News this week
JSW to reduce prices of steel products
JSW Steel Ltd (JSL), a part of OP Jindal group, announced that it will reduce the prices of steel products for the month of October. The reduction is in the band of Rs 500-750 per tonne for flat products and Rs 1,000 per tonne for long products.
This decision to cut price, for a second time in a month, comes despite the higher import duty. Recently the market has been facing reduced demand for steel products and there are a number of cheap alternatives available the market, which seem to have driven the price cut.
TMT bars of Chinese make have been rapidly increasing in the market, as they are sold under the category of alloy bars. The imported products are cheaper by at least Rs 5,000-6,000 per tonne compared to the domestic prices... Read more
Fitch: India Supreme Court ruling to hit steel, utility earnings
September Supreme Court of India (SCI) decision to cancel almost every coal block allocation since 1993 will have a negative financial impact on a number of Indian power and steel companies, says Fitch Ratings. The decision is broadly credit negative for these sectors, but should have no impact on the ratings of any Fitch-rated steel or power sector corporates.
The decision to cancel 214 of 218 coal licences follows a ruling in August in which the SCI declared the licence allocation process as arbitrary and illegal. The cancelled licences include 46 producing or near-production blocks, and are owned largely by power and steel sector companies. The producing mines will be allowed to continue operations until March 2015, at which point they will be handed back to state firm, Coal India Limited, until they are sold as part of a new auction process... Read more
SAIL’s Salem Stainless used in Mangalyan
Steel Authority of India Ltd has contributed towards the historical achievement of Mars Orbiter Mission (MoM) by providing stainless steel for fabricating the fuel and oxidizers tanks of the PSLV-XL which carried the Mangalyan to the red planet, 65 crore kms from earth. The quality of the AISI 304 L grade l stainless steel manufactured at SAIL’s Salem Steel Plant had to be of such high standard that it could withstand the action of highly reactive fuel and oxidizers over a long period of time without developing any leakages.
It is the unmatched quality of SAIL’s Salem Stainless that makes it the trusted and preferred steel for such prestigious projects. SAIL had also provided stainless steel for the PSLV that launched the Chandrayan in 2008 and other PSLVs. SAIL Chairman CS Verma: “We at SAIL feel extremely privileged to have contributed towards ISRO’s success in putting Mangalyan in the Martian orbit in its maiden attempt. SAIL is fully committed and geared up to manufacture and supply quality steel for projects of national importance.”
Nalco declares dividend
Nalco (National Aluminium Company Ltd) in a filing to BSE has informed that the total dividend amounting to Rs. 386.59 crore has been approved by the shareholders in the 33rd AGM held on Saturday. The final dividend of 0.40 paise per equity share in addition to interim dividend of Rs. 1.10 per equity share will be paid for the year ended 31 March 2014. The payment of the dividend is on 15 October 2014.
RBI keeps repo, CRR unchanged
RBI Governor Dr Raghuram Rajan announced the Fourth Bi-monthly Monetary Policy Statement for 2014-15 on Tuesday, September 30, 2014. Reserve Bank of India kept the repo rate unchanged at 8%. The central bank also kept CRR, SLR unchanged. The reverse repo rate was also maintained at status quo of 7%. However, it said it would cut the ceiling on bonds that must be held-to-maturity from the current 24 percent to 22 percent in stages starting in the bi-weekly cycle beginning in Jan. 10, 2015. It expects to complete the process by September 2015.
Since the third bi-monthly monetary policy statement of August 2014, global activity has been recovering slowly from the setback in Q1 of 2014, on the back of strengthening consumer spending and gradually improving labour market conditions in advanced economies (AEs) like the United States... Read more
GDP growth to accelerate to 6.3% in FY16: RBI
The Reserve Bank of India (RBI) said the country's GDP growth, which it estimates to be 5.5% in FY15, will improve to 6.3% in 2015-16. "For 2014-15, real GDP growth is projected to lie between 5% and 6%, with a central estimate of 5.5%... for 2015-16, real GDP growth is projected to rise to 6.3%," the central bank said in its monetary policy report. The RBI said the 5.7% growth in the first quarter of the current fiscal surprised on the upside and stated that the same has slackened in the second quarter. One of the major contributors for the decline in growth will be the monsoon deficiency, which also affects non- agricultural sectors through demand effects, RBI report said.