Kuwait: CB&I wins USD60mln storage tank contract; India: Jindal Tubular to operate and maintain various PSL pipe mills;

Deyaar awards construction contract for twin tower project to Al-Rostamani Pegel

Local developer Deyaar has awarded Dubai-based contractor Al-Rostamani Pegel the construction contract for work on a luxury mixed-use, twin-tower development in Dubai.

The Atria, located in the Business Bay area, will be built over an area of 366,000 square feet and will comprise a mixture of serviced apartments and residential units. The serviced apartment tower will feature studios, one-, two- and three-bedroom apartments and three-bedroom duplex units across a 30-floor complex.

Following the enabling works, Al-Rostamani Pegel will mobilise the principal contractor. As part of the contract, all main works on the project are set to be completed by 2017.

Local firm AK Design served as the consultants on the project.

Rebar export prices increase by USD5-10 per ton

Stimulated by the increasing scrap price, it is reported that the Turkish export rebar prices also went up last week while the exported prices of wire rod and bar steel were not affected a lot.

Currently, the Turkish exported rebar price stands at USD450/ton, up by USD10/ton compared to one week ago.

Meanwhile, the wire rod and bar steel are quoted at USD470/ton and USD480/ton respectively.

GCC healthcare investment boom continues with a new USD272m hospital tender

VPS Healthcare Group is inviting bids from contractors for a USD272mn hospital in Abu Dhabi, UAE, the latest in a series of multi-million dollar investments in the medical sector. The planned hospital in Mohammed Bin Zayed City is expected to become the largest single private medical healthcare facility in the country.

It is part of the VPS Healthcare Group's USD1.5 billion investment in Abu Dhabi over the next two years, which includes four new hospitals, five specialty centres and 10 medical centres.

In neighbouring emirate Dubai 18 private hospitals are under construction in Dubai alone, according to Dubai Health Authority.

GCC governments are investing record amounts in healthcare projects with spending set to triple within three years to more than USD100 billion, making the sector a key focus for contractors and suppliers across the region.

Oman and Qatar have also announced the development of multiple healthcare facilities. According to a report by Frost & Sullivan, figures suggest that GCC spending in healthcare is expected to triple to about USD133 billion by 2018.

A new USD680 million (AED 2.5 billion) medical complex in Mohamed Bin Zayed City, Abu Dhabi is underway, which will add 400 beds to the country's total along with housing for doctors and hospital workers.

L&T Construction wins USD143mln worth orders

Larsen & Toubro Oman LLC (LTO), a subsidiary of L&T, has bagged an order from Oman Electricity Transmission Company S.A.O.C for the turnkey construction of a 132/33 kV substation at Izki Phase III. The 400 kV phase is being executed by the subsidiary.

LTO has also reported winning a repeat order worth USD119 mln from a prestigious client for the construction of a commercial project and its site-wide infrastructure in the Sultanate of Oman.

The scope involves civil, structural, architectural, electro-mechanical, finishes, specialty lighting, lifts, ICT systems, landscaping, water features, swimming pools and car parking. The project is scheduled to be completed in 25 months.

Larsen & Toubro is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations.

Kahramaa orders Mitsubishi Corp. to set up USD500m desal plant

The Qatar General Electricity and Water Corporation (Kahramaa) is set to establish a USD500-million desalination plant that will produce 36 million gallons of water per day using reverse osmosis (RO) technology.

Kahramaa signed an agreement with Qatar Electricity and Water Company (QEWC) to set up the first-of-its-kind plant in the country, which will start operation in the third quarter of 2016, reported The Peninsula.

As per the agreement, Mitsubishi Company will be responsible for preparing the design, importing equipment and establishment of the plant.

Earlier the Qatari utility firm had asked independent companies in the country to come up with proposals to boost water production.

After studying the offers, it found the proposal presented by QEWC the most effective in terms of cost and technical means, and both sides agreed to set up the plant, said the report.

Kahramaa will soon sign a strategic pact with QEWC for purchase of potable water from the company for 25 years, it added.

CB&I wins USD60mln storage tank contract

CB&I, a major energy infrastructure focused company, has won a contract valued at approximately USD60 million by JGSK JV, a joint venture between JGC Corp, GS E&C and SK E&C.

The project scope includes the engineering, procurement, fabrication and construction of 39 storage tanks and two spheres for the Clean Fuel Project (CFP), a major initiative of Kuwait National Petroleum Company (KNPC) to upgrade and expand two existing KNPC refineries.

"This award underlines the confidence our clients have in CB&I's commitment to safety, reliability and on-time solutions for complex projects," said Luke Scorsone, president of CB&I's Fabrication Services operating group.

SEZAD extends bid date for Bulk Liquid Berths Terminal at Duqm

Oman’s Special Economic Zone Authority at Duqm has postponed the bid submission date for the design and build contract of the new Bulk Liquid Berths Terminal at the Port of Duqm in Oman.

The submission date has been extended from 10th March to 7th April, 2015.

The scope of the work includes the following major work packages:
1. Dredging and Reclamation
2. Jetty Structure; and
. Topsides Facilities including product storage tanks, dry bulk facilities, pipelines, buildings .and roads, etc

Al Khodari signs hospital and university deals worth USD93 mln
Saudi Arabia

Dammam-based contractor Abdullah AM Al-Khodari & Sons Co has announced the signing of a pair of contracts worth USD92.8m (SR348m).

The biggest of these is an USD83.5m (SAR313m) contract with the Ministry of Health to build a 200-bed maternity and paediatrics hospital in Rass.

The contract was received on Thursday and work will start by the end of the quarter.

The company has also signed a USD9.3m contract to build the second phase of a deanship support building at Taibah University for the Ministry of Education.

It will take 15 months to complete from the date that the site is handed over to it.

Al Khodari & Sons earns around 95% of its revenues from government contracts.

In the year to December 31, 2014, the company achieved a 57% increase in net income to USD30m as revenues climbed by 13.5% to USD463.2m.

Nakilat Damen Shipyards delivers first batch of tugs

Nakilat Damen Shipyards Qatar (NDSQ) has delivered two new Qatari-built mooring tugs to towage operator Nakilat SvitzerWijsmuller (NSW).

The delivery of the two ASD 2810 tugs is part of a seven-vessel order that the yard is currently working on for NSW. The first of the new tugs, named Umm Al Shubrum, completed sea trials in Ras Laffan in mid-January 2015. She was followed in February by the second vessel, Al Kharsaah. Both vessels performed exceptionally well during the trials, reports NDSQ.

Both vessels will operate as part of Nakilat NSW’s growing fleet. NSW currently operates more than 30 vessels and performs 12,500 tug jobs per year.

These vessels will join NSW’s existing vessels in the Port of Ras Laffan. They will be put to use assisting ships entering and departing the port. The Damen ASD 2810, 28 metres long with a beam of 10 metres, has a bollard pull of 45 tons and can reach a maximum speed of 12.6-knots.

The first two Stan Tug 1606 mooring boats, Ras Al Allaj Qatar and Al Esaiwed, were delivered in August 2014.

Malaysian shipyard eyes offshore O& G projects in the Middle East

Malaysia’s Grade One Marine Shipyard Sdn Bhd (GOMS) is collaborating with Dubai-based Water Transport Solution Ltd (WTS) to make inroads into an offshore oil & gas and marine transport project in the Middle East.

WTS signed a memorandum of agreement (MoA) with GOMS, a company involved in shipbuilding, ship repair and vessel chartering for the maritime and oil & gas sectors.

GOMS is also planning to set up a state-of-the-art ship repair facility in the United Arab Emirates, with the waterfront land planned by WTS.

“Based on our preliminary study, there will always be a shortage of ship repair facilities throughout the region and thus we are confident in securing many jobs there,” GOMS managing director Tan Kiow told after the signing ceremony.

Global Steel News

Jindal Tubular to operate and maintain various PSL pipe mills

Jindal Saw’s wholly owned subsidiary - Jindal Tubular (India), has agreed to operate and maintain certain identified facilities of PSL. This is a short term arrangement for one year which may be extended or modified, based on meeting of certain covenants and mutual acceptance at the appropriate time.

Jindal Saw is in a commanding position in India's tubular market being the undisputed leader. The business operations are highly structured with three strategic business units: large diameter pipes, seamless tubes, and DI (ductile iron) pipes.

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai, Kandla Vishakapatnam, Ahmedabad, Jaipur, Daman and Sharjah with an annual capacity exceeding 1,175,000 MT.

PSL manufactures and supplies SPIRAL WELD PIPES conforming to API (American Petroleum Institute) standards for Oil ,Gas and Water Transmission as well as Structural and Piling Applications for both Onshore and Offshore sector.

Baosteel to cut medium plate prices for April

China’s Baosteel Group has announced to reduce its prices for medium plate by RMB200/ton (USD33) in April.

After the adjustment, the latest prices of Q235A medium plate in thickness of 14~20mm will be RMB3,050/ton (USD495); that of Q345A low alloy plate in thickness of 14~20mm will be RMB3,200/ton (USD519).

Also, the prices of Q245R boiler steel plate with thickness 14mm~20mm and Q345R grade will be RMB3,200/ton (USD519) and RMB3,300/ton (USD535), respectively.

Crude steel output and exports increase in February

According to data released by China Iron & Steel Association (CISA), the country’s daily crude steel output averaged at 1.77 million tons in late February.

The daily crude steel output in the world's top producer and consumer in late February increased by around 8.15% or 133,400 tons compared to the previous period.

During the late February, the inventories at steelmakers were at 17.12 million tons, increasing by 661,200 tons or 4.02% compared to the last period.

Meanwhile, China exported 7.8 million tons of steel products in February, surging by 62.5% YoY.

During the first two months, the country’s steel exports hit 18.08 million tons, soaring by 56.4% year on year.

On the import side, China imported 870,000 tons of steel products in February, dropping by 13.2% from the same time a year earlier. During January to February, steel imports hit 2.03 million tons, dropping by 13.2%.

Hyundai Steel leaves H-beam prices flat in March
Korea, South

Hyundai Steel has announced to hold its H-beam prices unchanged again in March.

Hyundai Steel will hold its H-beam prices at around 810,000~82,000 won/ton (USD727-737) due to poor sentiments in the domestic building sector and increasing imports with cheaper prices.

The country’s H-beam imports reached around 41,000 tons in January. However, the company is planning to raise output of long products by 128,000 tons to 6.87 million tons, up by 2%.

Steel, iron ore futures hit contract lows on weak demand

Chinese rebar futures fell for the fourth straight session on Monday to hit a contract low on tepid demand in the world's top steel consumer, also pushing raw material iron ore to a record low.

Construction activity in China is not expected to pick up until the end of March, hitting demand for steel and forcing Chinese steel mills to have scheduled maintenance to curb output and inventories.

"About 40 percent of steel inventories at major markets is owned by steel mills apart from those at their own plants, suggesting mills are facing unprecedented pressure," said XuHuimin, an analyst at Huatai Great Wall Futures in Shanghai.

The most-traded October rebar contract on the Shanghai Futures Exchange fell to a low of 2,462 yuan (USD393), its weakest since the contract was launched in 2009. It was trading 1.2 percent lower at 2,479 yuan by midday and has lost 8.2 percent so far this year.

Steel demand is expected to pick up when the weather gets warmer, but given high ore stockpiles at major ports in China, weak fundamentals will continue to weigh on iron ore prices, the China Iron and Steel Association said in a report on Friday.

Iron ore futures for September delivery on the Dalian Commodity Exchange hit a low of 449 yuan a ton, their lowest since the contract was launched in 2013. They were then trading unchanged at 451 yuan, and have fallen 11.2 percent so far this year.

The closure of some steel mills in China's eastern Shandong province last week after failing to meet stricter environmental standards has raised fears of a wider crackdown.

"The crackdown on steel mills in Linyi signals the government's determination on curbing heavy smog, but I don't think the government will take out a 'one-size-fits-all' policy now," Xu said.

China's iron ore imports declined for the second straight month in February, down 13.5 percent to 67.94 million tons from January, but rose 11 percent from a year ago, customs data showed.

Benchmark 62 percent grade iron ore for immediate delivery to China declined 1.9 percent to USD58.20 a ton on Friday, its lowest since the index was published. It has fallen 18.3 percent so far this year.

(USD1 = 6.2648 Chinese yuan)

JSW Steel to invest around USD160 mln in its Salem unit

The USD9-billion JSW Steel plans to invest Rs 800 crore to Rs 1,000 crore (USD159,332,000) at its Salem unit in Tamil Nadu. The facility, which produces special steel and currently supplies largely to the automobile sector, will soon start catering to the aerospace sector. The company is also in talks to buy the Cuddalore Port in the state to cater to the needs of the plant. At present, the Salem unit uses the MARG Karaikal Port, which cannot handle vessels with higher tonnage.

In 2004, JSW acquired Southern Iron and Steel Company, then a sick unit, and turned it around. JSW raised the plant’s capacity from 300,000 tons to one million tons and switched over to value-added products.

D Ravichandar, the chief executive of JSW Steel Salem Works, said the capacity would be further increased to 1.3 million tons.

“We would invest Rs 800-1,000 crore. We have already approached the ministry of environment and forests and the terms of reference is expected in a week. We want to take up the expansion project this year,” said Ravichandar.

The Salem plant makes various grades of special steel in the long-product category, from 5.5 millimetres (mm) to 200 mm. It is the Asian leader in special-grade steel used in gears, crankshafts and bearings. It also makes ultra low-sulphur steel for sour-gas pipelines and alloy steel for boilers.

A major chunk of the plant’s products are supplied to automobile customers, said Ravichandar. According to him, this facility was the first to supply Indian crankshafts to Honda, which was importing till then.

The facility also caters to the pipe sector and high-speed rails, which are exported to Italy.

2,037 new steel projects are still under construction: MIIT

Crude steel capacity in China, the world’s top producing country, is likely to grow this year despite difficult market conditions as new projects are coming on-stream, the Ministry of Industry and Information Technology (MIIT) said.

Long-standing overcapacity, slower growth in demand and tighter credit have forced many Chinese steel mills to produce at a loss or at low profitability.

“Generally, oversupply in the steel sector is unlikely to improve this year, exports will drop slightly, steel prices will stay at low levels and steel mills’ profitability may not be positive,” MIIT said in a report on its website. Investment in the ferrous metals smelting and processing industry fell 5.9 percent last year but remained at a relatively high level and there are still 2,037 new steel projects under construction.