1. business and industrial
2. energy
3. coal

Th u rs d ay 1 3 , N ove m b er 2014
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 Govt mulls raising import duty on steel to
check cheap Chinese imports: Tomar
 Govt to complete coal block allotment by
Feb: Coal Secy Anil Swarup
 Centre mulls lowering iron ore export duty
if prices stay subdued
 Posco to invest $20 mn in Gujarat: Korean
ambassador
 Tata Steel Q2 net profit up 37%
to Rs 1,254 cr
2
Thursday 13, November 2014
Daily
MMR Landed Prices
London Metal Exchange : Wednesday 12, November 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6688.00
6752.00
6752.50
6753.00
6754.00
6710.00
64.5
1,60,800
MMR LP
4,49,138
3-mth
6625.50
6688.00
6689.00
6684.00
6685.00
6675.00
63.5
-1225
14-D MA
4,47,482
PP (HCL)
4,51,551
Average
10-days - 6735.10
20-days - 6730.40
30-days - 6732.60
Tin High Grade
Spot
19925.00
20145.00
20150.00
20149.00
20150.00
22840.00
225.0
9,905
--
--
3-mth
19975.00
20100.00
20125.00
20149.00
20150.00
22865.00
150.0
-90
--
--
--
--
Average
10-days - 19905
20-days - 19727.50
30-days - 19890.20
Lead
Spot
2018.00
2032.00
2034.00
2045.00
2046.00
2040.75
16.0
2,16,375
MMR LP
1,40,095
3-mth
2025.00
2042.00
2043.00
2055.00
2056.00
2049.00
18.0
-1225
14-D MA
1,38,109
PP (HZL)
1,47,000
Average
10-days - 2005.90
20-days - 2005.20
30-days - 2028.20
Zinc Special High Grade
Spot
2237.00
2274.00
2274.50
2280.00
2281.00
2120.00
37.5
6,89,700
MMR LP
1,60,910
3-mth
2243.00
2279.50
2280.00
2287.00
2288.00
2132.00
37.0
-2025
14-D MA
1,60,311
PP (HZL)
1,69,500
Average
10-days - 2268.2
20-days - 2251.50
30-days - 2269.30
Aluminium
Spot
2018.00
2061.50
2062.00
2082.00
2083.00
1865.50
44.0
44,06,575
MMR LP
1,58,150
3-mth
2014.50
2049.00
2049.50
2072.00
2073.00
1900.00
35.0
-7925
14-D MA
1,56,978
PP (Nalco)
1,66,900
Average
10-days - 2046.80
20-days - 2003.90
30-days - 1969.20
Aluminium Alloy
Spot
2030.00
2035.00
2045.00
2047.00
2048.00
1975.00
15.0
26680
3-mth
2060.00
2060.00
2070.00
2073.00
2074.00
1975.00
10.0
-20
Average
10-days - 2055
20-days - 2072
30-days - 2076.30
Nickel
Spot
15090.00
15525.00
15535.00
15684.00
15685.00
18693.00
445.0
3,88,776
--
--
3-mth
15160.00
15590.00
15600.00
15749.00
15750.00
18775.00
440.0
-558
--
--
-Copper
Aluminium
-01-Nov
01-Nov
Zinc
Lead
10-Nov
06-Nov
Average
10-days - 15306.50
20-days - 15244.50
30-days - 15626.30
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/LB)
Antimony
99.65%
9,200
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
14.25
Tantalite
30% Ta2O5
86.00
Titanium Ferro-vana
Con. Ti02
585.00
24.90
Silicon
2,050
Week ended Avg of Steel Prices: 08/11/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Ferro Alloys :
Mandi
29,600 HMS
29,200 CRP(LSLP)
Mumbai Mkt rates in kgs :
Mumbai
29,900
32,600
Ferro Moly
Kolkata
29,400
1200
Indicative Domestic Market Rates (Rs./kg)
Mumbai
12-Nov
Chennai
28,800 MS Ingots
29,800
83 Titanium
Bhiwandi
38,800
Prev
Prev
-510.0
-510.0
450.0
-
450.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
173.0
185.0
137.0
1,485.0
1,090.0
173.0
185.0
137.0
1,485.0
1,090.0
180.0
189.0
132.0
1,467.0
1,108.0
180.0
189.0
132.0
1,465.0
1,103.0
475.0
435.0
474.0
435.0
---
---
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-329.0
-341.0
136.0
-329.0
-341.0
136.0
435.0
-330.0
147.0
435.0
-330.0
146.0
Nov'14
Dec'14
Jan'15
Rate
303.45
302.50
302.60
Kanpur
38,500
Durgapur
34,800
168
Comex Copper (cents/lb)
Delhi
12-Nov
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
29,900
Ferro Silicon
Change
-0.2
-0.3
-0.3
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
12-Nov
26,300
35,800
1,164.5
15.62
1,158.9
15.61
Prev
25,070
35,900
1,156.5
15.57
1,162.8
15.66
Forex: Nov 11, 2014 (Rs/Unit Currency)
Buy
USD
61.65
61.56
EURO
76.56
GBP
97.76
97.63
SGD
47.65
—
—
AUD
53.19
YEN
0.5320
0.5312
SFR
63.69
Sell
76.47
47.57
53.13
63.58
Buy
Sell
Customs Notified Rates: Oct 02, 2014 [Rs.(Imp/Exp)]: US$ 62.30/61.30;Pound Sterling 101.25/99.00;Euro 79.00/77.10
Daily
3
Thursday 13, November 2014
Asian stocks fell for the first time in five days
largest economies bear a certain responsibility
after the Standard & Poor’s 500 Index retreated
to take the lead in fighting climate change,
from a record and the yen gained against the
other nations may be more willing to follow suit
dollar. The MSCI Asia Pacific Index slipped 0.2
when envoys meet in Lima next month for the
percent to 141.06 as of 9:01 a.m. in Tokyo. More
next round of UN-organized negotiations.
than $3 trillion has been added to the value
Currency Market
signs the U.S. economy is weathering the end of
Abe will delay a planned sales-tax increase and
call an early election.
Among the global macro updates, the
USD/INR Overnight VAR
Data releases today
17:00
16:00
growing speculation that Prime Minister Shinzo
15:00
extending a six-year high, as the yen fell amid
14:00
Japanese stocks rose, with the Topix (TPX) index
13:00
while European GDP data are due tomorrow.
12:00
on retail sales and industrial output today,
11:00
and Asia move to bolster growth. China reports
USD/INR - 12/11/14
61.47
61.48
61.49
61.50
61.51
61.52
61.53
61.54
61.55
61.56
61.57
9:00
bond purchases, and as central banks in Europe
10:00
of global equities in the past four weeks amid
0.3271
Forecast
Previous
USD Unemployment Claims
282K
278K
USD JOLTS Job Openings
4.81M
4.84M
Source : Mecklai Financial
historic emissions deal between China and the
U.S. removes a key barrier in United Nations-
The yen fell toward a seven-year low on
led efforts to craft a global climate pact. Now
reports Japanese Prime Minister Shinzo Abe
President Barack Obama has to find a way to
decided call a general election. Australia’s dollar
make it happen at home. An international
slid after a Reserve Bank official said policy
agreement to curb greenhouse gases would go
makers haven’t ruled out intervention. The yen
nowhere without participation from China and
dropped against 15 of 16 major peers as the Jiji
the U.S., the two biggest producers of carbon
newswire reported ruling Liberal Democratic
emissions, and until yesterday they were far
Party lawmaker Tadamori Oshima as telling
apart on numerous issues.
reporters “it seems Prime Minister Shinzo Abe
With Obama and Chinese President Xi
has also finally made his decision and chosen
Jinping now in accord that the world’s two
to go to the people.” The currency dropped this
week amid speculation Abe would delay a sales
tax increase so he could win a mandate for it at
the polls. The euro held a loss before German
data forecast to confirm consumer prices fell
last month.
The US Dollar Index (DX) traded higher by 0.2
percent yesterday on the back of weak market
sentiments in later part of the trade which led
to increase in demand for the low yielding
4
Thursday 13, November 2014
Daily
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.33
USD / INR
-
ATM Options (put/call)
0.15
Forward Rates v/s INR (Export/ Import)
November
December
January
April
July
October
61.51/ 51
61.45/ 46
61.68/ 71
62.11/ 14
62.51/ 54
63.68/ 71
64.78/ 81
65.84/ 87
-
-
-
0.00/0.52
0.00/0.73
0.00/0.90
0.00/1.35
0.00/1.73
0.00/2.10
EUR / USD
1.2439
76.51/ 51
76.44/ 45
76.73/ 76
77.29/ 32
77.79/ 84
79.31/ 35
80.76/ 79
82.18/ 21
0.15
USD / JPY(100)
115.79
53.12/ 12
53.07/ 08
53.27/ 29
53.67/ 69
54.03/ 06
55.10/ 14
56.13/ 17
57.13/ 18
0.69
GBP / USD
1.5770
96.99/ 00
96.90/ 92
97.27/ 74
97.93/ 26
98.51/ 71
100.28/ 95
101.94/ 01
103.55/ 92
0.05
USD / CHF
0.9665
63.63/ 64
63.57/ 59
63.82/ 84
64.28/ 31
64.74/ 77
66.05/ 06
67.35/ 27
68.56/ 51
3.06
AUD / USD
0.8695
53.50/ 51
53.45/ 47
53.64/ 68
54.01/ 06
54.36/ 41
55.37/ 43
56.33/ 38
57.25/ 31
Source : Mecklai Financial
currency. However, unfavorable economic data
sentiments remained bearish as outflows from
from the country restricted upside in the DX.
the SPDR gold trust showed no signs of slowing.
The currency touched an intra-day high of 87.98
Among the other precious metal prices, spot
and closed at 87.91 on Wednesday.
silver prices also declined taking cues from
The Indian Rupee appreciated around 0.2
falling gold prices. Strength in the dollar and
percent in yesterday’s trading session. The
declining speculative interest in the commodity
currency appreciated on the back of inflow of
is acting as a negative factor for prices. As per
foreign funds in equities and debt markets.
Angel Broking analyst report, precious metals
India’s Consumer Price Index (CPI) dropped to
pack to trade lower continuing its recent run of
5.52 percent in October as against 6.46 percent
losses as investment demand remains weak due
in September. Industrial Production grew by
to outflows from the ETF while lack of economic
2.5 percent in September from 0.4 percent
data from the US will also act as a negative factor
in August. Manufacturing Output rose by 2.5
for prices as investors look for cues from energy
percent in September with respect to fall of 1.4
markets. The optimism in the US will lead to
percent a month ago.
strength in dollar in turn exerting downside
Precious Metal
pressure on the precious metals pack.
Spot gold prices declined on Wednesday as
Base Metal
drop in crude oil prices coupled with gains in
The base metals pack apart from Copper
dollar index pulled the metal down. The overall
traded on a positive note in yesterday’s trade.
Prices rose on the back of expectations of
Market Highlights - Gold (% change)
Gold
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
(Dec’14)
MCX Gold
(Dec’14)**
Unit
Last
Prev.
day
as on November 12, 2014
favorable Chinese economic data on Thursday
WoW MoM
along with recovery in industrial activity in the
YoY
Euro Zone. However, sharp upside in the prices
$/oz
1160.5
-0.34
1.7
-5.2
-8.5
Rs/10
gms
25800.0
0.58
2.0
-4.1 -13.4
$/oz
1158.9
-0.34
1.2
-6.6
Rs /10
gms
25788.0
-0.03
1.2
-4.3 -15.2
was prevented due to weak market sentiments
in later part of the trade. Strength in the DX also
-9.5
Source: Angel Broking
restricted upside movement in the prices. In the
Indian markets, sharp upside in the prices was
5
Thursday 13, November 2014
Daily
capped due to appreciation in the Indian Rupee.
The benchmark contract of Copper plunged
Market Highlights - Crude Oil (% change)
as on November 12, 2014
Crude Oil
Unit
Last Prev.
day
trade on the back of estimates of more supplies
Brent (Spot)
$/bbl
80.7
-0.6
-3.1
-10.8 -24.1
in the next year. Further, unfavorable economic
Nymex Crude
(Dec’14)
$/bbl
77.2
-1.0
-1.9
-6.7 -17.0
ICE Brent Crude
(Dec’14)
$/bbl
80.4
-1.6
-3.1
-10.7 -24.0
MCX Crude
(Nov ’14)
Rs/bbl 4756.0
-0.4
-1.6
-9.7 -21.2
marginally around 0.2 percent in yesterday’s
data from the US, weak market sentiments
in later part of the trade along with strength
in the DX exerted downside pressure on the
prices. However, sharp downside in the prices
WoW
MoM
YoY
Source: Angel Broking
was prevented due to recovery in the industrial
activity in the Euro Zone. Copper prices closed at
Angel Broking report suggest that crude oil
$6678.80/tonne in yesterday’s trading session.
prices to trade lower a s low demand from Euro
Today’s intra-day session, Angel Broking report
- zone and China coupled with high supplies
suggest that copper prices to trade higher
from the OPEC nations and the United States
today on the back of expectations of favorable
will exert downside pressure. Besides, stronger
economic data from the Chinese economy.
dollar and reluctance from the OPEC to cut
Further, upbeat market sentiments coupled
down its supplies will act as a negative factor for
with weakness in the DX will support an upside
prices. Inventory buildup in the US and hopes
in the prices.
of further rise will also exert downside pressure.
Energy Market
News & Report
Analysis
Crude oil prices declined on both sides of the
atlantic with Brent and WTI falling by 0.6 percent
and 1 percent respectively. The pressure was on
account of technical selling, pressure from a
strong dollar and after Saudi Arabia's oil minister
refused to say if the kingdom will support calls
from some OPEC members to cut crude output.
The American Petroleum Institute said U.S.
crude inventories shrank by 1.5 million barrels
last week. On Thursday, the U.S. government's
Energy
Information
Administration
will
issue official weekly inventory data. In the
week ending November 7, crude stocks are
expected to rise by 800,000 barrels on average
last week. Stocks of distillates, which include
heating oil and diesel fuel, were seen down 1.3
million barrels last week. Gasoline stocks were
expected to have increased 500,000 barrels.
Govt mulls raising import
duty on steel to check cheap
Chinese imports: Tomar
On the plea of domestic steelmakers,
government is soon expected to initiate
measures to counter cheap and galloping
imports from China, the world's largest producer.
"Steel companies have written to me and we
Thursday 13, November 2014
Daily
are discussing the issue which will be resolved
soon. Give us time for a day or two," Steel and
Mines Minister Narendra Singh Tomar said
when asked if the government was mulling to
take measures in view of the rising steel imports
from China.
Steel firms and their representative body,
India Steel Association, recently wrote to the
Steel Ministry seeking its intervention on the
galloping imports from China.
Reaping benefit from a host of advantages
including lower rate of interest, cheaper
raw
material
and
encouragement
from
the government, Chinese steelmakers are
increasingly exporting steel, impacting both
allotment through auction) by February 28...We
large, medium and small steel makers in India.
have defined timelines for each set of activities,"
They are also sending steel right from the
Coal Secretary Anil Swarup said. "I can't give
basic grade to high-quality bypassing Indian
you the exact date of auction because we are
standards and circumventing the existing duties,
debating on a few issues and once we are able
both levied by India and China, and taking
to do that we will be probably able to announce
advantage of their lower cost of production, as
the date as well," he said. Around 74 coal mines
per the industry.
are likely to be put up for sale in the first round
India levies between 2.5 per cent and 10 per
cent on imports of various grade of steel.
of auction.
The Supreme Court had in September had
According to Joint Plant Committee, a unit
quashed allocation of 204 coal blocks alloted
under the ministry, imports from China have
to various companies since 1993 terming it as
surged by a whopping 108 per cent during the
"fatally flawed", and allowed the Centre to take
April-September period of the current fiscal to
over operation of 42 such blocks which are
1.34 million tonnes (MT). During the period, India's
functional.
total imports rose by 27 per cent to 3.86 MT.
Govt to complete coal block
allotment by Feb: Coal Secy
Anil Swarup
The government is planning to complete
coal block allocation through auction by
February next year, a top official said on
Wednesday. "As per our plan, as of now, we
plan to complete the exercise (of coal blocks
Replying to another question, Swarup
said the target of doubling the domestic coal
production from current 490 million tonne
was "eminently doable" and within a month's
time the ministry will come out with a strategy
paper for taking it to one billion tonne annually
by 2019. Swarup also expressed hope that the
critical rail link in Odisha will be operational in
December 2017.
"Railway line in Odisha will be operational
6
Daily
Thursday 13, November 2014
in December 2017 much before 2019 that
state of Goa are not very enthusiastic about
we are talking of. So there is lot of interaction
resuming their recently renewed mines saying
with railways. We are discussing with state
with each tonne of production, they may have
governments to resolve the issues....similary we
to end up shelling out USD one from their own
are looking at various other aspects."
pockets. Low-grade iron ore prices are trading at
Centre mulls lowering iron
ore export duty if prices stay
subdued
USD 50-55 a tonne now.
Posco to invest $20 mn in
Gujarat: Korean ambassador
South Korean steel giant Posco will establish
a coil mill in Gujarat with investment of around
$20 million, the country's Indian envoy said on
Wednesday. "Posco is a big name in steel, they
have decided to start a coil mill, probably steel
coil, in Gujarat. That investment will be about
20 million. I do not know the area where they
will start it. The project is already decided,"
The Steel Ministry on Wednesday said it may
Ambassador Joongyu Lee stated.
think of lowering export duty on iron ore from
Lee, who was here to mark celebration of
the present rate of 30 per cent if the prices of the
Korea day, also said that the state government
key steel-making raw material remain subdued.
had proposed `Exclusive Industrial Zone' for
"We have not given a thought on this but, if
Korean companies. He added that there is
the current situation continues in the coming
already an exclusive industrial zone for Korean
days, we will have to think on this," Steel and
firms in Rajasthan.
Mines Minister Narendra Singh Tomar said.
Earlier in the day, Lee met Chief Minister
Tomar was answering to a question on if the
Anandi Patel. A delegation of about 15
government was mulling over reducing export
industrialists accompanied him. He also praised
duty on outbound iron ore shipments with the
Prime Minister Narendra Modi's `clean India'
nosediving global price of the raw material.
and 'make in India' campaigns.
The international price of the raw material,
which is now ruling at its five-year low at USD
75 per tonne, has led iron ore exports unviable
for the domestic producers.
Tata Steel Q2 net profit up
37% to Rs 1,254 cr
Tata Steel Ltd reported 37 per cent YoY
In a research note, released on Wednesday,
increase in net profit number to Rs 1,254 crore
Citi has predicted an average price of USD 74 a
on Wednesday for the quarter ended September
tonne for iron ore in the first quarter of the next
30, helped by one-time gain of Rs 1,147 crore.
year, USD 60 by September 2015 and further
The outperformance was largely led by sale of
down to USD 50 per tonne.
non-current asset. The steel major reported a
Some miners in low-grade iron ore producing
consolidated net profit of Rs 917 crore in the
corresponding quarter of last fiscal. Ahead of
7
Daily
8
Thursday 13, November 2014
crore as compared to Rs 296 crore outgo in the
corresponding period last fiscal.
Jindal Stainless said the increase was due
to higher utilisation of working capital facilities
and conversion of certain foreign currency short
term borrowings into rupee borrowings on
account of change in regulatory guidelines.
Depreciation charge for the quarter was
lower by Rs 43.59 crore to Rs 133 crore.
the results, shares of Tata Steel closed 2.3 per
cent lower at Rs 468.30. They hit a low of Rs
466.55 and a high of Rs 483 in trade today.
Nalco posts 91% jump in Q2
net profit
National
Aluminium
Company
Limited
Tata Steel reported net sales of Rs 35,503
(Nalco), has posted a 91% jump in net profit
crore for the second quarter of the current fiscal,
to Rs 342 crore in the second quarter ended
down 2 per cent YoY as compared to Rs 36,369
September 30, 2014 against a net profit of
crore reported in the year-ago period.
Rs.179 crore in previous corresponding quarter.
Jindal Stainless narrows net
loss in Q2 to Rs 255 cr
Similarly, the sales turnover surged by about
14 % to Rs.245 crore over the comparative
quarter of FY14.
Jindal Stainless on Wednesday said it
Nalco's net profit and sales turnover for the
narrowed net loss for the July-September
half year ended September 2014 were also higher
quarter to Rs 255 crore on higher income and
at Rs.613 crore and Rs.3607 crore, respectively,
lower depreciation charges.The largest stainless
as against the corresponding figures of Rs.339
steel producer in the country had reported Rs
crore and Rs.3247 crore achieved during the first
412 crore net loss for the same quarter of the
six months of the previous fiscal.
last fiscal.
On the production front, during the first
Total income from operations in the second
half, NALCO achieved a production of 9.64
quarter ended September 30, 2014-15, grew by
lakh tonnesof alumina hydrate, while metal
9 per cent to Rs 3,304 crore as against Rs 3,037
production was at 1.61 lakh tonne.
crore a year ago. "EBITDA for the second quarter
is Rs 214 crore which is 12 per cent lower than
the previous year corresponding period figure
of Rs 245 crore," the company said.
During Q2, stainless steel sales volume
increased by around 1 per cent to 2.64 lakh
tonne from 2.61 lakh tonne a year ago. Net
power generation was of 333 million units,
up 32 per cent. Interest cost for the quarter
increased by around 16 per cent to Rs 343
Daily
Thursday 13, November 2014
NMDC-led consortium may
buy 30% in Russian firm
Acron
State-run NMDC-led consortium is planning
to buy 30 per cent stake in the Russian potash
firm Acron, which may result in an investment
of around Rs 1,000 crore.
Rashtriya Chemicals and Fertilizers (RCF),
National Fertilizers Ltd (NFL), Fertilizers and
Chemicals Travancore Ltd (FACT) and fertiliser
cooperative Kribhco are the four other entities
which are part of this consortium.
Along with purchasing 30 per cent stake,
the consortium is also looking to enter into an
offtake agreement for import of potash from
the Russian firm, a top official of NMDC said.
At present NMDC) is conducting a feasibility
study at a cost of Rs 2 crore on this proposal, the
official added.
The official also said that buying a 30 per cent
stake in Acron would cost something around Rs
1,000 crore.
When contacted a senior official in the
government
confirmed
the
development
and said that final decision would be taken
after the final report of feasibility study, and
added, "if proposal turned out to be feasible an
agreement may be signed during the visit of
Russian President to the country this year."
India imports 100 per cent of its requirement
of potash, which was about 3 million tonne (MT)
in 2013-14.
In 2013-14, potash was imported at average
price of USD 390 per tonne. In the current fiscal
so far the country has imported 2.7 MT of potash
at an average price of about USD 330 per tonne.
Indian Potash Ltd is one of the major importers
of potash while Russia and Ukraine are major
suppliers.
Potash is a decontrolled fertiliser and
government pays fixed subsidy on it. It is mainly
used in the form of Muriate of Potash (MoP)
by farmer as soil nutrient and also used in the
manufacturing of complex NPK fertilisers.
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