Explained: What is behind rise in steel prices
It was apparent that unabated Chinese appetite for iron ore and coking coal on the back of 7% rise in crude steel production (China produced 904.2 MT of crude steel during January to November 2019) was the primary driver to t
Budget 2020 wish list: Relief in personal income tax much expected
Budget 2020 India: There is a need for reforms in contracts and guidelines, relevant for the critical sectors of the economy to make them vibrant, user-friendly, transparent and facilitating quick redressal.
Thrust on steel exports led to higher capacity utilisation: Sushim Banerjee
Along with prices of major raw materials, there is a marginal rise in demand for steel, primarily for restocking purposes. In October’19 there was a general feeling in the market that steel prices have reached the bottom.
State governments’ rising share to characterise investment scenario in infrastructure
The FDI and other foreign sources of funding can make up the balance of the investment required. It is therefore gratifying that the high-powered committee formed by the government to identify major projects for funding in ne
Economic slowdown: What will impact demand and exports, find out here
Continuing with the premise that liquidity issues have afflicted Indian economy and therefore the regular production trend of the commodity sector, a few more data by the Reserve Bank of India (RBI) have come to light.
Repo rate-market rate of interest link diluted impact of RBI policy
While the flow has been reported to be lower than requirement, the cost of credit has been on the rise.
Decline in industrial growth pulls down steel output
The issues responsible for the subdued performance of mining and electricity sectors are different.
Investment, expenditure likely to positively impact demand
The basic presumption of high-cost credit adversely affecting the flow of investment in the economy has not been eloquently proved by events in the past six months.
Steel export thrusts to be sustained on markup in global prices
In Q3 of FY19, Indian economy grew by 6.6% and by 5.8% in Q4. If these rates are superimposed on today’s growth numbers, may be in reversed fashion, GDP in FY20 may reach a growth level of around 5.7% in the minimum which,
China influencing global growth trend in industry, services
The domestic steel market of China has been growing by 4.1% in 2017, 7.9% in 2018 and is likely to grow by 6.8% in 2019.
Market fluctuations not allowing prices of finished products to rise
Maintenance activities in steel plants have gained prominence and this is a well established policy and seldom is given priority when the pressure on production to cater to a growing market is predominant.
Downward trend in prices of raw materials of steel to lower CAD
In the first seven months of the current fiscal, the finished steel consumption as per JPC data has gone up by 4.2% as compared to last year.
Trends in commodity prices and rules of trade
There is a distinct shift from coal to natural gas for electricity generation in advanced countries and India also must enhance the availability of natural gas for increasingly higher use by steel plants to reduce carbon emis
Slowdown has hit steel production; export-dependent nations more affected
This was truly evident in the latest World Economic Outlook report of IMF as it has coined the term ‘synchronised slowdown’ to describe the global economic movement in the recent period and make projections for next year.
Ways to survive and grow amid challenges in steel sector
The consumption of railway materials including rails during April-August ’19 at 0.7 million tonne shows a growth of 18.3% as compared to last year.
Higher steel exports to give momentum to production
The manufacturing PMI for India for September 2019 at 51.4, though exceeding contraction scenario, is no improvement over previous month.
Regional variations in output only show uncertainty in global steel market
While policy support from the government in monetary, fiscal and trade areas is all set to boost the local demand and raise the animal spirit in the private corporate sector, the thrust on steel exports by strengthening prese
Corporate tax cuts to give excellent support to steel industry
To top it all, the GDP in Q1 of Fy20 at 5% confirmed that something drastic must be done to get the economy back to a higher growth trajectory.
Need better method of measuring capital formation
The major categories identified in NAS series with 2011-12 as base year are dwellings, other buildings and structures (DOBS) and machinery and equipments.
Advance intimation of steel imports will help industry face challenges
A common prescription of industrialisation has been the infant industry argument. It has been widely accepted that state support is a must for the growing stage of any industry till it is adolescent.
Urgent steps are required to eliminate biasness of economy
During April-July’19, India’s steel consumption grew by 6.6%. In this period, the total steel imports have reached 2.7 MT with a share of 8.4% in total steel consumption. This is an area that can provide some additional s
Steel industry: Capital formation better indicator of growth
Steel intensive structures are chosen due to long term cost advantage (life cycle cost analysis), durability and flexibility to support modification and replacement and above all for environmental friendliness of steel.
Steel pricing spread helps assertain strength of variables
In the next three decades the deregulation of the steel market (abolition of freight equalisation) and imports having been put under open general license led to a paradigm shift to the concepts of supply, capacity creation th
Stimulus is expected to rejuvenate the economy
The above stressed scenario in Q1 has been captured by IIP data. Industrial output growth in June ’19 at 2.0% has brought down Q1 rate to 3.6%.
The economy can sustain higher public investment
The growth rate of total imports from an annual average of 31.3% in low growth periods has currently come down to 23.6%, thanks to the indigenisation drive by the government in defence, power, steel, machineries, among other
Steel industry’s fortune has shifted to Asia, Africa
As per OECD report on latest development in steel making capacity, July’19, the global crude steel capacity in 2018 has come down to 2,233.7 mt from 2,240.1 mt in 2017.
Government support must for competitive steel industry
These trends have become inseparable engines of growth perspective of all the countries characterised by dominant share of manufacturing and industry.
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