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Thursday, March 08, 2007 12:24:00 AM

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Chinese spike: China will slash steel capacity by 35m tonnes

Ajoy K Das

KOLKATA: China has approved a plan to eliminate 30 million tonne of iron making capacity and 35 million tonne of steel making this year and shut down steel mills with a total capacity of 100 million tonne of iron production by 2010.
This is part of a package of measures endorsed by the National People’s Congress, the Chinese Parliament, to rein in growth to around 8% in 2007, from 10.7%, last year. In other words, the Indian government may have coaxed domestic steel producers to rollback prices this month in its inflation fight, but next time, if it fails to do so, blame it on China.
China has also reduced steel export rebate to 5% from 11%, stoking price fires globally. Spot prices of benchmark hot rolled (HR) coils have spurted in both, the US and Europe.
In the US, HR coil prices are up $10 per tonne at $590 and in the EU, it is up $30 per tonne to $623 per tonne, in anticipation of tightening of supplies in global markets in the wake of Chinese checks on overproduction and exports.
And all these fast-moving dynamics of global steel markets, promising steel prices another bull orbit, are leaving a very big Hobson’s choice for Indian steel companies. They can ignore government ‘wishes’ of holding price line at pricing committee meetings, of respective steel producers, in first week of April and get to ride the next bull run.
Or companies maintain domestic prices and watch rising potential from export realisations as international prices surge ahead of Indian price of steel.
But then Indian exports of steel is just 4 million tonne of total production of 40 million tonne. And steel producers are in no position to ramp up production, ignoring interest of long-term domestic customers and evoking government ire once again in case of shortages in domestic markets.
A highly placed official of Steel Authority of India Ltd (SAIL) said, “Every aspect of steel production in India has global linkages. If pricing is cut off from it, margins can remain positive only for a very short time.”
“Take rising cost of imported inputs. SAIL projects coking coal imports in 2006-07 at 9.49 million tonne compared with 7.4 million tonne imported in 2004-05. If domestic steel prices are not linked to international markets and not factor in the higher input costs like coking coal, either margins turn negative or there is a subsidy to compensate for shrinking difference between cost of production and selling price. And here we are not even talking of generating surplus to fund all mega-capacity creation plans,” officials said.
A senior official from the Union steel ministry said, “The government’s has little room to move in influencing prices in a decontrolled regime. It has used its power of persuasion once. But cannot expect such powers to be effective in face of global trends.”
Industry analysts quoting China National Bureau of Statistics said that fixed asset investment in steel projects slowed down in 2006 to $29 billion, down 2.5% over previous year.
According to reports in The Economist, the Chinese government is moving to rein in Olympics-fuelled property and construction boom to prevent a hard landing of the economy. But despite this, steel demand is poised to grow 13% in 2007.
The country’s National Bureau of Statistics projects that production cuts and rising demand will turn China ‘s 43 million tonne of steel exports to negative.
Simply put, this will make the dragon a net importer once again - that’s another bullish element in the global markets that Indian producers may not ignore when its time for the next pricing strategy.
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Airbus sees growing plane demand in India

Airbus sees growing plane demand in India
Mon Feb 5, 2007 5:25 PM IST
http://in.today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2007-02-05T172036Z_01_NOOTR_RTRJONC_0_India-286418-1.xml

MUMBAI (Reuters) - Airbus expects demand for aircraft to grow quickly in India, led by travel as well as freight traffic, and the European company said it will look to source more materials, design and engineering services from the country.

The plane maker, part of the EADS, expects Indian firms to place orders for 1,100 passenger and freighter aircraft valued at about $105 billion over 20 years.

"India will be the fastest-growing country for air travel for the next 10 years," Sanjay Sharma, senior marketing analyst at Airbus, said at a news conference on Monday.

Strong economic growth, greater liberalisation and a "large, frustrated pent-up demand" would help the Indian air travel market grow faster than the global average, he said.

Airbus estimates the Indian air travel market will grow at an average 7.7 percent per year over the next 20 years, compared to the worldwide average of 4.7 percent. India's passenger aircraft fleet will grow five-fold in the same period, Sharma said.

"While the bulk of the demand will be for single-aisle aircraft, there is a market for long-range and large aircraft, as well," Sharma said, ahead of Airbus' participation at the Aero Show in Bangalore this week.

Air freight traffic would also gain as more domestic airlines entered and better infrastructure boosted profitability, he said.

India's Flyington Freighters recently ordered six Airbus freighters valued at $1 billion, and Airbus estimates there will be demand for 165 freighter aircraft over the next 20 years.

Airbus, which made its first delivery in the country for state-owned Indian Airlines in 1976, has seven clients including Jet Airways Ltd., Deccan Aviation Ltd., Indigo, and Kingfisher Airlines, which has ordered five jumbo A380 aircraft.

EADS has said it would invest would invest up to 2 billion euros over the next 15 years in India in production and research and development facilities. An engineering centre, a fully-owned subsidiary, would be operational in the second half of this year.

It was also looking at more cooperation with Indian firms in engineering, design and manufacturing, and may identify modern materials suppliers, Sharma said.

State-owned Hindustan Aeronautics Ltd. makes doors for the A320 planes, and EADS said last year it would extend its cooperation with HAL to other areas.

NANDAN turns 15 years old!

1st December 2006

December 1st 1991, a small factory had ther inauguration in Nanddham, Mumbai called "NANDAN ENTERPRISES"....

As of today its exactly 15 years since that memorable day for us. In between we have been able to execute some fine projects, worked on many innovations, set the path for many a designs, optimized many processes in more ways than we could have ever imagined on that day. What we began was an ambition to "be able to do something of worth in our field and also be a responsible member of society at the same time maintaining the highest integrity, ethics and values".

Today we have three factories, directly and indirectly provide employment to almost 150 people, have our brand to be a recognizable one in India as well as outside. We think we have remained true to our goals and moved in the right direction. Our factory in Navi Mumbai is today a showcase and we are establishing the best practices in fabrication benchmarking against the world leaders. We have invested in technology - modeling softwares, ERP, latest machines which are optimising production.

All along this way we have been previlodged and lucky to have the the support, encouragement, and patronage of your group companies as well as individually. We place this as our strongest and dearest asset and thats why we stress deeply on the most effective after sales service. We thank you deeply for the great professional and personal bond that we share with you.. We truely treasure the same.

This is only a beginning. We wish to do a lot of things. We believe, rather than doing different things, its more important to do things differently! We shall keep innovating, keep diversifying and also expanding in keeping with the market requirements.

We shall look forward to your continued support to us and your blessings.

Best Regards,

J.C. Kumar
Raghunandan Jagdish
Director, NANDAN Group of companies
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Works: D 205 MIDC Turbhe, Navi Mumbai 400705 INDIA
Office: C15, Nanddham Industrial Estate, Marol Maroshi Road, Mumbai 400059 INDIA
Ph: +91-22-2859-7436 Fax: +91-22-28506582

e-mail: info@nandan-india.com
www.nandan-india.com

You'll fly in the right direction with us...

Sapphire plans cheap US-India Airline

Nov 21, 2006 Sapphire plans cheap US-India airline

Delaware, USA-based Sapphire Airways is planning to start a low-fare airline that will offer flights between India and the US, becoming the first US low-fare carrier to fly to India.
The company is raising $100 million to set up the discount carrier, said chairman Rahul S Puranik in Mumbai.

The company would soon apply to the US department of transport and the federal aviation authority for license to start the carrier by October 2007, he said.

India and the US last year signed an air services agreement to permit more flights between the two countries. About two million people travel between the US and India every year. Said Puranik, a former pilot, “With deepening ties between the two countries and the economic growth in India, travel will only grow.”

Sapphire wants to fly to India from the US’s East Coast with a fuel stop in Europe. The company is in talks with individual investors and has obtained commitments for about $45 million of the $100 million it requires, he said.

Passenger traffic on US and Indian carriers between the two countries rose 86% in 2004 from 2000, according to the US transportation department last year.

Industry consultant Centre for Asia Pacific Aviation is helping Sapphire raise funds and draw up a route network, Puranik said.

Pratt & Whitney, Kingfisher Airlines Sign Contract for $300 Million Engine Order

From CAPA (Wednesday, 22 November 2006)

Washington D.C. (PRATT & WHITNEY) - Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, and Kingfisher Airlines signed a contract today for engines to power Kingfisher's new fleet of Airbus A330 aircraft. The agreement was signed during a ceremony at the U.S. Department of Commerce in Washington, D.C. "After a very detailed analysis of all the engine offers for the A330, we decided that Pratt & Whitney gave us the best total solution and met all our technical requirements," said Dr. Vijay Mallya, chairman and chief executive officer, Kingfisher Airlines Limited. "Kingfisher has selected Pratt & Whitney to power our fleet of A320/A319s, ATR72s and A330s because of their ability to support our airline's vision to consistently deliver a safe, value-based and enjoyable travel experience to all our guests." The deal includes 10 PW4000-100" installed engines, one spare and an option for an additional 10 engines. Pratt & Whitney was also awarded a long-term exclusive fleet management program to overhaul and repair Kingfisher's PW4000 engines. The total transaction is valued at $300 million, plus an additional $200 million if all options are exercised. Pratt & Whitney and Kingfisher Airlines announced the deal with the signing of a memorandum of understanding earlier this year at the Farnborough International Airshow outside of London. "We are delighted that Kingfisher Airlines has chosen Pratt & Whitney's PW4168A to power its new A330 aircraft," said Todd Kallman, president, Pratt & Whitney Commercial Engines. "This contract for new engines and long-term engine service offers Kingfisher the best value, as it leverages Pratt & Whitney's unique OEMROTM portfolio. We're excited to expand our partnership with Kingfisher and we look forward to our continued collaboration." "This agreement is another building block that will strengthen U.S.-India relations, foster greater economic ties and enhance the ability of both companies to compete in the global economy," said U.S. Commerce Secretary Carlos Gutierrez, who witnessed the signing

Small Towns flying into Aviation Map

From Times of India (3/11/2006)

MUMBAI: Time was when flying overseas meant a mandatory trip to the nearest metro to board an international flight. No more, however. A320s and B737s are now at the doorstep of the humblest small towns, and the latter promise to be increasingly on the agenda of international airlines.

In 2003, no more than three non-metros were linked to foreign cities by direct flights. The number has now gone up to an impressive 15, with international flights going to Trichy, Gaya, Guwahati, Jaipur, Lucknow, Nagpur, Pune, Goa, Calicut, Amritsar, Ahmedabad, Thiruvananthapuram, Cochin and Coimbatore. According to civil aviation ministry sources, Kanpur, Madurai, Mangalore will join the list in the coming months.

"In the last two years, aviation growth has gone beyond India's metros," says Kapil Kaul, CEO, Centre for Asia Pacific Aviation. "Most foreign carriers want a foothold in the country’s profitable non-metro routes before the Indian carriers come in. The country is slated to be a 35-market destination in the coming years."

There are 35 Indian cities with a population of over one million which makes them an ideal catchment area for flights to the Middle and Far East.

Kaul prophesies that with the rapid rise in GDP and per capita income, several of these cities could well turn into profitable long-haul routes for carriers as well.

Little wonder that international carriers are salivating at the market opportunity in hitherto sleepy towns . "It was difficult not to notice there were no international flights to the whole of central India, comprising the Vidarbha region, MP, Jabalpur, Chhattisgarh and Telangana region," says Rohit Ramachandran, regional manager (South Asia) of Air Arabia, which was the first international carrier to launch Nagpur-Sharjah direct flights in October 2005.

Indian Aviation Industry set to grow at 25%

From Times of India (23/11/2006)


NEW DELHI: India's aviation industry is likely to grow at the rate of 25 per cent for the next 10 years, presenting a huge opportunity for foreign and private players, Civil Aviation Minister Praful Patel said on Thursday.

"India's domestic aviation segment is likely to grow by 50 per cent and the international aviation segment by at least 25 per cent in the current fiscal year," Patel said while inaugurating the first EU-India aviation summit.

Overall, the growth rate of the aviation sector in the next 10 years would not be less than 25 per cent. This implied huge opportunity for foreign and private players in the field of airport infrastructure, communication, cargo development and other fields, the minister added.

Earlier, addressing the summit, EU Vice President Jacques Barrot said EU and India were deliberating on a "horizontal" aviation agreement.

The aim of the "horizontal agreement" would be to amend certain provisions in bilateral agreements between India and EU member states so they could be in conformity with a much broader agreement between India and EU, Barrot said.

"India and EU are likely to finalise in 2007 the horizontal agreement and prepare a joint action plan to address key issues in the aviation sector," Barrot said.

Lifting Times

Lifting Times Introduction – 061009

 

Welcome to the exciting world of NANDAN… it is our constant endevour that our clients and well wishers be well informed about our activities as well as we do our bit in transferring some knowledge to them.

 

In this vision, I am proud to present “Lifting Times”. It will have the following contents:

1)   Editorial

2)     Updates on the latest projects in hand

3)     Product update of the issue

4)     Knowledge center – where some concept of hydraulics will be explained in very brief

5)     Q&A – The compilation of your questions and answers

 

They say, well begun is half done, so we are beginning at the right earnest

 

As usual we look forward to your feedback and suggestions

 

Some useful locations:

• Blog where all these will be archieved http://nandan-india.blogspot.com/
• Mailing list subscription for your friends : Send empty email to nandan-india-subscribe@yahoogroups.com
• Corporate Website: www.nandan-india.com

 

Hop on with us… We are happy to host you and we will make sure you will

“Fly in the right direction with us…..”

 

Please accept the invitation of this email so that we may add you to the mailing list also giving updates of our activities. You can unsubscribe at any time.

 

Best Regards,

 

Raghunandan Jagdish

________________________________________

Director, Nandan GSE Pvt Ltd

Works: D 205 MIDC Turbhe, Navi Mumbai 400705 INDIA

Office: C15, Nanddham Industrial Estate, Marol Maroshi Road, Mumbai 400059 INDIA

Ph: +91-22-2763-5508/09  Fax: +91-22-2763-5510

e-mai: raghu@nandan-india.com

www.nandan-india.com

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