Spurt in global steel prices to boost export earnings of Indian firms

Kolkata: A 30% spurt in global steel prices since June 2017 led by a significant cutback in China's production capacity is likely to boost fortunes of domestic steel firms in the coming months. The perk up in international prices has helped raise domestic steel prices by 10% in last 2 months and is likely to boost export earnings of steel firms given the moderate increase in domestic steel demand, according to the latest sector report by ratings agency, ICRABSE -0.73 %.

Benchmark prices of Chinese hot rolled coil (HRC) export offers rallied by over 30% between June and August 2017, reaching US$ 555 per tonne on Tuesday (August 29, 2017). International steel prices have staged a sharp recovery since June 2017, driven by the Chinese government efforts to reduce domestic steel overcapacity. This has also led to a decline in Chinese steel exports on the back of resilient domestic steel demand in that country, ICRA said.

Earlier saddled with surplus capacity of over 300 million tonne (mt), the Chinese government has closed down 42 mt steel capacity between January-May 2017, on top of shutting down steel capacity of 65 mt in 2016. Incidentally, the last time Chinese HRC prices averaged above US$ 550 per tonne was in April 2013. “Continuity of this price momentum hinges upon sustainability of demand from steel intensive real-estate and infrastructure sectors in China”, Jayanta Roy, senior vice-president, ICRA said.

Domestic steel prices too have taken a cue from the buoyancy in international prices despite a moderate domestic steel demand growth of 4.4% in the first four months of the current fiscal. Between July and August FY18, domestic HRC prices have increased by around 10%, reaching Rs 39,250/tonne in the fourth week of August from Rs 35,750/tonne in the first week of July. Additionally, domestic steel mills have also continued to push exports, which grew 66% between April and July FY18. “A steadily rising export volume has enabled domestic steel mills to register a healthy annualised production growth of 7% and a capacity utilisation of around 81% during the period from April to July FY18,” the ICRA report added.

ICRA said operating margins of the steel industry (out of its sample of 22 large and mid-sized steel players, accounting for about 60% of current domestic capacity) contracted to 13.1% in Q1FY18 from 15.7% in Q4FY17 led by lower steel prices and higher coking coal costs in Q1 FY2018. “However, gross contribution levels of steel players are likely to improve sequentially in the current quarter, given that steel mills stand to benefit from buoyant steel prices in both the domestic and international markets in Q2FY18,” Roy added. ICRA, however, believes credit profile of domestic steel companies is unlikely to improve significantly in near term despite the current buoyancy in steel prices since on an absolute level elevated debt levels of most steel companies will keep the industry’s coverage indicators depressed.

Indian branded apparel market to touch Rs 30,000 crore in 3 years

MUMBAI: The branded apparel market estimated at Rs 20,000 crore is expected to touch Rs 30,000 crore mark in the next three years.

The size of Indian apparel garment market is Rs 2,45,000 crore, out of which the organised sector is Rs 45,000 to Rs 50,000 crore.

Garments / Textiles India Exports Imports

"Out of total apparel garment in organised sector, branded apparel market is estimated at Rs 20,000 crore and is expected to grow at 15 per cent per annum to touch Rs 30,000 crore in the next three years period," Don & Julio Apparels Worldwide managing director Ramesh Jain told reporters here.

The growth in branded apparel sector is in premium quality products & brands as a result of higher disposable income of young generation and their increased exposure to international brands & products like never before in India, Jain said.

Don & Julio Apparels Worldwide has launched premium shirts, trousers, suits and jackets for men in the Indian market. 

Moong and urad rates up after Import Ban

Nagpur: After the government banned imports of urad and moong, rates of the two pulses have gone up by Rs1000 and Rs350 a quintal respectively in the bulk market.
In lines of tur, which is the commonly consumed type of pulses throughout the country, a similar move was taken for moong and urad last week. Tur rates were increased by Rs150 a quintal, during the week.
According to analysis compiled by the Itwari Grain and Seeds Merchants Association, a ripple effect of the ban on imports was also seen in other types of pulses.
Following the import ban, prices of moong dal are at Rs80 a kg for the best quality. "The lowest grade is available at Rs56 in the wholesale market. A margin of Rs5 to Rs10 is added in the retail stores. Urad dal rates have now crossed Rs100 a kg in the wholesale market itself. The cheaper grades of urad dal are also in the range of Rs75 to Rs80 a kg," said Pratap Motwani of the Itwari Grain and Seeds Merchants Association.
Motwai said the rates of Chana too are moving up. The import ban has not been imposed on this commodity. "However, a major reduction in yield at Australia, which is one of the main centres of import, has increased the rates at home. Chana Dal, which is the processed form, is now at Rs90 a kg. Tur dal is priced at Rs65 a kg, in the wholesale market," he said.

imports of urad and moong

Traders Warn of stopping LPG Import as India Denies Permit to Nepali Bullets

Traders have warned that they will stop importing liquefied petroleum gas from upcoming November as India has not allowed bullets with Nepali number plates to supply the fuel.
The warning comes after no talk was held between the two countries as expected during Prime Minister Sher Bahadur Deuba’s recent visit to India.
Around one year ago, the Nepal government had written to India seeking permission for bullets with Nepali number plates to enter India. But, the southern neighbour has maintained silence over the issue.
“After our investment in the purchase of bullet got wasted, there is no point in importing gas from Indian transporters,” says Shiva Prasad Ghimire, President of Nepal LP Gas Industry Association.
India’s Petroleum and Explosive Safety Organisation has to issue such permits, certifying that the vehicles are safe enough to supply the petroleum product.
With a hope that India would issue the permit soon, Nepali traders had invested around Rs 5 billion to purchase nearly 775 vehicles. Two of them have already arrived in Nepal whereas 450 are ready to be brought here, according to Ghimire.
It has been learned that Indian transporters have put pressure on the Petroleum and Explosive Safety Organisation as issuance of permits to Nepali bullets would end their monopoly.
For last 40 years, around 500 Indian bullets are being used to ferry

Canada allows imports of Indian Pomegranates, Banana, Mangoes & Okra for first time : APEDA

India exported $0.69 million grapes, to Canada last year, after access was granted by that Country

NEW DELHI: Canada has allowed market access with certain conditions to Indian horticultural products like custard apples, pomegranates, okra, bananas, mangoes – this was relayed to the Indian industry by India’s Agricultural and Food Processed Food Products Export Development Authority (APEDA) confirming the Canadian Food Inspection Agency’s (CFIAs) approval.

The conditions for the shipments that CFIA has specified included – origin of the material be clarified in a detailed manner on the shipping documents and that the produce is free of soil, pests, and leaves.

APEDA’s letter detailed, “interested exporters of above-mentioned commodities are advised to contact the Canadian importers to start export from India subject to compliance of above mentioned requirements.”

The letter also clearly stated that exporters must keep in mind that packaging, labeling and other requirements pertaining to Canadian import requirements are met diligently.

It is not clear however whether access was granted to all the horticultural products mentioned above at once or separately in parts.

India exported $0.69 million grapes, to Canada last year, after access was granted by that Country. This was a growth of 32.59% compared to -36.83% growth seen in 2014-15.

There is the news that a sizeable quantity of pomegranates is likely to be shipped commanding good prices.

This positive development comes after the resumption of talks on free trade between the two countries after two years. Canadian and Indian officials are under discussions.

India Natural Rubber imports may increase

Natural Rubber imports to India are expected to increase on the back of declining prices of Natural Rubber in the global market.Natural Rubber imports during the period of April and July this year declined by about 14 percent to 130543 tons when compared to the corresponding period last year.
The decline in imports was on the back of the increase in global prices and higher production in India. Natural Rubber production in India during the period was seen to increase by about 7.5 percent to 201000 tons.

Natural Rubber  Imports to India

Continuous rain has affected tapping, resulting in a supply crunch in the local market in the last few days. While local prices are hovering around Rs 130 per kg, crumb Rubber prices have dropped below Rs 100 per kg in the international market, which is anticipated to help imports.
Resources:   commodityonline.com

Indian finished steel exports up 64%; imports rise 42% in July

India’s export of finished steel surged by 64.2% to 0.770 million tonne in the month of July against the 0.469 million tonne in the same month a year ago, according to a report.

On the other hand, finished steel imports also jumped by 42.2% at 0.798 million tonne in the said month this year against the 0.561 million tonne last year, said the report by Joint Plant Committee (JPC), which gathers data on iron and steel sector in India.

“India was a net importer of total finished steel in July 2017 but maintained its net exporter status for the cumulative period, i.e. during April-July 2017,” it said.

During April-July period this year, exports of total finished steel were increased by 65.5% to 2.807 million tonne as compared to 1.696 million tonne in the same period last year, the report said.

The imports of total finished steel was 2.505 million tonne in April-July period, an increase of 4.7%, as compared to 2.393 million tonne during the same period a year-ago, it added.

The total finished steel consumption increased by 3.7% to 6.905 million tonne in July this year from 6.660 million tonne in July 2016.

However, the overall consumption finished steel was declined by 4.2% in July from 7.210 million tonne in June 2017, said the report.

During April-July period this year, total finished steel consumption in the country surged by 4.4% to 27.911 million tonne as compared to 26.736 million tonne in the corresponding period last year, on account of rising output for sale and imports, it said.

India is third largest country in the production of crude steel followed by China and Japan.

steel exports from India