influence, remained low as there was no shortage of  natural gas at home.

Mr Ian Scott president of Westport Innovations Light Duty Division said that “With all the activity in shale gas, the natural gas price is decoupled from diesel. Natural gas is a lot more attractive given the situation in the market.”

Vancouver based Westport which develops technologies to convert engines to run on natural gas is working with GM on the multimillion dollar project to develop a natural gas vehicle. GM and Westport will look at light-weight engines, as small as 0.5 liters opening up the market to smaller consumer vehicles previously overlooked by engine manufacturers. This would be only the second passenger vehicle in the United States made at the factory to run on natural gas following Honda’s Civic GX.

South Korea's steel export in H1 up by 31%- July 5

According to the data released by the South Korea’s export and import division ministry of knowledge economy, South Korea recorded a record high trade total of USD 533.4 billion in the first six months of the current year. In June this year, South Korea's exports climbed 14.5%  to USD 48.15 billion, though this was down by 1.2% compared to May.

In the half year in question, South Korea's exports value in petroleum products, ships and automobiles was up significantly with its steel exports. The country's steel export value increased by 31.4% to USD 17.14 billion, while its petroleum product exports rose by 71.8%, its ship exports increased by 29.5% and the country's automobile exports improved by 25.1% all compared to the same period of 2010.

In the given period, among the major export partners of South Korea, the country's exports to China increased by 16.6% exports to the US rose by 20.1% to Japan by 49.9% to ASEAN countries by 38.1% to the European Union by 19.3% to Latin America by 17.8 percent, all compared to the same period last year.

Meanwhile, in June, South Korea's imports rose 27.4% reaching USD 44.9 billion. Inbound shipments of raw materials went up by 35% while imports of crude oil and coal increased by 46.8% and 46.4% respectively.

_{(Sourced from: www.steelguru.com)}

Volkswagen models sweep top selling import car list- July 4

Volkswagen's latest models have taken the top three spots on the best selling import car list this year thanks to favorable demand from local consumers.

Industry sources said that sales of the German car maker's Golf 1.6 TDI reached 589 units in the first five months of this year, making it the top-selling import brand. It was followed by the Passat CC 2.0 TDI with 574 units and the Jetta 2.0 TDI with 506 vehicles.

The source added that fueled by the popularity of the three models, Volkswagen Korea, the local importer of the German automaker, sold a total of 5,373 vehicles in the January to May period, already exceeding the 4,760 vehicles sold in the first half of 2010. They predicted that sales of Volkswagen cars may reach 6,600 cars by the end of June.

The German car maker meanwhile said it posted strong sales of its models with an engine capacity below 2,000 cubic centimeters. In this segment, the car maker sold 5,109 units, a market share of 28.8%.

Volkswagen said that the release of the new Touareg model in July will further improve the company's image among local consumers adding that efforts are under way to upgrade the company's after sales service infrastructure, which can improve customer satisfaction and fuel sales down the road.

_{(Sourced from: www.steelguru.com)}

US raw steel production up by 3%- July 1

American Iron & Steel Industries reported that in the week ending June 25th 2011, domestic raw steel production was 1,871,000 net tons while the capability utilization rate was 76.5%. Production was 1,816,000 tons in the week ending June 25, 2010, while the capability utilization then was 75.4%. The current week production represents a 3% increase from the same period in the previous year.

Production for the week ending June 25th 2011 is up 0.7% from the previous week ending June 18, 2011 when production was 1,858,000 tons and the rate of capability utilization was 76%.

Adjusted year to date production through June 25, 2011 was 45,580,000 tons, at a capability utilization rate of 74.1%. That is a 4.5% increase from the 43,615,000 tons during the same period last year, when the capability utilization rate was 71.4%.

Broken down by districts, here's production for the week ending June 25, 2011 in thousands of net tons:
Northeast Coast: 101
Pittsburgh/Youngstown: 153
Lake Erie: 41
Detroit: 119
Indiana/Chicago: 491
Midwest: 278
Southern: 604
Western: 84.

_{(Sourced from: www.steelguru.com)}

Hyundai inks deal to produce commercial vehicles in Europe- June 30

South Korea's leading automaker Hyundai Motor Co said that it has signed a deal with a Turkish company to produce light vans, buses and trucks for the European market.

The complete knockdown production agreement reached in Istanbul calls for Hyundai to send completed vehicle parts and components to Turkey's Karsan Co. with production slated to begin in 2014.

_{(Sourced from: www.steelguru.com)}

Chinese 125 CC motorbike exports up in 2011- June 29

China Association of Automobile Manufacturers or CAAM China exported USD 661 million worth of 125 CC motorbikes in the first five months of this year 27.24% more than in the corresponding period of 2010.

The export value of 150 CC motorbikes surged 26.87%YoY to USD 348 million, 50 CC motorbikes increased 11.91%YoY to USD 217 million, 110 CC motorbikes swelled 19.85%YoY to USD 200 million and 100 CC motorbikes surged 24.69%YoY to USD 164 million.

The five kinds of motorbikes' export value totaled USD 1.59 billion accounting for 88% of the total.

_{(Sourced from: www.steelguru.com)}

Turkish metal manufacturing sector capacity usage up by 2% in June- June 28

According to the provisional data released by the Central Bank of the Republic of Turkey, in June this year the capacity utilization rate in the Turkish basic metal manufacturing industry came to 79.7% increasing by 1.9 percentage points compared to June 2010 and up from 77.8% in May this year. This is the highest capacity utilization level recorded in ten months.

Meanwhile, in June, the capacity utilization rate in the manufacture of metal products, except machinery and equipment, rose by 5 percentage points reaching 72.5% up from 70.8% recorded in May this year.

Capacity utilization rate in Turkey’s general manufacturing industry, on the other hand, came to 76.7% up from 75.2% in May this year and up from 73.3% in June 2010.

_{(Sourced from: www.steelguru.com)}

US's H1 scrap average prices raise- June 24

The average prices of the US ’s H1 scrap in Pittsburgh , Chicago and Philadelphia were at US$415.83/long ton on June 20th, 2011, up by US$1.66/long ton from a week earlier.

Among them, the average H1 scrap prices in Pittsburgh and China remained unchanged at US$409.5/long ton and US$419.5/long ton respectively. However, that in Philadelphia increased by US$5/long ton to reach US$418.5/long ton.

At the same time, the average prices of the No. 2 bundle scrap kept unchanged at US$352/long ton.

Tokyo Steel increases scrap purchase prices- June 24

Reportedly, Japan ’s Tokyo Steel announced to rise the scrap prices by ￥500~￥1000/ton averagely in its four plants on June 23th, except the Utsunomiya plant.

After the adjustment, the latest H2 scrap prices are at ￥35,000~￥37,500/ton averagely.

Among them, the purchase prices of H2 scrap in Okayama plant are at ￥37,000/ton; that in Kyushu plant is at ￥37,500/ton; that in Takamatsu plant is at ￥35,000/ton; that in Tahara plant is at ￥37,500/ton.

The H2 purchase prices in Utsunomiya plant remains unchanged at ￥35,000/ton.

Russian ferrosilicon output statistics in May- June 23

In May, the total ferrosilicon output in Russia achieved 55, 800t, up by 2.76% month-on-month. In Jan-May, the ferrosilicon output reached 269, 000t, up by 11.53% year-on-year. Kyzneck Ferrosplav produced 26, 800t of ferrosilicon in May, up by 3.47% month-on-month.

CIS selenium market quiet- June 23

This week, CIS selenium market has no improvements and the trading remains weak. A trader from Kazakhstan disclosed to Asian Metal that it is the traditional slack season of selenium powder market now, while many participants have left the spot market and started summer break

Chinese silicon metal market slows- June 23

Chinese silicon metal market is slow this week following the increasing output and the weak demand, both domestic and overseas buyers are inactive in adding stocks, expecting the price to go down further in the rainy season. A source from a silicon metal smelter in Guizhou, running two furnaces of 6,300kva with an output of around 700tm for 5-5-3, told Asian Metal that they still have two truckloads of 5-5-3 have not been finalised.

Russia’s scrap exports soar by 196.2% y-o-y in first four months- June 21

According to data, Russia exported 289 thousand tons of scrap in April, dropped substantially by 93.8% from a year earlier.

However, the country’s scrap exports in the first four months totaled 1.175 million tons, soared by 196.2% year on year.

Among them, 655 thousand tons of scraps were exported to Turkey , increased substantially by 760%; 204 thousand tons were to South Korea , up by 17.4%; 151 thousand tons were to Spain , increased by 36.3%.

Accordingly, it’s estimated that Russia ’s total scrap exports in the entire 2011 would reach 3.53 million tons.

Hyundai Steel to postpone bids for Japanese scrap- June 21

Reportedly, South Korean Hyundai Steel has announced to postpone the bids for Japanese scrap as the company has current owned 200 thousand tons of Japanese scrap which can be supplied sufficiently for July.

At the same time, Hyundai Steel said if Japanese steel mills could offer the H2 scrap with the quotes of ￥34,000/ton FOB, the company might consider importing some more.

Besides, Hyundai Steel will start the annual maintenance during July to August; therefore, its scrap consumption will be reduced.

Vietnam’s steel long product consumption drops obviously in May-  June 20

Vietnam’s steel long product consumption dropped by 11.7% to touch 390 thousand tons in May after a sharp rise of 34% in April.

Vietnam Steel Association (VSA) indicated that the obvious drop rate of steel long products in May was caused by inflation and tight credit in Vietnamese domestic market.

According to statistics, Vietnam ’s steel long product output in May was at 438 thousand tons, down by 0.6% from April.

Besides, the total steel long product production in the first five months of this year amounted 2.209 million tons, soared by 14.4% year on year. At the same time, the country’s total steel long production consumption was 2.1 million tons, increased by 16.2% year on year.

However, dealers have seen the pessimistic outlook for the prospect of the steel long product market as the rainy season will affect the construction industry and the demand will decline.

Taiwan’s stainless steel maker plans to produce carbon steel plate-  June 20

It is reported that one of major stainless steel producer in southern Taiwan planned to produce 3,000 ton of A572 plate preliminarily, mainly supplied to domestic market.

The stainless steel mill maker said the stainless steel market remained flat due to weak demand; consequently, the company has faced difficulty to gain enough orders to run the production costs.

Therefore, the company decided to restart carbon steel plate mainly on grade A572 for size 12mm or 16mm respectively.

Meanwhile, it will announce the proposal shortly with the production schedule review soon. The price will be competitive against China Steel Corp. (CSC)’s price level

Japanese steelmakers to raise prices for automakers- June 16

Industry sources said that major Japanese steelmakers are in final talks with automakers to raise steel prices in the April to September first half of fiscal 2011 by more than JPY 10,000 per tonne from the previous six months due to increased raw materials prices.

The hike in steel prices is expected to increase auto production costs by more than 10,000 yen per vehicle and affect the earnings of automakers currently recovering from sharp output cuts caused by the devastating March 11 earthquake and tsunami in northeastern Japan .

The sources said that it will be difficult for automakers to pass on the steel price hike to vehicle prices.

Nippon Steel Corp had first requested a steel price increase of around JPY 15,000 per tonn in negotiations with Toyota Motor Corp. But they are now expected to agree on a price hike of a little more than JPY 10,000 the largest rise since an increase of around JPY 20,000 n the first half of fiscal 2010.

Sources added that JFE Steel Corp is also negotiating with Nissan Motor Co to raise steel prices by a similar margin.

Raw materials prices for steel products have hit all time highs in the April-June quarter, including around USD 170 per tonne for iron ore and USD 330 per tonne for coking coal, as demand from fast growing China has continued to rise.

In response, steelmakers had expressed plans to raise steel product prices by around 20,000 yen per ton before the March disaster. As the March disaster has affected auto production, however, they have lowered the steel price hikes being negotiated with automakers.

(Sourced from Kyodo News)

Ford eyeing India and China to hit 50% growth target- June 15

Ford Motor Co is aiming to expand its presence in the fast growing auto markets of India and China with an eye toward increasing the number of vehicles it sells per year by 50 percent by the middle of the decade.

Ford also said that it would cut its debt by 15.7% to about USD 14 billion by the end of June, bringing it to less than half the USD 33.6 billion it was carrying in 2009. The company wants to regain an investment-grade debt rating, which it sees as necessary to resuming paying a dividend, but it does not expect to reinstate its dividend before next year.

Chief Financial Officer Mr Lewis Booth told investors at a meeting in New York City that Ford planned to cut its overall debt to about USD 10 billion by the middle of the decade. Mr Booth said that "We believe we will achieve and maintain an investment-grade rating through the business cycle.”

The No 2 US automaker, like its rival General Motors Co is looking to markets other than the United States because of lingering weakness in the economy. The company said it would concentrate on small cars, popular in developing economies, and that it was aiming for sales of small cars to represent 55 percent of total vehicle sales by 2020. Small cars currently represent about 48% of Ford's total vehicle sales.

Mr George Magliano director of auto industry research for IHS Automotive Insight said that "They are going to have to do a lot of scrambling in Asia . They are latecomers in Asia . GM took the risk in China and has a bigger stake now."

A 50% sales increase by the middle of the decade would bring Ford's annual vehicle sales to 8 million.

(Sourced from ET)

Heads of the European automobile industry met in UK- June 14

The heads of the European automobile industry met with UK government officials yesterday and today in London to stress the importance of a strong manufacturing base underpinning innovation and economic growth in the UK and in Europe , and to underline the need for fair play in the global strive for competitiveness.

The Board of Directors of ACEA, the industry’s European trade association, had meetings with Prime Minister David Cameron and Secretary of State for Business Vince Cable, among others, in connection with the association’s Annual General Assembly taking place in London this year.

Mr Dieter Zetsche president on ACEA and Head of Daimler AG said that “We acknowledge the positive approach taken by the UK government towards automotive innovation. It is first and foremost the responsibility of the automobile manufacturers to ensure competitiveness, and we pursue that goal head-on. But some issue are beyond our reach, whereas governments do play an important role.”

The main issues on the agenda of the talks included the need for
1. Fair free trade with major economies such as India and Japan
2. Government support for the swift introduction of breakthrough technologies
3. Less bureaucracy through lean regulations
4. All three issues are key in obtaining a level playing field world wide

The automobile industry is booking record sales on a global scale, mainly driven by growth in the BRIC countries. In Europe , however, the situation remains tight, not in the least in the segment of heavy-duty vehicles where sales are still significantly below pre-crisis levels. Despite the continuing economic uncertainties, technological progress remains the stronghold of the European automobile industry, with investments of over EUR 30 billion in R&D each year.

Turkish steel scrap imports in 4months up by 5%- June 10

According to the data provided by the Turkish Statistical Institute, in the first 4 months of this year Turkey 's steel scrap imports rose 5.21% YoY reaching 6.23 million tonnes.

The data showed that, in the given period, the average import price of Turkey 's steel scrap stood at USD 450 per tonne.

In January to April, the US was Turkey 's top scrap import source with 1.29 million tonnes while Romania followed the US with its scrap exports to Turkey reaching 806,976 tonnes.

In the given period, the UK exported 595,703 tonnes of steel scrap to Turkey , Russia exported 553,984 tonnes and Belgium exported 445,386 tonnes to Turkey while Turkey imported 443,742 tonnes of steel scrap from the Netherlands , 351,443 tonnes from Germany and 226,756 tonnes from Bulgaria .

_{(Sourced from SteelOrbis)}

Indian silicon manganese the export market to move slowly- June 10

Dragged down by weak demand for holding the recent run of India 65/16 manganese export market is very slow, the current 65/16 manganese FOB export price in the 1,180-1,230 U.S. dollars / ton range hovering. India's exports to Japan manganese quote CIF 1,280 -1,290 in U.S. dollars / ton low levels. India's 2010 total exports of manganese alloys 600,000 tons.

ArcelorMittal restarts iron ore production in Liberia- June 9

After the work stall last year, the world's top steemaker ArcelorMittal said yesterday that the iron ore mine in Liberia has restarted production as well as the US$2.2 billion Faleme mine in Senegal , where exploration is still ongoing. Reuters reported.

The company expects that the project will produce no more than a couple of million tons a year for the first one to two years, but it will ramp up later for sure.

In addition, ArcelorMittal was no longer in talks with BHP Billiton to possibly combine their assets in Liberia and neighboring Guinea .

Chinese stainless steel demand to grow by 7%- June 9

BaoSteel’s stainless steel unit expects stainless steel consumption in China to grow 5% to 7% per year over the next five to 10 years.

Mr Lou Dingbo president of BaoSteel Stainless said that Chinese demand for stainless steel would remain resilient even as the government tries to curb overheating.

He said “I believe that after China 's tightening measures have been carried out to a certain point and GDP has grown to a certain point, per capita demand for stainless steel will rise. I foresee that in the next five to 10 years, consumption of stainless steel will increase by a moderate rate of 5% to 7%.”

Mr Lou noted that global growth for stainless steel would be driven by China and India , while demand in Europe and the United States was likely to slow.

_{(Sourced from Xinhua)}

Jindal Steel to raise investment in Oman to US$ 1 billion- June 8

Reportedly, India ’s Jindal Steel has planned to invest US$ 1 billion in its plant and facility in Oman in the next 2 years.

The first phrase which costs US$ 400 million will start from expansion at its Sohar plant, Oman ’s first integrated iron and steel manufacturing facility.

Secondly, the capacity of steel melting shop which produces 2 million tons of steel per annual will be achieved by May 2013.

Thirdly, the company planned to set up pelletisation plant with7 million tons of capacity. The plant would depend on the availability of iron ore and adequate gas which hasn’t been assured by Omen government.

Ford to build its smallest engine ever- June 6

Ford will build a three-cylinder engine -- its smallest engine ever -- with better fuel economy and all the power of a larger one, the company said Thursday.
The new EcoBoost engine, comparable to that found in a cruiser motorcycle, is in the final phase of development. EcoBoost engines will be available in 90 percent of Ford's North American lineup by 2013, the automaker said in a press release said the engine is designed to have higher fuel economy and lower emissions than a traditional four-cylinder, without sacrificing power and performance.
The 1.0-liter engine will deliver horsepower and torque outputs equivalent to or better than most conventional 1.6-liter gasoline engines, according to the release.
Recently drivers are opting for smaller engines.
10 safest fuel-efficient cars
More than half of Ford F-150 truck buyers purchased versions with recently introduced EcoBoost V6 engines rather than the more traditional V8's, the automaker said in its latest sales report.
The hyper-efficient three-cylinder engine will be available globally in the company's small cars and will "play an important role in North America," the automaker said.No one's ever built a three-cylinder engine quite like this," said Joe Bakaj, a Ford engineering executive. "Not only is it one of the most technically advanced and efficient engines we've ever designed, but it will introduce a number of new technologies to the Ford engine lineup."
Daimler has been using three-cylinder engines in its Smart line of microcars for years. But Ford is the first major U.S. automaker to introduce such a small engine on the global market.
Ford said its engineers started working on a three-cylinder engine at its research center in the United Kingdom before gas prices jumped near $4 a gallon. It was previewed last year in China and made its debut in Europe earlier this year.
The Dearborn, Mich.-based company said it will release more details on the engine in September at the Frankfurt Motor Show

World Aluminum output reaches highest since 1999 as prices climb- June 3

Global aluminum production climbed to the highest daily average in April since at least 1999 amid rising prices on the London Metal Exchange.

According to data compiled by the International Aluminum Institute, primary aluminum output rose to a daily average of 118,800 tonnes in April from 115,400 tonnes a day in March. Aluminum for delivery in three months on the LME rebounded since November reaching USD 2,803 per tonne on May 3rd 2011, the highest level since August 2008, on expectations rising oil prices will boost production costs.

Mr Edgardo Gelsomino, a London based analyst at researcher Brook Hunt said that “The price makes everybody make money so there is no incentive to cut down on production. Most smelters are making the most of these prices and operating as much as they can.”

Aluminum is this year’s best performer among all metals traded on the LME, gaining 8.1% since the start of the year. The metal rose 1.7% to USD 2,670 per tonne. Daily aluminum output in April rebounded 9.5% since its 10 month low in November which goes back to January 1999. Output has climbed 7.7% since January.

Mr Gelsomino said that “Prices are helping, but are not the main driver. It’s normal to see growth. You need to supply a growing demand.

According to the National Bureau of Statistics, aluminum output in China , which accounts for about 40% globally climbed to a record last month as rising prices and ample power supplies spurred producers to use more capacity.

According to CRU International Limited, primary aluminum output in China climbed to a record 1.46 million tonnes in April. Most of the aluminum production capacity that was halted last year due to power restrictions has been restarted.

Mr Svein Richard Brandtzaeg CEO of Hydro said that Emirates Aluminum reached its full production capacity in January. The Qatalum aluminum smelter in Qatar , a JV between Norsk Hydro ASA and Qatar Petroleum is expected to reach full production in June.

_{(Sourced from Bloomberg.net)}

Auto demand falls, Maruti posts slow growth- June 2

Japanese auto sales fell by a third in May, the lowest total for that month since 1968, as car makers suffered from the impact of the earthquake and tsunami that roiled the country in March.

South Korean rivals, on the other hand, continued to gain traction with Hyundai Motor and affiliate Kia Motors posting double-digit growth in sales driven by solid demand for new models while their Japanese competitors have been forced to slash production globally.

Despite the ninth consecutive drop in monthly new vehicle sales, Japanese car makers are recovering faster than expected with market leader Toyota Motor expecting its output to return to 90% of its pre-quake levels by this month.

Still, overall production in 2012 could be almost a million vehicles less than Toyota had planned to build at the start of the year. Lost output by the end of May was 900,000 cars.

Nissan Motor Co and Honda Motor Co have also said they are working to bring production back to pre-quake levels as soon as possible, most likely during the financial third quarter from October-December.

"The earthquake put a chill on consumption in Japan ," Michiro Saito, general manager of the Japan Automobile Dealers Association said on Wednesday. "Production will return to normal from June and that may provide a boost to sales."

Sales of vehicles, excluding 660cc minicars in Japan , fell 37.8% from the year before to 142,154 units last month. Toyota , the world's biggest automaker, led the drop with a 56.6% fall.

Combined with 660cc vehicles, tallied separately, new vehicles sales in the world's third-biggest auto market declined 33.4% to 237,364 vehicles, data showed on Wednesday.

India demand to slow

India's largest automaker, Maruti Suzuki, posted its slowest growth rate in more than two years, with a 1.9% rise in total sales to 104,073 units.

Indian automakers overall sold 162,825 units in April, up 13% from a year ago, the slowest pace in nearly two years.

"I think they are feeling the pinch of rising costs," said Kishor Ostwal, chairman of brokerage CNI Research. "Higher fuel prices and rate hikes are beginning to show their effects and some demand will be shifted from four-wheelers to two-wheelers, particularly in lower-end car models."

India's third largest two-wheeler maker, TVS Motor, posted an 18% jump in May sales to 185,930 units, a record for the company.

Tata Motors, India 's largest truck and bus maker posted a 10% rise in May sales, driven by an 84% rise in sales of the Tata Nano, touted as the world's cheapest car.

Vehicle sales in India , one of the fastest-growing auto markets in the world, grew a record 30% in 2010 as the burgeoning middle class in Asia 's third-largest economy spurred demand. That growth is expected to halve to 12 to 15% this year.

Indian car makers have expressed concerns over rising commodity prices and have raised vehicle prices by an average 1.5 to 2% this year to offset cost pressures.

Demand is also expected to slow because fuel prices rose by a record 8.6% in May and interest rates are likely to be raised in June.

NMDC eying coal mine in US- May 31

NMDC has set in motion the process for acquiring a stake in a coal mine in Alabama in the US and buying a gold mine in Tanzania. It is also working on securing 50% stake in a rock phosphate asset in Australia.

Mr Rana Som chairman of NMDC said that the company is also planning to buy-out iron ore assets overseas. “Due diligence is on for acquiring a stake in a running mine at Alabama, which has reserves of about 70 million tonnes of coal. In addition, there is about 161 million tonnes of coal within the natural zone of access of the project.”

NMDC has already started due diligence for buying stake in the coal asset and the process is expected to be completed by June 15. NMDC is also set to buy a gold mine in Tanzania. Mr Som said that “NMDC was awarded three prospecting licenses for gold in Tanzania. One of them is very good. In the next six months, the Tanzanian Government will give us the mining licence,”

He said NMDC might rope in a partner for a joint venture to mine the leased asset. On the phosphate asset, he said the company has had a detailed negotiation for Wonarah phosphate deposit. He added that “We will acquire 50 per cent of the project owned by Minemakers Ltd, which is a listed company in Australia.”

The joint venture agreement is likely to be signed by October this year.

About its proposed joint venture with Russia's Severstal, the chairman said the two companies were continuously negotiating and that by September-October this year, a joint venture agreement was likely to be signed.

Mr Som said the company had earmarked INR 3,200 crore for capacity expansion during the current fiscal of which INR 2,500 crore will be spent on its steel plant in Chhattisgarh. The production target for the current fiscal is 30 million tonnes.

_{(Sourced from: www.steelguru.com)}

China plans to increase scrap metals output by 60 pct by 2015- May 30

A senior official at the China Nonferrous Metals Industry Association Recycling Metal Branch said that China plans to expand output of secondary nonferrous metals by 60% from 2010 to 1.2 million tonnes by 2015 by tapping into scrap.

Mr Hongchang Ma, deputy secretary general of the association, said that China plans 6 to 8 new scrap copper plants each with an annual capacity of 200,000 tonnes, eight to 10 scrap aluminium plants with 200,000 tonnes of capacity and 10 lead recycling projects with 50,000 tonnes of capacity.

Mr Ma said that there are also plans for 5 scrap processing plants in the next 5 years with dismantling capacity of 1 million tonnes, and 5 recycle markets with trading volume of 600,000 tonnes per year.

China 's scrap metals recycling industry however is marred by inefficiency and environmental issues, though Mr Ma said over the next few years China aims for consolidation and improving technology through research and development.

The official customs data showed that China , the world's top consumer of copper, imported 1.4 million tonnes of scrap copper in the first four months of the year, up by 2% YoY.

_{(Sourced from www.reuters.com)}

Tata Steel Europe to introduce new steel to Thailand subsidiary- May 30

Multinational steelmaker Tata Steel said recently that its European unit would bring in high-end steel products to its Thailand unit, with a purpose of help Tata Thailand back to profitable.

According to Koushik Chatterjee, Tata Steel’s CFO, Tata Steel Europe will introduce its auto steel products into Tata Steel Thailand, aiming the fast-growing auto industry.

In a recent statement of Tata Steel, the company mentioned steel consuming sectors’ growth rates, which are 4% for construction, 13% for automobile, and 6% for manufacturing.

US April preliminary steel imports exceed USD 2 billion- May 27

The US Census Bureau announced that preliminary April 2011 steel imports were USD 2.6 billion on 2.3 million tons. This was an increase of USD 0.1 billion on 0.1 million tons from the preliminary March 2011 totals of USD 2.5 billion on 2.2 million tons.

The April 2011 change in steel imports based on metric tonnage reflected an increase primarily in line pipe greater than 16 inches in diameter and hot dipped galvanized sheets and strip. Decreases occurred primarily in oil country goods and cold rolled sheets. Increases occurred primarily with Australia and Korea. Decreases occurred primarily with Mexico.

The year to date final statistics through March 2011 showed steel imports of 5.8 million tons compared with 4.8 million tons through March 2010. The largest commodity increases occurred primarily in oil country goods and blooms, billets, and slabs. The largest commodity decrease occurred primarily in line pipe greater than 16 inches. The largest country increase occurred primarily with Brazil and the largest country decrease occurred primarily with Canada.

_{(Sourced from www.financialexpress.com)}

Russia’s steel pipe imports soar by 1.9 times in April- May 26

According to statistics, Russia imported 121 thousand tons of steel pipe in April, soared by 1.9 times year on year; while, it was down by 18.4% month on month.

In addition, the country’s steel pipe imports in the first four months of this year totaled 588 thousand tons, increased substantially by 2.5 times in comparison of that in the same period of last year.

Ferro tungsten price to rise further on China shortage- May 26

Reuters reported that ferro tungsten prices held to record highs this week, but may rise further due to a raw material shortage in China and rising demand.

As per report, prices of ferro tungsten, used to make steel for heavy duty equipment like industrial drills, were USD 43 to USD 45 per kilogram this week, matching the record high touched last week.

The price has risen 76% since December 2008 when consumers slashed stocks due to the recession.

A UK based trader said that "The spike was mostly due to shortages of raw material from China . There is tightness in the market and demand is good."

Tungsten production in recent weeks has fallen sharply in top producer China , accounting for about 90% of the world's ferro tungsten production, as the government keeps a tight grip on tungsten mining.

Traders said that the shortage may get worse. Ferro tungsten producers have to compete with tungstate APT producers for raw materials and increasing demand for tungstate APT means competition has became stiffer and prices higher.

Traders said that prices for tungstate APT, used as a steel ingredient and in aerospace applications, are also likely to increase further.

(Sourced from www.reuters.com)

US weekly raw steel production continues on upward trend- May 25

American Iron & Steel Industries reported that, in the week ending May 21st 2011, US domestic raw steel production was 1.821 million tons while the capability utilization rate was 74.5%. Production was 1.808 million tons in the week ending May 21st 2010, while the capability utilization then was 74.8%. The current week production represents a 0.7% increase from the same period in the previous year.

Production for the week ending May 21st 2011 is up by 0.6% WoW from the previous week ending May 14th 2011 when production was 1.810 million tons and the rate of capability utilization was 74%.

Adjusted YTD production through May 21st 2011 was 36.379 million tons, at a capability utilization rate of 73.9%. That is a 5.3% increase from the 34.544 million tons during the same period last year, when the capability utilization rate was 71.4%.

Broken down by districts, here's production for the week ending May 21st 2011:
1. Northeast Coast: 84
2. Pittsburgh/Youngstown: 147
3. Lake Erie: 38
4. Detroit: 120
5. Indiana/Chicago: 506
6. Midwest: 275
7. Southern: 579
8. Western: 72
(In thousands of net tons)

AISI's estimate is based on reports from companies representing about 75% of the US's raw steel capability and includes revisions for previous months.

Sumitomo Metals develops new corrosion resistant steel- May 23

Sumitomo Metal Industries Limited has developed a new corrosion resistant steel with tin added that can be used in salt containing environments, such as at the seaside or in cold climates where anti freezing agents are sprayed. Bridges made of this new steel is expected to lengthen the intervals between repaints and reduce repainting workload.

1. Background for development
In general, steel bridges are painted for rust prevention. As rust tends to spread from a scratch in the coating or a tip of materials, regular repainting is required. Lengthening the intervals between repaints or lightening repainting workload will result in reduction in maintenance and management costs for bridges.

2. Details of newly developed steel
Sumitomo Metals has found out the nature of the corrosion mechanism of steel coating in high salt containing environments. We found out that in such environments, adding a trace of tin can significantly improves corrosion resistance, and that this effect can be produced even if rust cannot be removed sufficiently during the repainting work. We were then able to develop this new corrosion-resistant steel with tin added, which at the same time satisfies more than similar basic performance properties as conventional steel needed for bridges such as strength and weldability.

The use of this new steel enables to lengthen the intervals between periodic repaints, and to lighten repainting workload.

3. Future development
As the new corrosion resistant steel has high corrosion-resistant performance even with no coating, its application for bridges with no coating is also studied.

Sumitomo Metals will carry out further studies on the longer duration between repaints and maintenance and the simplification of repainting work. We will thus contribute to cost reduction over the lifetime of steel bridges and savings in public work investment.


_{(Sourced from: www.steelguru.com)}

Tokai Kogyo to build automobile spare parts factory in Vietnam- May 23

Japan's Tokai Kogyo Group has announced that it plans to build an automobile spare parts factory in the central city of Da Nang.

The site will occupy a 2 hectares to 5 hectares area. The project has a total capital investment of about USD 20 million. The plant will supply parts to leading car makers such as Honda, Toyota, Nissan and General Motors.

Mr Phung Tan Viet deputy chairman of the city's People's Committee said that Viet Nam will be the sixth country chosen by Tokai Kogyo Group to produce auto spare parts. The Tokai Kogyo project is in keeping with the city's plans to develop support industries.

There are currently 60 Japanese investment projects in the city, accounting for 20% of the city's total foreign direct investment.


_{(Sourced from: www.steelguru.com)}

US copper import surge led by manufacturing bounce- May 19

It is reported that US copper imports climbed to two year peak in March snapping back to back monthly declines in the first 2 months of the year as demand for the metal grew with a sustained recovery in manufacturing.

As inbound shipments of copper broke higher, aluminum imports sputtered falling 20% in the Q1 a trend that could continue in the coming months as the combination of production restarts and sky high prices on the London Metal Exchange deter consumer appetites.

Data from the US International Trade Commission last week showed March copper imports jump to 66,166 tonnes up more than 30% from the 50,494 tonnes recorded in February. March copper imports stood at their highest level since March 2009, when 79,975 tonnes were shipped into the country.

Aluminum imports amounted to 311,062 tonnes during the quarter down 20% from the 389,539 tonnes recorded during the first 3 months of 2010.

Mr Bill O Neill partner of LOGIC Advisors in Upper Saddle River, New Jersey said that "It's a positive sign on the demand side of the equation as far as the US is concerned. I think it falls in line with what you might expect from the data we have seen manufacturing has been  pretty decent for a number of months."

_{(Sourced from: www.steelguru.com)}

Germany’s steel demand seen positive in 2011- May 19

According to the report of German Steel Federation, Germany ’s steel market has shown an elevated movement since the opening of this year.It’s known that Germany is the largest crude steel producer in the EU and also is ranked 7th position worldwide.

The report showed that Germany ’s rolled steel orders hiked by 4% year on year with production output of 10.98 million tons in the Q1.At the same time, the country’s rolled steel shipments surged seemingly to 9.94 million tons in the Q1 from 8.89 million tons in Q4 2010.

Besides, Germany 's domestic market demand has boosted the increase, reaching 7.17 million tons in total; however, the export orders down by 6%.

Indian auto component industry turnover likely to be USD 110 billion by 2020- May 18

According to the Automotive Component Manufacturers Association, Indian auto component industry, consisting of a large number of small and medium enterprises, is expected to achieve an annual turnover of USD 110 billion by 2020. To maintain this growth the industry is expected to invest around USD 35 billion.

However, the rising cost of labor and other inputs, and the non availability of capital and technology are becoming speed breakers for the industry.

Mr Srivats Ram president of ACMA and MD of Wheels India Limited said that the industry is expected to contribute 3.6% of India's GDP by 2020, up from the current 2.1%.

Mr Ram said the industry could create employment opportunities for over one million people, especially in tier II and tier III cities, where the major chunk of component makers that supply to original equipment manufacturers is located.

However, the industry faces several challenges, according to Mr Ram, rising auto fuel prices, interest rates, input costs and non availability of capital. These factors have been hitting company bottom lines and bringing down operating margins and return on capital for the last five years.

Mr Ram said that the major costs, labor, power and fuel, have almost doubled over the last three years. However, productivity has not increased, due to power shortages and technology limitations. The other challenge is raising capital financial institutions are not ready to lend these units, since their balance sheets carry no credibility.

He said the withdrawal of Duty Entitlement Passbook with effect from June 30th 2011 will hurt automotive component manufacturers, and particularly SMEs, which cater to the export market. He added that "With no Value Added Tax in place, the removal of DEPB will make the industry uncompetitive in the global market. Withdrawal of the scheme without accompanying tax reforms designed to ensure that domestic taxes are not exported will leave exporters handicapped in the global markets."

In 2010-11, the domestic market for auto components was estimated at USD 30 billion as compared to USD 26 billion in 2009-10. Exports increased to USD 5 billion in 2010-11, from USD 3.8 billion in 2009-10, an increase of 31%. Imports are also growing, and are currently about USD 10 billion.

The growth was due to the surge in vehicle production in the country. According to a study by ACMA and the professional services firm Ernst & Young, India's passenger vehicle market will grow to about nine million units in 2020, while the commercial vehicle market will cross 2.2 million units.

The size of the passenger vehicle market is currently about two million units, and the commercial vehicle market is about 530,000 units. The two wheeler and three wheeler market is expected to double to 22 million units by 2015 and reach 30 million units by 2020, driven by the low penetration level, expanding rural sales and growth in exports.

_{(Sourced from www.steelguru.com)}

Shanluo Steel to construct a new steel facility- May 16

It is reported that Vietnamese steelmaker Shanluo Iron and Steel is to start construction of a new steel facility in the Vietnamese province of Shanluo.

The project will be implemented in two stages. The designed steel production capacities of the two stages are respectively 143,000 tonnes and 300,000 tonnes. After being put into production, the new facility will provide 400 jobs in the region.

_{(Sourced from www.steelguru.com)}

Siemens VAI CBM raises productivity of steel plants- May 13

Condition based maintenance increases the availability of iron and steelmaking plants and boosts companies' productivity.

At the 5th Metals and Mining Media Summit in Calcutta, Mr Werner Auer CEO of Siemens VAI said that "Continuous monitoring of components and systems gives a clearer picture of the condition of the facilities. This reduces the amount of maintenance work and avoids plant stoppages."

Condition based maintenance also cuts the costs of spare parts and labor. The results are improved plant availability and higher overall productivity. Modern production techniques increasingly use complex, highly automated machines and systems, which have to meet the highest possible demands in respect of process availability and operational safety. The challenge involves not only increasing both machine and system availability and product quality, but also reducing maintenance costs. Unlike preventive and failure-related maintenance, condition-based maintenance can meet these requirements as it allows the condition of the machinery to be logged, described and evaluated precisely.

Mr Auer explained that "The technical diagnosis is the result of modern plant technology, the right measuring instruments as well as many years of extensive experience in steel plants operation all over the world."

High plant availability is the most effective lever for increasing productivity in iron and steelmaking. Reducing shutdown times to a minimum requires detecting possible sources of failure at an early stage and carrying out the necessary maintenance work as quickly as possible. Siroll CBM (condition based maintenance) from Siemens VAI enables plant operators to monitor all the machines and the complete plant in real time. The idea is to use the results of a specific analysis of the current condition of the machines as the criterion for deciding on forthcoming maintenance work. In this way, significant irregularities resulting from wear or other damage-related causes can be identified at an early stage, and impending problems in the plant or as regards product quality can be eliminated before any major failures occur.

The modules of the Siroll CBM system are integrated seamlessly into the automation or mechatronics system in order to detect and evaluate the causes and development of any damage. Combining condition monitoring and process data can reveal the effects the condition of the plant is having on production, and enable the operating regime to be matched to the state of the plant. For example, if an overload is detected, the limit values of the plant can be reduced to protect it.

Mr Auer added that "By increasing transparency, we increase the satisfaction of our customers, because they obtain a much more accurate picture of the current condition of the plant as well as a reliable forecast for the future."

This increases availability, and the necessary service activities can be planned in good time in conjunction with the supplier. One of the key conditions for condition-based maintenance is secure remote access to the customer's systems. Siemens VAI uses the common Remote Service Platform for this purpose because it provides remote access to plants via a secure network connection. A graded access concept enables customers and machine users to monitor all maintenance activities, and detect critical plant states before any serious problems can arise. This allows faults to be rectified quickly and service work to be performed more efficiently, while at the same time reducing the need for on site service calls. Every activity is logged and reporting is tailored to the user to make all remote maintenance activities transparent. The customer's investments are reduced to a minimum and operating and maintenance costs are billed according to use.

_{(Sourced from www.steelguru.com)}

Morocco summit to spotlight energy challenges- May 12

Leading energy experts and government officials will be in Morocco for a major summit next month to explore sector strategy and challenges in a bid to secure the future of energy provision in the region.

Power Morocco 2011 to be held from June 6th to 9th 2011 combines 2 day high level conference with workshops aimed at addressing the challenges to further growth in the development of power in the region. It will also facilitate the forging of new international partnerships that will aim to prevent a future energy supply crisis.

Mena and Mediterranean leaders from power companies, multi national developers and investors will attend the crucial Casablanca event amid growing international concern over the looming energy supply and demand shortfall.

IQPC, the event organizers said that the summit comes as the region begins to take significant strides in upping power generation and distribution capabilities to combat the predicted rise in energy demand.

Mr Sandra Hijnen divisional director at IQPC for Energy and Utilities said that "The Mena countries are recognizing the current shortfall in energy supply and they know they need to act now to safeguard power provision for generations to come. They are seeing the benefits that can come with being self sufficient knowing they can secure the future of the economy and generate an additional revenue stream by harnessing renewable energy and selling the power to countries dependent on the dwindling reserves of traditional energy.”

He said that it is an exciting time for the power sector in the region. Countries such as Morocco are playing a pivotal role in shaping the future trade of energy history is being made. It is estimated that Morocco, amongst other nations in the region will face extreme difficulty in supplying the power needed by its population if it does not act now.

_{(Sourced from: www.steelguru.com)}

EU Q1 commercial vehicles registrations up by 14%- May 11

European Automobile Manufacturer's Association has announced that in March 2011, demand for new commercial vehicles was up by 9.7% in the EU as compared to March 2010. Of the 208,889 new registrations, 49,064 were recorded in the UK (+24.6%), 46,363 in France (+8.0%) and 30,730 in Germany (+19.4%). The month counted on average the same number of working days across the region in 2010 and 2011.

Over the first quarter of 2011, new registrations amounted to 499,456 units or 14.7% more than in the same period a year ago. All segments posted growth, except buses and coaches. In absolute figures, France recorded the most vehicles (+11.6%), followed by the UK (+30.0%) and Germany (+30.9%) which performed similarly.

_{(Sourced from: www.steelguru.com)}

Russia supplied 726000 tonnes of steel to EU in Jan to Apr- May 10

Russian metallurgical companies exported more than 726,000 tonnes of steel to EU countries during January to April accounting for 22.25% of total quota per year.

EU agreed on increase in import quota with Russian steel industries in 2011. Compared with the quota in 2010, that increased by 2.5%.

_{(Sourced from: www.steelguru.com)}

Chinese coal prices to rise in May due to low stockpiles- May 10

China Coal Transport and Distribution Association said that power station coal prices in China may rise in May before stabilizing, as inventories at ports remain low.

The association said that The increase in domestic prices will slow as port stockpiles gradually increase, aided by government orders to boost coal supplies and resumption of normal rail transport capacity on the Daqin line after maintenance in April.

According to data from the association May 3, rising coal prices in China have deterred purchases by utilities and coupled with higher-than-expected industrial activity, have caused power shortages in some regions.

Prices at Qinhuangdao port, a Chinese benchmark, rose to the highest in more than two years. Stockpiles there fell to the lowest in a year this week. Coal imports will increase in May as buyers turn to global supplies in the face of high domestic prices.

_{(Sourced from: www.steelguru.com)}

Turkish car sales increases by 64% in Jan-April- May 9

Turkey’s car and light commercial vehicle market reached a new peak in the January to April period.

According to data from the Automotive Distributors Association or ODD, total sales in the first four months of the year rose by 64% on an annual basis, from 157,982 units to 259,182.

In January, the market grew by 123%, while growth in February, March and April stood at 88%, 51% and 41.1% respectively.

_{(Sourced from www.steelguru.com)}

Carmaker Perodua rejects proposal to merge with Proton- May 6

Malaysia's biggest automaker Perodua said that it expects sales to rise by 3.4% in 2011 with the launch of a new compact car and rejected a government proposal for it to combine with domestic rival Proton.

Mr Aminar Rashid Salleh, MD of Perodua said that the company, which is partly owned by Daihatsu Motor Corporation, has told a government panel recently that there were no merits to a tie up with state owned Proton but the two companies could deepen their technical alliance.

The government has suggested a consolidation between the two players, which jointly control about 60% of Southeast Asia's largest passenger car market, to boost the auto sector.

_{(Sourced from: www.steelguru.com)}

GM rises to No 1 global automaker on stronger sales- May 5

Bloomberg reported that General Motors, less than two years after declaring bankruptcy, is poised to reclaim the global auto sales lead from a Toyota Motor rattled by both natural disasters and reports of slipping quality.

GM may retain the top spot after auto parts production in Japan recovers from the March 11th 2011 earthquake. Detroit based GM plans to invest at least USD 5 billion in China to double sales to 5 million vehicles by 2015. After years of losing ground in the US to cars like Toyota’s Camry, GM’s Malibu has won better reviews and a new version is coming.

Add it up and GM may retake the sales crown lost in 2008, when the US automaker lost USD 30.9 billion and sought a federal bailout following Toyota’s most profitable financial year. Today GM is on the mend while Toyota confronts a slumping reputation, a stronger yen that hurts profit on US sales, and the prospect that its production in Japan won’t recover until November.

Mr Jeff Schuster executive director of forecasting for JD Power & Associates said that "It is safe to say that GM is crawling back in the mature markets and growing quickly in emerging markets. It's a challenging road ahead for Toyota. They face some real issues in the US."

_{(Sourced from: www.steelguru.com)}

Beiqi Foton Motor to set up truck plant in Maharashtra- May 4

In a rare case of a Chinese company investing directly in India instead of relying on exports a leading truck manufacturer has inked an investment deal with the Maharashtra government.

State media said Beiqi Foton Motor one of China's leading manufacturers of commercial vehicles plans to put in USD 380 million on an assembling plant in Maharashtra. The company has also promised to mostly source parts and components from local producers instead of importing them from China. The company termed it as an important move in its globalization drive.

A report from Mumbai suggested the proposed plant will produce 100,000 trucks a year.

The official Xinhua news agency quoted the company's public relations chief Wang Shuguang that the plant will have the full range of production capabilities to churn out both heavy and light trucks to meet different kinds of demand in the Indian market.

Wang said that the location of the plant has not been finalized and could be in Mumbai or Pune with several options available. The Beijing based Beiqi Foton Motor will also establish a separate company to handle sales. The company sold over 600,000 vehicles in 2009, which was highest by any company in the world. It also has vehicle assembling plants in Indonesia, Thailand, Mexico and South Africa.

Beiqi Foton Motor made a net profit of USD 168.7 million in the first half of this year rising at a stunning rate of 153% over the level achieved in the same period last year.

_{(Sourced from: www.steelguru.com)}

Base metals fall on reduced industrial off take- May 3

It is reported that barring tin most of the base metals fell in an otherwise sluggish non-ferrous metal market here today on lower stockist demand amidst reduced industrial off take.

Meanwhile, tin prices advanced owing to rising demand from alloy industries. Copper cable scrap and copper wire bar dropped by INR 6 per kilo each to INR 464 and INR 492 from last Saturday's closing level of INR 470 and INR 498.

Nickel dipped by INR 5 per kilo to INR 1,335 as against INR 1,340 previously. Copper scrap heavy, copper utensils scrap and lead moved down by INR 3 per kilo each to INR 455, INR 420 and INR 124 respectively as compared to INR 458, INR 423 and INR 127 last weekend.

Copper sheet cutting and brass sheet cutting edged down by INR 2 per kilo each to INR 441 and 318. Copper armiture and brass utensils scrap softened by a rupee per kilo each to INR 447 and INR 312. However, tin prices rose by INR 5 per kilo to INR 1,615 from INR 1,610.

_{(Sourced from: www.steelguru.com)}

Japanese  Auto output down by 57% in March- May 02

The Japan Automobile Manufacturers Association said that production of cars, trucks and buses in Japan plunged 57.3% in March, down for the sixth consecutive month, due to parts shortages and other disruptions caused by the March 11th 2011 earthquake.

The association said that vehicle output fell to 404,039 vehicles in March 2011 from 945,220 vehicles in the same month a year earlier.

Domestic vehicle demand totaled 437,599, down 35.1%.

_{(Sourced from: www.steelguru.com)}

Thermax receives an order of INR 366 crore- April 29

Thermax Limited has informed BSE that the Company has received an order valued at INR 366 crore for a 120 MW captive power plant from a leading steel sector PSU.

The scope of supply includes two blast furnace gas fired boilers and one steam turbine generator along with necessary auxiliaries and power evacuation system.

This is one of the biggest blast furnace gas fired captive power plant order received by the company and reinforces its leadership position in this segment.

_{(Sourced from moneycontrol.com)}

Automakers start testing vehicles for radiation- April 29

The Japan Automobile Manufacturers Association said that the country's automakers have started testing their vehicles for radiation prior to shipments to domestic and overseas markets, in a bid to mitigate growing concerns among customers about purchasing Japan made products due to the crisis at the Fukushima Daiichi nuclear power plant.

The move comes on the heels of growing import restrictions on Japanese products. A total of 29 countries and regions have suspended or tightened controls on agricultural and dairy product imports as well as processed foods from Japan .

Japanese shipping company Mitsui OSK Lines Limited said in late March 2011 that its container ship had to head back to Japan , after Chinese authorities claimed high levels of radiation from the vessel. China detected radiation worth 3.5 microsievert per hour, compared to a radiation dose of around 100 microsievert to which a chest X ray typically exposes a patient.

The automobile division of the Ministry of Economy, Trade and Industry said it hasn't received reports from any foreign countries on introducing similar suspensions or strict measures on vehicles built and imported from Japan .

Still, a JAMA spokeswoman said Japanese car makers have received queries from customers at home and abroad about the safety of vehicles built in Japan .

JAMA, which represents 14 Japanese car, truck and motorcycle makers including Toyota Motor Corporation, said radiation levels recorded around production sites of Japanese car makers and ports from where vehicles are exported do not represent any threat to human health.

The auto association said that the tests implemented by the auto association show results that fall within the range designated by the Nuclear Safety Commission of Japan as being unthreatening to human health, based on the daily readings performed by the Ministry of Education, Culture, Sports, Science and Technology in every prefecture since March 25th 2011.

JAMA said that its test results are also lower than the maximum allowable limit  recommended by the International Atomic Energy Agency.

Mr Toshiyuki Shiga chairman of JAMA said in a statement that "JAMA is fully confident in the safety of all motor vehicles manufactured in Japan . At the same time, it is aware of the need for consumers everywhere to be assured of such safety."

The JAMA spokeswoman said that for vehicles for export, each car maker tests about 10 vehicles at ports for radiation per ship with the capacity to carry about 5,000 vehicles on average.

According to JAMA, Japan exported half of a total of 9.63 million vehicles produced in the country in 2010. By destination, Japan exported the biggest volume of 1.73 million vehicles to North America . Similar tests are being conducted for vehicles for the domestic market.

_{(Sourced from Dow Jones)}

Nissan Leaf wins world car of the year- April 28

The title of 2011 World Car of the Year has gone to the Nissan LEAF a zero emissions vehicle that is 100% electric.

Picking up the prize at the New York International Auto Show on April 21st, Mr Carlos Ghosn chairman and CEO of the automaker said that it was a great joy to have won the award.

Competition for the top spot came from the BMW 5-series and the Audi A8, with the jurors claimed that the LEAF is the gateway to a brave new electric world from Nissan. They added that the winning vehicle was the first electric motor in the world to be mass-produced and purpose built. It feels just like a normal car, only quieter.

Mr Ghosn noted that he believed the accolade validated Nissan's values for sustainable motoring. Friends of the Earth's Biofuels Campaigner Kenneth Richter recently claimed that transport is an important sector in terms of reducing greenhouse gas emissions. He advised putting stricter guidelines in place for vehicle manufacturers on how efficient they make their cars.

_{(Sourced from: www.steelguru.com)}

Lebanon Q1 car sales up by 7% with Kia in lead- April 26


Sales of new cars in the Q1 of 2011 increased by 7.3% from 6,039 to 6,483 compared with the same period last year with Korean cars leading the way in sales, the most popular models being Kia and Hyundai.

According to the New Car Importers Association in Lebanon, March sales in 2011 alone were 2,687 compared with 2,497 in the same period of 2010 an increase of 7.6%.

Q1 figures showed that Korean cars are still a bestseller in Lebanon with 2,803 cars sold, a rise in demand of 54.69%. This is followed by Japanese cars with 2,059 sales, a decline of 21.95%.

Demand for European cars has fallen by 10.3% with 1,629 sold this quarter compared with 1,816 new cars in the same period last year.

(Sourced from www.steelguru.com)

India's GDP to grow by 9% in 2011-12: CMIE- April 25


According to a leading economic think tank India's GDP is likely to grow at a brisk pace of 8.8% in 2011-2012.

The Centre for Monitoring Indian Economy said that domestic environment is conducive for growth and private financial consumption expenditure is projected to grow by a healthy 7.5% and gross fixed capital formation by 14.6%.

According to CMIE the performance of the economy in FY 2011 has been robust and real GDP is estimated to have grown by 9% during the fiscal. This has been powered by a rebound in the agricultural sector following the drought in 2009-2010.
In FY 2012 the agricultural and allied sector is projected to grow by 3.1% on top of the 5.1% growth estimated in 2010-2011. CMIE anticipates the industrial sector including construction to grow by 9.4% during 2011-2012 against 8.5% estimated in 2010-2011.

(Sourced from: www.steelguru.com)

Automakers start testing vehicles for radiation- April 21

The Japan Automobile Manufacturers Association said that the country's automakers have started testing their vehicles for radiation prior to shipments to domestic and overseas markets, in a bid to mitigate growing concerns among customers about purchasing Japan made products due to the crisis at the Fukushima Daiichi nuclear power plant.

The move comes on the heels of growing import restrictions on Japanese products. A total of 29 countries and regions have suspended or tightened controls on agricultural and dairy product imports as well as processed foods from Japan .

Japanese shipping company Mitsui OSK Lines Limited said in late March 2011 that its container ship had to head back to Japan , after Chinese authorities claimed high levels of radiation from the vessel. China detected radiation worth 3.5 microsievert per hour, compared to a radiation dose of around 100 microsievert to which a chest X ray typically exposes a patient.

The automobile division of the Ministry of Economy, Trade and Industry said it hasn't received reports from any foreign countries on introducing similar suspensions or strict measures on vehicles built and imported from Japan .

Still, a JAMA spokeswoman said Japanese car makers have received queries from customers at home and abroad about the safety of vehicles built in Japan .

JAMA, which represents 14 Japanese car, truck and motorcycle makers including Toyota Motor Corporation, said radiation levels recorded around production sites of Japanese car makers and ports from where vehicles are exported do not represent any threat to human health.

The auto association said that the tests implemented by the auto association show results that fall within the range designated by the Nuclear Safety Commission of Japan as being unthreatening to human health, based on the daily readings performed by the Ministry of Education, Culture, Sports, Science and Technology in every prefecture since March 25th 2011.

JAMA said that its test results are also lower than the maximum allowable limit  recommended by the International Atomic Energy Agency.

Mr Toshiyuki Shiga chairman of JAMA said in a statement that "JAMA is fully confident in the safety of all motor vehicles manufactured in Japan . At the same time, it is aware of the need for consumers everywhere to be assured of such safety."

The JAMA spokeswoman said that for vehicles for export, each car maker tests about 10 vehicles at ports for radiation per ship with the capacity to carry about 5,000 vehicles on average.

According to JAMA, Japan exported half of a total of 9.63 million vehicles produced in the country in 2010. By destination, Japan exported the biggest volume of 1.73 million vehicles to North America . Similar tests are being conducted for vehicles for the domestic market.

_{(Sourced from Dow Jones)}

Japanese domestic steel demand to fall as carmakers cut output- April 20

Demand for steel in Japan may fall this fiscal year as customers including carmakers slash production following the nation's worst earthquake.

Mr Eiji Hayashida chairman of Japan Iron & Steel Federation said that "The earthquake has had a serious impact on Japanese manufacturers. Even if there's demand for restoration and reconstruction, domestic demand will likely fall."

Mr Hayashida said that the industry has yet to give an updated forecast for steel production after the quake. In December 2010, the federation said domestic steelmakers will produce about 110 million tonnes of crude steel for the financial year through March 2012, little changed from the year earlier.

Mr Hayashida said that while the disaster created an emergency demand for steel used in temporary houses for evacuees, the amount is not significant.

He added that steelmakers expect demand for steel used in reconstruction of areas affected by the earthquake and tsunami will increase after the summer. He is also the president of JFE Holdings Inc's steel unit, Japan's largest mill after Nippon Steel Corporation.

Mr Hayashida said that steelmakers will also unveil a plan by the end of this month on how the industry can save electricity. The earthquake prompted Tokyo Electric Power Co. to shut power plants including the crippled Fukushima Dai Ichi nuclear facility. The government wants companies to reduce power use by as much as 25% this summer to avoid large scale blackouts.

According to the Japan Automobile Dealers Association, the 9.0 magnitude earthquake and tsunami that struck Japan on March 11th 2011 prompted automakers and electronics companies to shut plants, delaying steel sales to customers. New car sales in Japan decreased 37% in March from a year earlier, the biggest drop for the month.

_{(Sourced from: www.steelguru.com)}

Rise of car sales in China and India will help aluminum- April 19

India Infoline reported that aluminum will find it much easier to sail on volatile markets than any other metal in the business. The rise of Car sales in China and India is expected to help the metal considerably when other metals like copper, lead and zinc are facing demand crisis and rise of supplies. Aluminum is used extensively in Automobile sector because of its lower weight, malleability and ductility.

China Automotive Industry Association in their report released recently mentioned that the vehicle sales in the month of January and March 2011 marked increase of 8% over the same period last year. Passenger car sales were 3843900 units marking an impressive rise of 9% during quarter ending March. In March, passenger car sales were up by 6.5%.

Indian Automobile industry registered impressive numbers. Domestic Sales for 2010 ton 2011 was 26.17% up amounting to 15513156 vehicles. However, the month of March 2011 registered a lower growth rate of 19.42% as compared to the cumulative data of 2010 to 2011. Passenger Vehicles segment grew at 29.16% during April to March 2011 over same period last year. Passenger Cars grew by 29.73%.

MCX Aluminum is seen trading at INR 118.6 per kilogram up 0.3%. Moves towards INR 120 to INR 121 levels are possible looking at the intra day charts of the metal. Support for the contract will be at INR 118 per kilogram.

_{(Sourced from www.steelguru.com)}

South Korea and Japan trade hits record high in March- April 19

Yonhap reported that South Korea's trade with Japan reached an all time monthly high in March 2011 despite the devastating earthquake that struck the island nation.

According to the report by the Ministry of Knowledge Economy, trade between the two neighboring countries topped a record USD 9.5 billion in March 2011, up from the previous high of USD 8.60 billion tallied in December 2010.

_{(Sourced from www.steelguru.com)}

US metal imports slow in February and Q2 recovery seen- April 18

US imports of aluminum and copper had slowed in February but if seasonal demand trends hold true, shipments should recover in the months ahead.

Data from the US International Trade Commission showed that copper imports fell for a third straight month in February to 50,494 tonnes. The February figure brought the 2 month total to 107,892 tonnes down more than 11% from 121,626 tonnes in the corresponding period of 2010.

Inbound shipments of aluminum slowed to 103,891 tonnes in February bringing total imports for the first 2 months of the year to 210,083 tonnes, over 17% below the 254,281 tonnes reported last year.

Analysts said that record setting snowfall totals across much of the country caused many end-users and manufacturers to either cancel or delay bookings of material in January and February. But as metal intensive industries like construction and automotive head into the seasonally stronger second quarter, import levels should respond accordingly.

Mr Nicholas Snowdon an analyst with Barclays Capital in New York said that "Demand signals from the US for base metals are pretty positive and heading in the right direction. As auto plants pick up it's likely to have a positive effect on the level of inventory OEMs and automakers will have going forward.

Mr Sterling Smith an analyst with Country Hedging Inc in Minnesota believes Japan's supply chain troubles would likely translate into greater US auto sales and with it stronger aluminum demand. He said that if you have a person who is not brand-loyal and wants their car, that's going to leave them with domestic opportunities which would mean more domestic use of aluminum and use by automakers who are not having any parts issues. It could be bullish for aluminum and I think it could be bullish for a company like Ford.

The US auto industry snapped 4 year sales decline in 2010 including three consecutive sales months above the 12 million unit annual rate to close the year. Most analysts expect double digit growth in 2011 and further gains in 2012.

Barclay's Snowdon agreed saying that he saw few reasons to think the auto sector would experience a significant softening in 2011. Given that the construction sector remains very soft, we have heard nothing to believe that the transport sector is going to be anything but a positive influence on metals demand this year.

_{(Sourced from www.steelguru.com)}

Tanzania mining industry to grow by 7% in next five years- April 14

The Business Monitor International in a report said that Tanzania’s mining industry will grow at an average rate of 7.7% for the next five years ushered in by commencement of coal mining aimed at generating electricity in the country.

The Business Monitor International, MBI said that Tanzania has huge deposits of unexploited coal, nickel, Uranium and cobalt which the country is planning to exploit in the next few 2 to 3years to boost its mining sector.

The company in a statement said that “Tanzania has great potential particularly in its coal, over the coming years, the country looks to coal-fired power stations to offset an energy shortage that is holding back its development.”

Tanzania has a variety of many minerals which include gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones, some of, which are unique such as tanzanite, Coal, uranium, and various industrial minerals such as soda, kaolin, tin, gypsum, phosphate and dimension stones.

According to the report, Tanzania will soon begin to exploit some of these minerals especially coal at Kiwira coal mine to support gold production. Tanzania has a total of about 1 .5 billion tonnes in coal reserves. The country’s only coal mine at Kiwira has an average annual output of 35,000 tonnes.

Last month, Tanzania’s Parliamentary Committee on Parastatal Organisations’ Accounts urged the country’s National Social Security Fund to implement an electricity project at the Kiwira coal mine to alleviate power outages.

Tanzania in February at a 5th African petroleum conference in Kampala said it preparing to procure interested contractor for commencing exploitation of uranium and nickel.

The MBI report added that, the country will soon commence diamond production and exportation and is planning to increase output to 600,000 carats annually over the medium term.

Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Diamonds Mine at Mwadui.

Mining sector contributes about 2.5% of the country’s GDP, which is projected to account for up to 10% by 2025.

_{(Sourced from: www.steelguru.com)}

BHEL to hike capacity in Bangalore unit- April 14

The Bangalore divisions of the Bharat Heavy Electricals Ltd have drawn up plans to augment the annual manufacturing capacity to 20,000 Mw during the present fiscal 2011 to 2012 and increase of 33.3% over the previous year.

Mr G Ganapathiraman executive director BHEL said that “As part of the company’s Strategic Plan 2017 the Bangalore based divisions of the BHEL have embarked on strategic measures to grow further in their existing business areas. They are also diversifying in emerging growth areas like transmission, transportation, solar photovoltaics, steel business, disc insulators for UHVAC transmission lines, porcelains, composite long rod insulators among others. The cost of this capacity addition is estimated to be INR 54 crore. Last year the divisions in Bangalore completed the capacity augmentation to 15,000 Mw. Over the last three years, the BHEL has spent INR 147 crore for capacity expansion.”

Besides this capacity expansion, the Ceramic Business Unit which has manufacturing plants in both Bangalore and Jagadeeshpur in Uttar Pradesh is also setting up a plant to manufacture glass insulators for transmission lines. Mr D Ashok executive director of CBU said that “Presently we have a capacity to produce 100,000 units per annum at Jagadeeshpur. We will increase the capacity to 1.8 million units per annum at an investment of INR 100 crore by setting up a plant.”

Power Grid Corporation of India Ltd is the largest customer of BHEL for glass insulators. BHEL supplies 70% of the production to PGCIL. Its other customers include ABB, Areva and state power utilities.

Mr Ganapathiraman said during 2010 to 2011 the Bangalore divisions of BHEL have recorded the highest ever turnover of INR 3,081 crore, showing a growth of 28% over the previous year. The profit before tax has shown a growth of 35% to touch INR 900 crore during the year. In Bangalore, BHEL has three divisions the electronics division, industrial systems group and ceramic business unit.

_{(Sourced from: www.steelguru.com)}

Kazakhstan boosts steel production 36% in Q1- April 13

Interfax quoted the State Statistics Agency said Kazakhstan produced 1.235 million tonnes of crude steel in Q1 2011 up by 36.5%.

Output of flat steel products grew 21.3% to 794,820 tonnes. Kazakhstan produced 57,853 tonnes of tin-plate and tin-plated sheet up by 18.7% and 154,361 tonnes of galvanized steel and up 9.9%.

Ferroalloy production rose 0.1% to 419,178 tonnes. Crude iron ore production rose 3.2% to 12.14 million tonnes, manganese ore production rose 6.4% to 638,000 tonnes and chrome ore grew 7.5% to 1.33 million tonnes.

Kazakhstan raised iron ore pellet production 2.7% in Q1 to 2.228 million tonnes.

_{(Sourced from: www.steelguru.com)}

Hyundai Steel begins construction of third BF- April 13

Hyundai Steel Co held a ceremony to mark the start of construction on its third blast furnace in the west central province of Chungcheongnam.The new furnace will have a capacity to produce 4 million tonnes of crude steel a year and would cost KRW 3.26 trillion.
It is projected to come on stream in September 2013, two years earlier than planned.
It is expected to help push the company's crude steel capacity to 24 million tonnes a year.

_{(Sourced from www.steelguru.com)}

Chinese auto sales reach 5 million units in Q1- April 12

As per the latest data released by China Association of Auto Manufacturers, Chinn homemade auto sales got to some 4.98 million unites in the first quarter up by 8.08%YoY with growth sharply dropping compared with the same period of last year.

The data showed that home made car production and sales totaled 1.827 million and 1.828 million unites increasing by 5%YoY. Home made car production and sales accumulatively reached 4.90 million and 4.98 million unites during January to March period up 7.48% and 8.08%. The growth sided by 69.51% and 63.7%.

Mr Dongyang vice chairman and secretary general with CAAM said the receding growth of auto production and sales was owing to the expiration of purchases duty incentives, oil price hike, auto purchase restrictions in metropolis like Beijing, Shanghai and Japanese massive earthquakes.

He said that Japan earthquake fully affected China auto industry, but for now, it was still difficult to assess the overall influence of the earthquake on China auto industry.

As per report, the home made auto sales of top ten automobile enterprises are Shanghai Automotive Industry Corporation, DongFeng Motor Corporation, Changan Motor Corporation, First Automobile Works etc which accounted for 87% of the whole sales volume in China.

_{(Sourced from: www.steelguru.com)}

Casting and Rolling OMK has increased production by 18% in Jan-March- April 12

Casting and Rolling Complex in Q1 of 2011 increased the volume of production of hot-rolled coils by 18.2% compared to the same period last year up 260,300 tonnes. In addition it produced 53,200 tonnes of leaves and 65.3 tonnes of strips.

Cumulative shipments of hot-rolled coil, strip and sheet for the quarter amounted to 257,800 tonnes.

In March, timber produced 94.7 tonnes of hot rolled coils which is 14.5% more than in March 2010. Including produced 16,200 tonnes of sheet and 23.7 tons of strips. Shipped to customers 94100 tonnes.

_{(Sourced from: www.steelguru.com)}

Brazilian auto sales hit record in Q1

Dow Jones reported that Brazil motor vehicle sales rose to a record in the first quarter as strong economic expansion boosted wages and consumer demand, even as the government moves to cool growth.

The Brazilian Motor Vehicle Manufacturers Association or Anfavea said last week that first quarter sales reached 825,161 units, an increase of 4.7%.

But March sales dropped by 13.5%  partly because there were fewer business days as the Carnival holiday fell in March this year as opposed to February last year. March sales were up 11.7%

The comparison was also affected by a spike in sales in March 2010 as consumers rushed to buy cars before a tax break expired. The government had eliminated the so-called IPI tax on auto sales following the 2008 financial crisis, but that tax cut expired last year.

_{(Sourced from: www.steelguru.com)}

Argentinean auto output in March up by 68%- April 8

Dow Jones reported that Argentina's automotive industry turned up the heat in March 2011 as production surged amid rising demand for vehicles of all types.

The Argentine Automobile Manufacturers Association or Adefa said that vehicle production soared nearly 68% MoM from February 2011 and rose by nearly 34%.

Car makers produced 70,487 cars in March 2011, up sharply from 42,051 in February 2011 and 52,669 in March 2011.

YoY car exports reached 38,994 units, up from 32,765 the previous month and 25,091 a year ago. Almost 83% of Argentina's car exports went to Brazil, while around 6.6% went to Europe and 3.2% to neighboring Uruguay.

Sales to local car dealerships rose by 25% to 70,583 units in March 2011 from 56,457 in February 2011. Sales were up by 29%.

Mr Anibal Borderes president of Adefa said that "Once again it's evident that exports play a major role in the local automotive industry, which imposes on the entire sector the need to continue improving competitiveness."

_{(Sourced from www.steelguru.com)}

Chile sees untapped copper in central region- April 8

It is reported that Northern Chile may be the heart of the world's copper mining industry but there is tremendous potential in the little explored central highlands.

Mr Laurence Golborne mining minister of Chile said that Chile needs to look at incentives to foster exploration by nimble junior companies in a business dominated by the likes of huge mining companies Codelco and BHP Billiton.

Mr Golborne said that "Chile has focused exploration in the far north where it is easiest. Chile produce's one third of the world's mined copper. But if you look in the central region we have enormous deposits. There are little explored areas that could have enormous potential though some see greater growth potential in faster growing regions like the Zambia and Congo copper belt or neighboring Peru.”

Exploration in Chile's north is more straightforward given desert terrain that makes geology easier to survey and the population is relatively thin. In central Chile, vegetation masks rock formations and communities are more widespread, complicating exploration efforts. Chile wants junior mining companies to list on its local stock exchange and have better access to local capital markets, following in the steps of mining powerhouses Canada and Peru.

The government is also planning to review the tax code to lure smaller miners into the country which holds by far the biggest reserves of copper on the world. Current high prices are a great incentive for exploration and Golborne expects them to remain strong even if top consumer China's torrid economic growth slows further.

_{(Sourced from Reuters)}

Manufacturing growth slows for largest EU economies- April 5

According to the latest PMI data, the rate of German, French and UK manufacturing output growth slowed slightly in March 2011.

Germany's purchasing manager index eased slightly to 60.9 from 62.7 in February. Any figure above 50 indicates expansion of the sector. Manufacturing output in the Federal Republic has grown for the last 21 months and the survey suggested that growth in the short term should remain strong, with backlogs of work increasing.

The French data registered the smallest decline, falling from 55.7 in February to 55.4 in March 2011 but remaining easily above a 13 year average of 52.3.

The UK index fell from 60.9 in February to a five-month low of 57.1 in March 2011, well below analysts' forecasts. Higher energy and raw material costs were blamed for weak growth in new orders.

_{(Source from www.argusmedia.com)}

Guangqi Honda starts producing own brand auto- April 5

China Knowledge reported that Guangqi Honda Automobile Co a 50:50 joint venture hold by automaker Honda Motor Co and Guangzhou Automobile Group Co recently started manufacturing its first own brand vehicle, the Everus S1, China first JV produced own brand vehicle.

Guangqi Honda dealers will launch the new car in April, which is expected to help Guangqi Honda further develop in the Chinese market.

Guangqi Honda said the Everus S1 which will be produced at Guangqi Honda Huangpu factory in Guangzhou of Guangdong Province will be available in 1.3L and 1.5L versions. The Everus S1 is estimated to be priced below CNY 70,000 per unit, 20% lower than the Honda Fit.

Guangqi Honda Huangpu factory is also responsible for Chinese production of the Honda Accord and City.

_{(Sourced from Gasgoo.com)}

Philippines car assemblers eye purchase of local parts- April 4

Manila Standard Today reported that the Chamber of Automotive Manufacturers of the Philippines Inc said that its members are considering to buy locally manufactured parts and components to address supply disruption from Japan.

Ms Elizabeth Lee, group president, told Manila Standard that "In principle we are open. Requirements will depend per brand. The objective is to minimize impact to our customers. All options will be considered."

The Board of Investments earlier urged car assemblers to get their parts and components from local producers to avoid disruptions in the assembly of completely knocked down units in the country.

Trade Undersecretary and BoI managing head Mr Cristino Panlilio said he recommended to some car assemblers in the country to purchase their parts and components from local sources to avoid disruptions in the supply chain.

He said local assemblers had informed him of the imminent scarcity of car parts and components. He added that "The local assemblers said we could have a problem if supply of car parts becomes scarce in the next couple of days."

Ms Lee said that assemblers of Japanese brands were relying on inventories on hand and those which may have been shipped out or in transit prior to the earthquake and tsunami in Japan. She added that "In Japan, some plants are beginning to resume operations. However, other plants to include some suppliers of parts and components are still working on resumption of operations. Hence, some key parts may be affected."

Ms Lee said that "The supply chain is critical and all brand makes are putting in great efforts to support parts suppliers as well. Further, logistics is hampered which may result in delays in the delivery of parts and vehicles. The effect of these on the Philippines’ local assembly is in the supply of parts which may either be part of the CKD pack or for regular parts purchases."

She also said vehicles were available for sale given the inventories on hand. She added that "We are hopeful that the situation will improve soon enough even with limited operation levels to help stem any shortage should this arise."

_{(Sourced from www.steelguru.com)}

EU emissions rose by more than 3% in 2010- April 4

It is  reported that emissions from factories and power stations in the European Union carbon market rose 3.5% in 2010 as freezing weather boosted energy consumption.

According to data published on the EU website, emissions increased to 1.754 billion tonnes in 2010, the first gain in three years, from 1.695 billion tonnes for the same installations in 2009. While the advance exceeded the 2.7% median estimate of nine analysts surveyed last month by Bloomberg, EU carbon prices were little changed today.

Mr Trevor Sikorski, a London based analyst at Barclays Plc, said that "The numbers give us no cause to revise our price forecast for the coming years."

He estimates that the EU market has surplus allowances of about 455 million tonnes for the five years ending in 2012, so slightly higher than forecast 2010 emissions are neither here nor there.

The latest figures show that the EU allocated more permits than emitters needed for 2010. The program had an oversupply amounting to 1.9% of the total in 2010, down from 4.8% in 2009. About 13,000 participants in the six year old EU program, the world's biggest greenhouse gas market, are required to turn in permits to match the carbon figures published today, or face a fine of EUR 100 a tonne.

Carbon permits for December 2010 fell by 0.3% to EUR 17.23 a tonne on London's ICE Futures Europe exchange. They have jumped 21% this year, helped by speculation that demand for fossil fuels and emission allowances will increase as Europe reduce its reliance on reactors in the wake of this month’s nuclear disaster in Japan.

According to an estimate from Bloomberg New Energy Finance in London based on today's data, EU emissions from the power industry rose 0.4% in 2010, excluding facilities that distribute heat. That compares with its forecast of 0.3%.

According to the Met Office, the economic recession curbed EU emissions by 11% in 2009. The recovering economy and cold weather helped boost output last year. December was the coldest on record in the UK. France temperatures were 3.1 degrees Celsius (5.6 Fahrenheit) below average in January 2010.

The iron and steel sector has accrued a 212 million tonnes surplus of allowances so far because the bloc's governments gave away too many permits. Those allowances are worth about EUR 3.4 billion at current prices, equivalent to Europe's annual financial support for renewable power.

_{(Sourced from www.steelguru.com)}

Nissan, Renault consider joint holding company- April 1

Japan's Nissan Motor Co and French carmaker Renault SA are considering establishing a joint holding company, a media report said Thursday

The proposed company would put Nissan and Renault under a single umbrella, Nissan President Carlos Ghosn told the Nikkei business daily.

The process could take place in two or three years, Ghosn, who is also chairman of Renault, told the daily.

Ghosn said shareholders' interests must be taken into consideration, suggesting that Nissan and Renault will remain listed. The French government, which owns a 15% stake in Renault, will also have a say, he told the daily.

If realized, the plan would mark the first time that major carmakers in countries across the globe came together under a single holding company, the Nikkei said.

The plan calls for Russia 's leading automaker AvtoVaz, which is 25% owned by Renault, as well as Romania 's Dacia and South Korea 's Renault Samsung Motors - both subsidiaries of the French carmaker - to move under the proposed umbrella, the daily said.

In 2010, Nissan sold a record 4.08 million vehicles globally, up 21.5% from the previous year, as sales in China exceeded one million units for the first time.

Other emerging markets such as Russia , India and Brazil are also key for the Japanese carmaker.

Renault owns a 44.3% stake in its Japanese partner while Nissan holds 15% of the French carmaker's shares, the daily said.

_--IANS

World Steel: Global steel production to hit new record high this year- April 1

Mr. Ian Christmas, the Secretary of World Steel Association, indicated that the recovery of economy in China and emerging economic nations would boost the global steel production to hit the new record high this year.

In addition, he said that even the tight monetary policy might depress the rise of the economy. However, the steel production in these counties still keeps soaring this year.

Although some analysts pointed out that China ’s market is getting sluggish, Mr. Christmas still believes that the global steel market would represent robust growth rather than economic recession in the global steel market in next few years. He expected the steel output in China will keep hiking by over 5% of growth rate in the future.

Automakers may lose 600000 vehicles- Mar 31

Bloomberg reported that global automakers may lose production of 600,000 vehicles by the end of the month as the earthquake in Japan halts assembly lines and work at suppliers including the maker of a paint pigment.

Mr Michael Robinet VP of IHS Automotive said that "About 320,000 vehicles may have been lost worldwide as of March 24th 2011 and manufacturing at plants in North America may be affected when parts supplies start running out as soon as early April 2011. The next surge of shutdowns comes when the pipeline of parts that were already built dries up. The rate of lost production will accelerate once North American plants join in."

Toyota Motor Corporation said that it has lost output of 140,000 vehicles and Honda Motor Co has lost 46,600 cars and trucks and 5,000 motorcycles. Mitsubishi Motors Corporation's was lowered by 15,000. Ford Motor Co hasn't lost any output.

Ms Natsuno Asanuma, a spokeswoman for Honda, said that its production in North America may be disrupted after April 1st 2011 because quake damage is restricting parts supplies. Plants in Ohio , Alabama , Indiana , Canada and Mexico may be affected.

Mazda Motor Corporation, which had said its production was reduced by 31,000 cars, suspended US dealer orders for vehicles built at its two Japanese car factories because of supply disruptions caused by this month's earthquake and tsunami.

Mazda plants in Hiroshima and Hofu have stopped production of new models. Mazda makes the Mazda2, Mazda3, RX-8, MX-5, CX-7 and CX-9 in Japan . While neither plant was damaged, access to parts and supplies has been crimped in the aftermath of the disaster, Nissan Motor Co, General Motors Co and other companies haven’t provided details on their possible losses.

Merck KGaA has lost production of a metallic automotive paint pigment called Xirallic because its factory is 28 miles from the Fukushima Dai Ichi plant that was damaged by the earthquake and tsunami, Gangolf Schrimpf.

_{(Sourced from www.bloomberg.com)}

EU to ban fuelled cars from cities by 2050- Mar 31

The European Union has planned to ban all petrol and diesel cars by 2050, and replace them with alternatives such as electric and hydrogen powered vehicles.

Recently unveiled EU strategy states: "By 2050, key goals will include: No more conventionally fuelled cars in cities" The aim is to achieve "essentially CO2-free movement of goods in major urban centres by 2030". It also calls for a move towards "close to zero fatalities in road transport".

In response to the commission's decision, UK Transport Minister Norman Baker said it is right the EU sets targets for carbon reduction but it is not right for them to get involved in how this is delivered in individual cities.

Critics branded the EU scheme a 'fantasy'. They said it was based on untried technology and warned Britain's rail network was already seriously overstretched, as EU chiefs also plan to shift half of all long-distance car journeys from road to rail.

According to Automobile Association President Edmund King, the reality is, by 2050, fossil fuel will be so expensive that a new approach to personal mobility will be inevitable.

However, Stephen Glaister director of the Royal Automobile Club Foundation pointed out that goals should be realistic and achievable. "Cars are already getting greener. There is little sense in demonizing one type of vehicle. What you need is for all cars to meet stringent environmental targets no matter what fuel they use," he said.

"Promoting the use of battery-powered vehicles is no panacea if the electricity they consume has been produced by burning fossil fuels," The Daily Express quoted Glaister, as saying.

Siim Kallas, European Commissioner for transport said the new strategy can help in breaking transport's dependence on oil without sacrificing its efficiency and compromising mobility.

The commission denied it wanted to ban cars from city centres but said "phasing out conventional combustion engines is a realistic objective". --ANI

TATA Motors to invest GBP 50 million UK R&D- Mar 31

Daily Telegraph reported that TATA Motors, the owner of Jaguar Land Rover, is to invest around GBP 50 million in its research & development base in the Midlands over the next two years, in a vote of confidence for UK manufacturing.

TATA has recently developed the Pixel city car, which the company is targeting at European drivers. The automotive maker plans to hire 100 new engineers at the TATA Motors' European Technical Centre, boosting the workforce by more than 40% to 340, as the company steps up its focus on low carbon technologies.

TMETC has developed TATA's Vista electric vehicle and the Pixel city car, which the company is targeting at European drivers. The centre is based at the University of Warwick and is operated in partnership with WMG, formerly known as the Warwick Manufacturing Group. TATA has invested GBP 85 million since founding TMETC in 2005.

Mr Tim Leverton head of advanced and product engineering at TATA Motors told the Daily Telegraph that "This announcement represents a further demonstration of TATA's long term commitment to build and develop R&D facilities here in the UK ."

_{(Sourced from Daily Telegraph)}

POSCO becomes No 1 steel plate maker in the world- Mar 30

POSCO announced the completion of its new steel plate plant within its site at Gwangyang in South Jeolla .

POSCO held an opening ceremony for around 300 guests and employees on Monday.

The company said that the new steel plate plant has a capacity of 2 million tonnes in annual production. Combined with the 5 million tonne capacity of its Pohang plant, its total production of 7 million tonnes makes it the world’s largest steel plate producer

Mr Chung Joon-yang chairman of POSCO said “We will solve steel plate shortages for different industries including shipbuilding. We will try to greatly soothe the supply shortage suffered by Koreans such as shipbuilding or heavy industries and stretch supplies for high-quality products while building global competitiveness.”

The previous leading producer of steel plates was Japan ’s JFE Steel Corporation with 5.5 million tonnes, followed by Nippon Steel Corporation with 5.2 million tonnes and Shanghai Baosteel Group Corporation with 4.9 million tonnes as of last year.

Last year, Korea imported 4 million tonne of steel plate out of its total demand of 11 million tonne but with the inauguration of the plant in Gwangyang, imports are expected to fall to 2.7 million tonnes.

_{(Sourced from koreatimes.co.kr)}

New Release for High-Accuracy Simulation of Flow, Solidification- Mar 30

FLOW-3D Cast makes simulation available to “a broader spectrum of users”

FLOW-3DCast features dynamic meshing capability to simplify model set-ups. It is provided with material libraries for metals, molds, filters and risers.

A new software introduced by FLOW SCIENCE INC. was developed specifically for casting process simulation, and promising “highly accurate flow and solidification results.” FLOW-3D Cast is the latest computational fluid dynamics program in the FLOW-3D series, which in addition to the original FLOW-3D software includes FLOW-3D/MP and FLOW-3D ThermoSET.
“FLOW-3D Cast should help make our highly accurate simulation tool accessible to a broader spectrum of users, including smaller shops, leading to reduced energy and material waste and increased productivity,” stated Flow Science Inc. president Thomas Jensen.
Among the functions available with FLOW-3D Cast are dynamic meshing, for easy model set-up; material libraries for metals, molds, filters and risers; and extensive post-processing capabilities, all of which may be accessed from a user interface designed by casting engineers. In its announcement, the software group explained that the interface for FLOW-3D Cast was developed initially with the trade name ConiferCast, at the VTT Technical Research Centre of Finland, in Espoo, and offered through Flow Science’s international distributors in some parts of Europe and Asia. Simtech Systems Oy, a VTT spin-off, has continued and extended the development. In 2009, Simtech signed a cooperative agreement with Flow Science to rename it FLOW-3D Cast and make it available worldwide.
FLOW-3D Cast is available in three versions — Basic, Extended, and Advanced — according to the functionality of the solver, and in several languages

Japanese earthquake - Automakers face paint shortage- Mar 29

The shortage of a specialty pigment that gives cars a glittering shine has prompted automakers to temporarily restrict orders on vehicles in certain shades of black, red and other colors.

Major automakers, including Chrysler Group LLC, Toyota Motor Co, General Motors Co and Ford Motor Co use the pigment, called Xirallic, produced at only one factory in the world the Onahama plant near the Fukushima-Daiichi nuclear power station in Japan .

The plant is operated by German chemical company Merck KGaA, and has been evacuated. Merck spokesman Gangolf Schrimpf said the company does not know when it will be permitted to reopen the plant, which was closed soon after the March 11 earthquake.

Chrysler told dealers it was restricting orders on vehicles in 10 colors, including two variations of black and three of red. Ford is slowing production of vehicles in tuxedo black and three variations of red.

Chrysler spokeswoman Katie Hepler called it a precautionary measure and said the company did not expect any effect on production at this time. Ms Hepler said that "We anticipate that we currently have an adequate ... supply to meet existing customer orders.”

She said other colors being restricted were Bronze Star, Rugged Brown, Hunter Green, Ivory, and Billet Silver.

Ford spokesman Todd Nissen said that Ford dealers will not be able to order black Expeditions, Navigators, F-150 pickup trucks and its Super Duty pickup. He said Ford was exploring other materials that could produce the same shiny effect as Xirallic. Ford is also working with Merck to see if the pigment can be produced elsewhere.

Merck's Schrimpf said it would be difficult to transfer production to another plant. After repairs, it will take between four and eight weeks to resume production.

Toyota spokesman Mike Goss said the company uses the pigment, but as far as he knew it had not restricted orders.

The earthquake and ensuing tsunami and nuclear crisis have revealed flaws in just in time production, which involves keeping low quantities of parts and supplies on hand to avoid high costs. A shortage of parts from Japan has prompted automakers like GM to temporarily halt production at assembly plants in North America .

_{(Sourced from Reuters)}

Indian aluminum utensil makers befuddled over excise duty- Mar 29

Imposition of excise duty on utensils has not augured well for the utensil manufacturers in the region with the industry being befuddled over the decision.

In the union budget 2011 to 2012 of the 370 items, which were exempted from central excise duty but chargeable to Value Added Tax, 130 items have been brought under 1% Excise duty.

Representatives from the aluminum utensil industry are not impressed with inclusion of utensils under the Excise ambit.

Mr Bharat Garg manufacturer president of Federation of All India Aluminum Utensil maintained levying of 1% excise duty on aluminum has left the industry confused.

Mr Garg said that “Earlier the compounding levy scheme was followed in utensil manufacturing whereby fixed amount were being charged upon. Now with the 1% excise duty imposed it has led to further chaos. The imposition of excise duty suggests exemption up to 15 million of sales are allowed for in the industry but with the compounding levy scheme also in place, this would lead to further chaos with regards to how the utensil industry could claim the benefits.”

Mr Jagadhri members of Aluminum Utensil Manufacturing Association also maintained while 370 items as mentioned in the budget speech are taxable under VAT, prejudice should not have been done with select items.

Mr Tarun Goyal Aluminum Utensil Manufacturing Association member maintained the imposition of 1% excise duty on utensils was certainly an unfortunate decision. He added “Since utensils also come under the necessity category, due care ought to be taken to exempt the item from Excise. The imposition of Excise duty would have a definite impact on the prices of utensils as well which are likely to firm up in the long run.”

Mr Goyal demanded that since utensils are necessary, the 1% excise duty should be removed from the utensils.

_{(Information from www.business-standard.com)}

Foundry group commits to “strategic, corporate energy management program”- Mar 28

Ferrous metalcasting group Grede Holdings LLC is joining the U.S. Environmental Protection Agency’s Energy Star Partnership in a commitment to improve energy efficiency at its 13 foundries and machine shops. Energy Star is a program coordinated by the EPA and the U.S. Department of Energy that identifies money- and energy-saving opportunities at manufacturing and commercial operations. Grede stated that it will “work to improve energy efficiency at its facilities and fight global warming.”

Grede was formed in 2010 by the merger of Blackhawk Foundry (USA), Citation Corp., and the former Grede Foundries Inc. It produces ductile, gray, and specialty iron castings for transport and industrial markets.

“Grede Holdings LLC has a long history of support for the environment and this is another step we are taking to ensure our leadership position as a good corporate citizen,” chairman Doug Grimm stated.  “We believe that a strategic, corporate energy management program will help us enhance our financial health and aid in preserving the environment for future generations.”

Specifically, the company indicated it would work with Energy Star to measure and track its operations’ “energy performance” where possible, using tools such as those offered by the partnership. Other Energy Star partnerships in the metalcasting industry have used the program’s energy assessment audits to measure energy consumption and identify areas of potential savings.

Grede further committed to develop and measure a plan consistent with the Energy Star Management Guidelines, to achieve energy savings; to “help spread the word” among its employees about the importance of energy efficiency; and to highlight its achievements with Energy Star recognition.

EPA established the Energy Star partnership in 1992 as a voluntary, market-based program to reduce greenhouse gas emissions.

“Energy Star partners such as Grede Holdings LLC are leading the fight against global warming by improving the efficiency of their facilities,” said Jean Lupinacci, chief of EPA’s Energy Star Commercial and Industrial branch.  “We applaud these efforts to help protect our global environment for generations to come.”

Aluminum prices to stabilize- Mar 25

Affected by Japan's earthquake, the aluminum prices have dropped by USD 127 per tonne to USD 2,426 per tonne in the early last week. However, the prices have turned strong to reach USD 2,536 per tonne in the end of last week due to the low inventory.

Industry sources indicated that the aluminum prices might go up and down in the short term on the unstable political situation in the North Africa and Japan’s massive earthquake.

However, market participants have still seen the positive outlook for the prospect as Japan’s reconstruction after the disaster might bring strong demand for aluminum. Also, once the political situation in the North Africa and Middle East stabilizes the aluminum may chance to soar.

_{(Sourced from YIEH.com)}

Krishnapatnam Port sets all India record for coal discharging- Mar 25

Krishnapatnam Port has set an all India record for discharging 71,587 tonnes of steam coal in just 24 hrs using the conventional unloading system.

According to e mail statement received by COALspot.com from Krishnapatnam Port, vessel MV Pedhoulas Trader carrying 77,005 tonnes called at Krishnapatnam Port on March 19th 2011. The discharging was completed in just 29 hours 50 minutes and sailed on March 21st 2011.

This feat surpassed Krishnapatnam Port’s previous record of 57,564 tonnes which was also an all India record then and was established barely a few days earlier on March 12, 2011 for vessel MV. Yusho Spica.

This achievement stands out as the fastest discharge rate, using conventional system, in the history of any port in India & possibly in the world. Krishnapatnam port has become synonymous for series of record shattering performances. One of India's largest and fastest growing ports, Krishnapatnam Port is swiftly developing into a major Coal hub of India.

The port has state of the art cargo handling equipments for quick turnaround of vessels making Indian exporters & importers globally competitive.

Apart from its strategic location, Krishnapatnam Port connects demand with supply, industry with port, rail & road with port and capital with business in a harmoniously mutual beneficial manner.

Hero, Honda ties may survive past expiry date- Mar 24

Japanese auto maker Honda is open to offering its motorcycle platforms to the Hero group even after the technology pact between the two ends in 2014.

Honda and the Hero group have ended their joint venture. However, they have signed an agreement under which Honda will give technology for new and upgraded bikes to Hero in return for royalty till June 2014.

The fee charged for use of Honda platforms and engines is valid only till 2014. But if the Hero group wants to continue using them, and wants our new platforms, we will charge a one-time fee instead of an annual royalty after that,” said Shinji Aoyama, president and CEO, Honda Motorcycle and Scooters India Ltd (HMSI).

Hero does not have a full-fledged research and development centre and has been depending on Honda for technology.

“The intellectual property rights (IPR) of both new and old engines and platforms which will be used by the Hero group are held by Honda. Even if Hero wishes to continue with our platforms, the ownership and IPR will rest with us. We can look at sharing platforms with Hero Honda”, said Aoyama.

HMSI is making an aggressive bid to enter the mass 100cc mobike segment. It is looking to treble its output to above 6.6 million over the next six-seven years from 2.2 million at present. This, the company hopes, will take it close to market leader Hero Honda, which is expected have annual sales of eight million units by that time.

HMSI’s two plants in Haryana and Rajasthan can produce 2.8 million units a year. The company is looking to make build a third mega plant, which could come up in western or southern part of the country.

“In six-seven years, we can have sales comparable to the market leader, and we can hopefully surpass that to become the leader four years after that. The average growth rate should be a minimum of 10 per cent”, said Aoyama.

To expand and make products more affordable, HMSI is keen to bring its finance arm into the country. The arm will be registered as a non-banking finance company. It was to debut last year but could not due to the stake-sale process. HMSI is yet to approach the Reserve Bank of India for a licence.

HMSI has around 1,200 sales outlets in the country compared to Hero Honda’s 4,000.

Baosteel starts auto steel shortage emergency scheme- Mar 24

Heavy earthquake disrupted production of top three automobile manufacturers in Japan . Top Three Japanese automobile manufacturers of Dongfeng Nissan, Honda and Toyota in Guangzhou were negatively influenced to different degree. Baosteel timely started south China automotive steel shortage emergency scheme to fully support stable production of the three manufacturers.

The three Japanese automobile manufacturers currently import steel plates and key spare parts from Japan . Earthquake stricken Miyagi-ken is one of important manufacture bases and spare parts assembling centers of Toyota ; Saitama-ken has three factories of Honda, crankshafts and gearboxes manufacturing factory, Nissan owns assembling plant and engine manufacturing plant in Fukuoka-ken and Fukushima-ken. On March 11th, heavy earthquake devastated automobile and core spare part manufacturing enterprises in these regions. Besides, steel plants of JFE, Sumitomo Metals and Nippon Steel Kimitsu etc stopped or reduced production.

Baosteel International timely arranged Southern Company to focus on the impacts of heavy earthquake on three Japanese automobile manufacturers in Guangzhou . Southern Company and Baosteel Co Ltd automotive plate department jointly formed emergence team to contact with chief purchasing department personnel and outlined emergency scheme.

On March 13th to cope with possible supply shortage of blockaded import, safeguard stable production, Baosteel firmly stated it would actively start up automotive steel domestic production scheme together with three manufacturers in Guangzhou after top three automobile manufacturers in Japan announced to fully terminate production.

Automakers eyeing substitute parts suppliers- Mar 23

Manila Standard Today reported that Japan 's major automakers are trying to find alternative parts suppliers to replace those knocked out of action by the colossal earthquake last week that has forced most of the country's car production to a halt.

Analysts said that production is likely to resume within the next few weeks, bouncing back from the March 11th 2011 quake and tsunami which has killed more than 6,000 people. Once parts are coming, automakers will be able to make up for much of lost production in coming months.

What's likely to hurt in the longer run are logistical difficulties caused by destroyed roads, and limits on electricity use. Power stations have suffered damage including several nuclear power reactors that are beyond recovery and leaking radiation in a still unfolding crisis. The yen’s recent surge to record highs could also hamper automakers.

Toyota Motor Corporation, maker of the Prius hybrid and Lexus luxury models, has stopped production at auto assembly plants throughout Japan .

Among Japan’s automakers, it will likely be least affected because most of its suppliers are located near the company’s Nagoya headquarters, southwest of Tokyo, which is far from the disaster’s epicenter in the northeast.

Earlier this week, Nissan Motor Co and Mitsubishi Motors Corporation restarted some plants using their stocks of parts, which will continue only as long as inventory lasts.

_{(Sourced from www.manilastandardtoday.com)}

Ukraine’s pig iron daily output continues rising- Mar 23

According to report of Metallurgprom , Ukraine ’s pig iron output increased by 1.3% in February compared to that in January.

Also, the figure indicated that the country’s average daily pig iron output goes up to reach 81,700 tons in first two weeks of March.

Besides, the average daily production of crude steel increased to 100,800 tons in first two weeks of March; that for rolled steel products hiked to 91,300 tons as well.

Seamless steel pipe prices soar in Italy- Mar 23

Despite of inactive purchase for seamless steel pipes in Italy , the local and overseas manufacturers have still continued increasing prices to reflect the rising production costs.

It’s known that Italy ’s domestic and export prices of seamless steel pipes have soared by €50/ton averagely in the past one month.

Furthermore, Tenaris, seamless steel pipe manufacturer predicted that the demand for seamless steel pipe would increase in 2011, driven by the rising drilling activity.

Japan auto cos. losing $150 mn/day- Mar 22

A week after the disaster in Japan erupted, its impact on automakers around the world is worsening.
Most of Japan's auto industry is shut down. Factories from Louisiana to Thailand are low on Japanese-made parts. Idled plants are costing companies hundreds of millions of dollars. And US car dealers may not get the cars they order this spring.
If parts factories in Japan stay closed for several more weeks, dealers and manufacturers will feel deepening effects: fewer cars, diminished revenue and frustrated customers.
Analysts say it's too early to calculate the cost to the overall industry. But Goldman Sachs estimates the shutdowns are costing Japanese automakers more than $150 million a day.
Even if Japanese auto plants manage to restart in the next few weeks and make up lost production, threats will remain. Hundreds of car part suppliers were near the epicenter of the earthquake and tsunami in northeastern Japan.
How fast they can feed parts to car plants is unclear. Even after plants restart, the threat of rolling electricity blackouts _ caused by Japan's crippled nuclear reactors _ could hamper production for months.
Potentially, the damage could reshuffle the entire industry. Rivals like Korea's Hyundai Motor Co. could snap up new customers if the Japanese companies can't serve them.
U.S. companies are hardly immune to the threats. General Motors Co. will halt production at its pickup plant in Shreveport, Louisiana, next week. It's the first time a U.S.-based automaker will have stopped production in North America over parts shortages caused by the Japan crisis.
The Shreveport plant relies on Japanese-made transmissions for the two small pickups it produces there. So the lack of parts from Japan is forcing the operation to close down. GM didn't say when production would resume at the site, which employs 900 workers.
``They haven't given us any indication,'' says Doug Ebey, head of the United Auto Workers local in Shreveport.
GM will pay the workers most of their normal take-home pay even though the plant isn't operating.
While most global plants have two to six weeks' worth of supplies now, those will eventually dwindle and could lead to more plant shutdowns, said Michael Robinet, director of global forecasting at IHS Automotive.
Before the earthquake, Japan was making 37,000 cars and trucks each day. It exported more than half of them. Fourteen percent of the 72 million vehicles produced worldwide last year were made in Japan.
But Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and others have shut down most of their facilities in Japan through at least the middle of next week. And they've warned that the shutdowns could be extended.
Goldman Sachs estimates the shutdown is costing Toyota more than $73 million a day. And it thinks the cost is about $25 million a day each for Honda, Nissan and Suzuki Motor Corp.
That means a 30-day shutdown would cost Toyota $2 billion. The automaker could absorb that hit without a major impact on earnings. Last year's safety recalls also cost Toyota an estimated $2 billion, and it still made a $2.3 billion annual profit.
But the latest crisis comes as the rising cost of the yen is already squeezing Japanese automakers' profits.
Japan is home to hundreds of auto parts suppliers, from big multinationals like Denso Corp., which sells parts to every major automaker and had $32 billion in sales last year, to tiny machine shops in northeastern Japan that make parts for suppliers.
It's been difficult for auto companies to assess the condition of their supplier network or the roads, railways and ports needed to deliver parts. Honda said it took nearly a week just to make contact with its top 100 parts suppliers.
Car companies are scrambling to find other suppliers from their networks, including overseas ones, to replace those disabled by the quake, said Koji Endo, analyst with Advanced Research Japan.
But for more complex parts like navigation display screens and computer chips, it won't be possible to find replacements. Toshiba Corp., which makes liquid crystal screens for autos, has closed one of its Japanese plants for at least a month.
Once suppliers are able to produce parts again, Japan could face rolling blackouts for at least six months because of the damage to nuclear power plants. Auto plants can't be easily restarted if the power goes out.
And electricity needs are enormous. It takes at least four hours to heat the ovens that dry automotive paint, for example. Without paint, the cars can't be finished. And the molten steel used for doors and other parts has to be dumped if it starts to cool.
``The lost efficiency is nauseating,'' Robinet said.
For now, at least, the effect on sales of Japanese cars is minimal. It would take two months for Japanese automakers to sell all the current stock of vehicles in the U.S.
And more than two-thirds of the vehicles Japanese automakers sell here are made in North America. So those plants should be able to keep supplying cars unless they run out of parts.
But there are wild cards. Edmunds.com Senior Analyst Bill Visnic said there could be a run on the Toyota Prius, a car exclusively made in Japan, because buyers are worried that dealers will sell out. That might help Toyota fetch higher prices. But on the other hand, buyers might shun Japanese cars because they're worried that dealers are inflating prices, or they're concerned about Japan's manufacturing capability.
``Those are all things that would have to stack up to where you would get a significant move in the market share,'' Visnic said.
So far, Nissan and Toyota have reopened a few plants in Japan for limited production, but most are scheduled to reopen next week. Automakers have pushed back their timetables once already, though, and it's possible the openings could be delayed if electric power is short or suppliers aren't ready.
There are some lucky companies. Chinese automaker Guangzhou Automobile Group, which runs joint ventures with Toyota and Honda, had three months' worth of parts when the earthquake hit, according to an analyst report from CLSA, a Hong Kong-based investment group. That was partly because the company started stockpiling parts after a work stoppage by Honda workers last year.

_{(Sourced from: www.financialexpress.com)}

Baosteel ranks the third on the world class steel makers list- Mar 22

According to the latest list of the 20 largest steel enterprises in the world, China 9 leading steelmakers are on the list. ArcelorMittal is still the top steel producer in the world. China HBIS and Baosteel rank the second and the third.

Last year, the world produced crude steel of record 1.41 billion tonnes up by 15%YoY. All the major steel producing countries reported double digit growth. However, the global steel production failed to recover the levels before the financial crisis.

The data shows that ThyssenKrupp crude steel production quickly rose by 52%YoY and the company ranks the 19th on the list.

_{(Sourced from MySteel.net)}

BaoSteel takes the lead in green purchase initiative- Mar 21

It is reported that Baosteel Group who takes the lead in China steel industry initiated in issuing “Green Purchase guide” which raises the threshold for future purchase from suppliers. Relevant insiders indicated that energy saving and emission reduction would be implemented in china steel industry as a rigid restraint in the next five years.

The green transition of China steel industry has started. According to Mr Ma Guoqiang general manager of Baosteel Co Ltd cost and environmental protection has become two key problems in the development of China steel industry. In the future, China steel products should keep competitiveness by being low in cost and environmentally friendly.

Data from China Iron and Steel Association shows that China steel industry has inched up investment in the past five years in energy saving, environmental protection, pollution control and comprehensive use of wastes. The ratio of annual investment in pollution prevention from large and medium sized steel mills has risen to 9% up by 2.7% from five years ago.

Before 2005, there were altogether 20 sets of coke dry quenching equipment in China while last year it reached 104 accounting for above 22% of the total capacity.

_{(Sourced from MySteel.net)}

Japan’s steelmakers resume shipments after the massive quake- Mar 21

It's reported the world's fifth largest steel producer, JFE Steel announced that it has restated the blast furnaces at its East Japan Works, both in Chiba and Keihin, after the rolling blackouts were being imposed across Japan after several power plants shut down.

JFE said its blast furnaces at the East Japan Works were restarted after prudent examination; however, the maximum efforts were being made to safeguard energy due to the limited supply of power.

At the same time, Nippon Steel reported that all its steelworks except the Kamaishi steelworks have all resumed steel shipments. The company said it was in the process of rebuilding the port and other facilities at the Kamaishi steelworks concentrating on making wire rod.

Brazil’s demand for copper expected to rise by 11% this year- Mar 18

Mr. Sergio Aredes president of Sindicel of Brazil indicated that the country's copper demand in 2011 may increase by 11%; moreover, it might surge further in 2012, driven by the construction projects for 2014 World Cup and 2016 Olympic Games.

Besides, Mr. Aredes pointed out that the majority of the copper would be imported from Chile and Peru as the country only owns a copper producer Caraiba Metais with the annual production of 200 thousand tons.

Meanwhile, Brazil’s copper consumption in 2010 was at 360 thousand tons, higher than 300 thousand tons in the economic crisis in 2009. Furthermore, it’s predicted that the country’s copper consumption in 2011 would have chance to exceed 400 thousand tons.

US scrap market predicted to stay strong in 2011- Mar 18

Reportedly, most analysts predicted that the US scrap market would probably stay strong in 2011.

Mr John Short director of NewsEdge Corporation indicated that steel mills might purchase more scrap in near further as the iron ore prices have continued soaring sharply.

However, the analyst of IHS Global Insight expressed the different point of view that the scrap prices might be down to USD 500 per long tonne in 2011as the recovery of the US economy would balance the demand and supply.

Chinese aluminum alloy exports to Japan down on quake- Mar 17

Reuters reported that China's aluminum alloy exports may fall in the coming two to three months as top buyer Japan cuts imports after a massive quake forced some car plants to stop production.

Demand from Japan is expected to fall sharply as firms like Toyota Motor Company which suspended production until March 16 face problems with power supply and other infrastructure hurdles caused by the earthquake.

Honda Motor Company the latest car manufacturer to announce production stoppage after Friday's quake and tsunami in northeastern Japan killed thousands said that it would suspend all production in Japan at least until March 20.

A manager at the Chinese supplier said that aluminum alloy is used in the manufacturing of cars. Japan bought about half of China's exports of the alloy last year. A major car manufacturer in Japan said it would accept metal on the way, but delay other contracted shipments.

They have to assess demand and see which plants can produce. A large aluminum alloy producer who supplied more than 50,000 tonnes out of China's just over 300,000 tonnes to Japan last year, was unable to confirm with Japanese clients on this month's shipments.

Supplier and trading sources said that Japanese may also delay contracted primary aluminum imports, also used in the manufacturing of cars. Any delayed supplies could enter the market in Asia and push down spot premiums.

Japanese buyers had agreed to pay premiums of USD 112 per tonne to USD 113 per tonne over cash London Metal Exchange aluminum prices for the delivery in April and June unchanged from the current quarter. But spot aluminum already traded at premiums of around USD 100 in South Korea, the top spot aluminum buyer in Asia, a trader in Seoul said, who saw the premium falling further in the near term.

_{(Sourced from Reuters)}

Russia's Severstal to expand domestic market this year- Mar 17

Mr. Alexey Mordashov, the president of Russia's Severstal, said the company would aim to expand the domestic market this year.

According to the statistics, the company’s total sales revenue increased by 61% last year; also, the exports soared by 25%

Severstal indicated that Russia’s automobile industry has played an important role to the market.

Furthermore, it’s known that a Russia’s company set up a joint venture with Spain’s Gestamp for the supply of automobile accessories. Hence, Severstal has seen the strong demand for steel from the automobile accessories.

Meanwhile, Severstal produced 11.1 million tons of steel in 2010, up by 16% year on year. At present, the company has aimed to expand the business to long products and has set up a plant with annual capacity of 1 million tons in Balakovo, mainly produces rebar, angle bar and channel bar.

Daimler, Rolls Planning Joint Takeover of Tognum AG- Mar 16

Rolls-Royce foundry would be a critical component in diesel engine venture Daimler AG and Rolls-Royce Group Plc have formed a joint venture to acquire Tognum AG, a designer and manufacturer of heavy-duty diesel engines. There is no indication of the value of the acquisition, nor its timetable. Daimler and Rolls-Royce are proposing that each of them would be an equal owner of Tognum.

Tognum directors have endorsed the takeover in principle, though no formal bid has been offered and no official response has been made. “We would create one of the world’s technology leaders in propulsion systems and distributed energy systems,” according to Tognum CEO Volker Heuer. “For us, Daimler and Rolls-Royce would be two financially strong strategic investors, who have made a clear commitment to Tognum’s continued internal and external growth strategy. It would put us in an excellent position to play an active role in shaping the further consolidation of the market.”

Tognum is a former DaimlerChrysler division that was sold to private investors in 2006, and then made a public offering in 2007. It supplies diesel engines, propulsion systems, and components for marine, energy, defense, and other industrial markets. The two prospective partners state Tognum would complement Daimler’s capabilities in engine technology and manufacturing, and access to global markets, as well as Rolls-Royce’s capabilities in integrated power systems and services, and market position in the marine, energy and defense markets.

Tognum’s operating divisions include the off-highway engine division of Detroit Diesel (the on-highway engine division is owned by Daimler); L’Orange GmbH, which develops injection systems for medium and high-speed diesel engines; and MTU Friedrichshafen, which manufactures diesel engines for locomotives, ships, military vehicles, agriculture, mining and construction equipment, as well as diesel generators and molten carbonate fuel cells.

The proposed joint venture would combine Tognum with Bergen , Rolls-Royce’s gas and diesel medium-speed engine business. The Bergen assets include a state-of-the-art ferrous foundry at Bergen , Norway . Bergen diesel and gas are marketed through Rolls-Royce’s marine and energy divisions.

Dr. Dieter Zetsche, chairman of the board of Daimler said: "Tognum is an excellent company, and the combination with Daimler and Rolls-Royce creates a win situation for all parties. The planned combination will provide a strong platform to realize the huge market potential."

Japan earthquake affects iron steel and nonferrous metal industry- Mar 16

JMB reported that the 9.0 magnitude Northeast Pacific Earthquake in Tohoku area, the largest earthquake in recorded history in Japan , left much destruction behind iron steel and nonferrous metal industry.

As per report, a lot of blast furnaces steel manufactures and electric furnaces steel makers have stopped operating in Tohoku and Kanto region after the disaster. In Tohoku area, the tsunami caused heavy damage including flooding to Nippon steel Kamaishi Works, Tohoku steel, JFE Bars & Shapes Corporation Sendai Works, Itoh Iron & Steel Ishimaki Works and Tokyotekko Hachinohe factory.

Some equipment was flooded. In Kanto area, it is also causing damage to distributing and processing base, Nippon Steel Kimitsu, JFE Steel East Japan Works, each electric furnaces and factories in Sumitomo Metal Industries Kashima works and Urayasu Steel Industrial Zone.

_{(Sourced from www.japanmetalbulletin.com)}

Japanese companies may set up steel plants in India- Mar 15

ET reported that deadly earthquake in Japan could likely push steel companies from that country to speed up plans to build manufacturing presences in safer and low cost countries such as India.

The report quoted some industry executives who have collaborated with Japanese steelmakers for joint ventures as highlighting this possibility.

Mr CS Verma chairman of SAIL, which has a tie up with Kobe Steel to use low grade iron ore for steelmaking, said that “It is too early to say anything, but definitely, Japanese companies should explore the idea of having larger manufacturing plants in India as we have the market as well as resources here.

Apart from a safety perspective, the strong steel demand pattern in India can be attractive for the technologically advanced country like Japan , which has established its supremacy in making high tensile sheets for car bodies and for use in consumer goods.

Japan ’s top four steelmakers Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel already have a presence in India through joint ventures.

The earthquake and tsunami has affected major steelmakers along Japan ’s Pacific coast. The coke oven gas plant at JFE Steel’s Chiba works caught fire. The integrated works in raw materials yards on Tokyo Bay such as Nippon Steel’s Kimitsu works and JFE Steel’s Chiba and Keihin works have also been affected. The most affected region, Sendai city itself is home to JFE Bars & Shapes and Itoh Steel.

_{(Sourced from ET)}

Copper prices to remain high despite volatility- Mar 14

Business News Americas reported that copper prices will remain high this year continuing the strong performance shown in the H1 of 2010 but they will be subject to volatility.

Mr Marcelo Awad CEO of Antofagasta Plc said that in a conference call to discuss 2010 results. Market fundamentals remain positive and while the high level of volatility that has characterized commodity prices in recent years is expected to continue consensus estimates are for copper prices to remain favorable in 2011.

Mr Awad said that the strength of the copper market in 2H10 has continued in the first two months of 2011 adding that the red metal has been supported by healthy supply demand fundamentals, visible inventories still below 2 weeks of consumption improved Chinese demand and a pick-up in European demand.

He said that copper is expected to average USD 4.350 per lb in 2011 with a market deficit estimated at 440,000 tonnes and the market balance forecast to remain tight in the mid term&.

Mr Awad said that the market scenario for molybdenum is favorable and justified by solid fundamentals. High marginal production costs provide firm support for molybdenum prices.

Molybdenum averaged USD 15.7 per lb in 2010, 41.4% increase from the previous year's average of USD 11.1 per lb. Prices have continued to rise during the first two months of this year, increasing from USD 16.4 per lb at the start of the year to US$17.7/lb at end-February.

The company said that market consensus is for prices to remain at around this level for the year, given the improved demand from the stainless steel market and the lack of significant supply side growth in the short term.

_{(Sourced from Business News Americas )}

Chinese steel giants expanding overseas due to domestic glut- Mar 14

Bloomberg reported Wuhan Iron & Steel Group, Angang New Co and rival Chinese mills are expanding overseas and turning to specialty products to battle overcapacity in China , the world biggest producer of the metal.

Mr Deng Qilin General Manager of Wuhan said in Beijing while at the National People Congress that, the nation fourth biggest mill is in talks to build plants or buy rivals in other countries. Angang may develop its specialty steel product business.

According to the government, overcapacity and rising costs have depressed the average profit margins of Chinese steelmakers to just 3.5% in 2010, the lowest of any industry. China Iron and Steel Association said the nation new five year building program will need more high grade alloy for railroads and nuclear power plants.

Mr Hu Yanping a Beijing based analyst with researcher UC361.com said “Every steelmaker is trying to diversify their business. But they aren’t all going to succeed.”

Wuhan Iron & Steel Co, the listed unit of Wuhan Steel has fallen 30% in Shanghai trading in the past year compared with a 1.7% drop in the benchmark Shanghai Composite Index. Angang Steel Co, Angang unit is down 34% in the past year in Shenzhen.

The government plans to invest CNY 800 billion to build 6,000 kilometers of high speed rail lines by 2012 to carry its industrial expansion inland.

1. Going Overseas

Mr Gu Jianguo Chairman of Magang (Group) Holding Co, China biggest maker of train wheels said the company plans to expand its steel cutting and equipment manufacturing business.

According to World Steel Association estimates in October that the nation steel demands may increase 3.5% this year and compared with a projected 13.6% growth in India and 9.1% in the Central and South American regions.

Mr Deng Wuhan General Manager said without giving details on his overseas expansion plans said “The government is encouraging the shift of surplus steel production capacity overseas.”

Mr Xu Lejiang Chairman of Baosteel Group Corp, supplier of half the sheets used by carmakers in China said the company will consider building plants in developing regions outside of China

2. Reduce Friction

Mr Ding Liguo Chairman of Delong Holdings Ltd a Singapore-listed Chinese steelmaker said the company is looking to build plants in Mexico and other countries. Angang in 2010 signed an agreement to jointly build a USD 168 million reinforcing bar plant in Mississippi in the US .

Mr Xu Xiangchun chief analyst with Mysteel Research Institute said building plants overseas is a way to reduce global steel trade frictions. Also, it will be welcomed as a boost to local employment and taxes.

Customs data show China steel product exports gained 73% last year to 42.6 million tonnes. Apparent steel use in the US will likely advance 9.4% this year.

According to the median estimate of 11 analysts surveyed by Bloomberg news Asian steelmakers face rising costs. Mills in the region may be forced to pay as much as 44% more for hard coking coal in the three months starting April 1 after rain shut mines in Australia . Iron ore prices have jumped 29% in the past year.

_{(Sourced from Bloomberg)}

Rising raw material costs bring concerns to Japan, India steel mills- Mar 11

According to market insiders, Japan’s steel mills have reached an agreement with mining companies on GermanCreek coal mine in Australia for the Q2 delivery. It’s said that the contract prices of hard coking coal were at US$330/ton FOB, up by 46% from the first quarter of 2011.

In fact, market participants usually regard Japan’s final contract prices as the base prices for deal. Hence, once confirmed, it means that the coking coal prices have broken the new record highs.

At the same time, Japanese steel mills’ iron ore prices for the Q2 delivery reportedly would hike by 25% to hit the new record since April.

As coking coal and iron ore take 85% of the production costs, the rising prices have brought huge pressure to Japan’s steel mills. Nippon Steel has decided to increase the steel prices by US$242/ton for the Q2 owing to rising production costs.

Also, the rising coking coal prices have brought severe impacts on India’s steel mills as 90% of the country’s coking coal resources come from imports. Thus, the local steel mills have increased the prices since last February.

Chinese copper demand in 2011 may be highest since last four years- Mar 11

Bloomberg reported that China’s copper demand may be the highest in at least 4 years in 2011 as sales of home appliances and vehicles boost consumption of the metal.

Mr Wei Jianghong chairman of Tongling Nonferrous Metals Group Company said that smelters in China are operating at more than 90 percent capacity and most are using more scrap material than usual because of high refined prices.
Mr Wei said that overall, copper demand this year will be good certainly it will be better than 2008, 2009 and 2010. Demand for rods and tubes are good, driven by higher sales of home appliances and vehicles.

He said that high copper prices have prompted miners globally to ramp up production. They are operating at full capacity, so copper material supplies are more available. Scrap material supply also increased quickly and imports may continue to grow.

Mr Wei said that copper processing fees that miners pay smelters to make refined metal should rise in the second half and next year to reflect rising copper prices and more availability of copper materials. Tongling’s purchase of copper concentrates accounts for 30% of China’s total imports a year.

Fiat eyes partnering with Russian automakers- Mar 10

Reuters citing Mr Sergio Marchionne Chief Executive of Fiat SpA as saying that the company is in talks with several Russian automakers about growing in that market.
He said that "We are in talks with a number of people about how to proceed in Russia. We are committed to the Russian market."
TaGaz had been recently mentioned by European media as a possible partner for Fiat in Russia, but Mr Marchionne did not single out the automaker.
Mr Marchionne said "We need to find the optimal way to get it done in terms of timing, in terms of cost and I think we have until April to finalize."
Russian car maker Sollers unexpectedly dropped a joint venture plan with Fiat earlier in February in favor of Ford Motor Co. Rivals like Japan Toyota Motor Corp and Germany Volkswagen AG have also rushed to forge ties with Russian partners.

_{(Sourced from Reuters)}

Ford to export 1,500 Figo to Mexico next week and launch 8 new models- Mar 10

Car maker Ford India today announced that it will export 1,500 units of its hatchback 'Figo' to to Mexico next week, and launch eight new models by 2015.
We will send out the first export shipment of Figo to Mexico next week," Ford president and managing director Michael Boneham told reporters here.
As many as 1,500 units of Figo will be exported initially to Mexico, he added.
Mr Boneham said company will export Figo to more than 50 international markets this year from its manufacturing facility in Chennai.
"The vehicles will be shipped to over 50 other international markets, including Mexico, Middle East, North Africa and Caribbean markets beginning April 2011," Mr Boneham said.
The company had invested 500 million dollars in the Chennai assembly plant to double its capacity to 2,00,000 units and to build a new state-of-the-art engine plant with an annual capacity of 2,50,000 gasoline and disel engines.
Mr Boneham said the Chennai facility is running on two full shifts, and the company may consider to start the third shift, provided the demand and supply side.
Ford had started exporting Figo to South Africa in July 2010 and to Nepal in October last year.
So far, nearly 10,000 Figos have been exported from the Chennai plant.
Since the Figo launch on March 9, 2010, the company had sold 80,000 vehicles.
Wishing Figo on its first anniversary through a taped video message, Ford Motor Company President and CEO Alan Mully said the company will launch eight new models by the middle of this decade.
Currently, the total number of employees of the company in India stands at 10,000. _--UNI

TATA Steel opens a new slitting line in Germany- Mar 08

TATA Steel is to install a new slitting line at Service Center Gelsenkirchen GmbH in Germany.

The service centre currently operates one slitter and one cut to length line at Gelsenkirchen, whose output is largely destined for the automotive industry. The second slitting line, together with the associated expansion of the Gelsenkirchen site, will cost EUR 8.6 million. The line will have a capacity of 140,000 tonnes per annum and almost double the site’s existing slitting capacity. It is due to come on stream in early 2012.
Mr Jochen Hoefges GM Service Center Gelsenkirchen said that "Our strategy towards the automotive sector is to increase the volume and technical innovation of the products we offer. The Gelsenkirchen investment is an example of this ambition and will further strengthen TATA Steel’s downstream capability to serve this specific sector. The new slitting line will raise the service center's capacity as well as its product portfolio, establishing an Automotive Centre of Excellence. The line is designed to process Advanced and Ultra High Strength Steel (AHSS and UHSS) grades, matching the growing demand for more advanced automotive products."

Service Center Gelsenkirchen GmbH was established in 2000 and is part of TATA Steel’s European distribution network. About 90% of its throughput serves the automotive industry. The facility's capacity today, before the expansion, is 225,000 tonnes per annum (155,000 tonnes per annum of slitting capacity and 70,000 tonnes per annum of cut to length capacity). The new slitter will be able to process coil in thicknesses of 0.4mm to 4mm and widths up to 1,650 mm, with maximum yield strength of 1400N/mm2.

_{(Sourced from www.steelguru.com)}

South Korean vehicle output up by 6pct YoY in February- Mar 08

Yonhap reported that output of five automakers in South Korea rose by 6.4% YoY in February 2011 with strong demand at home and abroad also keeping their sales humming.

According to the Korea Automobile Manufacturers Association, led by industry leader Hyundai Motor Co and its affiliate Kia Motors Corporation, the automakers produced 297,350 vehicles in February 2011 as compared with 279,368 units a year earlier.

_{(Sourced from www.steelguru.com)}

China aluminum output seen rising to 20 million tonne in 2011- Mar 07

Reuters reported that China may produce 20 million tonnes of primary aluminum this year out of capacity of 25 million tonnes.

An official from the China Nonferrous Metals Industry Association said that the figures would represent a rise of 24% from last year's production and 14% increase in capacity.

Mr Hu Zhang Ping chief of aluminum division said that most smelters that had idle some capacity were restarting it the powerful industry body's Beijing . Electricity supplies fell between December last year and January, forcing smelters in the major producing provinces of Henan and Guizhou to close well over 1 million tonnes of capacity. Output should reach 20 million tonnes in 2011.

Mr Hu's 2011 output estimate was higher than the 19 million tonnes expected by top aluminum producer Chalco and a forecast of 19.5 million tonnes by Antaike, a research arm of the industry body.

He said that the forum that China 's aluminum industry was entering into a low-profit period and that supply would stay above demand in the domestic aluminum market in 2011 to 2015. Annual capacity of primary aluminum is likely to rise to 30 million tonnes in 2015.

He added that in order to limit the capacity rise, Beijing has stopped accepting applications for the building of new aluminum smelting projects.

_{(Sourced from Reuters)}

IKCO to launch new plant in East Azarbaijan- Mar 07

Iran Khodro Company (IKCO), the leading Iranian automaker with headquarters in Tehran has announced to build a new production plant in the northern province of East Azarbaijan which will be the largest in North Western Iran.

Also, the new plant will have the annual capacity of 200 thousand units of the Peugeot 206.

This new production facility will be equipped with the state of the art equipment and would generate over 2,500 jobs for the province.

Meanwhile, IKCO produced 688 thousand passenger cars in 2009 with 13% growth in the manufacturer's turnout despite the crushing global economic crisis.

New invention of alloy material by Yale University professor- Mar 07

Reportedly, professor Schroers and his research team at Yale University have successfully invented new alloys that can be molded into a mixture shapes like plastic and the process is not as expensive as other materials.

However, its strength is not compromised and in fact, it is solid and durable like steel. The material is bulk metallic glasses or BMGs, which are metal alloys have unsystematically organized atoms instead of the uniform, crystalline structure found in most metals.

The superior properties of BMGs can be pertained to plastics and typical metals, integrated with excellent features of blow molding, is said to have the potential to shake the society like when synthetic plastics was first developed.

Malaysian government to set up ban on scrap exports- Mar 04

According to the saying of Minister of Malaysian Ministry of International Trade and Industry (MITI), the government is considering to set up a ban on the scrap exports to ensure the sufficient supply to local.

The supply of scrap is tight in Malaysia and the government is seeking to take some measures such as tax increase and ban on metal exports to resolve the problem. However, there is no plan to increase the export tax of iron ore.

Tin prices jump on supply shortage- Mar 04

According to the news report the dramatic price jump in tin has to do with the shortage of the tin production.

Last year, tin prices have already soared to a new high ground. The supply shortfall of 22 thousand tons has driven the prices upturn for about 59% in 2010.

Today, the tin prices have reached US$32,300/ton at LME. It is said that Indonesia and China , the world's two major Tin manufacturing countries have all cut the tin production especially on cracking down the illegal tin mining production.

PT Timah, the world's largest tin producer in Indonesia , has continued to reduce its production for 4 consecutive years. It's expected tin mining companies would capitalize the deficiency of tin supply to hike the prices.

China’s machinery industry aims to increase sales by 12% in next 5 years- Mar 04

China Machinery Industry Federation (CMIF) indicated that China ’s machinery industry has aimed to increase the sales by 12% in the next five years. At present, they have been facing the challenge to upgrade the industry.

Machinery industry played an import role during the period of Chinese government’s 12nd Five Year Plan.

Also, it could benefit to all emergent industry in local in order to achieve this significant projects development.

Copper distributors keep stocks low- Mar 03

Record copper prices and uncertainty about demand are prompting copper and brass service centers to keep inventories low even amid expectations that orders will rise in the second quarter.

Tata steel raises stake in Australia's Riversdale Mining- Mar 03

Tata Steel, the world's No. 7 steelmaker has spent more than US$101 million to raise its stake in Riversdale Mining to more than 27% from the original 24.2%. Reuters reported.

The Company has already been Riversdale Mining's biggest shareholder; also, it makes the miner Rio Tinto hard to seal its US$3.9 billion bid for the Mozambique-focused coal miner.

On the other hand, Riversdale Mining's second-largest shareholder Companhia Siderúrgica Nacional (CSN), the top Brazilian steelmaker, also increased its stake in the Australia-listed company to 19.9% recently.

Now both Tata Steel and CSN own 47% of Riversdale Mining, which makes it extremely difficult for Rio Tinto to secure the 50.1% acceptances it wants before going ahead with the deal.

Russia withdraws plan to impose export duty on iron ore, steel products- Mar 03

According to saying of Mr. Andrei Slepnyov, the Minister of Deputy Economic Development, Russia’s government has withdrawn the plan to impose export duty on iron ore and steel products.

Also, he indicated that automobile manufacturer and steel product makers have reached an agreement on delivery and prices; hence, the imposition of export duty was unnecessary.

It’s known that Russia’s Deputy Economic Development proposed to impose export duty on iron ore and steel product in this January.

According to saying of Mr. Andrei Slepnyov, the Minister of Deputy Economic Development, Russia’s government has withdrawn the plan to impose export duty on iron ore and steel products.

Also, he indicated that automobile manufacturer and steel product makers have reached an agreement on delivery and prices; hence, the imposition of export duty was unnecessary.

It’s known that Russia’s Deputy Economic Development proposed to impose export duty on iron ore and steel product in this January.

US steel flat product prices continue soaring- Mar 02

Driven by the strong purchase from downstream buyers, the spot prices of steel flat products have continued soaring in the US domestic market.

It’s known that some US steel mills have raised the prices of steel flat products by US$30~US$50/ton last week; however, the prices were unfavorable to buyers.

Meanwhile, the spot prices of cold rolled coil (CRC) and hot rolled coil (HRC) have hike by US$20~US$40/ton in the US domestic market last week. It’s said that the prices of CRC have remained strong due to tight supply.

Welded pipe prices surge in UAE market- Mar 02

Recently, the UAE’s welded pipe market has been full of uncertainty, affected by the unstable politic situation in Arabic Persian Gulf states. Consequently, the deal volume has declined.

However, the quotes of welded pipe have soared in UAE market due to rising raw material costs.

At present, the quotes of welded pipe with wall thickness 2mm~4mm from local mills have been up by US$20/ton; furthermore, that for 1.2mm~2.0mm has soared by US$50~~US$100/ton due to supply shortage.

Turkish mills cut steel production on low demand- Mar 02

Reuters reported that Turkish mills cut steel production as political unrest in North Africa and the Middle East continued to depress demand for steel billet and rebar.

As per report, Turkish producers were offering steel billet at USD 640 per tonne to USD 650 per tonne and rebar at USD 680 FOB but no major sales were achieved at this level.

_{(Sourced from Reuters)}

Mergers to continue in Chinese steel industry in 12th Five year Plan- Mar 01

China Securities Journal reported that Chinese steel market eyed rapid development since entering 21st century with the growth of crude steel output averaging by 21.1%YoY. The trend for the rather mystifying debacle after the Spring Festival has taken everybody by surprise.

In 2010, China has totally yielded out 630 million tonnes of crude steel. In recent years, Hebei Steel Group regrouped by Tangshan Steel and Handan Steel, realized rapid and steady developments forming a new management mode for further developments.

In the past two years, Hebei Steel Group accumulatively eliminated 5.2 million tonnes of backward steel making capacities and it also gradually regrouped 12 private owned steel mills.

Chevrolet to sell 6000 vehicles in 2011- Mar 01

The Jakarta Post reported that automaker Chevrolet is targeting to sell 6,000 vehicles in 2011, following promising sales in 2010.

Mr Debora Amelia Santoso PT General Motors Indonesia marketing and PR director said that the company sold 4,509 vehicles in 2010, more than double the amount it sold in 2009.

He added that "As part of our sales strategy on January 11th 2011 we launched the Captiva SS, which has a 2400 cc engine. In around July, August or September 2011, we plan to launch the new MPV Orlando."

As of January 2011, the company had sold 360 vehicles. Among them were 145 Chevrolet Spark and 152 Chevrolet Captiva vehicles.

In terms of profit, Chevrolet's profits in Indonesia increased 70% from 2009 to 2010.

_{(Sourced from www.thejakartapost.com)}