For the iron and steel sector, the intelligent assessment to capture the performance of SMEs is being done by JPC and over the years this data is used for taking relevant policy decisions
As regards the steel industry, the demand from various end user segments is subdued. One of the major factors responsible for the mess is lack of adequate investment in finished products
The primary source of revenue for the government would be higher tax collections as the latest data show, but would be constrained by slower realisation of PSU disinvestment.
More mines would be put on auction route next year. The additional costs associated with the bidding procedure may initially be a little dampener unless these units are able to fetch a higher price for finished products
If we are asked to choose between poor demand and Chinese threat of imports as the single factor explaining the declining EBITDA of the steel industry, a large number would surely opt for the latter.
The impact of downward risks on the global steel industry is best reflected in crude steel production data just released by WSA.
One of the significant results of globalisation has been the respect for fair and free trade.
Stalled projects get a much- needed relief with the latest restructuring formula announced for the debts of power distribution companies.
Risk Management has long been acknowledged as a robust scientific tool to make an impact analysis of the possible downward or upward risks facing the entity in the short…
The latest casualty in the falling prices category happens to be scrap.
The average share of the construction sector in global steel consumption at around 50-55% implies that irrespective of the stage of growth of the economy, revival of steel demand critically…
RBI has unexpectedly cut down the Repo rate by 50 basis points last month. Unexpected, as the quantum exceeded the level of expectation.
A lot has been written on safeguard duty on steel. For the sake of an objective assessment, it is necessary to clarify some myths that have developed around the concept and its probable impact.
In the first eight months of 2015 the global crude steel production at 1080 MT exhibits a negative growth of 2.3%. India currently at number…
Now that the monsoon deficits are within the manageable limits, this should be the most appropriate time for the government to go ahead with all other pending reform measures.
Now that the government has appreciated the difficulties faced by steel industry from the alarming threat of rising imports…
Statistics always reinforce a premise and take forward a hypothesis beyond the realm of uncertainty.
The recent report by CMIE indicates that of the 970 projects worth R10,000 billion announced in FY15, nearly 38% have commenced construction. It is well known that steel intensity per unit of investment in project construction is higher compared to the level in real estate and therefore constructional demand for steel will rise
The iron ore scenario in the country is intractably linked with outlook for steel. The subdued demand and massive import inflows from China have adversely affected the steel production and, in turn, the demand for iron ore. Many of the small plants in IF and sponge iron segment are suffering from lack of local demand and have cut down on production
Total steel exports by China in January-July 2015 stood at 62.1 MT, 6.6% more than the previous year, while imports were down by over 9%. On annualised basis, the estimated direct steel exports in 2015 stand at record level of around 110 MT
A collective approach from a group of major and medium steel manufacturers to develop strong justifications in favour of Indian steel would go a long way to convince the major Indian end-users to choose India-made steel as has been done by the government in many other countries for their own industries
The financial results of a few steel plants in Q1 of FY16 clearly indicate that a big push in domestic demand can only bring some cheers to the bottom lines of producers. However, it is also to be appreciated that unless the average global prices move up significantly in the coming quarter, domestic realisation would continue to be under pressure
In Q1 of the current fiscal, steel consumption in the country has grown by more than 7%. The higher consumption is largely fed by rising imports that have grown by 57% in the quarter on top of 75% rise in FY15
India exported 5.9 MT of steel in FY15, a negative growth of 2% compared to the previous year, while imports at 10 MT grew by 76%. There was a net deficit of R238 bn in FY15 and it stood at R92.5 bn in Q1 of FY16, threatening to be much higher than last year
Conceptually, GST is unique as it combines a plethora of taxes and levies currently in vogue, like central excise, service tax, CST, VAT, entertainment tax, luxury tax, octroi, electricity duty and SAD/CVD under customs, and would make the tax procedures more fair, transparent and efficient
Large volume of steel imports is taking place only on price consideration. It is still worthwhile to initiate dialogue with the large buyers of steel and work out acceptable terms of transaction for supply from indigenous sources
The crux of the matter is either to match the cheap landed prices of imports or make imports prohibitive by enhancing customs duties, imposing AD and countervailing duties and wait for further exchange depreciation