Domestic steel mills to benefit from low ore prices, ICRA
The Dollar Business Bureau Domestic steel mills may benefit from lower iron ore and coking coal costs in the current year but sustained weakness in demand still remains a concern, ICRA said. The ratings agency in a report said, "Sustained demand weakness remains a concern for the domestic steel industry with a growth of mere 4.6% and 2.6% in FY2016 and FY2017 respectively due to sluggishness in key end-user industries. "Weak demand conditions have led to a correction in domestic hot rolled coil (HRC) prices by 7% in May 2017." The report also specified that the seaborne iron ore prices have corrected by 36% between February and May of 2017 dragged down by a correction in Chinese steel prices, steadily rising iron ore ...
Govt approves new Steel Policy, aims 300 MT capacity by 2030
The Dollar Business Bureau With an aim to give impetus to the steel sector in India, the government has approved the National Steel Policy (NSP) 2017 on Wednesday. The new policy is aimed at achieving the country’s steelmaking capacity to 300 million tonnes by 2030, which would translate into Rs.10 lakh crore of additional investment by 2030-31. “The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the National Steel Policy (NSP) 2017,” the Steel Ministry said in a statement. “The new Steel Policy enshrines the long term vision of the Government to give impetus to the steel sector. It seeks to enhance domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry,” the statement said. The Union Cabinet also cleared the ...
Govt aims to cut coal imports to zero for power PSUs
The Dollar Business Bureau The Government said on Sunday that it is targeting to bring down the imports of thermal coal to ‘zero’ of power public sector units (PSUs) such as NTPC Ltd in this fiscal, a step that will help in cutting down the import bill of the country by about Rs.17,000 crore. “This year we want that coal import by these plants (of public sector companies) should be brought down to zero and slowly we would convince the private sector that there is no need for you to import coal,” Susheel Kumar, Secretary - Coal told the PTI. The government would gradually persuade the private firms to stop the imports of thermal fossil fuel and source their coal requirements through local sources as this is ...
Will improve exports in South East Markets: Tata Steel
The Dollar Business Bureau Tata Steel today revealed that it is pursuing business-prospects in South East Asian markets since they offered better prices. TV Narendran, MD at Tata Steel India and South East Asia suggested around the side-lines of the India Steel Expo, that the market prices in steel have stabilized and South East Asian markets provided better prices. He further added that investments would fuel the steel sector’s growth in the country. The industry would have to either generate such funds or find specific investors willing to invest. As such he found the sector growing, and offering opportunities for capital equipment markets. The $25 bn, Mumbai headquartered Tata Steel is the tenth largest steel producer in the world with an annual capacity ...
Coal India zeroes in on Australia and South Africa for acquisitions
The Dollar Business Bureau Emboldened by inflated valuations due to doubling of coking coal prices in the previous year, Coal India Ltd. (CIL) had announced plans to explore coking coal assets in US, Colombia, South Africa, Indonesia and Australia. It has been reported that CIL has now zeroed in on Australia and South Africa for foreign acquisitions. The logistical advantage of shipping coal from Australia due to its proximity makes the country favourable over US or South Africa. The government-owned coal giant started exploring opportunities outside India in January 2017, via its subsidiary Coal Videsh. Lack of technological wherewithal required to build domestic reserves prompted the public sector coal miner to explore opportunities abroad in January 2017. CIL has two routes ...
Glimpses from the week that was Week 8 of 2017
By Abin Daya India’s foreign trade Exports: India’s exports rose continuously for the 5th month in Jan 2017. Exports rose by 4.3% to $22.12bn as against $21.2bn in the same month last year. Seventeen out of thirty major commodities had positive growth – key amongst them being rice, engineering goods, iron ore, and petro products However, exports have remained stuck between the $20-23bn range for the past two years, with non-oil exports remaining at $17-20bn per month Year to date, overall exports are marginally higher than last year. Against $218bn in 2016-17, export performance has hit $221bn in the Apr-Jan period this year, a growth of 1.23% While non-petro exports have grown marginally faster at 2.2%, petro exports have dropped by 5.8% during the same period Source: Ministry of ...
Steel cos seek removal of import duty, cess on coking coal
PTI Steel makers like Tata Steel and Visa Steel have sought removal of import duty and clean energy cess on coking coal and giving thrust to domestic infrastructure forecasting tepid global demand next year."Steel industry has suffered an increase in input costs due to high coking coal prices this year. Almost all the coking coal requirement is met through imports. Therefore, import duty on coking coal should be removed," Tata Steel India Managing Director T V Narendran told PTI."Exemption from clean environment cess is also required as there is no substitute reducing agent for steel making unlike power generation," he added.Visa Steel also echoed the same demanding that coking coal should be duty-free from the current 2.5 per cent."The import duty on raw ...
National Steel Policy sets capacity target of 300 MT by 2030-31
The Dollar Business Bureau India takes pride in its position of 3rd largest steel producer in the world, and yet stands as a net importer of steel in 2015-16. As per the National Steel Policy (NSP) 2017, the Ministry of Steel predicts annual crude steel capacity to reach 300 million tonnes (MT) in 2030-31 from 122 MT in 2015-16. The production goal is set at 255 MT in 2030-31 from 89 MT in 2015-16. For the same year 2030-31, the export target is 24 MT and per capita steel consumption is expected to rise to 160 kg from the current figure of 61kg. In comparison to the world average for per capita steel consumption (208kg), this seems to be a modest target. The draft policy aims to reduce imports of coking coal by half. Currently, 70% of India's coking coal requirement is ...
