Steel producers to benefit from import curb: India Rating
The government’s recent move to curb imports of both alloy and non-alloy steel products is expected to help increase the realisations of domestic producers of these goods, a rating agency said today.
The government hiked the import duty on non-alloy steel products by 2.5 per cent as domestic producers struggle to cope with surging cheap imports from China and South Korea, among other countries.
Non-alloy steel flats now command an import duty of 10 per cent, while non-alloy steel longs attract a duty of 7.5 per cent.
Anti-dumping duty on some alloy steel products is directionally positive in the long-term, India Rating and Research (Ind-Ra) said in a report.
The import restriction is expected to help increase the realisations of domestic alloy and non-alloy steel producers, it added.
The Finance Ministry has imposed anti-dumping duties on the import of hot-rolled stainless steel (HR SS) flats of grade 304 originating from China, Malaysia and South Korea.
The duties imposed are in the range of $180 per tonne for imports from Korea to $316 a tonne for shipment from Malaysia.
The alloy steel sector, of which stainless steel is a major part, has been particularly vulnerable as imports have averaged 25 per cent of the domestic output over the last few years despite having capacity utilisation of 50-60 per cent, according to the report.
The non-alloy steel sector, however, has fared better where imports have been nearly 8 per cent of domestic production with capacity utilisation of 80-85 per cent.
The quantum of imports of alloy steel products has always been higher as the domestic price per tonne of alloy steel is significantly higher than that of non-alloy steel, the report said.
Iran may resume Basmati imports after Oct.
Basmati exports to Iran are likely to increase only after October. Currently, there was a delay due to the Iranian government’s policy of Indian units and exporters being required to be registered with the Iranian Health and Medical Education Ministry, industry sources said.
“The main factor is the initiation of a new process which requires Indian mills to be assessed for good manufacturing practices. It’s a slow process, since few units have got themselves registered so far,” an official of the All India Rice Exporters’ Association (AIREA) said.
According to exporters, the Iranian government is likely to resume issuing the import permits only after Ramadan.
“A resumption of issuing import permits will take place after Ramadan, which is in July,” a senior official of Apeda said.
It may be recalled that Iran, the biggest buyer of Indian Basmati, had stopped issuing authorisation last October, which saw exports of the aromatic rice decline from 1.44 million tonnes (mt) to 0.94 mt in the last fiscal. Value-wise, it dropped from $1.4 billion in 2013-14 to $600 million in 2014-15.
Kamarajar Port seeks RFQ for conversion of iron ore terminal
The Kamarajar Port Ltd (KPL) has sought requested for qualification (RFQ) for the conversion of its existing iron ore terminal on “as is where is” basis into a common-user coal terminal on design, build, finance, operate, transfer (DBFOT) basis, the Port said.
The RFQ document, containing instructions to applicants and criteria for evaluation and project profile, can be obtained from the registered office of KPL on submission of a non-refundable demand draft of Rs 63,000 inclusive of value-added tax (VAT) drawn in favour of Kamarajar Port Limited and payable at Chennai, a Port tender notice said.
The document can also be downloaded from the Port’s website, the notice informed.
KPL said the document can be obtained on any working day between 1000 hours and 1700 hours. The completed application in the required format and containing all the information requested should be submitted before 1500 hours on August 6, 2015 at the KPL office, the notice instructed.
Narendra Tomar meets Telegana CM : Discuss plans for a 3 mt steel plant and mine auction
Union Minister for Steel and Mines Narendra Singh Tomar called on the Chief Minister of Telangana K Chandrashekar Rao in Hyderabad on Monday. The two leaders discussed the status of the proposed greenfield steel plant in the state among other issues related state’s steel and mines sector. The Telegana CM sought support in further expediting the steel plant project which is tipped to boost the state’s economy and generate jobs.
Incidentally, Steel Authority of India Limited (SAIL) has prepared a feasibility report and carried out site inspection and market analysis for the proposed plant. Accordingly, recommendations have been made for consideration by the state government and Government of India. These include tax concessions, interest and capex subsidy and recalculation of internal rate of return.
During the meeting, Tomar also presented a Goelogical Survey of India (GSI) booklet on geology and mineral resources of Telangana and district resource maps of all districts to the Chief Minister. Tomar proposed that GSI and MECL, two government organizations under Ministry of Mines can assist the state in assessing its mineral resources for revenue generation. Similarly, state can consider utilizing the services of MSTC, a PSU under Ministry of steel, for auctioning of mines to monetise the state’s mineral resources.
On his part, Rao also assured quick action on identification and auctioning of mines. Other issues that were also discussed include, a proposal to give preferential treatment to products of Vizag Steel for use in the state’s infrastructure and industrial development, setting up of District Mineral Foundation in various districts of the state and identification of mines for auction.
This post was written by Atlantic Admin