May 5, 2015 12:04 pm Published by

Tata Steel spikes up over 3% on BSE

Tata Steel led the pack on the BSE in Tuesday morning trade. At 10.35 am the share was quoting at Rs 373, up 3.24 per cent on its overnight close at Rs 361.30.

ONGC extended yeterday’s firm sentinment into trading today. It was up 2.85 per cent at Rs 337 as against Rs 327.65 at close on Monday.

TCS rode up 2.06 per cent to quote at Rs 2,530.10. The share had ended yesterday’s session at Rs 2,479.10.

Vedanta was trading at Rs 216.30 as against Rs 212.30 at close yesterday. This was a gain of 1.88 per cent.

Larsen & Toubro climbed up 1.65 per cent to trade at Rs 1,657.35 as against Rs 1,630.50 at close overnight.

Duty cut may not boost iron ore exports

The cut in export duty for low grade iron ore to 10 per cent is expected to provide a slight relief to Goa-based miners, but experts say it is too little too late to revive exports from India.

Finance Minister Arun Jaitley has lowered the export duty on iron ore with 58 per cent iron content, while maintaining the duty at 30 per cent for higher grade ore. Typically, this kind of iron ore is found in Goa, which till 2009-10 was the largest exporter of the mineral from India.

International prices

Industry observers said the international prices of iron ore are so low that there might not be a market for Goa’s low grade iron ore.

“Today, due to overcapacity, mining giants like Vale, Rio Tinto and others are selling high grade ore (62 per cent iron content and higher) at $55-56 a tonne. The market for low-grade iron ore is diminishing internationally as the Chinese steel mills have reconfigured to use higher grade ore. Low grade iron ore is trading at less than $50 a tonne, which leaves little room to have good margins,” said a mining industry official.

Goa’s lower grade iron ore was primarily sold to Chinese mills at a time when 62 per cent iron ore was selling internationally at $177 a tonne, around four years ago. However, after India imposed an export duty of 30 per cent it lost out on market share to other countries.

RK Sharma, Secretary General of Federation of Indian Mineral Industries (FIMI) said that the increase in royalty last year, the contribution of Goa miners to the district mineral fund (10 per cent), and other regulatory costs leave little room for profitability.


Last year, the royalty miners of iron ore was increased to 15 per cent of the sales value from 10 per cent.

“With about 52 per cent going in duties and taxes, Goan miners are left with 48 per cent out of which transportation costs need to be paid. I doubt there will be any substantial export even after the duty cut,” said Sharma.

However, Goa-based companies like Vedanta Ltd welcomed the move for an export duty cut and saw it as a relief.

The company’s Chief Executive Officer of the Iron Ore Business, Kishor Kumar, said that the decision is a shot in the arm for the Goan iron ore industry.


China may lift 3-year ban on imports of rapeseed meal from India


China, which had imposed a ban on the import of rapeseed meal from India in January 2012 following the detection of ‘malachite green’ in some of the consignments, is likely to lift it soon, the Solvent Extractors’ Association of India (SEA) said.

Malachite green is a dyestuff used for making jute bags, which, according to experts, could cause cancer if the level exceeds stipulated norms.

“We are at the fag end of resolving this issue. China should open up its market in a month or two,” a senior official of SEA said.

India and China have been talking to resolve this issue and are expected to soon sign a memorandum of understanding, it is learnt.

With the Chinese ban, South Korea became India’s largest importer of rapeseed meal at 5.12 lakh tonnes (lt), followed by Thailand at 2.04 lt, Iran at 1.41 lt and Vietnam at 68,824 tonnes.

India’s rapeseed meal exports rose by 16 per cent during 2014-15 at 10.67 lt as against 9.16 lt in the previous year.

India to import more iron ore at low global prices

 Declining iron ore prices in global markets have prompted imports of an all-time high of 15 million tonnes (mt) in 2014-15 to meet the increasing demand from domestic steel makers.


However, the country managed to export only 4.5 mt during this period. Imports are expected to be more than exports in 2015-16 too, sources said.

Though the mines in Odisha have reopened, iron ore imports are still expected to be around 10 mt this fiscal, given the downward trend in international prices, sources added.

Domestic steel companies, which do not have captive mines, require around 95 mt of iron ore per annum, it is learnt.




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This post was written by Atlantic Admin